SEMIANNUAL REPORT  

 

  
 

 

FRANKLIN TEMPLETON

ETF TRUST

 

September 30, 2023

 

       LOGO

 

LOGO     

 

Franklin FTSE Asia ex Japan ETF

 

Franklin FTSE Italy ETF

Franklin FTSE Australia ETF

 

Franklin FTSE Japan ETF

Franklin FTSE Brazil ETF

 

Franklin FTSE Japan Hedged ETF

Franklin FTSE Canada ETF

 

Franklin FTSE Latin America ETF

Franklin FTSE China ETF

 

Franklin FTSE Mexico ETF

Franklin FTSE Europe ETF

 

Franklin FTSE Saudi Arabia ETF

Franklin FTSE Eurozone ETF

 

Franklin FTSE South Africa ETF

Formerly, Franklin FTSE Europe Hedged ETF

 

 

Franklin FTSE South Korea ETF

Franklin FTSE France ETF

 

Franklin FTSE Switzerland ETF

Franklin FTSE Germany ETF

 

Franklin FTSE Taiwan ETF

Franklin FTSE Hong Kong ETF

 

Franklin FTSE United Kingdom ETF

Franklin FTSE India ETF

 


The Securities and Exchange Commission has adopted new regulations that will result in changes to the design and delivery of annual and semiannual shareholder reports beginning in July 2024.

If you have previously elected to receive shareholder reports electronically, you will continue to do so and need not take any action.

Otherwise, paper copies of the Fund’s shareholder reports will be mailed to you beginning in July 2024. If you would like to receive shareholder reports and other communications from the Fund electronically instead of by mail, you may make that request at any time by contacting your financial intermediary (such as a broker-dealer or bank).


Contents        
Franklin FTSE Asia ex Japan ETF      2  
Franklin FTSE Australia ETF      7  
Franklin FTSE Brazil ETF      12  
Franklin FTSE Canada ETF      17  
Franklin FTSE China ETF      22  
Franklin FTSE Europe ETF      27  
Franklin FTSE Eurozone ETF      32  
Franklin FTSE France ETF      37  
Franklin FTSE Germany ETF      42  
Franklin FTSE Hong Kong ETF      47  
Franklin FTSE India ETF      52  
Franklin FTSE Italy ETF      57  
Franklin FTSE Japan ETF      62  

 

    Visit franklintempleton.com for fund updates and documents, or to find helpful financial planning tools.

    

 

Franklin FTSE Japan Hedged ETF      67  
Franklin FTSE Latin America ETF      72  
Franklin FTSE Mexico ETF      77  
Franklin FTSE Saudi Arabia ETF      82  
Franklin FTSE South Africa ETF      87  
Franklin FTSE South Korea ETF      92  
Franklin FTSE Switzerland ETF      97  
Franklin FTSE Taiwan ETF      102  
Franklin FTSE United Kingdom ETF      107  
Financial Highlights and Schedules of Investments      112  
Financial Statements      274  
Notes to Financial Statements      297  
Shareholder Information      325  

 

         
Not FDIC Insured   |   May Lose Value   |   No Bank Guarantee  

 

           
franklintempleton.com  

Semiannual Report

             1


Franklin FTSE Asia ex Japan ETF

 

This semiannual report for Franklin FTSE Asia ex Japan ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Asia ex Japan RIC Capped Index (the FTSE Asia ex Japan Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Asia ex Japan Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries       
9/30/23       
     % of Total
Net Assets
 

 

 

Banks

     12.7%  

 

 

Semiconductors & Semiconductor Equipment

     9.6%  

 

 

Technology Hardware, Storage & Peripherals

     6.5%  

 

 

Interactive Media & Services

     5.7%  

 

 

Broadline Retail

     4.9%  

 

 

Insurance

     4.2%  

 

 

Oil, Gas & Consumable Fuels

     3.9%  

 

 

Automobiles

     3.4%  

 

 

Hotels, Restaurants & Leisure

     3.2%  

 

 

Electronic Equipment, Instruments & Components

     2.9%  

 

 

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -4.04% based on market price and -3.80% based on net asset value. In comparison, the FTSE Asia ex Japan Capped Index-NR posted a -3.43% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 4.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       

9/30/23

 

      

Company

Sector/Industry, Country

   % of Total
Net Assets
 

 

 

Taiwan Semiconductor Manufacturing Co. Ltd.

     6.4%  

Semiconductors & Semiconductor Equipment, Taiwan

  

 

 

Samsung Electronics Co. Ltd.

     4.6%  
Technology Hardware, Storage & Peripherals, South Korea   

 

 

Tencent Holdings Ltd.

     4.0%  

Interactive Media & Services, China

  

 

 

Alibaba Group Holding Ltd., Class A

     3.1%  

Broadline Retail, China

  

 

 

Reliance Industries Ltd.

     1.6%  

Oil, Gas & Consumable Fuels, India

  

 

 

AIA Group Ltd.

     1.6%  

Insurance, Hong Kong

  

 

 

Meituan, Class B

     1.3%  

Hotels, Restaurants & Leisure, China

  

 

 

HDFC Bank Ltd.

     1.2%  

Banks, India

  

 

 

Infosys Ltd.

     1.0%  

IT Services, India

  

 

 

PDD Holdings, Inc., ADR

     1.0%  

Broadline Retail, China

  

 

 

1. The FTSE Asia ex Japan Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Asia ex Japan Capped Index-NR is based on the FTSE Asia ex Japan Index and is designed to measure the performance of large- and mid-capitalization stocks from developed and emerging Asian countries, excluding Japan. The Chinese constituents in the FTSE Asia ex Japan Capped Index-NR are represented by H-shares, B-shares, A-shares, N-shares, Red Chips, P-Chips and S-Chips.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 113.

 

           
2             

Semiannual Report

  franklintempleton.com


FRANKLIN FTSE ASIA EX JAPAN ETF

 

Top 10 Countries       
9/30/23       
     % of Total
Net Assets
 

 

 

China

     32.8%  

 

 

India

     19.6%  

 

 

Taiwan

     16.3%  

 

 

South Korea

     13.4%  

 

 

Hong Kong

     6.2%  

 

 

Singapore

     3.5%  

 

 

Indonesia

     2.4%  

 

 

Thailand

     2.4%  

 

 

Malaysia

     1.8%  

 

 

Philippines

     0.8%  

 

 

Thank you for your participation in Franklin FTSE Asia ex Japan ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

CFA® is a trademark owned by CFA Institute.

See www.franklintempletondatasources.com for additional data provider information.

    

 

           
franklintempleton.com  

Semiannual Report

             3


FRANKLIN FTSE ASIA EX JAPAN ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

           Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -3.80%       -4.04%       -3.80%       -4.04%  

1-Year

     +11.31%       +12.19%       +11.31%       +12.19%  

3-Year

     -7.30%       -8.20%       -2.49%       -2.81%  

5-Year

     +4.76%       +4.34%       +0.93%       +0.85%  

Since Inception (2/6/18)

     -2.35%       -2.70%       -0.42%       -0.48%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 5 for Performance Summary footnotes.

 

           
4             

Semiannual Report

  franklintempleton.com


FRANKLIN FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

 

Net Investment
Income

$0.178631

Total Annual Operating Expenses5

 

 

0.19%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. The government’s participation in the economy is still high and, therefore, investments in China will be subject to larger regulatory risk levels compared to many other countries. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
franklintempleton.com  

Semiannual Report

             5


FRANKLIN FTSE ASIA EX JAPAN ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

     Actual
(actual return after expenses)
    Hypothetical
(5% annual return before expenses)
       

Beginning

Account

Value 4/1/23

    


Ending

Account
Value 9/30/23

 


 

    


Expenses
Paid During

Period
4/1/23–9/30/23

 
 


1 

   


Ending

Account
Value 9/30/23

 


 

    


Expenses

Paid During

Period
4/1/23–9/30/23

 

 


1 

   
Net Annualized
Expense Ratio
 
 
$1,000.00      $962.00        $0.93       $1,024.05        $0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
6             

Semiannual Report

  franklintempleton.com


Franklin FTSE Australia ETF

    

 

This semiannual report for Franklin FTSE Australia ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Australia RIC Capped Index (the FTSE Australia Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Australia Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries     
9/30/23     
      % of Total
Net Assets

Metals & Mining

   21.9%

Banks

   21.8%

Biotechnology

   6.3%

Oil, Gas & Consumable Fuels

   5.8%

Capital Markets

   4.1%

Consumer Staples Distribution & Retail

   4.0%

Insurance

   3.7%

Broadline Retail

   3.2%

Transportation Infrastructure

   2.7%

Hotels, Restaurants & Leisure

   2.5%

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -4.09% based on market price and -2.93% based on net asset value. In comparison, the FTSE Australia Capped Index-NR posted a -2.91% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 9.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       

9/30/23

 

      

Company

Sector/Industry, Country

   % of Total
Net Assets
 

BHP Group Ltd.

Metals & Mining, Australia

     11.6%  

Commonwealth Bank of Australia

Banks, Australia

     8.8%  

CSL Ltd.

Biotechnology, Australia

     6.3%  

National Australia Bank Ltd.

Banks, Australia

     4.7%  

ANZ Group Holdings Ltd.

Banks, Australia

     4.0%  

Westpac Banking Corp.

Banks, Australia

     3.8%  

Woodside Energy Group Ltd.

Oil, Gas & Consumable Fuels, Australia

     3.6%  

Macquarie Group Ltd.

Capital Markets, Australia

     3.2%  

Wesfarmers Ltd.

Broadline Retail, Australia

     3.1%  

Woolworths Group Ltd.

Consumer Staples Distribution & Retail, Australia

     2.4%  

 

1. The FTSE Australia Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Australia Capped Index-NR is based on the FTSE Australia Index and is designed to measure the performance of Australian large-and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 150.

 

           
franklintempleton.com  

Semiannual Report

             7


FRANKLIN FTSE AUSTRALIA ETF

 

Thank you for your participation in Franklin FTSE Australia ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
8             

Semiannual Report

  franklintempleton.com


FRANKLIN FTSE AUSTRALIA ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -2.93%       -4.09%       -2.93%       -4.09%  

1-Year

     +14.14%       +13.35%       +14.14%       +13.35%  

3-Year

     +26.45%       +24.71%       +8.14%       +7.64%  

5-Year

     +26.14%       +26.06%       +4.75%       +4.74%  

Since Inception (11/2/17)

     +28.60%       +27.55%       +4.35%       +4.20%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 10 for Performance Summary footnotes.

 

           
franklintempleton.com  

Semiannual Report

             9


FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment

Income

$0.478848

Total Annual Operating Expenses5

 

 

  0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

 

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
10             

Semiannual Report

  franklintempleton.com


FRANKLIN FTSE AUSTRALIA ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

      Actual
(actual return after expenses)
    Hypothetical
(5% annual return before expenses)
       
 

Beginning
Account
        Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $970.70       $0.44       $1,024.55       $0.46       0.09

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
franklintempleton.com  

Semiannual Report

             11


Franklin FTSE Brazil ETF

    

 

This semiannual report for Franklin FTSE Brazil ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Brazil RIC Capped Index (the FTSE Brazil Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Brazil Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries     

9/30/23

 

    
      % of Total
Net Assets

Oil, Gas & Consumable Fuels

   19.6%

Banks

   16.2%

Metals & Mining

   15.1%

Electric Utilities

   8.1%

Capital Markets

   5.4%

Ground Transportation

   4.0%

Beverages

   2.8%

Consumer Staples Distribution & Retail

   2.7%

Electrical Equipment

   2.6%

Food Products

   2.4%

Performance Overview

During the six-month period, the Fund posted cumulative total returns of +15.76% based on market price and +16.15% based on net asset value. In comparison, the FTSE Brazil Capped Index-NR posted a +16.39% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 14.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       

9/30/23

 

      

Company

Sector/Industry, Country

   % of Total
Net Assets
 

Petroleo Brasileiro SA, 9.792%, pfd.

Oil, Gas & Consumable Fuels, Brazil

     16.3%  

Vale SA

Metals & Mining, Brazil

     12.5%  

Itau Unibanco Holding SA, 4.671%, pfd.

Banks, Brazil

     6.9%  

Banco Bradesco SA, 5.993%, pfd.

Banks, Brazil

     4.5%  

B3 SA - Brasil Bolsa Balcao

Capital Markets, Brazil

     3.4%  

Ambev SA

Beverages, Brazil

     2.8%  

WEG SA

Electrical Equipment, Brazil

     2.6%  

Localiza Rent a Car SA

Ground Transportation, Brazil

     2.4%  

Centrais Eletricas Brasileiras SA

Electric Utilities, Brazil

     2.4%  

Itausa SA, 6.464%, pfd.

Banks, Brazil

     2.3%  

 

1. The FTSE Brazil Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Brazil Capped Index-NR is based on the FTSE Brazil Index and is designed to measure the performance of Brazilian large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 154.

 

           
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FRANKLIN FTSE BRAZIL ETF

 

Thank you for your participation in Franklin FTSE Brazil ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
franklintempleton.com  

Semiannual Report

             13


FRANKLIN FTSE BRAZIL ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/7/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

           Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4  

6-Month

     +16.15%       +15.76%       +16.15%       +15.76%  

1-Year

     +14.91%       +14.21%       +14.91%       +14.21%  

3-Year

     +41.63%       +40.32%       +12.30%       +11.95%  

5-Year

     +21.43%       +22.85%       +3.96%       +4.20%  

Since Inception (11/3/17)

     +8.53%       +8.44%       +1.40%       +1.38%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 15 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

 

Net Investment
Income

$1.135066

Total Annual Operating Expenses5

 

 

  0.19%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
franklintempleton.com  

Semiannual Report

             15


FRANKLIN FTSE BRAZIL ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

     

Actual

(actual return after expenses)

   

Hypothetical

(5% annual return before expenses)

       
 

Beginning
Account
    Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   

Expenses
Paid During
Period

4/1/23–9/30/23



 

1 

   

Ending
Account
Value 9/30/23
 
 
 
   

Expenses
Paid During
Period

4/1/23–9/30/23



 

1 

   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $1,161.50       $1.03       $1,024.05       $0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE Canada ETF

 

This semiannual report for Franklin FTSE Canada ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Canada RIC Capped Index (the FTSE Canada Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Canada Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries     
9/30/23     
     

% of Total

Net Assets

Banks

   26.5%

Oil, Gas & Consumable Fuels

   19.2%

Ground Transportation

   8.7%

Insurance

   8.4%

Metals & Mining

   7.2%

IT Services

   5.5%

Consumer Staples Distribution & Retail

   4.7%

Capital Markets

   3.8%

Software

   2.6%

Commercial Services & Supplies

   2.3%

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -1.20% based on market price and -0.77% based on net asset value. In comparison, the FTSE Canada Capped Index-NR posted a -0.94% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 19.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       
9/30/23       

Company

Sector/Industry, Country

   % of Total
Net Assets
 

Royal Bank of Canada

Banks, Canada

     8.0%  

Toronto-Dominion Bank

Banks, Canada

     7.2%  

Enbridge, Inc.

Oil, Gas & Consumable Fuels, Canada

     4.6%  

Canadian Natural Resources Ltd.

Oil, Gas & Consumable Fuels, Canada

     4.6%  

Canadian Pacific Kansas City Ltd.

Ground Transportation, Canada

     4.6%  

Canadian National Railway Co.

Ground Transportation, Canada

     4.2%  

Shopify, Inc., Class A

IT Services, Canada

     4.1%  

Bank of Montreal

Banks, Canada

     4.0%  

Bank of Nova Scotia

Banks, Canada

     3.5%  

Brookfield Corp.

Capital Markets, Canada

     3.1%  

 

1. The FTSE Canada Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Canada Capped Index-NR is based on the FTSE Canada Index and is designed to measure the performance of Canadian large-and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 158.

 

           
franklintempleton.com  

Semiannual Report

             17


FRANKLIN FTSE CANADA ETF

 

Thank you for your participation in Franklin FTSE Canada ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

    

 

           
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FRANKLIN FTSE CANADA ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

           Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -0.77%       -1.20%       -0.77%       -1.20%  

1-Year

     +10.69%       +10.41%       +10.69%       +10.41%  

3-Year

     +32.44%       +31.37%       +9.82%       +9.52%  

5-Year

     +37.01%       +36.28%       +6.50%       +6.39%  

Since Inception (11/2/17)

     +39.21%       +38.58%       +5.76%       +5.68%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 20 for Performance Summary footnotes.

 

           
franklintempleton.com  

Semiannual Report

             19


FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

 

Net Investment
Income

$0.302848

Total Annual Operating Expenses5

 

 

0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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FRANKLIN FTSE CANADA ETF

 

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

     

Actual

(actual return after expenses)

   

Hypothetical

(5% annual return before expenses)

       
 

Beginning
Account
        Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $992.30       $0.45       $1,024.55       $0.46       0.09

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Semiannual Report

             21


Franklin FTSE China ETF

    

 

This semiannual report for Franklin FTSE China ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE China RIC Capped Index (the FTSE China Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE China Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries     
9/30/23     
      % of Total
Net Assets

Interactive Media & Services

   15.4%

Broadline Retail

   14.2%

Banks

   9.9%

Hotels, Restaurants & Leisure

   6.9%

Automobiles

   4.6%

Insurance

   4.0%

Beverages

   3.3%

Oil, Gas & Consumable Fuels

   3.1%

Real Estate Management & Development

   2.9%

Entertainment

   2.7%

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -12.16% based on market price and -11.92% based on net asset value. In comparison, the FTSE China Capped Index-NR posted a -11.82% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 24.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       

9/30/23

 

      

Company

Sector/Industry, Country

   % of Total
Net Assets
 

Tencent Holdings Ltd.

Interactive Media & Services, China

     12.1%  

Alibaba Group Holding Ltd., Class A

Broadline Retail, China

     9.2%  

Meituan, Class B

Hotels, Restaurants & Leisure, China

     3.9%  

PDD Holdings, Inc., ADR

Broadline Retail, China

     2.9%  

China Construction Bank Corp., Class H

Banks, China

     2.6%  

Baidu, Inc., Class A

Interactive Media & Services, China

     1.9%  

Industrial & Commercial Bank of China Ltd., Class H

Banks, China

     1.9%  

NetEase, Inc.

Entertainment, China

     1.8%  

Ping An Insurance Group Co. of China Ltd., Class H

Insurance, China

     1.8%  

JD.com, Inc., Class A

Broadline Retail, China

     1.7%  

1. The FTSE China Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE China Capped Index-NR is based on the FTSE China Index and is designed to measure the performance of Chinese large- and mid-capitalization stocks, as represented by H-shares, B-shares, A-shares, N-shares, Red Chips, P-Chips and S-Chips.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 161.

 

           
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FRANKLIN FTSE CHINA ETF

 

Thank you for your participation in Franklin FTSE China ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

    

 

           
franklintempleton.com  

Semiannual Report

             23


FRANKLIN FTSE CHINA ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

           Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -11.92%       -12.16%       -11.92%       -12.16%  

1-Year

     +4.40%       +4.12%       +4.40%       +4.12%  

3-Year

     -36.84%       -37.74%       -14.20%       -14.61%  

5-Year

     -18.58%       -18.66%       -4.03%       -4.05%  

Since Inception (11/2/17)

     -24.03%       -24.40%       -4.54%       -4.62%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 25 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

 

Net Investment
Income

$0.187311

Total Annual Operating Expenses5

 

 

  0.19%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. The government’s participation in the economy is still high and, therefore, investments in China will be subject to larger regulatory risk levels compared to many other countries. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
franklintempleton.com  

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             25


FRANKLIN FTSE CHINA ETF

 

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

     

Actual

(actual return after expenses)

   

Hypothetical

(5% annual return before expenses)

       
 

Beginning

Account

        Value 4/1/23

 

 

 

   

Ending

Account

Value 9/30/23

 

 

 

   

Expenses

Paid During

Period

4/1/23–9/30/23

 

 

 

1 

   

Ending

Account

Value 9/30/23

 

 

 

   

Expenses

Paid During

Period

4/1/23–9/30/23

 

 

 

1 

   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $880.80       $0.89       $1,024.05       $0.96       0.19 %   

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE Europe ETF

 

This semiannual report for Franklin FTSE Europe ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe RIC Capped Index (the FTSE Developed Europe Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Developed Europe Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries       
9/30/23       
      % of Total
Net Assets
 

Pharmaceuticals

     12.0%  

Banks

     8.5%  

Oil, Gas & Consumable Fuels

     6.1%  

Insurance

     5.4%  

Textiles, Apparel & Luxury Goods

     4.3%  

Food Products

     4.2%  

Semiconductors & Semiconductor Equipment

     3.4%  

Chemicals

     3.1%  

Machinery

     3.0%  

Capital Markets

     2.8%  

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -2.28% based on market price and -2.01% based on net asset value. In comparison, the FTSE Developed Europe Capped Index-NR posted a -2.18% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 29.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings     

9/30/23

 

    

Company

Sector/Industry, Country

   % of Total
Net Assets

Nestle SA

Food Products, Switzerland

   3.1%

Novo Nordisk AS, Class B

Pharmaceuticals, Denmark

   2.9%

ASML Holding NV

Semiconductors & Semiconductor Equipment, Netherlands

   2.4%

Shell PLC

Oil, Gas & Consumable Fuels, Netherlands

   2.1%

Novartis AG

Pharmaceuticals, Switzerland

   2.1%

AstraZeneca PLC

Pharmaceuticals, United Kingdom

   2.0%

Roche Holding AG

Pharmaceuticals, Switzerland

   2.0%

LVMH Moet Hennessy Louis Vuitton SE

Textiles, Apparel & Luxury Goods, France

   1.9%

HSBC Holdings PLC Banks,

United Kingdom

   1.6%

TotalEnergies SE

Oil, Gas & Consumable Fuels, France

   1.5%

 

1. The FTSE Developed Europe Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Developed Europe Capped Index-NR is based on the FTSE Developed Europe Index and is designed to measure the performance of large- and mid-capitalization stocks from developed European countries.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 185.

 

           
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FRANKLIN FTSE EUROPE ETF

 

Top 10 Countries       
9/30/23       
      % of Total
Net Assets
 

United Kingdom

     19.5%  

France

     17.1%  

Switzerland

     14.9%  

Germany

     12.5%  

Netherlands

     8.8%  

Denmark

     4.7%  

Sweden

     4.6%  

Spain

     3.9%  

Italy

     3.7%  

Finland

     1.7%  

Thank you for your participation in Franklin FTSE Europe ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

    

 

           
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FRANKLIN FTSE EUROPE ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -2.01%       -2.28%       -2.01%       -2.28%  

1-Year

     +29.89%       +30.87%       +29.89%       +30.87%  

3-Year

     +23.51%       +23.37%       +7.29%       +7.25%  

5-Year

     +22.56%       +22.49%       +4.15%       +4.14%  

Since Inception (11/2/17)

     +21.82%       +21.54%       +3.40%       +3.36%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 30 for Performance Summary footnotes.

 

           
franklintempleton.com  

Semiannual Report

             29


FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

 

Net Investment
Income

$0.538169

Total Annual Operating Expenses5

 

 

0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. These and other risks are discussed in the Fund’s prospectus.

To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund’s ability to price, buy, sell, receive or deliver such investments may be impaired. The Fund could determine at any time that certain of the most affected securities have zero value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund’s portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund’s performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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FRANKLIN FTSE EUROPE ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

    

Actual

(actual return after expenses)

   

Hypothetical

(5% annual return before expenses)

       
Beginning
Account
Value 4/1/23
    

Ending
Account
Value 9/30/23


 
    


Expenses
Paid During
Period
4/1/23–9/30/23

 

1,2  
   

Ending
Account
Value 9/30/23


 
    


Expenses
Paid During
Period
4/1/23–9/30/23



1,2  
   
Net Annualized
Expense Ratio
 
2  
$1,000.00      $979.90        $1.09       $1,023.90        $1.11       0.22 %   

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

2. Included in the expense ratio are “Other fees” described in Note 1 under Income and Deferred Taxes which are not annualized. Without these expenses, the expense ratio would have been 0.09% and the actual and hypothetical expenses paid during the period would have been $0.45 and $0.46, respectively.

 

           
franklintempleton.com  

Semiannual Report

             31


Franklin FTSE Eurozone ETF

Formerly, Franklin FTSE Europe Hedged ETF

 

This semiannual report for Franklin FTSE Eurozone ETF covers the period ended September 30, 2023. Effective August 1, 2023, the Franklin FTSE Europe Hedged ETF changed its name to Franklin FTSE Eurozone ETF. The Fund also changed its ticker symbol; underlying index, including the designation of the primary benchmark index; investment goal, strategies and policies; and other related changes.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Eurozone Index-NR (“the Underlying Index”).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index is a free float-adjusted market capitalization weighted index maintained and calculated by FTSE Russell (“Index Provider”). The Underlying Index is designed to measure the performance of large- and mid-capitalization stocks from developed Eurozone countries. The Eurozone is a geographic and economic region that consists of all the European Union countries that have fully incorporated the euro as their national currency. The Underlying Index currently consists of securities from the following ten developed market countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal and Spain.

Top 10 Sectors/Industries       
9/30/23       
     % of Total
Net Assets
 

 

 

Banks

     9.8%  

 

 

Semiconductors & Semiconductor Equipment

     6.9%  

 

 

Textiles, Apparel & Luxury Goods

     6.8%  

 

 

Insurance

     6.3%  

 

 

Oil, Gas & Consumable Fuels

     4.8%  

 

 

Automobiles

     4.3%  

 

 

Pharmaceuticals

     4.3%  

 

 

Chemicals

     4.3%  

 

 

Aerospace & Defense

     3.6%  

 

 

Software

     3.5%  

 

 

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -5.86% based on market price and -5.85% based on net asset value. On August 1, 2023, the Fund’s underlying index was changed from the FTSE Developed Europe RIC Capped Hedged to USD Index (FTSE Developed Europe Capped Hedged Index)2 to the Underlying Index. For the six-month period, the Underlying Index posted a -9.28% total return, while the Linked FTSE Developed Eurozone Index-NR, which measures the performance of the Fund’s previous underlying index through July 31, 2023 followed by the performance of the Underlying Index thereafter, posted a -5.82% total return.3 The FTSE Developed Europe Capped Hedged Index posted a +1.05% total return for the same period.3 The Underlying Index replaced the FTSE Developed Europe Capped Hedged Index as the Fund’s primary benchmark to more accurately reflect the Fund’s new investment strategy. You can find more of the Fund’s performance data in the Performance Summary beginning on page 34.

 

1. The Underlying Index is one of a range of indices designed to help investors benchmark their Eurozone investments and is maintained and calculated by Index Provider. The index comprises large- and mid-capitalization stocks from developed Eurozone markets. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world’s investable market capitalization.

2. The FTSE Developed Europe Capped Hedged Index is a free float-adjusted market capitalization-weighted index maintained and calculated by Index Provider with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Developed Europe Capped Hedged Index is based on the FTSE Developed Europe Hedged to USD Index and is designed to measure the performance of large- and mid-capitalization stocks from developed European countries. The FTSE Developed Europe Capped Hedged Index incorporates a hedge against non-U.S. currency fluctuations by reflecting the impact of rolling monthly currency forward contracts on the currencies represented in the FTSE Developed Europe Capped Hedged Index.

3. Source: FactSet.

The indexes are unmanaged and include reinvestment of any income or distributions (after the deduction of certain withholding taxes). They do not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 198.

 

           
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FRANKLIN FTSE EUROZONE ETF

 

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings     
9/30/23     

Company

Sector/Industry, Country

   % of Total
Net Assets

ASML Holding NV

Semiconductors & Semiconductor Equipment, Netherlands

   4.8%

LVMH Moet Hennessy Louis Vuitton SE

Textiles, Apparel & Luxury Goods, France

   3.8%

TotalEnergies SE

Oil, Gas & Consumable Fuels, France

   3.0%

SAP SE

Software, Germany

   2.9%

Sanofi

Pharmaceuticals, France

   2.4%

Siemens AG

Industrial Conglomerates, Germany

   2.2%

L’Oreal SA

Personal Care Products, France

   2.0%

Allianz SE

Insurance, Germany

   1.9%

Schneider Electric SE

Electrical Equipment, France

   1.8%

Air Liquide SA

Chemicals, France

   1.8%
Top 10 Countries       
9/30/23       
     % of Total
Net Assets
 

 

 

France

     34.8%  

 

 

Germany

     25.3%  

 

 

Netherlands

     13.5%  

 

 

Spain

     8.0%  

 

 

Italy

     7.4%  

 

 

Finland

     3.4%  

 

 

Belgium

     2.5%  

 

 

Ireland

     0.9%  

 

 

Switzerland

     0.9%  

 

 

United States

     0.9%  

 

 

Thank you for your participation in Franklin FTSE Eurozone ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
franklintempleton.com  

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             33


FRANKLIN FTSE EUROZONE ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
  

 

 

   

 

 

 
      
Based on
NAV

3  
   
Based on
market price

4 
   
Based on
NAV

3  
   
Based on
market price

4  

6-Month

     -5.85     -5.86     -5.85     -5.86

 

 

1-Year

     +14.83     +15.19     +14.83     +15.19

 

 

3-Year

     +31.29     +30.53     +9.50     +9.29

 

 

5-Year

     +35.23     +35.29     +6.22     +6.23

 

 

Since Inception (11/2/17)

     +37.43     +37.10     +5.53     +5.49

 

 

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

 

See page 35 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE EUROZONE ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment Income

$0.351178

Total Annual Operating Expenses5

 

  0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. There is no guarantee that passive strategies will achieve a high degree of correlation to the Underlying Index and therefore achieve its investment goal. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. These and other risks are discussed in the Fund’s prospectus.

To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund’s ability to price, buy, sell, receive or deliver such investments may be impaired. The Fund could determine at any time that certain of the most affected securities have zero value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund’s portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund’s performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
franklintempleton.com  

Semiannual Report

             35


FRANKLIN FTSE EUROZONE ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

     Actual
(actual return after expenses)
    Hypothetical
(5% annual return before expenses)
       
Beginning
Account
Value 4/1/23
    

Ending
Account
Value 9/30/23


 
    


Expenses
Paid During
Period
4/1/23–9/30/23



1 
   

Ending
Account
Value 9/30/23


 
    


Expenses
Paid During
Period
4/1/23–9/30/23



1 
   
Net Annualized
Expense Ratio

 
$1,000.00    $ 941.50      $ 0.44     $ 1,024.55      $ 0.46       0.09

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE France ETF

 

This semiannual report for Franklin FTSE France ETF covers the period ended September 30, 2023. As previously communicated, on September 7, 2023, the Board of Trustees of Franklin Templeton ETF Trust, on behalf of the Fund, approved a proposal to liquidate and dissolve the Fund. The liquidation occurred on November 16, 2023. After the close of business on October 19, 2023, the Fund no longer accepted creation orders. Trading in the Fund on NYSE Arca, Inc. (NYSE Arca) was halted prior to market open on November 10, 2023. Proceeds of the liquidation were sent to shareholders on or about November 16, 2023. Refer to the Fund’s prospectus supplement dated September 11, 2023, for more information.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE France RIC Capped Index (the FTSE France Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE France Capped Index and in depositary receipts representing such securities.

Top 10 Sectors/Industries       
9/30/23       
     % of Total
Net Assets
 

 

 

Textiles, Apparel & Luxury Goods

     16.0%  

 

 

Aerospace & Defense

     8.5%  

 

 

Oil, Gas & Consumable Fuels

     8.4%  

 

 

Pharmaceuticals

     6.9%  

 

 

Electrical Equipment

     6.4%  

 

 

Banks

     5.6%  

 

 

Personal Care Products

     5.5%  

 

 

Chemicals

     5.2%  

 

 

Construction & Engineering

     3.9%  

 

 

Insurance

     3.3%  

 

 

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -3.05% based on market price and -3.42% based on net asset value. In comparison, the FTSE France Capped Index posted a -3.68% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 39.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

1. The FTSE France Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE France Capped Index is based on the FTSE France Index and is designed to mea-sure the performance of French large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 206.

 

           
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FRANKLIN FTSE FRANCE ETF

 

Top 10 Holdings       
9/30/23       
Company
Sector/Industry, Country
   % of Total
Net Assets
 
LVMH Moet Hennessy Louis Vuitton SE
Textiles, Apparel & Luxury Goods, France
     10.6%  
TotalEnergies SE
Oil, Gas & Consumable Fuels, France
     8.4%  
Sanofi
Pharmaceuticals, France
     6.6%  
L’Oreal SA
Personal Care Products, France
     5.5%  
Schneider Electric SE
Electrical Equipment, France
     5.0%  
Air Liquide SA
Chemicals, France
     4.9%  
Airbus SE
Aerospace & Defense, France
     4.5%  
BNP Paribas SA
Banks, France
     3.9%  
Hermes International SCA
Textiles, Apparel & Luxury Goods, France
     3.5%  
Vinci SA
Construction & Engineering, France
     3.1%  

Thank you for your participation in Franklin FTSE France ETF. It has been a pleasure serving your investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
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FRANKLIN FTSE FRANCE ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -3.42%       -3.05%       -3.42%       -3.05%  

1-Year

     +36.64%       +38.12%       +36.64%       +38.12%  

3-Year

     +37.74%       +36.88%       +11.26%       +11.03%  

5-Year

     +29.03%       +28.45%       +5.23%       +5.13%  

Since Inception (11/2/17)

     +33.19%       +32.52%       +4.97%       +4.88%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 40 for Performance Summary footnotes.

 

           
franklintempleton.com  

Semiannual Report

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FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment
Income

$0.474680

Total Annual Operating Expenses5

 

  0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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FRANKLIN FTSE FRANCE ETF

 

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

      Actual
(actual return after expenses)
   

Hypothetical

(5% annual return before expenses)

       
 

Beginning

Account

Value 4/1/23

 

 

 

   

Ending

Account

Value 9/30/23

 

 

 

   

Expenses

Paid During

Period

4/1/23–9/30/23

 

 

 

1,2 

   

Ending

Account

Value 9/30/23

 

 

 

   

Expenses

Paid During

Period

4/1/23–9/30/23

 

 

 

1,2 

   
Net Annualized
Expense Ratio
 
2 
  $1,000.00       $965.80       $1.23       $1,023.75       $1.26       0.25

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

2. Included in the expense ratio are “Other fees” described in Note 1 under Income and Deferred Taxes which are not annualized. Without these expenses, the expense ratio would have been 0.09% and the actual and hypothetical expenses paid during the period would have been $0.44 and $0.46, respectively.

 

           
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Semiannual Report

             41


Franklin FTSE Germany ETF

 

This semiannual report for Franklin FTSE Germany ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Germany RIC Capped Index (the FTSE Germany Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Germany Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries       
9/30/23       
     % of Total
Net Assets
 

 

 

Insurance

     13.3%  

 

 

Software

     11.7%  

 

 

Automobiles

     10.0%  

 

 

Industrial Conglomerates

     8.6%  

 

 

Chemicals

     5.9%  

 

 

Diversified Telecommunication Services

     5.8%  

 

 

Pharmaceuticals

     5.5%  

 

 

Capital Markets

     4.4%  

 

 

Semiconductors & Semiconductor Equipment

     3.5%  

 

 

Air Freight & Logistics

     3.1%  

 

 

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -4.71% based on market price and -4.42% based on net asset value. In comparison, the FTSE Germany Capped Index-NR posted a -4.77% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 44.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings     
9/30/23     
Company
Sector/Industry, Country
   % of Total
Net Assets

SAP SE

Software, Germany

   11.4%

Siemens AG

Industrial Conglomerates, Germany

   8.6%

Allianz SE

Insurance, Germany

   7.6%

Deutsche Telekom AG

Diversified Telecommunication Services, Germany

   5.7%

Mercedes-Benz Group AG

Automobiles, Germany

   4.8%

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen

Insurance, Germany

   4.3%

Bayer AG

Pharmaceuticals, Germany

   3.8%

Infineon Technologies AG

Semiconductors & Semiconductor Equipment, Germany

   3.5%

BASF SE

Chemicals, Germany

   3.3%

Deutsche Post AG

Air Freight & Logistics, Germany

   3.1%

 

1. The FTSE Germany Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Germany Capped Index-NR is based on the FTSE Germany Index and is designed to measure the performance of German large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 209.

 

           
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FRANKLIN FTSE GERMANY ETF

 

Thank you for your participation in Franklin FTSE Germany ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
franklintempleton.com  

Semiannual Report

             43


FRANKLIN FTSE GERMANY ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

           Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -4.42%       -4.71%       -4.42%       -4.71%  

1-Year

     +36.93%       +37.88%       +36.93%       +37.88%  

3-Year

     +0.37%       -0.18%       +0.12%       -0.06%  

5-Year

     +3.92%       +3.82%       +0.77%       +0.75%  

Since Inception (11/2/17)

     -4.75%       -5.10%       -0.82%       -0.88%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 45 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment
Income

$0.692375

Total Annual Operating Expenses5

 

  0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
franklintempleton.com  

Semiannual Report

             45


FRANKLIN FTSE GERMANY ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

      Actual
(actual return after expenses)
    Hypothetical
(5% annual return before expenses)
       
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23



1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $955.80       $0.44       $1,024.55       $0.46       0.09

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE Hong Kong ETF

 

This semiannual report for Franklin FTSE Hong Kong ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Hong Kong RIC Capped Index (the FTSE Hong Kong Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Hong Kong Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries       
9/30/23       
     % of Total
Net Assets
 

 

 

Insurance

     19.3%  

 

 

Real Estate Management & Development

     16.9%  

 

 

Capital Markets

     12.8%  

 

 

Hotels, Restaurants & Leisure

     7.1%  

 

 

Industrial Conglomerates

     6.7%  

 

 

Electric Utilities

     5.7%  

 

 

Banks

     5.5%  

 

 

Machinery

     3.4%  

 

 

Retail REITs

     3.3%  

 

 

Textiles, Apparel & Luxury Goods

     2.2%  

 

 

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -14.02% based on market price and -13.47% based on net asset value. In comparison, the FTSE Hong Kong Capped Index-NR posted a -13.73% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 49.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       
9/30/23       
Company
Sector/Industry, Country
   % of Total
Net Assets
 
AIA Group Ltd.
Insurance, Hong Kong
     19.3%  
Hong Kong Exchanges & Clearing Ltd.
Capital Markets, Hong Kong
     12.7%  
Sun Hung Kai Properties Ltd.
Real Estate Management & Development, Hong Kong
     4.1%  
CK Hutchison Holdings Ltd., Class A
Industrial Conglomerates, United Kingdom
     3.8%  
Galaxy Entertainment Group Ltd.
Hotels, Restaurants & Leisure, Macau
     3.5%  
Techtronic Industries Co. Ltd.
Machinery, Hong Kong
     3.4%  
Link REIT
Retail REITs, Hong Kong
     3.4%  
CLP Holdings Ltd.
Electric Utilities, Hong Kong
     3.2%  
CK Asset Holdings Ltd.
Real Estate Management & Development, Hong Kong
     2.7%  
BOC Hong Kong Holdings Ltd.
Banks, China
     2.6%  

 

1. The FTSE Hong Kong Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Hong Kong Capped Index-NR is based on the FTSE Hong Kong Index and is designed to measure the performance of Hong Kong large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 212.

 

           
franklintempleton.com  

Semiannual Report

             47


FRANKLIN FTSE HONG KONG ETF

 

Thank you for your participation in Franklin FTSE Hong Kong ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
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FRANKLIN FTSE HONG KONG ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -13.47%       -14.02%       -13.47%       -14.02%  

1-Year

     +0.31%       -1.34%       +0.31%       -1.34%  

3-Year

     -11.76%       -12.92%       -4.09%       -4.51%  

5-Year

     -15.16%       -15.74%       -3.23%       -3.37%  

Since Inception (11/2/17)

     -14.84%       -15.26%       -2.68%       -2.76%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 50 for Performance Summary footnotes.

 

           
franklintempleton.com  

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FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment Income

$0.359966

Total Annual Operating Expenses5

 

  0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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FRANKLIN FTSE HONG KONG ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

      Actual
(actual return after expenses)
    Hypothetical
(5% annual return before expenses)
       
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23



1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $865.30       $0.42       $1,024.55       $0.46       0.09

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Semiannual Report

             51


Franklin FTSE India ETF

 

This semiannual report for Franklin FTSE India ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE India RIC Capped Index (the FTSE India Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE India Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries       
9/30/23       
     % of Total
Net Assets
 

 

 

Banks

     13.3%  

 

 

IT Services

     12.6%  

 

 

Oil, Gas & Consumable Fuels

     10.5%  

 

 

Automobiles

     5.8%  

 

 

Chemicals

     4.1%  

 

 

Pharmaceuticals

     4.0%  

 

 

Metals & Mining

     3.7%  

 

 

Consumer Finance

     3.5%  

 

 

Personal Care Products

     3.3%  

 

 

Financial Services

     3.2%  

 

 

Performance Overview

During the six-month period, the Fund posted cumulative total returns of +14.25% based on market price and +15.42% based on net asset value. In comparison, the FTSE India Capped Index-NR posted a +18.53% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 54.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       
9/30/23       
Company
Sector/Industry, Country
   % of Total
Net Assets
 
Reliance Industries Ltd.
Oil, Gas & Consumable Fuels, India
     7.9%  
HDFC Bank Ltd.
Banks, India
     5.9%  
Infosys Ltd.
IT Services, India
     5.1%  
Tata Consultancy Services Ltd.
IT Services, India
     3.6%  
Axis Bank Ltd.
Banks, India
     2.4%  
Bharti Airtel Ltd.
Wireless Telecommunication Services, India
     2.3%  
Hindustan Unilever Ltd.
Personal Care Products, India
     2.2%  
Bajaj Finance Ltd.
Consumer Finance, India
     1.9%  
Larsen & Toubro Ltd.
Construction & Engineering, India
     1.9%  
ICICI Bank Ltd.
Banks, India
     1.5%  

 

1. The FTSE India Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE India Capped Index-NR is based on the FTSE India Index and is designed to measure the performance of Indian large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 216.

 

           
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FRANKLIN FTSE INDIA ETF

 

Thank you for your participation in Franklin FTSE India ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
franklintempleton.com  

Semiannual Report

             53


FRANKLIN FTSE INDIA ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     +15.42%       +14.25%       +15.42%       +14.25%  

1-Year

     +10.89%       +11.54%       +10.89%       +11.54%  

3-Year

     +48.49%       +46.76%       +14.08%       +13.64%  

5-Year

     +54.73%       +54.28%       +9.12%       +9.06%  

Since Inception (2/6/18)

     +41.58%       +41.30%       +6.35%       +6.31%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 55 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE INDIA ETF

PERFORMANCE SUMMARY

 

Total Annual Operating Expenses5

 

  0.19%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
franklintempleton.com  

Semiannual Report

             55


FRANKLIN FTSE INDIA ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

      Actual
(actual return after expenses)
    Hypothetical
(5% annual return before expenses)
       
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23



1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $1,154.20       $1.02       $1,024.05       $0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE Italy ETF

 

This semiannual report for Franklin FTSE Italy ETF covers the period ended September 30, 2023. As previously communicated, on September 7, 2023, the Board of Trustees of Franklin Templeton ETF Trust, on behalf of the Fund, approved a proposal to liquidate and dissolve the Fund. The liquidation occurred on November 16, 2023. After the close of business on October 19, 2023, the Fund no longer accepted creation orders. Trading in the Fund on NYSE Arca, Inc. (NYSE Arca) was be halted prior to market open on November 10, 2023. Proceeds of the liquidation were sent to shareholders on or about November 16, 2023. Refer to the Fund’s prospectus supplement dated September 11, 2023, for more information.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Italy RIC Capped Index (the FTSE Italy Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Italy Capped Index and in depositary receipts representing such securities.

Top 10 Sectors/Industries       
9/30/23       
     % of Total
Net Assets
 

 

 

Banks

     26.5%  

 

 

Automobiles

     18.2%  

 

 

Electric Utilities

     14.0%  

 

 

Insurance

     5.9%  

 

 

Oil, Gas & Consumable Fuels

     4.6%  

 

 

Machinery

     3.9%  

 

 

Gas Utilities

     3.5%  

 

 

Diversified Telecommunication Services

     2.9%  

 

 

Electrical Equipment

     2.9%  

 

 

Textiles, Apparel & Luxury Goods

     2.9%  

 

 

Performance Overview

During the six-month period, the Fund posted cumulative total returns of +4.65% based on market price and +5.06% based on net asset value. In comparison, the FTSE Italy Capped Index posted a +4.82% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 59.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

1. The FTSE Italy Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Italy Capped Index is based on the FTSE Italy Index and is designed to measure the performance of Italian large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 222.

 

           
franklintempleton.com  

Semiannual Report

             57


FRANKLIN FTSE ITALY ETF

 

Top 10 Holdings       
9/30/23       
Company
Sector/Industry, Country
   % of Total
Net Assets
 
Enel SpA
Electric Utilities, Italy
     11.3%  
UniCredit SpA
Banks, Italy
     10.0%  
Stellantis NV
Automobiles, United States
     9.9%  
Intesa Sanpaolo SpA
Banks, Italy
     9.5%  
Ferrari NV
Automobiles, Italy
     8.3%  
Eni SpA
Oil, Gas & Consumable Fuels, Italy
     4.6%  
Assicurazioni Generali SpA
Insurance, Italy
     4.1%  
Prysmian SpA
Electrical Equipment, Italy
     2.9%  
Moncler SpA
Textiles, Apparel & Luxury Goods, Italy
     2.9%  
CNH Industrial NV
Machinery, United Kingdom
     2.8%  

Thank you for your participation in Franklin FTSE Italy ETF. It has been a pleasure serving your investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
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FRANKLIN FTSE ITALY ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     +5.06%       +4.65%       +5.06%       +4.65%  

1-Year

     +51.49%       +52.50%       +51.49%       +52.50%  

3-Year

     +41.20%       +40.69%       +12.19%       +12.05%  

5-Year

     +34.65%       +34.63%       +6.13%       +6.13%  

Since Inception (11/2/17)

     +24.81%       +24.53%       +3.82%       +3.78%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 60 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment Income

$0.762932

Total Annual Operating Expenses5

 

  0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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FRANKLIN FTSE ITALY ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

     

Actual

(actual return after expenses)

   

Hypothetical

(5% annual return before expenses)

       
 

Beginning

Account

        Value 4/1/23

 

 

 

   

Ending

Account

Value 9/30/23

 

 

 

   

Expenses

Paid During

Period

4/1/23–9/30/23

 

 

 

1 

   

Ending

Account

Value 9/30/23

 

 

 

   

Expenses

Paid During

Period

4/1/23–9/30/23

 

 

 

1 

   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $1,050.60       $0.46       $1,024.55       $0.46       0.09 %      

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE Japan ETF

 

This semiannual report for Franklin FTSE Japan ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan RIC Capped Index (the FTSE Japan Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries     

9/30/23

 

    
      % of Total
Net Assets

Automobiles

   8.4%

Banks

   7.1%

Trading Companies & Distributors

   5.7%

Pharmaceuticals

   5.4%

Machinery

   4.9%

Electronic Equipment, Instruments & Components

   4.7%

Household Durables

   4.1%

Chemicals

   4.0%

Semiconductors & Semiconductor Equipment

   3.9%

Wireless Telecommunication Services

   3.0%

Performance Overview

During the six-month period, the Fund posted cumulative total returns of +3.66% based on market price and +4.67% based on net asset value. In comparison, the FTSE Japan Capped Index-NR posted a +4.58% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 64.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings

9/30/23

 

Company

Sector/Industry, Country

   % of Total
Net Assets

Toyota Motor Corp.

Automobiles, Japan

   5.4%

Sony Group Corp.

Household Durables, Japan

   2.6%

Mitsubishi UFJ Financial Group, Inc.

Banks, Japan

   2.5%

Keyence Corp.

Electronic Equipment, Instruments & Components, Japan

   1.8%

Sumitomo Mitsui Financial Group, Inc.

Banks, Japan

   1.6%

Tokyo Electron Ltd.

Semiconductors & Semiconductor Equipment, Japan

   1.5%

Shin-Etsu Chemical Co. Ltd.

Chemicals, Japan

   1.4%

Hitachi Ltd.

Industrial Conglomerates, Japan

   1.4%

Honda Motor Co. Ltd.

Automobiles, Japan

   1.4%

Mitsubishi Corp.

Trading Companies & Distributors, Japan

   1.4%

 

1. The FTSE Japan Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Japan Capped Index-NR is based on the FTSE Japan Index and is designed to measure the performance of Japanese large-and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 224.

 

           
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FRANKLIN FTSE JAPAN ETF

 

Thank you for your participation in Franklin FTSE Japan ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
franklintempleton.com  

Semiannual Report

             63


FRANKLIN FTSE JAPAN ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

           Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4  
   
Based on
NAV
 
3  
   
Based on
market price
 
4  

6-Month

     +4.67%       +3.66%       +4.67%       +3.66%  

1-Year

     +25.29%       +24.65%       +25.29%       +24.65%  

3-Year

     +8.58%       +7.75%       +2.78%       +2.52%  

5-Year

     +10.10%       +9.91%       +1.94%       +1.91%  

Since Inception (11/2/17)

     +14.30%       +14.11%       +2.29%       +2.26%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 65 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE JAPAN ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)
Net Investment      
Income    

$0.360950

 

 

Total Annual Operating Expenses5
    

  0.09%

  

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
franklintempleton.com  

Semiannual Report

             65


FRANKLIN FTSE JAPAN ETF

 

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

     

Actual

(actual return after expenses)

   

Hypothetical

(5% annual return before expenses)

       
 

Beginning

Account

Value 4/1/23

 

 

 

   

Ending

Account

Value 9/30/23

 

 

 

   

Expenses

Paid During

Period

4/1/23–9/30/23

 

 

 

1  

   

Ending

Account

Value 9/30/23

 

 

 

   

Expenses

Paid During

Period

4/1/23–9/30/23

 

 

 

1  

   

Net Annualized

Expense Ratio

 

 

  $1,000.00     $ 1,046.70     $ 0.46     $ 1,024.55     $ 0.46       0.09

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE Japan Hedged ETF

 

This semiannual report for Franklin FTSE Japan Hedged ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan RIC Capped Hedged to USD Index (the FTSE Japan Capped Hedged Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Hedged Index-NR and in depositary receipts representing such securities, including indirectly through Franklin FTSE Japan ETF (Underlying Fund).

 

Top 10 Sectors/Industries     
9/30/23     
      % of Total
Net Assets

Automobiles

   8.3%

Banks

   7.1%

Trading Companies & Distributors

   5.6%

Pharmaceuticals

   5.4%

Machinery

   5.0%

Electronic Equipment, Instruments & Components

   4.7%

Household Durables

   4.1%

Chemicals

   4.0%

Semiconductors & Semiconductor Equipment

   3.9%

Wireless Telecommunication Services

   3.0%

Performance Overview

During the six-month period, the Fund posted cumulative total returns of +19.68% based on market price and +20.21% based on net asset value. In comparison, the FTSE Japan Capped Hedged Index-NR posted a +20.21% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 69.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings     
9/30/23     

Company

Sector/Industry, Country

   % of Total
Net Assets

Toyota Motor Corp.

Automobiles, Japan

   5.4%

Sony Group Corp.

Household Durables, Japan

   2.5%

Mitsubishi UFJ Financial Group, Inc.

Banks, Japan

   2.5%

Keyence Corp.

Electronic Equipment, Instruments & Components, Japan

   1.8%

Sumitomo Mitsui Financial Group, Inc.

Banks, Japan

   1.6%

Tokyo Electron Ltd.

Semiconductors & Semiconductor Equipment, Japan

   1.5%

Shin-Etsu Chemical Co. Ltd.

Chemicals, Japan

   1.4%

Hitachi Ltd.

Industrial Conglomerates, Japan

   1.4%

Honda Motor Co. Ltd.

Automobiles, Japan

   1.4%

Mitsubishi Corp.

Trading Companies & Distributors, Japan

   1.4%

 

1. The FTSE Japan Capped Hedged Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Japan Capped Hedged Index-NR is based on the FTSE Japan Hedged to USD Index and is designed to measure the performance of Japanese large- and mid-capitalization stocks. The FTSE Japan Capped Hedged Index-NR incorporates a hedge against fluctuations of the Japanese yen by reflecting the impact of rolling monthly currency forward contracts on the Japanese yen.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 235.

 

           
franklintempleton.com  

Semiannual Report

             67


FRANKLIN FTSE JAPAN HEDGED ETF

 

Thank you for your participation in Franklin FTSE Japan Hedged ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
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FRANKLIN FTSE JAPAN HEDGED ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

           Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     +20.21%       +19.68%       +20.21%       +19.68%  

1-Year

     +34.73%       +34.29%       +34.73%       +34.29%  

3-Year

     +62.74%       +61.76%       +17.62%       +17.39%  

5-Year

     +58.29%       +58.23%       +9.62%       +9.61%  

Since Inception (11/2/17)

     +66.26%       +66.50%       +8.98%       +9.01%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 70 for Performance Summary footnotes.

 

 

           
franklintempleton.com  

Semiannual Report

             69


FRANKLIN FTSE JAPAN HEDGED ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment
Income

$0.319583

Total Annual Operating Expenses5

 

  0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. While the Fund’s currency hedging approach is designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund’s exposure to the currencies. The return of the currency-related derivatives will not perfectly offset the actual fluctuations between the currencies and the U.S. dollar. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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FRANKLIN FTSE JAPAN HEDGED ETF

 

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

     

Actual

(actual return after expenses)

   

Hypothetical

(5% annual return before expenses)

       
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $1,202.10       $0.50       $1,024.55       $0.46       0.09

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE Latin America ETF

 

This semiannual report for Franklin FTSE Latin America ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Latin America RIC Capped Index (the FTSE Latin America Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Latin America Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries       
9/30/23       
     % of Total
Net Assets
 

 

 

Banks

     18.2%  

 

 

Oil, Gas & Consumable Fuels

     13.4%  

 

 

Metals & Mining

     12.1%  

 

 

Beverages

     6.5%  

 

 

Electric Utilities

     6.0%  

 

 

Consumer Staples Distribution & Retail

     5.5%  

 

 

Food Products

     3.7%  

 

 

Capital Markets

     3.5%  

 

 

Wireless Telecommunication Services

     3.4%  

 

 

Transportation Infrastructure

     3.0%  

 

 

Performance Overview

During the six-month period, the Fund posted cumulative total returns of +8.69% based on market price and +8.94% based on net asset value. In comparison, the FTSE Latin America Capped Index-NR posted a +9.12% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 74.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       
9/30/23       
Company
Sector/Industry, Country
   % of Total
Net Assets
 

Petroleo Brasileiro SA, 9.792%, pfd.

Oil, Gas & Consumable Fuels, Brazil

     10.3%  

Vale SA

Metals & Mining, Brazil

     7.9%  

Itau Unibanco Holding SA, 4.671%, pfd.

Banks, Brazil

     4.3%  
Grupo Financiero Banorte SAB de CV, Class O Banks, Mexico      3.7%  

Fomento Economico Mexicano SAB de CV

Beverages, Mexico

     3.1%  

America Movil SAB de CV

Wireless Telecommunication Services, Mexico

     3.1%  

Wal-Mart de Mexico SAB de CV, Class V

Consumer Staples Distribution & Retail, Mexico

     3.0%  

Banco Bradesco SA, 5.993%, pfd.

Banks, Brazil

     2.9%  

Grupo Mexico SAB de CV, Class B

Metals & Mining, Mexico

     2.3%  

B3 SA—Brasil Bolsa Balcao

Capital Markets, Brazil

     2.2%  

 

1. The FTSE Latin America Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Latin America Capped Index-NR is based on the FTSE Latin America Index and is designed to measurethe performance of Latin American large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 247.

 

           
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FRANKLIN FTSE LATIN AMERICA ETF

 

Country Composition       
9/30/23       
      % of Total
Net Assets
 

Brazil

     60.5%  

Mexico

     29.6%  

Chile

     6.1%  

Colombia

     1.5%  

United States

     1.0%  

Thank you for your participation in Franklin FTSE Latin America ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
franklintempleton.com  

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FRANKLIN FTSE LATIN AMERICA ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     +8.94%       +8.69%       +8.94%       +8.69%  

1-Year

     +19.50%       +18.98%       +19.50%       +18.98%  

3-Year

     +50.29%       +48.10%       +14.55%       +13.99%  

Since Inception (10/9/18)

     +6.82%       +6.42%       +1.33%       +1.26%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

 

See page 75 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE LATIN AMERICA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment
Income

$0.524254

Total Annual Operating Expenses5

 

  0.19%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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Semiannual Report

             75


FRANKLIN FTSE LATIN AMERICA ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

   
Actual
(actual return after expenses)

 
   
Hypothetical
(5% annual return before expenses)

 
 
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $1,089.40       $0.99       $1,024.05       $0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE Mexico ETF

 

This semiannual report for Franklin FTSE Mexico ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Mexico RIC Capped Index (the FTSE Mexico Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Mexico Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries       
9/30/23       
      % of Total
Net Assets
 

Banks

     18.8%  

Beverages

     15.4%  

Consumer Staples Distribution & Retail

     11.2%  

Wireless Telecommunication Services

     9.9%  

Transportation Infrastructure

     8.8%  

Metals & Mining

     8.4%  

Food Products

     6.5%  

Construction Materials

     5.0%  

Industrial Conglomerates

     3.3%  

Diversified REITs

     2.9%  

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -0.80% based on market price and -0.38% based on net asset value. In comparison, the FTSE Mexico Capped Index-NR posted a -0.26% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 79.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       
9/30/23       
Company
Sector/Industry, Country
   % of Total
Net Assets
 
Grupo Financiero Banorte SAB de CV, Class O
Banks, Mexico
     12.0%  
Fomento Economico Mexicano SAB de CV
Beverages, Mexico
     9.9%  
America Movil SAB de CV
Wireless Telecommunication Services, Mexico
     9.9%  
Wal-Mart de Mexico SAB de CV, Class V
Consumer Staples Distribution & Retail, Mexico
     9.6%  
Grupo Mexico SAB de CV, Class B
Metals & Mining, Mexico
     7.5%  
Grupo Bimbo SAB de CV
Food Products, Mexico
     4.5%  
Cemex SAB de CV
Construction Materials, Mexico
     4.1%  
Grupo Aeroportuario del Pacifico SAB de CV, Class B
Transportation Infrastructure, Mexico
     3.2%  
Grupo Aeroportuario del Sureste SAB de CV, Class B
Transportation Infrastructure, Mexico
     2.8%  
Fibra Uno Administracion SA de CV
Diversified REITs, Mexico
     2.8%  

 

1. The FTSE Mexico Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Mexico Capped Index-NR is based on the FTSE Mexico Index and is designed to measure the performance of Mexican large-and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 252.

 

           
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FRANKLIN FTSE MEXICO ETF

 

Thank you for your participation in Franklin FTSE Mexico ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
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FRANKLIN FTSE MEXICO ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/7/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -0.38%       -0.80%       -0.38%       -0.80%  

1-Year

     +35.71%       +35.28%       +35.71%       +35.28%  

3-Year

     +91.80%       +91.12%       +24.25%       +24.10%  

5-Year

     +28.85%       +28.45%       +5.20%       +5.14%  

Since Inception (11/3/17)

     +36.13%       +35.81%       +5.36%       +5.32%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 80 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE MEXICO ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment
Income

$0.280493

Total Annual Operating Expenses5

 

  0.19%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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FRANKLIN FTSE MEXICO ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

   
Actual
(actual return after expenses)

 
   
Hypothetical
(5% annual return before expenses)

 
 
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $996.20       $0.95       $1,024.05       $0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE Saudi Arabia ETF

 

This semiannual report for Franklin FTSE Saudi Arabia ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Saudi Arabia RIC Capped Index (the FTSE Saudi Arabia Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Saudi Arabia Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries       
9/30/23       
      % of Total
Net Assets
 

Banks

     38.1%  

Chemicals

     15.4%  

Oil, Gas & Consumable Fuels

     10.5%  

Diversified Telecommunication Services

     6.3%  

Metals & Mining

     4.6%  

Health Care Providers & Services

     3.2%  

Food Products

     2.8%  

IT Services

     2.6%  

Independent Power Producers & Energy Traders

     2.4%  

Insurance

     2.3%  

Performance Overview

During the six-month period, the Fund posted cumulative total returns of +1.72% based on market price and +2.29% based on net asset value. In comparison, the FTSE Saudi Arabia Capped Index-NR posted a +3.10% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 84.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       
9/30/23       
Company
Sector/Industry, Country
   % of Total
Net Assets
 
Al Rajhi Bank
Banks, Saudi Arabia
     12.4%  
Saudi Arabian Oil Co.
Oil, Gas & Consumable Fuels, Saudi Arabia
     10.1%  
Saudi National Bank
Banks, Saudi Arabia
     8.9%  
Saudi Basic Industries Corp.
Chemicals, Saudi Arabia
     6.9%  
Saudi Telecom Co.
Diversified Telecommunication Services, Saudi Arabia
     6.3%  
Saudi Arabian Mining Co.
Metals & Mining, Saudi Arabia
     4.6%  
Riyad Bank
Banks, Saudi Arabia
     3.8%  
Alinma Bank
Banks, Saudi Arabia
     3.1%  
Saudi Awwal Bank
Banks, Saudi Arabia
     3.1%  
SABIC Agri-Nutrients Co.
Chemicals, Saudi Arabia
     2.9%  

 

1. The FTSE Saudi Arabia Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Saudi Arabia Capped Index-NR is based on the FTSE Saudi Arabia Index and is designed to measure the performance of Saudi Arabian large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 254.

 

           
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FRANKLIN FTSE SAUDI ARABIA ETF

 

Thank you for your participation in Franklin FTSE Saudi Arabia ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
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FRANKLIN FTSE SAUDI ARABIA ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     +2.89%       +1.72%       +2.89%       +1.72%  

1-Year

     -3.99%       -3.38%       -3.99%       -3.38%  

3-Year

     +45.23%       +42.93%       +13.24%       +12.64%  

Since Inception (10/9/18)

     +53.72%       +52.75%       +9.03%       +8.89%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

 

See page 85 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE SAUDI ARABIA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment
Income

$0.482807

Total Annual Operating Expenses5

 

  0.39%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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FRANKLIN FTSE SAUDI ARABIA ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

   
Actual
(actual return after expenses)

 
   
Hypothetical
(5% annual return before expenses)

 
 
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $1,028.90       $1.98       $1,023.05       $1.97       0.39

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE South Africa ETF

 

This semiannual report for Franklin FTSE South Africa ETF covers the period ended September 30, 2023. On September 7, 2023, the ETF Board of Trustees approved a proposal to liquidate and dissolve the Fund. The liquidation is anticipated to occur on or about November 16, 2023. After the close of business on October 19, 2023, the Fund will no longer accept creation orders. Trading in the Fund on NYSE Arca, Inc. (NYSE Arca) will be halted prior to market open on November 10, 2023. Proceeds of the liquidation are currently scheduled to be sent to shareholders on or about November 16, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE/JSE South Africa RIC Capped Index (the FTSE/JSE South Africa Capped Index or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE/JSE South Africa Capped Index and in depositary receipts representing such securities.

Top 10 Sectors/Industries     
9/30/23     
      % of Total
Net Assets

Metals & Mining

   16.4%

Broadline Retail

   16.3%

Banks

   16.3%

Financial Services

   10.3%

Consumer Staples Distribution & Retail

   8.3%

Insurance

   7.5%

Wireless Telecommunication Services

   6.9%

Chemicals

   3.9%

Specialty Retail

   2.6%

Industrial Conglomerates

   2.4%

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -9.43% based on market price and -9.14%% based on net asset value. In comparison, the FTSE/JSE South Africa Capped Index posted a -9.12% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 89.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

1. The FTSE/JSE South Africa Capped Index is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE/JSE South Africa Capped Index is based on the FTSE South Africa Index and is designed to measure the performance of South African large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 257.

 

           
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FRANKLIN FTSE SOUTH AFRICA ETF

 

Top 10 Holdings     
9/30/23     

Company

Sector/Industry, Country

   % of Total
Net Assets

Naspers Ltd., Class N

Broadline Retail, South Africa

   14.7%

FirstRand Ltd.

Financial Services, South Africa

   8.3%

Standard Bank Group Ltd.

Banks, South Africa

   6.4%

MTN Group Ltd.

Wireless Telecommunication Services, South Africa

   5.3%

Gold Fields Ltd.

Metals & Mining, South Africa

   4.7%

Sasol Ltd.

Chemicals, South Africa

   3.9%

Capitec Bank Holdings Ltd.

Banks, South Africa

   3.8%

Absa Group Ltd.

Banks, South Africa

   3.8%

Bid Corp. Ltd.

Consumer Staples Distribution & Retail, South Africa

   3.6%

Anglogold Ashanti PLC

Metals & Mining, United Kingdom

   3.3%

Thank you for your participation in Franklin FTSE South Africa ETF. It has been a pleasure serving your investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
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FRANKLIN FTSE SOUTH AFRICA ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/11/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

           Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4  
   
Based on
NAV
 
3  
   
Based on
market price
 
4  

6-Month

     -9.14%       -9.43%       -9.14%       -9.43%  

1-Year

     +5.95%       +6.86%       +5.95%       +6.86%  

3-Year

     +16.16%       +15.45%       +5.12%       +4.91%  

Since Inception (10/10/18)

     +4.48%       +3.66%       +0.89%       +0.73%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 90 for Performance Summary footnotes.

 

 

           
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FRANKLIN FTSE SOUTH AFRICA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment
Income

$0.434646

Total Annual Operating Expenses5

 

  0.19%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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FRANKLIN FTSE SOUTH AFRICA ETF

 

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

   

Actual

(actual return after expenses)

 

 

   

Hypothetical

(5% annual return before expenses)

 

 

 
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $908.60       $0.91       $1,024.05       $0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE South Korea ETF

 

This semiannual report for Franklin FTSE South Korea ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE South Korea RIC Capped Index (the FTSE South Korea Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE South Korea Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries     
9/30/23     
      % of Total
Net Assets

Technology Hardware, Storage & Peripherals

   20.0%

Banks

   7.4%

Semiconductors & Semiconductor Equipment

   6.6%

Chemicals

   6.3%

Automobiles

   5.5%

Electrical Equipment

   5.3%

Metals & Mining

   5.1%

Electronic Equipment, Instruments & Components

   5.0%

Interactive Media & Services

   4.5%

Industrial Conglomerates

   3.3%

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -2.57% based on market price and -2.61% based on net asset value. In comparison, the FTSE South Korea Capped Index-NR posted a -2.58% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 94.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings     
9/30/23     
Company
Sector/Industry, Country
   % of Total
Net Assets

Samsung Electronics Co. Ltd.

Technology Hardware, Storage & Peripherals, South Korea

   19.6%

SK Hynix, Inc.

Semiconductors & Semiconductor Equipment, South Korea

   6.6%

POSCO Holdings, Inc.

Metals & Mining, South Korea

   4.3%

Hyundai Motor Co.

Automobiles, South Korea

   3.5%

NAVER Corp.

Interactive Media & Services, South Korea

   3.1%

Samsung SDI Co. Ltd.

Electronic Equipment, Instruments & Components, South Korea

   2.8%

LG Chem Ltd.

Chemicals, South Korea

   2.8%

KB Financial Group, Inc.

Banks, South Korea

   2.2%

Kia Corp.

Automobiles, South Korea

   2.1%

LG Energy Solution Ltd.

Electrical Equipment, South Korea

   2.0%

 

1. The FTSE South Korea Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE South Korea Capped Index-NR is based on the FTSE South Korea Index and is designed to measure the performance of South Korean large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 259.

 

           
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FRANKLIN FTSE SOUTH KOREA ETF

 

Thank you for your participation in Franklin FTSE South Korea ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
franklintempleton.com  

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FRANKLIN FTSE SOUTH KOREA ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

           Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3 
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -2.61%       -2.57%       -2.61%       -2.57%  

1-Year

     +24.89%       +26.47%       +24.89%       +26.47%  

3-Year

     -3.89%       -5.92%       -1.31%       -2.01%  

5-Year

     -4.27%       -3.97%       -0.87%       -0.81%  

Since Inception (11/2/17)

     -10.78%       -11.00%       -1.91%       -1.95%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

See page 95 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE SOUTH KOREA ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment
Income

$0.167560

Total Annual Operating Expenses5

 

  0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
franklintempleton.com  

Semiannual Report

             95


FRANKLIN FTSE SOUTH KOREA ETF

 

Your Fund’s Expenses

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

     

Actual

(actual return after expenses)

   

Hypothetical

(5% annual return before expenses)

       
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $973.90       $0.44       $1,024.55       $0.46       0.09

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE Switzerland ETF

 

This semiannual report for Franklin FTSE Switzerland ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Switzerland RIC Capped Index (the FTSE Switzerland Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Switzerland Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries       
9/30/23       
      % of Total
Net Assets
 

Pharmaceuticals

     24.9%  

Food Products

     20.4%  

Insurance

     9.4%  

Capital Markets

     7.7%  

Chemicals

     5.3%  

Textiles, Apparel & Luxury Goods

     5.0%  

Health Care Equipment & Supplies

     4.8%  

Electrical Equipment

     3.7%  

Life Sciences Tools & Services

     3.1%  

Construction Materials

     2.5%  

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -2.06% based on market price and -1.61% based on net asset value. In comparison, the FTSE Switzerland Capped Index-NR posted a -1.77% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 99.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       
9/30/23       
Company
Sector/Industry, Country
   % of Total
Net Assets
 
Nestle SA
Food Products, Switzerland
     18.0%  
Novartis AG
Pharmaceuticals, Switzerland
     12.9%  
Roche Holding AG
Pharmaceuticals, Switzerland
     12.0%  
UBS Group AG
Capital Markets, Switzerland
     4.7%  
Zurich Insurance Group AG
Insurance, Switzerland
     4.5%  
Cie Financiere Richemont SA, Class A
Textiles, Apparel & Luxury Goods, Switzerland
     4.2%  
ABB Ltd.
Electrical Equipment, Switzerland
     3.7%  
Alcon, Inc.
Health Care Equipment & Supplies, Switzerland
     2.8%  
Sika AG
Chemicals, Switzerland
     2.6%  
Lonza Group AG
Life Sciences Tools & Services, Switzerland
     2.5%  

 

1. The FTSE Switzerland Capped Index-NR is a free float-adjusted market-capitalization weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Switzerland Capped Index-NR is based on the FTSE Switzerland Index and is designed to measure the performance of Swiss large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 264.

 

           
franklintempleton.com  

Semiannual Report

             97


FRANKLIN FTSE SWITZERLAND ETF

 

Thank you for your participation in Franklin FTSE Switzerland ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
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FRANKLIN FTSE SWITZERLAND ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/9/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -1.61%       -2.06%       -1.61%       -2.06%  

1-Year

     +16.77%       +17.42%       +16.77%       +17.42%  

3-Year

     +13.68%       +13.34%       +4.37%       +4.26%  

5-Year

     +42.23%       +42.28%       +7.30%       +7.31%  

Since Inception (2/6/18)

     +45.09%       +44.58%       +6.81%       +6.75%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 100 for Performance Summary footnotes.

 

           
franklintempleton.com  

Semiannual Report

             99


FRANKLIN FTSE SWITZERLAND ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment
Income

$0.736118

Total Annual Operating Expenses5

 

  0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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FRANKLIN FTSE SWITZERLAND ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

      Actual
(actual return after expenses)
    Hypothetical
(5% annual return before expenses)
       
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $983.90       $0.45       $1,024.55       $0.46       0.09

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Semiannual Report

             101


Franklin FTSE Taiwan ETF

 

This semiannual report for Franklin FTSE Taiwan ETF covers the period ended September 30, 2023.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Taiwan RIC Capped Index (the FTSE Taiwan Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Taiwan Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries       
9/30/23       
      % of Total
Net Assets
 

Semiconductors & Semiconductor Equipment

     34.8%  

Electronic Equipment, Instruments & Components

     13.4%  

Banks

     11.2%  

Technology Hardware, Storage & Peripherals

     11.1%  

Insurance

     4.8%  

Chemicals

     3.9%  

Financial Services

     2.3%  

Diversified Telecommunication Services

     1.8%  

Electrical Equipment

     1.7%  

Food Products

     1.4%  

Performance Overview

During the six-month period, the Fund posted cumulative total returns of -1.40% based on market price and -1.51% based on net asset value. In comparison, the FTSE Taiwan Capped Index-NR posted a -1.43% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 104.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       
9/30/23       
Company
Sector/Industry, Country
   % of Total
Net Assets
 
Taiwan Semiconductor Manufacturing Co. Ltd.
Semiconductors & Semiconductor Equipment, Taiwan
     19.6%  
Hon Hai Precision Industry Co. Ltd.
Electronic Equipment, Instruments & Components,Taiwan
     5.0%  

MediaTek, Inc.

Semiconductors & Semiconductor Equipment, Taiwan

     4.4%  
Delta Electronics, Inc., Class A
Electronic Equipment, Instruments & Components, Taiwan
     2.8%  
Quanta Computer, Inc.
Technology Hardware, Storage & Peripherals, Taiwan
     2.6%  
United Microelectronics Corp.
Semiconductors & Semiconductor Equipment, Taiwan
     2.1%  
Fubon Financial Holding Co. Ltd.
Insurance, Taiwan
     1.9%  
CTBC Financial Holding Co. Ltd., Class A
Banks, Taiwan
     1.8%  
Chunghwa Telecom Co. Ltd.
Diversified Telecommunication Services, Taiwan
     1.8%  
Mega Financial Holding Co. Ltd.
Banks, Taiwan
     1.7%  

 

 

 

1. The FTSE Taiwan Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE Taiwan Capped Index-NR is based on the FTSE Taiwan Index and is designed to measure the performance of Taiwanese large-and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 267.

 

           
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FRANKLIN FTSE TAIWAN ETF

 

Thank you for your participation in Franklin FTSE Taiwan ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
franklintempleton.com  

Semiannual Report

             103


FRANKLIN FTSE TAIWAN ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     -1.51%       -1.40%       -1.51%       -1.40%  

1-Year

     +21.74%       +23.80%       +21.74%       +23.80%  

3-Year

     +26.56%       +26.12%       +8.17%       +8.04%  

5-Year

     +54.18%       +54.43%       +9.05%       +9.08%  

Since Inception (11/2/17)

     +60.33%       +60.76%       +8.32%       +8.37%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 105 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment
Income

$0.162445

Total Annual Operating Expenses5

 

  0.19%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. There are special risks associated with investments in China, Hong Kong and Taiwan, including less liquidity, expropriation, confiscatory taxation, international trade tensions, nationalization, and exchange control regulations and rapid inflation, all of which can negatively impact the Fund. Investments in Taiwan could be adversely affected by its political and economic relationship with China. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
franklintempleton.com  

Semiannual Report

             105


FRANKLIN FTSE TAIWAN ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

      Actual
(actual return after expenses)
    Hypothetical
(5% annual return before expenses)
       
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $984.90       $0.94       $1,024.05       $0.96       0.19

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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Franklin FTSE United Kingdom ETF

 

This semiannual report for Franklin FTSE United Kingdom ETF covers the period ended September 30, 2023.

Fund Overview

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE UK RIC Capped Index (the FTSE UK Capped Index-NR or the Underlying Index).1 Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE UK Capped Index-NR and in depositary receipts representing such securities.

 

Top 10 Sectors/Industries       
9/30/23       
      % of Total
Net Assets
 

Oil, Gas & Consumable Fuels

     13.3%  

Pharmaceuticals

     11.6%  

Banks

     10.6%  

Metals & Mining

     7.6%  

Personal Care Products

     6.0%  

Professional Services

     4.2%  

Hotels, Restaurants & Leisure

     4.1%  

Capital Markets

     3.8%  

Tobacco

     3.6%  

Beverages

     3.6%  

Performance Overview

For the six-month period, the Fund posted cumulative total returns of +0.67% based on market price and +0.96% based on net asset value. In comparison, the FTSE UK Capped Index-NR posted a +1.03% total return for the same period.2 You can find more of the Fund’s performance data in the Performance Summary beginning on page 109.

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

Top 10 Holdings       
9/30/23       
Company
Sector/Industry, Country
   % of Total
Net Assets
 
Shell PLC
Oil, Gas & Consumable Fuels, Netherlands
     8.8%  
AstraZeneca PLC
Pharmaceuticals, United Kingdom
     8.2%  
HSBC Holdings PLC
Banks, United Kingdom
     6.4%  
Unilever PLC
Personal Care Products, United Kingdom
     5.1%  
BP PLC
Oil, Gas & Consumable Fuels, United Kingdom
     4.5%  
Diageo PLC
Beverages, United Kingdom
     3.4%  
GSK PLC
Pharmaceuticals, United Kingdom
     3.0%  
Glencore PLC
Metals & Mining, Australia
     2.9%  
British American Tobacco PLC
Tobacco, United Kingdom
     2.9%  
Rio Tinto PLC
Metals & Mining, Australia
     2.8%  

 

 

 

1. The FTSE UK Capped Index-NR is a free float-adjusted market capitalization-weighted index maintained and calculated by FTSE Russell with a capping methodology applied quarterly to issuer weights so that no single issuer of a component exceeds 25% of the index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the index’s weight. The FTSE UK Capped Index-NR is based on the FTSE UK Index and is designed to measure the performance of U.K. large- and mid-capitalization stocks.

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index. Net Return (NR) include income net of tax withholding when dividends are paid.

See www.franklintempletondatasources.com for additional data provider information.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Schedule of Investments (SOI). The SOI begins on page 271.

 

           
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FRANKLIN FTSE UNITED KINGDOM ETF

 

Thank you for your participation in Franklin FTSE United Kingdom ETF. We look forward to serving your future investment needs.

Dina Ting, CFA

Hailey Harris

Joe Diederich

Basit Amin, CFA

Portfolio Management Team

 

           
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FRANKLIN FTSE UNITED KINGDOM ETF

 

Performance Summary as of September 30, 2023

Total return reflects reinvestment of the Fund’s dividends and capital gain distributions, if any, and any unrealized gains or losses. Total returns do not include brokerage commissions that may be payable on secondary market transactions. The performance table does not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale or redemption of Fund shares.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (11/6/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Your dividend income will vary depending on dividends or interest paid by securities in the Fund’s portfolio, adjusted for operating expenses. Capital gain distributions are net profits realized from the sale of portfolio securities.

Performance as of 9/30/231

 

     Cumulative Total Return2       Average Annual Total Return2  
      
Based on
NAV
 
3  
   
Based on
market price
 
4 
   
Based on
NAV
 
3  
   
Based on
market price
 
4 

6-Month

     +0.96%       +0.67%       +0.96%       +0.67%  

1-Year

     +26.27%       +27.19%       +26.27%       +27.19%  

3-Year

     +37.63%       +37.87%       +11.23%       +11.30%  

5-Year

     +15.14%       +14.91%       +2.86%       +2.82%  

Since Inception (11/2/17)

     +18.31%       +17.98%       +2.89%       +2.84%  

Performance data represent past performance, which does not guarantee future results. Investment return and principal value will fluctuate, and you may have a gain or loss when you sell your shares. Current performance may differ from figures shown. For most recent month-end performance, go to franklintempleton.com or call (800) 342-5236.

 

See page 110 for Performance Summary footnotes.

 

           
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FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

 

Distributions (4/1/23–9/30/23)

Net Investment
Income

$0.480988

Total Annual Operating Expenses5

 

  0.09%

Events such as the spread of deadly diseases, disasters, and financial, political or social disruptions, may heighten risks and adversely affect performance.

All investments involve risks, including possible loss of principal. Equity securities are subject to price fluctuation and possible loss of principal. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. To the extent the Fund invests in companies in a specific country or region, the Fund may experience greater volatility than a Fund that is more broadly diversified geographically. The portfolio is non-diversified and may invest in a relatively small number of issuers, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares. These and other risks are discussed in the Fund’s prospectus.

To the extent that the Fund has exposure to Russian investments or investments in countries affected by the invasion, the Fund’s ability to price, buy, sell, receive or deliver such investments may be impaired. The Fund could determine at any time that certain of the most affected securities have zero value. In addition, any exposure that the Fund may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Fund’s portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund’s performance and the value of an investment in the Fund, even beyond any direct exposure the Fund may have to Russian issuers or issuers in other countries affected by the invasion.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns.

1. The total annual operating expenses are as of the Fund’s prospectus available at the time of publication. Actual expenses may be higher and may impact portfolio returns.

2. Total return calculations represent the cumulative and average annual changes in value of an investment over the periods indicated. Return for less than one year, if any, has not been annualized.

3. Assumes reinvestment of distributions based on net asset value.

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report.

See www.franklintempletondatasources.com for additional data provider information.

 

           
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FRANKLIN FTSE UNITED KINGDOM ETF

 

Your Fund’s Expenses

 

As a Fund shareholder, you can incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares; and (2) ongoing Fund costs, including management fees and other Fund expenses. All funds have ongoing costs, sometimes referred to as operating expenses. The table below shows ongoing costs of investing in the Fund and can help you understand these costs and compare them with those of other funds. The table assumes a $1,000 investment held for the six months indicated.

Actual Fund Expenses

The table below provides information about actual account values and actual expenses in the columns under the heading “Actual.” In these columns the Fund’s actual return, which includes the effect of Fund expenses, is used to calculate the “Ending Account Value.” You can estimate the expenses you paid during the period by following these steps (of course, your account value and expenses will differ from those in this illustration): Divide your account value by $1,000 (if your account had an $8,600 value, then $8,600 ÷ $1,000 = 8.6). Then multiply the result by the number in the row under the headings “Actual” and “Expenses Paid During Period” (if Actual Expenses Paid During Period were $7.50, then 8.6 × $7.50 = $64.50). In this illustration, the actual expenses paid this period are $64.50.

Hypothetical Example for Comparison with Other Funds

Under the heading “Hypothetical” in the table, information is provided about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. This information may not be used to estimate the actual ending account balance or expenses you paid for the period, but it can help you compare ongoing costs of investing in the Fund with those of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that expenses shown in the table are meant to highlight ongoing costs and do not reflect any transactional costs. Therefore, information under the heading “Hypothetical” is useful in comparing ongoing costs only, and will not help you compare total costs of owning different funds. In addition, if transactional costs were included, your total costs would have been higher.

 

      Actual
(actual return after expenses)
    Hypothetical
(5% annual return before expenses)
       
 

Beginning
Account
Value 4/1/23
 
 
 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   

Ending
Account
Value 9/30/23
 
 
 
   


Expenses
Paid During
Period
4/1/23–9/30/23
 
 
 
1 
   
Net Annualized
Expense Ratio
 
 
  $1,000.00       $1,009.60       $0.45       $1,024.55       $0.46       0.09

1. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Asia ex Japan ETF

 

    Six Months Ended
September 30, 2023
(unaudited)
     Year Ended March 31,  
      2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 21.41      $ 24.22      $ 28.60      $ 18.39      $ 21.86      $ 23.63  
 

 

 

 
Income from investment operationsa:                 

Net investment incomeb

    0.37        0.57        0.55        0.44        0.49        0.51  

Net realized and unrealized gains (losses)

    (1.17      (2.79      (4.31      10.21        (3.46      (1.82
 

 

 

 

Total from investment operations

    (0.80      (2.22      (3.76      10.65        (2.97      (1.31
 

 

 

 

Less distributions from net investment income

    (0.18      (0.59      (0.62      (0.44      (0.50      (0.46
 

 

 

 

Net asset value, end of period

  $ 20.43      $ 21.41      $ 24.22      $ 28.60      $ 18.39      $ 21.86  
 

 

 

 

Total returnc

    (3.80)%        (9.10)%        (13.34)%        58.16%        (13.88)%        (5.34)%  
Ratios to average net assetsd                 

Expenses before waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        0.19%        0.19%  

Expenses net of waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income

    3.52%        2.67%        2.01%        1.78%        2.32%        2.34%  
Supplemental data                 

Net assets, end of period (000’s)

    $24,516        $29,980        $38,751        $34,317        $14,712        $17,488  

Portfolio turnover ratee

    18.56%f        5.85%f        10.09%f        11.45%f        11.42%f        7.11%  

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

bBased on average daily shares outstanding.

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

dRatios are annualized for periods less than one year.

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

fPortfolio turnover rate excluding cash creations was as follows:     3.61%        5.85%        9.63%        11.45%        11.2%         

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Asia ex Japan ETF

 

           Industry       Shares                Value  
 

Common Stocks 99.4%

         
 

Cambodia 0.0%

         
a  

NagaCorp Ltd

   Hotels, Restaurants & Leisure     6,150        $ 2,968  
           

 

 

 
    China 32.8%                    
a  

360 Security Technology, Inc., Class A

   Software     2,200          2,968  
 

37 Interactive Entertainment Network Technology Group Co. Ltd., Class A

   Entertainment     600          1,787  
b  

3SBio, Inc., Class A

   Biotechnology     7,500          6,272  
 

AAC Technologies Holdings, Inc., Class H

   Electronic Equipment, Instruments & Components     3,000          5,133  
 

Addsino Co. Ltd., Class A

   Communications Equipment     600          707  
 

Advanced Micro-Fabrication Equipment, Inc. China, Class A

   Semiconductors & Semiconductor Equipment     125          2,583  
 

AECC Aero-Engine Control Co. Ltd., Class A

   Aerospace & Defense     400          1,179  
 

AECC Aviation Power Co. Ltd., Class A

   Aerospace & Defense     800          4,079  
 

Agricultural Bank of China Ltd., Class A

   Banks     27,000          13,341  
 

Agricultural Bank of China Ltd., Class H

   Banks     126,000          46,977  
 

Aier Eye Hospital Group Co. Ltd., Class A

   Health Care Providers & Services     2,655          6,548  
a  

Air China Ltd., Class A

   Passenger Airlines     2,400          2,662  
a  

Air China Ltd., Class H

   Passenger Airlines     6,000          4,053  
 

Airtac International Group, Class A

   Machinery     660          20,016  
a,b  

Akeso, Inc.

   Biotechnology     1,900          8,734  
a,c  

Alibaba Group Holding Ltd., Class A

   Broadline Retail     68,600          749,779  
a,b  

A-Living Smart City Services Co. Ltd., Class H

   Real Estate Management & Development     3,000          1,693  
 

All Winner Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     200          652  
a  

Alpha Group, Class A

   Leisure Products     400          443  
 

Aluminum Corp. of China Ltd., Class A

   Metals & Mining     3,600          3,103  
 

Aluminum Corp. of China Ltd., Class H

   Metals & Mining     16,000          8,948  
a  

Amlogic Shanghai Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     125          1,082  
 

An Hui Wenergy Co. Ltd., Class A

   Independent Power Producers & Energy Traders     1,000          833  
 

Angang Steel Co. Ltd., Class A

   Metals & Mining     1,600          600  
 

Angang Steel Co. Ltd., Class H

   Metals & Mining     6,000          1,502  
 

Angel Yeast Co. Ltd., Class A

   Food Products     200          922  
b  

Angelalign Technology, Inc.

   Health Care Equipment & Supplies     200          1,242  
 

Anhui Anke Biotechnology Group Co. Ltd., Class A

   Biotechnology     632          863  
 

Anhui Conch Cement Co. Ltd., Class A

   Construction Materials     1,200          4,287  
 

Anhui Conch Cement Co. Ltd., Class H

   Construction Materials     4,880          12,992  
 

Anhui Expressway Co. Ltd., Class H

   Transportation Infrastructure     2,000          2,091  
 

Anhui Gujing Distillery Co. Ltd., Class A

   Beverages     200          7,461  
 

Anhui Gujing Distillery Co. Ltd., Class B

   Beverages     500          8,363  
 

Anhui Zhongding Sealing Parts Co. Ltd., Class A

   Automobile Components     400          663  
 

Anjoy Foods Group Co. Ltd., Class A

   Food Products     100          1,702  
 

ANTA Sports Products Ltd., Class A

   Textiles, Apparel & Luxury Goods     5,000          56,277  
 

Apeloa Pharmaceutical Co. Ltd., Class A

   Pharmaceuticals     400          988  
c  

Autohome, Inc., ADR

   Interactive Media & Services     248          7,527  
 

AVIC Industry-Finance Holdings Co. Ltd., Class A

   Financial Services     2,800          1,345  
 

AviChina Industry & Technology Co. Ltd., Class H

   Aerospace & Defense     10,000          4,750  
 

Avicopter PLC, Class A

   Aerospace & Defense     200          1,039  
b  

BAIC Motor Corp. Ltd., Class H

   Automobiles     11,000          3,329  
a,c  

Baidu, Inc., Class A

   Interactive Media & Services     9,000          153,297  
 

Bank of Beijing Co. Ltd., Class A

   Banks     6,000          3,813  
 

Bank of Changsha Co. Ltd., Class A

   Banks     1,000          1,124  
 

Bank of Chengdu Co. Ltd., Class A

   Banks     400          755  
 

Bank of China Ltd., Class A

   Banks     13,200          6,830  
 

Bank of China Ltd., Class H

   Banks     306,000          107,055  
 

Bank of Communications Co. Ltd., Class A

   Banks     11,400          9,013  
 

Bank of Communications Co. Ltd., Class H

   Banks     29,000          17,551  
 

Bank of Guiyang Co. Ltd., Class A

   Banks     1,000          767  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

China (continued)

         
 

Bank of Hangzhou Co. Ltd., Class A

  

Banks

    1,800        $ 2,757  
 

Bank of Jiangsu Co. Ltd., Class A

  

Banks

    1,480          1,459  
 

Bank of Nanjing Co. Ltd., Class A

  

Banks

    3,000          3,315  
 

Bank of Ningbo Co. Ltd., Class A

  

Banks

    1,880          6,933  
 

Bank of Shanghai Co. Ltd., Class A

  

Banks

    4,280          3,625  
a  

Bank of Zhengzhou Co. Ltd., Class A

   Banks     2,092          612  
 

Baoshan Iron & Steel Co. Ltd., Class A

  

Metals & Mining

    5,400          4,514  
 

BBMG Corp., Class A

  

Construction Materials

    1,800          544  
 

BBMG Corp., Class H

  

Construction Materials

    12,000          1,241  
a  

BeiGene Ltd.

   Biotechnology     2,400          32,973  
 

Beijing Capital Development Co. Ltd., Class A

  

Real Estate Management & Development

    600          337  
 

Beijing Capital Eco-Environment Protection Group Co. Ltd., Class A

  

Water Utilities

    2,400          936  
a  

Beijing Capital International Airport Co. Ltd., Class H

   Transportation Infrastructure     8,000          3,708  
 

Beijing Dabeinong Technology Group Co. Ltd., Class A

  

Food Products

    1,800          1,668  
 

Beijing Easpring Material Technology Co. Ltd., Class A

  

Electrical Equipment

    200          1,156  
a  

Beijing E-Hualu Information Technology Co. Ltd., Class A

   Software     200          948  
 

Beijing Enlight Media Co. Ltd., Class A

  

Entertainment

    1,000          1,180  
 

Beijing Enterprises Holdings Ltd., Class H

  

Gas Utilities

    2,000          6,895  
a  

Beijing Haixin Energy Technology Co. Ltd., Class A

   Chemicals     600          280  
a  

Beijing Jetsen Technology Co. Ltd., Class A

   Entertainment     1,000          714  
 

Beijing Jingneng Clean Energy Co. Ltd., Class H

  

Independent Power Producers & Energy Traders

    6,000          1,249  
 

Beijing Kingsoft Office Software, Inc., Class A

  

Software

    90          4,580  
 

Beijing New Building Materials PLC, Class A

  

Building Products

    600          2,475  
 

Beijing Originwater Technology Co. Ltd., Class A

  

Commercial Services & Supplies

    1,047          737  
a  

Beijing Shiji Information Technology Co. Ltd., Class A

   Software     810          1,273  
a  

Beijing Shougang Co. Ltd., Class A

   Metals & Mining     2,400          1,252  
a  

Beijing Sinnet Technology Co. Ltd., Class A

   IT Services     600          807  
 

Beijing Tongrentang Co. Ltd., Class A

  

Pharmaceuticals

    400          3,008  
 

Beijing Ultrapower Software Co. Ltd., Class A

  

IT Services

    600          828  
 

Beijing United Information Technology Co. Ltd., Class A

  

Trading Companies & Distributors

    210          958  
 

Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A

  

Biotechnology

    203          1,337  
 

Beijing Yanjing Brewery Co. Ltd., Class A

  

Beverages

    900          1,244  
 

Beijing Zhong Ke San Huan High-Tech Co. Ltd., Class A

  

Electronic Equipment, Instruments & Components

    445          665  
 

Beijing-Shanghai High Speed Railway Co. Ltd., Class A

  

Ground Transportation

    4,200          2,957  
a,c  

Bilibili, Inc., Class Z

   Entertainment     960          13,275  
b  

Blue Moon Group Holdings Ltd.

   Household Products     4,000          1,328  
a  

Bluefocus Intelligent Communications Group Co. Ltd., Class A

   Media     600          640  
 

BOC Hong Kong Holdings Ltd.

  

Banks

    14,500          39,713  
 

BOE Technology Group Co. Ltd., Class A

  

Electronic Equipment, Instruments & Components

    11,400          6,040  
 

BOE Technology Group Co. Ltd., Class B

  

Electronic Equipment, Instruments & Components

    3,600          1,200  
 

Bright Dairy & Food Co. Ltd., Class A

  

Food Products

    400          565  
a  

BTG Hotels Group Co. Ltd., Class A

   Hotels, Restaurants & Leisure     400          946  
b  

Budweiser Brewing Co. APAC Ltd., Class H

   Beverages     6,600          13,028  
 

BYD Co. Ltd., Class A

  

Automobiles

    600          19,493  
 

BYD Co. Ltd., Class H

  

Automobiles

    3,859          119,241  

 

           
114             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

China (continued)

         
 

BYD Electronic International Co. Ltd.

  

Communications Equipment

    3,000        $ 13,675  
 

By-health Co. Ltd., Class A

  

Personal Care Products

    600          1,564  
 

C&D International Investment Group Ltd.

  

Real Estate Management & Development

    2,500          6,084  
 

C&S Paper Co. Ltd., Class A

  

Household Products

    400          563  
 

Caitong Securities Co. Ltd., Class A

  

Capital Markets

    1,320          1,428  
 

Camel Group Co. Ltd., Class A

  

Electrical Equipment

    460          524  
 

Canmax Technologies Co. Ltd., Class A

  

Chemicals

    260          917  
a,b  

CanSino Biologics, Inc., Class H

   Pharmaceuticals     400          1,246  
 

CECEP Solar Energy Co. Ltd., Class A

  

Independent Power Producers & Energy Traders

    1,200          954  
 

CECEP Wind-Power Corp., Class A

  

Independent Power Producers & Energy Traders

    2,040          916  
 

Central China Securities Co. Ltd., Class A

  

Capital Markets

    1,000          544  
 

Central China Securities Co. Ltd., Class H

  

Capital Markets

    4,000          582  
 

CETC Cyberspace Security Technology Co. Ltd., Class A

  

Electronic Equipment, Instruments & Components

    200          653  
 

CGN Power Co. Ltd., Class A

  

Independent Power Producers & Energy Traders

    2,400          1,034  
b  

CGN Power Co. Ltd., Class H

   Independent Power Producers & Energy Traders     42,000          10,886  
 

Changchun High & New Technology Industry Group, Inc., Class A

  

Pharmaceuticals

    100          1,908  
 

Changjiang Securities Co. Ltd., Class A

  

Capital Markets

    1,800          1,440  
 

Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A

  

Automobile Components

    100          2,086  
 

Chaozhou Three-Circle Group Co. Ltd., Class A

  

Electronic Equipment, Instruments & Components

    600          2,553  
 

Chengdu Xingrong Environment Co. Ltd., Class A

  

Water Utilities

    1,200          883  
 

Chengxin Lithium Group Co. Ltd., Class A

  

Chemicals

    200          614  
 

China Baoan Group Co. Ltd., Class A

  

Industrial Conglomerates

    1,000          1,430  
a,b  

China Bohai Bank Co. Ltd., Class H

   Banks     12,000          1,762  
 

China Cinda Asset Management Co. Ltd., Class H

  

Capital Markets

    36,000          3,631  
 

China CITIC Bank Corp. Ltd., Class A

  

Banks

    3,000          2,355  
 

China CITIC Bank Corp. Ltd., Class H

  

Banks

    37,000          17,196  
 

China Coal Energy Co. Ltd., Class A

  

Oil, Gas & Consumable Fuels

    1,600          1,919  
 

China Coal Energy Co. Ltd., Class H

  

Oil, Gas & Consumable Fuels

    9,000          7,056  
 

China Communications Services Corp. Ltd., Class H

  

Construction & Engineering

    10,000          4,201  
 

China Conch Venture Holdings Ltd.

  

Construction & Engineering

    6,020          5,135  
 

China Construction Bank Corp., Class A

  

Banks

    3,000          2,594  
 

China Construction Bank Corp., Class H

  

Banks

    378,000          213,329  
 

China CSSC Holdings Ltd., Class A

  

Machinery

    1,200          4,595  
a  

China Eastern Airlines Corp. Ltd., Class A

   Passenger Airlines     4,200          2,536  
a  

China Eastern Airlines Corp. Ltd., Class H

   Passenger Airlines     6,000          2,045  
 

China Energy Engineering Corp. Ltd.

  

Construction & Engineering

    10,000          3,102  
 

China Energy Engineering Corp. Ltd., Class H

  

Construction & Engineering

    20,000          2,298  
 

China Everbright Bank Co. Ltd., Class A

  

Banks

    13,200          5,562  
 

China Everbright Bank Co. Ltd., Class H

  

Banks

    13,000          3,901  
b  

China Feihe Ltd.

   Food Products     16,000          9,438  
 

China Galaxy Securities Co. Ltd., Class A

  

Capital Markets

    600          905  
 

China Galaxy Securities Co. Ltd., Class H

  

Capital Markets

    16,000          8,253  
 

China Great Wall Securities Co. Ltd., Class A

  

Capital Markets

    1,000          1,139  
 

China Greatwall Technology Group Co. Ltd., Class A

  

Technology Hardware, Storage & Peripherals

    1,000          1,440  
 

China Green Electricity Investment of Tianjin Co. Ltd., Class A

  

Real Estate Management & Development

    600          903  
 

China Hongqiao Group Ltd.

  

Metals & Mining

    9,500          9,304  
a,b  

China Huarong Asset Management Co. Ltd., Class H

   Capital Markets     60,000          2,873  
 

China International Capital Corp. Ltd., Class A

  

Capital Markets

    300          1,542  

 

           
franklintempleton.com  

Semiannual Report

             115


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

China (continued)

         
b  

China International Capital Corp. Ltd., Class H

   Capital Markets     6,100        $ 11,185  
 

China International Marine Containers Group Co. Ltd., Class A

  

Machinery

    650          633  
 

China International Marine Containers Group Co. Ltd., Class H

  

Machinery

    3,200          1,847  
 

China Jinmao Holdings Group Ltd., Class A

  

Real Estate Management & Development

    28,000          3,611  
 

China Jushi Co. Ltd., Class A

  

Construction Materials

    1,371          2,540  
 

China Lesso Group Holdings Ltd.

  

Building Products

    4,000          2,130  
 

China Life Insurance Co. Ltd., Class H

   Insurance     30,000          46,732  
a,b,c  

China Literature Ltd., Class A

   Media     1,600          5,853  
 

China Longyuan Power Group Corp. Ltd., Class H

   Independent Power Producers & Energy Traders     14,000          12,191  
 

China Medical System Holdings Ltd.

   Pharmaceuticals     5,000          7,572  
 

China Meheco Co. Ltd., Class A

   Health Care Providers & Services     460          782  
 

China Meidong Auto Holdings Ltd.

   Specialty Retail     2,000          1,096  
 

China Merchants Bank Co. Ltd., Class A

   Banks     6,000          27,152  
 

China Merchants Bank Co. Ltd., Class H

   Banks     15,500          64,717  
 

China Merchants Energy Shipping Co. Ltd., Class A

   Oil, Gas & Consumable Fuels     3,000          2,648  
 

China Merchants Expressway Network & Technology Holdings Co. Ltd., Class A

   Transportation Infrastructure     600          795  
 

China Merchants Port Holdings Co. Ltd.

   Transportation Infrastructure     5,100          6,349  
 

China Merchants Property Operation & Service Co. Ltd., Class A

   Real Estate Management & Development     400          792  
 

China Merchants Securities Co. Ltd., Class A

   Capital Markets     2,220          4,260  
b  

China Merchants Securities Co. Ltd., Class H

   Capital Markets     2,000          1,752  
 

China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A

   Real Estate Management & Development     2,200          3,741  
 

China Minsheng Banking Corp. Ltd., Class A

   Banks     10,600          5,587  
 

China Minsheng Banking Corp. Ltd., Class H

   Banks     27,000          9,239  
 

China National Accord Medicines Corp. Ltd., Class B

   Health Care Providers & Services     420          744  
 

China National Building Material Co. Ltd., Class H

   Construction Materials     19,500          10,233  
 

China National Chemical Engineering Co. Ltd., Class A

   Construction & Engineering     1,800          1,922  
 

China National Nuclear Power Co. Ltd., Class A

   Independent Power Producers & Energy Traders     5,000          5,010  
 

China National Software & Service Co. Ltd., Class A

   Software     260          1,352  
a  

China Nonferrous Metal Industry’s Foreign Engineering & Construction Co. Ltd., Class A

   Metals & Mining     600          395  
 

China Northern Rare Earth Group High-Tech Co. Ltd., Class A

   Metals & Mining     1,200          3,589  
 

China Oilfield Services Ltd., Class A

   Energy Equipment & Services     600          1,336  
 

China Oilfield Services Ltd., Class H

   Energy Equipment & Services     8,000          9,602  
 

China Overseas Land & Investment Ltd., Class A

   Real Estate Management & Development     15,000          31,104  
 

China Pacific Insurance Group Co. Ltd., Class A

   Insurance     2,000          7,848  
 

China Pacific Insurance Group Co. Ltd., Class H

   Insurance     10,600          26,528  
 

China Petroleum & Chemical Corp., Class A

   Oil, Gas & Consumable Fuels     10,000          8,331  
 

China Petroleum & Chemical Corp., Class H

   Oil, Gas & Consumable Fuels     98,000          53,556  
 

China Railway Group Ltd., Class A

   Construction & Engineering     6,000          5,616  
 

China Railway Group Ltd., Class H

   Construction & Engineering     15,000          7,738  
 

China Railway Signal & Communication Corp. Ltd., Class A

   Electronic Equipment, Instruments & Components     2,000          1,449  
b  

China Railway Signal & Communication Corp. Ltd., Class H

   Electronic Equipment, Instruments & Components     6,000          1,915  

 

           
116             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

China (continued)

         
 

China Rare Earth Resources & Technology Co. Ltd., Class A

  

Metals & Mining

    300        $ 1,185  
 

China Reinsurance Group Corp., Class H

  

Insurance

    30,000          1,819  
 

China Resources Boya Bio-pharmaceutical Group Co. Ltd., Class A

  

Biotechnology

    200          856  
 

China Resources Cement Holdings Ltd.

  

Construction Materials

    8,000          2,053  
 

China Resources Double Crane Pharmaceutical Co. Ltd., Class A

  

Pharmaceuticals

    400          959  
 

China Resources Microelectronics Ltd., Class A

  

Semiconductors & Semiconductor Equipment

    245          1,819  
b  

China Resources Mixc Lifestyle Services Ltd.

   Real Estate Management & Development     2,400          9,684  
b  

China Resources Pharmaceutical Group Ltd., Class A

   Pharmaceuticals     6,500          4,316  
 

China Resources Power Holdings Co. Ltd.

  

Independent Power Producers & Energy Traders

    7,600          14,498  
 

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A

  

Pharmaceuticals

    300          2,064  
a,c  

China Ruyi Holdings Ltd.

   Entertainment     16,000          4,147  
 

China Shenhua Energy Co. Ltd., Class A

  

Oil, Gas & Consumable Fuels

    2,000          8,565  
 

China Shenhua Energy Co. Ltd., Class H

  

Oil, Gas & Consumable Fuels

    13,770          44,658  
 

China South Publishing & Media Group Co. Ltd., Class A

  

Media

    600          988  
a  

China Southern Airlines Co. Ltd., Class A

   Passenger Airlines     3,600          3,024  
a  

China Southern Airlines Co. Ltd., Class H

   Passenger Airlines     6,000          2,919  
 

China Southern Power Grid Energy Efficiency&Clean Energy Co. Ltd., Class A

  

Commercial Services & Supplies

    1,000          791  
 

China State Construction Engineering Corp. Ltd., Class A

  

Construction & Engineering

    12,600          9,564  
 

China Suntien Green Energy Corp. Ltd., Class H

  

Oil, Gas & Consumable Fuels

    8,000          2,768  
 

China Taiping Insurance Holdings Co. Ltd.

  

Insurance

    6,000          5,976  
 

China Three Gorges Renewables Group Co. Ltd., Class A

  

Independent Power Producers & Energy Traders

    7,600          4,986  
 

China Tourism Group Duty Free Corp. Ltd., Class A

  

Specialty Retail

    600          8,727  
b  

China Tourism Group Duty Free Corp. Ltd., Class H

   Specialty Retail     400          5,307  
b  

China Tower Corp. Ltd., Class H

   Diversified Telecommunication Services     192,000          18,386  
a  

China TransInfo Technology Co. Ltd., Class A

   IT Services     400          656  
 

China Travel International Investment Hong Kong Ltd., Class A

  

Hotels, Restaurants & Leisure

    12,000          2,298  
 

China United Network Communications Ltd., Class A

  

Wireless Telecommunication Services

    8,400          5,661  
 

China Vanke Co. Ltd., Class A

  

Real Estate Management & Development

    3,000          5,386  
 

China Vanke Co. Ltd., Class H

  

Real Estate Management & Development

    9,000          9,929  
 

China Yangtze Power Co. Ltd., Class A

  

Independent Power Producers & Energy Traders

    7,200          21,978  
 

China Zhenhua Group Science & Technology Co. Ltd., Class A

  

Electronic Equipment, Instruments & Components

    200          2,223  
 

China Zheshang Bank Co. Ltd., Class A

  

Banks

    2,850          1,001  
 

Chinalin Securities Co. Ltd., Class A

  

Capital Markets

    400          775  
 

Chinese Universe Publishing & Media Group Co. Ltd., Class A

  

Media

    400          688  
 

Chongqing Changan Automobile Co. Ltd., Class A

  

Automobiles

    2,420          4,464  
 

Chongqing Changan Automobile Co. Ltd., Class B

  

Automobiles

    7,338          3,382  
 

Chongqing Rural Commercial Bank Co. Ltd., Class A

  

Banks

    1,600          878  
 

Chongqing Rural Commercial Bank Co. Ltd., Class H

  

Banks

    9,000          3,321  

 

           
franklintempleton.com  

Semiannual Report

             117


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

China (continued)

         
 

Chongqing Water Group Co. Ltd., Class A

  

Water Utilities

    400        $ 305  
 

Chongqing Zhifei Biological Products Co. Ltd., Class A

  

Biotechnology

    700          4,676  
 

Chow Tai Fook Jewellery Group Ltd., Class A

  

Specialty Retail

    7,600          11,451  
 

CITIC Ltd., Class B

  

Industrial Conglomerates

    20,000          18,386  
 

Citic Pacific Special Steel Group Co. Ltd., Class A

  

Metals & Mining

    1,480          3,008  
 

CITIC Securities Co. Ltd., Class A

  

Capital Markets

    3,495          10,390  
 

CITIC Securities Co. Ltd., Class H

  

Capital Markets

    9,500          19,262  
 

CMOC Group Ltd., Class A

  

Metals & Mining

    3,000          2,434  
 

CMOC Group Ltd., Class H

  

Metals & Mining

    15,000          9,634  
 

CMST Development Co. Ltd., Class A

  

Air Freight & Logistics

    400          291  
 

CNGR Advanced Material Co. Ltd., Class A

  

Chemicals

    200          1,390  
 

CNOOC Energy Technology & Services Ltd., Class A

  

Energy Equipment & Services

    2,200          987  
 

CNPC Capital Co. Ltd., Class A

  

Banks

    1,200          1,090  
 

Contemporary Amperex Technology Co. Ltd., Class A

  

Electrical Equipment

    1,240          34,555  
 

COSCO SHIPPING Development Co. Ltd., Class A

  

Trading Companies & Distributors

    2,400          784  
 

COSCO SHIPPING Development Co. Ltd., Class H

  

Trading Companies & Distributors

    16,000          1,737  
 

COSCO SHIPPING Energy Transportation Co. Ltd., Class A

  

Oil, Gas & Consumable Fuels

    1,000          1,856  
 

COSCO SHIPPING Energy Transportation Co. Ltd., Class H

  

Oil, Gas & Consumable Fuels

    6,000          6,558  
 

COSCO SHIPPING Holdings Co. Ltd., Class A

  

Marine Transportation

    3,700          4,982  
 

COSCO SHIPPING Holdings Co. Ltd., Class H

  

Marine Transportation

    12,450          12,765  
a  

Country Garden Holdings Co. Ltd.

   Real Estate Management & Development     52,000          6,042  
 

Country Garden Services Holdings Co. Ltd.

  

Real Estate Management & Development

    8,000          8,253  
 

CRRC Corp. Ltd., Class A

  

Machinery

    7,000          5,611  
 

CRRC Corp. Ltd., Class H

  

Machinery

    15,000          7,240  
 

CSC Financial Co. Ltd., Class A

  

Capital Markets

    1,400          4,729  
b  

SC Financial Co. Ltd., Class H

   Capital Markets     4,000          4,050  
 

CSG Holding Co. Ltd., Class A

  

Construction Materials

    600          464  
 

CSG Holding Co. Ltd., Class B

  

Construction Materials

    4,801          1,508  
 

CSPC Pharmaceutical Group Ltd.

  

Pharmaceuticals

    34,000          24,919  
 

Daan Gene Co. Ltd., Class A

  

Biotechnology

    712          955  
a,c  

Dada Nexus Ltd., Class A, ADR

   Consumer Staples Distribution & Retail     294          1,308  
 

Daqin Railway Co. Ltd., Class A

  

Ground Transportation

    4,600          4,603  
a  

Daqo New Energy Corp., ADR

   Semiconductors & Semiconductor Equipment     211          6,387  
 

Datang International Power Generation Co. Ltd., Class A

  

Independent Power Producers & Energy Traders

    2,400          876  
 

Datang International Power Generation Co. Ltd., Class H

  

Independent Power Producers & Energy Traders

    12,000          1,869  
 

DHC Software Co. Ltd., Class A

  

IT Services

    1,000          892  
 

Dian Diagnostics Group Co. Ltd., Class A

  

Health Care Providers & Services

    200          645  
 

Dong-E-E-Jiao Co. Ltd., Class A

  

Pharmaceuticals

    200          1,347  
 

Dongfang Electric Corp. Ltd., Class A

  

Electrical Equipment

    800          1,717  
 

Dongfang Electric Corp. Ltd., Class H

  

Electrical Equipment

    1,600          1,777  
 

Dongfeng Motor Group Co. Ltd., Class H

  

Automobiles

    12,000          4,735  
 

Dongxing Securities Co. Ltd., Class A

  

Capital Markets

    1,000          1,116  
a,b,c  

East Buy Holding Ltd.

   Diversified Consumer Services     1,500          7,077  
 

East Group Co. Ltd., Class A

  

Electrical Equipment

    1,200          1,015  
 

East Money Information Co. Ltd., Class A

  

Capital Markets

    4,565          9,524  
 

Ecovacs Robotics Co. Ltd., Class A

  

Household Durables

    200          1,331  
 

ENN Energy Holdings Ltd.

  

Gas Utilities

    3,100          25,728  

 

           
118             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

China (continued)

         
 

ENN Natural Gas Co. Ltd., Class A

  

Gas Utilities

    800        $ 1,913  
 

Eoptolink Technology, Inc. Ltd., Class A

  

Electronic Equipment, Instruments & Components

    200          1,263  
b  

ESR Group Ltd., Class H

   Real Estate Management & Development     10,800          15,169  
 

Eternal Asia Supply Chain Management Ltd., Class A

  

Commercial Services & Supplies

    800          486  
 

Eve Energy Co. Ltd., Class A

  

Electrical Equipment

    580          3,592  
 

Everbright Securities Co. Ltd., Class A

  

Capital Markets

    1,200          2,744  
b  

Everbright Securities Co. Ltd., Class H

   Capital Markets     1,200          866  
a  

Fangda Carbon New Material Co. Ltd., Class A

   Electrical Equipment     1,260          1,000  
a  

FAW Jiefang Group Co. Ltd.

   Machinery     1,000          1,191  
 

Fiberhome Telecommunication Technologies Co. Ltd., Class A

  

Communications Equipment

    400          1,073  
 

Financial Street Holdings Co. Ltd., Class A

  

Real Estate Management & Development

    1,000          598  
 

First Capital Securities Co. Ltd., Class A

  

Capital Markets

    1,200          970  
 

Flat Glass Group Co. Ltd., Class A

  

Semiconductors & Semiconductor Equipment

    200          777  
 

Flat Glass Group Co. Ltd., Class H

  

Semiconductors & Semiconductor Equipment

    2,000          4,494  
 

Focus Media Information Technology Co. Ltd., Class A

  

Media

    4,200          4,122  
 

Foshan Haitian Flavouring & Food Co. Ltd., Class A

  

Food Products

    1,380          7,196  
 

Fosun International Ltd.

  

Industrial Conglomerates

    9,000          5,688  
 

Founder Securities Co. Ltd., Class A

  

Capital Markets

    1,200          1,219  
 

Foxconn Industrial Internet Co. Ltd., Class A

  

Electronic Equipment, Instruments & Components

    3,600          9,734  
 

Fujian Funeng Co. Ltd., Class A

  

Independent Power Producers & Energy Traders

    620          725  
 

Fujian Sunner Development Co. Ltd., Class A

  

Food Products

    400          1,054  
a,c  

Full Truck Alliance Co. Ltd., ADR

   Ground Transportation     2,694          18,966  
 

Fuyao Glass Industry Group Co. Ltd., Class A

  

Automobile Components

    600          3,040  
b  

Fuyao Glass Industry Group Co. Ltd., Class H

   Automobile Components     2,400          11,001  
 

Ganfeng Lithium Group Co. Ltd., Class A

  

Chemicals

    500          3,061  
b  

Ganfeng Lithium Group Co. Ltd., Class H

   Chemicals     1,600          6,568  
a  

GCL System Integration Technology Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     1,200          473  
 

GCL Technology Holdings Ltd.

  

Semiconductors & Semiconductor Equipment

    84,000          15,659  
 

GD Power Development Co. Ltd., Class A

  

Independent Power Producers & Energy Traders

    4,800          2,424  
a,c  

GDS Holdings Ltd., Class A

   IT Services     4,000          5,516  
 

GEM Co. Ltd., Class A

  

Metals & Mining

    1,600          1,337  
 

Gemdale Corp., Class A

  

Real Estate Management & Development

    1,300          1,217  
a  

Genscript Biotech Corp.

   Life Sciences Tools & Services     4,089          10,781  
 

GF Securities Co. Ltd., Class A

  

Capital Markets

    1,900          3,826  
 

GF Securities Co. Ltd., Class H

  

Capital Markets

    4,600          6,179  
a,b  

Giant Biogene Holding Co. Ltd.

   Personal Care Products     1,200          5,202  
 

Giant Network Group Co. Ltd., Class A

  

Entertainment

    600          1,066  
 

GigaDevice Semiconductor, Inc., Class A

  

Semiconductors & Semiconductor Equipment

    200          2,707  
 

Ginlong Technologies Co. Ltd., Class A

  

Electrical Equipment

    150          1,616  
 

Glarun Technology Co. Ltd., Class A

  

Communications Equipment

    400          824  
 

GoerTek, Inc., Class A

  

Electronic Equipment, Instruments & Components

    1,000          2,166  
 

Goldwind Science & Technology Co. Ltd., Class A

  

Electrical Equipment

    1,000          1,267  
 

Goldwind Science & Technology Co. Ltd., Class H

  

Electrical Equipment

    3,200          1,614  
a  

Gotion High-tech Co. Ltd., Class A

   Electrical Equipment     600          1,911  
a  

Grandjoy Holdings Group Co. Ltd., Class A

   Real Estate Management & Development     1,200          604  
 

Great Wall Motor Co. Ltd., Class A

  

Automobiles

    800          2,819  
 

Great Wall Motor Co. Ltd., Class H

  

Automobiles

    9,500          11,329  
 

Gree Electric Appliances, Inc. of Zhuhai, Class A

  

Household Durables

    900          4,484  
 

Greentown China Holdings Ltd.

  

Real Estate Management & Development

    3,500          3,633  
 

GRG Banking Equipment Co. Ltd., Class A

  

Technology Hardware, Storage & Peripherals

    600          996  

 

           
franklintempleton.com  

Semiannual Report

             119


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

China (continued)

         
 

Guangdong Baolihua New Energy Stock Co. Ltd., Class A

  

Independent Power Producers & Energy Traders

    1,000        $ 740  
a  

Guangdong Electric Power Development Co. Ltd., Class A

   Independent Power Producers & Energy Traders     1,000          819  
a  

Guangdong Electric Power Development Co. Ltd., Class B

   Independent Power Producers & Energy Traders     3,600          1,039  
 

Guangdong Haid Group Co. Ltd., Class A

  

Food Products

    500          3,105  
a  

Guangdong HEC Technology Holding Co. Ltd., Class A

   Metals & Mining     600          547  
 

Guangdong Xinbao Electrical Appliances Holdings Co. Ltd., Class A

  

Household Durables

    400          968  
 

Guanghui Energy Co. Ltd., Class A

  

Oil, Gas & Consumable Fuels

    1,800          1,888  
a  

Guangshen Railway Co. Ltd., Class A

   Ground Transportation     1,800          714  
a  

Guangshen Railway Co. Ltd., Class H

   Ground Transportation     6,000          1,325  
 

Guangxi Guiguan Electric Power Co. Ltd., Class A

  

Independent Power Producers & Energy Traders

    1,000          769  
 

Guangxi Liugong Machinery Co. Ltd., Class A

  

Machinery

    600          591  
 

Guangzhou Automobile Group Co. Ltd., Class A

  

Automobiles

    1,000          1,374  
 

Guangzhou Automobile Group Co. Ltd., Class H

  

Automobiles

    14,000          6,918  
 

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A

  

Health Care Providers & Services

    400          1,725  
 

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H

  

Health Care Providers & Services

    1,000          2,879  
 

Guangzhou Haige Communications Group, Inc. Co., Class A

  

Communications Equipment

    600          928  
 

Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A

  

Health Care Providers & Services

    200          1,712  
 

Guangzhou Tinci Materials Technology Co. Ltd., Class A

  

Chemicals

    620          2,300  
 

Guangzhou Yuexiu Capital Holdings Group Co. Ltd., Class A

  

Capital Markets

    380          349  
 

Guangzhou Zhujiang Brewery Co. Ltd., Class A

  

Beverages

    400          478  
 

Guizhou Panjiang Refined Coal Co. Ltd., Class A

  

Oil, Gas & Consumable Fuels

    600          508  
 

Guizhou Xinbang Pharmaceutical Co. Ltd., Class A

  

Pharmaceuticals

    600          395  
a  

Guolian Securities Co. Ltd., Class A

   Capital Markets     600          873  
 

Guosen Securities Co. Ltd., Class A

  

Capital Markets

    1,400          1,770  
a  

Guosheng Financial Holding, Inc., Class A

   Capital Markets     700          904  
 

Guotai Junan Securities Co. Ltd., Class A

  

Capital Markets

    2,200          4,390  
b  

Guotai Junan Securities Co. Ltd., Class H

   Capital Markets     3,200          3,575  
 

Guoyuan Securities Co. Ltd., Class A

  

Capital Markets

    1,420          1,319  
a,c  

H World Group Ltd., ADR

   Hotels, Restaurants & Leisure     856          33,752  
b,c  

Haidilao International Holding Ltd.

   Hotels, Restaurants & Leisure     6,200          16,624  
 

Haier Smart Home Co. Ltd., Class A

  

Household Durables

    1,800          5,831  
 

Haier Smart Home Co. Ltd., Class H

  

Household Durables

    9,600          30,215  
a  

Hainan Airlines Holding Co. Ltd., Class A

   Passenger Airlines     6,000          1,219  
a  

Hainan Airport Infrastructure Co. Ltd., Class A

   Real Estate Management & Development     1,800          981  
 

Haitian International Holdings Ltd.

  

Machinery

    2,000          4,239  
 

Haitong Securities Co. Ltd., Class A

  

Capital Markets

    2,800          3,824  
 

Haitong Securities Co. Ltd., Class H

  

Capital Markets

    14,400          8,642  
 

Hang Zhou Great Star Industrial Co. Ltd., Class A

  

Household Durables

    400          1,070  
 

Hangzhou Binjiang Real Estate Group Co. Ltd., Class A

  

Real Estate Management & Development

    900          1,185  
 

Hangzhou First Applied Material Co. Ltd., Class A

  

Semiconductors & Semiconductor Equipment

    253          992  
 

Hangzhou Robam Appliances Co. Ltd., Class A

  

Household Durables

    600          2,219  

 

           
120             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

China (continued)

         
 

Hangzhou Silan Microelectronics Co. Ltd., Class A

  

Semiconductors & Semiconductor Equipment

    600        $ 2,006  
 

Hangzhou Tigermed Consulting Co. Ltd., Class A

  

Life Sciences Tools & Services

    200          1,828  
b  

Hangzhou Tigermed Consulting Co. Ltd., Class H

   Life Sciences Tools & Services     600          3,149  
 

Han’s Laser Technology Industry Group Co. Ltd., Class A

  

Machinery

    600          1,901  
b  

Hansoh Pharmaceutical Group Co. Ltd.

   Pharmaceuticals     3,000          4,083  
 

Haohua Chemical Science & Technology Co. Ltd., Class A

  

Chemicals

    200          906  
 

Heilongjiang Agriculture Co. Ltd., Class A

  

Food Products

    600          1,084  
 

Henan Shenhuo Coal & Power Co. Ltd., Class A

  

Metals & Mining

    600          1,407  
 

Henan Shuanghui Investment & Development Co. Ltd., Class A

  

Food Products

    900          3,260  
 

Hengan International Group Co. Ltd.

  

Personal Care Products

    2,700          8,601  
 

Hengdian Group DMEGC Magnetics Co. Ltd., Class A

  

Electronic Equipment, Instruments & Components

    600          1,346  
a  

Hengli Petrochemical Co. Ltd., Class A

   Chemicals     1,060          2,095  
 

Hengtong Optic-electric Co. Ltd., Class A

  

Communications Equipment

    600          1,163  
a  

Hengyi Petrochemical Co. Ltd., Class A

   Chemicals     1,000          1,009  
 

Hesteel Co. Ltd., Class A

  

Metals & Mining

    4,000          1,246  
 

Hisense Home Appliances Group Co. Ltd., Class H

  

Household Durables

    2,000          5,120  
 

Hithink RoyalFlush Information Network Co. Ltd., Class A

  

Capital Markets

    200          4,103  
a  

Holitech Technology Co. Ltd., Class A

   Electronic Equipment, Instruments & Components     1,200          576  
a  

Hopson Development Holdings Ltd.

   Real Estate Management & Development     4,318          2,608  
 

Hoshine Silicon Industry Co. Ltd., Class A

  

Chemicals

    200          1,658  
 

Hoyuan Green Energy Co. Ltd., Class A

  

Semiconductors & Semiconductor Equipment

    195          1,121  
a,b  

Hua Hong Semiconductor Ltd.

   Semiconductors & Semiconductor Equipment     2,000          5,066  
 

Huadian Power International Corp. Ltd., Class A

  

Independent Power Producers & Energy Traders

    2,400          1,696  
 

Huadian Power International Corp. Ltd., Class H

  

Independent Power Producers & Energy Traders

    6,000          2,482  
 

Huadong Medicine Co. Ltd., Class A

  

Health Care Providers & Services

    600          3,479  
 

Huafon Chemical Co. Ltd., Class A

  

Chemicals

    1,200          1,164  
 

Huagong Tech Co. Ltd., Class A

  

Electronic Equipment, Instruments & Components

    300          1,386  
 

Huaibei Mining Holdings Co. Ltd., Class A

  

Metals & Mining

    600          1,149  
 

Hualan Biological Engineering, Inc., Class A

  

Biotechnology

    600          1,828  
 

Huaneng Lancang River Hydropower, Inc., Class A

  

Independent Power Producers & Energy Traders

    1,800          1,833  
a  

Huaneng Power International, Inc., Class A

   Independent Power Producers & Energy Traders     2,000          2,160  
a  

Huaneng Power International, Inc., Class H

   Independent Power Producers & Energy Traders     18,000          8,734  
 

Huatai Securities Co. Ltd., Class A

  

Capital Markets

    2,200          4,774  
b  

Huatai Securities Co. Ltd., Class H

   Capital Markets     5,600          7,150  
 

Huaxi Securities Co. Ltd., Class A

  

Capital Markets

    600          685  
 

Huaxia Bank Co. Ltd., Class A

  

Banks

    4,800          3,768  
 

Huaxin Cement Co. Ltd., Class A

  

Construction Materials

    400          822  
 

Huaxin Cement Co. Ltd., Class H

  

Construction Materials

    1,200          1,230  
 

Huayu Automotive Systems Co. Ltd., Class A

  

Automobile Components

    1,000          2,576  
 

Hubei Biocause Pharmaceutical Co. Ltd., Class A

  

Insurance

    600          257  
 

Hubei Energy Group Co. Ltd., Class A

  

Independent Power Producers & Energy Traders

    1,800          1,072  
 

Hubei Xingfa Chemicals Group Co. Ltd., Class A

  

Chemicals

    400          1,085  
 

Huizhou Desay Sv Automotive Co. Ltd., Class A

  

Automobile Components

    200          3,943  
 

Humanwell Healthcare Group Co. Ltd., Class A

  

Pharmaceuticals

    500          1,660  
 

Hunan Gold Corp. Ltd., Class A

  

Metals & Mining

    400          669  
 

Hunan Valin Steel Co. Ltd., Class A

  

Metals & Mining

    2,200          1,806  
 

Hundsun Technologies, Inc., Class A

  

Software

    576          2,565  
a  

HUTCHMED China Ltd.

   Pharmaceuticals     2,000          6,806  
b,c  

Hygeia Healthcare Holdings Co. Ltd., Class C

   Health Care Providers & Services     1,400          7,847  

 

           
franklintempleton.com  

Semiannual Report

             121


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

China (continued)

         
a  

Hytera Communications Corp. Ltd., Class A

   Communications Equipment     400        $ 338  
 

IEIT Systems Co. Ltd., Class A

  

Technology Hardware, Storage & Peripherals

    400          2,065  
 

Iflytek Co. Ltd., Class A

  

Software

    700          4,867  
 

Imeik Technology Development Co. Ltd., Class A

  

Biotechnology

    100          5,357  
 

Industrial & Commercial Bank of China Ltd., Class A

  

Banks

    21,600          13,875  
 

Industrial & Commercial Bank of China Ltd., Class H

  

Banks

    318,000          153,075  
 

Industrial Bank Co. Ltd., Class A

  

Banks

    6,000          13,415  
 

Industrial Securities Co. Ltd., Class A

  

Capital Markets

    2,840          2,503  
 

Inmyshow Digital Technology Group Co. Ltd., Class A

  

Media

    600          511  
a  

Inner Mongolia BaoTou Steel Union Co. Ltd., Class A

   Metals & Mining     11,400          2,691  
 

Inner Mongolia Dian Tou Energy Corp. Ltd., Class A

  

Oil, Gas & Consumable Fuels

    700          1,322  
 

Inner Mongolia ERDOS Resources Co. Ltd., Class B

  

Metals & Mining

    2,540          2,040  
 

Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A

  

Chemicals

    2,400          1,347  
 

Inner Mongolia Yili Industrial Group Co. Ltd., Class A

  

Food Products

    1,900          6,919  
a  

Inner Mongolia Yitai Coal Co. Ltd., Class B

   Oil, Gas & Consumable Fuels     4,200          5,876  
 

Inner Mongolia Yuan Xing Energy Co. Ltd., Class A

  

Chemicals

    1,200          1,164  
a,b  

Innovent Biologics, Inc., Class B

   Biotechnology     5,500          26,861  
 

Intco Medical Technology Co. Ltd., Class A

  

Health Care Equipment & Supplies

    180          552  
a,c  

iQIYI, Inc., ADR

   Entertainment     1,788          8,475  
 

JA Solar Technology Co. Ltd., Class A

  

Semiconductors & Semiconductor Equipment

    936          3,286  
 

Jafron Biomedical Co. Ltd., Class A

  

Health Care Equipment & Supplies

    200          618  
 

Jason Furniture Hangzhou Co. Ltd., Class A

  

Household Durables

    400          2,223  
 

JCET Group Co. Ltd., Class A

  

Semiconductors & Semiconductor Equipment

    600          2,512  
a,b,c  

JD Health International, Inc.

   Consumer Staples Distribution & Retail     4,200          21,773  
a,b,c  

JD Logistics, Inc.

   Air Freight & Logistics     7,000          8,893  
c  

JD.com, Inc., Class A

   Broadline Retail     9,300          136,677  
 

Jiangsu Eastern Shenghong Co. Ltd., Class A

  

Chemicals

    1,200          1,902  
 

Jiangsu Expressway Co. Ltd., Class A

  

Transportation Infrastructure

    400          570  
 

Jiangsu Expressway Co. Ltd., Class H

  

Transportation Infrastructure

    4,000          3,611  
 

Jiangsu Hengli Hydraulic Co. Ltd., Class A

  

Machinery

    496          4,350  
 

Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A

  

Pharmaceuticals

    1,832          11,300  
 

Jiangsu King’s Luck Brewery JSC Ltd., Class A

  

Beverages

    600          4,832  
 

Jiangsu Linyang Energy Co. Ltd., Class A

  

Electrical Equipment

    600          590  
 

Jiangsu Pacific Quartz Co. Ltd., Class A

  

Semiconductors & Semiconductor Equipment

    100          1,464  
 

Jiangsu Phoenix Publishing & Media Corp. Ltd., Class A

  

Media

    600          863  
 

Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A

  

Beverages

    600          10,656  
 

Jiangsu Yangnong Chemical Co. Ltd., Class A

  

Chemicals

    130          1,231  
 

Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A

  

Health Care Equipment & Supplies

    300          1,418  
 

Jiangsu Zhongtian Technology Co. Ltd., Class A

  

Electrical Equipment

    1,000          2,038  
 

Jiangxi Copper Co. Ltd., Class A

  

Metals & Mining

    600          1,586  
 

Jiangxi Copper Co. Ltd., Class H

  

Metals & Mining

    5,000          7,840  
a  

Jiangxi Special Electric Motor Co. Ltd., Class A

   Electrical Equipment     600          731  
 

Jilin Aodong Pharmaceutical Group Co. Ltd., Class A

  

Pharmaceuticals

    400          948  

 

           
122             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    China (continued)                         
a  

Jinke Smart Services Group Co. Ltd., Class H

     Real Estate Management & Development          1,200        $ 1,508  
 

Jinko Solar Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          1,200          1,664  
a,b,c  

Jinxin Fertility Group Ltd.

     Health Care Providers & Services          6,500          3,104  
b  

Jiumaojiu International Holdings Ltd.

     Hotels, Restaurants & Leisure          3,600          4,900  
 

Jizhong Energy Resources Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          1,000          925  
 

Joincare Pharmaceutical Group Industry Co. Ltd., Class A

     Pharmaceuticals          600          1,020  
 

Joinn Laboratories China Co. Ltd., Class A

     Life Sciences Tools & Services          196          641  
b  

Joinn Laboratories China Co. Ltd., Class H

     Life Sciences Tools & Services          688          1,221  
 

Jointown Pharmaceutical Group Co. Ltd., Class A

     Health Care Providers & Services          943          1,402  
a  

Jonjee Hi-Tech Industrial & Commercial Holding Co. Ltd., Class A

     Food Products          200          948  
 

Joyoung Co. Ltd., Class A

     Household Durables          400          781  
c  

JOYY, Inc., ADR

     Interactive Media & Services          132          5,031  
a  

Juneyao Airlines Co. Ltd., Class A

     Passenger Airlines          600          1,178  
 

Kaishan Group Co. Ltd., Class A

     Machinery          400          794  
a,c  

Kanzhun Ltd., ADR

     Interactive Media & Services          1,356          20,571  
c  

KE Holdings, Inc., ADR

     Real Estate Management & Development          2,616          40,600  
 

Keda Industrial Group Co. Ltd.

     Machinery          600          958  
 

Kerry Logistics Network Ltd.

     Air Freight & Logistics          1,500          1,341  
 

Kingboard Holdings Ltd.

     Electronic Equipment, Instruments & Components          3,000          6,734  
a  

Kingdee International Software Group Co. Ltd.

     Software          10,000          12,309  
 

Kingnet Network Co. Ltd., Class A

     Entertainment          600          1,038  
a  

Kingsoft Cloud Holdings Ltd.

     IT Services          8,000          2,646  
c  

Kingsoft Corp. Ltd.

     Entertainment          3,600          13,054  
a,b,c  

Kuaishou Technology, Class B

     Interactive Media & Services          10,500          84,262  
 

Kuang-Chi Technologies Co. Ltd., Class A

     Aerospace & Defense          600          1,189  
a  

Kunlun Tech Co. Ltd., Class A

     Entertainment          300          1,579  
 

Kweichow Moutai Co. Ltd., Class A

     Beverages          400          98,743  
 

Lao Feng Xiang Co. Ltd., Class B

     Textiles, Apparel & Luxury Goods          800          2,726  
 

Laobaixing Pharmacy Chain JSC, Class A

     Consumer Staples Distribution & Retail          130          456  
 

LB Group Co. Ltd., Class A

     Chemicals          800          2,017  
 

Lee & Man Paper Manufacturing Ltd.

     Paper & Forest Products          6,000          1,754  
b  

Legend Holdings Corp., Class H

     Technology Hardware, Storage & Peripherals          2,500          2,250  
 

Lenovo Group Ltd.

     Technology Hardware, Storage & Peripherals          31,000          31,943  
 

Lens Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          1,500          2,528  
a  

Leo Group Co. Ltd., Class A

     Media          1,800          561  
 

Lepu Medical Technology Beijing Co. Ltd., Class A

     Health Care Equipment & Supplies          600          1,353  
 

Leyard Optoelectronic Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          600          538  
a,c  

Li Auto, Inc., Class A

     Automobiles          4,300          75,932  
 

Li Ning Co. Ltd.

     Textiles, Apparel & Luxury Goods          9,000          37,865  
 

Liaoning Port Co. Ltd., Class A

     Transportation Infrastructure          5,800          1,250  
 

Lingyi iTech Guangdong Co., Class A

     Electronic Equipment, Instruments & Components          2,400          1,884  
 

Livzon Pharmaceutical Group, Inc., Class A

     Pharmaceuticals          200          1,014  
 

Livzon Pharmaceutical Group, Inc., Class H

     Pharmaceuticals          700          2,293  
b,c  

Longfor Group Holdings Ltd.

     Real Estate Management & Development          8,000          14,382  
 

LONGi Green Energy Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          2,100          7,863  
 

Longshine Technology Group Co. Ltd., Class A

     Software          400          1,057  
 

Luenmei Quantum Co. Ltd., Class A

     Water Utilities          600          501  
c  

Lufax Holding Ltd., ADR

     Consumer Finance          2,928          3,104  
 

Luxi Chemical Group Co. Ltd., Class A

     Chemicals          600          932  
 

Luxshare Precision Industry Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          2,000          8,186  
a,b  

Luye Pharma Group Ltd.

     Pharmaceuticals          8,000          3,585  
 

Luzhou Laojiao Co. Ltd., Class A

     Beverages          400          11,894  
 

Maanshan Iron & Steel Co. Ltd., Class A

     Metals & Mining          1,600          580  

 

           
franklintempleton.com  

Semiannual Report

             123


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Maanshan Iron & Steel Co. Ltd., Class H

     Metals & Mining          4,000        $ 659  
 

Mango Excellent Media Co. Ltd., Class A

     Entertainment          640          2,487  
 

Maxscend Microelectronics Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          160          2,563  
 

Meihua Holdings Group Co. Ltd., Class A

     Food Products          1,200          1,584  
a  

Meinian Onehealth Healthcare Holdings Co. Ltd., Class A

     Health Care Providers & Services          1,320          1,232  
a,c  

Meituan, Class B

     Hotels, Restaurants & Leisure          21,600          316,063  
 

Metallurgical Corp. of China Ltd., Class A

     Construction & Engineering          4,800          2,418  
 

Metallurgical Corp. of China Ltd., Class H

     Construction & Engineering          13,000          2,739  
a  

Microport Scientific Corp.

     Health Care Equipment & Supplies          3,600          5,442  
c  

Ming Yang Smart Energy Group Ltd., Class A

     Electrical Equipment          600          1,300  
a  

Ming Yuan Cloud Group Holdings Ltd.

     Software          2,000          876  
 

MINISO Group Holding Ltd., ADR

     Broadline Retail          358          9,272  
 

Minth Group Ltd.

     Automobile Components          3,000          7,718  
a  

MMG Ltd.

     Metals & Mining          12,000          3,677  
a  

MOG Digitech Holdings Ltd.

     Electronic Equipment, Instruments & Components          2,000          3,749  
 

Montage Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          420          2,865  
a  

Montnets Cloud Technology Group Co. Ltd., Class A

     Software          400          802  
 

Muyuan Foods Co. Ltd., Class A

     Food Products          1,596          8,300  
a  

NanJi E-Commerce Co. Ltd., Class A

     Media          600          294  
 

Nanjing Iron & Steel Co. Ltd., Class A

     Metals & Mining          2,200          1,117  
 

Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          420          732  
 

NARI Technology Co. Ltd., Class A

     Electrical Equipment          2,416          7,358  
a  

National Silicon Industry Group Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          402          1,091  
 

NAURA Technology Group Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          200          6,624  
a  

NavInfo Co. Ltd., Class A

     Software          600          834  
c  

NetEase, Inc.

     Entertainment          7,259          147,834  
 

New China Life Insurance Co. Ltd., Class A

     Insurance          600          3,033  
 

New China Life Insurance Co. Ltd., Class H

     Insurance          3,000          7,232  
a  

New Hope Liuhe Co. Ltd., Class A

     Food Products          1,200          1,812  
a,c  

New Oriental Education & Technology Group, Inc.

     Diversified Consumer Services          5,510          33,559  
a  

Newland Digital Technology Co. Ltd., Class A

     Software          400          1,046  
 

Nexteer Automotive Group Ltd.

     Automobile Components          3,000          1,636  
a  

Nine Dragons Paper Holdings Ltd.

     Paper & Forest Products          7,000          3,933  
 

Ninestar Corp., Class A

     Technology Hardware, Storage & Peripherals          600          2,130  
 

Ningbo Deye Technology Co. Ltd., Class A

     Machinery          272          2,891  
 

Ningbo Joyson Electronic Corp., Class A

     Automobile Components          600          1,434  
 

Ningbo Orient Wires & Cables Co. Ltd., Class A

     Electrical Equipment          200          1,093  
 

Ningbo Ronbay New Energy Technology Co. Ltd., Class A

     Electrical Equipment          125          720  
 

Ningbo Sanxing Medical Electric Co. Ltd., Class A

     Electrical Equipment          400          995  
 

Ningbo Shanshan Co. Ltd., Class A

     Chemicals          600          1,145  
 

Ningbo Tuopu Group Co. Ltd., Class A

     Automobile Components          300          3,052  
 

Ningbo Zhoushan Port Co. Ltd., Class A

     Transportation Infrastructure          2,100          994  
 

Ningxia Baofeng Energy Group Co. Ltd., Class A

     Chemicals          600          1,178  
a,c  

NIO, Inc., Class A

     Automobiles          4,800          43,790  
b  

Nongfu Spring Co. Ltd., Class H

     Beverages          7,200          41,370  
 

North Huajin Chemical Industries Co. Ltd., Class A

     Chemicals          400          323  
 

North Industries Group Red Arrow Co. Ltd., Class A

     Machinery          400          810  
 

Northeast Securities Co. Ltd., Class A

     Capital Markets          600          630  
a  

Offcn Education Technology Co. Ltd., Class A

     Diversified Consumer Services          600          309  

 

           
124             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Offshore Oil Engineering Co. Ltd., Class A

     Energy Equipment & Services          1,600        $ 1,423  
a  

OFILM Group Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          1,200          1,054  
 

Oppein Home Group, Inc., Class A

     Household Durables          100          1,316  
 

ORG Technology Co. Ltd., Class A

     Containers & Packaging          600          384  
 

Orient Securities Co. Ltd., Class A

     Capital Markets          2,172          2,856  
b  

Orient Securities Co. Ltd., Class H

     Capital Markets          3,200          1,614  
a  

Oriental Energy Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          600          824  
a  

Ourpalm Co. Ltd., Class A

     Entertainment          1,200          792  
 

Ovctek China, Inc., Class A

     Health Care Equipment & Supplies          200          705  
a  

Pangang Group Vanadium Titanium & Resources Co. Ltd., Class A

     Metals & Mining          2,400          1,212  
a,c  

PDD Holdings, Inc., ADR

     Broadline Retail          2,447          239,977  
 

People.cn Co. Ltd., Class A

     Media          300          1,579  
 

People’s Insurance Co. Group of China Ltd., Class A

     Insurance          3,000          2,429  
 

People’s Insurance Co. Group of China Ltd., Class H

     Insurance          32,000          11,481  
 

Perfect World Co. Ltd., Class A

     Entertainment          400          725  
 

PetroChina Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          7,300          7,996  
 

PetroChina Co. Ltd., Class H

     Oil, Gas & Consumable Fuels          84,000          63,280  
 

Pharmaron Beijing Co. Ltd., Class A

     Life Sciences Tools & Services          225          960  
b  

Pharmaron Beijing Co. Ltd., Class H

     Life Sciences Tools & Services          1,300          3,094  
 

PICC Property & Casualty Co. Ltd., Class H

     Insurance          24,000          30,828  
 

Ping An Bank Co. Ltd., Class A

     Banks          5,400          8,301  
a,b  

Ping An Healthcare & Technology Co. Ltd.

     Consumer Staples Distribution & Retail          2,400          5,602  
 

Ping An Insurance Group Co. of China Ltd., Class A

     Insurance          3,100          20,551  
c  

Ping An Insurance Group Co. of China Ltd., Class H

     Insurance          25,200          144,311  
 

Pingdingshan Tianan Coal Mining Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          700          991  
 

Poly Developments & Holdings Group Co. Ltd., Class A

     Real Estate Management & Development          3,600          6,295  
 

Poly Property Services Co. Ltd., Class H

     Real Estate Management & Development          600          2,425  
b  

Pop Mart International Group Ltd.

     Specialty Retail          2,800          8,276  
 

Postal Savings Bank of China Co. Ltd., Class A

     Banks          6,600          4,502  
b  

Postal Savings Bank of China Co. Ltd., Class H

     Banks          38,000          19,214  
 

Power Construction Corp. of China Ltd., Class A

     Construction & Engineering          4,800          3,525  
c  

Qifu Technology, Inc., ADR

     Consumer Finance          456          7,004  
 

Qingdao Port International Co. Ltd., Class A

     Transportation Infrastructure          400          349  
 

Qingdao TGOOD Electric Co. Ltd., Class A

     Electrical Equipment          400          1,003  
a  

Qinghai Salt Lake Industry Co. Ltd., Class A

     Chemicals          1,600          3,768  
 

Raytron Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          81          530  
b  

Red Star Macalline Group Corp. Ltd., Class H

     Real Estate Management & Development          3,200          1,066  
a,b  

Remegen Co. Ltd., Class H

     Biotechnology          500          2,573  
a  

RiseSun Real Estate Development Co. Ltd., Class A

     Real Estate Management & Development          1,200          336  
a,c  

RLX Technology, Inc., ADR

     Tobacco          3,396          5,128  
 

Rongsheng Petrochemical Co. Ltd., Class A

     Chemicals          750          1,226  
 

SAIC Motor Corp. Ltd., Class A

     Automobiles          2,400          4,875  
 

Sailun Group Co. Ltd., Class A

     Automobile Components          1,000          1,731  
 

Sanan Optoelectronics Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          600          1,270  
 

Sansteel Minguang Co. Ltd. Fujian, Class A

     Metals & Mining          600          399  
 

Sany Heavy Equipment International Holdings Co. Ltd.

     Machinery          3,000          4,742  
 

Sany Heavy Industry Co. Ltd., Class A

     Machinery          2,400          5,234  
 

Satellite Chemical Co. Ltd., Class A

     Chemicals          1,013          2,131  

 

           
franklintempleton.com  

Semiannual Report

             125


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

SDIC Capital Co. Ltd., Class A

     Capital Markets          1,800        $ 1,702  
 

SDIC Power Holdings Co. Ltd., Class A

     Independent Power Producers & Energy Traders          1,200          1,939  
 

Sealand Securities Co. Ltd., Class A

     Capital Markets          1,280          655  
a  

Seazen Group Ltd.

     Real Estate Management & Development          12,000          2,191  
a  

Seazen Holdings Co. Ltd., Class A

     Real Estate Management & Development          700          1,273  
a,b,c  

SenseTime Group, Inc., Class B

     Software          63,000          11,503  
a  

Seres Group Co. Ltd., Class A

     Automobiles          300          2,294  
 

SF Holding Co. Ltd., Class A

     Air Freight & Logistics          1,400          7,840  
 

SG Micro Corp., Class A

     Semiconductors & Semiconductor Equipment          195          2,081  
 

Shaanxi Coal Industry Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          3,000          7,601  
 

Shaanxi International Trust Co. Ltd., Class A

     Capital Markets          1,600          668  
 

Shan Xi Hua Yang Group New Energy Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          950          1,098  
a  

Shandong Chenming Paper Holdings Ltd., Class A

     Paper & Forest Products          600          377  
a  

Shandong Chenming Paper Holdings Ltd., Class B

     Paper & Forest Products          3,000          663  
a  

Shandong Chenming Paper Holdings Ltd., Class H

     Paper & Forest Products          1,000          294  
a  

Shandong Denghai Seeds Co. Ltd., Class A

     Food Products          400          781  
 

Shandong Gold Mining Co. Ltd., Class A

     Metals & Mining          1,200          4,136  
b  

Shandong Gold Mining Co. Ltd., Class H

     Metals & Mining          3,000          5,677  
 

Shandong Himile Mechanical Science & Technology Co. Ltd., Class A

     Machinery          200          966  
 

Shandong Hi-speed Co. Ltd., Class A

     Transportation Infrastructure          1,000          983  
 

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

     Chemicals          600          2,644  
a  

Shandong Humon Smelting Co. Ltd., Class A

     Metals & Mining          400          665  
 

Shandong Linglong Tyre Co. Ltd., Class A

     Automobile Components          200          558  
 

Shandong Nanshan Aluminum Co. Ltd., Class A

     Metals & Mining          3,600          1,552  
 

Shandong Pharmaceutical Glass Co. Ltd., Class A

     Health Care Equipment & Supplies          200          765  
 

Shandong Sun Paper Industry JSC Ltd., Class A

     Paper & Forest Products          600          1,010  
 

Shandong Weigao Group Medical Polymer Co. Ltd., Class H

     Health Care Equipment & Supplies          9,400          8,258  
 

Shanghai Aiko Solar Energy Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          600          1,837  
 

Shanghai Bailian Group Co. Ltd., Class B

     Consumer Staples Distribution & Retail          1,200          688  
 

Shanghai Bairun Investment Holding Group Co. Ltd., Class A

     Beverages          292          1,155  
 

Shanghai Baosight Software Co. Ltd., Class A

     Software          360          2,232  
 

Shanghai Baosight Software Co. Ltd., Class B

     Software          2,434          5,124  
 

Shanghai Construction Group Co. Ltd., Class A

     Construction & Engineering          2,200          830  
 

Shanghai Dazhong Public Utilities Group Co. Ltd., Class A

     Gas Utilities          600          269  
a  

Shanghai Electric Group Co. Ltd., Class A

     Electrical Equipment          2,400          1,542  
a  

Shanghai Electric Group Co. Ltd., Class H

     Electrical Equipment          12,000          2,804  
 

Shanghai Electric Power Co. Ltd., Class A

     Independent Power Producers & Energy Traders          1,000          1,217  
 

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A

     Pharmaceuticals          600          2,355  
 

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H

     Pharmaceuticals          2,000          4,699  
 

Shanghai Fudan Microelectronics Group Co. Ltd., Class H

     Semiconductors & Semiconductor Equipment          1,000          2,145  
 

Shanghai Huayi Group Co. Ltd., Class B

     Chemicals          600          241  
a  

Shanghai International Airport Co. Ltd., Class A

     Transportation Infrastructure          700          3,640  
 

Shanghai International Port Group Co. Ltd., Class A

     Transportation Infrastructure          3,000          2,121  

 

           
126             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Shanghai Jinjiang International Hotels Co. Ltd., Class A

     Hotels, Restaurants & Leisure          300        $ 1,548  
 

Shanghai Jinjiang International Hotels Co. Ltd., Class B

     Hotels, Restaurants & Leisure          600          988  
 

Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class B

     Real Estate Management & Development          1,200          1,068  
a  

Shanghai Junshi Biosciences Co. Ltd., Class A

     Biotechnology          210          1,110  
a,b  

Shanghai Junshi Biosciences Co. Ltd., Class H

     Biotechnology          800          1,786  
 

Shanghai Lingang Holdings Corp. Ltd., Class A

     Real Estate Management & Development          620          968  
 

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class A

     Real Estate Management & Development          600          789  
 

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B

     Real Estate Management & Development          4,600          1,868  
 

Shanghai Mechanical & Electrical Industry Co. Ltd., Class B

     Machinery          1,200          1,205  
 

Shanghai Moons’ Electric Co. Ltd., Class A

     Electrical Equipment          200          1,891  
 

Shanghai Pharmaceuticals Holding Co. Ltd., Class A

     Health Care Providers & Services          900          2,233  
 

Shanghai Pharmaceuticals Holding Co. Ltd., Class H

     Health Care Providers & Services          3,400          5,305  
 

Shanghai Pudong Development Bank Co. Ltd., Class A

     Banks          8,600          8,381  
 

Shanghai Putailai New Energy Technology Co. Ltd., Class A

     Chemicals          583          2,344  
 

Shanghai RAAS Blood Products Co. Ltd., Class A

     Biotechnology          2,100          2,006  
 

Shanghai Rural Commercial Bank Co. Ltd., Class A

     Banks          1,200          995  
 

Shanghai Stonehill Technology Co. Ltd., Class A

     Software          1,000          406  
 

Shanghai Tunnel Engineering Co. Ltd., Class A

     Construction & Engineering          1,200          965  
 

Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., Class B

     Trading Companies & Distributors          1,200          875  
 

Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A

     Specialty Retail          1,200          1,225  
 

Shanghai Zhangjiang High-Tech Park Development Co. Ltd., Class A

     Real Estate Management & Development          600          1,935  
a  

Shanghai Zhenhua Heavy Industries Co. Ltd., Class B

     Machinery          4,200          903  
a  

Shangri-La Asia Ltd.

     Hotels, Restaurants & Leisure          4,000          2,738  
 

Shanxi Coking Coal Energy Group Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          1,680          2,320  
 

Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          1,000          2,606  
a  

Shanxi Meijin Energy Co. Ltd., Class A

     Metals & Mining          1,200          1,156  
 

Shanxi Securities Co. Ltd., Class A

     Capital Markets          1,220          963  
 

Shanxi Taigang Stainless Steel Co. Ltd., Class A

     Metals & Mining          1,800          998  
 

Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A

     Beverages          300          9,862  
a  

Shanying International Holding Co. Ltd., Class A

     Paper & Forest Products          1,200          354  
 

Shenghe Resources Holding Co. Ltd., Class A

     Metals & Mining          600          895  
 

Shengyi Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          600          1,265  
 

Shenwan Hongyuan Group Co. Ltd., Class A

     Capital Markets          6,600          3,922  
b  

Shenwan Hongyuan Group Co. Ltd., Class H

     Capital Markets          8,000          1,512  
 

Shenzhen Agricultural Products Group Co. Ltd., Class A

     Consumer Staples Distribution & Retail          400          378  
a  

Shenzhen Airport Co. Ltd., Class A

     Transportation Infrastructure          600          560  

 

           
franklintempleton.com  

Semiannual Report

             127


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Shenzhen Capchem Technology Co. Ltd., Class A

     Chemicals          260        $ 1,564  
 

Shenzhen Dynanonic Co. Ltd., Class A

     Chemicals          80          841  
 

Shenzhen Energy Group Co. Ltd., Class A

     Independent Power Producers & Energy Traders          1,680          1,471  
a  

Shenzhen Everwin Precision Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          460          653  
 

Shenzhen Expressway Corp. Ltd., Class H

     Transportation Infrastructure          2,000          1,634  
 

Shenzhen Gas Corp. Ltd., Class A

     Gas Utilities          1,000          942  
b  

Shenzhen Hepalink Pharmaceutical Group Co. Ltd., Class H

     Pharmaceuticals          500          260  
 

Shenzhen Inovance Technology Co. Ltd., Class A

     Machinery          600          5,476  
 

Shenzhen International Holdings Ltd.

     Transportation Infrastructure          6,000          3,700  
 

Shenzhen Investment Ltd.

     Real Estate Management & Development          10,000          1,596  
 

Shenzhen Kaifa Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          600          1,417  
a  

Shenzhen Kangtai Biological Products Co. Ltd., Class A

     Biotechnology          280          1,125  
 

Shenzhen Kingdom Sci-Tech Co. Ltd., Class A

     Software          400          696  
 

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A

     Health Care Equipment & Supplies          400          14,813  
 

Shenzhen MTC Co. Ltd., Class A

     Household Durables          1,800          1,238  
a  

Shenzhen Overseas Chinese Town Co. Ltd., Class A

     Real Estate Management & Development          2,400          1,393  
 

Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A

     Pharmaceuticals          300          1,221  
 

Shenzhen SC New Energy Technology Corp., Class A

     Semiconductors & Semiconductor Equipment          100          1,042  
 

Shenzhen SED Industry Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          600          1,843  
 

Shenzhen Sunway Communication Co. Ltd., Class A

     Communications Equipment          400          1,085  
 

Shenzhen Transsion Holdings Co. Ltd., Class A

     Technology Hardware, Storage & Peripherals          156          3,121  
 

Shenzhen Yan Tian Port Holding Co. Ltd., Class A

     Transportation Infrastructure          600          414  
 

Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A

     Metals & Mining          1,000          705  
 

Shenzhou International Group Holdings Ltd.

     Textiles, Apparel & Luxury Goods          3,100          29,686  
a  

Shijiazhuang Changshan BeiMing Technology Co. Ltd., Class A

     Textiles, Apparel & Luxury Goods          400          476  
 

Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          520          1,674  
 

Shui On Land Ltd.

     Real Estate Management & Development          15,500          1,405  
a  

Siasun Robot & Automation Co. Ltd., Class A

     Machinery          400          683  
 

Sichuan Chuantou Energy Co. Ltd., Class A

     Independent Power Producers & Energy Traders          1,200          2,438  
 

Sichuan Hebang Biotechnology Co. Ltd., Class A

     Chemicals          3,000          964  
 

Sichuan Kelun Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          400          1,600  
a  

Sichuan New Energy Power Co. Ltd.

     Trading Companies & Distributors          400          653  
 

Sichuan Road & Bridge Group Co. Ltd., Class A

     Construction & Engineering          2,220          2,642  
 

Sichuan Swellfun Co. Ltd., Class A

     Beverages          200          1,656  
 

Sichuan Yahua Industrial Group Co. Ltd., Class A

     Chemicals          400          822  
 

Sieyuan Electric Co. Ltd., Class A

     Electrical Equipment          200          1,419  
 

Silergy Corp.

     Semiconductors & Semiconductor Equipment          1,380          13,017  
 

Sinoma International Engineering Co., Class A

     Construction & Engineering          600          929  
 

Sinoma Science & Technology Co. Ltd., Class A

     Chemicals          600          1,693  
 

Sinopec Engineering Group Co. Ltd., Class H

     Construction & Engineering          6,500          2,930  
a  

Sinopec Oilfield Service Corp., Class A

     Energy Equipment & Services          1,000          292  
a  

Sinopec Oilfield Service Corp., Class H

     Energy Equipment & Services          12,000          950  
a  

Sinopec Shanghai Petrochemical Co. Ltd., Class A

     Chemicals          1,200          511  

 

           
128             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    China (continued)                         
a  

Sinopec Shanghai Petrochemical Co. Ltd., Class H

     Chemicals          16,000        $ 2,268  
 

Sinopharm Group Co. Ltd., Class H

     Health Care Providers & Services          5,200          15,072  
 

Sinotrans Ltd., Class A

     Air Freight & Logistics          1,600          1,091  
 

Sinotrans Ltd., Class H

     Air Freight & Logistics          8,000          2,921  
 

Sinotruk Hong Kong Ltd.

     Machinery          3,000          5,776  
 

SITC International Holdings Co. Ltd.

     Marine Transportation          5,000          8,402  
a  

Skshu Paint Co. Ltd., Class A

     Chemicals          140          1,317  
b  

Smoore International Holdings Ltd.

     Tobacco          7,500          6,809  
 

Songcheng Performance Development Co. Ltd., Class A

     Hotels, Restaurants & Leisure          1,000          1,677  
 

SooChow Securities Co. Ltd., Class A

     Capital Markets          1,686          1,951  
 

Southwest Securities Co. Ltd., Class A

     Capital Markets          2,400          1,357  
a  

Spring Airlines Co. Ltd., Class A

     Passenger Airlines          200          1,502  
 

StarPower Semiconductor Ltd., Class A

     Semiconductors & Semiconductor Equipment          100          2,466  
a  

STO Express Co. Ltd., Class A

     Air Freight & Logistics          400          576  
 

Sun Art Retail Group Ltd.

     Consumer Staples Distribution & Retail          8,000          1,696  
b  

Sunac Services Holdings Ltd.

     Real Estate Management & Development          4,000          1,262  
 

Sungrow Power Supply Co. Ltd., Class A

     Electrical Equipment          600          7,371  
 

Suning Universal Co. Ltd., Class A

     Real Estate Management & Development          1,200          464  
 

Sunny Optical Technology Group Co. Ltd.

     Electronic Equipment, Instruments & Components          2,700          18,858  
 

Sunresin New Materials Co. Ltd., Class A

     Chemicals          200          1,603  
 

Sunwoda Electronic Co. Ltd., Class A

     Electrical Equipment          600          1,392  
 

SUPCON Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          208          1,365  
 

Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          600          1,428  
 

Suzhou Gold Mantis Construction Decoration Co. Ltd., Class A

     Construction & Engineering          600          374  
 

Suzhou Maxwell Technologies Co. Ltd., Class A

     Electrical Equipment          200          3,476  
 

Suzhou TFC Optical Communication Co. Ltd., Class A

     Communications Equipment          100          1,304  
 

Taiji Computer Corp. Ltd., Class A

     IT Services          200          840  
a,c  

TAL Education Group, ADR

     Diversified Consumer Services          1,775          16,170  
 

Tangshan Jidong Cement Co. Ltd., Class A

     Construction Materials          1,000          1,035  
 

TangShan Port Group Co. Ltd., Class A

     Transportation Infrastructure          1,200          608  
 

Tangshan Sanyou Chemical Industries Co. Ltd., Class A

     Chemicals          600          488  
 

TBEA Co. Ltd., Class A

     Electrical Equipment          1,420          2,888  
a  

TCL Technology Group Corp., Class A

     Electronic Equipment, Instruments & Components          5,360          3,002  
 

TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          1,075          3,450  
c  

Tencent Holdings Ltd.

     Interactive Media & Services          25,200          985,238  
a,c  

Tencent Music Entertainment Group, ADR

     Entertainment          2,576          16,435  
 

Thunder Software Technology Co. Ltd., Class A

     Software          200          2,102  
 

Tian Di Science & Technology Co. Ltd., Class A

     Machinery          1,200          894  
 

Tianjin Chase Sun Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          1,000          630  
a  

Tianma Microelectronics Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          700          886  
 

Tianqi Lithium Corp., Class A

     Chemicals          400          3,016  
 

Tianqi Lithium Corp., Class H

     Chemicals          400          2,240  
 

Tianshan Aluminum Group Co. Ltd., Class A

     Metals & Mining          600          539  
 

Tianshui Huatian Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          1,000          1,233  
 

Tingyi Cayman Islands Holding Corp.

     Food Products          7,000          9,778  
a  

Titan Wind Energy Suzhou Co. Ltd., Class A

     Electrical Equipment          600          1,063  
a,c  

Tongcheng Travel Holdings Ltd.

     Hotels, Restaurants & Leisure          4,800          10,542  
 

TongFu Microelectronics Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          600          1,579  
a  

Tongkun Group Co. Ltd., Class A

     Chemicals          600          1,215  

 

           
franklintempleton.com  

Semiannual Report

             129


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Tongling Nonferrous Metals Group Co. Ltd., Class A

     Metals & Mining          3,400        $ 1,489  
 

Tongwei Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          1,300          5,756  
a  

Topchoice Medical Corp., Class A

     Health Care Providers & Services          100          1,211  
a  

Topsec Technologies Group, Inc., Class A

     Software          400          492  
b  

Topsports International Holdings Ltd.

     Specialty Retail          11,000          8,357  
 

Towngas Smart Energy Co. Ltd.

     Gas Utilities          5,000          2,203  
 

TravelSky Technology Ltd., Class H

     Hotels, Restaurants & Leisure          4,000          6,936  
 

Trina Solar Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          738          3,097  
a,c  

Trip.com Group Ltd.

     Hotels, Restaurants & Leisure          2,100          74,864  
 

Tsingtao Brewery Co. Ltd., Class A

     Beverages          200          2,401  
 

Tsingtao Brewery Co. Ltd., Class H

     Beverages          2,496          20,429  
a,c  

Tuya, Inc., ADR

     Software          958          1,485  
a  

Unigroup Guoxin Microelectronics Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          319          3,818  
 

Uni-President China Holdings Ltd.

     Food Products          5,000          3,511  
a  

Unisplendour Corp. Ltd., Class A

     Electronic Equipment, Instruments & Components          360          1,165  
 

Valiant Co. Ltd., Class A

     Chemicals          400          948  
a,c  

Vipshop Holdings Ltd., ADR

     Broadline Retail          1,242          19,884  
 

Walvax Biotechnology Co. Ltd., Class A

     Biotechnology          500          1,615  
a  

Wanda Film Holding Co. Ltd., Class A

     Entertainment          600          1,110  
 

Wangsu Science & Technology Co. Ltd., Class A

     IT Services          600          550  
 

Wanhua Chemical Group Co. Ltd., Class A

     Chemicals          900          10,910  
 

Want Want China Holdings Ltd.

     Food Products          18,000          11,744  
 

Wanxiang Qianchao Co. Ltd., Class A

     Automobile Components          1,200          856  
c  

Weibo Corp., ADR

     Interactive Media & Services          300          3,762  
 

Weichai Power Co. Ltd., Class A

     Machinery          1,800          3,096  
 

Weichai Power Co. Ltd., Class H

     Machinery          8,000          10,889  
 

Weifu High-Technology Group Co. Ltd., Class A

     Automobile Components          400          922  
 

Weifu High-Technology Group Co. Ltd., Class B

     Automobile Components          600          740  
 

Weihai Guangwei Composites Co. Ltd., Class A

     Chemicals          120          452  
 

Wens Foodstuffs Group Co. Ltd., Class A

     Food Products          600          1,431  
 

Western Mining Co. Ltd., Class A

     Metals & Mining          600          1,058  
 

Western Securities Co. Ltd., Class A

     Capital Markets          1,600          1,449  
 

Western Superconducting Technologies Co. Ltd., Class A

     Metals & Mining          120          754  
 

Will Semiconductor Co. Ltd. Shanghai, Class A

     Semiconductors & Semiconductor Equipment          300          3,832  
a  

Wingtech Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          300          1,797  
 

Winning Health Technology Group Co. Ltd., Class A

     Health Care Technology          600          600  
 

Wolong Electric Group Co. Ltd., Class A

     Electrical Equipment          400          660  
 

Wuchan Zhongda Group Co. Ltd., Class A

     Distributors          1,800          1,171  
 

Wuhan Guide Infrared Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          1,354          1,416  
 

Wuliangye Yibin Co. Ltd., Class A

     Beverages          1,200          25,710  
 

WUS Printed Circuit Kunshan Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          600          1,854  
 

WuXi AppTec Co. Ltd., Class A

     Life Sciences Tools & Services          800          9,463  
b  

WuXi AppTec Co. Ltd., Class H

     Life Sciences Tools & Services          1,400          16,759  
a,b  

Wuxi Biologics Cayman, Inc.

     Life Sciences Tools & Services          14,366          83,736  
 

XCMG Construction Machinery Co. Ltd., Class A

     Machinery          3,600          3,148  
 

Xiamen C & D, Inc., Class A

     Trading Companies & Distributors          1,000          1,362  
 

Xiamen Faratronic Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          100          1,330  
 

Xiamen ITG Group Corp. Ltd., Class A

     Trading Companies & Distributors          600          649  
 

Xiamen Tungsten Co. Ltd., Class A

     Metals & Mining          600          1,412  
 

Xiangcai Co. Ltd., Class A

     Real Estate Management & Development          600          645  
a,b,c  

Xiaomi Corp., Class B

     Technology Hardware, Storage & Peripherals          58,800          92,646  
 

Xinhua Winshare Publishing & Media Co. Ltd., Class H

     Media          2,000          1,576  

 

           
130             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Xinjiang Daqo New Energy Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          210        $ 1,165  
 

Xinjiang Tianshan Cement Co. Ltd., Class A

     Construction Materials          600          641  
  Xinjiang Zhongtai Chemical Co. Ltd., Class A      Chemicals          1,000          937  
  Xinxing Ductile Iron Pipes Co. Ltd., Class A      Metals & Mining          1,600          907  
  Xinyi Solar Holdings Ltd.      Semiconductors & Semiconductor Equipment          18,000          13,468  
a,c   XPeng, Inc., Class A      Automobiles          4,500          40,192  
  Xtep International Holdings Ltd.      Textiles, Apparel & Luxury Goods          4,500          4,171  
  Xuji Electric Co. Ltd., Class A      Electrical Equipment          400          1,065  
b   Yadea Group Holdings Ltd.      Automobiles          4,200          7,797  
a,d   Yango Group Co. Ltd., Class A      Real Estate Management & Development          2,100           
b   Yangtze Optical Fibre & Cable Joint Stock Co. Ltd., Class H      Communications Equipment          1,000          1,374  
  Yangzhou Yangjie Electronic Technology Co. Ltd., Class A      Semiconductors & Semiconductor Equipment          200          960  
  Yangzijiang Shipbuilding Holdings Ltd.      Machinery          10,800          13,135  
  Yankuang Energy Group Co. Ltd., Class A      Oil, Gas & Consumable Fuels          650          1,807  
  Yankuang Energy Group Co. Ltd., Class H      Oil, Gas & Consumable Fuels          9,000          17,007  
  Yantai Changyu Pioneer Wine Co. Ltd., Class B      Beverages          1,000          1,249  
  Yantai Eddie Precision Machinery Co. Ltd., Class A      Machinery          240          584  
  Yantai Jereh Oilfield Services Group Co. Ltd., Class A      Energy Equipment & Services          200          875  
  Yealink Network Technology Corp. Ltd., Class A      Communications Equipment          420          2,055  
a   Yifan Pharmaceutical Co. Ltd., Class A      Pharmaceuticals          400          753  
  Yifeng Pharmacy Chain Co. Ltd., Class A      Consumer Staples Distribution & Retail          264          1,271  
  Yihai International Holding Ltd.      Food Products          2,000          3,447  
  Yihai Kerry Arawana Holdings Co. Ltd., Class A      Food Products          600          2,831  
  Yintai Gold Co. Ltd., Class A      Metals & Mining          900          1,758  
  Yonfer Agricultural Technology Co. Ltd., Class A      Chemicals          400          586  
  YongXing Special Materials Technology Co. Ltd., Class A      Metals & Mining          130          810  
  Yonyou Network Technology Co. Ltd., Class A      Software          980          2,236  
  Youngor Group Co. Ltd., Class A      Real Estate Management & Development          1,600          1,561  
  YTO Express Group Co. Ltd., Class A      Air Freight & Logistics          800          1,650  
a   Yuan Longping High-tech Agriculture Co. Ltd., Class A      Food Products          400          824  
  Yuexiu Property Co. Ltd.      Real Estate Management & Development          6,000          6,918  
  Yum China Holdings, Inc.      Hotels, Restaurants & Leisure          1,635          92,231  
  Yunda Holding Co. Ltd., Class A      Air Freight & Logistics          400          541  
  Yunnan Aluminium Co. Ltd., Class A      Metals & Mining          1,000          2,073  
  Yunnan Baiyao Group Co. Ltd., Class A      Pharmaceuticals          500          3,658  
  Yunnan Copper Co. Ltd., Class A      Metals & Mining          600          969  
  Yunnan Energy New Material Co. Ltd., Class A      Chemicals          400          3,289  
  Yunnan Tin Co. Ltd., Class A      Metals & Mining          700          1,377  
  Yunnan Yuntianhua Co. Ltd., Class A      Chemicals          600          1,407  
a   Zai Lab Ltd.      Biotechnology          3,900          9,431  
  Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A      Pharmaceuticals          200          7,555  
  Zhaojin Mining Industry Co. Ltd., Class H      Metals & Mining          4,000          5,577  
  Zhefu Holding Group Co. Ltd., Class A      Electrical Equipment          1,800          959  
a   Zhejiang Century Huatong Group Co. Ltd., Class A      Entertainment          2,400          1,591  
  Zhejiang China Commodities City Group Co. Ltd., Class A      Real Estate Management & Development          1,800          2,233  
  Zhejiang Chint Electrics Co. Ltd., Class A      Electrical Equipment          300          959  
  Zhejiang Crystal-Optech Co. Ltd., Class A      Electronic Equipment, Instruments & Components          680          1,042  
  Zhejiang Dahua Technology Co. Ltd., Class A      Electronic Equipment, Instruments & Components          1,000          3,057  

 

           
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             131


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Zhejiang Expressway Co. Ltd., Class H

     Transportation Infrastructure          4,000        $ 2,983  
 

Zhejiang Hailiang Co. Ltd., Class A

     Metals & Mining          400          646  
 

Zhejiang Hisoar Pharmaceutical Co. Ltd., Class A .

     Pharmaceuticals          400          472  
 

Zhejiang Huace Film & Television Co. Ltd., Class A

     Entertainment          400          317  
 

Zhejiang Huahai Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          400          931  
 

Zhejiang Huayou Cobalt Co. Ltd., Class A

     Metals & Mining          500          2,574  
 

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          400          2,619  
 

Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          200          796  
 

Zhejiang Juhua Co. Ltd., Class A

     Chemicals          800          1,671  
a,b  

Zhejiang Leapmotor Technologies Ltd.

     Automobiles          600          2,666  
 

Zhejiang Medicine Co. Ltd., Class A

     Pharmaceuticals          400          613  
 

Zhejiang NHU Co. Ltd., Class A

     Pharmaceuticals          944          2,104  
 

Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A

     Machinery          600          2,446  
a  

Zhejiang Wanliyang Co. Ltd., Class A

     Machinery          400          473  
 

Zhejiang Weiming Environment Protection Co. Ltd., Class A

     Commercial Services & Supplies          120          292  
 

Zhejiang Weixing New Building Materials Co. Ltd., Class A

     Building Products          600          1,503  
 

Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          200          817  
 

Zhejiang Yongtai Technology Co. Ltd., Class A

     Chemicals          400          703  
a  

Zhejiang Zheneng Electric Power Co. Ltd., Class A

     Independent Power Producers & Energy Traders          1,800          1,050  
 

Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A

     Machinery          600          1,077  
 

Zheshang Securities Co. Ltd., Class A

     Capital Markets          400          553  
a,b  

ZhongAn Online P&C Insurance Co. Ltd., Class H

     Insurance          3,000          8,848  
 

Zhongji Innolight Co. Ltd., Class A

     Communications Equipment          200          3,179  
 

Zhongjin Gold Corp. Ltd., Class A

     Metals & Mining          600          901  
 

Zhongshan Public Utilities Group Co. Ltd., Class A

     Water Utilities          600          618  
 

Zhongsheng Group Holdings Ltd.

     Specialty Retail          2,500          7,039  
 

Zhongtai Securities Co. Ltd., Class A

     Capital Markets          700          682  
 

Zhuhai Huafa Properties Co. Ltd., Class A

     Real Estate Management & Development          600          789  
 

Zhuzhou CRRC Times Electric Co. Ltd., Class A .

     Machinery          144          786  
 

Zhuzhou CRRC Times Electric Co. Ltd., Class H .

     Machinery          2,200          7,613  
 

Zhuzhou Kibing Group Co. Ltd., Class A

     Building Products          600          675  
 

Zijin Mining Group Co. Ltd., Class A

     Metals & Mining          6,000          9,989  
 

Zijin Mining Group Co. Ltd., Class H

     Metals & Mining          24,000          36,712  
 

Zoomlion Heavy Industry Science & Technology Co. Ltd., Class A

     Machinery          2,400          2,256  
 

Zoomlion Heavy Industry Science & Technology

            
 

Co. Ltd., Class H

     Machinery          6,800          3,699  
 

ZTE Corp., Class A

     Communications Equipment          1,200          5,383  
 

ZTE Corp., Class H

     Communications Equipment          2,800          8,455  
              

 

 

 
                 8,042,283  
              

 

 

 
    Hong Kong 6.2%                         
 

AIA Group Ltd.

     Insurance          46,800          381,542  
a  

Alibaba Health Information Technology Ltd.., Class A

     Consumer Staples Distribution & Retail          24,000          14,954  
a  

Alibaba Pictures Group Ltd., Class A

     Entertainment          60,000          4,750  

 

           
132             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Hong Kong (continued)                         
 

ASMPT Ltd., Class A

     Semiconductors & Semiconductor Equipment          1,200        $ 10,741  
 

Bank of East Asia Ltd., Class A

     Banks          3,600          4,468  
 

Beijing Enterprises Water Group Ltd., Class A

     Water Utilities          16,000          3,493  
 

Bosideng International Holdings Ltd., Class A

     Textiles, Apparel & Luxury Goods          14,000          6,024  
 

Cafe de Coral Holdings Ltd., Class A

     Hotels, Restaurants & Leisure          2,000          2,163  
a  

Cathay Pacific Airways Ltd., Class A

     Passenger Airlines          4,000          4,106  
 

Champion REIT, Class A

     Office REITs          8,000          2,635  
 

China Everbright Environment Group Ltd., Class B

     Commercial Services & Supplies          14,000          4,826  
 

China Everbright Ltd., Class A

     Capital Markets          4,000          2,314  
 

China Gas Holdings Ltd., Class A

     Gas Utilities          12,000          11,323  
 

China Mengniu Dairy Co. Ltd., Class B

     Food Products          12,000          40,220  
 

China Power International Development Ltd., Class H

     Independent Power Producers & Energy Traders          20,000          7,278  
 

China Resources Beer Holdings Co. Ltd., Class A .

     Beverages          6,474          35,504  
 

China Resources Gas Group Ltd., Class A

     Gas Utilities          3,700          10,842  
 

China Resources Land Ltd., Class H

     Real Estate Management & Development          11,100          44,219  
 

China State Construction International Holdings

            
 

Ltd., Class A

     Construction & Engineering          8,000          8,417  
 

China Traditional Chinese Mledicine Holdings Co. Ltd

     Pharmaceuticals          10,000          4,660  
 

CK Asset Holdings Ltd

     Real Estate Management & Development          7,900          41,609  
 

CK Infrastructure Holdings Ltd., Class A

     Electric Utilities          2,400          11,354  
 

CLP Holdings Ltd

     Electric Utilities          6,600          48,835  
 

COSCO SHIPPING Ports Ltd., Class B

     Transportation Infrastructure          6,000          3,922  
 

Dah Sing Banking Group Ltd., Class A

     Banks          800          529  
 

Dah Sing Financial Holdings Ltd., Class H

     Banks          800          1,692  
 

DFI Retail Group Holdings Ltd., Class A

     Consumer Staples Distribution & Retail          1,300          3,458  
 

Far East Horizon Ltd.

     Financial Services          6,000          4,321  
 

Geely Automobile Holdings Ltd.

     Automobiles          22,000          25,956  
 

Guangdong Investment Ltd.

     Water Utilities          12,000          9,163  
 

Guotai Junan International Holdings Ltd.

     Capital Markets          13,000          1,013  
a  

Haitong International Securities Group Ltd.

     Capital Markets          16,200          1,469  
 

Hang Lung Group Ltd.

     Real Estate Management & Development          4,000          5,639  
 

Hang Lung Properties Ltd.

     Real Estate Management & Development          8,000          10,950  
 

Hang Seng Bank Ltd.

     Banks          3,000          37,328  
 

Henderson Land Development Co.. Ltd.

     Real Estate Management & Development          5,000          13,183  
 

Hong Kong & China Gas Co. Ltd.

     Gas Utilities          45,000          31,372  
 

Hong Kong Exchanges & Clearing Ltd.

     Capital Markets          5,100          190,537  
 

Hongkong Land Holdings Ltd.

     Real Estate Management & Development          4,200          14,994  
 

Huabao International Holdings Ltd.

     Chemicals          6,000          2,053  
 

Hutchison Port Holdings Trust

     Transportation Infrastructure          22,600          3,887  
 

Hutchison Telecommunications Hong Kong Holdings Ltd.

     Wireless Telecommunication Services          6,000          820  
 

Hysan Development Co. Ltd.

     Real Estate Management & Development          3,000          5,815  
 

Jardine Matheson Holdings Ltd.

     Industrial Conglomerates          800          37,136  
 

Johnson Electric Holdings Ltd.

     Automobile Components          1,000          1,231  
 

Kerry Properties Ltd.

     Real Estate Management & Development          2,000          3,402  
 

Kingboard Laminates Holdings Ltd.

     Electronic Equipment, Instruments & Components          4,000          2,829  
 

Kunlun Energy Co. Ltd.

     Gas Utilities          12,000          10,342  
 

Link REIT

     Retail REITs          10,200          50,011  
 

Man Wah Holdings Ltd.

     Household Durables          5,600          3,933  
a  

Melco International Development Ltd.

     Hotels, Restaurants & Leisure          3,000          2,406  
 

MTR Corp. Ltd.

     Ground Transportation          6,000          23,749  
 

New World Development Co. Ltd.

     Real Estate Management & Development          6,000          11,675  
 

NWS Holdings Ltd.

     Industrial Conglomerates          6,000          6,834  
 

Orient Overseas International Ltd.

     Marine Transportation          600          8,006  

 

           
franklintempleton.com  

Semiannual Report

             133


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Hong Kong (continued)                         
 

PCCW Ltd.

     Diversified Telecommunication Services          18,000        $ 8,205  
 

Power Assets Holdings Ltd.

     Electric Utilities          5,500          26,616  
 

Shanghai Industrial Holdings Ltd.

     Industrial Conglomerates          2,000          2,513  
 

Shougang Fushan Resources Group Ltd.

     Metals & Mining          8,000          2,717  
 

Sino Biopharmaceutical Ltd.

     Pharmaceuticals          40,000          14,454  
 

Sino Land Co. Ltd.

     Real Estate Management & Development          13,300          14,995  
 

Sun Hung Kai Properties Ltd.

     Real Estate0 Management & Development          6,000          64,199  
a  

Super Hi International Holding Ltd.

     Hotels, Restaurants & Leisure          520          1,027  
 

Swire Pacific Ltd., Class A

     Real Estate Management & Development          1,500          10,122  
 

Swire Pacific Ltd., Class B

     Real Estate Management & Development          2,500          2,732  
 

Swire Properties Ltd.

     Real Estate Management & Development          4,200          8,763  
 

Techtronic Industries Co. Ltd.

     Machinery          5,300          51,431  
 

United Energy Group Ltd.

     Oil, Gas & Consumable Fuels          32,000          4,699  
 

Vinda International Holdings Ltd.

     Household Products          1,000          2,403  
 

Vitasoy International Holdings Ltd.

     Food Products          3,000          3,631  
 

VTech Holdings Ltd.

     Communications Equipment          700          4,192  
 

b WH Group Ltd.

     Food Products          31,500          16,531  
 

Wharf Holdings Ltd.

     Real Estate Management & Development          3,286          8,240  
 

Wharf Real Estate Investment Co. Ltd.

     Real Estate Management & Development          6,000          23,175  
 

Xinyi Glass Holdings Ltd.

     Building Products          8,250          10,681  
 

Yue Yuen Industrial Holdings Ltd.

     Textiles, Apparel & Luxury Goods          3,000          3,447  
              

 

 

 
                 1,520,705  
              

 

 

 
    India 19.6%                         
 

3M India Ltd.

     Industrial Conglomerates          12          4,596  
 

Aarti Industries Ltd.

     Chemicals          798          4,722  
 

ABB India Ltd.

     Electrical Equipment          216          10,660  
 

ACC Ltd.

     Construction Materials          312          7,560  
a  

Adani Energy Solutions Ltd.

     Electric Utilities          1,338          13,055  
 

Adani Enterprises Ltd.

     Trading Companies & Distributors          1,422          41,336  
a  

Adani Green Energy Ltd.

     Independent Power Producers & Energy Traders          1,674          19,900  
 

Adani Ports & Special Economic Zone Ltd.

     Transportation Infrastructure          3,378          33,566  
a  

Adani Power Ltd.

     Independent Power Producers & Energy Traders          3,936          17,890  
 

Adani Total Gas Ltd.

     Gas Utilities          1,140          8,419  
a  

Adani Wilmar Ltd.

     Food Products          660          2,682  
a  

Aditya Birla Capital Ltd.

     Financial Services          2,058          4,460  
 

AIA Engineering Ltd.

     Machinery          156          6,599  
 

Alkem Laboratories Ltd.

     Pharmaceuticals          108          4,690  
 

Ambuja Cements Ltd.

     Co.nstruction Materials          2,928          14,978  
 

APL Apollo Tubes Ltd.

     Metals & Mining          702          13,737  
 

Apollo Hospitals Enterprise Ltd.

     Health Care Providers & Services          402          24,872  
 

Ashok Leyland Ltd.

     Machinery          5,826          12,418  
 

Asian Paints Ltd.

     Chemicals          1,830          69,661  
 

Astral Ltd.

     Building Products          480          11,054  
b  

AU Small Finance Bank Ltd.

     Banks          1,344          11,548  
 

Aurobindo Pharma Ltd.

     Pharmaceuticals          1,080          11,892  
a,b  

Avenue Supermarts Ltd.

     Consumer Staples Distribution & Retail          606          26,823  
 

Axis Bank Ltd.

     Banks          9,186          114,679  
 

Bajaj Auto Ltd.

     Automobiles          270          16,464  
 

Bajaj Finance Ltd.

     Consumer Finance          990          93,118  
 

Bajaj Finserv Ltd.

     Financial Services          1,530          28,378  
 

Bajaj Holdings & Investment Ltd.

     Financial Services          108          9,245  
 

Balkrishna Industries Ltd.

     Automobile Components          336          10,349  
b  

Bandhan Bank Ltd.

     Banks          3,210          9,726  
 

Bank of Baroda

     Banks          4,212          10,852  
 

Bank of India

     Banks          2,058          2,711  
 

Bata India Ltd.

     Textiles, Apparel & Luxury Goods          264          5,113  
 

Bayer CropScience Ltd.

     Chemicals          54          3,473  

 

           
134             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    India (continued)a Berger Paints India Ltd.    Chemicals        206        $1,414  
 

Berger Paints India Ltd.

     Chemicals          1,032          7,069  
 

Bharat Electronics Ltd.

     Aerospace & Defense          14,598          24,312  
 

Bharat Forge Ltd.

     Automobile Components          1,026          13,487  
 

Bharat Heavy Electricals Ltd.

     Electrical Equipment          5,154          8,131  
 

Bharat Petroleum Corp.. Ltd.

     Oil, Gas & Consumable Fuels          3,900          16,278  
 

Bharti Airtel Ltd.

     Wireless Telecommunication Services          630          4,049  
 

Bharti Airtel Ltd.

     Wireless Telecommunication Services          9,324          104,018  
 

Biocon Ltd.

     Biotechnology          1,890          6,195  
 

Bosch Ltd.

     Automobile Components          36          8,245  
 

Britannia Industries Ltd.

     Food Products          480          26,226  
 

Canara Bank

     Banks          1,476          6,688  
 

Castrol India Ltd.

     Chemicals          2,112          3,524  
 

CG Power & Industrial Solutions Ltd.

     Electrical Equipment          2,610          13,898  
 

Cholamandalam Investment & Finance Co. Ltd.

     Consumer Finance          1,626          23,840  
 

Cipla Ltd.

     Pharmaceuticals          2,070          29,568  
 

Coal India Ltd.

     Oil, Gas & Consumable Fuels          9,126          32,442  
 

Coforge Ltd.

     IT Services          234          14,384  
 

Colgate-Palmolive India Ltd.

     Personal Care Products          540          13,042  
 

Container Corp. of India Ltd.

     Ground Transportation          990          8,538  
 

Coromandel International Ltd.

     Chemicals          444          6,129  
 

Cummins India Ltd.

     Machinery          564          11,521  
 

Dabur India Ltd.

     Personal Care Products          2,358          15,663  
 

Dalmia Bharat Ltd.

     Construction Materials          282          8,165  
 

Deepak Nitrite Ltd.

     Chemicals          288          7,354  
 

Divi’s Laboratories Ltd.

     Life Sciences Tools & Services          516          23,396  
 

Dixon Technologies India Ltd.

     Household Durables          150          9,554  
 

DLF Ltd.

     Real Estate Management & Development          2,508          16,034  
b  

Dr Lal PathLabs Ltd.

     Health Care Providers & Services          150          4,560  
 

Dr Reddy’s Laboratories Ltd.

     Pharmaceuticals          492          33,102  
 

Eicher Motors Ltd.

     Automobiles          564          23,411  
 

Emami Ltd.

     Personal Care Products          846          5,486  
 

Embassy Office Parks REIT

     Office REITs          2,292          8,297  
 

Exide Industries Ltd.

     Automobile Components          1,884          5,912  
 

Federal Bank Ltd.

     Banks          7,044          12,486  
a  

FSN E-Commerce Ventures Ltd.

     Specialty Retail          5,562          10,261  
 

GAIL India Ltd.

     Gas Utilities          10,632          15,927  
b  

General Insurance Corp. of India

     Insurance          444          1,205  
 

GlaxoSmithKline Pharmaceuticals Ltd.

     Pharmaceuticals          174          3,244  
 

Glenmark Pharmaceuticals Ltd.

     Pharmaceuticals          606          6,243  
a  

GMR Airports Infrastructure Ltd.

     Transportation Infrastructure          10,194          7,310  
a  

Godrej Consumer Products Ltd.

     Personal Care Products          1,416          16,909  
a  

Godrej Industries Ltd.

     Industrial Conglomerates          270          1,852  
a  

Godrej Properties Ltd.

     Real Estate Management & Development          378          7,074  
 

Grasim Industries Ltd.

     Construction Materials          1,554          36,349  
 

Gujarat Fluorochemicals Ltd.

     Chemicals          150          5,509  
 

Gujarat Gas Ltd.

     Gas Utilities          606          3,086  
 

Havells India Ltd.

     Electrical Equipment          984          16,458  
 

HCL Technologies Ltd.

     IT Services          4,266          63,434  
b  

HDFC Asset Management Co. Ltd.

     Capital Markets          414          13,199  
 

HDFC Bank Ltd.

     Banks          15,300          281,214  
b  

HDFC Life Insurance Co. Ltd.

     Insurance          3,996          30,672  
 

Hero MotoCorp Ltd.

     Automobiles          510          18,776  
 

Hindalco Industries Ltd.

     Metals & Mining          5,712          33,887  
 

Hindustan Aeronautics Ltd.

     Aerospace & Defense          780          18,111  
a  

Hindustan Petroleum Corp. Ltd.

     Oil, Gas & Consumable Fuels          2,460          7,553  
 

Hindustan Unilever Ltd.

     Personal Care Products          3,582          106,354  

 

           
franklintempleton.com  

Semiannual Report

             135


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    India (continued)                         
 

Hindustan Zinc Ltd.

     Metals & Mining        1,032        $ 3,836  
 

Honeywell Automation India Ltd.

     Electronic Equipment, Instruments & Components        9          4,319  
 

ICICI Bank Ltd.

     Banks          6,360          72,905  
b  

ICICI Lombard General Insurance Co. Ltd.

     Insurance          984          15,518  
b  

ICICI Prudential Life Insurance Co. Ltd.

     Insurance          1,560          10,637  
a  

IDFC First Bank Ltd.

     Banks          13,086          15,049  
 

Indian Bank

     Banks          810          4,131  
 

Indian Hotels Co. Ltd.

     Hotels, Restaurants & Leisure          3,366          16,664  
 

Indian Oil Corp. Ltd.

     Oil, Gas & Consumable Fuels          16,458          18,025  
 

Indian Railway Catering & Tourism Corp. Ltd.

     Commercial Services & Supplies          1,218          9,986  
b  

Indian Railway Finance Corp. Ltd.

     Financial Services          5,382          4,961  
 

Indraprastha Gas Ltd.

     Gas Utilities          1,416          7,756  
a  

Indus Towers Ltd.

     Diversified Telecommunication Services          3,402          7,853  
 

Info Edge India Ltd.

     Interactive Media & Services          318          15,951  
 

Infosys Ltd.

     IT Services          14,142          244,458  
a,b  

InterGlobe Aviation Ltd.

     Passenger Airlines          510          14,624  
 

Ipca Laboratories Ltd.

     Pharmaceuticals          558          6,287  
 

ITC Ltd.

     Tobacco          11,916          63,769  
 

Jindal Steel & Power Ltd.

     Metals & Mining          1,590          13,429  
a  

Jio Financial Services Ltd.

     Financial Services          13,626          37,937  
 

JSW Energy Ltd.

     Independent Power Producers & Energy Traders          1,590          8,375  
 

JSW Steel Ltd.

     Metals & Mining          4,062          38,134  
 

Jubilant Foodworks Ltd.

     Hotels, Restaurants & Leisure          1,476          9,475  
 

Kansai Nerolac Paints Ltd.

     Chemicals          864          3,303  
 

Kotak Mahindra Bank Ltd.

     Banks          408          8,528  
 

L&T Finance Holdings Ltd.

     Financial Services          3,414          5,472  
b  

L&T Technology Services Ltd.

     Professional Services          114          6,282  
 

Larsen & Toubro Ltd.

     Construction & Engineering          2,514          91,535  
b  

Laurus Labs Ltd.

     Pharmaceuticals          1,548          7,371  
 

LIC Housing Finance Ltd.

     Financial Services          1,218          6,811  
 

Linde India Ltd.

     Chemicals          90          6,453  
b  

LTIMindtree Ltd.

     IT Services          378          23,715  
 

Lupin Ltd.

     Pharmaceuticals          966          13,625  
b  

Macrotech Developers Ltd.

     Real Estate Management & Development          900          8,670  
 

Mahindra & Mahindra Financial Services Ltd.

     Consumer Finance          2,412          8,753  
 

Mahindra & Mahindra Ltd.

     Automobiles          3,810          71,310  
a  

Mangalore Refinery & Petrochemicals Ltd.

     Oil, Gas & Consumable Fuels          672          774  
 

Marico Ltd.

     Food Products          2,112          14,285  
 

Maruti Suzuki India Ltd.

     Automobiles          534          68,232  
a  

Max Financial Services Ltd.

     Insurance          936          10,254  
 

Max Healthcare Institute Ltd.

     Health Care Providers & Services          2,694          18,407  
 

Mphasis Ltd.

     IT Services          330          9,444  
 

MRF Ltd.

     Automobile Components          11          14,213  
 

Muthoot Finance Ltd.

     Consumer Finance          438          6,604  
 

Nestle India Ltd.

     Food Products          144          39,029  
 

NHPC Ltd.

     Independent Power Producers & Energy Traders          9,234          5,871  
b  

Nippon Life India Asset Management Ltd.

     Capital Markets          558          2,204  
 

NMDC Ltd.

     Metals & Mining          4,650          8,285  
 

NTPC Ltd.

     Independent Power Producers & Energy Traders          19,146          56,614  
 

Oberoi Realty Ltd.

     Real Estate Management & Development          462          6,422  
 

Oil & Natural Gas Corp. Ltd.

     Oil, Gas & Consumable Fuels          15,630          36,110  
 

Oil India Ltd.

     Oil, Gas & Consumable Fuels          1,284          4,621  
a  

One 97 Communications Ltd.

     Financial Services          1,326          13,696  
 

Oracle Financial Services Software Ltd.

     Software          96          4,752  
 

Page Industries Ltd.

     Textiles, Apparel & Luxury Goods          23          10,796  
 

Patanjali Foods Ltd.

     Food Products          360          5,372  
a  

PB Fintech Ltd.

     Insurance          1,266          11,667  

 

           
136             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

India (continued)

         
 

Persistent Systems Ltd.

   IT Services     204        $ 14,240  
 

Petronet LNG Ltd.

   Oil, Gas & Consumable Fuels     2,982          8,617  
 

PI Industries Ltd.

   Chemicals     312          12,974  
 

Pidilite Industries Ltd.

   Chemicals     618          18,155  
 

Piramal Enterprises Ltd.

   Financial Services     540          6,824  
 

Polycab India Ltd.

   Electrical Equipment     198          12,740  
 

Power Finance Corp. Ltd.

   Financial Services     4,710          14,287  
a  

Power Finance Corp. Ltd.

   Financial Services     1,178          3,572  
 

Power Grid Corp. of India Ltd.

   Electric Utilities     17,016          40,931  
 

Punjab National Bank

   Banks     8,982          8,675  
a  

Rajesh Exports Ltd.

   Textiles, Apparel & Luxury Goods     588          3,555  
b  

RBL Bank Ltd.

   Banks     1,806          5,497  
 

REC Ltd.

   Financial Services     5,082          17,588  
 

Relaxo Footwears Ltd.

   Textiles, Apparel & Luxury Goods     312          3,384  
 

Reliance Industries Ltd.

   Oil, Gas & Consumable Fuels     13,566          383,090  
 

Samvardhana Motherson International Ltd.

   Automobile Components     8,646          9,995  
 

SBI Cards & Payment Services Ltd.

   Consumer Finance     1,182          11,260  
b  

SBI Life Insurance Co. Ltd.

   Insurance     1,704          26,787  
 

Schaeffler India Ltd.

   Machinery     168          6,706  
 

Shree Cement Ltd.

   Construction Materials     54          16,559  
 

Shriram Finance Ltd.

   Consumer Finance     1,134          26,210  
 

Siemens Ltd.

   Industrial Conglomerates     336          14,860  
 

Solar Industries India Ltd.

   Chemicals     90          5,224  
b  

Sona Blw Precision Forgings Ltd.

   Automobile Components     1,464          10,285  
 

SRF Ltd.

   Chemicals     570          15,440  
a  

Star Health & Allied Insurance Co. Ltd.

   Insurance     936          6,774  
 

State Bank of India

   Banks     7,224          52,070  
 

Steel Authority of India Ltd.

   Metals & Mining     6,042          6,828  
 

Sun Pharmaceutical Industries Ltd.

   Pharmaceuticals     4,398          61,364  
 

Sun TV Network Ltd.

   Media     348          2,565  
 

Supreme Industries Ltd.

   Chemicals     264          13,103  
b  

Syngene International Ltd.

   Life Sciences Tools & Services     660          6,391  
 

Tata Communications Ltd.

   Diversified Telecommunication Services     468          10,893  
 

Tata Consultancy Services Ltd.

   IT Services     4,122          175,153  
 

Tata Consumer Products Ltd.

   Food Products     2,466          26,041  
 

Tata Elxsi Ltd.

   Software     138          12,010  
 

Tata Motors Ltd., Class A

   Automobiles     7,404          56,189  
 

Tata Motors Ltd., Class A

   Automobiles     1,536          7,918  
 

Tata Power Co. Ltd.

   Electric Utilities     6,744          21,302  
 

Tata Steel Ltd.

   Metals & Mining     32,982          51,196  
a  

Tata Teleservices Maharashtra Ltd.

   Diversified Telecommunication Services     2,190          2,623  
 

Tech Mahindra Ltd.

   IT Services     2,460          36,224  
 

Titan Co. Ltd.

   Textiles, Apparel & Luxury Goods     1,680          63,703  
 

Torrent Pharmaceuticals Ltd.

   Pharmaceuticals     402          9,339  
 

Torrent Power Ltd.

   Electric Utilities     888          7,897  
 

Trent Ltd.

   Specialty Retail     720          18,036  
 

Tube Investments of India Ltd.

   Automobile Components     408          14,682  
 

TVS Motor Co. Ltd.

   Automobiles     972          17,813  
 

UltraTech Cement Ltd.

   Construction Materials     456          45,329  
 

Union Bank of India Ltd.

   Banks     4,518          5,783  
 

United Breweries Ltd.

   Beverages     228          4,275  
a  

United Spirits Ltd.

   Beverages     1,104          13,391  
 

UNO Minda Ltd.

   Automobile Components     726          5,241  
 

UPL Ltd.

   Chemicals     2,148          15,940  
 

Varun Beverages Ltd.

   Beverages     1,902          21,661  
 

Vedant Fashions Ltd.

   Textiles, Apparel & Luxury Goods     252          4,062  
 

Vedanta Ltd.

   Metals & Mining     4,806          12,880  

 

           
franklintempleton.com  

Semiannual Report

             137


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

India (continued)

         
a  

Vodafone Idea Ltd.

   Wireless Telecommunication Services     33,186        $ 4,656  
 

Voltas Ltd.

   Construction & Engineering     816          8,483  
 

Whirlpool of India Ltd.

   Household Durables     132          2,583  
 

Wipro Ltd.

   IT Services     5,724          27,989  
a  

Yes Bank Ltd.

   Banks     80,430          16,708  
a  

Zee Entertainment Enterprises Ltd.

   Media     3,474          11,067  
a  

Zomato Ltd.

   Hotels, Restaurants & Leisure     22,212          27,149  
 

Zydus Lifesciences Ltd.

   Pharmaceuticals     1,014          7,510  
           

 

 

 
              4,808,106  
           

 

 

 
 

Indonesia 2.4%

         
 

Adaro Energy Indonesia Tbk PT, Class B

   Oil, Gas & Consumable Fuels     49,200          9,073  
 

Astra Agro Lestari Tbk PT, Class H

   Food Products     1,800          873  
 

Astra International Tbk PT, Class H

   Industrial Conglomerates     82,200          33,109  
 

Avia Avian Tbk PT

   Chemicals     60,000          2,174  
 

Bank Central Asia Tbk PT, Class A

   Banks     223,800          127,793  
 

Bank Danamon Indonesia Tbk PT, Class H

   Banks     3,600          666  
 

Bank Mandiri Persero Tbk PT, Class A

   Banks     178,200          69,470  
 

Bank Negara Indonesia Persero Tbk PT, Class H

   Banks     30,000          20,042  
 

Bank Rakyat Indonesia Persero Tbk PT, Class A

   Banks     282,600          95,541  
 

Bank Syariah Indonesia Tbk PT

   Banks     12,600          1,325  
 

Barito Pacific Tbk PT, Class A

   Chemicals     101,400          8,529  
 

Bukit Asam Tbk PT, Class A

   Oil, Gas & Consumable Fuels     17,400          3,152  
a  

Bumi Serpong Damai Tbk PT, Class A

   Real Estate Management & Development     37,800          2,495  
a  

Charoen Pokphand Indonesia Tbk PT, Class A

   Food Products     28,200          9,899  
 

Dayamitra Telekomunikasi PT

   Diversified Telecommunication Services     72,600          3,194  
 

Elang Mahkota Teknologi Tbk PT

   Media     109,200          4,133  
 

First Pacific Co. Ltd.

   Food Products     8,000          3,167  
a  

GoTo Gojek Tokopedia Tbk PT

   Broadline Retail     2,928,000          16,103  
 

Gudang Garam Tbk PT

   Tobacco     1,800          2,865  
 

Hanjaya Mandala Sampoerna Tbk PT

   Tobacco     34,800          1,948  
 

Indah Kiat Pulp & Paper Tbk PT

   Paper & Forest Products     10,800          7,757  
 

Indocement Tunggal Prakarsa Tbk PT

   Construction Materials     6,000          3,863  
 

Indofood CBP Sukses Makmur Tbk PT

   Food Products     9,000          6,449  
 

Indofood Sukses Makmur Tbk PT

   Food Products     17,400          7,459  
 

Indosat Tbk PT

   Wireless Telecommunication Services     7,800          4,959  
 

Jasa Marga Persero Tbk PT

   Transportation Infrastructure     8,400          2,332  
 

Kalbe Farma Tbk PT

   Pharmaceuticals     73,200          8,312  
 

Mayora Indah Tbk PT

   Food Products     12,000          1,980  
a  

Merdeka Copper Gold Tbk PT

   Metals & Mining     76,200          14,200  
 

Perusahaan Gas Negara Tbk PT

   Gas Utilities     42,000          3,737  
 

Sarana Menara Nusantara Tbk PT

   Diversified Telecommunication Services     77,400          4,808  
 

Semen Indonesia Persero Tbk PT

   Construction Materials     13,200          5,487  
a  

Smartfren Telecom Tbk PT

   Wireless Telecommunication Services     436,200          1,581  
 

Sumber Alfaria Trijaya Tbk PT

   Consumer Staples Distribution & Retail     75,600          14,479  
 

Surya Citra Media Tbk PT

   Media     72,000          736  
 

Telkom Indonesia Persero Tbk PT, Class B

   Diversified Telecommunication Services     187,200          45,422  
 

Tower Bersama Infrastructure Tbk PT

   Diversified Telecommunication Services     17,400          2,274  
 

Unilever Indonesia Tbk PT

   Household Products     22,800          5,517  
 

United Tractors Tbk PT

   Oil, Gas & Consumable Fuels     6,000          10,967  
 

Vale Indonesia Tbk PT

   Metals & Mining     9,000          3,290  
 

XL Axiata Tbk PT

   Wireless Telecommunication Services     16,200          2,495  
           

 

 

 
              573,655  
           

 

 

 
 

Italy 0.1%

         
 

PRADA SpA

   Textiles, Apparel & Luxury Goods     2,100          12,361  
           

 

 

 

 

           
138             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

Luxembourg 0.0%

         
 

L’Occitane International SA

   Personal Care Products     1,500        $ 4,482  
           

 

 

 
 

Macau 0.4%

         
 

Galaxy Entertainment Group Ltd.

   Hotels, Restaurants & Leisure     8,590          51,714  
a  

MGM China Holdings Ltd.

   Hotels, Restaurants & Leisure     3,200          4,184  
a  

Sands China Ltd.

   Hotels, Restaurants & Leisure     9,600          29,418  
a  

SJM Holdings Ltd.

   Hotels, Restaurants & Leisure     10,500          4,129  
a  

Wynn Macau Ltd.

   Hotels, Restaurants & Leisure     6,000          5,746  
           

 

 

 
              95,191  
           

 

 

 
 

Malaysia 1.8%

         
 

Alliance Bank Malaysia Bhd, Class A

   Banks     5,200          3,743  
 

AMMB Holdings Bhd

   Banks     9,000          7,092  
 

Astro Malaysia Holdings Bhd, Class A

   Media     5,200          509  
 

Axiata Group Bhd, Class A

   Wireless Telecommunication Services     19,600          10,394  
 

CELCOMDIGI Bhd

   Wireless Telecommunication Services     15,600          14,519  
 

CIMB Group Holdings Bhd, Class A

   Banks     31,800          36,776  
 

Dialog Group Bhd, Class A

   Energy Equipment & Services     17,400          7,857  
 

FGV Holdings Bhd

   Food Products     2,800          829  
 

Fraser & Neave Holdings Bhd

   Beverages     700          3,772  
 

Gamuda Bhd

   Construction & Engineering     9,400          8,869  
 

Genting Bhd

   Hotels, Restaurants & Leisure     8,600          7,638  
 

Genting Malaysia Bhd

   Hotels, Restaurants & Leisure     12,000          6,389  
a  

Hartalega Holdings Bhd

   Health Care Equipment & Supplies     6,800          2,882  
 

Hong Leong Bank Bhd

   Banks     2,400          9,968  
 

Hong Leong Financial Group Bhd

   Banks     1,000          3,770  
 

IHH Healthcare Bhd

   Health Care Providers & Services     12,000          14,951  
 

IJM Corp. Bhd

   Construction & Engineering     13,200          5,229  
 

IOI Corp. Bhd

   Food Products     10,200          8,646  
 

Kuala Lumpur Kepong Bhd

   Food Products     2,200          10,027  
 

Malayan Banking Bhd

   Banks     30,000          56,163  
 

Malaysia Airports Holdings Bhd

   Transportation Infrastructure     3,900          5,922  
 

Maxis Bhd

   Wireless Telecommunication Services     12,000          10,325  
 

MISC Bhd

   Marine Transportation     6,900          10,405  
b  

MR DIY Group M Bhd

   Specialty Retail     9,700          3,120  
 

Nestle Malaysia Bhd

   Food Products     250          6,736  
 

Petronas Chemicals Group Bhd

   Chemicals     11,400          17,457  
 

Petronas Dagangan Bhd

   Oil, Gas & Consumable Fuels     1,000          4,767  
 

Petronas Gas Bhd

   Gas Utilities     2,400          8,608  
 

PPB Group Bhd

   Food Products     2,700          8,902  
 

Press Metal Aluminium Holdings Bhd

   Metals & Mining     15,000          15,047  
 

Public Bank Bhd

   Banks     57,200          49,461  
 

QL Resources Bhd

   Food Products     4,200          4,884  
 

RHB Bank Bhd

   Banks     7,200          8,327  
 

Sime Darby Bhd

   Industrial Conglomerates     15,200          7,155  
 

Sime Darby Plantation Bhd

   Food Products     14,400          13,127  
 

Telekom Malaysia Bhd

   Diversified Telecommunication Services     4,700          4,905  
 

Tenaga Nasional Bhd

   Electric Utilities     15,000          31,915  
a  

Top Glove Corp. Bhd

   Health Care Equipment & Supplies     22,600          3,730  
 

YTL Corp. Bhd

   Multi-Utilities     17,813          5,767  
           

 

 

 
              440,583  
           

 

 

 
 

Pakistan 0.0%

         
 

Oil & Gas Development Co. Ltd.

   Oil, Gas & Consumable Fuels     3,000          1,002  
           

 

 

 
 

Philippines 0.8%

         
 

ACEN Corp.

   Independent Power Producers & Energy Traders     35,230          3,058  
 

Alliance Global Group, Inc., Class A

   Industrial Conglomerates     16,600          3,615  
 

Ayala Corp., Class A

   Industrial Conglomerates     1,200          13,235  

 

           
franklintempleton.com  

Semiannual Report

             139


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

Philippines (continued)

         
 

Ayala Land, Inc., Class A

   Real Estate Management & Development     30,600        $ 15,929  
 

Bank of the Philippine Islands, Class A

   Banks     7,096          14,048  
 

BDO Unibank, Inc., Class A

   Banks     9,480          23,777  
a  

Bloomberry Resorts Corp., Class H

   Hotels, Restaurants & Leisure     13,000          2,321  
a  

Converge Information & Communications Technology Solutions, Inc.

   Diversified Telecommunication Services     8,800          1,493  
 

DMCI Holdings, Inc., Class A

   Industrial Conglomerates     15,400          2,836  
 

Emperador, Inc.

   Beverages     13,100          4,805  
 

Globe Telecom, Inc.

   Wireless Telecommunication Services     132          4,183  
 

GT Capital Holdings, Inc.

   Industrial Conglomerates     420          4,232  
 

International Container Terminal Services, Inc.

   Transportation Infrastructure     4,380          16,041  
 

JG Summit Holdings, Inc.

   Industrial Conglomerates     12,000          8,081  
 

Jollibee Foods Corp.

   Hotels, Restaurants & Leisure     1,696          6,877  
 

LT Group, Inc.

   Industrial Conglomerates     13,600          2,163  
 

Manila Electric Co.

   Electric Utilities     1,020          6,635  
 

Megaworld Corp.

   Real Estate Management & Development     54,000          1,928  
 

Metropolitan Bank & Trust Co.

   Banks     7,260          6,929  
a,b  

Monde Nissin Corp.

   Food Products     31,200          4,980  
 

PLDT, Inc.

   Wireless Telecommunication Services     330          6,859  
 

Puregold Price Club, Inc.

   Consumer Staples Distribution & Retail     4,660          2,380  
 

San Miguel Corp.

   Industrial Conglomerates     1,640          3,061  
 

Semirara Mining & Power Corp.

   Oil, Gas & Consumable Fuels     4,800          2,961  
 

SM Prime Holdings, Inc.

   Real Estate Management & Development     43,500          23,297  
 

Universal Robina Corp.

   Food Products     3,360          7,061  
           

 

 

 
              192,785  
           

 

 

 
    Singapore 3.5%                    
b  

BOC Aviation Ltd., Class A

   Trading Companies & Distributors     900          6,280  
 

CapitaLand Ascendas REIT, Class A

   Industrial REITs     13,800          27,804  
 

CapitaLand Ascott Trust, Class A

   Hotel & Resort REITs     8,418          5,921  
 

CapitaLand Integrated Commercial Trust, Class A

   Retail REITs     21,000          28,464  
 

CapitaLand Investment Ltd.

   Real Estate Management & Development     10,200          23,167  
 

City Developments Ltd., Class H

   Real Estate Management & Development     1,800          8,717  
 

ComfortDelGro Corp. Ltd., Class H

   Ground Transportation     8,800          8,382  
 

DBS Group Holdings Ltd., Class A

   Banks     7,300          179,919  
 

Frasers Logistics & Commercial Trust

   Industrial REITs     12,000          9,407  
 

Genting Singapore Ltd.

   Hotels, Restaurants & Leisure     24,600          15,230  
 

Jardine Cycle & Carriage Ltd.

   Industrial Conglomerates     400          9,357  
 

Keppel Corp. Ltd.

   Industrial Conglomerates     5,700          28,398  
 

Keppel DC REIT

   Specialized REITs     5,400          8,229  
 

Keppel REIT

   Office REITs     7,900          4,949  
 

Mapletree Industrial Trust

   Industrial REITs     7,800          12,915  
 

Mapletree Logistics Trust

   Industrial REITs     13,800          16,986  
 

Mapletree Pan Asia Commercial Trust

   Retail REITs     9,400          9,848  
 

Netlink NBN Trust

   Diversified Telecommunication Services     12,000          7,385  
 

Olam Group Ltd.

   Consumer Staples Distribution & Retail     4,800          3,693  
 

Oversea-Chinese Banking Corp. Ltd.

   Banks     14,200          133,271  
a  

SATS Ltd.

   Transportation Infrastructure     3,265          6,219  
a  

Seatrium Ltd.

   Machinery     164,435          16,143  
 

Sembcorp Industries Ltd.

   Multi-Utilities     3,600          13,425  
 

SIA Engineering Co. Ltd.

   Transportation Infrastructure     1,000          1,751  
 

Singapore Airlines Ltd.

   Passenger Airlines     5,400          25,558  
 

Singapore Exchange Ltd.

   Capital Markets     3,350          23,930  
 

Singapore Post Ltd.

   Air Freight & Logistics     6,600          2,345  
 

Singapore Technologies Engineering Ltd.

   Aerospace & Defense     6,200          17,761  
 

Singapore Telecommunications Ltd.

   Diversified Telecommunication Services     30,600          54,254  
 

StarHub Ltd.

   Wireless Telecommunication Services     2,400          1,952  

 

           
140             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
 

Singapore (continued)

         
 

Suntec Real Estate Investment Trust

   Diversified REITs     9,000        $ 7,649  
 

United Overseas Bank Ltd.

   Banks     4,800          100,227  
 

UOL Group Ltd.

   Real Estate Management & Development     1,800          8,467  
 

Venture Corp. Ltd.

   Electronic Equipment, Instruments & Components     1,126          10,205  
 

Wilmar International Ltd.

   Food Products     8,400          22,956  
 

Yangzijiang Financial Holding Ltd.

   Capital Markets     10,800          2,849  
a  

Yanlord Land Group Ltd.

   Real Estate Management & Development     2,400          1,161  
           

 

 

 
              865,174  
           

 

 

 
    South Korea 12.7%                    
a  

Alteogen, Inc., Class A

   Biotechnology     144          7,267  
 

Amorepacific Corp., Class H

   Personal Care Products     120          10,849  
 

AMOREPACIFIC Group, Class A

   Personal Care Products     102          2,302  
 

BGF retail Co. Ltd.

   Consumer Staples Distribution & Retail     30          3,135  
 

BNK Financial Group, Inc., Class H

   Banks     1,122          5,696  
 

Celltrion Healthcare Co. Ltd., Class A

   Health Care Providers & Services     402          18,768  
a  

Celltrion Pharm, Inc., Class A

   Pharmaceuticals     78          3,861  
 

Celltrion, Inc., Class A

   Biotechnology     444          45,802  
 

Cheil Worldwide, Inc., Class A

   Media     306          4,547  
 

CJ CheilJedang Corp., Class A

   Food Products     30          6,825  
 

CJ Corp., Class A

   Industrial Conglomerates     54          3,594  
a  

CJ ENM Co. Ltd., Class A

   Entertainment     42          1,774  
 

CJ Logistics Corp., Class A

   Air Freight & Logistics     36          2,156  
a  

CosmoAM&T Co. Ltd.

   Technology Hardware, Storage & Peripherals     90          9,964  
 

Coway Co. Ltd.

   Household Durables     222          6,795  
a  

Daewoo Engineering & Construction Co. Ltd., Class A

   Construction & Engineering     732          2,281  
 

DB Insurance Co. Ltd., Class A

   Insurance     180          11,925  
 

DGB Financial Group, Inc., Class A

   Banks     666          3,884  
 

DL E&C Co. Ltd., Class A

   Construction & Engineering     132          3,047  
 

DL Holdings Co. Ltd., Class A

   Chemicals     54          1,701  
 

Dongsuh Cos., Inc., Class A

   Consumer Staples Distribution & Retail     132          1,645  
 

Doosan Bobcat, Inc., Class A

   Machinery     180          6,803  
a  

Doosan Enerbility Co. Ltd., Class H

   Electrical Equipment     1,728          21,040  
 

Ecopro BM Co. Ltd.

   Electrical Equipment     186          34,873  
 

Ecopro Co. Ltd.

   Chemicals     72          48,075  
 

E-MART, Inc., Class A

   Consumer Staples Distribution & Retail     84          4,382  
 

F&F Co. Ltd.

   Textiles, Apparel & Luxury Goods     66          5,527  
 

Fila Holdings Corp.

   Textiles, Apparel & Luxury Goods     210          5,618  
 

Green Cross Corp.

   Biotechnology     24          1,933  
 

GS Engineering & Construction Corp.

   Construction & Engineering     264          2,745  
 

GS Holdings Corp.

   Industrial Conglomerates     186          5,500  
 

GS Retail Co. Ltd.

   Consumer Staples Distribution & Retail     162          2,839  
 

Hana Financial Group, Inc.

   Banks     1,158          36,429  
 

Hanjin Kal Corp.

   Passenger Airlines     126          3,954  
 

Hankook Tire & Technology Co. Ltd.

   Automobile Components     300          8,804  
 

Hanmi Pharm Co. Ltd.

   Pharmaceuticals     30          6,647  
 

Hanmi Science Co. Ltd.

   Pharmaceuticals     84          2,051  
 

Hanon Systems

   Automobile Components     654          4,566  
 

Hanwha Aerospace Co. Ltd.

   Aerospace & Defense     144          11,162  
 

Hanwha Corp.

   Industrial Conglomerates     168          2,982  
 

Hanwha Corp.

   Industrial Conglomerates     78          797  
a  

Hanwha Life Insurance Co. Ltd.

   Insurance     1,230          2,602  
a  

Hanwha Ocean Co. Ltd., Class A

   Machinery     198          4,541  
a  

Hanwha Solutions Corp.

   Chemicals     414          9,127  
 

HD Hyundai Co. Ltd.

   Oil, Gas & Consumable Fuels     168          8,254  
a  

HD Hyundai Heavy Industries Co. Ltd.

   Machinery     72          6,467  
 

HD Hyundai Infracore Co. Ltd.

   Machinery     558          4,383  
           

 

           
franklintempleton.com  

Semiannual Report

             141


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
    South Korea (continued)                    

a

 

HD Korea Shipbuilding & Offshore Engineering Co. Ltd.

   Machinery     174        $ 14,313  
 

Hite Jinro Co. Ltd.

   Beverages     132          1,848  
 

HL Mando Co. Ltd.

   Automobile Components     138          4,295  
a  

HLB, Inc.

   Health Care Equipment & Supplies     432          9,604  
 

HMM Co. Ltd.

   Marine Transportation     1,176          14,171  
 

Hotel Shilla Co. Ltd.

   Specialty Retail     126          7,909  
a  

HYBE Co. Ltd.

   Entertainment     72          12,699  
 

Hyundai Department Store Co. Ltd.

   Broadline Retail     60          2,828  
 

Hyundai Engineering & Construction Co. Ltd.

   Construction & Engineering     306          8,220  
 

Hyundai Glovis Co. Ltd.

   Air Freight & Logistics     72          9,839  
 

Hyundai Marine & Fire Insurance Co. Ltd.

   Insurance     240          5,771  
a  

Hyundai Mipo Dockyard Co. Ltd.

   Machinery     78          4,798  
 

Hyundai Mobis Co. Ltd.

   Automobile Components     246          43,844  
 

Hyundai Motor Co.

   Automobiles     552          78,173  
 

Hyundai Steel Co.

   Metals & Mining     318          8,967  
 

Hyundai Wia Corp.

   Automobile Components     72          3,399  
 

Industrial Bank of Korea

   Banks     1,092          9,072  
 

Kakao Corp.

   Interactive Media & Services     1,230          40,061  
a  

Kakao Games Corp.

   Entertainment     138          2,603  
 

KakaoBank Corp.

   Banks     840          14,535  
a  

Kakaopay Corp.

   Financial Services     90          2,718  
 

Kangwon Land, Inc.

   Hotels, Restaurants & Leisure     402          4,498  
 

KB Financial Group, Inc.

   Banks     1,518          62,209  
 

KCC Corp.

   Chemicals     18          3,288  
 

KEPCO Plant Service & Engineering Co. Ltd.

   Commercial Services & Supplies     96          2,334  
 

Kia Corp.

   Automobiles     984          59,358  
 

Korea Aerospace Industries Ltd.

   Aerospace & Defense     288          10,415  
a  

Korea Electric Power Corp.

   Electric Utilities     1,038          13,862  
a  

Korea Gas Corp.

   Gas Utilities     114          2,019  
 

Korea Investment Holdings Co. Ltd.

   Capital Markets     156          6,139  
 

Korea Zinc Co. Ltd.

   Metals & Mining     42          15,749  
 

Korean Air Lines Co. Ltd.

   Passenger Airlines     750          12,089  
a  

Krafton, Inc.

   Entertainment     114          12,723  
 

KT&G Corp.

   Tobacco     414          26,477  
 

Kumho Petrochemical Co. Ltd.

   Chemicals     72          7,155  
 

L&F Co. Ltd.

   Electronic Equipment, Instruments & Components     96          12,336  
 

LG Chem Ltd.

   Chemicals     190          69,909  
 

LG Corp.

   Industrial Conglomerates     360          22,357  
a  

LG Display Co. Ltd.

   Electronic Equipment, Instruments & Components     876          8,511  
 

LG Electronics, Inc.

   Household Durables     438          32,751  
a  

LG Energy Solution Ltd.

   Electrical Equipment     162          57,205  
 

LG H&H Co. Ltd.

   Personal Care Products     36          11,912  
 

LG Innotek Co. Ltd.

   Electronic Equipment, Instruments & Components     54          9,784  
 

LG Uplus Corp.

   Diversified Telecommunication Services     900          6,910  
 

Lotte Chemical Corp.

   Chemicals     72          7,315  
 

Lotte Chilsung Beverage Co. Ltd.

   Beverages     12          1,114  
 

Lotte Corp.

   Industrial Conglomerates     114          2,150  
 

Lotte Energy Materials Corp.

   Electronic Equipment, Instruments & Components     78          2,301  
 

LOTTE Fine Chemical Co. Ltd.

   Chemicals     60          2,601  
 

Lotte Shopping Co. Ltd.

   Broadline Retail     48          2,543  
 

LS Corp.

   Electrical Equipment     72          5,421  
 

Meritz Financial Group, Inc.

   Financial Services     408          16,690  
 

Mirae Asset Securities Co. Ltd.

   Capital Markets     1,002          4,789  
 

Mirae Asset Securities Co. Ltd.

   Capital Markets     618          1,619  
 

NAVER Corp.

   Interactive Media & Services     576          86,012  
 

NCSoft Corp.

   Entertainment     62          10,223  

 

           
142             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry       Shares                Value  
 

Common Stocks (continued)

         
    South Korea (continued)                    
a,b  

Netmarble Corp.

   Entertainment     72        $ 2,246  
 

NH Investment & Securities Co. Ltd., Class C

   Capital Markets     552          4,181  
 

NongShim Co. Ltd.

   Food Products     12          4,206  
a  

OCI Co. Ltd.

   Chemicals     24          2,168  
 

OCI Holdings Co. Ltd.

   Chemicals     48          3,468  
 

Orion Corp.

   Food Products     84          7,987  
 

Ottogi Corp.

   Food Products     6          1,623  
 

Pan Ocean Co. Ltd.

   Marine Transportation     846          3,110  
a  

Paradise Co. Ltd.

   Hotels, Restaurants & Leisure     204          2,460  
a  

Pearl Abyss Corp.

   Entertainment     126          4,351  
 

POSCO Future M Co. Ltd.

   Electrical Equipment     114          30,371  
 

POSCO Holdings, Inc.

   Metals & Mining     302          119,735  
 

Posco International Corp.

   Trading Companies & Distributors     174          9,207  
 

S-1 Corp.

   Commercial Services & Supplies     78          3,272  
a,b  

Samsung Biologics Co. Ltd.

   Life Sciences Tools & Services     71          35,832  
 

Samsung C&T Corp.

   Industrial Conglomerates     342          27,271  
 

Samsung Card Co. Ltd.

   Consumer Finance     132          2,979  
 

Samsung Electro-Mechanics Co. Ltd.

   Electronic Equipment, Instruments & Components     228          23,216  
 

Samsung Electronics Co. Ltd.

   Technology Hardware, Storage & Peripherals     19,092          967,758  
a  

Samsung Engineering Co. Ltd.

   Construction & Engineering     636          14,257  
 

Samsung Fire & Marine Insurance Co. Ltd.

   Insurance     132          25,482  
a  

Samsung Heavy Industries Co. Ltd.

   Machinery     2,562          14,885  
 

Samsung Life Insurance Co. Ltd.

   Insurance     294          15,317  
 

Samsung SDI Co. Ltd.

   Electronic Equipment, Instruments & Components     212          80,439  
 

Samsung SDS Co. Ltd.

   IT Services     150          15,029  
 

Samsung Securities Co. Ltd.

   Capital Markets     258          7,027  
 

SD Biosensor, Inc.

   Health Care Equipment & Supplies     144          1,213  
 

Seegene, Inc.

   Biotechnology     126          1,994  
 

Shinhan Financial Group Co. Ltd.

   Banks     1,962          51,762  
 

Shinsegae, Inc.

   Broadline Retail     30          4,226  
a  

SK Biopharmaceuticals Co. Ltd.

   Pharmaceuticals     108          6,899  
a  

SK Bioscience Co. Ltd.

   Biotechnology     90          4,515  
 

SK Chemicals Co. Ltd.

   Chemicals     30          1,403  
 

SK Hynix, Inc.

   Semiconductors & Semiconductor Equipment     2,172          184,622  
a,b  

SK IE Technology Co. Ltd.

   Chemicals     108          5,923  
a  

SK Innovation Co. Ltd.

   Oil, Gas & Consumable Fuels     230          25,362  
 

SK Networks Co. Ltd.

   Trading Companies & Distributors     510          2,306  
a  

SK Square Co. Ltd.

   Industrial Conglomerates     390          12,269  
 

SK, Inc.

   Industrial Conglomerates     138          14,952  
 

SKC Co. Ltd.

   Chemicals     78          4,387  
 

S-Oil Corp.

   Oil, Gas & Consumable Fuels     156          9,156  
 

Solus Advanced Materials Co. Ltd.

   Electronic Equipment, Instruments & Components     60          1,296  
 

SSANGYONG C&E Co. Ltd.

   Construction Materials     492          2,002  
 

Wemade Co. Ltd.

   Entertainment     72          1,969  
 

Woori Financial Group, Inc.

   Banks     2,682          24,367  
 

Yuhan Corp.

   Pharmaceuticals     216          12,133  
           

 

 

 
              3,122,987  
           

 

 

 
 

Taiwan 16.3%

         
 

Accton Technology Corp.

   Communications Equipment     2,100          32,072  
 

Acer, Inc., Class H

   Technology Hardware, Storage & Peripherals     12,000          13,494  
 

Advanced Energy Solution Holding Co. Ltd.

   Electrical Equipment     100          1,980  
 

Advantech Co. Ltd.

   Technology Hardware, Storage & Peripherals     1,654          17,677  
 

Alchip Technologies Ltd.

   Semiconductors & Semiconductor Equipment     280          23,333  
 

ASE Technology Holding Co. Ltd., Class A

   Semiconductors & Semiconductor Equipment     13,500          45,794  
 

Asia Cement Corp.

   Construction Materials     9,430          11,612  
 

ASMedia Technology, Inc.

   Semiconductors & Semiconductor Equipment     160          5,725  
 

ASPEED Technology, Inc.

   Semiconductors & Semiconductor Equipment     106          9,079  

 

 

           
franklintempleton.com  

Semiannual Report

             143


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry          Shares                Value  
 

Common Stocks (continued)

            
    Taiwan (continued)                       
 

Asustek Computer, Inc.

   Technology Hardware, Storage & Peripherals        2,820        $ 32,061  
 

AUO Corp., Class H

   Electronic Equipment, Instruments & Components        27,000          13,717  
 

Capital Securities Corp., Class A

   Capital Markets        8,000          3,618  
 

Catcher Technology Co. Ltd.

   Technology Hardware, Storage & Peripherals        2,590          14,643  
 

Cathay Financial Holding Co. Ltd., Class A

   Insurance        36,901          50,927  
 

Chailease Holding Co. Ltd., Class A

   Financial Services        5,768          32,342  
 

Chang Hwa Commercial Bank Ltd., Class A

   Banks        27,700          14,802  
 

Cheng Shin Rubber Industry Co. Ltd., Class A

   Automobile Components        7,600          10,006  
 

Chicony Electronics Co. Ltd.

   Technology Hardware, Storage & Peripherals        2,260          8,086  
 

China Airlines Ltd., Class A

   Passenger Airlines        12,000          7,881  
a  

China Development Financial Holding Corp., Class A

   Insurance        65,000          23,760  
 

China Motor Corp., Class A

   Automobiles        800          2,416  
 

China Steel Corp., Class A

   Metals & Mining        50,000          39,110  
 

Chunghwa Telecom Co. Ltd.

   Diversified Telecommunication Services        15,240          54,765  
 

Compal Electronics, Inc., Class H

   Technology Hardware, Storage & Peripherals        18,000          17,119  
 

CTBC Financial Holding Co. Ltd., Class A

   Banks        74,000          56,164  
 

Delta Electronics, Inc., Class A

   Electronic Equipment, Instruments & Components        8,500          85,446  
 

E Ink Holdings, Inc.

   Electronic Equipment, Instruments & Components        3,600          20,018  
 

E.Sun Financial Holding Co. Ltd., Class A

   Banks        60,297          45,297  
 

Eclat Textile Co. Ltd., Class A

   Textiles, Apparel & Luxury Goods        840          12,673  
 

eMemory Technology, Inc.

   Semiconductors & Semiconductor Equipment        282          17,603  
a  

Ennostar, Inc., Class H

   Semiconductors & Semiconductor Equipment        2,520          3,427  
 

Eternal Materials Co. Ltd., Class H

   Chemicals        4,300          3,776  
 

Eva Airways Corp., Class H

   Passenger Airlines        10,000          9,216  
 

Evergreen Marine Corp. Taiwan Ltd.

   Marine Transportation        4,140          14,877  
 

Far Eastern International Bank

   Banks        8,770          3,165  
 

Far Eastern New Century Corp.

   Industrial Conglomerates        15,643          13,932  
 

Far EasTone Telecommunications Co. Ltd.

   Wireless Telecommunication Services        6,000          13,513  
 

Feng TAY Enterprise Co. Ltd.

   Textiles, Apparel & Luxury Goods        1,980          11,225  
 

First Financial Holding Co. Ltd.

   Banks        43,470          35,753  
a,b  

FIT Hon Teng Ltd.

   Electronic Equipment, Instruments & Components        6,000          781  
 

Formosa Chemicals & Fibre Corp.

   Chemicals        13,500          25,720  
 

Formosa Petrochemical Corp.

   Oil, Gas & Consumable Fuels        5,260          13,134  
 

Formosa Plastics Corp.

   Chemicals        14,900          36,834  
 

Formosa Sumco Technology Corp.

   Semiconductors & Semiconductor Equipment        300          1,334  
 

Formosa Taffeta Co. Ltd.

   Textiles, Apparel & Luxury Goods        4,000          3,154  
 

Foxconn Technology Co. Ltd.

   Electronic Equipment, Instruments & Components        4,500          8,044  
 

Fubon Financial Holding Co. Ltd.

   Insurance        31,200          58,668  
 

Genius Electronic Optical Co. Ltd.

   Electronic Equipment, Instruments & Components        400          4,560  
 

Giant Manufacturing Co. Ltd.

   Leisure Products        1,352          7,476  
 

Gigabyte Technology Co. Ltd.

   Technology Hardware, Storage & Peripherals        2,000          17,441  
 

Global Unichip Corp.

   Semiconductors & Semiconductor Equipment        300          12,686  
 

Globalwafers Co. Ltd.

   Semiconductors & Semiconductor Equipment        820          11,520  
 

Hiwin Technologies Corp.

   Machinery        985          6,210  
 

Hon Hai Precision Industry Co. Ltd.

   Electronic Equipment, Instruments & Components        48,000          154,644  
 

Hotai Motor Co. Ltd.

   Specialty Retail        1,320          26,784  
a  

HTC Corp.

   Technology Hardware, Storage & Peripherals        3,000          4,470  
 

Hua Nan Financial Holdings Co. Ltd., Class C

   Banks        42,000          26,672  
a  

Innolux Corp.

   Electronic Equipment, Instruments & Components        32,900          13,402  
 

Inventec Corp.

   Technology Hardware, Storage & Peripherals        12,000          18,215  
 

Largan Precision Co. Ltd.

   Electronic Equipment, Instruments & Components        400          26,456  
 

Lite-On Technology Corp.

   Technology Hardware, Storage & Peripherals        8,400          31,617  
 

MediaTek, Inc.

   Semiconductors & Semiconductor Equipment        6,000          136,615  
 

Mega Financial Holding Co. Ltd.

   Banks        45,424          53,050  
 

Micro-Star International Co. Ltd.

   Technology Hardware, Storage & Peripherals        3,000          15,241  
 

momo.com, Inc.

   Broadline Retail        245          3,810  

 

           
144             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry          Shares                Value  
 

Common Stocks (continued)

            
    Taiwan (continued)                       
 

Nan Ya Plastics Corp.

   Chemicals        23,160        $ 47,783  
 

Nan Ya Printed Circuit Board Corp.

   Electronic Equipment, Instruments & Components        780          6,439  
 

Nanya Technology Corp.

   Semiconductors & Semiconductor Equipment        3,250          6,605  
 

Nien Made Enterprise Co. Ltd.

   Household Durables        660          6,338  
 

Novatek Microelectronics Corp.

   Semiconductors & Semiconductor Equipment        2,280          29,877  
 

Oneness Biotech Co. Ltd.

   Pharmaceuticals        1,392          7,525  
 

Pegatron Corp.

   Technology Hardware, Storage & Peripherals        8,000          18,984  
a  

PharmaEssentia Corp.

   Biotechnology        1,000          10,409  
 

Pou Chen Corp.

   Textiles, Apparel & Luxury Goods        12,000          10,650  
 

Powerchip Semiconductor Manufacturing Corp.

   Semiconductors & Semiconductor Equipment        12,000          9,870  
 

Powertech Technology, Inc.

   Semiconductors & Semiconductor Equipment        3,000          9,433  
 

President Chain Store Corp.

   Consumer Staples Distribution & Retail        2,220          18,053  
 

Quanta Computer, Inc.

   Technology Hardware, Storage & Peripherals        10,860          80,574  
 

Realtek Semiconductor Corp.

   Semiconductors & Semiconductor Equipment        1,930          23,616  
 

Ruentex Development Co. Ltd.

   Real Estate Management & Development        8,180          8,920  
 

Shanghai Commercial & Savings Bank Ltd.

   Banks        15,146          20,293  
a  

Shin Kong Financial Holding Co. Ltd.

   Insurance        54,041          15,519  
 

Sino-American Silicon Products, Inc.

   Semiconductors & Semiconductor Equipment        2,300          11,186  
 

SinoPac Financial Holdings Co. Ltd.

   Banks        46,611          25,124  
 

Synnex Technology International Corp.

   Electronic Equipment, Instruments & Components        5,200          10,326  
 

Taishin Financial Holding Co. Ltd.

   Banks        48,268          26,765  
 

Taiwan Business Bank

   Banks        22,528          9,212  
 

Taiwan Cement Corp.

   Construction Materials        25,800          26,575  
 

Taiwan Cooperative Financial Holding Co. Ltd.

   Banks        42,350          33,586  
 

Taiwan Fertilizer Co. Ltd.

   Chemicals        3,000          5,474  
a  

Taiwan Glass Industry Corp.

   Building Products        7,000          4,142  
 

Taiwan High Speed Rail Corp.

   Transportation Infrastructure        9,000          8,350  
 

Taiwan Mobile Co. Ltd.

   Wireless Telecommunication Services        6,860          20,104  
 

Taiwan Secom Co. Ltd.

   Commercial Services & Supplies        1,020          3,365  
 

Taiwan Semiconductor Manufacturing Co. Ltd.

   Semiconductors & Semiconductor Equipment        96,840          1,568,976  
a  

Tatung Co. Ltd.

   Electrical Equipment        9,000          12,379  
 

Teco Electric & Machinery Co. Ltd.

   Electrical Equipment        8,000          12,887  
 

Transcend Information, Inc.

   Technology Hardware, Storage & Peripherals        1,020          2,294  
 

U-Ming Marine Transport Corp.

   Marine Transportation        2,000          2,965  
 

Unimicron Technology Corp.

   Electronic Equipment, Instruments & Components        5,260          28,271  
 

Uni-President Enterprises Corp.

   Food Products        19,500          42,346  
 

United Microelectronics Corp.

   Semiconductors & Semiconductor Equipment        48,000          67,211  
 

Vanguard International Semiconductor Corp.

   Semiconductors & Semiconductor Equipment        3,760          7,921  
 

Voltronic Power Technology Corp.

   Electrical Equipment        250          12,275  
 

Walsin Lihwa Corp.

   Electrical Equipment        10,158          11,580  
 

Walsin Technology Corp.

   Electronic Equipment, Instruments & Components        2,100          6,668  
 

Wan Hai Lines Ltd.

   Marine Transportation        3,860          5,776  
 

Win Semiconductors Corp.

   Semiconductors & Semiconductor Equipment        1,500          5,994  
 

Winbond Electronics Corp.

   Semiconductors & Semiconductor Equipment        12,000          9,405  
 

Wistron Corp.

   Technology Hardware, Storage & Peripherals        12,000          37,732  
 

Wiwynn Corp.

   Technology Hardware, Storage & Peripherals        360          16,673  
 

Yageo Corp.

   Electronic Equipment, Instruments & Components        1,620          26,347  
 

Yang Ming Marine Transport Corp.

   Marine Transportation        7,500          10,560  
 

Yuanta Financial Holding Co. Ltd.

   Financial Services        48,840          37,900  
 

Yulon Motor Co. Ltd.

   Automobiles        2,593          6,667  
 

Zhen Ding Technology Holding Ltd.

   Electronic Equipment, Instruments & Components        2,260          6,889  
              

 

 

 
                 4,005,455  
              

 

 

 
    Thailand 2.4%                       
 

Advanced Info Service PCL, NVDR

   Wireless Telecommunication Services        4,500          28,177  
a  

Airports of Thailand PCL, Class H, NVDR

   Transportation Infrastructure        17,400          33,331  
 

Asset World Corp. PCL, Class H, NVDR

   Hotels, Restaurants & Leisure        31,800          3,406  
 

B Grimm Power PCL, Class A, NVDR

   Independent Power Producers & Energy Traders        2,400          1,895  

 

           
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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry          Shares                Value  
 

Common Stocks (continued)

            
    Thailand (continued)                       
 

Bangkok Bank PCL, Class A, fgn.

   Banks        1,800        $ 8,280  
 

Bangkok Bank PCL, Class A, NVDR

   Banks        1,200          5,520  
 

Bangkok Dusit Medical Services PCL, Class A, NVDR

   Health Care Providers & Services        44,400          32,618  
 

Bangkok Expressway & Metro PCL, Class H, NVDR

   Transportation Infrastructure        32,400          7,385  
 

Bangkok Life Assurance PCL, Class A, NVDR

   Insurance        2,400          1,829  
 

Banpu PCL, Class A, NVDR

   Oil, Gas & Consumable Fuels        24,000          5,273  
 

Berli Jucker PCL, Class A, NVDR

   Consumer Staples Distribution & Retail        4,200          3,547  
 

BTS Group Holdings PCL, Class A, NVDR

   Ground Transportation        33,600          6,921  
 

Bumrungrad Hospital PCL, NVDR

   Health Care Providers & Services        2,400          17,664  
 

Carabao Group PCL, Class A, NVDR

   Beverages        1,200          2,702  
 

Central Pattana PCL, Class A, NVDR

   Real Estate Management & Development        10,800          18,760  
 

Central Retail Corp. PCL, Class A, NVDR

   Broadline Retail        10,800          11,493  
 

Charoen Pokphand Foods PCL, Class A, NVDR

   Food Products        19,200          10,915  
 

CP ALL PCL, Class B, NVDR

   Consumer Staples Distribution & Retail        24,000          39,876  
 

CP Axtra PCL, NVDR

   Consumer Staples Distribution & Retail        6,000          5,314  
 

Delta Electronics Thailand PCL, Class A, NVDR

   Electronic Equipment, Instruments & Components        11,400          25,907  
 

Digital Telecommunications Infrastructure Fund, Class A, UNIT

   Financial Services        22,200          5,548  
 

Electricity Generating PCL, Class A, NVDR

   Independent Power Producers & Energy Traders        1,200          3,988  
 

Energy Absolute PCL, Class A, NVDR

   Independent Power Producers & Energy Traders        6,600          9,244  
 

Global Power Synergy PCL, NVDR

   Independent Power Producers & Energy Traders        3,000          3,687  
 

Gulf Energy Development PCL, NVDR

   Independent Power Producers & Energy Traders        12,000          14,995  
 

Home Product Center PCL, NVDR

   Specialty Retail        24,000          8,239  
 

Indorama Ventures PCL, NVDR

   Chemicals        7,200          5,141  
 

Intouch Holdings PCL, NVDR

   Wireless Telecommunication Services        3,600          7,291  
 

IRPC PCL, NVDR

   Oil, Gas & Consumable Fuels        41,400          2,342  
 

Kasikornbank PCL, fgn.

   Banks        5,000          17,302  
 

Kasikornbank PCL, NVDR

   Banks        1,600          5,537  
 

Krung Thai Bank PCL, NVDR

   Banks        26,400          13,776  
 

Krungthai Card PCL, NVDR

   Consumer Finance        5,400          6,525  
 

Land & Houses PCL, NVDR

   Real Estate Management & Development        33,000          7,069  
 

Minor International PCL, NVDR

   Hotels, Restaurants & Leisure        16,200          13,903  
 

Muangthai Capital PCL, NVDR

   Consumer Finance        3,000          2,966  
 

Osotspa PCL, NVDR

   Beverages        5,400          3,708  
 

PTT Exploration & Production PCL, NVDR

   Oil, Gas & Consumable Fuels        5,400          25,359  
 

PTT Global Chemical PCL, NVDR

   Chemicals        8,400          7,959  
 

PTT Oil & Retail Business PCL, NVDR

   Specialty Retail        11,400          5,855  
 

PTT PCL, NVDR

   Oil, Gas & Consumable Fuels        57,600          52,993  
 

Ratch Group PCL, NVDR

   Independent Power Producers & Energy Traders        4,200          3,633  
 

SCB X PCL, NVDR

   Banks        6,600          18,579  
 

SCG Packaging PCL, NVDR

   Containers & Packaging        4,800          5,042  
 

Siam Cement PCL, NVDR

   Construction Materials        3,000          24,799  
 

Siam City Cement PCL, NVDR

   Construction Materials        600          2,200  
 

Srisawad Corp. PCL, NVDR

   Consumer Finance        2,400          2,818  
 

Thai Life Insurance PCL, NVDR

   Insurance        9,600          3,427  
 

Thai Oil PCL, NVDR

   Oil, Gas & Consumable Fuels        4,200          5,825  
 

Thai Union Group PCL, NVDR

   Food Products        10,800          4,301  
 

TMBThanachart Bank PCL, NVDR

   Banks        180,000          8,503  
 

True Corp. PCL, NVDR

   Diversified Telecommunication Services        43,200          8,423  
              

 

 

 
                 581,790  
              

 

 

 
    United Kingdom 0.2%                       
 

CK Hutchison Holdings Ltd., Class A

   Industrial Conglomerates        10,500          56,174  
              

 

 

 

 

           
146             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    United States 0.2%                         
b  

JS Global Lifestyle Co. Ltd.

     Household Durables          5,000        $ 830  
 

Parade Technologies Ltd.

     Semiconductors & Semiconductor Equipment          300          9,145  
a,b  

Samsonite International SA

     Textiles, Apparel & Luxury Goods          5,400          18,547  
a  

SharkNinja, Inc.

     Household Durables          220          10,199  
              

 

 

 
                 38,721  
              

 

 

 
 

Total Common Stocks
(Cost $26,754,467)

               24,364,422  
              

 

 

 
 

Preferred Stocks 0.7%

            
    South Korea 0.7%                         
e  

Amorepacific Corp., 1.908%, pfd.

     Personal Care Products          42          1,117  
e  

CJ CheilJedang Corp., 1.494%, pfd.

     Food Products          6          595  
e  

Hyundai Motor Co., 1.416%, pfd.

     Automobiles          144          11,301  
e  

Hyundai Motor Co., 1.427%, pfd.

     Automobiles          90          7,010  
e  

LG Chem Ltd., 3.221%, pfd.

     Chemicals          30          6,936  
e  

LG Electronics, Inc., 1.659%, pfd.

     Household Durables          66          2,211  
e  

LG H&H Co. Ltd., 2.322%, pfd.

     Personal Care Products          10          1,293  
e  

Samsung Electronics Co. Ltd., 1.989%, pfd.

     Technology Hardware, Storage & Peripherals          3,330          134,493  
e  

Samsung Fire & Marine Insurance Co. Ltd., 7.3%, pfd.

     Insurance          12          1,682  
e  

Samsung SDI Co. Ltd., 0.442%, pfd.

     Electronic Equipment, Instruments & Components          6          1,087  
              

 

 

 
 

Total Preferred Stocks
(Cost $164,004)

               167,725  
              

 

 

 
    Right 0.0%                         
 

South Korea 0.0%

            
a  

Hanwha Ocean Co. Ltd.

     Machinery          65          439  
              

 

 

 
 

Total Rights (Cost $0)

               439  
              

 

 

 
 

Total Investments
(Cost $26,918,471) 100.1%

               24,532,586  
 

Other Assets, less Liabilities (0.1)%

               (16,394
              

 

 

 
 

Net Assets 100.0%

             $ 24,516,192  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $1,374,496, representing 5.6% of net assets.

cVariable interest entity (VIE). See the Fund’s statement of additional information and/or notes to financial statements regarding investments made through a VIE structure. At September 30, 2023, the aggregate value of these securities was $3,672,513, representing 15.0% of net assets.

dFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

eVariable rate security. The rate shown represents the yield at period end.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Equity Contracts                                   

MSCI China Futures

     Long        2      $ 44,560        12/15/23      $ (1,605

*As of period end.

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Asia ex Japan ETF (continued)

 

Futures Contracts (continued)

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Australia ETF

 

   

Six Months Ended

September 30, 2023

(unaudited)

     Year Ended March 31,  
      2023      2022      2021      2020      2019  

Per share operating performance

(for a share outstanding throughout the period)

                

Net asset value, beginning of period

  $ 26.76      $ 31.55      $ 29.12      $ 17.38      $ 24.63      $ 24.67  
 

 

 

 
Income from investment operationsa:                 

Net investment incomeb

    0.55        1.60        1.48        0.81        1.07        1.29  

Net realized and unrealized gains (losses)

    (1.30      (4.84      2.47        11.55        (7.18      (0.37
 

 

 

 

Total from investment operations

    (0.75      (3.24      3.95        12.36        (6.11      0.92  
 

 

 

 

Less distributions from net investment income

    (0.48      (1.55      (1.52      (0.62      (1.14      (0.96
 

 

 

 

Net asset value, end of period

  $ 25.53      $ 26.76      $ 31.55      $ 29.12      $ 17.38      $ 24.63  
 

 

 

 

Total returnc

    (2.93)%        (9.90)%        13.93%        71.72%        (26.23)%        4.00%  
Ratios to average net assetsd                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    4.14%        5.94%        4.93%        3.25%        4.28%        5.30%  
Supplemental data                 

Net assets, end of period (000’s)

    $29,359        $29,437        $29,968        $23,295        $7,820        $7,389  

Portfolio turnover ratee

    3.42% f        5.88% f        15.26% f       6.98% f        8.16% f        4.56%  

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

bBased on average daily shares outstanding.

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

dRatios are annualized for periods less than one year.

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

f Portfolio turnover rate excluding cash creations was as follows:     3.42%        5.88%        15.26%        6.98%        8.16%         

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Australia ETF

 

           Industry            Shares                Value  
 

Common Stocks 98.4%

            
    Australia 95.6%                         
a  

Adbri Ltd.

     Construction Materials          11,017        $ 14,434  
 

AGL Energy Ltd.

     Multi-Utilities          14,168          98,115  
a  

Allkem Ltd.

     Metals & Mining          13,823          104,915  
 

ALS Ltd.

     Professional Services          11,454          84,791  
 

Altium Ltd.

     Software          2,783          77,612  
a  

Alumina Ltd.

     Metals & Mining          59,248          36,518  
 

AMP Ltd.

     Financial Services          66,148          53,578  
 

Ampol Ltd.

     Oil, Gas & Consumable Fuels          5,658          123,426  
 

Ansell Ltd.

     Health Care Equipment & Supplies          2,990          42,705  
 

ANZ Group Holdings Ltd.

     Banks          71,024          1,176,226  
 

APA Group

     Gas Utilities          29,831          159,799  
 

Aristocrat Leisure Ltd.

     Hotels, Restaurants & Leisure          15,502          408,704  
 

ASX Ltd.

     Capital Markets          4,577          168,732  
 

Atlas Arteria Ltd.

     Transportation Infrastructure          34,362          122,640  
 

Aurizon Holdings Ltd.

     Ground Transportation          41,952          94,495  
 

Bank of Queensland Ltd.

     Banks          15,571          57,684  
 

Beach Energy Ltd.

     Oil, Gas & Consumable Fuels          41,653          44,088  
 

Bendigo & Adelaide Bank Ltd.

     Banks          13,455          77,547  
 

BHP Group Ltd.

     Metals & Mining          119,025          3,399,228  
 

BlueScope Steel Ltd.

     Metals & Mining          10,764          135,051  
a  

Boral Ltd.

     Construction Materials          7,659          21,997  
 

Brambles Ltd.

     Commercial Services & Supplies          32,844          303,548  
 

carsales.com Ltd.

     Interactive Media & Services          8,533          153,871  
 

Challenger Ltd.

     Financial Services          10,534          43,647  
 

Charter Hall Group

     Diversified REITs          11,155          68,323  
 

Cleanaway Waste Management Ltd.

     Commercial Services & Supplies          52,624          82,531  
 

Cochlear Ltd.

     Health Care Equipment & Supplies          1,518          250,141  
 

Coles Group Ltd.

     Consumer Staples Distribution & Retail          30,728          308,584  
 

Commonwealth Bank of Australia

     Banks          39,905          2,574,696  
 

Computershare Ltd.

     Professional Services          14,122          236,608  
 

CSL Ltd.

     Biotechnology          11,385          1,842,848  
 

CSR Ltd.

     Construction Materials          11,201          40,845  
 

Deterra Royalties Ltd.

     Metals & Mining          10,097          31,214  
 

Dexus

     Office REITs          25,438          119,849  
 

Domain Holdings Australia Ltd.

     Interactive Media & Services          5,980          15,438  
 

Domino’s Pizza Enterprises Ltd.

     Hotels, Restaurants & Leisure          1,472          50,522  
 

Downer EDI Ltd.

     Commercial Services & Supplies          15,916          42,321  
 

Endeavour Group Ltd.

     Consumer Staples Distribution & Retail          32,407          110,225  
 

Evolution Mining Ltd.

     Metals & Mining          41,032          87,126  
 

Flight Centre Travel Group Ltd.

     Hotels, Restaurants & Leisure          3,749          46,892  
 

Fortescue Metals Group Ltd.

     Metals & Mining          37,605          507,734  
 

Goodman Group

     Industrial REITs          43,631          604,020  
 

GPT Group

     Diversified REITs          45,264          113,932  
 

Harvey Norman Holdings Ltd.

     Broadline Retail          14,168          35,387  
 

IDP Education Ltd.

     Diversified Consumer Services          6,601          91,085  
 

IGO Ltd.

     Metals & Mining          14,720          120,274  
 

Iluka Resources Ltd.

     Metals & Mining          9,982          49,477  
 

Incitec Pivot Ltd.

     Chemicals          46,046          93,315  
 

Insignia Financial Ltd.

     Capital Markets          15,341          23,961  
 

Insurance Australia Group Ltd.

     Insurance          57,822          211,968  
 

JB Hi-Fi Ltd.

     Specialty Retail          2,576          75,513  
 

Lendlease Corp. Ltd.

     Real Estate Management & Development          16,376          75,886  
a  

Liontown Resources Ltd.

     Metals & Mining          40,687          77,203  
 

Lottery Corp. Ltd.

     Hotels, Restaurants & Leisure          52,489          159,897  
a  

Lynas Rare Earths Ltd.

     Metals & Mining          22,126          96,962  
 

Macquarie Group Ltd.

     Capital Markets          8,602          931,192  
 

Magellan Financial Group Ltd.

     Capital Markets          3,243          19,298  

 

           
150             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Australia ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    Australia (continued)                         
 

Medibank Pvt Ltd.

     Insurance          65,251        $ 144,869  
 

Metcash Ltd.

     Consumer Staples Distribution & Retail          22,885          55,830  
 

Mineral Resources Ltd.

     Metals & Mining          4,048          176,689  
 

Mirvac Group

     Diversified REITs          93,403          128,401  
 

National Australia Bank Ltd.

     Banks          74,221          1,392,518  
 

New Hope Corp.. Ltd.

     Oil, Gas & Consumable Fuels          12,512          51,278  
 

Newcrest Mining Ltd.

     Metals & Mining          21,137          334,497  
a  

NEXTDC Ltd.

     IT Services          12,098          96,742  
 

Northern Star Resources Ltd.

     Metals & Mining          26,519          179,027  
 

Nufarm Ltd.

     Chemicals          8,924          27,358  
 

Orica Ltd.

     Chemicals          10,764          108,305  
 

Origin Energy Ltd.

     Electric Utilities          40,641          230,297  
 

Orora Ltd.

     Containers & Packaging          31,901          56,619  
 

Perpetual Ltd.

     Capital Markets          2,668          36,074  
 

Pilbara Minerals Ltd.

     Metals & Mining          67,827          188,235  
 

Platinum Asset Management Ltd.

     Capital Markets          12,558          10,536  
 

Pro Medicus Ltd.

     Health Care Technology          989          53,228  
a  

Qantas Airways Ltd.

     Passenger Airlines          19,987          66,820  
 

QBE Insurance Group Ltd.

     Insurance          35,213          357,033  
 

Qube Holdings Ltd.

     Transportation Infrastructure          39,790          73,703  
 

Ramsay Health Care Ltd.

     Health Care Providers & Services          4,117          137,824  
 

REA Group Ltd.

     Interactive Media & Services          1,196          119,119  
 

Reece Ltd.

     Trading Companies & Distributors          4,968          59,734  
 

Region RE Ltd.

     Retail REITs          27,347          35,652  
 

Rio Tinto Ltd.

     Metals & Mining          8,786          643,883  
 

Santos Ltd.

     Oil, Gas & Consumable Fuels          69,621          354,974  
 

Scentre Group

     Retail REITs          122,406          194,342  
 

SEEK Ltd.

     Interactive Media & Services          8,303          118,268  
 

Seven Group Holdings Ltd.

     Trading Companies & Distributors          3,358          67,510  
 

Sonic Healthcare Ltd.

     Health Care Providers & Services          10,603          203,927  
 

South32 Ltd.

     Metals & Mining          107,709          235,657  
a  

Star Entertainment Group Ltd.

     Hotels, Restaurants & Leisure          34,270          13,492  
a  

Star Entertainment Group Ltd.

     Hotels, Restaurants & Leisure          20,770          8,177  
 

Steadfast Group Ltd.

     Insurance          24,357          88,661  
 

Stockland

     Diversified REITs          56,511          142,971  
 

SunCorp. Group Ltd.

     Insurance          29,923          269,793  
 

TabCorp. Holdings Ltd.

     Hotels, Restaurants & Leisure          53,128          32,231  
 

Telstra Group Ltd.

     Diversified TeleCommunication Services          95,381          237,002  
 

TPG TeleCom Ltd.

     Diversified TeleCommunication Services          8,809          31,042  
 

Transurban Group

     Transportation Infrastructure          72,772          596,012  
 

Treasury Wine Estates Ltd.

     Beverages          17,112          136,174  
 

Vicinity Ltd.

     Retail REITs          89,447          97,851  
 

Washington H Soul Pattinson & Co.. Ltd.

     Financial Services          6,256          131,586  
 

Wesfarmers Ltd.

     Broadline Retail          26,772          913,349  
 

Westpac Banking Corp.

     Banks          82,547          1,126,784  
 

Whitehaven Coal Ltd.

     Oil, Gas & Consumable Fuels          16,514          75,779  
 

WiseTech Global Ltd.

     Software          3,818          160,292  
 

Woodside Energy Group Ltd.

     Oil, Gas & Consumable Fuels          44,689          1,052,455  
 

Woolworths Group Ltd.

     Consumer Staples Distribution & Retail          28,819          694,144  
 

Worley Ltd.

     Construction & Engineering          8,924          100,274  
 

YanCo.al Australia Ltd.

     Oil, Gas & Consumable Fuels          3,933          13,123  
              

 

 

 
                 28,058,759  
              

 

 

 
    Ireland 0.9%                         
a  

James Hardie Industries PLC, CDI

     Construction Materials          10,396          273,684  
              

 

 

 
    New Zealand 0.7%                         
a  

Xero Ltd.

     Software          3,013          218,630  
              

 

 

 

 

 

           
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             151


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Australia ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    United Kingdom 1.1%                         
 

AmCor PLC, CDI

     Containers & Packaging          34,224        $ 314,756  
              

 

 

 
    United States 0.1%                         
 

Sims Ltd.

     Metals & Mining          3,726          32,536  
              

 

 

 
 

Total Common Stocks (Cost $29,147,689)

               28,898,365  
              

 

 

 
 

Right 0.0%

            
    Australia 0.0%                         
a  

Star Entertainment Group Ltd.

     Hotels, Restaurants & Leisure          20,770          134  
              

 

 

 
 

Total Rights (Cost $0)

               134  
              

 

 

 
 

Total Investments (Cost $29,147,689) 98.4% .

               28,898,499  
 

Other Assets, less Liabilities 1.6%

               460,383  
              

 

 

 
 

Net Assets 100.0%

             $ 29,358,882  
              

 

 

 

†Rounds to less than 0.1% of net assets.

aNon-Income producing.

At September 30, 2023, the Fund had the following futures Contracts outstanding. See Note 1(c).

Futures Contracts

 

Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts                                   

SPI 200 FUTURES DEC23

     Long        4      $ 457,330        12/21/23      $ (15,318

*As of period end.

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
152             

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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Brazil ETF

 

    Six Months
Ended
September 30,
2023
     Year Ended March 31,  
     (unaudited)      2023     2022      2021      2020     2019  
Per share operating performance               

(for a share outstanding throughout the period)

              

Net asset value, beginning of period

  $ 16.81      $ 23.56     $ 20.70      $ 14.46      $ 25.72     $ 27.87  
 

 

 

    

 

 

 
              
Inc.ome from investment operationsa:               

Net investment Inc.omeb

    0.87        2.06       1.84        0.46        1.07       0.80  

Net realized and unrealized gains (losses)

    1.90        (6.74     2.55        6.31        (11.33     (2.07
 

 

 

    

 

 

 

Total from investment operations

    2.77        (4.68     4.39        6.77        (10.26     (1.27
 

 

 

    

 

 

 

Less distributions from net investment Inc.ome

    (1.14      (2.07     (1.53      (0.53      (1.00     (0.88
 

 

 

    

 

 

 

Net asset value, end of period

  $ 18.44      $ 16.81     $ 23.56      $ 20.70      $ 14.46     $ 25.72  
 

 

 

    

 

 

 

Total returnc

    16.15%        (19.57 )%      23.03%        46.83%        (41.69 )%      (3.98 )% 
Ratios to average net assetsd               

Total expenses

    0.19%        0.19%       0.19%        0.19%        0.23%       0.19%  

Net investment Inc.ome

    9.42%        10.93%       8.87%        2.43%        4.26%       3.37%  
Supplemental data               

Net assets, end of period (000’s)

    $127,236        $268,914       $527,820        $107,656        $102,700       $20,579  

Portfolio turnover ratee

    7.94%f        52.70%f       17.71%f        21.01%f        36.07%f       39.76%  

 

a The amount shown for a share outstanding throughout the period may not Correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to Income earned and/or fluctuating fair value of the investments of the Fund. b Based on average daily shares outstanding. c Total return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period. d Ratios are annualized for periods less than one year. ePortfolio turnover rate Includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

f Portfolio turnover rate excluding cash creations was as follows:      2.48     13.82     14.95     9.31     17.47      

 

 

           
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             153


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Brazil ETF

 

           Industry        Shares        Value  
 

Common Stocks 70.4%

            
    Brazil 69.2%                         
 

Aliansce Sonae Shopping Centers SA

     Real Estate Management & Development          144,900        $ 653,978  
 

Alupar Investimento SA, UNIT

     Electric Utilities        34,500          198,238  
 

Ambev SA

     Beverages          1,352,400          3,542,309  
 

Atacadao SA

     Consumer Staples Distribution & Retail          165,600          294,462  
 

Auren Energia SA

     Independent Power Producers & Energy Traders        110,443          302,961  
 

B3 SA—Brasil Bolsa Balcao

     Capital Markets          1,780,200          4,371,186  
 

Banco Bradesco SA

     Banks          469,200          1,186,780  
 

Banco BTG Pactual SA

     Capital Markets          407,100          2,527,091  
 

Banco do Brasil SA

     Banks          266,604          2,513,062  
 

Banco Santander Brasil SA

     Banks          117,300          610,498  
 

BB Seguridade Participacoes SA

     Insurance          207,000          1,290,752  
 

Bradespar SA

     Metals & Mining          6,900          28,881  
a  

BRF SA

     Food Products          289,800          589,999  
 

Caixa Seguridade Participacoes SA

     Insurance          138,000          307,696  
 

CCR SA

     Transportation Infrastructure          345,000          888,486  
 

Centrais Eletricas Brasileiras SA

     Electric Utilities          407,100          3,000,463  
 

Cia de Saneamento Basico do Estado de Sao

            
 

Paulo SABESP

     Water Utilities          105,500          1,286,395  
 

Cia Energetica de Minas Gerais

     Electric Utilities          103,500          394,959  
 

Cia Paranaense de Energia

     Electric Utilities          241,500          405,781  
 

Cia Siderurgica Nacional SA

     Metals & Mining          193,200          468,602  
 

Cielo SA

     Financial Services          358,800          251,616  
 

Cosan SA

     Oil, Gas & Consumable Fuels          372,600          1,275,946  
 

CPFL Energia SA

     Electric Utilities          55,200          370,669  
 

CSN Mineracao SA

     Metals & Mining          165,600          160,465  
 

Dexco SA

     Paper & Forest Products          103,760          159,624  
 

Diagnosticos da America SA

     Health Care Providers & Services        82,800          204,634  
a  

Embraer SA

     Aerospace & Defense          227,700          783,384  
 

Energisa SA

     Electric Utilities          89,780          838,571  
a  

Eneva SA

     Independent Power Producers & Energy Traders          379,500          914,403  
 

Engie Brasil Energia SA

     Independent Power Producers & Energy Traders        55,200          456,912  
 

Equatorial Energia SA

     Electric Utilities          269,104          1,723,702  
b  

GPS Participacoes e Empreendimentos SA

     Commercial Services & Supplies          131,100          450,254  
 

Grupo De Moda Soma SA

     Textiles, Apparel & Luxury Goods          138,000          183,349  
a  

Grupo Mateus SA

     Consumer Staples Distribution & Retail          124,200          169,729  
a,b  

Hapvida Participacoes e Investimentos SA

     Health Care Providers & Services          1,476,600          1,386,562  
 

Hypera SA

     Pharmaceuticals          124,200          921,599  
 

Intelbras SA Industria de Telecomunicacao

            
 

Eletronica Brasileira

     Communications Equipment          20,700          85,609  
 

Itau Unibanco Holding SA

     Banks          138,000          635,795  
 

Klabin SA

     Containers & Packaging          234,600          1,116,005  
 

Localiza Rent a Car SA

     Ground Transportation          261,281          3,056,944  
 

Lojas Renner SA

     Specialty Retail          296,730          794,410  
 

M Dias Branco SA

     Food Products          38,600          281,719  
a  

Magazine Luiza SA

     Broadline Retail          945,300          400,391  
 

Multiplan Empreendimentos Imobiliarios SA

     Real Estate Management & Development          89,700          440,328  
a  

Natura & Co. Holding SA

     Personal Care Products          296,716          863,139  
 

Neoenergia SA

     Electric Utilities          69,000          253,794  
 

Petroleo Brasileiro SA

     Oil, Gas & Consumable Fuels          1,149,100          8,698,833  
 

Porto Seguro SA

     Insurance          55,200          289,940  
a  

PRIO SA

     Oil, Gas & Consumable Fuels          207,000          1,945,433  
 

Raia Drogasil SA

     Consumer Staples Distribution & Retail          345,044          1,904,043  
b  

Rede D’Or Sao Luiz SA

     Health Care Providers & Services          241,502          1,226,038  
 

Rumo SA

     Ground Transportation          386,400          1,761,697  
 

Sao Martinho SA

     Food Products          48,300          378,858  
 

Sendas Distribuidora SA

     Consumer Staples Distribution & Retail          420,900          1,022,565  
 

SLC Agricola SA

     Food Products          33,340          262,380  

 

           
154             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Brazil ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    Brazil (continued)                         
a  

Smartfit Escola de Ginastica e Danca SA

     Hotels, Restaurants & Leisure          34,500        $ 148,196  
 

Suzano SA

     Paper & Forest Products          218,900          2,373,910  
 

Telefonica Brasil SA

     Diversified TelecommunicationServices        136,500          1,177,589  
 

TIM SA

     Wireless Telecommunication Services        255,300          759,494  
 

TOTVS SA

     Software          138,000          744,426  
 

Transmissora Alianca de Energia Eletrica SA

     Electric Utilities          69,000          476,432  
 

Ultrapar Participacoes SA

     Oil, Gas & Consumable Fuels          255,300          956,380  
 

Usinas Siderurgicas de Minas Gerais SA Usiminas .

     Metals & Mining          55,200          76,538  
 

Vale SA

     Metals & Mining          1,176,700          15,887,754  
 

Vamos Locacao de Caminhoes Maquinas e

            
 

Equipamentos SA

     Ground Transportation          117,300          228,497  
 

Vibra Energia SA

     Specialty Retail          345,000          1,304,124  
 

WEG SA

     Electrical Equipment          462,300          3,350,040  
                 88,015,299  
              

 

 

 
    United States 1.2%                         
 

JBS SA

     Food Products          420,900          1,517,870  
              

 

 

 
 

Total Common Stocks
(Cost $74,288,116)

               89,533,169  
              

 

 

 
 

Preferred Stocks 26.4%

            
    Brazil 26.4%                         
a,c  

Alpargatas SA, pfd

     Textiles, Apparel & Luxury Goods          75,900          122,072  
c  

Banco Bradesco SA, 5.993%, pfd

     Banks          1,614,600          4,612,959  
c  

Bradespar SA, 12.315%, pfd

     Metals & Mining          75,984          344,913  
a,c  

Braskem SA, Class A, pfd

     Chemicals          55,200          226,306  
c  

Centrais Eletricas Brasileiras SA, Class B, 3.703%, pfd

     Electric Utilities          86,800          699,748  
c  

Cia Energetica de Minas Gerais, 7.703%, pfd

     Electric Utilities          393,300          975,157  
c  

Cia Paranaense de Energia, 3.482%, pfd.

     Electric Utilities          407,100          728,765  
c  

CTEEP-Cia de Transmissao de Energia Eletrica

            
 

Paulista, 3.859%, pfd.

     Electric Utilities          62,100          290,326  
c  

Gerdau SA, 12.607%, pfd.

     Metals & Mining          331,200          1,596,711  
c  

Itau Unibanco Holding SA, 4.671%, pfd.

     Banks          1,497,300          8,139,841  
c  

Itausa SA, 6.464%, pfd.

     Banks          1,621,510          2,931,884  
a,c  

Itausa SA, pfd.

     Banks          21,153          38,247  
c  

Metalurgica Gerdau SA, 9.758%, pfd.

     Metals & Mining          207,000          461,130  
c  

Petroleo Brasileiro SA, 9.792%, pfd

     Oil, Gas & Consumable Fuels          1,738,800          12,033,891  
c  

Unipar Carbocloro SA, Class B, 8.522%, pfd.

     Chemicals          15,840          256,436  
c  

Usinas Siderurgicas de Minas Gerais SA Usiminas,

            
 

Class A, 4.955%, pfd.

     Metals & Mining          144,900          192,227  
              

 

 

 
 

Total Preferred Stocks
(Cost $27,957,014)

               33,650,613  
              

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Brazil ETF (continued)

 

           Industry        Shares        Value  
 

Right 0.0%

            
    Brazil 0.0%                         
a  

Localiza Rent a Car SA

     Ground Transportation          1,915        $ 6,121  
              

 

 

 
 

Total Rights (Cost $0)

               6,121  
              

 

 

 
 

Total Investments (Cost $102,245,130) 96.8%

               123,189,903  
 

Other Assets, less Liabilities 3.2%

               4,045,865  
              

 

 

 
 

Net Assets 100.0%

             $ 127,235,768  
              

 

 

 

†Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $3,062,854, representing 2.4% of net assets.

cVariable rate security. The rate shown represents the yield at period end.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Equity Contracts                                   

Bovespa Index

     Long        180      $ 4,215,608        10/18/23      $ (89,896

*As of period end.

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
156             

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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Canada ETF

 

    Six Months Ended
September 30, 2023
(unaudited)
     Year Ended March 31,  
      2023      2022      2021      2020      2019  

 

Per share operating performance (for a share outstanding throughout the period)

                

 

Net asset value, beginning of period

  $ 30.76      $ 36.07      $ 30.20      $ 19.50      $ 24.13      $ 23.77  
 

 

 

 

 

Income from investment operationsa:

                

Net investment incomeb

    0.46        0.92        0.80        0.75        0.69        0.67  

 

Net realized and unrealized gains (losses)

    (0.69      (5.58      5.77        10.63        (4.72      0.33  
 

 

 

 

Total from investment operations

    (0.23      (4.66      6.57        11.38        (4.03      1.00  
 

 

 

 

 

Less distributions from net investment income

    (0.30      (0.65      (0.70      (0.68      (0.60      (0.64
 

 

 

 

Net asset value, end of period

  $ 30.23      $ 30.76      $ 36.07      $ 30.20      $ 19.50      $ 24.13  
 

 

 

 

Total returnc

    (0.77)%        (12.82)%        21.95%        59.10%        (17.25)%        4.48%  
Ratios to average net assetsd                 

 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    2.97%        3.00%        2.37%        2.88%        2.73%        2.79%  
Supplemental data                 

Net assets, end of period (000’s)

    $331,027        $279,927        $43,289        $24,160        $4,876        $4,827  

 

Portfolio turnover ratee

    3.45%f        5.27%f        5.63%f        3.14%f        4.57%f        6.95%  

a The amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

b Based on average daily shares outstanding.

c Total return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

d Ratios are annualized for periods less than one year.

e Portfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

f Portfolio turnover rate excluding cash creations was as follows:     2.41%        5.27%        5.63%        3.14%        4.57%         

 

           
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             157


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Canada ETF

 

           Industry        Shares        Value  
 

Common Stocks 99.5%

            
    Canada 97.2%                         
 

Agnico Eagle Mines Ltd.

     Metals & Mining          99,645        $ 4,548,883  
 

Alimentation Couche-Tard, Inc.

     Consumer Staples Distribution & Retail          163,374          8,335,458  
 

Bank of Montreal

     Banks          154,614          13,103,308  
 

Bank of Nova Scotia

     Banks          259,734          11,695,714  
 

Barrick Gold Corp.

     Metals & Mining          382,593          5,583,254  
 

BCE, Inc.

     Diversified Telecommunication Services          66,138          2,536,431  
 

Brookfield Asset Management Ltd., Class A

     Capital Markets          58,911          1,972,124  
 

Brookfield Corp.

     Capital Markets          327,186          10,277,803  
 

Canadian Imperial Bank of Commerce, Class A

     Banks          192,063          7,448,124  
 

Canadian National Railway Co.

     Ground Transportation          126,801          13,795,236  
 

Canadian Natural Resources Ltd.

     Oil, Gas & Consumable Fuels          232,797          15,124,918  
 

Canadian Pacific Kansas City Ltd.

     Ground Transportation          202,356          15,110,845  
 

Canadian Tire Corp. Ltd., Class A

     Broadline Retail          11,388          1,230,190  
 

Cenovus Energy, Inc.

     Oil, Gas & Consumable Fuels          302,220          6,321,584  
a  

CGI, Inc., Class A

     IT Services          45,990          4,554,099  
 

Constellation Software, Inc.

     Software          4,151          8,609,242  
 

Dollarama, Inc.

     Broadline Retail          59,130          4,092,741  
 

Enbridge, Inc.

     Oil, Gas & Consumable Fuels          460,338          15,338,925  
 

Fairfax Financial Holdings Ltd.

     Insurance          4,698          3,852,812  
 

Fortis, Inc.

     Electric Utilities          105,558          4,027,912  
 

Franco-Nevada Corp.

     Metals & Mining          41,391          5,551,354  
 

George Weston Ltd.

     Consumer Staples Distribution & Retail          14,673          1,634,759  
 

Great-West Lifeco, Inc.

     Insurance          58,893          1,692,738  
b  

Hydro One Ltd.

     Electric Utilities          68,529          1,752,761  
 

IGM Financial, Inc.

     Capital Markets          17,739          452,003  
 

Imperial Oil Ltd.

     Oil, Gas & Consumable Fuels          38,763          2,398,604  
 

Intact Financial Corp.

     Insurance          38,325          5,613,252  
 

Loblaw Cos. Ltd.

     Consumer Staples Distribution & Retail          33,507          2,859,991  
 

Magna International, Inc.

     Automobile Components          58,035          3,124,532  
 

Manulife Financial Corp.

     Insurance          406,464          7,461,861  
 

Metro, Inc., Class A

     Consumer Staples Distribution & Retail          50,792          2,650,050  
 

National Bank of Canada

     Banks          73,146          4,881,630  
 

Nutrien Ltd.

     Chemicals          108,843          6,752,774  
 

Pembina Pipeline Corp.

     Oil, Gas & Consumable Fuels          119,775          3,618,055  
 

Power Corp. of Canada

     Insurance          117,147          2,996,260  
 

Restaurant Brands International, Inc.

     Hotels, Restaurants & Leisure          67,014          4,483,296  
 

Royal Bank of Canada

     Banks          302,001          26,514,437  
 

Saputo, Inc.

     Food Products          52,980          1,112,894  
a  

Shopify, Inc., Class A

     IT Services          248,346          13,618,619  
 

Sun Life Financial, Inc.

     Insurance          127,896          6,268,985  
 

Suncor Energy, Inc.

     Oil, Gas & Consumable Fuels          287,985          9,949,541  
 

TC Energy Corp.

     Oil, Gas & Consumable Fuels          224,256          7,747,779  
 

Teck Resources Ltd., Class B

     Metals & Mining          97,236          4,204,450  
 

TELUS Corp.

     Diversified Telecommunication Services          104,025          1,706,564  
 

Thomson Reuters Corp.

     Professional Services          34,164          4,198,735  
 

Toronto-Dominion Bank

     Banks          396,171          23,978,308  
 

Tourmaline Oil Corp.

     Oil, Gas & Consumable Fuels          62,196          3,144,302  
 

Wheaton Precious Metals Corp.

     Metals & Mining          98,331          4,008,879  
              

 

 

 
                 321,937,016  
              

 

 

 
 

United States 2.3%

            
 

Waste Connections, Inc.

     Commercial Services & Supplies          56,064          7,562,420  
              

 

 

 
 

Total Common Stocks (Cost $356,955,305)

               329,499,436  
              

 

 

 

 

           
158             

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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

 

Franklin FTSE Canada ETF (continued)

 

           Industry        Shares        Value  
 

Warrant 0.0%

            
    Canada 0.0%                         
a,c  

Constellation Software, Inc.

     Software          3,981        $  
              

 

 

 
 

Total Warrants (Cost $0)

                
              

 

 

 
 

Total Investments (Cost $356,955,305) 99.5%

               329,499,436  
 

Other Assets, less Liabilities 0.5%

               1,527,358  
              

 

 

 
 

Net Assets 100.0%

             $ 331,026,794  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $1,752,761, representing 0.5% of net assets.

cFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts                                   

S&P/TSX 60 Index

     Long        8      $ 1,392,071        12/14/23      $ (24,971

*As of period end.

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
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The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             159


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE China ETF

 

   

Six Months Ended
September 30, 2023

(unaudited)

     Year Ended March 31,  
      2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 19.70      $ 21.43      $ 31.78      $ 22.19      $ 24.01      $ 25.99  
 

 

 

 

 

Income from investment operationsa:

                

 

Net investment incomeb

    0.36        0.54        0.49        0.32        0.45        0.40  

 

Net realized and unrealized gains (losses)

    (2.69      (1.77      (10.47      9.56        (1.78      (1.99
 

 

 

 

 

Total from investment operations

    (2.33      (1.23      (9.98      9.88        (1.33      (1.59
 

 

 

 

 

Less distributions from net investment income

    (0.19      (0.50      (0.37      (0.29      (0.49      (0.39
 

 

 

 

 

Net asset value, end of period

  $ 17.18      $ 19.70      $ 21.43      $ 31.78      $ 22.19      $ 24.01  
 

 

 

 

Total returnc

    (11.92)%        (5.68)%        (31.63)%        44.67%        (5.64)%        (5.94)%  
Ratios to average net assetsd                 

 

Expenses before waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        0.19%        0.19%  

Expenses net of waiver and payments by affiliates

    0.19%        0.19%        0.19%        0.19%        0.19%        —%  

 

Net investment income

    3.97%        2.82%        1.80%        1.06%        1.94%        1.70%  
Supplemental data                 

 

Net assets, end of period (000’s)

  $ 106,502      $ 114,234      $ 111,454      $ 120,782      $ 48,807      $ 43,220  

 

Portfolio turnover ratee

    5.73%f        9.69%f        12.78%f        15.97%f        32.47%f        7.21%  

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

bBased on average daily shares outstanding.

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

dRatios are annualized for periods less than one year.

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

fPortfolio turnover rate excluding cash creations was as follows:     5.73%                    9.69%                  12.00%               15.31%              32.47%                      —  

 

           
160             

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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE China ETF

 

           Industry        Shares        Value  
 

Common Stocks 99.7%

            
    China 96.3%                         
a  

360 Security Technology, Inc., Class A

     Software          27,900        $ 37,643  
 

37 Interactive Entertainment Network Technology Group Co. Ltd., Class A

     Entertainment          6,200          18,466  
 

3peak, Inc., Class A

     Semiconductors & Semiconductor Equipment          321          8,019  
b  

3SBio, Inc., Class A

     Biotechnology          93,000          77,779  
 

Addsino Co. Ltd., Class A

     Communications Equipment          6,200          7,310  
 

Advanced Micro-Fabrication Equipment, Inc. China, Class A

     Semiconductors & Semiconductor Equipment          2,325          48,043  
 

AECC Aero-Engine Control Co. Ltd., Class A

     Aerospace & Defense          6,200          18,270  
 

AECC Aviation Power Co. Ltd., Class A

     Aerospace & Defense          12,400          63,228  
 

Agricultural Bank of China Ltd., Class A

     Banks          350,300          173,089  
 

Agricultural Bank of China Ltd., Class H

     Banks          1,612,000          601,013  
 

Aier Eye Hospital Group Co. Ltd., Class A

     Health Care Providers & Services          36,184          89,246  
a  

Air China Ltd., Class A

     Passenger Airlines          34,100          37,817  
a  

Air China Ltd., Class H

     Passenger Airlines          86,000          58,088  
a,b  

Akeso, Inc.

     Biotechnology          26,600          122,270  
a,c  

Alibaba Group Holding Ltd., Class A

     Broadline Retail          894,048          9,771,703  
a,b  

A-Living Smart City Services Co. Ltd., Class H

     Real Estate Management & Development          38,750          21,869  
 

Aluminum Corp. of China Ltd., Class A

     Metals & Mining          52,700          45,425  
 

Aluminum Corp. of China Ltd., Class H

     Metals & Mining          186,000          104,021  
a  

Amlogic Shanghai Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          2,014          17,429  
 

Angang Steel Co. Ltd., Class A

     Metals & Mining          24,800          9,293  
 

Angang Steel Co. Ltd., Class H

     Metals & Mining          80,000          20,021  
 

Angel Yeast Co. Ltd., Class A

     Food Products          3,100          14,296  
b  

Angelalign Technology, Inc.

     Health Care Equipment & Supplies          2,400          14,908  
 

Anhui Anke Biotechnology Group Co. Ltd., Class A

     Biotechnology          7,316          9,991  
 

Anhui Conch Cement Co. Ltd., Class A

     Construction Materials          15,500          55,377  
 

Anhui Conch Cement Co. Ltd., Class H

     Construction Materials          65,430          174,188  
 

Anhui Expressway Co. Ltd., Class H

     Transportation Infrastructure          18,000          18,823  
 

Anhui Gujing Distillery Co. Ltd., Class A

     Beverages          1,500          55,959  
 

Anhui Gujing Distillery Co. Ltd., Class B

     Beverages          6,200          103,705  
 

Anhui Zhongding Sealing Parts Co. Ltd., Class A

     Automobile Components          6,200          10,280  
 

Anjoy Foods Group Co. Ltd., Class A

     Food Products          1,100          18,721  
 

ANTA Sports Products Ltd., Class A

     Textiles, Apparel & Luxury Goods          66,000          742,851  
 

Apeloa Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          6,200          15,309  
 

Asymchem Laboratories Tianjin Co. Ltd., Class A

     Pharmaceuticals          1,200          24,986  
c  

Autohome, Inc., ADR

     Interactive Media & Services          3,193          96,908  
 

Avary Holding Shenzhen Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          3,100          8,663  
 

AVIC Industry-Finance Holdings Co. Ltd., Class A

     Financial Services          34,100          16,381  
 

AviChina Industry & Technology Co. Ltd., Class H

     Aerospace & Defense          124,000          58,898  
 

Avicopter PLC, Class A

     Aerospace & Defense          3,100          16,105  
b  

BAIC Motor Corp. Ltd., Class H

     Automobiles          124,000          37,524  
a,c  

Baidu, Inc., Class A

     Interactive Media & Services          117,800          2,006,489  
 

Bank of Beijing Co. Ltd., Class A

     Banks          77,500          49,250  
 

Bank of Changsha Co. Ltd., Class A

     Banks          15,500          17,424  
 

Bank of Chengdu Co. Ltd., Class A

     Banks          6,200          11,709  
 

Bank of China Ltd., Class A

     Banks          167,400          86,621  
 

Bank of China Ltd., Class H

     Banks          3,999,000          1,399,064  
 

Bank of Communications Co. Ltd., Class A

     Banks          145,700          115,188  
 

Bank of Communications Co. Ltd., Class H

     Banks          372,000          225,142  
 

Bank of Guiyang Co. Ltd., Class A

     Banks          15,500          11,892  
 

Bank of Hangzhou Co. Ltd., Class A

     Banks          21,700          33,239  

 

           
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Semiannual Report

             161


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Bank of Jiangsu Co. Ltd., Class A

     Banks          21,700        $ 21,385  
 

Bank of Nanjing Co. Ltd., Class A

     Banks          40,300          44,527  
 

Bank of Ningbo Co. Ltd., Class A

     Banks          24,820          91,537  
 

Bank of Qingdao Co. Ltd., Class A

     Banks          18,600          8,884  
 

Bank of Shanghai Co. Ltd., Class A

     Banks          52,700          44,629  
a  

Bank of Zhengzhou Co. Ltd., Class A

     Banks          25,778          7,536  
 

Baoshan Iron & Steel Co. Ltd., Class A

     Metals & Mining          71,300          59,598  
 

BBMG Corp., Class A

     Construction Materials          21,700          6,553  
 

BBMG Corp., Class H

     Construction Materials          124,000          12,825  
a  

BeiGene Ltd.

     Biotechnology          33,200          456,127  
 

Beijing Capital Development Co. Ltd., Class A

     Real Estate Management & Development          9,300          5,221  
 

Beijing Capital Eco-Environment Protection Group Co. Ltd., Class A

     Water Utilities          31,000          12,084  
a  

Beijing Capital International Airport Co. Ltd., Class H

     Transportation Infrastructure          62,000          28,736  
 

Beijing Dabeinong Technology Group Co. Ltd., Class A

     Food Products          15,500          14,360  
 

Beijing Easpring Material Technology Co. Ltd., Class A

     Electrical Equipment          3,100          17,913  
a  

Beijing E-Hualu Information Technology Co. Ltd., Class A

     Software          3,100          14,701  
 

Beijing Enlight Media Co. Ltd., Class A

     Entertainment          12,400          14,637  
 

Beijing Enterprises Holdings Ltd., Class H

     Gas Utilities          25,000          86,187  
a  

Beijing Jetsen Technology Co. Ltd., Class A

     Entertainment          9,300          6,638  
 

Beijing Jingneng Clean Energy Co. Ltd., Class H

     Independent Power Producers & Energy Traders          62,000          12,904  
 

Beijing Kingsoft Office Software, Inc., Class A

     Software          1,812          92,220  
 

Beijing New Building Materials PLC, Class A

     Building Products          6,200          25,572  
a  

Beijing Orient National Communication Science & Technology Co. Ltd., Class A

     Software          6,200          9,267  
 

Beijing Originwater Technology Co. Ltd., Class A

     Commercial Services & Supplies          15,535          10,938  
a  

Beijing Shiji Information Technology Co. Ltd., Class A

     Software          11,924          18,739  
a  

Beijing Shougang Co. Ltd., Class A

     Metals & Mining          31,000          16,169  
a  

Beijing Shunxin Agriculture Co. Ltd., Class A

     Beverages          3,100          9,846  
a  

Beijing Sinnet Technology Co. Ltd., Class A

     IT Services          6,400          8,609  
 

Beijing Tongrentang Co. Ltd., Class A

     Pharmaceuticals          6,200          46,616  
 

Beijing Ultrapower Software Co. Ltd., Class A

     IT Services          6,200          8,561  
 

Beijing United Information Technology Co. Ltd., Class A

     Trading Companies & Distributors          2,523          11,507  
 

Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A

     Biotechnology          3,121          20,553  
 

Beijing Yanjing Brewery Co. Ltd., Class A

     Beverages          12,400          17,139  
 

Beijing Yuanliu Hongyuan Electronic Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          800          6,796  
 

Beijing Zhong Ke San Huan High-Tech Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          3,460          5,167  
 

Beijing-Shanghai High Speed Railway Co. Ltd., Class A

     Ground Transportation          55,800          39,290  
 

Bethel Automotive Safety Systems Co. Ltd., Class A

     Automobile Components          1,600          16,141  
a,c  

Bilibili, Inc., Class Z

     Entertainment          12,400          171,469  
 

Bloomage Biotechnology Corp. Ltd., Class A

     Biotechnology          1,333          15,870  
b  

Blue Moon Group Holdings Ltd.

     Household Products          46,500          15,437  
a  

Bluefocus Intelligent Communications Group Co. Ltd., Class A

     Media          9,300          9,918  

 

           
162             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

BOC International China Co. Ltd., Class A

     Capital Markets          3,100        $ 4,842  
 

BOE Technology Group Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          142,600          75,550  
 

BOE Technology Group Co. Ltd., Class B

     Electronic Equipment, Instruments & Components          37,200          12,397  
 

Bright Dairy & Food Co. Ltd., Class A

     Food Products          6,200          8,765  
a  

BTG Hotels Group Co. Ltd., Class A

     Hotels, Restaurants & Leisure          3,100          7,331  
 

BYD Co. Ltd., Class A

     Automobiles          6,700          217,670  
 

BYD Co. Ltd., Class H

     Automobiles          51,562          1,593,238  
 

BYD Electronic International Co. Ltd.

     Communications Equipment          41,500          189,170  
 

By-health Co. Ltd., Class A

     Personal Care Products          6,200          16,160  
 

C&D International Investment Group Ltd.

     Real Estate Management & Development          31,000          75,443  
 

C&S Paper Co. Ltd., Class A

     Household Products          6,200          8,723  
 

Caida Securities Co. Ltd., Class A

     Capital Markets          6,200          6,799  
 

Caitong Securities Co. Ltd., Class A

     Capital Markets          18,660          20,182  
a  

Cambricon Technologies Corp. Ltd., Class A

     Semiconductors & Semiconductor Equipment          899          15,294  
 

Canmax Technologies Co. Ltd., Class A

     Chemicals          3,970          14,004  
a,b  

CanSino Biologics, Inc., Class H

     Pharmaceuticals          5,100          15,889  
 

CECEP Solar Energy Co. Ltd., Class A

     Independent Power Producers & Energy Traders          15,500          12,318  
 

CECEP Wind-Power Corp., Class A

     Independent Power Producers & Energy Traders          28,180          12,648  
 

Central China Securities Co. Ltd., Class A

     Capital Markets          12,400          6,740  
 

Central China Securities Co. Ltd., Class H

     Capital Markets          62,000          9,025  
 

CETC Cyberspace Security Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          3,100          10,118  
 

CGN Power Co. Ltd., Class A

     Independent Power Producers & Energy Traders          27,900          12,024  
b  

CGN Power Co. Ltd., Class H

     Independent Power Producers & Energy Traders          589,000          152,668  
 

Changchun High & New Technology Industry Group, Inc., Class A

     Pharmaceuticals          1,500          28,617  
 

Changjiang Securities Co. Ltd., Class A

     Capital Markets          21,700          17,364  
 

Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A

     Automobile Components          1,000          20,863  
 

Chaozhou Three-Circle Group Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          9,300          39,570  
 

Chengdu Xingrong Environment Co. Ltd., Class A

     Water Utilities          12,400          9,122  
 

Chengxin Lithium Group Co. Ltd., Class A

     Chemicals          3,100          9,514  
 

China Baoan Group Co. Ltd., Class A

     Industrial Conglomerates          9,300          13,301  
a,b  

China Bohai Bank Co. Ltd., Class H

     Banks          170,500          25,036  
 

China Cinda Asset Management Co. Ltd., Class H

     Capital Markets          465,000          46,905  
 

China CITIC Bank Corp. Ltd., Class A

     Banks          37,200          29,205  
 

China CITIC Bank Corp. Ltd., Class H

     Banks          496,000          230,525  
 

China Coal Energy Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          18,600          22,313  
 

China Coal Energy Co. Ltd., Class H

     Oil, Gas & Consumable Fuels          124,000          97,213  
 

China Communications Services Corp. Ltd., Class H

     Construction & Engineering          134,000          56,291  
 

China Conch Venture Holdings Ltd.

     Construction & Engineering          77,500          66,102  
 

China Construction Bank Corp., Class A

     Banks          37,200          32,167  
 

China Construction Bank Corp., Class H

     Banks          4,898,000          2,764,246  
 

China CSSC Holdings Ltd., Class A

     Machinery          18,600          71,227  
a  

China Eastern Airlines Corp. Ltd., Class A

     Passenger Airlines          52,700          31,826  
a  

China Eastern Airlines Corp. Ltd., Class H

     Passenger Airlines          124,000          42,274  
 

China Energy Engineering Corp. Ltd.

     Construction & Engineering          120,900          37,503  
 

China Energy Engineering Corp. Ltd., Class H

     Construction & Engineering          248,000          28,499  
 

China Everbright Bank Co. Ltd., Class A

     Banks          173,600          73,150  
 

China Everbright Bank Co. Ltd., Class H

     Banks          155,000          46,509  
b  

China Feihe Ltd.

     Food Products          217,000          128,008  
 

China Galaxy Securities Co. Ltd., Class A

     Capital Markets          9,300          14,028  
 

China Galaxy Securities Co. Ltd., Class H

     Capital Markets          186,000          95,947  
 

China Great Wall Securities Co. Ltd., Class A

     Capital Markets          15,500          17,658  

 

           
franklintempleton.com  

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             163


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

China Greatwall Technology Group Co. Ltd., Class A

     Technology Hardware, Storage & Peripherals          12,400        $ 17,853  
 

China Green Electricity Investment of Tianjin Co. Ltd., Class A

     Real Estate Management & Development          6,200          9,335  
 

China Hongqiao Group Ltd.

     Metals & Mining          124,000          121,437  
a,b  

China Huarong Asset Management Co. Ltd., Class H

     Capital Markets          837,000          40,077  
 

China International Capital Corp. Ltd., Class A

     Capital Markets          3,100          15,939  
b  

China International Capital Corp. Ltd., Class H

     Capital Markets          74,400          136,415  
 

China International Marine Containers Group Co. Ltd., Class A

     Machinery          9,750          9,501  
 

China International Marine Containers Group Co. Ltd., Class H

     Machinery          37,200          21,469  
 

China Jinmao Holdings Group Ltd., Class A

     Real Estate Management & Development          310,000          39,978  
 

China Jushi Co. Ltd., Class A

     Construction Materials          13,687          25,361  
 

China Lesso Group Holdings Ltd.

     Building Products          62,000          33,011  
c  

China Life Insurance Co. Ltd., Class H

     Insurance          392,000          610,635  
a,b  

China Literature Ltd., Class A

     Media          18,600          68,041  
 

China Longyuan Power Group Corp. Ltd., Class H

     Independent Power Producers & Energy Traders          186,000          161,969  
 

China Medical System Holdings Ltd.

     Pharmaceuticals          62,000          93,888  
 

China Meheco Co. Ltd., Class A

     Health Care Providers & Services          6,240          10,603  
 

China Meidong Auto Holdings Ltd.

     Specialty Retail          22,000          12,051  
 

China Merchants Bank Co. Ltd., Class A

     Banks          76,000          343,921  
 

China Merchants Bank Co. Ltd., Class H

     Banks          201,500          841,315  
 

China Merchants Energy Shipping Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          31,000          27,359  
 

China Merchants Expressway Network & Technology Holdings Co. Ltd., Class A

     Transportation Infrastructure          6,200          8,212  
 

China Merchants Port Holdings Co. Ltd.

     Transportation Infrastructure          64,620          80,446  
 

China Merchants Property Operation & Service Co. Ltd., Class A

     Real Estate Management & Development          3,100          6,140  
 

China Merchants Securities Co. Ltd., Class A

     Capital Markets          27,900          53,535  
b  

China Merchants Securities Co. Ltd., Class H

     Capital Markets          18,600          16,292  
 

China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A

     Real Estate Management & Development          31,000          52,718  
 

China Minsheng Banking Corp. Ltd., Class A

     Banks          130,200          68,623  
 

China Minsheng Banking Corp. Ltd., Class H

     Banks          341,000          116,688  
 

China National Accord Medicines Corp. Ltd., Class B

     Health Care Providers & Services          3,970          7,036  
 

China National Building Material Co. Ltd., Class H

     Construction Materials          248,000          130,145  
 

China National Chemical Engineering Co. Ltd., Class A

     Construction & Engineering          24,800          26,482  
 

China National Nuclear Power Co. Ltd., Class A

     Independent Power Producers & Energy Traders          65,100          65,227  
 

China National Software & Service Co. Ltd., Class A

     Software          3,970          20,646  
 

China Northern Rare Earth Group High-Tech Co. Ltd., Class A

     Metals & Mining          15,500          46,357  
 

China Oilfield Services Ltd., Class A

     Energy Equipment & Services          6,200          13,803  
 

China Oilfield Services Ltd., Class H

     Energy Equipment & Services          96,000          115,222  
 

China Overseas Land & Investment Ltd., Class A

     Real Estate Management & Development          201,500          417,827  
 

China Pacific Insurance Group Co. Ltd., Class A

     Insurance          27,900          109,482  
 

China Pacific Insurance Group Co. Ltd., Class H

     Insurance          136,400          341,355  
 

China Petroleum & Chemical Corp., Class A

     Oil, Gas & Consumable Fuels          124,000          103,308  
 

China Petroleum & Chemical Corp., Class H

     Oil, Gas & Consumable Fuels          1,302,000          711,525  

 

           
164             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

China Railway Group Ltd., Class A

     Construction & Engineering          77,500        $ 72,546  
 

China Railway Group Ltd., Class H

     Construction & Engineering          217,000          111,938  
 

China Railway Signal & Communication Corp. Ltd., Class A

     Electronic Equipment, Instruments & Components          26,846          19,455  
b  

China Railway Signal & Communication Corp. Ltd., Class H

     Electronic Equipment, Instruments & Components          93,000          29,686  
 

China Rare Earth Resources & Technology Co. Ltd., Class A

     Metals & Mining          3,100          12,250  
 

China Reinsurance Group Corp., Class H

     Insurance          372,000          22,562  
 

China Resources Cement Holdings Ltd.

     Construction Materials          124,000          31,824  
 

China Resources Double Crane Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          3,100          7,429  
 

China Resources Microelectronics Ltd., Class A

     Semiconductors & Semiconductor Equipment          4,381          32,525  
b  

China Resources Mixc Lifestyle Services Ltd.

     Real Estate Management & Development          31,000          125,079  
b  

China Resources Pharmaceutical Group Ltd., Class A

     Pharmaceuticals          77,500          51,457  
 

China Resources Power Holdings Co. Ltd.

     Independent Power Producers & Energy Traders          100,300          191,332  
 

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          4,300          29,580  
a,c  

China Ruyi Holdings Ltd.

     Entertainment          248,000          64,281  
 

China Shenhua Energy Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          24,800          106,202  
 

China Shenhua Energy Co. Ltd., Class H

     Oil, Gas & Consumable Fuels          177,286          574,968  
 

China South Publishing & Media Group Co. Ltd., Class A

     Media          6,200          10,212  
a  

China Southern Airlines Co. Ltd., Class A

     Passenger Airlines          46,500          39,060  
a  

China Southern Airlines Co. Ltd., Class H

     Passenger Airlines          82,000          39,891  
 

China Southern Power Grid Energy Efficiency&Clean Energy Co. Ltd., Class A

     Commercial Services & Supplies          12,400          9,803  
 

China State Construction Engineering Corp. Ltd., Class A

     Construction & Engineering          155,000          117,647  
 

China Suntien Green Energy Corp. Ltd., Class H

     Oil, Gas & Consumable Fuels          93,000          32,180  
 

China Taiping Insurance Holdings Co. Ltd.

     Insurance          74,400          74,097  
 

China Three Gorges Renewables Group Co. Ltd., Class A

     Independent Power Producers & Energy Traders          99,200          65,083  
 

China Tourism Group Duty Free Corp. Ltd., Class A

     Specialty Retail          7,500          109,086  
b  

China Tourism Group Duty Free Corp. Ltd., Class H

     Specialty Retail          6,200          82,251  
b  

China Tower Corp. Ltd., Class H

     Diversified Telecommunication Services          2,480,000          237,492  
a  

China TransInfo Technology Co. Ltd., Class A

     IT Services          3,100          5,080  
 

China United Network Communications Ltd., Class A

     Wireless Telecommunication Services          105,400          71,031  
 

China Vanke Co. Ltd., Class A

     Real Estate Management & Development          37,200          66,785  
 

China Vanke Co. Ltd., Class H

     Real Estate Management & Development          117,800          129,955  
 

China World Trade Center Co. Ltd., Class A

     Real Estate Management & Development          3,100          8,242  
 

China Yangtze Power Co. Ltd., Class A

     Independent Power Producers & Energy Traders          93,000          283,886  
 

China Zhenhua Group Science & Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          1,800          20,004  
 

China Zheshang Bank Co. Ltd., Class A

     Banks          40,300          14,160  
 

Chinalin Securities Co. Ltd., Class A

     Capital Markets          3,100          6,004  
 

Chinese Universe Publishing & Media Group Co. Ltd., Class A

     Media          6,200          10,663  
 

Chongqing Brewery Co. Ltd., Class A

     Beverages          1,700          19,894  
 

Chongqing Changan Automobile Co. Ltd., Class A

     Automobiles          32,144          59,296  

 

           
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             165


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Chongqing Changan Automobile Co. Ltd., Class B

     Automobiles          81,172        $ 37,415  
 

Chongqing Fuling Zhacai Group Co. Ltd., Class A

     Food Products          3,970          8,593  
 

Chongqing Rural Commercial Bank Co. Ltd., Class A

     Banks          18,600          10,212  
 

Chongqing Rural Commercial Bank Co. Ltd., Class H

     Banks          124,000          45,757  
 

Chongqing Water Group Co. Ltd., Class A

     Water Utilities          9,300          7,097  
 

Chongqing Zhifei Biological Products Co. Ltd., Class A

     Biotechnology          9,300          62,126  
 

CITIC Ltd., Class B

     Industrial Conglomerates          248,000          227,992  
 

Citic Pacific Special Steel Group Co. Ltd., Class A

     Metals & Mining          19,480          39,598  
 

CITIC Securities Co. Ltd., Class A

     Capital Markets          46,500          138,241  
 

CITIC Securities Co. Ltd., Class H

     Capital Markets          117,200          237,637  
 

CMOC Group Ltd., Class A

     Metals & Mining          34,100          27,661  
 

CMOC Group Ltd., Class H

     Metals & Mining          207,000          132,946  
 

CMST Development Co. Ltd., Class A

     Air Freight & Logistics          9,300          6,765  
 

CNGR Advanced Material Co. Ltd., Class A

     Chemicals          3,100          21,551  
 

CNOOC Energy Technology & Services Ltd., Class A

     Energy Equipment & Services          21,700          9,739  
 

CNPC Capital Co. Ltd., Class A

     Banks          18,600          16,900  
 

Contemporary Amperex Technology Co. Ltd., Class A

     Electrical Equipment          16,620          463,145  
 

COSCO SHIPPING Development Co. Ltd., Class A

     Trading Companies & Distributors          43,400          14,177  
 

COSCO SHIPPING Development Co. Ltd., Class H

     Trading Companies & Distributors          186,000          20,187  
 

COSCO SHIPPING Energy Transportation Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          12,400          23,010  
 

COSCO SHIPPING Energy Transportation Co. Ltd., Class H

     Oil, Gas & Consumable Fuels          70,000          76,508  
 

COSCO SHIPPING Holdings Co. Ltd., Class A

     Marine Transportation          48,480          65,277  
 

COSCO SHIPPING Holdings Co. Ltd., Class H

     Marine Transportation          155,000          158,922  
a  

Country Garden Holdings Co. Ltd.

     Real Estate Management & Development          682,000          79,243  
 

Country Garden Services Holdings Co. Ltd.

     Real Estate Management & Development          108,100          111,525  
 

CRRC Corp. Ltd., Class A

     Machinery          89,900          72,061  
 

CRRC Corp. Ltd., Class H

     Machinery          217,000          104,734  
 

CSC Financial Co. Ltd., Class A

     Capital Markets          18,600          62,828  
b  

CSC Financial Co. Ltd., Class H

     Capital Markets          46,500          47,083  
 

CSG Holding Co. Ltd., Class A

     Construction Materials          6,200          4,800  
 

CSG Holding Co. Ltd., Class B

     Construction Materials          65,100          20,448  
 

CSPC Pharmaceutical Group Ltd.

     Pharmaceuticals          442,000          323,944  
 

Daan Gene Co. Ltd., Class A

     Biotechnology          4,340          5,820  
a,c  

Dada Nexus Ltd., Class A, ADR

     Consumer Staples Distribution & Retail          4,030          17,933  
 

Daqin Railway Co. Ltd., Class A

     Ground Transportation          55,800          55,833  
a  

Daqo New Energy Corp., ADR

     Semiconductors & Semiconductor Equipment          2,728          82,577  
 

DaShenLin Pharmaceutical Group Co. Ltd., Class A

     Consumer Staples Distribution & Retail          1,382          4,771  
 

Datang International Power Generation Co. Ltd., Class A

     Independent Power Producers & Energy Traders          27,900          10,186  
 

Datang International Power Generation Co. Ltd., Class H

     Independent Power Producers & Energy Traders          124,000          19,316  
 

DHC Software Co. Ltd., Class A

     IT Services          18,600          16,594  
 

Dian Diagnostics Group Co. Ltd., Class A

     Health Care Providers & Services          3,100          9,999  
 

Do-Fluoride New Materials Co. Ltd., Class A

     Chemicals          4,260          9,384  

 

           
166             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Dong-E-E-Jiao Co. Ltd., Class A

     Pharmaceuticals          3,100        $ 20,874  
 

Dongfang Electric Corp. Ltd., Class A

     Electrical Equipment          9,300          19,964  
 

Dongfang Electric Corp. Ltd., Class H

     Electrical Equipment          18,600          20,662  
 

Dongfeng Motor Group Co. Ltd., Class H

     Automobiles          164,500          64,902  
 

Dongguan Yiheda Automation Co. Ltd., Class A

     Machinery          3,100          15,181  
 

Dongxing Securities Co. Ltd., Class A

     Capital Markets          12,400          13,837  
a,b,c  

East Buy Holding Ltd.

     Diversified Consumer Services          21,500          101,435  
 

East Group Co. Ltd., Class A

     Electrical Equipment          9,300          7,863  
 

East Money Information Co. Ltd., Class A

     Capital Markets          59,576          124,291  
 

Eastern Air Logistics Co. Ltd., Class A

     Air Freight & Logistics          6,200          10,399  
 

Eastroc Beverage Group Co. Ltd., Class A

     Beverages          700          17,570  
 

Ecovacs Robotics Co. Ltd., Class A

     Household Durables          2,200          14,645  
 

ENN Energy Holdings Ltd.

     Gas Utilities          40,300          334,468  
 

ENN Natural Gas Co. Ltd., Class A

     Gas Utilities          12,400          29,648  
 

Eternal Asia Supply Chain Management Ltd., Class A

     Commercial Services & Supplies          12,400          7,540  
 

Eve Energy Co. Ltd., Class A

     Electrical Equipment          7,200          44,589  
 

Everbright Securities Co. Ltd., Class A

     Capital Markets          15,500          35,443  
b  

Everbright Securities Co. Ltd., Class H

     Capital Markets          12,400          8,946  
a  

Fangda Carbon New Material Co. Ltd., Class A

     Electrical Equipment          15,500          12,297  
a  

FAW Jiefang Group Co. Ltd.

     Machinery          9,300          11,080  
 

Fiberhome Telecommunication Technologies Co. Ltd., Class A

     Communications Equipment          6,200          16,637  
 

Financial Street Holdings Co. Ltd., Class A

     Real Estate Management & Development          12,400          7,421  
 

First Capital Securities Co. Ltd., Class A

     Capital Markets          18,600          15,037  
 

Flat Glass Group Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          3,100          12,050  
 

Flat Glass Group Co. Ltd., Class H

     Semiconductors & Semiconductor Equipment          24,000          53,934  
 

Focus Media Information Technology Co. Ltd., Class A

     Media          52,700          51,718  
 

Foshan Haitian Flavouring & Food Co. Ltd., Class A

     Food Products          17,873          93,195  
 

Fosun International Ltd.

     Industrial Conglomerates          108,500          68,576  
 

Founder Securities Co. Ltd., Class A

     Capital Markets          24,800          25,189  
 

Foxconn Industrial Internet Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          46,500          125,732  
 

Fujian Funeng Co. Ltd., Class A

     Independent Power Producers & Energy Traders          7,940          9,285  
 

Fujian Sunner Development Co. Ltd., Class A

     Food Products          6,200          16,339  
a,c  

Full Truck Alliance Co. Ltd., ADR

     Ground Transportation          35,619          250,758  
 

Fuyao Glass Industry Group Co. Ltd., Class A

     Automobile Components          9,300          47,127  
b  

Fuyao Glass Industry Group Co. Ltd., Class H

     Automobile Components          32,000          146,683  
 

Ganfeng Lithium Group Co. Ltd., Class A

     Chemicals          6,460          39,545  
b  

Ganfeng Lithium Group Co. Ltd., Class H

     Chemicals          21,260          87,273  
 

G-bits Network Technology Xiamen Co. Ltd., Class A

     Entertainment          300          15,055  
a  

GCL System Integration Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          24,800          9,769  
 

GCL Technology Holdings Ltd.

     Semiconductors & Semiconductor Equipment          1,085,000          202,264  
 

GD Power Development Co. Ltd., Class A

     Independent Power Producers & Energy Traders          68,200          34,448  
a,c  

GDS Holdings Ltd., Class A

     IT Services          49,600          68,398  
 

GEM Co. Ltd., Class A

     Metals & Mining          21,700          18,139  
 

Gemdale Corp., Class A

     Real Estate Management & Development          18,600          17,411  
a  

Genscript Biotech Corp.

     Life Sciences Tools & Services          52,707          138,971  
 

GF Securities Co. Ltd., Class A

     Capital Markets          21,700          43,693  
 

GF Securities Co. Ltd., Class H

     Capital Markets          55,800          74,952  
a,b  

Giant Biogene Holding Co. Ltd.

     Personal Care Products          18,600          80,628  
 

Giant Network Group Co. Ltd., Class A

     Entertainment          12,400          22,023  
 

GigaDevice Semiconductor, Inc., Class A

     Semiconductors & Semiconductor Equipment          3,148          42,603  
 

Ginlong Technologies Co. Ltd., Class A

     Electrical Equipment          1,350          14,547  

 

           
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SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Glarun Technology Co. Ltd., Class A

     Communications Equipment          6,200        $ 12,765  
 

GoerTek, Inc., Class A

     Electronic Equipment, Instruments & Components          12,400          26,857  
 

Goldwind Science & Technology Co. Ltd., Class A

     Electrical Equipment          12,400          15,709  
 

Goldwind Science & Technology Co. Ltd., Class H

     Electrical Equipment          37,200          18,762  
 

GoodWe Technologies Co. Ltd., Class A

     Electrical Equipment          509          9,235  
a  

Gotion High-tech Co. Ltd., Class A

     Electrical Equipment          6,200          19,743  
a  

Grandjoy Holdings Group Co. Ltd., Class A

     Real Estate Management & Development          18,600          9,369  
 

Great Wall Motor Co. Ltd., Class A

     Automobiles          12,400          43,689  
 

Great Wall Motor Co. Ltd., Class H

     Automobiles          124,000          147,878  
 

Gree Electric Appliances, Inc. of Zhuhai, Class A

     Household Durables          12,400          61,781  
 

Greentown China Holdings Ltd.

     Real Estate Management & Development          46,500          48,270  
 

GRG Banking Equipment Co. Ltd., Class A

     Technology Hardware, Storage & Peripherals          9,300          15,445  
 

Guangdong Baolihua New Energy Stock Co. Ltd., Class A

     Independent Power Producers & Energy Traders          9,300          6,880  
a  

Guangdong Electric Power Development Co. Ltd., Class A

     Independent Power Producers & Energy Traders          9,300          7,620  
a  

Guangdong Electric Power Development Co. Ltd., Class B

     Independent Power Producers & Energy Traders          43,400          12,524  
a  

Guangdong Golden Dragon Development, Inc., Class A

     Capital Markets          3,100          5,523  
 

Guangdong Haid Group Co. Ltd., Class A

     Food Products          6,400          39,749  
a  

Guangdong HEC Technology Holding Co. Ltd., Class A

     Metals & Mining          12,400          11,301  
 

Guangdong Kinlong Hardware Products Co. Ltd., Class A

     Building Products          700          4,989  
 

Guangdong Xinbao Electrical Appliances Holdings Co. Ltd., Class A

     Household Durables          3,100          7,501  
 

Guanghui Energy Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          24,800          26,006  
a  

Guangshen Railway Co. Ltd., Class A

     Ground Transportation          24,800          9,837  
a  

Guangshen Railway Co. Ltd., Class H

     Ground Transportation          62,000          13,695  
 

Guangxi Guiguan Electric Power Co. Ltd., Class A

     Independent Power Producers & Energy Traders          15,500          11,914  
 

Guangxi Liugong Machinery Co. Ltd., Class A

     Machinery          6,200          6,110  
 

Guangzhou Automobile Group Co. Ltd., Class A

     Automobiles          12,400          17,037  
 

Guangzhou Automobile Group Co. Ltd., Class H

     Automobiles          170,000          84,003  
 

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A

     Health Care Providers & Services          6,200          26,738  
 

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H

     Health Care Providers & Services          11,100          31,960  
 

Guangzhou Haige Communications Group, Inc. Co., Class A

     Communications Equipment          9,300          14,386  
 

Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A

     Health Care Providers & Services          3,100          26,533  
 

Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          700          4,870  
 

Guangzhou Tinci Materials Technology Co. Ltd., Class A

     Chemicals          7,860          29,160  
 

Guangzhou Wondfo Biotech Co. Ltd., Class A

     Health Care Equipment & Supplies          1,300          4,536  
 

Guangzhou Yuexiu Capital Holdings Group Co. Ltd., Class A

     Capital Markets          9,300          8,540  
 

Guangzhou Zhujiang Brewery Co. Ltd., Class A

     Beverages          6,200          7,403  
a  

Guizhou Bailing Group Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          6,200          6,859  
a  

Guolian Securities Co. Ltd., Class A

     Capital Markets          9,300          13,531  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Guosen Securities Co. Ltd., Class A

     Capital Markets          18,600        $ 23,512  
a  

Guosheng Financial Holding, Inc., Class A

     Capital Markets          9,300          12,012  
 

Guotai Junan Securities Co. Ltd., Class A

     Capital Markets          27,900          55,679  
b  

Guotai Junan Securities Co. Ltd., Class H

     Capital Markets          37,200          41,561  
 

Guoyuan Securities Co. Ltd., Class A

     Capital Markets          18,600          17,283  
a,c  

H World Group Ltd., ADR

     Hotels, Restaurants & Leisure          11,129          438,816  
b,c  

Haidilao International Holding Ltd.

     Hotels, Restaurants & Leisure          82,000          219,871  
 

Haier Smart Home Co. Ltd., Class A

     Household Durables          24,800          80,332  
 

Haier Smart Home Co. Ltd., Class H

     Household Durables          124,000          390,278  
a  

Hainan Airlines Holding Co. Ltd., Class A

     Passenger Airlines          102,300          20,781  
 

Haitian International Holdings Ltd.

     Machinery          32,000          67,826  
 

Haitong Securities Co. Ltd., Class A

     Capital Markets          37,200          50,803  
 

Haitong Securities Co. Ltd., Class H

     Capital Markets          173,600          104,180  
 

Hang Zhou Great Star Industrial Co. Ltd., Class A

     Household Durables          6,200          16,586  
 

Hangzhou Binjiang Real Estate Group Co. Ltd., Class A

     Real Estate Management & Development          12,400          16,322  
 

Hangzhou Chang Chuan Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          3,100          14,267  
 

Hangzhou First Applied Material Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          3,616          14,175  
 

Hangzhou Lion Electronics Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          3,100          14,033  
 

Hangzhou Oxygen Plant Group Co. Ltd., Class A

     Chemicals          3,100          13,816  
 

Hangzhou Robam Appliances Co. Ltd., Class A

     Household Durables          3,100          11,467  
 

Hangzhou Silan Microelectronics Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          6,200          20,730  
 

Hangzhou Tigermed Consulting Co. Ltd., Class A

     Life Sciences Tools & Services          3,100          28,337  
b  

Hangzhou Tigermed Consulting Co. Ltd., Class H

     Life Sciences Tools & Services          6,200          32,536  
 

Han’s Laser Technology Industry Group Co. Ltd., Class A

     Machinery          6,200          19,641  
b  

Hansoh Pharmaceutical Group Co. Ltd.

     Pharmaceuticals          52,000          70,778  
 

Haohua Chemical Science & Technology Co. Ltd., Class A

     Chemicals          2,800          12,682  
 

Harbin Boshi Automation Co. Ltd., Class A

     Machinery          3,100          6,812  
 

Hefei Meiya Optoelectronic Technology, Inc., Class A

     Machinery          3,880          11,173  
 

Heilongjiang Agriculture Co. Ltd., Class A

     Food Products          6,200          11,199  
 

Henan Shenhuo Coal & Power Co. Ltd., Class A

     Metals & Mining          9,300          21,802  
 

Henan Shuanghui Investment & Development Co. Ltd., Class A

     Food Products          12,400          44,915  
 

Hengan International Group Co. Ltd.

     Personal Care Products          36,500          116,278  
 

Hengdian Group DMEGC Magnetics Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          6,200          13,905  
a  

Hengli Petrochemical Co. Ltd., Class A

     Chemicals          12,400          24,508  
 

Hengtong Optic-electric Co. Ltd., Class A

     Communications Equipment          9,300          18,024  
a  

Hengyi Petrochemical Co. Ltd., Class A

     Chemicals          12,400          12,509  
 

Hesteel Co. Ltd., Class A

     Metals & Mining          43,400          13,522  
 

Hisense Home Appliances Group Co. Ltd., Class H

     Household Durables          22,000          56,321  
 

Hithink RoyalFlush Information Network Co. Ltd., Class A

     Capital Markets          2,500          51,285  
a  

Holitech Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          12,400          5,957  
 

Hongfa Technology Co. Ltd., Class A

     Electrical Equipment          4,140          19,064  
a  

Hopson Development Holdings Ltd.

     Real Estate Management & Development          50,773          30,664  

 

           
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SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Hoshine Silicon Industry Co. Ltd., Class A

     Chemicals          3,100        $ 25,704  
 

Hoyuan Green Energy Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          1,760          10,117  
a,b  

Hua Hong Semiconductor Ltd.

     Semiconductors & Semiconductor Equipment          21,500          54,465  
 

Huadian Power International Corp. Ltd., Class A

     Independent Power Producers & Energy Traders          27,900          19,721  
 

Huadian Power International Corp. Ltd., Class H

     Independent Power Producers & Energy Traders          62,000          25,649  
 

Huadong Medicine Co. Ltd., Class A

     Health Care Providers & Services          6,200          35,945  
 

Huafon Chemical Co. Ltd., Class A

     Chemicals          15,500          15,041  
 

Huagong Tech Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          6,200          28,652  
 

Huaibei Mining Holdings Co. Ltd., Class A

     Metals & Mining          9,300          17,807  
 

Hualan Biological Engineering, Inc., Class A

     Biotechnology          9,960          30,349  
 

Huaneng Lancang River Hydropower, Inc., Class A

     Independent Power Producers & Energy Traders          24,800          25,257  
a  

Huaneng Power International, Inc., Class A

     Independent Power Producers & Energy Traders          27,900          30,137  
a  

Huaneng Power International, Inc., Class H

     Independent Power Producers & Energy Traders          248,000          120,329  
 

Huapont Life Sciences Co. Ltd., Class A

     Chemicals          6,200          4,263  
 

Huatai Securities Co. Ltd., Class A

     Capital Markets          27,900          60,543  
b  

Huatai Securities Co. Ltd., Class H

     Capital Markets          68,200          87,080  
 

Huaxi Securities Co. Ltd., Class A

     Capital Markets          9,300          10,620  
 

Huaxia Bank Co. Ltd., Class A

     Banks          58,900          46,242  
 

Huaxin Cement Co. Ltd., Class A

     Construction Materials          6,200          12,739  
 

Huaxin Cement Co. Ltd., Class H

     Construction Materials          16,700          17,123  
 

Huayu Automotive Systems Co. Ltd., Class A

     Automobile Components          12,400          31,946  
 

Hubei Biocause Pharmaceutical Co. Ltd., Class A

     Insurance          15,500          6,638  
 

Hubei Energy Group Co. Ltd., Class A

     Independent Power Producers & Energy Traders          27,900          16,620  
 

Hubei Xingfa Chemicals Group Co. Ltd., Class A

     Chemicals          3,100          8,412  
 

Huizhou Desay Sv Automotive Co. Ltd., Class A

     Automobile Components          2,300          45,345  
 

Humanwell Healthcare Group Co. Ltd., Class A

     Pharmaceuticals          6,200          20,585  
 

Hunan Gold Corp. Ltd., Class A

     Metals & Mining          3,100          5,187  
 

Hunan Valin Steel Co. Ltd., Class A

     Metals & Mining          24,800          20,355  
 

Hundsun Technologies, Inc., Class A

     Software          7,306          32,540  
b,c  

Hygeia Healthcare Holdings Co. Ltd., Class C

     Health Care Providers & Services          18,600          104,259  
 

IEIT Systems Co. Ltd., Class A

     Technology Hardware, Storage & Peripherals          6,308          32,563  
 

Iflytek Co. Ltd., Class A

     Software          9,300          64,666  
 

Imeik Technology Development Co. Ltd., Class A

     Biotechnology          600          32,140  
 

Industrial & Commercial Bank of China Ltd., Class A

     Banks          285,200          183,198  
 

Industrial & Commercial Bank of China Ltd., Class H

     Banks          4,123,000          1,984,679  
 

Industrial Bank Co. Ltd., Class A

     Banks          77,500          173,280  
 

Industrial Securities Co. Ltd., Class A

     Capital Markets          32,890          28,982  
 

Ingenic Semiconductor Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          1,300          13,152  
a  

Inner Mongolia BaoTou Steel Union Co. Ltd., Class A

     Metals & Mining          148,800          35,128  
 

Inner Mongolia Dian Tou Energy Corp. Ltd., Class A

     Oil, Gas & Consumable Fuels          9,300          17,564  
 

Inner Mongolia ERDOS Resources Co. Ltd., Class A

     Metals & Mining          8,520          10,712  
 

Inner Mongolia ERDOS Resources Co. Ltd., Class B

     Metals & Mining          30,220          24,267  
 

Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A

     Chemicals          31,000          17,402  
 

Inner Mongolia Yili Industrial Group Co. Ltd., Class A

     Food Products          24,800          90,306  
a  

Inner Mongolia Yitai Coal Co. Ltd., Class B

     Oil, Gas & Consumable Fuels          52,700          73,727  

 

           
170             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Inner Mongolia Yuan Xing Energy Co. Ltd., Class A

     Chemicals          15,500        $ 15,041  
a,b  

Innovent Biologics, Inc., Class B

     Biotechnology          73,000          356,525  
 

Intco Medical Technology Co. Ltd., Class A

     Health Care Equipment & Supplies          1,890          5,798  
a,c  

iQIYI, Inc., ADR

     Entertainment          23,777          112,703  
 

JA Solar Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          13,092          45,966  
 

Jafron Biomedical Co. Ltd., Class A

     Health Care Equipment & Supplies          3,100          9,578  
 

Jason Furniture Hangzhou Co. Ltd., Class A

     Household Durables          3,880          21,563  
 

JCET Group Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          9,300          38,932  
a,b,c  

JD Health International, Inc.

     Consumer Staples Distribution & Retail          54,250          281,230  
a,b,c  

JD Logistics, Inc.

     Air Freight & Logistics          86,800          110,275  
c  

JD.com, Inc., Class A

     Broadline Retail          124,000          1,822,354  
 

Jiangsu Eastern Shenghong Co. Ltd., Class A

     Chemicals          15,500          24,572  
 

Jiangsu Expressway Co. Ltd., Class A

     Transportation Infrastructure          6,200          8,842  
 

Jiangsu Expressway Co. Ltd., Class H

     Transportation Infrastructure          66,000          59,580  
 

Jiangsu Hengli Hydraulic Co. Ltd., Class A

     Machinery          4,380          38,415  
 

Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A

     Pharmaceuticals          24,900          153,588  
 

Jiangsu King’s Luck Brewery JSC Ltd., Class A

     Beverages          4,700          37,848  
 

Jiangsu Linyang Energy Co. Ltd., Class A

     Electrical Equipment          9,300          9,139  
 

Jiangsu Nhwa Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          3,100          11,280  
 

Jiangsu Pacific Quartz Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          1,200          17,569  
 

Jiangsu Phoenix Publishing & Media Corp. Ltd., Class A

     Media          9,300          13,377  
 

Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A

     Beverages          6,200          110,116  
 

Jiangsu Yangnong Chemical Co. Ltd., Class A

     Chemicals          2,170          20,551  
 

Jiangsu Yoke Technology Co. Ltd., Class A

     Chemicals          3,100          27,487  
 

Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A

     Health Care Equipment & Supplies          6,200          29,308  
 

Jiangsu Zhongtian Technology Co. Ltd., Class A

     Electrical Equipment          12,400          25,274  
 

Jiangxi Copper Co. Ltd., Class A

     Metals & Mining          9,300          24,585  
 

Jiangxi Copper Co. Ltd., Class H

     Metals & Mining          62,000          97,213  
a  

Jiangxi Special Electric Motor Co. Ltd., Class A

     Electrical Equipment          6,200          7,557  
 

Jilin Aodong Pharmaceutical Group Co. Ltd., Class A

     Pharmaceuticals          6,200          14,688  
a  

Jinke Smart Services Group Co. Ltd., Class H

     Real Estate Management & Development          12,400          15,579  
 

Jinko Solar Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          15,500          21,487  
a,b,c  

Jinxin Fertility Group Ltd.

     Health Care Providers & Services          84,000          40,113  
 

JiuGui Liquor Co. Ltd., Class A

     Beverages          1,600          19,372  
b  

Jiumaojiu International Holdings Ltd.

     Hotels, Restaurants & Leisure          48,000          65,333  
 

Jizhong Energy Resources Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          12,400          11,471  
 

Joincare Pharmaceutical Group Industry Co. Ltd., Class A

     Pharmaceuticals          9,300          15,815  
 

Joinn Laboratories China Co. Ltd., Class A

     Life Sciences Tools & Services          1,960          6,408  
b  

Joinn Laboratories China Co. Ltd., Class H

     Life Sciences Tools & Services          5,772          10,244  
 

Jointown Pharmaceutical Group Co. Ltd., Class A

     Health Care Providers & Services          12,142          18,049  
a  

Jonjee Hi-Tech Industrial & Commercial Holding Co. Ltd., Class A

     Food Products          3,100          14,696  
 

Joyoung Co. Ltd., Class A

     Household Durables          3,100          6,055  
c  

JOYY, Inc., ADR

     Interactive Media & Services          1,736          66,159  
a  

Juneyao Airlines Co. Ltd., Class A

     Passenger Airlines          9,300          18,253  
 

Kaishan Group Co. Ltd., Class A

     Machinery          3,100          6,153  
a,c  

Kanzhun Ltd., ADR

     Interactive Media & Services          17,050          258,648  
c  

KE Holdings, Inc., ADR

     Real Estate Management & Development          33,604          521,534  
 

Keda Industrial Group Co. Ltd.

     Machinery          6,200          9,897  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Kingboard Holdings Ltd.

     Electronic Equipment, Instruments & Components          40,400        $ 90,685  
a  

Kingdee International Software Group Co. Ltd.

     Software          134,000          164,937  
 

Kingnet Network Co. Ltd., Class A

     Entertainment          12,400          21,445  
a  

Kingsoft Cloud Holdings Ltd.

     IT Services          62,000          20,503  
c  

Kingsoft Corp. Ltd.

     Entertainment          45,200          163,905  
a,b,c  

Kuaishou Technology, Class B

     Interactive Media & Services          136,400          1,094,600  
 

Kuang-Chi Technologies Co. Ltd., Class A

     Aerospace & Defense          9,300          18,432  
a  

Kunlun Tech Co. Ltd., Class A

     Entertainment          5,700          29,995  
 

Kweichow Moutai Co. Ltd., Class A

     Beverages          4,700          1,160,235  
a  

Lakala Payment Co. Ltd., Class A

     Financial Services          3,100          7,603  
 

Lao Feng Xiang Co. Ltd., Class B

     Textiles, Apparel & Luxury Goods          12,400          42,259  
 

LB Group Co. Ltd., Class A

     Chemicals          9,300          23,449  
 

Lee & Man Paper Manufacturing Ltd.

     Paper & Forest Products          62,000          18,129  
b  

Legend Holdings Corp., Class H

     Technology Hardware, Storage & Peripherals          27,900          25,115  
 

Lens Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          18,600          31,350  
a  

Leo Group Co. Ltd., Class A

     Media          34,100          10,624  
 

Lepu Medical Technology Beijing Co. Ltd., Class A

     Health Care Equipment & Supplies          9,300          20,972  
 

Levima Advanced Materials Corp., Class A

     Chemicals          3,100          8,314  
 

Leyard Optoelectronic Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          9,300          8,335  
a,c  

Li Auto, Inc., Class A

     Automobiles          55,662          982,916  
 

Li Ning Co. Ltd.

     Textiles, Apparel & Luxury Goods          120,500          506,965  
 

LianChuang Electronic Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          3,760          4,908  
 

Liaoning Port Co. Ltd., Class A

     Transportation Infrastructure          71,300          15,364  
 

Lingyi iTech Guangdong Co., Class A

     Electronic Equipment, Instruments & Components          31,000          24,338  
 

Livzon Pharmaceutical Group, Inc., Class A

     Pharmaceuticals          3,100          15,718  
 

Livzon Pharmaceutical Group, Inc., Class H

     Pharmaceuticals          6,200          20,306  
b,c  

Longfor Group Holdings Ltd.

     Real Estate Management & Development          101,150          181,846  
 

LONGi Green Energy Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          27,900          104,466  
 

Longshine Technology Group Co. Ltd., Class A

     Software          6,200          16,381  
c  

Lufax Holding Ltd., ADR

     Consumer Finance          36,766          38,972  
 

Luxi Chemical Group Co. Ltd., Class A

     Chemicals          6,200          9,633  
 

Luxshare Precision Industry Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          27,899          114,188  
a,b  

Luye Pharma Group Ltd.

     Pharmaceuticals          93,000          41,680  
 

Luzhou Laojiao Co. Ltd., Class A

     Beverages          5,400          160,575  
 

Maanshan Iron & Steel Co. Ltd., Class A

     Metals & Mining          24,800          8,986  
 

Mango Excellent Media Co. Ltd., Class A

     Entertainment          7,130          27,705  
 

Maxscend Microelectronics Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          2,432          38,955  
 

Meihua Holdings Group Co. Ltd., Class A

     Food Products          12,400          16,373  
a  

Meinian Onehealth Healthcare Holdings Co. Ltd., Class A

     Health Care Providers & Services          21,700          20,253  
a,b,c  

Meituan, Class B

     Hotels, Restaurants & Leisure          281,200          4,114,675  
 

Metallurgical Corp. of China Ltd., Class A

     Construction & Engineering          55,800          28,108  
 

Metallurgical Corp. of China Ltd., Class H

     Construction & Engineering          155,000          32,655  
a  

Microport Scientific Corp.

     Health Care Equipment & Supplies          46,500          70,298  
 

Ming Yang Smart Energy Group Ltd., Class A

     Electrical Equipment          9,300          20,143  
a,c  

Ming Yuan Cloud Group Holdings Ltd.

     Software          31,000          13,577  
 

MINISO Group Holding Ltd., ADR

     Broadline Retail          4,619          119,632  
 

Minth Group Ltd.

     Automobile Components          39,000          100,340  
a  

MOG Digitech Holdings Ltd.

     Electronic Equipment, Instruments & Components          28,000          52,483  
 

Montage Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          4,301          29,339  
 

Muyuan Foods Co. Ltd., Class A

     Food Products          20,760          107,964  
 

Nanjing Hanrui Cobalt Co. Ltd., Class A

     Metals & Mining          800          3,266  
 

Nanjing Iron & Steel Co. Ltd., Class A

     Metals & Mining          24,800          12,594  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          3,945       

$

6,871

 

 

NARI Technology Co. Ltd., Class A

     Electrical Equipment          31,088          94,684  
a  

National Silicon Industry Group Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          6,355          17,244  
 

NAURA Technology Group Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          2,200          72,863  
a  

NavInfo Co. Ltd., Class A

     Software          9,300          12,931  
c  

NetEase, Inc.

     Entertainment          94,600          1,926,582  
 

New China Life Insurance Co. Ltd., Class A

     Insurance          9,300          47,012  
 

New China Life Insurance Co. Ltd., Class H

     Insurance          37,200          89,677  
a  

New Hope Liuhe Co. Ltd., Class A

     Food Products          18,600          28,082  
a,c  

New Oriental Education & Technology Group, Inc.

     Diversified Consumer Services          72,480          441,441  
a  

Newland Digital Technology Co. Ltd., Class A

     Software          3,100          8,106  
a  

Nine Dragons Paper Holdings Ltd.

     Paper & Forest Products          85,000          47,754  
 

Ninestar Corp., Class A

     Technology Hardware, Storage & Peripherals          6,200          22,006  
 

Ningbo Deye Technology Co. Ltd., Class A

     Machinery          1,260          13,392  
 

Ningbo Joyson Electronic Corp., Class A

     Automobile Components          6,200          14,815  
 

Ningbo Orient Wires & Cables Co. Ltd., Class A

     Electrical Equipment          3,100          16,939  
 

Ningbo Ronbay New Energy Technology Co. Ltd., Class A

     Electrical Equipment          1,586          9,136  
 

Ningbo Sanxing Medical Electric Co. Ltd., Class A

     Electrical Equipment          6,200          15,420  
 

Ningbo Shanshan Co. Ltd., Class A

     Chemicals          9,300          17,743  
 

Ningbo Tuopu Group Co. Ltd., Class A

     Automobile Components          4,600          46,803  
 

Ningbo Zhoushan Port Co. Ltd., Class A

     Transportation Infrastructure          24,800          11,743  
 

Ningxia Baofeng Energy Group Co. Ltd., Class A

     Chemicals          9,300          18,253  
a,c  

NIO, Inc., Class A

     Automobiles          63,240          576,939  
b  

Nongfu Spring Co. Ltd., Class H

     Beverages          93,000          534,356  
 

North Huajin Chemical Industries Co. Ltd., Class A

     Chemicals          6,200          5,012  
 

North Industries Group Red Arrow Co. Ltd., Class A

     Machinery          3,100          6,280  
 

Northeast Securities Co. Ltd., Class A

     Capital Markets          9,300          9,765  
 

Offshore Oil Engineering Co. Ltd., Class A

     Energy Equipment & Services          15,500          13,786  
a  

OFILM Group Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          12,400          10,892  
 

Oppein Home Group, Inc., Class A

     Household Durables          900          11,845  
 

ORG Technology Co. Ltd., Class A

     Containers & Packaging          9,300          5,948  
 

Orient Securities Co. Ltd., Class A

     Capital Markets          28,524          37,506  
b  

Orient Securities Co. Ltd., Class H

     Capital Markets          37,200          18,762  
a  

Oriental Energy Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          6,200          8,510  
a  

Ourpalm Co. Ltd., Class A

     Entertainment          9,300          6,140  
 

Ovctek China, Inc., Class A

     Health Care Equipment & Supplies          3,820          13,464  
a  

Pangang Group Vanadium Titanium & Resources Co. Ltd., Class A

     Metals & Mining          34,100          17,224  
a,c  

PDD Holdings, Inc., ADR

     Broadline Retail          31,806          3,119,214  
 

People.cn Co. Ltd., Class A

     Media          5,100          26,838  
 

People’s Insurance Co. Group of China Ltd., Class A

     Insurance          40,300          32,635  
 

People’s Insurance Co. Group of China Ltd., Class H

     Insurance          434,000          155,715  
 

Perfect World Co. Ltd., Class A

     Entertainment          3,100          5,616  
 

PetroChina Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          89,900          98,466  
 

PetroChina Co. Ltd., Class H

     Oil, Gas & Consumable Fuels          1,116,000          840,721  
 

Pharmaron Beijing Co. Ltd., Class A

     Life Sciences Tools & Services          2,250          9,604  
b  

Pharmaron Beijing Co. Ltd., Class H

     Life Sciences Tools & Services          15,900          37,842  

 

           
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SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

PICC Property & Casualty Co. Ltd., Class H

     Insurance          352,000        $ 452,143  
 

Ping An Bank Co. Ltd., Class A

     Banks          71,300          109,606  
a,b  

Ping An Healthcare & Technology Co. Ltd.

     Consumer Staples Distribution & Retail          31,000          72,356  
 

Ping An Insurance Group Co. of China Ltd., Class A

     Insurance          40,300          267,164  
c  

Ping An Insurance Group Co. of China Ltd., Class H

     Insurance          330,500          1,892,647  
 

Pingdingshan Tianan Coal Mining Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          9,300          13,160  
 

Poly Developments & Holdings Group Co. Ltd., Class A

     Real Estate Management & Development          46,500          81,311  
 

Poly Property Services Co. Ltd., Class H

     Real Estate Management & Development          7,200          29,097  
b  

Pop Mart International Group Ltd.

     Specialty Retail          37,200          109,959  
 

Porton Pharma Solutions Ltd., Class A

     Pharmaceuticals          3,100          12,033  
 

Postal Savings Bank of China Co. Ltd., Class A

     Banks          86,800          59,211  
b  

Postal Savings Bank of China Co. Ltd., Class H

     Banks          496,000          250,791  
 

Power Construction Corp. of China Ltd., Class A

     Construction & Engineering          65,100          47,804  
 

Pylon Technologies Co. Ltd., Class A

     Electrical Equipment          682          12,234  
c  

Qifu Technology, Inc., ADR

     Consumer Finance          6,138          94,280  
 

Qingdao TGOOD Electric Co. Ltd., Class A

     Electrical Equipment          3,100          7,774  
a  

Qinghai Salt Lake Industry Co. Ltd., Class A

     Chemicals          21,700          51,110  
 

Raytron Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          1,705          11,163  
b  

Red Star Macalline Group Corp. Ltd., Class H

     Real Estate Management & Development          38,400          12,797  
a,b  

Remegen Co. Ltd., Class H

     Biotechnology          7,500          38,592  
a,c  

RLX Technology, Inc., ADR

     Tobacco          43,710          66,002  
 

Rongsheng Petrochemical Co. Ltd., Class A

     Chemicals          12,400          20,270  
 

SAIC Motor Corp. Ltd., Class A

     Automobiles          31,100          63,175  
 

Sailun Group Co. Ltd., Class A

     Automobile Components          12,400          21,462  
 

Sanan Optoelectronics Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          9,300          19,683  
a  

Sangfor Technologies, Inc., Class A

     Software          600          7,684  
 

Sansteel Minguang Co. Ltd. Fujian, Class A

     Metals & Mining          9,300          6,191  
 

Sany Heavy Equipment International Holdings Co. Ltd.

     Machinery          46,000          72,713  
 

Sany Heavy Industry Co. Ltd., Class A

     Machinery          31,000          67,610  
 

Satellite Chemical Co. Ltd., Class A

     Chemicals          12,446          26,188  
 

SDIC Capital Co. Ltd., Class A

     Capital Markets          18,600          17,590  
 

SDIC Power Holdings Co. Ltd., Class A

     Independent Power Producers & Energy Traders          18,600          30,048  
 

Sealand Securities Co. Ltd., Class A

     Capital Markets          18,600          9,522  
a  

Seazen Group Ltd.

     Real Estate Management & Development          124,000          22,641  
 

a Seazen Holdings Co. Ltd., Class A

     Real Estate Management & Development          9,300          16,913  
a,b,c  

SenseTime Group, Inc., Class B

     Software          806,000          147,166  
a  

Seres Group Co. Ltd., Class A

     Automobiles          3,100          23,708  
 

SF Holding Co. Ltd., Class A

     Air Freight & Logistics          18,600          104,159  
 

SG Micro Corp., Class A

     Semiconductors & Semiconductor Equipment          1,657          17,687  
 

Shaanxi Coal Industry Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          37,200          94,254  
 

Shaanxi International Trust Co. Ltd., Class A

     Capital Markets          21,700          9,054  
 

Shan Xi Hua Yang Group New Energy Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          13,850          16,006  
a  

Shandong Chenming Paper Holdings Ltd., Class B

     Paper & Forest Products          37,200          8,217  
a  

Shandong Chenming Paper Holdings Ltd., Class H

     Paper & Forest Products          15,500          4,552  
a  

Shandong Denghai Seeds Co. Ltd., Class A

     Food Products          3,100          6,055  
 

Shandong Gold Mining Co. Ltd., Class A

     Metals & Mining          13,084          45,093  
b  

Shandong Gold Mining Co. Ltd., Class H

     Metals & Mining          38,750          73,326  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Shandong Himile Mechanical Science & Technology Co. Ltd., Class A

     Machinery          3,100        $ 14,977  
 

Shandong Hi-speed Co. Ltd., Class A

     Transportation Infrastructure          12,400          12,186  
 

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

     Chemicals          9,380          41,327  
a  

Shandong Humon Smelting Co. Ltd., Class A

     Metals & Mining          3,100          5,157  
 

Shandong Linglong Tyre Co. Ltd., Class A

     Automobile Components          3,100          8,646  
 

Shandong Nanshan Aluminum Co. Ltd., Class A

     Metals & Mining          43,400          18,704  
 

Shandong Pharmaceutical Glass Co. Ltd., Class A

     Health Care Equipment & Supplies          3,100          11,850  
 

Shandong Sun Paper Industry JSC Ltd., Class A

     Paper & Forest Products          9,300          15,649  
 

Shandong Weigao Group Medical Polymer Co. Ltd., Class H

     Health Care Equipment & Supplies          124,000          108,930  
 

Shanghai Aiko Solar Energy Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          6,260          19,169  
 

Shanghai Bairun Investment Holding Group Co. Ltd., Class A

     Beverages          4,140          16,382  
 

Shanghai Baosight Software Co. Ltd., Class A

     Software          4,136          25,648  
 

Shanghai Baosight Software Co. Ltd., Class B

     Software          33,428          70,366  
 

Shanghai Construction Group Co. Ltd., Class A

     Construction & Engineering          27,900          10,531  
a  

Shanghai Electric Group Co. Ltd., Class A

     Electrical Equipment          37,200          23,895  
a  

Shanghai Electric Group Co. Ltd., Class H

     Electrical Equipment          124,000          28,974  
 

Shanghai Electric Power Co. Ltd., Class A

     Independent Power Producers & Energy Traders          12,400          15,096  
 

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A

     Pharmaceuticals          9,300          36,507  
 

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H

     Pharmaceuticals          31,000          72,831  
 

Shanghai Friendess Electronic Technology Corp. Ltd., Class A

     Electronic Equipment, Instruments & Components          575          19,682  
 

Shanghai Fudan Microelectronics Group Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          999          6,540  
 

Shanghai Fudan Microelectronics Group Co. Ltd., Class H

     Semiconductors & Semiconductor Equipment          14,000          30,031  
a  

Shanghai International Airport Co. Ltd., Class A

     Transportation Infrastructure          9,300          48,365  
 

Shanghai International Port Group Co. Ltd., Class A

     Transportation Infrastructure          43,400          30,678  
 

Shanghai Jinjiang International Hotels Co. Ltd., Class A

     Hotels, Restaurants & Leisure          3,100          15,998  
 

Shanghai Jinjiang International Hotels Co. Ltd., Class B

     Hotels, Restaurants & Leisure          9,300          15,308  
 

Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class A

     Real Estate Management & Development          3,100          5,157  
 

Shanghai Jinqiao Export Processing Zone Development Co. Ltd., Class B

     Real Estate Management & Development          21,700          19,313  
a  

Shanghai Junshi Biosciences Co. Ltd., Class A

     Biotechnology          3,867          20,434  
a,b  

Shanghai Junshi Biosciences Co. Ltd., Class H

     Biotechnology          6,200          13,838  
 

Shanghai Lingang Holdings Corp. Ltd., Class A

     Real Estate Management & Development          7,000          10,924  
 

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class A

     Real Estate Management & Development          6,200          8,152  
 

Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B

     Real Estate Management & Development          55,800          22,655  
 

Shanghai Mechanical & Electrical Industry Co. Ltd., Class B

     Machinery          12,400          12,450  
 

Shanghai Moons’ Electric Co. Ltd., Class A

     Electrical Equipment          3,100          29,312  
 

Shanghai Pharmaceuticals Holding Co. Ltd., Class A

     Health Care Providers & Services          12,400          30,771  

 

           
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             175


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Shanghai Pharmaceuticals Holding Co. Ltd., Class H

     Health Care Providers & Services          43,400        $ 67,717  
 

Shanghai Pudong Development Bank Co. Ltd., Class A

     Banks          108,515          105,748  
 

Shanghai Putailai New Energy Technology Co. Ltd., Class A

     Chemicals          7,679          30,871  
 

Shanghai RAAS Blood Products Co. Ltd., Class A

     Biotechnology          27,900          26,653  
 

Shanghai Rural Commercial Bank Co. Ltd., Class A

     Banks          12,400          10,280  
 

Shanghai Tunnel Engineering Co. Ltd., Class A

     Construction & Engineering          15,500          12,467  
 

Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., Class B

     Trading Companies & Distributors          12,400          9,040  
 

Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A

     Specialty Retail          15,500          15,828  
 

Shanghai Zhangjiang High-Tech Park Development Co. Ltd., Class A

     Real Estate Management & Development          6,200          19,998  
a  

Shanghai Zhenhua Heavy Industries Co. Ltd., Class B

     Machinery          55,800          11,997  
 

Shanxi Coking Coal Energy Group Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          21,700          29,963  
 

Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          12,400          32,320  
a  

Shanxi Meijin Energy Co. Ltd., Class A

     Metals & Mining          18,600          17,922  
 

Shanxi Securities Co. Ltd., Class A

     Capital Markets          15,700          12,391  
 

Shanxi Taigang Stainless Steel Co. Ltd., Class A

     Metals & Mining          24,800          13,752  
 

Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A

     Beverages          4,720          155,158  
a  

Shanying International Holding Co. Ltd., Class A

     Paper & Forest Products          18,600          5,489  
 

Shenghe Resources Holding Co. Ltd., Class A

     Metals & Mining          6,200          9,250  
 

Shengyi Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          9,300          19,606  
 

Shennan Circuits Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          600          5,482  
 

Shenwan Hongyuan Group Co. Ltd., Class A

     Capital Markets          83,700          49,744  
b  

Shenwan Hongyuan Group Co. Ltd., Class H

     Capital Markets          74,400          14,060  
 

Shenzhen Agricultural Products Group Co. Ltd., Class A

     Consumer Staples Distribution & Retail          6,200          5,863  
a  

Shenzhen Airport Co. Ltd., Class A

     Transportation Infrastructure          6,200          5,787  
 

Shenzhen Capchem Technology Co. Ltd., Class A

     Chemicals          3,180          19,126  
 

Shenzhen Dynanonic Co. Ltd., Class A

     Chemicals          864          9,079  
 

Shenzhen Energy Group Co. Ltd., Class A

     Independent Power Producers & Energy Traders          18,600          16,288  
a  

Shenzhen Everwin Precision Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          6,200          8,799  
 

Shenzhen Expressway Corp. Ltd., Class H

     Transportation Infrastructure          38,000          31,053  
 

Shenzhen Gas Corp. Ltd., Class A

     Gas Utilities          10,000          9,416  
 

Shenzhen Huaqiang Industry Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          3,100          4,770  
 

Shenzhen Inovance Technology Co. Ltd., Class A

     Machinery          9,450          86,241  
 

Shenzhen International Holdings Ltd.

     Transportation Infrastructure          77,500          47,795  
 

Shenzhen Investment Ltd.

     Real Estate Management & Development          124,000          19,791  
 

Shenzhen Kaifa Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          6,200          14,645  
a  

Shenzhen Kangtai Biological Products Co. Ltd., Class A

     Biotechnology          4,660          18,721  
 

Shenzhen Kedali Industry Co. Ltd., Class A

     Automobile Components          800          10,561  
 

Shenzhen Kingdom Sci-Tech Co. Ltd., Class A

     Software          3,100          5,395  

 

           
176             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A

     Health Care Equipment & Supplies          4,600        $ 170,350  
 

Shenzhen MTC Co. Ltd., Class A

     Household Durables          21,700          14,922  
a  

Shenzhen Overseas Chinese Town Co. Ltd., Class A

     Real Estate Management & Development          34,100          19,798  
 

Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A

     Pharmaceuticals          3,100          12,616  
 

Shenzhen SC New Energy Technology Corp., Class A

     Semiconductors & Semiconductor Equipment          1,100          11,467  
 

Shenzhen Senior Technology Material Co. Ltd., Class A

     Chemicals          6,200          11,122  
 

Shenzhen Sunway Communication Co. Ltd., Class A

     Communications Equipment          3,100          8,408  
 

Shenzhen Transsion Holdings Co. Ltd., Class A

     Technology Hardware, Storage & Peripherals          3,112          62,251  
 

Shenzhen Yan Tian Port Holding Co. Ltd., Class A

     Transportation Infrastructure          9,300          6,421  
 

Shenzhen YUTO Packaging Technology Co. Ltd., Class A

     Containers & Packaging          3,100          10,501  
 

Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd., Class A

     Metals & Mining          15,500          10,935  
 

Shenzhou International Group Holdings Ltd.

     Textiles, Apparel & Luxury Goods          40,300          385,924  
a  

Shijiazhuang Changshan BeiMing Technology Co. Ltd., Class A

     Textiles, Apparel & Luxury Goods          6,200          7,378  
 

Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          6,880          22,153  
 

Shui On Land Ltd.

     Real Estate Management & Development          186,000          16,862  
a  

Siasun Robot & Automation Co. Ltd., Class A

     Machinery          6,200          10,586  
 

Sichuan Chuantou Energy Co. Ltd., Class A

     Independent Power Producers & Energy Traders          18,600          37,783  
 

Sichuan Hebang Biotechnology Co. Ltd., Class A

     Chemicals          37,200          11,948  
 

Sichuan Kelun Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          6,200          24,806  
a  

Sichuan New Energy Power Co. Ltd.

     Trading Companies & Distributors          6,200          10,127  
 

Sichuan Road & Bridge Group Co. Ltd., Class A

     Construction & Engineering          25,960          30,892  
 

Sichuan Swellfun Co. Ltd., Class A

     Beverages          1,600          13,247  
 

Sichuan Yahua Industrial Group Co. Ltd., Class A

     Chemicals          3,100          6,374  
 

Sieyuan Electric Co. Ltd., Class A

     Electrical Equipment          3,100          21,989  
 

Sinoma International Engineering Co., Class A

     Construction & Engineering          9,300          14,399  
 

Sinoma Science & Technology Co. Ltd., Class A

     Chemicals          6,200          17,496  
 

Sinomine Resource Group Co. Ltd., Class A

     Metals & Mining          2,240          11,194  
 

Sinopec Engineering Group Co. Ltd., Class H

     Construction & Engineering          77,500          34,931  
a  

Sinopec Oilfield Service Corp., Class H

     Energy Equipment & Services          124,000          9,816  
a  

Sinopec Shanghai Petrochemical Co. Ltd., Class A

     Chemicals          24,800          10,552  
a  

Sinopec Shanghai Petrochemical Co. Ltd., Class H

     Chemicals          186,000          26,362  
 

Sinopharm Group Co. Ltd., Class H

     Health Care Providers & Services          66,000          191,296  
 

Sinotrans Ltd., Class A

     Air Freight & Logistics          15,500          10,573  
 

Sinotrans Ltd., Class H

     Air Freight & Logistics          93,000          33,961  
 

Sinotruk Hong Kong Ltd.

     Machinery          31,000          59,690  
a  

Skshu Paint Co. Ltd., Class A

     Chemicals          3,172          29,836  
b  

Smoore International Holdings Ltd.

     Tobacco          93,730          85,091  
 

Songcheng Performance Development Co. Ltd., Class A

     Hotels, Restaurants & Leisure          9,960          16,705  
 

SooChow Securities Co. Ltd., Class A

     Capital Markets          18,804          21,757  
 

Southwest Securities Co. Ltd., Class A

     Capital Markets          27,900          15,777  
a  

Spring Airlines Co. Ltd., Class A

     Passenger Airlines          3,100          23,278  

 

           
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             177


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

StarPower Semiconductor Ltd., Class A

     Semiconductors & Semiconductor Equipment          900        $ 22,191  
a  

STO Express Co. Ltd., Class A

     Air Freight & Logistics          6,200          8,935  
 

Sun Art Retail Group Ltd.

     Consumer Staples Distribution & Retail          108,500          22,997  
b  

Sunac Services Holdings Ltd.

     Real Estate Management & Development          32,898          10,375  
 

Sungrow Power Supply Co. Ltd., Class A

     Electrical Equipment          6,200          76,171  
 

Sunny Optical Technology Group Co. Ltd.

     Electronic Equipment, Instruments & Components          34,100          238,165  
 

Sunresin New Materials Co. Ltd., Class A

     Chemicals          3,100          24,848  
 

Sunwoda Electronic Co. Ltd., Class A

     Electrical Equipment          6,200          14,381  
 

SUPCON Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          2,914          19,118  
 

Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          6,200          14,756  
 

Suzhou Gold Mantis Construction Decoration Co. Ltd., Class A

     Construction & Engineering          9,300          5,795  
 

Suzhou Maxwell Technologies Co. Ltd., Class A

     Electrical Equipment          1,024          17,796  
 

Suzhou TFC Optical Communication Co. Ltd., Class A

     Communications Equipment          3,100          40,421  
 

Taiji Computer Corp. Ltd., Class A

     IT Services          3,100          13,020  
a,c  

TAL Education Group, ADR

     Diversified Consumer Services          23,064          210,113  
 

Tangshan Jidong Cement Co. Ltd., Class A

     Construction Materials          12,400          12,833  
 

TangShan Port Group Co. Ltd., Class A

     Transportation Infrastructure          21,700          10,990  
 

Tangshan Sanyou Chemical Industries Co. Ltd., Class A

     Chemicals          9,500          7,719  
 

TBEA Co. Ltd., Class A

     Electrical Equipment          19,220          39,096  
a  

TCL Technology Group Corp., Class A

     Electronic Equipment, Instruments & Components          74,980          41,989  
 

TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          15,500          49,740  
c  

Tencent Holdings Ltd.

     Interactive Media & Services          328,464          12,841,880  
a,c  

Tencent Music Entertainment Group, ADR

     Entertainment          33,077          211,031  
 

Thunder Software Technology Co. Ltd., Class A

     Software          1,500          15,764  
 

Tian Di Science & Technology Co. Ltd., Class A

     Machinery          15,500          11,552  
 

Tianjin Chase Sun Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          12,400          7,812  
a  

Tianma Microelectronics Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          12,400          15,692  
 

Tianqi Lithium Corp., Class A

     Chemicals          6,200          46,744  
 

Tianqi Lithium Corp., Class H

     Chemicals          6,200          34,713  
 

Tianshan Aluminum Group Co. Ltd., Class A

     Metals & Mining          9,300          8,361  
 

Tianshui Huatian Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          15,500          19,104  
 

Tingyi Cayman Islands Holding Corp.

     Food Products          102,000          142,480  
a  

Titan Wind Energy Suzhou Co. Ltd., Class A

     Electrical Equipment          6,200          10,986  
a,c  

Tongcheng Travel Holdings Ltd.

     Hotels, Restaurants & Leisure          65,600          144,068  
 

TongFu Microelectronics Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          6,200          16,313  
a  

Tongkun Group Co. Ltd., Class A

     Chemicals          9,300          18,828  
 

Tongling Nonferrous Metals Group Co. Ltd., Class A

     Metals & Mining          43,400          19,002  
 

Tongwei Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          15,500          68,631  
a  

Topchoice Medical Corp., Class A

     Health Care Providers & Services          1,200          14,527  
a  

Topsec Technologies Group, Inc., Class A

     Software          6,200          7,625  
b  

Topsports International Holdings Ltd.

     Specialty Retail          155,000          117,756  
 

Towngas Smart Energy Co. Ltd.

     Gas Utilities          62,000          27,312  
 

TravelSky Technology Ltd., Class H

     Hotels, Restaurants & Leisure          50,000          86,697  
 

Trina Solar Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          8,587          36,030  
a,c  

Trip.com Group Ltd.

     Hotels, Restaurants & Leisure          27,929          995,649  
 

Tsingtao Brewery Co. Ltd., Class A

     Beverages          3,100          37,213  
 

Tsingtao Brewery Co. Ltd., Class H

     Beverages          31,722          259,630  
a,c  

Tuya, Inc., ADR

     Software          13,051          20,229  
a  

Unigroup Guoxin Microelectronics Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          3,199          38,287  

 

           
178             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Uni-President China Holdings Ltd.

     Food Products          62,000        $ 43,540  
a  

Unisplendour Corp. Ltd., Class A

     Electronic Equipment, Instruments & Components          6,200          20,058  
 

Universal Scientific Industrial Shanghai Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          3,100          6,208  
 

Valiant Co. Ltd., Class A

     Chemicals          3,100          7,344  
a,c  

Vipshop Holdings Ltd., ADR

     Broadline Retail          16,275          260,563  
 

Walvax Biotechnology Co. Ltd., Class A

     Biotechnology          6,200          20,032  
a  

Wanda Film Holding Co. Ltd., Class A

     Entertainment          9,300          17,207  
 

Wangsu Science & Technology Co. Ltd., Class A

     IT Services          9,300          8,527  
 

Wanhua Chemical Group Co. Ltd., Class A

     Chemicals          12,400          150,316  
 

Want Want China Holdings Ltd.

     Food Products          217,000          141,585  
 

Wanxiang Qianchao Co. Ltd., Class A

     Automobile Components          15,500          11,063  
c  

Weibo Corp., ADR

     Interactive Media & Services          3,751          47,038  
 

Weichai Power Co. Ltd., Class A

     Machinery          24,800          42,651  
 

Weichai Power Co. Ltd., Class H

     Machinery          93,000          126,583  
 

Weifu High-Technology Group Co. Ltd., Class A

     Automobile Components          3,100          7,144  
 

Weifu High-Technology Group Co. Ltd., Class B

     Automobile Components          9,300          11,471  
 

Wens Foodstuffs Group Co. Ltd., Class A

     Food Products          6,200          14,790  
 

Western Mining Co. Ltd., Class A

     Metals & Mining          9,300          16,403  
 

Western Securities Co. Ltd., Class A

     Capital Markets          18,600          16,849  
 

Western Superconducting Technologies Co. Ltd., Class A

     Metals & Mining          2,083          13,083  
 

Will Semiconductor Co. Ltd. Shanghai, Class A

     Semiconductors & Semiconductor Equipment          3,100          39,596  
a  

Wingtech Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          6,200          37,145  
 

Winning Health Technology Group Co. Ltd., Class A

     Health Care Technology          10,200          10,206  
 

Wolong Electric Group Co. Ltd., Class A

     Electrical Equipment          6,200          10,237  
 

Wuchan Zhongda Group Co. Ltd., Class A

     Distributors          24,800          16,135  
 

Wuhan Guide Infrared Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          22,374          23,400  
 

Wuliangye Yibin Co. Ltd., Class A

     Beverages          14,700          314,953  
 

WUS Printed Circuit Kunshan Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          9,340          28,857  
 

WuXi AppTec Co. Ltd., Class A

     Life Sciences Tools & Services          9,300          110,006  
b  

WuXi AppTec Co. Ltd., Class H

     Life Sciences Tools & Services          18,320          219,297  
a,b  

Wuxi Biologics Cayman, Inc.

     Life Sciences Tools & Services          187,795          1,094,613  
 

XCMG Construction Machinery Co. Ltd., Class A

     Machinery          46,500          40,655  
 

Xiamen C & D, Inc., Class A

     Trading Companies & Distributors          12,400          16,883  
 

Xiamen Faratronic Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          800          10,643  
 

Xiamen ITG Group Corp. Ltd., Class A

     Trading Companies & Distributors          9,300          10,059  
 

Xiamen Tungsten Co. Ltd., Class A

     Metals & Mining          6,200          14,594  
 

Xiangcai Co. Ltd., Class A

     Real Estate Management & Development          12,400          13,326  
a,b,c  

Xiaomi Corp., Class B

     Technology Hardware, Storage & Peripherals          768,800          1,211,335  
 

Xinhua Winshare Publishing & Media Co. Ltd., Class H

     Media          31,000          24,422  
 

Xinjiang Daqo New Energy Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          3,100          17,202  
 

Xinjiang Tianshan Cement Co. Ltd., Class A

     Construction Materials          9,300          9,931  
 

Xinjiang Zhongtai Chemical Co. Ltd., Class A

     Chemicals          12,400          11,624  
 

Xinxing Ductile Iron Pipes Co. Ltd., Class A

     Metals & Mining          15,500          8,786  
 

Xinyi Solar Holdings Ltd.

     Semiconductors & Semiconductor Equipment          224,100          167,678  
a,c  

XPeng, Inc., Class A

     Automobiles          58,900          526,064  
 

Xtep International Holdings Ltd.

     Textiles, Apparel & Luxury Goods          62,000          57,473  
 

Xuji Electric Co. Ltd., Class A

     Electrical Equipment          3,100          8,250  
b  

Yadea Group Holdings Ltd.

     Automobiles          52,000          96,539  
 

Yangling Metron New Material, Inc., Class A

     Semiconductors & Semiconductor Equipment          3,100          17,700  
a,d  

Yango Group Co. Ltd., Class A

     Real Estate Management & Development          20,300           

 

           
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SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
b  

Yangtze Optical Fibre & Cable Joint Stock Co. Ltd., Class H

     Communications Equipment          8,500        $ 11,678  
 

Yangzhou Yangjie Electronic Technology Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          3,100          14,875  
 

Yangzijiang Shipbuilding Holdings Ltd.

     Machinery          136,400          165,891  
 

Yankuang Energy Group Co. Ltd., Class A

     Oil, Gas & Consumable Fuels          6,200          17,232  
 

Yankuang Energy Group Co. Ltd., Class H

     Oil, Gas & Consumable Fuels          112,000          211,649  
 

Yantai Changyu Pioneer Wine Co. Ltd., Class B

     Beverages          12,400          15,484  
 

Yantai Eddie Precision Machinery Co. Ltd., Class A

     Machinery          3,860          9,388  
 

Yantai Jereh Oilfield Services Group Co. Ltd., Class A

     Energy Equipment & Services          3,100          13,569  
 

Yealink Network Technology Corp. Ltd., Class A

     Communications Equipment          4,260          20,839  
a  

Yifan Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          6,200          11,667  
 

Yifeng Pharmacy Chain Co. Ltd., Class A

     Consumer Staples Distribution & Retail          4,386          21,112  
 

Yihai International Holding Ltd.

     Food Products          31,000          53,436  
 

Yihai Kerry Arawana Holdings Co. Ltd., Class A

     Food Products          8,200          38,694  
 

Yintai Gold Co. Ltd., Class A

     Metals & Mining          9,500          18,555  
 

Yixintang Pharmaceutical Group Co. Ltd., Class A

     Consumer Staples Distribution & Retail          3,100          9,867  
 

Yonfer Agricultural Technology Co. Ltd., Class A

     Chemicals          6,200          9,080  
 

YongXing Special Materials Technology Co. Ltd., Class A

     Metals & Mining          1,430          8,915  
 

Yonyou Network Technology Co. Ltd., Class A

     Software          13,390          30,545  
 

Youngor Group Co. Ltd., Class A

     Real Estate Management & Development          18,600          18,151  
 

Youngy Co. Ltd., Class A

     Metals & Mining          1,000          7,505  
 

YTO Express Group Co. Ltd., Class A

     Air Freight & Logistics          12,400          25,580  
a  

Yuan Longping High-tech Agriculture Co. Ltd., Class A

     Food Products          6,200          12,765  
 

Yuexiu Property Co. Ltd.

     Real Estate Management & Development          93,000          107,228  
 

Yum China Holdings, Inc.

     Hotels, Restaurants & Leisure          21,300          1,201,548  
 

Yunda Holding Co. Ltd., Class A

     Air Freight & Logistics          6,500          8,797  
 

Yunnan Aluminium Co. Ltd., Class A

     Metals & Mining          12,490          25,886  
 

Yunnan Baiyao Group Co. Ltd., Class A

     Pharmaceuticals          6,580          48,137  
 

Yunnan Botanee Bio-Technology Group Co. Ltd., Class A

     Personal Care Products          700          8,965  
 

Yunnan Copper Co. Ltd., Class A

     Metals & Mining          6,200          10,016  
 

Yunnan Energy New Material Co. Ltd., Class A

     Chemicals          3,100          25,487  
 

Yunnan Tin Co. Ltd., Class A

     Metals & Mining          6,200          12,194  
 

Yunnan Yuntianhua Co. Ltd., Class A

     Chemicals          6,200          14,543  
a  

Zai Lab Ltd.

     Biotechnology          49,600          119,949  
 

Zangge Mining Co. Ltd., Class A

     Chemicals          6,200          19,419  
 

Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          2,200          83,102  
 

Zhaojin Mining Industry Co. Ltd., Class H

     Metals & Mining          62,000          86,447  
 

Zhefu Holding Group Co. Ltd., Class A

     Electrical Equipment          24,800          13,207  
a  

Zhejiang Century Huatong Group Co. Ltd., Class A

     Entertainment          27,900          18,496  
 

Zhejiang China Commodities City Group Co. Ltd., Class A

     Real Estate Management & Development          21,700          26,925  
 

Zhejiang Chint Electrics Co. Ltd., Class A

     Electrical Equipment          6,200          19,819  
 

Zhejiang Crystal-Optech Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          6,200          9,497  
 

Zhejiang Dahua Technology Co. Ltd., Class A

     Electronic Equipment, Instruments & Components          12,400          37,902  
 

Zhejiang Expressway Co. Ltd., Class H

     Transportation Infrastructure          62,000          46,232  
 

Zhejiang Hailiang Co. Ltd., Class A

     Metals & Mining          6,200          10,016  
 

Zhejiang HangKe Technology, Inc. Co., Class A

     Electrical Equipment          1,674          6,008  

 

           
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SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    China (continued)                         
 

Zhejiang Hisoar Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          6,200        $ 7,318  
 

Zhejiang Huace Film & Television Co. Ltd., Class A

     Entertainment          9,300          7,365  
 

Zhejiang Huahai Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          6,400          14,889  
 

Zhejiang Huayou Cobalt Co. Ltd., Class A

     Metals & Mining          6,260          32,229  
 

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          6,200          40,600  
 

Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          3,100          12,331  
 

Zhejiang Juhua Co. Ltd., Class A

     Chemicals          9,300          19,428  
a,b  

Zhejiang Leapmotor Technologies Ltd.

     Automobiles          6,200          27,549  
 

Zhejiang Medicine Co. Ltd., Class A

     Pharmaceuticals          3,100          4,753  
 

Zhejiang NHU Co. Ltd., Class A

     Pharmaceuticals          12,656          28,210  
 

Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A

     Machinery          6,200          25,274  
 

Zhejiang Supor Co. Ltd., Class A

     Household Durables          3,100          20,628  
 

Zhejiang Wanfeng Auto Wheel Co. Ltd., Class A

     Automobile Components          6,200          4,561  
a  

Zhejiang Wanliyang Co. Ltd., Class A

     Machinery          6,200          7,335  
 

Zhejiang Weiming Environment Protection Co. Ltd., Class A

     Commercial Services & Supplies          3,180          7,725  
 

Zhejiang Weixing New Building Materials Co. Ltd., Class A

     Building Products          6,200          15,530  
 

Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A

     Pharmaceuticals          3,100          12,658  
 

Zhejiang Yongtai Technology Co. Ltd., Class A

     Chemicals          3,100          5,446  
 

Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A

     Machinery          6,200          11,131  
 

Zheshang Securities Co. Ltd., Class A

     Capital Markets          6,200          8,578  
a,b  

ZhongAn Online P&C Insurance Co. Ltd., Class H

     Insurance          40,300          118,865  
 

Zhongji Innolight Co. Ltd., Class A

     Communications Equipment          3,100          49,272  
 

Zhongjin Gold Corp. Ltd., Class A

     Metals & Mining          12,400          18,619  
 

Zhongshan Public Utilities Group Co. Ltd., Class A

     Water Utilities          6,200          6,391  
 

Zhongsheng Group Holdings Ltd.

     Specialty Retail          34,000          95,724  
 

Zhongtai Securities Co. Ltd., Class A

     Capital Markets          9,300          9,063  
 

Zhuhai Huafa Properties Co. Ltd., Class A

     Real Estate Management & Development          9,300          12,229  
 

Zhuzhou CRRC Times Electric Co. Ltd., Class A

     Machinery          2,002          10,931  
 

Zhuzhou CRRC Times Electric Co. Ltd., Class H

     Machinery          27,900          96,540  
 

Zhuzhou Kibing Group Co. Ltd., Class A

     Building Products          9,300          10,467  
 

Zijin Mining Group Co. Ltd., Class A

     Metals & Mining          77,500          129,029  
 

Zijin Mining Group Co. Ltd., Class H

     Metals & Mining          302,000          461,955  
 

Zoomlion Heavy Industry Science & Technology Co. Ltd., Class A

     Machinery          27,900          26,231  
 

Zoomlion Heavy Industry Science & Technology Co. Ltd., Class H

     Machinery          80,600          43,841  
 

ZTE Corp., Class A

     Communications Equipment          15,500          69,525  
 

ZTE Corp., Class H

     Communications Equipment          37,200          112,334  
              

 

 

 
                 102,613,658  
              

 

 

 
    Hong Kong 3.4%                         
a  

Alibaba Health Information Technology Ltd., Class A

     Consumer Staples Distribution & Retail          310,000          193,160  
a  

Alibaba Pictures Group Ltd., Class A

     Entertainment          620,000          49,082  
 

Beijing Enterprises Water Group Ltd., Class A

     Water Utilities          186,000          40,611  
 

Bosideng International Holdings Ltd., Class A

     Textiles, Apparel & Luxury Goods          186,000          80,035  

 

           
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SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

           Industry        Shares        Value  
 

Common Stocks (continued)

            
    Hong Kong (continued)                         
 

China Everbright Environment Group Ltd., Class B

     Commercial Services & Supplies          186,000        $ 64,123  
 

China Everbright Ltd., Class A

     Capital Markets          42,000          24,293  
 

China Gas Holdings Ltd., Class A

     Gas Utilities          155,000          146,255  
 

China Mengniu Dairy Co. Ltd., Class B

     Food Products          162,000          542,975  
 

China Power International Development Ltd., Class H

     Independent Power Producers & Energy Traders          248,000          90,247  
 

China Resources Beer Holdings Co. Ltd., Class A

     Beverages          82,848          454,340  
 

China Resources Gas Group Ltd., Class A

     Gas Utilities          46,900          137,433  
 

China Resources Land Ltd., Class H

     Real Estate Management & Development          147,700          588,397  
 

China State Construction International Holdings Ltd., Class A

     Construction & Engineering          94,000          98,899  
 

China Traditional Chinese Medicine Holdings Co. Ltd.

     Pharmaceuticals          124,000          57,790  
 

COSCO SHIPPING Ports Ltd., Class B

     Transportation Infrastructure          62,000          40,532  
 

Far East Horizon Ltd.

     Financial Services          62,000          44,648  
 

Geely Automobile Holdings Ltd.

     Automobiles          279,000          329,164  
 

Guangdong Investment Ltd.

     Water Utilities          152,500          116,441  
 

Kingboard Laminates Holdings Ltd.

     Electronic Equipment, Instruments & Components          58,100          41,098  
 

Kunlun Energy Co. Ltd.

     Gas Utilities          186,000          160,307  
 

Shanghai Industrial Holdings Ltd.

     Industrial Conglomerates          31,000          38,949  
 

Shougang Fushan Resources Group Ltd.

     Metals & Mining          62,000          21,057  
 

Sino Biopharmaceutical Ltd.

     Pharmaceuticals          496,000          179,227  
 

Vinda International Holdings Ltd.

     Household Products          13,000          31,239  
              

 

 

 
                 3,570,302  
              

 

 

 
    Singapore 0.0%                         
 

Yangzijiang Financial Holding Ltd.

     Capital Markets          127,616          33,659  
a  

Yanlord Land Group Ltd.

     Real Estate Management & Development          34,100          16,489  
              

 

 

 
                 50,148  
              

 

 

 
 

Total Common Stocks (Cost $142,921,466)

               106,234,108  
              

 

 

 
 

Total Investments (Cost $142,921,466) 99.7%

               106,234,108  
 

Other Assets, less Liabilities 0.3%

               268,134  
              

 

 

 
 

Net Assets 100.0%

             $ 106,502,242  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $13,119,355, representing 12.3% of net assets.

cVariable interest entity (VIE). See the Fund’s statement of additional information and/or notes to financial statements regarding investments made through a VIE structure. At September 30, 2023, the aggregate value of these securities was $48,458,703, representing 45.5% of net assets.

dFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE China ETF (continued)

 

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Equity Contracts                                   

MSCI China Futures

     Long        10      $ 222,800        12/15/23      $ (8,024

*As of period end.

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Europe ETF

 

    Six Months Ended
September 30, 2023
(unaudited)
     Year Ended March 31,  
      2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 26.56      $ 27.18      $ 27.28      $ 19.03      $ 23.24      $ 24.98  
       
Income from investment operationsa:                 

Net investment incomeb

    0.54        1.11        0.85        0.60        0.76        0.86  

Net realized and unrealized gains (losses)

    (1.04      (0.89      0.11        8.14        (4.21      (1.79
       

Total from investment operations

    (0.50      0.22        0.96        8.74        (3.45      (0.93
       

Less distributions from net investment income

    (0.54      (0.84      (1.06      (0.49      (0.76      (0.81
       

Net asset value, end of period

  $ 25.52      $ 26.56      $ 27.18      $ 27.28      $ 19.03      $ 23.24  
       

Total returnc

    (2.01)%        1.31%        3.30%        46.23%        (15.44)%        (3.69)%  
Ratios to average net assetsd                 

Expenses before waiver and payments by affiliates

    0.22%e        0.24%e        0.09%        0.09%        0.09%        0.09%  

Expenses net of waiver and payments by affiliates

    0.22%e        0.24%e        0.09%        0.09%        0.09%        —%  

Net investment income

    4.06%        4.50%        2.96%        2.53%        3.23%        3.61%  
Supplemental data                 

Net assets, end of period (000’s)

    $117,407        $111,558        $184,857        $229,126        $91,356        $74,359  

Portfolio turnover ratef

    2.67%g        5.22%g        5.47%g        5.00%g        4.47%g        5.81%  

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

bBased on average daily shares outstanding.

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

dRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

eExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the period ended September 30, 2023 and year ended March 31, 2023.

fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

gPortfolio turnover rate excluding cash creations was as follows:     2.67%        5.22%        5.47%        4.92%        4.47%         

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Europe ETF

 

           Industry            Shares                Value  
 

Common Stocks 98.3%

 

    Australia 1.4%         
 

Glencore PLC

     Metals & Mining          145,682        $ 835,539  
 

Rio Tinto PLC

     Metals & Mining          12,880          813,388  
              

 

 

 
                 1,648,927  
              

 

 

 
    Austria 0.3%                         
 

ANDRITZ AG

     Machinery          828          41,921  
 

Erste Group Bank AG

     Banks          3,634          126,275  
a  

Eurotelesites AG

     Diversified Telecommunication Services          414          1,815  
 

OMV AG

     Oil, Gas & Consumable Fuels          1,656          79,459  
a  

Raiffeisen Bank International AG

     Banks          1,495          21,859  
 

Telekom Austria AG

     Diversified Telecommunication Services          1,656          11,572  
 

Verbund AG

     Electric Utilities          782          63,793  
 

voestalpine AG

     Metals & Mining          1,288          35,237  
              

 

 

 
                 381,931  
              

 

 

 
    Belgium 1.2%                         
 

Ackermans & van Haaren NV

     Construction & Engineering          253          38,331  
 

Ageas SA

     Insurance          1,932          79,836  
 

Anheuser-Busch InBev SA

     Beverages          10,235          569,015  
 

D’ieteren Group

     Distributors          253          42,831  
 

Elia Group SA

     Electric Utilities          437          42,867  
 

Groupe Bruxelles Lambert NV

     Financial Services          1,173          87,629  
 

KBC Group NV

     Banks          2,921          182,897  
 

Lotus Bakeries NV

     Food Products          5          40,709  
 

Sofina SA

     Financial Services          207          42,035  
 

Solvay SA

     Chemicals          828          91,916  
 

UCB SA

     Pharmaceuticals          1,426          117,068  
 

Umicore SA

     Chemicals          2,438          57,949  
 

Warehouses De Pauw CVA

     Industrial REITs          1,840          45,664  
              

 

 

 
                 1,438,747  
              

 

 

 
    Bermuda 0.0%                         
 

Hiscox Ltd.

     Insurance          4,025          49,373  
              

 

 

 
    Chile 0.1%                         
 

Antofagasta PLC

     Metals & Mining          4,117          71,807  
              

 

 

 
    Denmark 4.7%                         
 

AP Moller – Maersk AS, Class A

     Marine Transportation          33          58,708  
 

AP Moller – Maersk AS, Class B

     Marine Transportation          59          106,679  
 

Carlsberg AS, Class B

     Beverages          1,127          142,635  
 

Chr Hansen Holding AS

     Chemicals          1,219          74,837  
 

Coloplast AS, Class B

     Health Care Equipment & Supplies          1,472          156,245  
 

Danske Bank AS

     Banks          7,797          181,940  
a  

Demant AS

     Health Care Equipment & Supplies          1,173          48,731  
 

DSV AS

     Air Freight & Logistics          2,093          391,962  
a  

Genmab AS

     Biotechnology          782          278,461  
 

H Lundbeck AS

     Pharmaceuticals          2,852          15,428  
 

H Lundbeck AS, Class A

     Pharmaceuticals          230          1,090  
 

Novo Nordisk AS, Class B

     Pharmaceuticals          37,007          3,383,236  
 

Novozymes AS, Class B

     Chemicals          2,346          94,830  
b  

Orsted AS

     Electric Utilities          2,231          121,984  
 

Pandora AS

     Textiles, Apparel & Luxury Goods          966          100,341  
 

ROCKWOOL AS, Class B

     Building Products          92          22,369  
 

Royal Unibrew AS

     Beverages          575          44,559  
 

Tryg AS

     Insurance          4,117          75,610  
a  

Vestas Wind Systems AS

     Electrical Equipment          11,845          254,888  
              

 

 

 
                 5,554,533  
              

 

 

 

 

           
franklintempleton.com  

Semiannual Report

             185


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Finland 1.7%                       
 

Elisa Oyj

     Diversified Telecommunication Services          1,679        $ 78,021  
 

Fortum Oyj

     Electric Utilities          5,175          60,242  
 

Kesko Oyj, Class B

     Consumer Staples Distribution & Retail          3,197          57,441  
 

Kone Oyj, Class B

     Machinery          3,841          162,341  
 

Metso Oyj

     Machinery          7,498          79,020  
 

Neste Oyj

     Oil, Gas & Consumable Fuels          4,899          166,652  
 

Nokia Oyj

     Communications Equipment          62,353          235,546  
 

Nordea Bank Abp

     Banks          40,273          443,958  
 

Orion Oyj, Class B

     Pharmaceuticals          1,265          49,849  
 

Sampo Oyj, Class A

     Insurance          5,635          244,489  
 

Stora Enso Oyj, Class R

     Paper & Forest Products          6,693          84,255  
 

UPM-Kymmene Oyj

     Paper & Forest Products          6,302          216,648  
 

Valmet Oyj

     Machinery          2,001          45,888  
 

Wartsila Oyj Abp

     Machinery          5,750          65,474  
              

 

 

 
                 1,989,824  
              

 

 

 
    France 17.1%                         
 

Accor SA

     Hotels, Restaurants & Leisure          2,185          73,889  
 

Aeroports de Paris SA

     Transportation Infrastructure          368          43,598  
 

Air Liquide SA

     Chemicals          6,072          1,027,568  
 

Airbus SE

     Aerospace & Defense          6,923          930,729  
b  

ALD SA

     Ground Transportation          2,300          17,862  
 

Alstom SA

     Machinery          3,381          80,900  
b  

Amundi SA

     Capital Markets          667          37,675  
 

Arkema SA

     Chemicals          690          68,349  
 

AXA SA

     Insurance          21,022          627,203  
 

BioMerieux

     Health Care Equipment & Supplies          506          49,190  
 

BNP Paribas SA

     Banks          12,673          810,822  
 

Bollore SE

     Entertainment          10,281          55,405  
 

Bouygues SA

     Construction & Engineering          2,530          88,770  
 

Bureau Veritas SA

     Professional Services          3,381          84,157  
 

Capgemini SE

     IT Services          1,909          335,107  
 

Carrefour SA

     Consumer Staples Distribution & Retail          6,877          118,571  
 

Cie de Saint-Gobain SA

     Building Products          5,497          331,039  
 

Cie Generale des Etablissements Michelin SCA

     Automobile Components          8,257          254,133  
 

Covivio SA

     Office REITs          621          27,680  
 

Credit Agricole SA

     Banks          13,087          162,003  
 

Danone SA

     Food Products          7,383          408,503  
 

Dassault Aviation SA

     Aerospace & Defense          276          52,131  
 

Dassault Systemes SE

     Software          7,912          295,660  
 

Edenred SE

     Financial Services          2,944          184,773  
 

Eiffage SA

     Construction & Engineering          874          83,318  
 

Engie SA

     Multi-Utilities          19,711          303,227  
 

EssilorLuxottica SA

     Health Care Equipment & Supplies          3,611          631,431  
 

Eurazeo SE

     Financial Services          575          34,366  
 

Gecina SA

     Office REITs          621          63,612  
 

Getlink SE

     Transportation Infrastructure          4,209          67,334  
 

Hermes International SCA

     Textiles, Apparel & Luxury Goods          403          738,065  
 

Ipsen SA

     Pharmaceuticals          414          54,440  
a  

JCDecaux SE

     Media          874          14,824  
 

Kering SA

     Textiles, Apparel & Luxury Goods          851          389,140  
 

Klepierre SA

     Retail REITs          2,392          58,831  
b  

La Francaise des Jeux SAEM

     Hotels, Restaurants & Leisure          1,173          38,251  
 

Legrand SA

     Electrical Equipment          3,036          280,614  
 

L’Oreal SA

     Personal Care Products          2,737          1,139,415  
 

LVMH Moet Hennessy Louis Vuitton SE

     Textiles, Apparel & Luxury Goods          2,921          2,215,545  
b  

Neoen SA

     Independent Power Producers & Energy Traders          828          24,213  
 

Orange SA

     Diversified Telecommunication Services          22,586          259,694  

 

           
186             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    France (continued)                       
 

Pernod Ricard SA

     Beverages          2,415        $ 403,604  
 

Publicis Groupe SA

     Media          2,691          204,451  
 

Remy Cointreau SA

     Beverages          253          30,978  
 

Renault SA

     Automobiles          2,277          93,719  
 

Rexel SA

     Trading Companies & Distributors          2,852          64,317  
 

Safran SA

     Aerospace & Defense          4,025          633,425  
 

Sanofi

     Pharmaceuticals          12,880          1,383,852  
 

Sartorius Stedim Biotech

     Life Sciences Tools & Services          276          66,041  
 

Schneider Electric SE

     Electrical Equipment          6,302          1,047,409  
 

SCOR SE

     Insurance          1,771          55,258  
 

SEB SA

     Household Durables          276          25,905  
 

Societe Generale SA

     Banks          8,395          204,829  
 

Sodexo SA

     Hotels, Restaurants & Leisure          1,035          106,863  
a  

SOITEC

     Semiconductors & Semiconductor Equipment          299          49,938  
 

Teleperformance SE

     Professional Services          690          87,226  
 

Thales SA

     Aerospace & Defense          1,173          165,299  
 

TotalEnergies SE

     Oil, Gas & Consumable Fuels          26,496          1,747,960  
a  

Ubisoft Entertainment SA

     Entertainment          1,196          38,950  
a  

Unibail-Rodamco-Westfield

     Retail REITs          1,219          60,336  
 

Valeo SE

     Automobile Components          2,438          42,152  
 

Veolia Environnement SA

     Multi-Utilities          7,498          217,753  
 

Vinci SA

     Construction & Engineering          5,796          644,457  
 

Vivendi SE

     Media          7,843          68,888  
 

Wendel SE

     Financial Services          322          25,586  
a,b  

Worldline SA

     Financial Services          2,898          81,769  
              

 

 

 
                 20,113,002  
              

 

 

 
    Germany 11.9%                         
 

adidas AG

     Textiles, Apparel & Luxury Goods          1,955          344,880  
 

Allianz SE

     Insurance          4,692          1,121,200  
 

BASF SE

     Chemicals          10,511          477,970  
 

Bayer AG

     Pharmaceuticals          11,592          557,809  
 

Bayerische Motoren Werke AG

     Automobiles          3,680          375,516  
 

Bechtle AG

     IT Services          989          46,324  
 

Beiersdorf AG

     Personal Care Products          1,173          151,700  
 

Brenntag SE

     Trading Companies & Distributors          1,840          143,146  
 

Carl Zeiss Meditec AG

     Health Care Equipment & Supplies          437          38,319  
 

Commerzbank AG

     Banks          12,305          140,571  
 

Continental AG

     Automobile Components          1,265          89,413  
a,b  

Covestro AG

     Chemicals          2,231          120,607  
 

CTS Eventim AG & Co. KGaA

     Entertainment          713          40,651  
 

Daimler Truck Holding AG

     Machinery          6,348          220,581  
a,b  

Delivery Hero SE

     Hotels, Restaurants & Leisure          2,254          64,839  
 

Deutsche Bank AG

     Capital Markets          23,897          264,395  
 

Deutsche Boerse AG

     Capital Markets          2,185          378,699  
a  

Deutsche Lufthansa AG

     Passenger Airlines          7,107          56,479  
 

Deutsche Post AG

     Air Freight & Logistics          11,109          453,235  
 

Deutsche Telekom AG

     Diversified Telecommunication Services          40,020          841,831  
 

Deutsche Wohnen SE

     Real Estate Management & Development          621          14,136  
b  

DWS Group GmbH & Co. KGaA

     Capital Markets          414          14,114  
 

E.ON SE

     Multi-Utilities          26,289          311,735  
 

Evonik Industries AG

     Chemicals          2,415          44,298  
 

Fielmann Group AG

     Specialty Retail          276          11,946  
a  

Fraport AG Frankfurt Airport Services Worldwide

     Transportation Infrastructure          414          22,021  
 

Fresenius Medical Care AG & Co. KGaA

     Health Care Providers & Services          2,392          103,429  
 

Fresenius SE & Co. KGaA

     Health Care Providers & Services          4,830          150,651  
 

FUCHS SE

     Chemicals          391          12,564  

 

           
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             187


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Germany (continued)                       
 

GEA Group AG

     Machinery          1,909        $ 70,660  
 

Hannover Rueck SE

     Insurance          713          156,941  
 

Heidelberg Materials AG

     Construction Materials          1,633          127,112  
 

Hella GmbH & Co. KGaA

     Automobile Components          276          19,578  
a  

HelloFresh SE

     Consumer Staples Distribution & Retail          1,886          56,470  
 

Henkel AG & Co. KGaA

     Household Products          1,196          75,621  
 

HOCHTIEF AG

     Construction & Engineering          253          25,648  
 

Infineon Technologies AG

     Semiconductors & Semiconductor Equipment          15,410          511,567  
 

KION Group AG

     Machinery          851          32,787  
 

Knorr-Bremse AG

     Machinery          782          49,826  
a  

LEG Immobilien SE

     Real Estate Management & Development          874          60,462  
 

Mercedes-Benz Group AG

     Automobiles          10,166          709,191  
 

Merck KGaA

     Pharmaceuticals          1,518          254,176  
 

MTU Aero Engines AG

     Aerospace & Defense          644          117,105  
 

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen

     Insurance          1,633          638,151  
 

Nemetschek SE

     Software          621          38,055  
 

Puma SE

     Textiles, Apparel & Luxury Goods          1,196          74,456  
 

Rational AG

     Machinery          46          29,222  
 

Rheinmetall AG

     Aerospace & Defense          506          130,664  
 

RWE AG

     Independent Power Producers & Energy Traders          8,418          313,276  
 

SAP SE

     Software          12,972          1,686,823  
 

Sartorius AG

     Life Sciences Tools & Services          23          6,429  
b  

Scout24 SE

     Interactive Media & Services          874          60,758  
 

Siemens AG

     Industrial Conglomerates          8,809          1,265,237  
a  

Siemens Energy AG

     Electrical Equipment          5,083          66,625  
b  

Siemens Healthineers AG

     Health Care Equipment & Supplies          3,266          165,978  
 

Sixt SE

     Ground Transportation          161          14,966  
 

Symrise AG

     Chemicals          1,541          147,360  
 

Talanx AG

     Insurance          644          40,910  
 

Telefonica Deutschland Holding AG

     Diversified Telecommunication Services          10,511          18,863  
 

thyssenkrupp AG

     Metals & Mining          5,750          43,991  
 

Traton SE

     Machinery          575          12,133  
 

Volkswagen AG

     Automobiles          345          45,549  
 

Vonovia SE

     Real Estate Management & Development          8,257          199,407  
 

Wacker Chemie AG

     Chemicals          184          26,426  
a,b  

Zalando SE

     Specialty Retail          2,599          58,143  
              

 

 

 
                 13,963,625  
              

 

 

 
    Ireland 1.6%                         
 

AIB Group PLC

     Banks          14,950          67,429  
 

Bank of Ireland Group PLC

     Banks          12,489          122,839  
 

CRH PLC

     Construction Materials          8,556          474,322  
 

DCC PLC

     Industrial Conglomerates          1,173          65,987  
 

Experian PLC

     Professional Services          10,810          355,055  
a  

Flutter Entertainment PLC

     Hotels, Restaurants & Leisure          2,093          342,062  
 

Glanbia PLC

     Food Products          2,093          34,591  
 

Kerry Group PLC, Class A

     Food Products          1,817          152,323  
 

Kingspan Group PLC

     Building Products          1,794          134,781  
 

Smurfit Kappa Group PLC

     Containers & Packaging          3,082          102,695  
              

 

 

 
                 1,852,084  
              

 

 

 
    Isle Of Man 0.1%                         
 

Entain PLC

     Hotels, Restaurants & Leisure          7,475          85,105  
              

 

 

 
    Italy 3.7%                         
 

A2A SpA

     Multi-Utilities          17,963          32,065  
 

Amplifon SpA

     Health Care Providers & Services          1,541          45,879  

 

           
188             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

           Industry            Shares            Value  
 

Common Stocks (continued)

            
    Italy (continued)                       
 

Assicurazioni Generali SpA

     Insurance          15,939        $ 326,792  
 

Banca Mediolanum SpA

     Financial Services          2,921          25,056  
 

Banco BPM SpA

     Banks          16,123          77,414  
 

Buzzi SpA

     Construction Materials          989          27,141  
 

Davide Campari-Milano NV

     Beverages          5,957          70,417  
 

DiaSorin SpA

     Health Care Equipment & Supplies          253          23,149  
 

Enel SpA

     Electric Utilities          91,839          565,905  
 

Eni SpA

     Oil, Gas & Consumable Fuels          25,668          414,597  
 

Ferrari NV

     Automobiles          1,403          415,474  
 

FinecoBank Banca Fineco SpA

     Banks          7,222          88,047  
 

Hera SpA

     Multi-Utilities          8,924          24,471  
b  

Infrastrutture Wireless Italiane SpA

     Diversified Telecommunication Services          4,186          49,926  
 

Interpump Group SpA

     Machinery          943          43,420  
 

Intesa Sanpaolo SpA

     Banks          181,999          470,167  
 

Italgas SpA

     Gas Utilities          5,819          29,893  
 

Leonardo SpA

     Aerospace & Defense          4,807          69,521  
 

Mediobanca Banca di Credito Finanziario SpA

     Banks          7,636          101,300  
 

Moncler SpA

     Textiles, Apparel & Luxury Goods          2,415          140,833  
a,b  

Nexi SpA

     Financial Services          6,555          40,169  
b  

Pirelli & C SpA

     Automobile Components          5,865          28,322  
b  

Poste Italiane SpA

     Insurance          5,428          57,285  
 

Prysmian SpA

     Electrical Equipment          3,128          126,344  
 

Recordati Industria Chimica e Farmaceutica SpA

     Pharmaceuticals          1,127          53,348  
 

Reply SpA

     IT Services          276          26,022  
 

Snam SpA

     Gas Utilities          26,910          126,756  
a  

Telecom Italia SpA

     Diversified Telecommunication Services          127,328          39,917  
a  

Telecom Italia SpA

     Diversified Telecommunication Services          70,725          22,262  
 

Tenaris SA

     Energy Equipment & Services          5,520          87,577  
 

Terna – Rete Elettrica Nazionale

     Electric Utilities          16,675          125,842  
 

UniCredit SpA

     Banks          20,838          501,475  
 

UnipolSai Assicurazioni SpA

     Insurance          5,060          12,247  
              

 

 

 
                 4,289,033  
              

 

 

 
    Luxembourg 0.2%                         
 

ArcelorMittal SA

     Metals & Mining          5,842          147,053  
 

Eurofins Scientific SE

     Life Sciences Tools & Services          1,449          82,076  
 

RTL Group SA

     Media          437          15,037  
              

 

 

 
                 244,166  
              

 

 

 
    Mexico 0.0%                         
 

Fresnillo PLC

     Metals & Mining          2,185          14,700  
              

 

 

 
    Netherlands 8.8%                         
 

Aalberts NV

     Machinery          1,150          42,225  
b  

ABN AMRO Bank NV, GDR

     Banks          4,508          64,147  
a,b  

Adyen NV

     Financial Services          345          257,770  
 

Aegon NV

     Insurance          20,171          97,853  
 

Akzo Nobel NV

     Chemicals          2,001          145,079  
a  

Argenx SE

     Biotechnology          661          322,343  
a  

Argenx SE

     Biotechnology          29          14,142  
 

ASM International NV

     Semiconductors & Semiconductor Equipment          552          232,311  
 

ASML Holding NV

     Semiconductors & Semiconductor Equipment          4,669          2,763,801  
 

ASR Nederland NV

     Insurance          1,679          63,142  
 

BE Semiconductor Industries NV

     Semiconductors & Semiconductor Equipment          897          88,322  
b  

CTP NV

     Real Estate Management & Development          1,265          18,134  
b  

Euronext NV

     Capital Markets          966          67,502  
 

EXOR NV

     Financial Services          1,196          106,290  

 

           
franklintempleton.com  

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             189


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Netherlands (continued)                       
 

Ferrovial SE

     Construction & Engineering          6,118        $ 187,651  
 

Heineken Holding NV

     Beverages          1,541          116,492  
 

Heineken NV

     Beverages          3,312          292,659  
 

IMCD NV

     Trading Companies & Distributors          667          84,742  
 

ING Groep NV

     Banks          42,619          566,292  
 

JDE Peet’s NV

     Food Products          1,403          39,245  
 

Koninklijke Ahold Delhaize NV

     Consumer Staples Distribution & Retail          11,500          347,249  
 

Koninklijke KPN NV

     Diversified Telecommunication Services          37,743          124,637  
 

Koninklijke Philips NV

     Health Care Equipment & Supplies          10,856          217,991  
 

Koninklijke Vopak NV

     Oil, Gas & Consumable Fuels          759          26,052  
 

NN Group NV

     Insurance          3,358          108,223  
a  

OCI NV

     Chemicals          1,150          32,132  
 

Prosus NV

     Broadline Retail          18,197          537,909  
a  

QIAGEN NV

     Life Sciences Tools & Services          2,622          106,239  
 

Randstad NV

     Professional Services          1,311          72,705  
 

Shell PLC

     Oil, Gas & Consumable Fuels          79,281          2,521,732  
b  

Signify NV

     Electrical Equipment          1,495          40,378  
 

Universal Music Group NV

     Entertainment          8,855          231,850  
 

Wolters Kluwer NV

     Professional Services          2,898          351,776  
              

 

 

 
                 10,289,015  
              

 

 

 
    Nigeria 0.0%                         
b  

Airtel Africa PLC

     Wireless Telecommunication Services          13,133          20,133  
              

 

 

 
    Norway 1.2%                         
a  

Adevinta ASA, Class B

     Interactive Media & Services          3,335          33,191  
 

Aker ASA, Class A

     Industrial Conglomerates          276          17,106  
 

Aker BP ASA

     Oil, Gas & Consumable Fuels          3,634          101,088  
a,b  

AutoStore Holdings Ltd.

     Machinery          8,257          11,744  
 

DNB Bank ASA

     Banks          12,052          244,192  
 

Equinor ASA

     Oil, Gas & Consumable Fuels          11,017          363,563  
 

Gjensidige Forsikring ASA

     Insurance          2,047          30,299  
 

Kongsberg Gruppen ASA

     Aerospace & Defense          897          37,192  
 

Mowi ASA

     Food Products          5,244          93,414  
 

Norsk Hydro ASA

     Metals & Mining          15,801          99,788  
 

Orkla ASA

     Food Products          9,039          67,940  
 

Salmar ASA

     Food Products          736          37,585  
 

Schibsted ASA, Class A

     Media          897          20,307  
 

Schibsted ASA, Class B

     Media          1,150          24,122  
 

Telenor ASA

     Diversified Telecommunication Services          7,337          83,776  
 

TOMRA Systems ASA

     Machinery          2,760          31,683  
 

Var Energi ASA

     Oil, Gas & Consumable Fuels          4,669          13,699  
 

Yara International ASA

     Chemicals          1,932          73,588  
              

 

 

 
                 1,384,277  
              

 

 

 
    Poland 0.4%                         
a,b  

Allegro.eu SA

     Broadline Retail          5,359          39,575  
 

Bank Polska Kasa Opieki SA

     Banks          1,863          43,085  
a,b  

Dino Polska SA

     Consumer Staples Distribution & Retail          575          46,764  
a  

InPost SA

     Air Freight & Logistics          2,438          28,394  
 

KGHM Polska Miedz SA

     Metals & Mining          1,633          41,881  
 

LPP SA

     Textiles, Apparel & Luxury Goods          13          38,717  
 

ORLEN SA

     Oil, Gas & Consumable Fuels          6,831          91,861  
a  

Powszechna Kasa Oszczednosci Bank Polski SA

     Banks          10,074          80,130  
 

Powszechny Zaklad Ubezpieczen SA

     Insurance          6,716          63,651  
a  

Santander Bank Polska SA

     Banks          391          32,247  
              

 

 

 
                 506,305  
              

 

 

 

 

           
190             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Portugal 0.3%                       
 

EDP – Energias de Portugal SA

     Electric Utilities          35,627        $ 148,466  
 

Galp Energia SGPS SA, Class B

     Oil, Gas & Consumable Fuels          5,980          88,892  
 

Jeronimo Martins SGPS SA

     Consumer Staples Distribution & Retail          3,243          72,997  
              

 

 

 
                 310,355  
              

 

 

 
    Russia 0.0%                         
a,c  

Evraz PLC

     Metals & Mining          10,404           
              

 

 

 
    Spain 3.9%                         
 

Acciona SA

     Electric Utilities          276          35,270  
 

ACS Actividades de Construccion y Servicios SA

     Construction & Engineering          2,622          94,580  
b  

Aena SME SA

     Transportation Infrastructure          828          125,010  
 

Amadeus IT Group SA

     Hotels, Restaurants & Leisure          5,313          322,208  
 

Banco Bilbao Vizcaya Argentaria SA

     Banks          70,679          576,950  
 

Banco de Sabadell SA

     Banks          62,100          72,356  
 

Banco Santander SA

     Banks          189,359          725,451  
 

Bankinter SA

     Banks          8,165          52,248  
 

CaixaBank SA

     Banks          44,551          178,579  
a,b  

Cellnex Telecom SA

     Diversified Telecommunication Services          6,624          231,224  
 

Corp. ACCIONA Energias Renovables SA

     Independent Power Producers & Energy Traders          667          17,231  
 

EDP Renovaveis SA

     Independent Power Producers & Energy Traders          3,473          57,049  
 

Enagas SA

     Gas Utilities          2,944          48,874  
 

Endesa SA

     Electric Utilities          3,749          76,507  
a  

Grifols SA

     Biotechnology          3,841          50,000  
 

Iberdrola SA

     Electric Utilities          70,334          788,969  
 

Industria de Diseno Textil SA

     Specialty Retail          12,420          464,052  
 

Mapfre SA

     Insurance          11,707          23,922  
 

Merlin Properties Socimi SA

     Diversified REITs          3,864          32,667  
 

Naturgy Energy Group SA

     Gas Utilities          1,610          43,910  
 

Redeia Corp. SA

     Electric Utilities          5,083          80,159  
 

Repsol SA

     Oil, Gas & Consumable Fuels          15,249          251,376  
 

Telefonica SA

     Diversified Telecommunication Services          59,202          242,447  
              

 

 

 
                 4,591,039  
              

 

 

 
    Sweden 4.6%                         
 

Alfa Laval AB

     Machinery          3,657          126,498  
 

Assa Abloy AB, Class B

     Building Products          11,454          251,132  
 

Atlas Copco AB, Class A

     Machinery          29,923          405,567  
 

Atlas Copco AB, Class B

     Machinery          17,917          211,425  
 

Axfood AB

     Consumer Staples Distribution & Retail          1,242          28,626  
 

Beijer Ref AB

     Trading Companies & Distributors          4,393          46,703  
 

Boliden AB

     Metals & Mining          3,243          93,864  
 

Castellum AB

     Real Estate Management & Development          5,037          51,626  
a  

Electrolux AB, Class B

     Household Durables          2,645          27,523  
 

Epiroc AB, Class A

     Machinery          7,360          140,911  
 

Epiroc AB, Class B

     Machinery          4,485          72,327  
 

EQT AB

     Capital Markets          4,968          99,184  
 

Essity AB, Class B

     Household Products          7,199          156,316  
b  

Evolution AB

     Hotels, Restaurants & Leisure          2,162          220,176  
a  

Fastighets AB Balder, Class B

     Real Estate Management & Development          7,406          33,607  
 

Getinge AB, Class B

     Health Care Equipment & Supplies          2,599          46,099  
 

H & M Hennes & Mauritz AB, Class B

     Specialty Retail          7,820          111,899  
 

Hexagon AB, Class B

     Electronic Equipment, Instruments & Components          24,748          212,714  
 

Holmen AB, Class B

     Paper & Forest Products          966          37,860  
 

Husqvarna AB, Class B

     Machinery          4,922          37,938  
 

Industrivarden AB, Class A

     Financial Services          1,495          39,741  
 

Industrivarden AB, Class C

     Financial Services          1,771          47,045  

 

           
franklintempleton.com  

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Sweden (continued)                       
 

Indutrade AB

     Machinery          3,358        $ 62,652  
 

Investment AB Latour, Class B

     Industrial Conglomerates          1,702          30,197  
 

Investor AB, Class A

     Financial Services          5,037          96,204  
 

Investor AB, Class B

     Financial Services          19,642          379,309  
a  

Kinnevik AB, Class B

     Financial Services          2,852          28,667  
 

L E Lundbergforetagen AB, Class B

     Financial Services          874          36,765  
 

Lifco AB, Class B

     Industrial Conglomerates          2,714          47,951  
 

Nibe Industrier AB, Class B

     Building Products          17,204          113,699  
 

Saab AB, Class B

     Aerospace & Defense          1,081          55,402  
 

Sagax AB, Class B

     Real Estate Management & Development          2,070          39,726  
 

Sagax AB, Class D

     Real Estate Management & Development          1,380          3,258  
 

Sandvik AB

     Machinery          12,788          237,299  
 

Securitas AB, Class B

     Commercial Services & Supplies          5,750          45,866  
 

Skandinaviska Enskilda Banken AB, Class A

     Banks          19,205          230,954  
 

Skandinaviska Enskilda Banken AB, Class C

     Banks          253          3,027  
 

Skanska AB, Class B

     Construction & Engineering          4,255          70,498  
 

SKF AB, Class B

     Machinery          4,554          76,353  
 

SSAB AB, Class A

     Metals & Mining          2,806          15,936  
 

SSAB AB, Class B

     Metals & Mining          7,728          42,751  
 

Svenska Cellulosa AB SCA, Class B

     Paper & Forest Products          7,061          97,457  
 

Svenska Handelsbanken AB, Class A

     Banks          17,595          158,002  
 

Svenska Handelsbanken AB, Class B

     Banks          437          4,642  
 

Sweco AB, Class B

     Construction & Engineering          2,392          22,502  
 

Swedbank AB, Class A

     Banks          11,937          221,178  
a  

Swedish Orphan Biovitrum AB

     Biotechnology          2,025          41,640  
 

Tele2 AB, Class B

     Wireless Telecommunication Services          6,578          50,666  
 

Telefonaktiebolaget LM Ericsson, Class A

     Communications Equipment          437          2,204  
 

Telefonaktiebolaget LM Ericsson, Class B

     Communications Equipment          34,661          170,143  
 

Telia Co. AB

     Diversified Telecommunication Services          28,865          59,966  
 

Trelleborg AB, Class B

     Machinery          2,668          66,846  
 

Volvo AB, Class A

     Machinery          2,392          50,067  
 

Volvo AB, Class B

     Machinery          17,894          371,577  
a  

Volvo Car AB, Class B

     Automobiles          6,279          25,684  
              

 

 

 
                 5,457,869  
              

 

 

 
    Switzerland 14.9%                         
 

ABB Ltd.

     Electrical Equipment          17,687          634,164  
 

Adecco Group AG

     Professional Services          1,863          76,899  
 

Alcon, Inc.

     Health Care Equipment & Supplies          5,773          447,679  
 

Bachem Holding AG, Class B

     Life Sciences Tools & Services          368          27,355  
 

Baloise Holding AG

     Insurance          529          76,852  
 

Banque Cantonale Vaudoise

     Banks          322          33,809  
 

Barry Callebaut AG

     Food Products          42          66,939  
 

Belimo Holding AG

     Building Products          115          54,785  
 

BKW AG

     Electric Utilities          207          36,544  
 

Chocoladefabriken Lindt & Spruengli AG

     Food Products          24          267,337  
 

Cie Financiere Richemont SA, Class A

     Textiles, Apparel & Luxury Goods          6,072          743,402  
 

Clariant AG

     Chemicals          2,645          41,924  
 

Coca-Cola HBC AG

     Beverages          2,323          63,767  
 

DKSH Holding AG

     Professional Services          414          28,081  
 

DSM-Firmenich AG

     Chemicals          2,047          173,663  
a  

Dufry AG

     Specialty Retail          1,219          46,519  
 

Emmi AG

     Food Products          23          21,723  
 

EMS-Chemie Holding AG

     Chemicals          92          62,654  
 

Flughafen Zurich AG

     Transportation Infrastructure          230          43,948  
 

Geberit AG

     Building Products          391          196,184  
 

Georg Fischer AG

     Machinery          966          54,541  
 

Givaudan SA

     Chemicals          94          307,648  

 

           
192             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Switzerland (continued)                       
 

Helvetia Holding AG

     Insurance          414        $ 58,108  
 

Julius Baer Group Ltd.

     Capital Markets          2,415          155,386  
 

Kuehne & Nagel International AG

     Marine Transportation          598          170,614  
 

Logitech International SA

     Technology Hardware, Storage & Peripherals          1,863          128,870  
 

Lonza Group AG

     Life Sciences Tools & Services          874          406,618  
 

Nestle SA

     Food Products          31,579          3,581,117  
 

Novartis AG

     Pharmaceuticals          24,472          2,511,135  
 

Partners Group Holding AG

     Capital Markets          253          286,105  
 

PSP Swiss Property AG

     Real Estate Management & Development          529          62,569  
 

Roche Holding AG

     Pharmaceuticals          8,188          2,241,675  
 

Roche Holding AG

     Pharmaceuticals          345          101,599  
 

Schindler Holding AG, PC

     Machinery          483          96,621  
 

Schindler Holding AG

     Machinery          230          44,451  
 

SGS SA

     Professional Services          1,725          145,233  
 

SIG Group AG

     Containers & Packaging          3,910          96,767  
 

Sika AG

     Chemicals          1,587          404,383  
 

Sonova Holding AG

     Health Care Equipment & Supplies          598          142,309  
 

STMicroelectronics NV

     Semiconductors & Semiconductor Equipment          7,636          331,348  
 

Straumann Holding AG

     Health Care Equipment & Supplies          1,265          162,066  
 

Swatch Group AG

     Textiles, Apparel & Luxury Goods          345          88,777  
 

Swatch Group AG

     Textiles, Apparel & Luxury Goods          621          30,446  
 

Swiss Life Holding AG

     Insurance          391          244,311  
 

Swiss Prime Site AG

     Real Estate Management & Development          897          82,316  
 

Swiss Re AG

     Insurance          3,404          350,968  
 

Swisscom AG

     Diversified Telecommunication Services          299          177,870  
 

Tecan Group AG

     Life Sciences Tools & Services          161          54,418  
 

Temenos AG

     Software          713          50,209  
 

UBS Group AG

     Capital Markets          33,672          835,175  
b  

VAT Group AG

     Machinery          299          107,533  
 

Zurich Insurance Group AG

     Insurance          1,748          802,727  
              

 

 

 
                 17,458,141  
              

 

 

 
    United Kingdom 19.5%                         
 

3i Group PLC

     Capital Markets          11,270          285,153  
 

abrdn PLC

     Capital Markets          22,103          42,018  
 

Admiral Group PLC

     Insurance          3,588          104,097  
 

Allfunds Group PLC

     Capital Markets          3,979          22,075  
 

Anglo American PLC

     Metals & Mining          14,260          394,311  
 

Ashtead Group PLC

     Trading Companies & Distributors          5,175          315,944  
 

Associated British Foods PLC

     Food Products          4,048          102,175  
 

AstraZeneca PLC

     Pharmaceuticals          17,480          2,368,635  
b  

Auto Trader Group PLC

     Interactive Media & Services          10,465          78,886  
 

Aviva PLC

     Insurance          32,453          154,402  
 

B&M European Value Retail SA

     Broadline Retail          11,063          79,181  
 

BAE Systems PLC

     Aerospace & Defense          35,926          437,530  
 

Barclays PLC

     Banks          183,011          355,031  
 

Barratt Developments PLC

     Household Durables          11,546          62,162  
 

Beazley PLC

     Insurance          7,751          52,364  
 

Berkeley Group Holdings PLC

     Household Durables          1,219          61,106  
 

BP PLC

     Oil, Gas & Consumable Fuels          200,261          1,298,893  
 

British American Tobacco PLC

     Tobacco          26,312          827,606  
 

British Land Co. PLC

     Diversified REITs          10,902          42,168  
 

BT Group PLC

     Diversified Telecommunication Services          74,451          106,047  
 

Bunzl PLC

     Trading Companies & Distributors          3,979          142,103  
 

Burberry Group PLC

     Textiles, Apparel & Luxury Goods          4,462          103,939  
 

Centrica PLC

     Multi-Utilities          65,757          123,961  
 

CNH Industrial NV

     Machinery          11,500          140,507  
 

Compass Group PLC

     Hotels, Restaurants & Leisure          20,608          503,062  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    United Kingdom (continued)                       
b  

ConvaTec Group PLC

     Health Care Equipment & Supplies          19,481        $ 51,787  
 

Croda International PLC

     Chemicals          1,656          99,343  
 

Dechra Pharmaceuticals PLC

     Pharmaceuticals          1,288          59,550  
 

Diageo PLC

     Beverages          26,128          967,558  
 

Dowlais Group PLC

     Automobile Components          15,916          20,864  
 

DS Smith PLC

     Containers & Packaging          15,134          53,033  
 

Endeavour Mining PLC

     Metals & Mining          2,162          41,852  
 

Ferguson PLC

     Trading Companies & Distributors          2,415          399,846  
 

GSK PLC

     Pharmaceuticals          47,564          866,169  
 

Haleon PLC

     Personal Care Products          61,663          256,533  
 

Halma PLC

     Electronic Equipment, Instruments & Components          4,485          106,117  
 

Hargreaves Lansdown PLC

     Capital Markets          4,508          42,543  
 

Hikma Pharmaceuticals PLC

     Pharmaceuticals          1,863          47,479  
 

Howden Joinery Group PLC

     Trading Companies & Distributors          6,118          54,989  
 

HSBC Holdings PLC

     Banks          233,427          1,837,380  
 

IMI PLC

     Machinery          3,036          58,104  
 

Imperial Brands PLC

     Tobacco          10,695          217,607  
 

Informa PLC

     Media          16,353          149,777  
 

InterContinental Hotels Group PLC

     Hotels, Restaurants & Leisure          1,978          146,641  
 

Intermediate Capital Group PLC

     Capital Markets          3,289          55,519  
a  

International Consolidated Airlines Group SA

     Passenger Airlines          13,156          23,765  
 

Intertek Group PLC

     Professional Services          1,909          95,811  
 

ITV PLC

     Media          43,631          37,608  
 

J Sainsbury PLC

     Consumer Staples Distribution & Retail          20,286          62,593  
 

JD Sports Fashion PLC

     Specialty Retail          29,233          53,413  
 

Johnson Matthey PLC

     Chemicals          2,162          42,960  
 

Kingfisher PLC

     Specialty Retail          22,218          60,555  
 

Land Securities Group PLC

     Diversified REITs          8,648          62,255  
 

Legal & General Group PLC

     Insurance          70,012          190,133  
 

Lloyds Banking Group PLC

     Banks          760,932          412,089  
 

London Stock Exchange Group PLC

     Capital Markets          5,359          538,580  
 

M&G PLC

     Financial Services          25,898          62,366  
 

Melrose Industries PLC

     Aerospace & Defense          15,916          91,148  
 

Mondi PLC

     Paper & Forest Products          5,750          96,324  
 

National Grid PLC

     Multi-Utilities          43,447          519,686  
 

NatWest Group PLC

     Banks          64,952          186,856  
 

Next PLC

     Broadline Retail          1,426          126,987  
a,c  

NMC Health PLC

     Health Care Providers & Services          1,159           
a  

Ocado Group PLC

     Consumer Staples Distribution & Retail          7,199          52,756  
 

Pearson PLC

     Diversified Consumer Services          8,418          89,225  
a  

Pepco Group NV

     Broadline Retail          1,702          7,892  
 

Persimmon PLC

     Household Durables          3,772          49,607  
 

Phoenix Group Holdings PLC

     Insurance          8,694          51,168  
 

Prudential PLC

     Insurance          32,614          353,805  
 

Reckitt Benckiser Group PLC

     Household Products          8,487          600,189  
 

RELX PLC

     Professional Services          22,425          759,540  
 

Renishaw PLC

     Electronic Equipment, Instruments & Components          391          16,808  
 

Rentokil Initial PLC

     Commercial Services & Supplies          29,969          223,203  
 

Rightmove PLC

     Interactive Media & Services          9,683          66,444  
a  

Rolls-Royce Holdings PLC

     Aerospace & Defense          99,337          267,832  
 

RS Group PLC

     Trading Companies & Distributors          5,635          50,579  
 

Sage Group PLC

     Software          12,121          146,315  
 

Schroders PLC

     Capital Markets          9,959          49,497  
 

Segro PLC

     Industrial REITs          14,490          127,231  
 

Severn Trent PLC

     Water Utilities          2,967          85,645  
 

Smith & Nephew PLC

     Health Care Equipment & Supplies          10,373          129,520  
 

Smiths Group PLC

     Industrial Conglomerates          4,163          82,289  

 

           
194             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    United Kingdom (continued)                       
 

Spirax-Sarco Engineering PLC

     Machinery          874        $ 101,620  
 

SSE PLC

     Electric Utilities          12,857          252,651  
 

St. James’s Place PLC

     Capital Markets          6,302          64,012  
 

Standard Chartered PLC

     Banks          26,910          248,965  
 

Tate & Lyle PLC

     Food Products          4,692          39,257  
 

Taylor Wimpey PLC

     Household Durables          42,067          60,228  
 

Tesco PLC

     Consumer Staples Distribution & Retail          83,720          269,971  
 

Unilever PLC

     Personal Care Products          29,647          1,469,861  
 

UNITE Group PLC

     Residential REITs          4,071          44,596  
 

United Utilities Group PLC

     Water Utilities          8,119          93,963  
 

Vodafone Group PLC

     Wireless Telecommunication Services          258,221          242,115  
 

Weir Group PLC

     Machinery          3,105          72,063  
 

Whitbread PLC

     Hotels, Restaurants & Leisure          2,323          98,216  
a  

Wise PLC, Class A

     Financial Services          8,372          70,058  
 

WPP PLC

     Media          12,328          110,294  
              

 

 

 
                 22,846,591  
              

 

 

 
    United States 0.7%                         
 

Holcim AG, Class B

     Construction Materials          5,865          376,852  
 

Stellantis NV

     Automobiles          25,714          495,762  
              

 

 

 
                 872,614  
              

 

 

 
 

Total Common Stocks
(Cost $123,067,912)

               115,433,196  
              

 

 

 
 

Preferred Stocks 0.6%

            
    Germany 0.6%                         
d  

Bayerische Motoren Werke AG, 9.649%, pfd.

     Automobiles          667          62,356  
d  

FUCHS SE, 2.906%, pfd.

     Chemicals          805          31,382  
d  

Henkel AG & Co. KGaA, 2.742%, pfd.

     Household Products          1,932          137,990  
d  

Sartorius AG, 0.447%, pfd.

     Life Sciences Tools & Services          299          101,871  
d  

Sixt SE, 10.515%, pfd.

     Ground Transportation          184          11,357  
d  

Volkswagen AG, 25.537%, pfd.

     Automobiles          2,369          273,241  
              

 

 

 
                 618,197  
              

 

 

 
    Spain 0.0%                         
d  

Grifols SA, Class B, pfd., B

     Biotechnology          2,990          27,399  
              

 

 

 
 

Total Preferred Stocks
(Cost $805,645)

               645,596  
              

 

 

 
 

Total Investments
(Cost $123,873,557) 98.9%

               116,078,792  
 

Other Assets, less Liabilities 1.1%

               1,327,873  
              

 

 

 
 

Net Assets 100.0%

             $ 117,406,665  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $2,362,658, representing 2.0% of net assets.

cFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

dVariable rate security. The rate shown represents the yield at period end.

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Europe ETF (continued)

 

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

 

Description      Type       
Number of
Contracts
 
 
    
Notional
Amount
 
   
Expiration
Date
 
 
    

Value/Unrealized
Appreciation
(Depreciation)
 
 
 
Index Contracts              

EURO STOXX 50 Index

     Long        18      $ 801,177       12/15/23      $ (14,410

FTSE 100 IDX FUT DEC23

     Long        3        280,885       12/15/23        2,486  
             

 

 

 

Total Futures Contracts

              $ (11,924
             

 

 

 

*As of period end.

 

 

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
196             

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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Eurozone ETFa

 

   

Six Months Ended
September 30, 2023

(unaudited)

    Year Ended March 31,  
     2023     2022     2021     2020     2019  

Per share operating performance

(for a share outstanding throughout the period)

           

Net asset value, beginning of period

  $ 23.60     $ 27.12     $ 25.72     $ 19.15     $ 22.81     $ 23.88  
       
Income from investment operationsb:            

Net investment incomec

    0.41       0.86       0.76       0.59       0.73       0.79  

Net realized and unrealized gains (losses)

    (1.75     0.65       1.51       6.45       (2.92     0.62  
       

Total from investment operations

    (1.34     1.51       2.27       7.04       (2.19     1.41  
       
Less distributions from:            

Net investment income

    (0.35     (0.64     (0.87     (0.47     (1.47     (0.38

Net realized gains

          (4.39                       (2.10
       

Total distributions

    (0.35     (5.03     (0.87     (0.47     (1.47     (2.48
       

Net asset value, end of period

  $ 21.91     $ 23.60     $ 27.12     $ 25.72     $ 19.15     $ 22.81  
       

Total returnd

    (5.85)%       7.53%       8.75%       36.92%       (10.67)%       6.98%  
Ratios to average net assetse            

Expenses before waiver and payments by affiliates

    0.09%       0.15%f       0.09%       0.09%       0.09%       0.09%  

Expenses net of waiver and payments by affiliates

    0.09%       0.15%f       0.09%       0.09%       0.09%       0.09%  

Net investment income

    3.49%       3.44%       2.77%       2.58%       3.10%       3.28%  
Supplemental data            

Net assets, end of period (000’s)

    $17,526       $14,163       $21,695       $15,429       $3,831       $4,563  

Portfolio turnover rateg

   
72.75%h
 
 
   
22.30%h
 
 
   
11.67%h
 
 
   
12.87%h
 
 
    14.81%h       26.81%  

 

aEffective August 1, 2023,Formerly, Franklin FTSE Europe Hedged ETF was renamed Franklin FTSE Eurozone ETF.

 

bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

 

cBased on average daily shares outstanding.

 

dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

 

eRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

 

fExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the year ended March 31, 2023.

 

gPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

 

 

 

 

 

 

hPortfolio turnover rate excluding cash creations was as follows:     73.43%       22.37%       11.67%       12.87%       14.81%        

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Eurozone ETF

 

           Industry            Shares                Value  
 

Common Stocks 98.4%

 

    Austria 0.7%           
 

ANDRITZ AG

     Machinery          248        $ 12,556  
 

Erste Group Bank AG

     Banks          1,104          38,362  
a  

Eurotelesites AG

     Diversified Telecommunication Services          123          539  
 

OMV AG

     Oil, Gas & Consumable Fuels          508          24,375  
a  

Raiffeisen Bank International AG

     Banks          464          6,785  
 

Telekom Austria AG

     Diversified Telecommunication Services          492          3,438  
 

Verbund AG

     Electric Utilities          236          19,252  
 

voestalpine AG

     Metals & Mining          388          10,615  
              

 

 

 
                 115,922  
              

 

 

 
    Belgium 2.5%                         
 

Ackermans & van Haaren NV

     Construction & Engineering          80          12,121  
 

Ageas SA

     Insurance          592          24,463  
 

Anheuser-Busch InBev SA

     Beverages          3,120          173,456  
 

D’ieteren Group

     Distributors          80          13,543  
 

Elia Group SA

     Electric Utilities          136          13,341  
 

Groupe Bruxelles Lambert NV

     Financial Services          360          26,894  
 

KBC Group NV

     Banks          884          55,351  
 

Lotus Bakeries NV

     Food Products          1          8,142  
 

Sofina SA

     Financial Services          60          12,184  
 

Solvay SA

     Chemicals          252          27,974  
 

UCB SA

     Pharmaceuticals          436          35,794  
 

Umicore SA

     Chemicals          732          17,399  
 

Warehouses De Pauw CVA

     Industrial REITs          560          13,898  
              

 

 

 
                 434,560  
              

 

 

 
    Finland 3.4%                         
 

Elisa Oyj

     Diversified Telecommunication Services          512          23,792  
 

Fortum Oyj

     Electric Utilities          1,564          18,207  
 

Kesko Oyj, Class B

     Consumer Staples Distribution & Retail          972          17,464  
 

Kone Oyj, Class B

     Machinery          1,172          49,535  
 

Metso Oyj

     Machinery          2,296          24,197  
 

Neste Oyj

     Oil, Gas & Consumable Fuels          1,492          50,754  
 

Nokia Oyj

     Communications Equipment          18,872          71,291  
 

Nordea Bank Abp

     Banks          12,264          135,195  
 

Orion Oyj, Class B

     Pharmaceuticals          376          14,817  
 

Sampo Oyj, Class A

     Insurance          1,708          74,106  
 

Stora Enso Oyj, Class R

     Paper & Forest Products          2,060          25,932  
 

UPM-Kymmene Oyj

     Paper & Forest Products          1,912          65,730  
 

Valmet Oyj

     Machinery          592          13,576  
 

Wartsila Oyj Abp

     Machinery          1,740          19,813  
              

 

 

 
                 604,409  
              

 

 

 
    France 34.8%                         
 

Accor SA

     Hotels, Restaurants & Leisure          660          22,319  
 

Aeroports de Paris SA

     Transportation Infrastructure          116          13,743  
 

Air Liquide SA

     Chemicals          1,844          312,061  
 

Airbus SE

     Aerospace & Defense          2,100          282,324  
b  

ALD SA

     Ground Transportation          704          5,467  
 

Alstom SA

     Machinery          1,024          24,502  
b  

Amundi SA

     Capital Markets          204          11,523  
 

Arkema SA

     Chemicals          204          20,208  
 

AXA SA

     Insurance          6,380          190,351  
 

BioMerieux

     Health Care Equipment & Supplies          152          14,777  
 

BNP Paribas SA

     Banks          3,840          245,684  
 

Bollore SE

     Entertainment          3,128          16,857  
 

Bouygues SA

     Construction & Engineering          748          26,245  
 

Bureau Veritas SA

     Professional Services          1,024          25,489  

 

           
198             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Eurozone ETF (continued)

 

           Industry            Shares                Value  
    Common Stocks (continued)  
    France (continued)                         
 

Capgemini SE

     IT Services          576        $ 101,111  
 

Carrefour SA

     Consumer Staples Distribution & Retail          2,120          36,553  
 

Cie de L’Odet SE

     Air Freight & Logistics          2          2,909  
 

Cie de Saint-Gobain SA

     Building Products          1,676          100,932  
 

Cie Generale des Etablissements Michelin SCA

     Automobile Components          2,516          77,437  
 

Covivio SA

     Office REITs          196          8,736  
 

Credit Agricole SA

     Banks          3,944          48,822  
 

Danone SA

     Food Products          2,240          123,940  
 

Dassault Aviation SA

     Aerospace & Defense          81          15,299  
 

Dassault Systemes SE

     Software          2,400          89,685  
 

Edenred SE

     Financial Services          896          56,235  
 

Eiffage SA

     Construction & Engineering          260          24,786  
 

Engie SA

     Multi-Utilities          5,956          91,625  
 

EssilorLuxottica SA

     Health Care Equipment & Supplies          1,092          190,951  
 

Eurazeo SE

     Financial Services          172          10,280  
 

Gecina SA

     Office REITs          184          18,848  
 

Getlink SE

     Transportation Infrastructure          1,264          20,221  
 

Hermes International SCA

     Textiles, Apparel & Luxury Goods          123          225,265  
 

Ipsen SA

     Pharmaceuticals          124          16,306  
a  

JCDecaux SE

     Media          264          4,478  
 

Kering SA

     Textiles, Apparel & Luxury Goods          258          117,977  
 

Klepierre SA

     Retail REITs          740          18,200  
b  

La Francaise des Jeux SAEM

     Hotels, Restaurants & Leisure          360          11,739  
 

Legrand SA

     Electrical Equipment          924          85,404  
 

L’Oreal SA

     Personal Care Products          828          344,697  
 

LVMH Moet Hennessy Louis Vuitton SE

     Textiles, Apparel & Luxury Goods          888          673,538  
b  

Neoen SA

     Independent Power Producers & Energy Traders          244          7,135  
 

Orange SA

     Diversified Telecommunication Services          6,876          79,060  
 

Pernod Ricard SA

     Beverages          736          123,003  
 

Publicis Groupe SA

     Media          820          62,300  
 

Remy Cointreau SA

     Beverages          80          9,796  
 

Renault SA

     Automobiles          688          28,317  
 

Rexel SA

     Trading Companies & Distributors          856          19,304  
 

Safran SA

     Aerospace & Defense          1,224          192,624  
 

Sanofi

     Pharmaceuticals          3,904          419,453  
 

Sartorius Stedim Biotech

     Life Sciences Tools & Services          88          21,056  
 

Schneider Electric SE

     Electrical Equipment          1,916          318,444  
 

SCOR SE

     Insurance          540          16,849  
 

SEB SA

     Household Durables          80          7,509  
 

Societe Generale SA

     Banks          2,528          61,680  
 

Sodexo SA

     Hotels, Restaurants & Leisure          312          32,214  
a  

SOITEC

     Semiconductors & Semiconductor Equipment          88          14,698  
 

Teleperformance SE

     Professional Services          208          26,294  
 

Thales SA

     Aerospace & Defense          356          50,167  
 

TotalEnergies SE

     Oil, Gas & Consumable Fuels          8,040          530,405  
a  

Ubisoft Entertainment SA

     Entertainment          368          11,985  
a  

Unibail-Rodamco-Westfield

     Retail REITs          368          18,215  
 

Valeo SE

     Automobile Components          748          12,932  
 

Veolia Environnement SA

     Multi-Utilities          2,280          66,215  
 

Vinci SA

     Construction & Engineering          1,756          195,250  
 

Vivendi SE

     Media          2,392          21,010  
 

Wendel SE

     Financial Services          96          7,628  
a,b  

Worldline SA

     Financial Services          876          24,717  
              

 

 

 
                 6,105,784  
              

 

 

 
    Germany 24.2%                         
 

adidas AG

     Textiles, Apparel & Luxury Goods          592          104,434  
 

Allianz SE

     Insurance          1,424          340,279  

 

           
franklintempleton.com  

Semiannual Report

             199


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Eurozone ETF (continued)

 

           Industry            Shares                Value  
    Common Stocks (continued)  
    Germany (continued)                         
 

BASF SE

     Chemicals          3,192        $ 145,151  
 

Bayer AG

     Pharmaceuticals          3,528          169,768  
 

Bayerische Motoren Werke AG

     Automobiles          1,120          114,287  
 

Bechtle AG

     IT Services          296          13,864  
 

Beiersdorf AG

     Personal Care Products          356          46,040  
 

Brenntag SE

     Trading Companies & Distributors          556          43,255  
 

Carl Zeiss Meditec AG

     Health Care Equipment & Supplies          132          11,575  
 

Commerzbank AG

     Banks          3,736          42,680  
 

Continental AG

     Automobile Components          388          27,425  
a,b  

Covestro AG

     Chemicals          684          36,977  
 

CTS Eventim AG & Co. KGaA

     Entertainment          212          12,087  
 

Daimler Truck Holding AG

     Machinery          1,924          66,855  
a,b  

Delivery Hero SE

     Hotels, Restaurants & Leisure          676          19,446  
 

Deutsche Bank AG

     Capital Markets          7,236          80,059  
 

Deutsche Boerse AG

     Capital Markets          660          114,389  
a  

Deutsche Lufthansa AG

     Passenger Airlines          2,148          17,070  
 

Deutsche Post AG

     Air Freight & Logistics          3,384          138,064  
 

Deutsche Telekom AG

     Diversified Telecommunication Services          12,152          255,620  
 

Deutsche Wohnen SE

     Real Estate Management & Development          176          4,006  
b  

DWS Group GmbH & Co. KGaA

     Capital Markets          124          4,227  
 

E.ON SE

     Multi-Utilities          7,952          94,295  
 

Evonik Industries AG

     Chemicals          736          13,500  
 

Fielmann Group AG

     Specialty Retail          88          3,809  
a  

Fraport AG Frankfurt Airport Services Worldwide

     Transportation Infrastructure          124          6,596  
 

Fresenius Medical Care AG & Co. KGaA

     Health Care Providers & Services          732          31,651  
 

Fresenius SE & Co. KGaA

     Health Care Providers & Services          1,476          46,038  
 

FUCHS SE

     Chemicals          116          3,727  
 

GEA Group AG

     Machinery          580          21,468  
 

Hannover Rueck SE

     Insurance          216          47,545  
 

Heidelberg Materials AG

     Construction Materials          500          38,920  
 

Hella GmbH & Co. KGaA

     Automobile Components          80          5,675  
a  

HelloFresh SE

     Consumer Staples Distribution & Retail          580          17,366  
 

Henkel AG & Co. KGaA

     Household Products          360          22,762  
 

HOCHTIEF AG

     Construction & Engineering          76          7,705  
 

Infineon Technologies AG

     Semiconductors & Semiconductor Equipment          4,676          155,230  
 

KION Group AG

     Machinery          256          9,863  
 

Knorr-Bremse AG

     Machinery          236          15,037  
a  

LEG Immobilien SE

     Real Estate Management & Development          268          18,540  
 

Mercedes-Benz Group AG

     Automobiles          3,084          215,143  
 

Merck KGaA

     Pharmaceuticals          464          77,693  
 

MTU Aero Engines AG

     Aerospace & Defense          192          34,913  
 

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen

     Insurance          496          193,829  
 

Nemetschek SE

     Software          196          12,011  
 

Puma SE

     Textiles, Apparel & Luxury Goods          356          22,163  
 

Rational AG

     Machinery          17          10,799  
 

Rheinmetall AG

     Aerospace & Defense          156          40,284  
 

RWE AG

     Independent Power Producers & Energy Traders          2,556          95,122  
 

SAP SE

     Software          3,936          511,820  
 

Sartorius AG

     Life Sciences Tools & Services          8          2,236  
b  

Scout24 SE

     Interactive Media & Services          264          18,353  
 

Siemens AG

     Industrial Conglomerates          2,672          383,779  
a  

Siemens Energy AG

     Electrical Equipment          1,552          20,343  
b  

Siemens Healthineers AG

     Health Care Equipment & Supplies          992          50,413  
 

Sixt SE

     Ground Transportation          48          4,462  
 

Symrise AG

     Chemicals          468          44,753  
 

Talanx AG

     Insurance          192          12,197  

 

           
200             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Eurozone ETF (continued)

 

           Industry            Shares                Value  
    Common Stocks (continued)  
    Germany (continued)                         
 

Telefonica Deutschland Holding AG

     Diversified Telecommunication Services          3,216        $ 5,771  
 

thyssenkrupp AG

     Metals & Mining          1,768          13,526  
 

Traton SE

     Machinery          168          3,545  
 

Volkswagen AG

     Automobiles          104          13,731  
 

Vonovia SE

     Real Estate Management & Development          2,504          60,472  
 

Wacker Chemie AG

     Chemicals          52          7,468  
a,b  

Zalando SE

     Specialty Retail          792          17,718  
              

 

 

 
                 4,239,829  
              

 

 

 
    Ireland 0.9%                         
 

AIB Group PLC

     Banks          4,532          20,441  
 

Bank of Ireland Group PLC

     Banks          3,768          37,061  
 

Glanbia PLC

     Food Products          644          10,644  
 

Kerry Group PLC, Class A

     Food Products          552          46,275  
 

Kingspan Group PLC

     Building Products          544          40,870  
              

 

 

 
                 155,291  
              

 

 

 
    Italy 7.4%                         
 

A2A SpA

     Multi-Utilities          5,404          9,646  
 

Amplifon SpA

     Health Care Providers & Services          464          13,814  
 

Assicurazioni Generali SpA

     Insurance          4,828          98,987  
 

Banca Mediolanum SpA

     Financial Services          868          7,446  
 

Banco BPM SpA

     Banks          4,916          23,604  
 

Buzzi SpA

     Construction Materials          308          8,452  
 

Davide Campari-Milano NV

     Beverages          1,784          21,089  
 

DiaSorin SpA

     Health Care Equipment & Supplies          76          6,954  
 

Enel SpA

     Electric Utilities          27,864          171,696  
 

Eni SpA

     Oil, Gas & Consumable Fuels          7,792          125,859  
 

Ferrari NV

     Automobiles          424          125,560  
 

FinecoBank Banca Fineco SpA

     Banks          2,192          26,724  
 

Hera SpA

     Multi-Utilities          2,820          7,733  
b  

Infrastrutture Wireless Italiane SpA

     Diversified Telecommunication Services          1,272          15,171  
 

Interpump Group SpA

     Machinery          284          13,077  
 

Intesa Sanpaolo SpA

     Banks          55,460          143,273  
 

Italgas SpA

     Gas Utilities          1,760          9,041  
 

Leonardo SpA

     Aerospace & Defense          1,436          20,768  
 

Mediobanca Banca di Credito Finanziario SpA

     Banks          2,320          30,777  
 

Moncler SpA

     Textiles, Apparel & Luxury Goods          732          42,687  
a,b  

Nexi SpA

     Financial Services          1,996          12,232  
b  

Pirelli & C SpA

     Automobile Components          1,756          8,480  
b  

Poste Italiane SpA

     Insurance          1,628          17,181  
 

Prysmian SpA

     Electrical Equipment          944          38,129  
 

Recordati Industria Chimica e Farmaceutica SpA

     Pharmaceuticals          348          16,473  
 

Reply SpA

     IT Services          80          7,543  
 

Snam SpA

     Gas Utilities          8,184          38,550  
a  

Telecom Italia SpA

     Diversified Telecommunication Services          38,520          12,076  
a  

Telecom Italia SpA

     Diversified Telecommunication Services          21,652          6,815  
 

Tenaris SA

     Energy Equipment & Services          1,676          26,590  
 

Terna - Rete Elettrica Nazionale

     Electric Utilities          5,048          38,096  
 

UniCredit SpA

     Banks          6,332          152,382  
 

UnipolSai Assicurazioni SpA

     Insurance          1,504          3,640  
              

 

 

 
                 1,300,545  
              

 

 

 
    Luxembourg 0.4%                         
 

ArcelorMittal SA

     Metals & Mining          1,784          44,907  
 

Eurofins Scientific SE

     Life Sciences Tools & Services          440          24,923  
 

RTL Group SA

     Media          140          4,817  
              

 

 

 
                 74,647  
              

 

 

 

 

           
franklintempleton.com  

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Eurozone ETF (continued)

 

           Industry            Shares                Value  
    Common Stocks (continued)  
    Netherlands 13.5%                         
 

Aalberts NV

     Machinery          344        $ 12,631  
b  

ABN AMRO Bank NV, GDR

     Banks          1,372          19,523  
a,b  

Adyen NV

     Financial Services          106          79,199  
 

Aegon NV

     Insurance          6,084          29,515  
 

Akzo Nobel NV

     Chemicals          612          44,372  
a  

Argenx SE

     Biotechnology          208          101,433  
 

ASM International NV

     Semiconductors & Semiconductor Equipment          168          70,703  
 

ASML Holding NV

     Semiconductors & Semiconductor Equipment          1,416          838,197  
 

ASR Nederland NV

     Insurance          524          19,706  
 

BE Semiconductor Industries NV

     Semiconductors & Semiconductor Equipment          268          26,388  
b  

CTP NV

     Real Estate Management & Development          368          5,276  
b  

Euronext NV

     Capital Markets          292          20,404  
 

EXOR NV

     Financial Services          364          32,349  
 

Ferrovial SE

     Construction & Engineering          1,860          57,050  
 

Heineken Holding NV

     Beverages          476          35,983  
 

Heineken NV

     Beverages          1,004          88,717  
 

IMCD NV

     Trading Companies & Distributors          204          25,918  
 

ING Groep NV

     Banks          12,944          171,991  
 

JDE Peet’s NV

     Food Products          432          12,084  
 

Koninklijke Ahold Delhaize NV

     Consumer Staples Distribution & Retail          3,492          105,443  
 

Koninklijke KPN NV

     Diversified Telecommunication Services          11,408          37,672  
 

Koninklijke Philips NV

     Health Care Equipment & Supplies          3,304          66,345  
 

Koninklijke Vopak NV

     Oil, Gas & Consumable Fuels          232          7,963  
 

NN Group NV

     Insurance          1,012          32,615  
a  

OCI NV

     Chemicals          348          9,723  
 

Prosus NV

     Broadline Retail          5,536          163,646  
a  

QIAGEN NV

     Life Sciences Tools & Services          792          32,091  
 

Randstad NV

     Professional Services          396          21,961  
b  

Signify NV

     Electrical Equipment          448          12,100  
 

Universal Music Group NV

     Entertainment          2,692          70,484  
 

Wolters Kluwer NV

     Professional Services          880          106,820  
              

 

 

 
                 2,358,302  
              

 

 

 
    Poland 0.0%                         
a  

InPost SA

     Air Freight & Logistics          732          8,525  
              

 

 

 
    Portugal 0.5%                         
 

EDP - Energias de Portugal SA

     Electric Utilities          10,776          44,906  
 

Galp Energia SGPS SA, Class B

     Oil, Gas & Consumable Fuels          1,796          26,697  
 

Jeronimo Martins SGPS SA

     Consumer Staples Distribution & Retail          988          22,239  
              

 

 

 
                 93,842  
              

 

 

 
    Russia 0.0%                         
a,c  

Evraz PLC

     Metals & Mining          1,168           
              

 

 

 
    Spain 8.0%                         
 

Acciona SA

     Electric Utilities          80          10,223  
 

ACS Actividades de Construccion y Servicios SA

     Construction & Engineering          792          28,569  
b  

Aena SME SA

     Transportation Infrastructure          252          38,046  
 

Amadeus IT Group SA

     Hotels, Restaurants & Leisure          1,616          98,003  
 

Banco Bilbao Vizcaya Argentaria SA

     Banks          21,508          175,569  
 

Banco de Sabadell SA

     Banks          18,888          22,008  
 

Banco Santander SA

     Banks          57,448          220,088  
 

Bankinter SA

     Banks          2,456          15,716  
 

CaixaBank SA

     Banks          13,576          54,419  
a,b  

Cellnex Telecom SA

     Diversified Telecommunication Services          2,008          70,093  
 

Corp. ACCIONA Energias Renovables SA

     Independent Power Producers & Energy Traders          204          5,270  
 

EDP Renovaveis SA

     Independent Power Producers & Energy Traders          1,060          17,412  
 

Enagas SA

     Gas Utilities          892          14,808  

 

           
202             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Eurozone ETF (continued)

 

           Industry            Shares                Value  
    Common Stocks (continued)  
    Spain (continued)                         
 

Endesa SA

     Electric Utilities          1,136        $ 23,183  
a  

Grifols SA

     Biotechnology          1,176          15,308  
 

Iberdrola SA

     Electric Utilities          21,320          239,156  
 

Industria de Diseno Textil SA

     Specialty Retail          3,768          140,785  
 

Mapfre SA

     Insurance          3,556          7,266  
 

Merlin Properties Socimi SA

     Diversified REITs          1,200          10,145  
 

Naturgy Energy Group SA

     Gas Utilities          492          13,419  
 

Redeia Corp. SA

     Electric Utilities          1,548          24,412  
 

Repsol SA

     Oil, Gas & Consumable Fuels          4,604          75,896  
 

Telefonica SA

     Diversified Telecommunication Services          17,988          73,665  
              

 

 

 
                 1,393,459  
              

 

 

 
    Switzerland 0.9%                         
 

DSM-Firmenich AG

     Chemicals          624          52,938  
 

STMicroelectronics NV

     Semiconductors & Semiconductor Equipment        2,336          101,366  
              

 

 

 
                 154,304  
              

 

 

 
    United Kingdom 0.3%                         
 

Allfunds Group PLC

     Capital Markets          1,172          6,502  
 

CNH Industrial NV

     Machinery          3,488          42,616  
a,c  

NMC Health PLC

     Health Care Providers & Services          60           
              

 

 

 
                 49,118  
              

 

 

 
    United States 0.9%                         
 

Stellantis NV

     Automobiles          7,816          150,691  
              

 

 

 
 

Total Common Stocks
(Cost $19,595,500)

               17,239,228  
              

 

 

 
    Preferred Stocks 1.1%                         
    Germany 1.1%                         
d  

Bayerische Motoren Werke AG, 9.649%, pfd.

     Automobiles          204          19,071  
d  

FUCHS SE, 2.906%, pfd.

     Chemicals          244          9,512  
d  

Henkel AG & Co. KGaA, 2.742%, pfd.

     Household Products          592          42,283  
d  

Sartorius AG, 0.447%, pfd.

     Life Sciences Tools & Services          88          29,982  
d  

Sixt SE, 10.515%, pfd.

     Ground Transportation          60          3,704  
d  

Volkswagen AG, 25.537%, pfd.

     Automobiles          724          83,506  
              

 

 

 
                 188,058  
              

 

 

 
    Spain 0.0%                         
a  

Grifols SA, Class B, pfd., B

     Biotechnology          908          8,320  
              

 

 

 
 

Total Preferred Stocks
(Cost $248,254)

               196,378  
              

 

 

 
 

Total Investments before Short-Term Investments (Cost $19,843,754)

               17,435,606  
              

 

 

 

 

           
franklintempleton.com  

Semiannual Report

             203


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Eurozone ETF (continued)

 

           Industry            Shares                Value  
 

Short-Term Investments 0.0%

            
 

Money Market Funds 0.0%

            
 

United States 0.0%

            
d,e  

Institutional Fiduciary Trust - Money Market Portfolio, 5.15%

     Money Market Funds          996        $ 996  
              

 

 

 
 

Total Short-Term Investments (Cost $996)

               996  
              

 

 

 
 

Total Investments (Cost $19,844,750) 99.5%

               17,436,602  
 

Other Assets, less Liabilities 0.5%

               89,166  
              

 

 

 
 

Net Assets 100.0%

             $ 17,525,768  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $505,420, representing 2.9% of net assets.

cFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

dVariable rate security. The rate shown represents the yield at period end.

eSee Note 3(c) regarding investments in affiliated management investment companies.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts               
Description      Type       
Number of
Contracts
 
 
    
Notional
Amount
 
   
Expiration
Date
 
 
    

Value/Unrealized
Appreciation
(Depreciation)
 
 
 
Index Contracts              

EURO STOXX 50 Index

     Long        2      $ 89,020       12/15/23      $ (738

*As of period end.

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
204             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE France ETF

 

   

Six Months Ended
September 30, 2023

(unaudited)

     Year Ended March 31,  
      2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 30.67      $ 28.82      $ 28.44      $ 19.34      $ 23.86      $ 25.33  
Income from investment operationsa:                 

Net investment incomeb

    0.67        1.01        0.85        0.40        0.52        0.70  

Net realized and unrealized gains (losses)

    (1.69      1.63        0.41        9.10        (4.47      (1.48

Total from investment operations

    (1.02      2.64        1.26        9.50        (3.95      (0.78

Less distributions from net investment income

    (0.47      (0.79      (0.88      (0.40      (0.57      (0.69

Net asset value, end of period

  $ 29.18      $ 30.67      $ 28.82      $ 28.44      $ 19.34      $ 23.86  

Total returnc

    (3.42)%        9.84%        4.23%        49.47%        (17.08)%        (3.07)%  
Ratios to average net assetsd                 

Total expenses

    0.25%e        0.38%e        0.09%        0.09%        0.09%        0.09%  

Net investment income

    4.35%        3.87%        2.77%        1.68%        2.14%        2.90%  
Supplemental data                 

Net assets, end of period (000’s)

    $5,837        $6,134        $10,088        $7,111        $8,702        $2,386  

Portfolio turnover ratef

    2.50%g        4.87%g        5.94%g        4.56%g        2.60%g        5.80%  

 

    

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

bBased on average daily shares outstanding.

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

dRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

eExpense ratios are including non-recurring European Union tax reclaim contingent fees that were incurred by the Fund during the period. Without these fees, the gross and net expense ratios would have been 0.09% and 0.09%, respectively, for the period ended September 30, 2023 and year ended March 31, 2023.

fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

gPortfolio turnover rate excluding cash creations was as follows:     2.50%        4.87%        5.94%        4.56%        2.60%         

 

           
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             205


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE France ETF

 

           Industry            Shares                Value  
 

Common Stocks 98.7%

            
    France 96.4%                         
 

Accor SA

     Hotels, Restaurants & Leisure          604        $ 20,425  
 

Aeroports de Paris SA

     Transportation Infrastructure          108          12,795  
 

Air Liquide SA

     Chemicals          1,700          287,692  
 

Airbus SE

     Aerospace & Defense          1,936          260,276  
a  

ALD SA

     Ground Transportation          644          5,001  
 

Alstom SA

     Machinery          952          22,779  
a  

Amundi SA

     Capital Markets          192          10,845  
 

Arkema SA

     Chemicals          188          18,623  
 

AXA SA

     Insurance          5,868          175,075  
 

BioMerieux

     Health Care Equipment & Supplies          144          13,999  
 

BNP Paribas SA

     Banks          3,540          226,490  
 

Bollore SE

     Entertainment          2,876          15,499  
 

Bouygues SA

     Construction & Engineering          700          24,561  
 

Bureau Veritas SA

     Professional Services          940          23,398  
 

Capgemini SE

     IT Services          532          93,388  
 

Carrefour SA

     Consumer Staples Distribution & Retail          1,920          33,104  
 

Cie de L’Odet SE

     Air Freight & Logistics          1          1,455  
 

Cie de Saint-Gobain SA

     Building Products          1,544          92,982  
 

Cie Generale des Etablissements Michelin SCA

     Automobile Components          2,312          71,158  
 

Covivio SA

     Office REITs          172          7,667  
 

Credit Agricole SA

     Banks          3,620          44,812  
 

Danone SA

     Food Products          2,060          113,980  
 

Dassault Aviation SA

     Aerospace & Defense          74          13,977  
 

Dassault Systemes SE

     Software          2,212          82,659  
 

Edenred SE

     Financial Services          820          51,465  
 

Eiffage SA

     Construction & Engineering          240          22,879  
 

Engie SA

     Multi-Utilities          5,508          84,733  
 

EssilorLuxottica SA

     Health Care Equipment & Supplies          1,008          176,262  
 

Eurazeo SE

     Financial Services          156          9,324  
 

Gecina SA

     Office REITs          172          17,619  
 

Getlink SE

     Transportation Infrastructure          1,164          18,621  
 

Hermes International SCA

     Textiles, Apparel & Luxury Goods          113          206,951  
 

Ipsen SA

     Pharmaceuticals          112          14,728  
b  

JCDecaux SE

     Media          236          4,003  
 

Kering SA

     Textiles, Apparel & Luxury Goods          237          108,374  
 

Klepierre SA

     Retail REITs          684          16,823  
a  

La Francaise des Jeux SAEM

     Hotels, Restaurants & Leisure          332          10,826  
 

Legrand SA

     Electrical Equipment          848          78,380  
 

L’Oreal SA

     Personal Care Products          765          318,470  
 

LVMH Moet Hennessy Louis Vuitton SE

     Textiles, Apparel & Luxury Goods          818          620,444  
a  

Neoen SA

     Independent Power Producers & Energy Traders          224          6,550  
 

Orange SA

     Diversified Telecommunication Services          6,324          72,714  
 

Pernod Ricard SA

     Beverages          680          113,644  
 

Publicis Groupe SA

     Media          756          57,438  
 

Remy Cointreau SA

     Beverages          72          8,816  
 

Renault SA

     Automobiles          628          25,848  
 

Rexel SA

     Trading Companies & Distributors          792          17,861  
 

Safran SA

     Aerospace & Defense          1,128          177,516  
 

Sanofi

     Pharmaceuticals          3,596          386,361  
 

Sartorius Stedim Biotech

     Life Sciences Tools & Services          79          18,903  
 

Schneider Electric SE

     Electrical Equipment          1,764          293,181  
 

SCOR SE

     Insurance          500          15,601  
 

SEB SA

     Household Durables          76          7,133  
 

Societe Generale SA

     Banks          2,336          56,996  
 

Sodexo SA

     Hotels, Restaurants & Leisure          288          29,736  
b  

SOITEC

     Semiconductors & Semiconductor Equipment          84          14,029  
 

Teleperformance SE

     Professional Services          191          24,145  

 

           
206             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE France ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    France (continued)                         
 

Thales SA

     Aerospace & Defense          328        $ 46,222  
 

TotalEnergies SE

     Oil, Gas & Consumable Fuels          7,408          488,711  
b  

Ubisoft Entertainment SA

     Entertainment          336          10,943  
b  

Unibail-Rodamco-Westfield

     Retail REITs          340          16,829  
 

Valeo SE

     Automobile Components          688          11,895  
 

Veolia Environnement SA

     Multi-Utilities          2,100          60,987  
 

Vinci SA

     Construction & Engineering          1,620          180,128  
 

Vivendi SE

     Media          2,192          19,253  
 

Wendel SE

     Financial Services          88          6,992  
a,b  

Worldline SA

     Financial Services          808          22,798  
              

 

 

 
                 5,623,772  
              

 

 

 
    Luxembourg 0.4%                         
 

Eurofins Scientific SE

     Life Sciences Tools & Services          404          22,884  
              

 

 

 
    Netherlands 0.3%                         
a  

Euronext NV

     Capital Markets          272          19,006  
              

 

 

 
    Switzerland 1.6%                         
 

STMicroelectronics NV

     Semiconductors & Semiconductor Equipment          2,148          93,208  
              

 

 

 
 

Total Common Stocks
(Cost $5,875,495)

               5,758,870  
              

 

 

 
 

Total Investments
(Cost $5,875,495) 98.7%

               5,758,870  
 

Other Assets, less Liabilities 1.3%

               77,851  
              

 

 

 
 

Net Assets 100.0%

             $ 5,836,721  
              

 

 

 

aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $75,026, representing 1.3% of net assets.

bNon-income producing.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                  
Description      Type       
Number of
Contracts
 
 
    
Notional
Amount
 
   
Expiration
Date
 
 
    

Value/Unrealized
Appreciation
(Depreciation)
 
 
 
Index Contracts              

CAC 40 10 Euro

     Long        1      $ 75,717       10/20/23      $ (938

*As of period end.

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             207


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Germany ETF

 

   

Six Months Ended

September 30, 2023
(unaudited)

     Year Ended March 31,  
      2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

  $ 22.10      $ 22.37      $ 25.98      $ 16.73      $ 20.70      $ 24.60  
Income from investment operationsa:                 

Net investment incomeb

    0.59        0.60        0.70        0.61        0.52        0.53  

Net realized and unrealized gains (losses)

    (1.51      (0.20      (3.63      9.29        (3.92      (3.83

Total from investment operations

    (0.92      0.40        (2.93      9.90        (3.40      (3.30

Less distributions from net investment income

    (0.69      (0.67      (0.68      (0.65      (0.57      (0.60

Net asset value, end of period

  $ 20.49      $ 22.10      $ 22.37      $ 25.98      $ 16.73      $ 20.70  

Total returnc

    (4.42)%        2.41%        (11.68)%        59.79%        (17.00)%        (13.72)%  
Ratios to average net assetsd                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    5.33%        3.11%        2.73%        2.66%        2.46%        2.44%  
Supplemental data                 

Net assets, end of period (000’s)

    $15,368        $17,683        $16,775        $9,093        $4,182        $4,140  

Portfolio turnover ratee

    2.90%f        4.21%f        6.70%f        5.79%f        5.74%f        10.75%  

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

bBased on average daily shares outstanding.

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

dRatios are annualized for periods less than one year.

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

fPortfolio turnover rate excluding cash creations was as follows:     2.90%        4.21%        6.70%        5.79%        5.74%         

 

           
208             

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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Germany ETF

 

           Industry            Shares                Value  
 

Common Stocks 95.8%

            
    Germany 95.0%                         
 

adidas AG

     Textiles, Apparel & Luxury Goods          2,040        $ 359,874  
 

Allianz SE

     Insurance          4,905          1,172,098  
 

BASF SE

     Chemicals          11,010          500,661  
 

Bayer AG

     Pharmaceuticals          12,120          583,217  
 

Bayerische Motoren Werke AG

     Automobiles          3,855          393,373  
 

Bechtle AG

     IT Services          1,020          47,776  
 

Beiersdorf AG

     Personal Care Products          1,230          159,071  
 

Brenntag SE

     Trading Companies & Distributors          1,905          148,203  
 

Carl Zeiss Meditec AG

     Health Care Equipment & Supplies          450          39,459  
 

Commerzbank AG

     Banks          12,885          147,197  
 

Continental AG

     Automobile Components          1,335          94,361  
a,b  

Covestro AG

     Chemicals          2,340          126,500  
 

CTS Eventim AG & Co. KGaA

     Entertainment          720          41,050  
 

Daimler Truck Holding AG

     Machinery          6,615          229,859  
a,b  

Delivery Hero SE

     Hotels, Restaurants & Leisure          2,340          67,313  
 

Deutsche Bank AG

     Capital Markets          24,915          275,658  
 

Deutsche Boerse AG

     Capital Markets          2,265          392,564  
b  

Deutsche Lufthansa AG

     Passenger Airlines          7,380          58,649  
 

Deutsche Post AG

     Air Freight & Logistics          11,610          473,676  
 

Deutsche Telekom AG

     Diversified Telecommunication Services          41,790          879,063  
 

Deutsche Wohnen SE

     Real Estate Management & Development          630          14,341  
a  

DWS Group GmbH & Co. KGaA

     Capital Markets          420          14,319  
 

E.ON SE

     Multi-Utilities          27,375          324,613  
 

Evonik Industries AG

     Chemicals          2,550          46,774  
 

Fielmann Group AG

     Specialty Retail          285          12,335  
b  

Fraport AG Frankfurt Airport Services Worldwide

     Transportation Infrastructure          435          23,138  
 

Fresenius Medical Care AG & Co. KGaA

     Health Care Providers & Services          2,535          109,612  
 

Fresenius SE & Co. KGaA

     Health Care Providers & Services          5,085          158,605  
 

FUCHS SE

     Chemicals          420          13,496  
 

GEA Group AG

     Machinery          1,995          73,843  
 

Hannover Rueck SE

     Insurance          735          161,784  
 

Heidelberg Materials AG

     Construction Materials          1,725          134,273  
 

Hella GmbH & Co. KGaA

     Automobile Components          285          20,217  
b  

HelloFresh SE

     Consumer Staples Distribution & Retail          1,995          59,733  
 

Henkel AG & Co. KGaA

     Household Products          1,230          77,771  
 

HOCHTIEF AG

     Construction & Engineering          255          25,851  
 

Infineon Technologies AG

     Semiconductors & Semiconductor Equipment          16,125          535,303  
 

KION Group AG

     Machinery          900          34,675  
 

Knorr-Bremse AG

     Machinery          810          51,610  
b  

LEG Immobilien SE

     Real Estate Management & Development          915          63,299  
 

Mercedes-Benz Group AG

     Automobiles          10,605          739,816  
 

Merck KGaA

     Pharmaceuticals          1,590          266,232  
 

MTU Aero Engines AG

     Aerospace & Defense          660          120,015  
 

Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen

     Insurance          1,701          664,725  
 

Nemetschek SE

     Software          675          41,364  
 

Puma SE

     Textiles, Apparel & Luxury Goods          1,215          75,639  
 

Rational AG

     Machinery          60          38,115  
 

Rheinmetall AG

     Aerospace & Defense          540          139,444  
 

RWE AG

     Independent Power Producers & Energy Traders          8,790          327,120  
 

SAP SE

     Software          13,530          1,759,383  
 

Sartorius AG

     Life Sciences Tools & Services          30          8,385  
a  

Scout24 SE

     Interactive Media & Services          915          63,608  
 

Siemens AG

     Industrial Conglomerates          9,210          1,322,833  
b  

Siemens Energy AG

     Electrical Equipment          5,295          69,403  
a  

Siemens Healthineers AG

     Health Care Equipment & Supplies          3,420          173,804  
 

Sixt SE

     Ground Transportation          165          15,338  

 

           
franklintempleton.com  

Semiannual Report

             209


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Germany ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Germany (continued)                         
 

Symrise AG

     Chemicals          1,605        $ 153,480  
 

Talanx AG

     Insurance          675          42,879  
 

Telefonica Deutschland Holding AG

     Diversified Telecommunication Services          10,935          19,624  
 

thyssenkrupp AG

     Metals & Mining          6,030          46,133  
 

Traton SE

     Machinery          615          12,977  
 

Volkswagen AG

     Automobiles          360          47,529  
 

Vonovia SE

     Real Estate Management & Development          8,610          207,932  
 

Wacker Chemie AG

     Chemicals          180          25,851  
a,b  

Zalando SE

     Specialty Retail          2,715          60,738  
              

 

 

 
                 14,587,581  
              

 

 

 
    Luxembourg 0.1%                         
 

RTL Group SA

     Media          465          16,000  
              

 

 

 
    Netherlands 0.7%                         
b  

QIAGEN NV

     Life Sciences Tools & Services          2,715          110,008  
              

 

 

 
 

Total Common Stocks
(Cost $17,070,266)

               14,713,589  
              

 

 

 
 

Preferred Stocks 4.2%

            
    Germany 4.2%                         
c  

Bayerische Motoren Werke AG, 9.649%, pfd.

     Automobiles          705          65,909  
c  

FUCHS SE, 2.906%, pfd.

     Chemicals          855          33,331  
c  

Henkel AG & Co. KGaA, 2.742%, pfd.

     Household Products          2,040          145,703  
c  

Sartorius AG, 0.447%, pfd.

     Life Sciences Tools & Services          304          103,575  
c  

Sixt SE, 10.515%, pfd.

     Ground Transportation          210          12,962  
c  

Volkswagen AG, 25.537%, pfd.

     Automobiles          2,490          287,197  
              

 

 

 
 

Total Preferred Stocks
(Cost $971,424)

               648,677  
              

 

 

 
 

Total Investments
(Cost $18,041,690) 100.0%

               15,362,266  
 

Other Assets, less Liabilities 0.0%

               5,618  
              

 

 

 
 

Net Assets 100.0%

             $ 15,367,884  
              

 

 

 

Rounds to less than 0.1% of net assets.

aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $506,282, representing 3.3% of net assets.

bNon-income producing.

cVariable rate security. The rate shown represents the yield at period end.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Hong Kong ETF

 

   

Six Months Ended

September 30, 2023

(unaudited)

     Year Ended March 31,  
      2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

    $21.34        $23.43        $28.10        $20.58        $26.82        $26.17  
Income from investment operationsa:                 

Net investment incomeb

    0.63        0.77        0.74        0.72        0.77        0.66  

Net realized and unrealized gains (losses)

    (3.46      (2.03      (4.72      7.61        (6.25      0.59  

Total from investment operations

    (2.83      (1.26      (3.98      8.33        (5.48      1.25  

Less distributions from net investment income

    (0.36      (0.83      (0.69      (0.81      (0.76      (0.60

Net asset value, end of period

    $18.15        $21.34        $23.43        $28.10        $20.58        $26.82  

Total returnc

    (13.47)%        (5.39)%        (14.41)%        41.14%        (20.90)%        4.97%  
Ratios to average net assetsd                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    6.30%        3.60%        2.79%        2.99%        3.10%        2.67%  
Supplemental data                 

Net assets, end of period (000’s)

    $10,890        $17,069        $17,573        $16,862        $15,433        $20,118  

Portfolio turnover ratee

    2.66%f        9.00%f        9.91%f        14.84%f        5.99%f        5.33%  

 

 

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

 

bBased on average daily shares outstanding.

 

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

 

dRatios are annualized for periods less than one year.

 

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     2.66%        8.84%        9.74%        14.84%        5.99%         

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Hong Kong ETF

 

           Industry            Shares                Value  
 

Common Stocks 99.4%

            
    Cambodia 0.2%                         
a  

NagaCorp Ltd.

     Hotels, Restaurants & Leisure          36,922        $ 17,820  
              

 

 

 
    China 9.4%                         
 

AAC Technologies Holdings, Inc., Class H

     Electronic Equipment, Instruments & Components          19,500          33,364  
 

BOC Hong Kong Holdings Ltd.

     Banks          104,000          284,837  
b  

Budweiser Brewing Co. APAC Ltd., Class H

     Beverages          49,800          98,304  
 

China Travel International Investment Hong Kong Ltd., Class A

     Hotels, Restaurants & Leisure          72,000          13,790  
 

Chow Tai Fook Jewellery Group Ltd., Class A

     Specialty Retail          51,600          77,744  
b  

ESR Group Ltd., Class H

     Real Estate Management & Development          81,600          114,609  
a  

HUTCHMED China Ltd.

     Pharmaceuticals          14,000          47,639  
 

Kerry Logistics Network Ltd.

     Air Freight & Logistics          8,500          7,597  
 

Lenovo Group Ltd.

     Technology Hardware, Storage & Peripherals          219,000          225,659  
a  

MMG Ltd.

     Metals & Mining          72,000          22,064  
 

Nexteer Automotive Group Ltd.

     Automobile Components          24,000          13,085  
a  

Shangri-La Asia Ltd.

     Hotels, Restaurants & Leisure          32,000          21,900  
 

SITC International Holdings Co. Ltd.

     Marine Transportation          37,000          62,172  
              

 

 

 
                 1,022,764  
              

 

 

 
    Hong Kong 75.9%                         
 

AIA Group Ltd.

     Insurance          257,800          2,101,742  
 

ASMPT Ltd., Class A

     Semiconductors & Semiconductor Equipment          9,000          80,556  
 

Bank of East Asia Ltd., Class A

     Banks          27,600          34,254  
 

Cafe de Coral Holdings Ltd., Class A

     Hotels, Restaurants & Leisure          8,000          8,652  
a  

Cathay Pacific Airways Ltd., Class A

     Passenger Airlines          30,000          30,797  
 

Champion REIT, Class A

     Office REITs          54,000          17,789  
 

CK Asset Holdings Ltd.

     Real Estate Management & Development          56,500          297,583  
 

CK Infrastructure Holdings Ltd., Class A

     Electric Utilities          17,000          80,422  
 

CLP Holdings Ltd.

     Electric Utilities          47,800          353,685  
 

Dah Sing Banking Group Ltd., Class A

     Banks          12,000          7,937  
 

Dah Sing Financial Holdings Ltd., Class H

     Banks          4,800          10,149  
 

DFI Retail Group Holdings Ltd., Class A

     Consumer Staples Distribution & Retail          9,000          23,940  
 

Guotai Junan International Holdings Ltd.

     Capital Markets          72,000          5,608  
a  

Haitong International Securities Group Ltd.

     Capital Markets          108,000          9,791  
 

Hang Lung Group Ltd.

     Real Estate Management & Development          25,000          35,241  
 

Hang Lung Properties Ltd.

     Real Estate Management & Development          52,000          71,176  
 

Hang Seng Bank Ltd.

     Banks          21,000          261,298  
 

Henderson Land Development Co. Ltd.

     Real Estate Management & Development          38,000          100,193  
 

Hong Kong & China Gas Co. Ltd.

     Gas Utilities          316,000          220,300  
 

Hong Kong Exchanges & Clearing Ltd.

     Capital Markets          36,900          1,378,594  
 

Hongkong Land Holdings Ltd.

     Real Estate Management & Development          31,800          113,526  
 

Huabao International Holdings Ltd.

     Chemicals          29,000          9,924  
 

Hutchison Telecommunications Hong Kong Holdings Ltd.

     Wireless Telecommunication Services          36,000          4,918  
 

Hysan Development Co. Ltd.

     Real Estate Management & Development          18,000          34,888  
 

Jardine Matheson Holdings Ltd.

     Industrial Conglomerates          5,710          265,058  
 

Johnson Electric Holdings Ltd.

     Automobile Components          11,000          13,540  
 

Kerry Properties Ltd.

     Real Estate Management & Development          18,000          30,614  
 

Link REIT

     Retail REITs          74,400          364,787  
 

Man Wah Holdings Ltd.

     Household Durables          45,600          32,023  
a  

Melco International Development Ltd.

     Hotels, Restaurants & Leisure          24,000          19,245  
 

MTR Corp. Ltd.

     Ground Transportation          42,000          166,244  
 

New World Development Co. Ltd.

     Real Estate Management & Development          40,000          77,836  
 

NWS Holdings Ltd.

     Industrial Conglomerates          42,000          47,835  
 

Orient Overseas International Ltd.

     Marine Transportation          3,850          51,370  
 

PCCW Ltd.

     Diversified Telecommunication Services          120,000          54,700  
 

Power Assets Holdings Ltd.

     Electric Utilities          39,500          191,149  
 

Sino Land Co. Ltd.

     Real Estate Management & Development          98,300          110,828  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Hong Kong ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Hong Kong (continued)                         
 

Sun Hung Kai Properties Ltd.

     Real Estate Management & Development          41,400        $ 442,976  
a  

Super Hi International Holding Ltd.

     Hotels, Restaurants & Leisure          4,000          7,896  
 

Swire Pacific Ltd., Class A

     Real Estate Management & Development          12,000          80,977  
 

Swire Pacific Ltd., Class B

     Real Estate Management & Development          25,000          27,324  
 

Swire Properties Ltd.

     Real Estate Management & Development          31,200          65,094  
 

Techtronic Industries Co. Ltd.

     Machinery          38,000          368,751  
 

United Energy Group Ltd.

     Oil, Gas & Consumable Fuels          216,000          31,717  
 

Vitasoy International Holdings Ltd.

     Food Products          24,000          29,051  
 

VTech Holdings Ltd.

     Communications Equipment          4,800          28,744  
b  

WH Group Ltd.

     Food Products          228,000          119,650  
 

Wharf Holdings Ltd.

     Real Estate Management & Development          27,143          68,067  
 

Wharf Real Estate Investment Co. Ltd.

     Real Estate Management & Development          44,679          172,570  
 

Xinyi Glass Holdings Ltd.

     Building Products          60,114          77,830  
 

Yue Yuen Industrial Holdings Ltd.

     Textiles, Apparel & Luxury Goods          21,000          24,132  
              

 

 

 
                 8,262,971  
              

 

 

 
    Indonesia 0.2%                         
 

First Pacific Co. Ltd.

     Food Products          66,000          26,124  
              

 

 

 
    Italy 0.8%                         
 

PRADA SpA

     Textiles, Apparel & Luxury Goods          15,000          88,293  
              

 

 

 
    Luxembourg 0.3%                         
 

L’Occitane International SA

     Personal Care Products          12,000          35,854  
              

 

 

 
    Macau 6.3%                         
 

Galaxy Entertainment Group Ltd.

     Hotels, Restaurants & Leisure          62,740          377,713  
a  

MGM China Holdings Ltd.

     Hotels, Restaurants & Leisure          21,600          28,242  
a  

Sands China Ltd.

     Hotels, Restaurants & Leisure          69,600          213,283  
a  

SJM Holdings Ltd.

     Hotels, Restaurants & Leisure          66,000          25,956  
a  

Wynn Macau Ltd.

     Hotels, Restaurants & Leisure          43,200          41,369  
              

 

 

 
                 686,563  
              

 

 

 
    Singapore 0.4%                         
b  

BOC Aviation Ltd., Class A

     Trading Companies & Distributors          6,000          41,868  
              

 

 

 
    Taiwan 0.0%                         
a,b  

FIT Hon Teng Ltd.

     Electronic Equipment, Instruments & Components          36,000          4,689  
              

 

 

 
    United Kingdom 3.8%                         
 

CK Hutchison Holdings Ltd., Class A

     Industrial Conglomerates          77,000          411,946  
              

 

 

 
    United States 2.1%                         
b  

JS Global Lifestyle Co. Ltd.

     Household Durables          36,000          5,976  
a,b  

Samsonite International SA

     Textiles, Apparel & Luxury Goods          37,800          129,831  
a  

SharkNinja, Inc.

     Household Durables          1,920          89,011  
              

 

 

 
                 224,818  
              

 

 

 
 

Total Common Stocks (Cost $15,234,895)

               10,823,710  
              

 

 

 
 

Total Investments (Cost $15,234,895) 99.4%

               10,823,710  
 

Other Assets, less Liabilities 0.6%

               66,533  
              

 

 

 
 

Net Assets 100.0%

             $ 10,890,243  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $514,927, representing 4.7% of net assets.

 

           
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             213


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Hong Kong ETF (continued)

 

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

 

Description      Type       
Number of
Contracts
 
 
    
Notional
Amount
 
   
Expiration
Date
 
 
    

Value/Unrealized
Appreciation
(Depreciation)
 
 
 

Equity Contracts

             

MINI HSI IDX

     Long        3        $68,524       10/30/23        $320  

*As of period end.

 

 

 

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE India ETF

 

   

Six Months Ended

September 30, 2023

(unaudited)

    Year Ended March 31,  
     2023     2022     2021     2020     2019  
Per share operating performance
(for a share outstanding throughout the period)
           

Net asset value, beginning of period

  $ 27.49     $ 31.34     $ 27.70     $ 15.98     $ 23.36     $ 22.74  
Income from investment operationsa:            

Net investment incomeb

    0.18       0.28       0.27       0.20       0.26       0.29  

Net realized and unrealized gains (losses)

    4.07       (3.92     4.09       11.70       (7.43     0.53  

Total from investment operations

    4.25       (3.64     4.36       11.90       (7.17     0.82  

Less distributions from net investment income

          (0.21     (0.72     (0.18     (0.21     (0.20

Net asset value, end of period

  $ 31.74     $ 27.49     $ 31.34     $ 27.70     $ 15.98     $ 23.36  

Total returnc

    15.42%       (11.65)%       15.75%       74.87%       (30.98)%       3.66%  
Ratios to average net assetsd            

Total expenses

    0.19%       0.19%       0.19%       0.19%       0.19%       0.19%  

Net investment income

    1.20%       0.98%       0.86%       0.89%       1.20%       1.33%  
Supplemental data            

Net assets, end of period (000’s)

    $379,259       $98,977       $50,140       $23,544       $8,790       $7,007  

Portfolio turnover ratee

    6.90%f       6.73%f       10.73%f       23.48%f       36.55%f       8.03%  

 

 

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

 

bBased on average daily shares outstanding.

 

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

 

dRatios are annualized for periods less than one year.

 

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     2.24     6.23     8.16     16.91     6.83      

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE India ETF

 

           Industry            Shares                Value  
 

Common Stocks 99.5%

            
    India 99.5%                         
 

3M India Ltd.

     Industrial Conglomerates          856        $ 327,859  
 

Aarti Industries Ltd.

     Chemicals          62,768          371,432  
 

ABB India Ltd.

     Electrical Equipment          16,518          815,196  
 

ACC Ltd.

     Construction Materials          25,956          628,964  
a  

Adani Energy Solutions Ltd.

     Electric Utilities          112,086          1,093,645  
 

Adani Enterprises Ltd.

     Trading Companies & Distributors          110,908          3,223,950  
a  

Adani Green Energy Ltd.

     Independent Power Producers & Energy Traders          133,088          1,582,079  
 

Adani Ports & Special Economic Zone Ltd.

     Transportation Infrastructure          266,178          2,644,912  
a  

Adani Power Ltd.

     Independent Power Producers & Energy Traders          305,822          1,390,062  
 

Adani Total Gas Ltd.

     Gas Utilities          87,074          643,031  
a  

Adani Wilmar Ltd.

     Food Products          50,498          205,175  
a  

Aditya Birla Capital Ltd.

     Financial Services          156,922          340,049  
 

AIA Engineering Ltd.

     Machinery          12,270          519,029  
 

Alkem Laboratories Ltd.

     Pharmaceuticals          7,550          327,844  
 

Ambuja Cements Ltd.

     Construction Materials          231,490          1,184,194  
 

APL Apollo Tubes Ltd.

     Metals & Mining          54,038          1,057,447  
 

Apollo Hospitals Enterprise Ltd.

     Health Care Providers & Services          31,384          1,941,724  
 

Ashok Leyland Ltd.

     Machinery          453,778          967,215  
 

Asian Paints Ltd.

     Chemicals          142,764          5,434,458  
 

Astral Ltd.

     Building Products          37,518          864,044  
b  

AU Small Finance Bank Ltd.

     Banks          103,120          886,019  
 

Aurobindo Pharma Ltd.

     Pharmaceuticals          83,534          919,776  
a,b  

Avenue Supermarts Ltd.

     Consumer Staples Distribution & Retail          47,430          2,099,363  
 

Axis Bank Ltd.

     Banks          721,138          9,002,800  
 

Bajaj Auto Ltd.

     Automobiles          21,472          1,309,322  
 

Bajaj Finance Ltd.

     Consumer Finance          77,398          7,279,953  
 

Bajaj Finserv Ltd.

     Financial Services          120,818          2,240,934  
 

Bajaj Holdings & Investment Ltd.

     Financial Services          8,494          727,104  
 

Balkrishna Industries Ltd.

     Automobile Components          25,248          777,678  
b  

Bandhan Bank Ltd.

     Banks          248,716          753,565  
 

Bank of Baroda

     Banks          324,464          835,959  
 

Bank of India

     Banks          243,288          320,512  
 

Bata India Ltd.

     Textiles, Apparel & Luxury Goods          20,764          402,171  
 

Bayer CropScience Ltd.

     Chemicals          4,055          260,775  
a  

Berger Paints India Ltd.

     Chemicals          15,034          102,983  
 

Berger Paints India Ltd.

     Chemicals          76,710          525,480  
 

Bharat Electronics Ltd.

     Aerospace & Defense          1,131,026          1,883,653  
 

Bharat Forge Ltd.

     Automobile Components          79,758          1,048,441  
 

Bharat Heavy Electricals Ltd.

     Electrical Equipment          401,864          633,952  
 

Bharat Petroleum Corp. Ltd.

     Oil, Gas & Consumable Fuels          316,206          1,319,790  
 

Bharti Airtel Ltd.

     Wireless Telecommunication Services          48,374          310,896  
 

Bharti Airtel Ltd.

     Wireless Telecommunication Services          732,464          8,171,296  
 

Biocon Ltd.

     Biotechnology          145,360          476,474  
 

Bosch Ltd.

     Automobile Components          2,747          629,171  
 

Britannia Industries Ltd.

     Food Products          37,754          2,062,777  
 

Canara Bank

     Banks          115,626          523,888  
 

Castrol India Ltd.

     Chemicals          155,270          259,060  
 

CG Power & Industrial Solutions Ltd.

     Electrical Equipment          202,466          1,078,145  
 

Cholamandalam Investment & Finance Co. Ltd.

     Consumer Finance          127,190          1,864,859  
 

Cipla Ltd.

     Pharmaceuticals          161,878          2,312,244  
 

Coal India Ltd.

     Oil, Gas & Consumable Fuels          717,598          2,550,960  
 

Coforge Ltd.

     IT Services          18,406          1,131,396  
 

Colgate-Palmolive India Ltd.

     Personal Care Products          42,002          1,014,401  
 

Container Corp. of India Ltd.

     Ground Transportation          86,366          744,875  
 

Coromandel International Ltd.

     Chemicals          33,980          469,059  
 

Cummins India Ltd.

     Machinery          42,710          872,446  
 

Dabur India Ltd.

     Personal Care Products          182,880          1,214,777  

 

           
216             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE India ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    India (continued)                         
 

Dalmia Bharat Ltd.

     Construction Materials          25,956        $ 751,522  
 

Deepak Nitrite Ltd.

     Chemicals          21,944          560,338  
 

Divi’s Laboratories Ltd.

     Life Sciences Tools & Services          40,350          1,829,498  
 

Dixon Technologies India Ltd.

     Household Durables          11,326          721,401  
 

DLF Ltd.

     Real Estate Management & Development          196,566          1,256,687  
b  

Dr Lal PathLabs Ltd.

     Health Care Providers & Services          10,854          329,948  
 

Dr Reddy’s Laboratories Ltd.

     Pharmaceuticals          38,226          2,571,838  
 

Eicher Motors Ltd.

     Automobiles          43,890          1,821,825  
 

Emami Ltd.

     Personal Care Products          66,720          432,621  
 

Embassy Office Parks REIT

     Office REITs          191,138          691,921  
 

Exide Industries Ltd.

     Automobile Components          147,416          462,621  
 

Federal Bank Ltd.

     Banks          549,820          974,618  
a  

FSN E-Commerce Ventures Ltd.

     Specialty Retail          425,934          785,791  
 

GAIL India Ltd.

     Gas Utilities          834,406          1,249,982  
b  

General Insurance Corp. of India

     Insurance          30,507          82,806  
 

GlaxoSmithKline Pharmaceuticals Ltd.

     Pharmaceuticals          13,686          255,167  
 

Glenmark Pharmaceuticals Ltd.

     Pharmaceuticals          48,477          499,415  
a  

GMR Airports Infrastructure Ltd.

     Transportation Infrastructure          757,242          543,028  
a  

Godrej Consumer Products Ltd.

     Personal Care Products          115,390          1,377,878  
a  

Godrej Industries Ltd.

     Industrial Conglomerates          20,764          142,438  
a  

Godrej Properties Ltd.

     Real Estate Management & Development          32,564          609,429  
 

Grasim Industries Ltd.

     Construction Materials          121,290          2,837,068  
 

Gujarat Fluorochemicals Ltd.

     Chemicals          12,506          459,322  
 

Gujarat Gas Ltd.

     Gas Utilities          64,892          330,472  
 

Havells India Ltd.

     Electrical Equipment          76,218          1,274,824  
 

HCL Technologies Ltd.

     IT Services          334,612          4,975,586  
b  

HDFC Asset Management Co. Ltd.

     Capital Markets          31,856          1,015,606  
 

HDFC Bank Ltd.

     Banks          1,213,616          22,306,289  
b  

HDFC Life Insurance Co. Ltd.

     Insurance          312,194          2,396,309  
 

Hero MotoCorp Ltd.

     Automobiles          41,294          1,520,282  
 

Hindalco Industries Ltd.

     Metals & Mining          446,228          2,647,289  
 

Hindustan Aeronautics Ltd.

     Aerospace & Defense          59,936          1,391,665  
a  

Hindustan Petroleum Corp. Ltd.

     Oil, Gas & Consumable Fuels          189,014          580,303  
 

Hindustan Unilever Ltd.

     Personal Care Products          280,572          8,330,538  
 

Hindustan Zinc Ltd.

     Metals & Mining          71,264          264,876  
 

Honeywell Automation India Ltd.

     Electronic Equipment, Instruments & Components          714          342,668  
 

ICICI Bank Ltd.

     Banks          497,670          5,704,780  
b  

ICICI Lombard General Insurance Co. Ltd.

     Insurance          76,218          1,201,948  
b  

ICICI Prudential Life Insurance Co. Ltd.

     Insurance          120,110          818,946  
 

IDBI Bank Ltd.

     Banks          188,070          160,233  
a  

IDFC First Bank Ltd.

     Banks          1,027,432          1,181,579  
 

Indian Bank

     Banks          62,902          320,830  
 

Indian Hotels Co. Ltd.

     Hotels, Restaurants & Leisure          262,166          1,297,866  
 

Indian Oil Corp. Ltd.

     Oil, Gas & Consumable Fuels          1,297,388          1,420,950  
 

Indian Railway Catering & Tourism Corp. Ltd.

     Commercial Services & Supplies          94,624          775,816  
b  

Indian Railway Finance Corp. Ltd.

     Financial Services          572,238          527,507  
 

Indraprastha Gas Ltd.

     Gas Utilities          109,256          598,439  
a  

Indus Towers Ltd.

     Diversified Telecommunication Services          262,874          606,842  
 

Info Edge India Ltd.

     Interactive Media & Services          24,304          1,219,074  
 

Infosys Ltd.

     IT Services          1,109,080          19,171,543  
a,b  

InterGlobe Aviation Ltd.

     Passenger Airlines          39,406          1,129,963  
 

Ipca Laboratories Ltd.

     Pharmaceuticals          43,654          491,862  
 

ITC Ltd.

     Tobacco          944,134          5,052,587  
 

Jindal Steel & Power Ltd.

     Metals & Mining          122,942          1,038,344  
a  

Jio Financial Services Ltd.

     Financial Services          1,061,650          2,955,802  
 

JSW Energy Ltd.

     Independent Power Producers & Energy Traders          119,166          627,679  
 

JSW Steel Ltd.

     Metals & Mining          318,092          2,986,281  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE India ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    India (continued)                         
 

Jubilant Foodworks Ltd.

     Hotels, Restaurants & Leisure          114,446        $ 734,709  
 

Kansai Nerolac Paints Ltd.

     Chemicals          65,836          251,678  
 

Kotak Mahindra Bank Ltd.

     Banks          31,148          651,045  
 

L&T Finance Holdings Ltd.

     Financial Services          271,842          435,713  
b  

L&T Technology Services Ltd.

     Professional Services          8,494          468,058  
 

Larsen & Toubro Ltd.

     Construction & Engineering          197,683          7,197,681  
b  

Laurus Labs Ltd.

     Pharmaceuticals          124,242          591,577  
 

LIC Housing Finance Ltd.

     Financial Services          96,195          537,903  
 

Linde India Ltd.

     Chemicals          6,842          490,550  
b  

LTIMindtree Ltd.

     IT Services          29,024          1,820,911  
 

Lupin Ltd.

     Pharmaceuticals          76,218          1,075,012  
b  

Macrotech Developers Ltd.

     Real Estate Management & Development          71,736          691,045  
 

Mahindra & Mahindra Financial Services Ltd.

     Consumer Finance          186,654          677,352  
 

Mahindra & Mahindra Ltd.

     Automobiles          297,092          5,560,553  
a  

Mangalore Refinery & Petrochemicals Ltd.

     Oil, Gas & Consumable Fuels          64,955          74,778  
 

Marico Ltd.

     Food Products          164,002          1,109,229  
 

Maruti Suzuki India Ltd.

     Automobiles          41,766          5,336,653  
a  

Max Financial Services Ltd.

     Insurance          72,444          793,653  
 

Max Healthcare Institute Ltd.

     Health Care Providers & Services          208,836          1,426,924  
 

Mphasis Ltd.

     IT Services          25,484          729,340  
 

MRF Ltd.

     Automobile Components          853          1,102,141  
 

Muthoot Finance Ltd.

     Consumer Finance          34,452          519,427  
 

Nestle India Ltd.

     Food Products          11,326          3,069,717  
 

NHPC Ltd.

     Independent Power Producers & Energy Traders          734,824          467,222  
b  

Nippon Life India Asset Management Ltd.

     Capital Markets          45,542          179,856  
 

NMDC Ltd.

     Metals & Mining          361,748          644,506  
 

NTPC Ltd.

     Independent Power Producers & Energy Traders          1,497,730          4,428,734  
 

Oberoi Realty Ltd.

     Real Estate Management & Development          36,576          508,440  
 

Oil & Natural Gas Corp. Ltd.

     Oil, Gas & Consumable Fuels          1,226,832          2,834,347  
 

Oil India Ltd.

     Oil, Gas & Consumable Fuels          106,896          384,699  
a  

One 97 Communications Ltd.

     Financial Services          103,120          1,065,085  
 

Oracle Financial Services Software Ltd.

     Software          7,314          362,070  
 

Page Industries Ltd.

     Textiles, Apparel & Luxury Goods          1,812          850,533  
 

Patanjali Foods Ltd.

     Food Products          29,496          440,142  
a  

PB Fintech Ltd.

     Insurance          98,400          906,785  
 

Persistent Systems Ltd.

     IT Services          15,810          1,103,618  
 

Petronet LNG Ltd.

     Oil, Gas & Consumable Fuels          236,682          683,899  
 

PI Industries Ltd.

     Chemicals          25,484          1,059,669  
 

Pidilite Industries Ltd.

     Chemicals          48,138          1,414,148  
 

Piramal Enterprises Ltd.

     Financial Services          40,832          515,973  
 

Polycab India Ltd.

     Electrical Equipment          15,102          971,695  
 

Power Finance Corp. Ltd.

     Financial Services          369,584          1,121,108  
a  

Power Finance Corp. Ltd.

     Financial Services          89,974          272,932  
 

Power Grid Corp. of India Ltd.

     Electric Utilities          1,325,940          3,189,457  
 

Punjab National Bank

     Banks          691,404          667,748  
a  

Rajesh Exports Ltd.

     Textiles, Apparel & Luxury Goods          43,418          262,522  
b  

RBL Bank Ltd.

     Banks          141,276          429,997  
 

REC Ltd.

     Financial Services          394,784          1,366,320  
 

Relaxo Footwears Ltd.

     Textiles, Apparel & Luxury Goods          23,360          253,358  
 

Reliance Industries Ltd.

     Oil, Gas & Consumable Fuels          1,063,772          30,039,834  
 

Samvardhana Motherson International Ltd.

     Automobile Components          752,994          870,500  
 

SBI Cards & Payment Services Ltd.

     Consumer Finance          91,558          872,236  
b  

SBI Life Insurance Co. Ltd.

     Insurance          133,088          2,092,130  
 

Schaeffler India Ltd.

     Machinery          12,742          508,644  
 

Shree Cement Ltd.

     Construction Materials          4,323          1,325,669  
 

Shriram Finance Ltd.

     Consumer Finance          88,490          2,045,288  
 

Siemens Ltd.

     Industrial Conglomerates          28,080          1,241,838  

 

           
218             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE India ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    India (continued)                         
 

Solar Industries India Ltd.

     Chemicals          7,786        $ 451,926  
b  

Sona Blw Precision Forgings Ltd.

     Automobile Components          111,144          780,834  
 

SRF Ltd.

     Chemicals          44,834          1,214,452  
a  

Star Health & Allied Insurance Co. Ltd.

     Insurance          71,500          517,429  
 

State Bank of India

     Banks          565,158          4,073,582  
 

Steel Authority of India Ltd.

     Metals & Mining          462,982          523,244  
 

Sun Pharmaceutical Industries Ltd.

     Pharmaceuticals          344,050          4,800,428  
 

Sun TV Network Ltd.

     Media          26,900          198,297  
 

Supreme Industries Ltd.

     Chemicals          20,292          1,007,132  
b  

Syngene International Ltd.

     Life Sciences Tools & Services          51,678          500,436  
 

Tata Communications Ltd.

     Diversified Telecommunication Services          36,576          851,291  
 

Tata Consultancy Services Ltd.

     IT Services          323,048          13,726,999  
 

Tata Consumer Products Ltd.

     Food Products          193,026          2,038,318  
 

Tata Elxsi Ltd.

     Software          10,854          944,633  
 

Tata Motors Ltd., Class A

     Automobiles          583,564          4,428,667  
 

Tata Motors Ltd., Class A

     Automobiles          120,110          619,127  
 

Tata Power Co. Ltd.

     Electric Utilities          524,334          1,656,199  
 

Tata Steel Ltd.

     Metals & Mining          2,580,382          4,005,374  
a  

Tata Teleservices Maharashtra Ltd.

     Diversified Telecommunication Services          156,686          187,647  
 

Tech Mahindra Ltd.

     IT Services          192,318          2,831,923  
 

Titan Co. Ltd.

     Textiles, Apparel & Luxury Goods          131,672          4,992,805  
 

Torrent Pharmaceuticals Ltd.

     Pharmaceuticals          30,676          712,623  
 

Torrent Power Ltd.

     Electric Utilities          69,421          617,373  
 

Trent Ltd.

     Specialty Retail          57,576          1,442,256  
 

Tube Investments of India Ltd.

     Automobile Components          31,856          1,146,361  
 

TVS Motor Co. Ltd.

     Automobiles          74,802          1,370,809  
 

UltraTech Cement Ltd.

     Construction Materials          36,104          3,588,977  
 

Union Bank of India Ltd.

     Banks          348,534          446,154  
 

United Breweries Ltd.

     Beverages          21,708          407,019  
a  

United Spirits Ltd.

     Beverages          91,322          1,107,691  
 

UNO Minda Ltd.

     Automobile Components          54,274          391,788  
 

UPL Ltd.

     Chemicals          167,070          1,239,828  
 

Varun Beverages Ltd.

     Beverages          147,484          1,679,594  
 

Vedant Fashions Ltd.

     Textiles, Apparel & Luxury Goods          18,642          300,492  
 

Vedanta Ltd.

     Metals & Mining          373,546          1,001,101  
a  

Vodafone Idea Ltd.

     Wireless Telecommunication Services          2,557,728          358,828  
 

Voltas Ltd.

     Construction & Engineering          72,208          750,677  
 

Whirlpool of India Ltd.

     Household Durables          9,674          189,312  
 

Wipro Ltd.

     IT Services          444,812          2,175,014  
a  

Yes Bank Ltd.

     Banks          6,319,638          1,312,766  
a  

Zee Entertainment Enterprises Ltd.

     Media          260,516          829,943  
a  

Zomato Ltd.

     Hotels, Restaurants & Leisure          1,726,390          2,110,139  
 

Zydus Lifesciences Ltd.

     Pharmaceuticals          79,758          590,684  
              

 

 

 
 

Total Common Stocks (Cost $342,752,072)

 

       377,338,826  
              

 

 

 
 

Total Investments (Cost $342,752,072) 99.5%

 

       377,338,826  
 

Other Assets, less Liabilities 0.5%

               1,920,629  
              

 

 

 
 

Net Assets 100.0%

             $ 379,259,455  
              

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $18,796,824, representing 5.0% of net assets.

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE India ETF (continued)

 

At September 30, 2023, the Fund had the following forward exchange contracts outstanding. See Note 1(c).

Forward Exchange Contracts

 

Currency    Counterpartya      Type      Quantity      Contract
Amount
     Settlement
Date
     Unrealized
Appreciation
     Unrealized
Depreciation
 

 

 
OTC Forward Exchange Contracts                                            

Indian Rupee

     State Street Bank & Trust Co.        Buy        401,727,917      $ 4,832,362        10/03/23        $5,329        $      —  
                 

 

 

 

Net unrealized appreciation (depreciation)

 

                 $ 5,329  
                 

 

 

 

aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

 

Description    Type     Number of
Contracts
    Notional
Amount*
    Expiration
Date
    Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts                               

IFSC Nifty 50

     Long       147     $ 5,794,887       10/26/23       $(3,055

*As of period end.

 

 

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
220             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Italy ETF

 

    Six Months Ended
September 30, 2023
(unaudited)
     Year Ended March 31,  
      2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

    $25.19        $24.65        $26.50        $17.61        $23.13        $26.27  
Income from investment operationsa:                 

Net investment incomeb

    0.73        0.87        0.85        0.67        0.90        0.46  

Net realized and unrealized gains (losses)

    0.55        0.74        (1.59      8.80        (5.52      (2.99

Total from investment operations

    1.28        1.61        (0.74      9.47        (4.62      (2.53

Less distributions from net investment income

    (0.76      (1.07      (1.11)        (0.58      (0.90      (0.61

Net asset value, end of period

    $25.71        $25.19        $24.65        $26.50        $17.61        $23.13  

Total returnc

    5.06%        7.51%        (3.15)%        54.64%        (20.84)%        (9.67)%  
Ratios to average net assetsd                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    5.58%        3.96%        3.15%        3.04%        3.85%        2.05%  
Supplemental data                 

Net assets, end of period (000’s)

    $5,143        $5,039        $3,698        $3,974        $2,641        $10,410  

Portfolio turnover ratee

    8.61%f        18.04%f        12.75%f        17.45%f        9.89%f        16.67%  

 

 

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

bBased on average daily shares outstanding.

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

dRatios are annualized for periods less than one year.

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     8.61%        18.04%        12.75%        17.45%        9.89%         

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             221


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Italy ETF

 

           Industry            Shares                Value  
 

Common Stocks 99.9%

            
    Italy 87.2%                         
 

A2A SpA

     Multi-Utilities          24,480        $ 43,698  
 

Amplifon SpA

     Health Care Providers & Services          2,056          61,211  
 

Assicurazioni Generali SpA

     Insurance          10,280          210,768  
 

Banca Mediolanum SpA

     Financial Services          3,852          33,042  
 

Banco BPM SpA

     Banks          21,820          104,767  
 

Buzzi SpA

     Construction Materials          1,372          37,651  
 

Davide Campari-Milano NV

     Beverages          7,920          93,622  
 

DiaSorin SpA

     Health Care Equipment & Supplies          340          31,109  
 

Enel SpA

     Electric Utilities          94,228          580,626  
 

Eni SpA

     Oil, Gas & Consumable Fuels          14,796          238,989  
 

Ferrari NV

     Automobiles          1,443          427,319  
 

FinecoBank Banca Fineco SpA

     Banks          9,740          118,745  
 

Hera SpA

     Multi-Utilities          12,296          33,718  
a  

Infrastrutture Wireless Italiane SpA

     Diversified Telecommunication Services          5,652          67,410  
 

Interpump Group SpA

     Machinery          1,268          58,385  
 

Intesa Sanpaolo SpA

     Banks          188,120          485,980  
 

Italgas SpA

     Gas Utilities          7,820          40,172  
 

Leonardo SpA

     Aerospace & Defense          6,376          92,213  
 

Mediobanca Banca di Credito Finanziario SpA

     Banks          10,268          136,217  
 

Moncler SpA

     Textiles, Apparel & Luxury Goods          2,528          147,423  
a,b  

Nexi SpA

     Financial Services          8,856          54,270  
a  

Pirelli & C SpA

     Automobile Components          7,800          37,666  
a  

Poste Italiane SpA

     Insurance          7,232          76,324  
 

Prysmian SpA

     Electrical Equipment          3,720          150,256  
 

Recordati Industria Chimica e Farmaceutica SpA

     Pharmaceuticals          1,548          73,277  
 

Reply SpA

     IT Services          360          33,941  
 

Snam SpA

     Gas Utilities          30,044          141,519  
b  

Telecom Italia SpA

     Diversified Telecommunication Services          171,052          53,624  
b  

Telecom Italia SpA

     Diversified Telecommunication Services          96,140          30,262  
 

Tenaris SA

     Energy Equipment & Services          7,448          118,165  
 

Terna - Rete Elettrica Nazionale

     Electric Utilities          18,572          140,159  
 

UniCredit SpA

     Banks          21,428          515,673  
 

UnipolSai Assicurazioni SpA

     Insurance          6,676          16,158  
              

 

 

 
                 4,484,359  
              

 

 

 
    United Kingdom 2.8%                         
 

CNH Industrial NV

     Machinery          11,812          144,319  
              

 

 

 
    United States 9.9%                         
 

Stellantis NV

     Automobiles          26,488          510,684  
              

 

 

 
 

Total Common Stocks (Cost $4,427,315)

               5,139,362  
              

 

 

 
 

Total Investments (Cost $4,427,315) 99.9%

               5,139,362  
 

Other Assets, less Liabilities 0.1%

               3,380  
              

 

 

 
 

Net Assets 100.0%

             $ 5,142,742  
              

 

 

 

aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $235,670, representing 4.6% of net assets.

bNon-income producing.

 

           
222             

Semiannual Report    |    The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Japan ETF

 

   

Six Months Ended

September 30, 2023
(unaudited)

    Year Ended March 31,  
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the period)
               

Net asset value, beginning of period

    $25.66       $27.42        $30.25        $21.93        $24.18        $26.69  
 

 

 

 
Income from investment operationsa:                

Net investment incomeb

    0.28       0.63        0.63        0.53        0.56        0.59  

Net realized and unrealized gains (losses)

    0.92       (1.93      (2.76      8.24        (2.22      (2.76
 

 

 

 

Total from investment operations

    1.20       (1.30      (2.13      8.77        (1.66      (2.17
 

 

 

 

Less distributions from net investment income

    (0.36     (0.46      (0.70      (0.45      (0.59      (0.34
 

 

 

 

Net asset value, end of period

    $26.50       $25.66        $27.42        $30.25        $21.93        $24.18  
 

 

 

 

Total returnc

    4.67%       (4.61)%        (7.21)%        40.23%        (7.15)%        (8.10)%  
Ratios to average net assetsd                

Expenses before waiver and payments by affiliates

    0.09%       0.09%        0.09%        0.09%        0.09%        0.09%  

Expenses net of waiver and payments by affiliates

    0.09%       0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    2.13%       2.60%        2.14%        1.98%        2.30%        2.39%  
Supplemental data                

Net assets, end of period (000’s)

    $1,494,748       $1,000,803        $789,637        $598,934        $315,851        $290,205  

Portfolio turnover ratee

    1.90%f       3.01%f        2.95%f        5.76%f        4.59%f        4.35%f  

 

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

 

bBased on average daily shares outstanding.

 

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

 

dRatios are annualized for periods less than one year.

 

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     1.90%        3.00%        2.80%        5.76%        4.51%         

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             223


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Japan ETF

 

           Industry            Shares                Value  
 

Common Stocks 99.1%

            
    Japan 99.1%                         
 

ABC-Mart, Inc.

     Specialty Retail          28,200        $ 507,968  
 

Acom Co. Ltd.

     Consumer Finance          141,000          329,575  
 

Activia Properties, Inc.

     Diversified REITs          282          779,528  
 

Advance Residence Investment Corp.

     Residential REITs          470          1,067,717  
 

Advantest Corp.

     Semiconductors & Semiconductor Equipment          274,800          7,699,372  
 

Aeon Co. Ltd.

     Consumer Staples Distribution & Retail          263,200          5,225,197  
 

AEON Financial Service Co. Ltd.

     Consumer Finance          47,000          405,827  
 

Aeon Mall Co. Ltd.

     Real Estate Management & Development          47,000          554,331  
 

AEON REIT Investment Corp.

     Retail REITs          658          645,984  
 

AGC, Inc.

     Building Products          65,800          2,312,315  
 

Aica Kogyo Co. Ltd.

     Chemicals          18,800          420,409  
 

Ain Holdings, Inc.

     Consumer Staples Distribution & Retail          9,400          277,795  
 

Air Water, Inc.

     Chemicals          65,800          821,480  
 

Aisin Corp.

     Automobile Components          65,800          2,491,339  
 

Ajinomoto Co., Inc.

     Food Products          169,200          6,535,559  
 

Alfresa Holdings Corp.

     Health Care Providers & Services          56,400          927,874  
 

Alps Alpine Co. Ltd.

     Electronic Equipment, Instruments & Components          75,200          653,858  
 

Amada Co. Ltd.

     Machinery          112,800          1,137,260  
 

Amano Corp.

     Electronic Equipment, Instruments & Components          28,200          620,220  
 

Amvis Holdings, Inc.

     Health Care Providers & Services          9,400          163,969  
a  

ANA Holdings, Inc.

     Passenger Airlines          56,400          1,184,126  
 

Anritsu Corp.

     Electronic Equipment, Instruments & Components          47,000          336,220  
b  

Aozora Bank Ltd.

     Banks          47,000          962,205  
 

Ariake Japan Co. Ltd.

     Food Products          9,400          319,622  
 

As One Corp.

     Health Care Providers & Services          9,400          343,937  
 

Asahi Group Holdings Ltd.

     Beverages          178,600          6,690,394  
 

Asahi Intecc Co. Ltd.

     Health Care Equipment & Supplies          75,200          1,354,583  
 

Asahi Kasei Corp.

     Chemicals          460,600          2,901,109  
 

Asics Corp.

     Textiles, Apparel & Luxury Goods          65,800          2,303,055  
 

ASKUL Corp.

     Broadline Retail          18,800          246,929  
 

Astellas Pharma, Inc.

     Pharmaceuticals          676,800          9,406,488  
 

Azbil Corp.

     Electronic Equipment, Instruments & Components          47,000          1,441,890  
 

AZ-COM MARUWA Holdings, Inc.

     Air Freight & Logistics          18,800          268,094  
 

Bandai Namco Holdings, Inc.

     Leisure Products          216,200          4,407,307  
a  

Bank of Kyoto Ltd.

     Banks          28,200          1,591,748  
 

BayCurrent Consulting, Inc.

     Professional Services          47,000          1,574,173  
 

Benefit One, Inc.

     Professional Services          18,800          136,252  
 

Benesse Holdings, Inc.

     Diversified Consumer Services          28,200          345,732  
 

Bic Camera, Inc.

     Specialty Retail          56,400          416,882  
 

BIPROGY, Inc.

     IT Services          28,200          705,638  
 

Bridgestone Corp.

     Automobile Components          206,800          8,077,984  
 

Brother Industries Ltd.

     Technology Hardware, Storage & Peripherals          84,600          1,365,449  
 

Calbee, Inc.

     Food Products          28,200          537,449  
 

Canon Marketing Japan, Inc.

     Electronic Equipment, Instruments & Components          18,800          488,441  
 

Canon, Inc.

     Technology Hardware, Storage & Peripherals          357,200          8,629,291  
 

Capcom Co. Ltd.

     Entertainment          65,800          2,374,488  
 

Casio Computer Co. Ltd.

     Household Durables          75,200          631,685  
 

Central Japan Railway Co.

     Ground Transportation          339,500          8,269,945  
 

Chiba Bank Ltd.

     Banks          225,600          1,644,094  
 

Chubu Electric Power Co., Inc.

     Electric Utilities          263,200          3,363,528  
 

Chugai Pharmaceutical Co. Ltd.

     Pharmaceuticals          244,400          7,573,165  
 

Chugin Financial Group, Inc.

     Banks          65,800          492,315  
 

Chugoku Electric Power Co., Inc.

     Electric Utilities          112,800          695,509  
 

Coca-Cola Bottlers Japan Holdings, Inc.

     Beverages          56,400          743,055  
 

COMSYS Holdings Corp.

     Construction & Engineering          37,600          787,654  
 

Concordia Financial Group Ltd.

     Banks          404,200          1,845,953  
 

Cosmo Energy Holdings Co. Ltd.

     Oil, Gas & Consumable Fuels          28,200          994,016  

 

           
224             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Japan (continued)                         
 

Cosmos Pharmaceutical Corp.

     Consumer Staples Distribution & Retail          6,840        $ 701,074  
 

Credit Saison Co. Ltd.

     Consumer Finance          56,400          895,937  
 

CyberAgent, Inc.

     Media          159,800          863,439  
 

Dai Nippon Printing Co. Ltd.

     Commercial Services & Supplies          94,000          2,450,394  
 

Daicel Corp.

     Chemicals          94,000          788,031  
 

Daido Steel Co. Ltd.

     Metals & Mining          12,200          497,157  
 

Daifuku Co. Ltd.

     Machinery          112,800          2,138,835  
 

Dai-ichi Life Holdings, Inc.

     Insurance          357,200          7,413,291  
 

Daiichi Sankyo Co. Ltd.

     Pharmaceuticals          705,000          19,398,425  
 

Daiichikosho Co. Ltd.

     Entertainment          28,200          458,740  
 

Daikin Industries Ltd.

     Building Products          99,868          15,710,513  
 

Daio Paper Corp.

     Paper & Forest Products          28,200          231,307  
 

Daito Trust Construction Co. Ltd.

     Real Estate Management & Development          24,168          2,550,819  
 

Daiwa House Industry Co. Ltd.

     Real Estate Management & Development          244,400          6,575,748  
 

Daiwa House REIT Investment Corp.

     Diversified REITs          752          1,329,386  
 

Daiwa Office Investment Corp.

     Office REITs          94          420,787  
 

Daiwa Securities Group, Inc.

     Capital Markets          535,800          3,099,005  
 

Daiwa Securities Living Investments Corp.

     Residential REITs          752          558,866  
 

DeNA Co. Ltd.

     Entertainment          28,200          283,937  
 

Denka Co. Ltd.

     Chemicals          28,200          510,803  
 

Denso Corp.

     Automobile Components          659,200          10,606,394  
 

Dentsu Group, Inc.

     Media          75,200          2,217,323  
 

Descente Ltd.

     Textiles, Apparel & Luxury Goods          18,800          539,843  
 

DIC Corp.

     Chemicals          28,200          458,929  
 

Disco Corp.

     Semiconductors & Semiconductor Equipment          31,452          5,813,008  
 

DMG Mori Co. Ltd.

     Machinery          37,600          640,756  
 

Dowa Holdings Co. Ltd.

     Metals & Mining          18,800          585,953  
 

East Japan Railway Co.

     Ground Transportation          135,820          7,786,498  
 

Ebara Corp.

     Machinery          37,600          1,766,047  
 

Eisai Co. Ltd.

     Pharmaceuticals          103,400          5,753,953  
 

Electric Power Development Co. Ltd.

     Independent Power Producers & Energy Traders          65,800          1,066,205  
 

ENEOS Holdings, Inc.

     Oil, Gas & Consumable Fuels          1,062,200          4,198,973  
 

EXEO Group, Inc.

     Construction & Engineering          37,600          772,031  
 

Ezaki Glico Co. Ltd.

     Food Products          18,800          517,165  
 

Fancl Corp.

     Personal Care Products          28,200          431,622  
 

FANUC Corp.

     Machinery          357,200          9,318,677  
 

Fast Retailing Co. Ltd.

     Specialty Retail          57,528          12,563,830  
 

Food & Life Cos. Ltd.

     Hotels, Restaurants & Leisure          37,600          633,449  
 

FP Corp.

     Containers & Packaging          18,800          302,677  
 

Frontier Real Estate Investment Corp.

     Retail REITs          188          576,378  
 

Fuji Electric Co. Ltd.

     Electrical Equipment          47,000          2,124,724  
 

Fuji Kyuko Co. Ltd.

     Hotels, Restaurants & Leisure          9,400          293,228  
 

Fuji Media Holdings, Inc.

     Media          18,800          201,827  
 

Fuji Oil Holdings, Inc.

     Food Products          18,800          285,669  
 

FUJIFILM Holdings Corp.

     Technology Hardware, Storage & Peripherals          131,600          7,635,402  
 

Fujikura Ltd.

     Electrical Equipment          103,400          832,535  
 

Fujitsu General Ltd.

     Household Durables          18,800          353,575  
 

Fujitsu Ltd.

     IT Services          66,940          7,895,085  
 

Fukuoka Financial Group, Inc.

     Banks          56,400          1,352,693  
 

Furukawa Electric Co. Ltd.

     Electrical Equipment          18,800          300,094  
 

Fuyo General Lease Co. Ltd.

     Financial Services          9,400          759,055  
 

GLP J-Reit

     Industrial REITs          1,786          1,600,189  
 

GMO internet group, Inc.

     IT Services          18,800          291,654  
 

GMO Payment Gateway, Inc.

     Financial Services          18,800          1,030,173  
 

Goldwin, Inc.

     Textiles, Apparel & Luxury Goods          13,480          915,981  
 

GS Yuasa Corp.

     Electrical Equipment          28,200          503,244  
 

GungHo Online Entertainment, Inc.

     Entertainment          9,400          148,693  

 

           
franklintempleton.com  

Semiannual Report

             225


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Japan (continued)                         
 

Hachijuni Bank Ltd.

     Banks          169,200        $ 935,320  
 

Hakuhodo DY Holdings, Inc.

     Media          84,600          697,039  
 

Hamamatsu Photonics KK

     Electronic Equipment, Instruments & Components          47,000          1,983,937  
 

Hankyu Hanshin Holdings, Inc.

     Ground Transportation          84,600          2,891,906  
 

Harmonic Drive Systems, Inc.

     Machinery          18,800          418,268  
 

Haseko Corp.

     Household Durables          94,000          1,201,260  
 

Heiwa Corp.

     Hotels, Restaurants & Leisure          18,800          270,236  
 

Hikari Tsushin, Inc.

     Industrial Conglomerates          9,400          1,434,646  
a  

Hino Motors Ltd.

     Machinery          103,400          395,584  
 

Hirogin Holdings, Inc.

     Banks          112,800          693,317  
 

Hirose Electric Co. Ltd.

     Electronic Equipment, Instruments & Components          12,060          1,399,760  
 

Hisamitsu Pharmaceutical Co., Inc.

     Pharmaceuticals          28,200          1,029,354  
 

Hitachi Construction Machinery Co. Ltd.

     Machinery          37,600          1,145,449  
 

Hitachi Ltd.

     Industrial Conglomerates          338,400          21,033,071  
 

Honda Motor Co. Ltd.

     Automobiles          1,861,200          20,978,646  
 

Horiba Ltd.

     Electronic Equipment, Instruments & Components          15,100          819,028  
 

Hoshizaki Corp.

     Machinery          47,000          1,636,220  
 

House Foods Group, Inc.

     Food Products          28,200          589,606  
 

Hoya Corp.

     Health Care Equipment & Supplies          127,440          13,087,740  
 

Hulic Co. Ltd.

     Real Estate Management & Development          159,800          1,436,031  
 

Ibiden Co. Ltd.

     Electronic Equipment, Instruments & Components          37,600          2,006,677  
 

Idemitsu Kosan Co. Ltd.

     Oil, Gas & Consumable Fuels          84,600          1,949,102  
 

IHI Corp.

     Machinery          47,000          987,402  
 

Iida Group Holdings Co. Ltd.

     Household Durables          56,400          939,780  
 

Industrial & Infrastructure Fund Investment Corp.

     Industrial REITs          752          696,441  
 

Information Services International-Dentsu Ltd.

     IT Services          9,400          360,315  
 

INFRONEER Holdings, Inc.

     Construction & Engineering          84,600          877,606  
 

Inpex Corp.

     Oil, Gas & Consumable Fuels          357,200          5,400,189  
 

Internet Initiative Japan, Inc.

     Diversified Telecommunication Services          37,600          609,134  
 

Invincible Investment Corp.

     Hotel & Resort REITs          2,538          1,051,087  
 

Isetan Mitsukoshi Holdings Ltd.

     Broadline Retail          131,600          1,526,992  
 

Isuzu Motors Ltd.

     Automobiles          197,400          2,487,591  
 

Ito En Ltd.

     Beverages          18,800          605,858  
 

ITOCHU Corp.

     Trading Companies & Distributors          498,200          18,048,378  
 

Itochu Techno-Solutions Corp.

     IT Services          18,800          543,370  
 

Itoham Yonekyu Holdings, Inc.

     Food Products          9,400          255,118  
 

Iwatani Corp.

     Oil, Gas & Consumable Fuels          18,800          949,291  
 

Iyogin Holdings, Inc.

     Banks          94,000          677,165  
 

Izumi Co. Ltd.

     Broadline Retail          18,800          498,772  
 

J Front Retailing Co. Ltd.

     Broadline Retail          94,000          963,150  
 

Japan Airlines Co. Ltd.

     Passenger Airlines          56,400          1,099,087  
 

Japan Airport Terminal Co. Ltd.

     Transportation Infrastructure          18,800          798,362  
 

Japan Aviation Electronics Industry Ltd.

     Electronic Equipment, Instruments & Components          18,800          375,055  
 

Japan Exchange Group, Inc.

     Capital Markets          197,400          3,669,543  
 

Japan Hotel REIT Investment Corp.

     Hotel & Resort REITs          1,692          885,543  
 

Japan Logistics Fund, Inc.

     Industrial REITs          376          730,457  
 

Japan Metropolitan Fund Invest

     Retail REITs          2,538          1,649,764  
 

Japan Post Bank Co. Ltd.

     Banks          545,200          4,753,260  
 

Japan Post Holdings Co. Ltd.

     Insurance          780,200          6,260,945  
 

Japan Post Insurance Co. Ltd.

     Insurance          75,200          1,270,173  
 

Japan Prime Realty Investment Corp.

     Office REITs          376          909,606  
 

Japan Real Estate Investment Corp.

     Office REITs          470          1,836,220  
 

Japan Steel Works Ltd.

     Machinery          18,800          349,858  
 

Japan Tobacco, Inc.

     Tobacco          441,800          10,184,567  
 

JCR Pharmaceuticals Co. Ltd.

     Pharmaceuticals          18,800          188,409  

 

           
226             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Japan (continued)                         
 

Jeol Ltd.

     Health Care Equipment & Supplies          18,800        $ 561,638  
 

JFE Holdings, Inc.

     Metals & Mining          206,800          3,036,346  
 

JGC Holdings Corp.

     Construction & Engineering          75,200          1,047,937  
 

JMDC, Inc.

     Health Care Technology          9,400          342,614  
 

JSR Corp.

     Chemicals          65,800          1,771,276  
 

JTEKT Corp.

     Automobile Components          84,600          799,937  
 

Justsystems Corp.

     Software          9,400          188,913  
 

Kadokawa Corp.

     Media          37,600          753,890  
 

Kagome Co. Ltd.

     Food Products          28,200          613,228  
 

Kajima Corp.

     Construction & Engineering          159,800          2,605,953  
 

Kakaku.com, Inc.

     Interactive Media & Services          47,000          477,795  
 

Kamigumi Co. Ltd.

     Transportation Infrastructure          37,600          776,063  
 

Kandenko Co. Ltd.

     Construction & Engineering          37,600          346,961  
 

Kaneka Corp.

     Chemicals          18,800          489,071  
 

Kansai Electric Power Co., Inc.

     Electric Utilities          272,600          3,795,118  
 

Kansai Paint Co. Ltd.

     Chemicals          65,800          942,520  
 

Kao Corp.

     Personal Care Products          169,200          6,294,047  
 

Katitas Co. Ltd.

     Real Estate Management & Development          18,800          274,394  
 

Kawasaki Heavy Industries Ltd.

     Machinery          56,400          1,368,189  
 

Kawasaki Kisen Kaisha Ltd.

     Marine Transportation          84,600          2,893,606  
 

KDDI Corp.

     Wireless Telecommunication Services          601,600          18,452,157  
 

Keihan Holdings Co. Ltd.

     Industrial Conglomerates          37,600          999,811  
 

Keikyu Corp.

     Ground Transportation          94,000          800,315  
 

Keio Corp.

     Ground Transportation          47,000          1,619,528  
 

Keisei Electric Railway Co. Ltd.

     Ground Transportation          56,400          1,957,795  
 

Kenedix Office Investment Corp.

     Office REITs          282          653,858  
 

Kewpie Corp.

     Food Products          37,600          605,606  
 

Keyence Corp.

     Electronic Equipment, Instruments & Components          73,719          27,417,688  
 

Kikkoman Corp.

     Food Products          65,800          3,458,772  
 

Kinden Corp.

     Construction & Engineering          47,000          685,354  
 

Kintetsu Group Holdings Co. Ltd.

     Ground Transportation          65,800          1,868,724  
 

Kirin Holdings Co. Ltd.

     Beverages          282,000          3,955,276  
 

Kobayashi Pharmaceutical Co. Ltd.

     Personal Care Products          22,380          1,001,082  
 

Kobe Bussan Co. Ltd.

     Consumer Staples Distribution & Retail          56,400          1,325,102  
 

Kobe Steel Ltd.

     Metals & Mining          122,200          1,596,031  
 

Koei Tecmo Holdings Co. Ltd.

     Entertainment          56,400          803,339  
 

Koito Manufacturing Co. Ltd.

     Automobile Components          85,640          1,295,002  
 

Kokuyo Co. Ltd.

     Commercial Services & Supplies          28,200          448,157  
 

Komatsu Ltd.

     Machinery          347,800          9,423,055  
 

Konami Group Corp.

     Entertainment          37,600          1,987,276  
a  

Konica Minolta, Inc.

     Technology Hardware, Storage & Peripherals          169,200          551,622  
 

Kose Corp.

     Personal Care Products          10,880          791,438  
 

Kotobuki Spirits Co. Ltd.

     Food Products          47,000          761,260  
 

K’s Holdings Corp.

     Specialty Retail          56,400          518,551  
 

Kubota Corp.

     Machinery          404,200          5,969,890  
 

Kuraray Co. Ltd.

     Chemicals          131,600          1,561,827  
 

Kurita Water Industries Ltd.

     Machinery          37,600          1,313,764  
 

Kusuri No. Aoki Holdings Co. Ltd.

     Consumer Staples Distribution & Retail          6,020          349,198  
 

Kyocera Corp.

     Electronic Equipment, Instruments & Components          113,500          5,770,645  
 

Kyowa Kirin Co. Ltd.

     Pharmaceuticals          94,000          1,640,315  
 

Kyudenko Corp.

     Construction & Engineering          18,800          590,362  
a  

Kyushu Electric Power Co., Inc.

     Electric Utilities          169,200          1,105,965  
 

Kyushu Financial Group, Inc.

     Banks          141,000          728,504  
 

Kyushu Railway Co.

     Ground Transportation          56,400          1,201,512  
 

LaSalle Logiport REIT

     Industrial REITs          658          632,315  
 

Lasertec Corp.

     Semiconductors & Semiconductor Equipment          28,200          4,397,480  
 

Lawson, Inc.

     Consumer Staples Distribution & Retail          18,800          865,764  

 

 

           
franklintempleton.com  

Semiannual Report

             227


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Japan (continued)                         
 

Lion Corp.

     Household Products          94,000        $ 929,764  
 

Lixil Corp.

     Building Products          94,000          1,097,008  
 

M3, Inc.

     Health Care Technology          154,372          2,809,679  
 

Mabuchi Motor Co. Ltd.

     Electrical Equipment          18,800          563,150  
 

Macnica Holdings, Inc.

     Electronic Equipment, Instruments & Components          18,800          885,669  
 

Makita Corp.

     Machinery          94,000          2,325,669  
 

Mani, Inc.

     Health Care Equipment & Supplies          18,800          228,535  
 

Marubeni Corp.

     Trading Companies & Distributors          573,400          8,960,756  
 

Marui Group Co. Ltd.

     Consumer Finance          65,800          1,071,496  
 

Maruichi Steel Tube Ltd.

     Metals & Mining          18,800          468,661  
 

Matsui Securities Co. Ltd.

     Capital Markets          37,600          206,866  
 

MatsukiyoCocokara & Co.

     Consumer Staples Distribution & Retail          141,000          2,532,756  
 

Mazda Motor Corp.

     Automobiles          216,200          2,457,921  
 

McDonald’s Holdings Co. Japan Ltd.

     Hotels, Restaurants & Leisure          28,200          1,079,055  
 

Mebuki Financial Group, Inc.

     Banks          376,000          1,042,394  
 

Medipal Holdings Corp.

     Health Care Providers & Services          56,400          955,276  
 

MEIJI Holdings Co. Ltd.

     Food Products          94,000          2,340,787  
 

Menicon Co. Ltd.

     Health Care Equipment & Supplies          18,800          242,394  
a  

Mercari, Inc.

     Broadline Retail          47,000          1,016,063  
 

MINEBEA MITSUMI, Inc.

     Machinery          150,400          2,460,724  
 

MISUMI Group, Inc.

     Machinery          103,400          1,618,992  
 

Mitsubishi Chemical Group Corp.

     Chemicals          479,400          3,028,517  
 

Mitsubishi Corp.

     Trading Companies & Distributors          432,400          20,654,362  
 

Mitsubishi Electric Corp.

     Electrical Equipment          733,200          9,084,850  
 

Mitsubishi Estate Co. Ltd.

     Real Estate Management & Development          413,600          5,418,583  
 

Mitsubishi Gas Chemical Co., Inc.

     Chemicals          65,800          887,402  
 

Mitsubishi HC Capital, Inc.

     Financial Services          235,000          1,568,504  
 

Mitsubishi Heavy Industries Ltd.

     Machinery          103,400          5,783,055  
 

Mitsubishi Logistics Corp.

     Transportation Infrastructure          18,800          500,409  
 

Mitsubishi Materials Corp.

     Metals & Mining          47,000          761,890  
 

Mitsubishi Motors Corp.

     Automobiles          235,000          1,025,827  
 

Mitsubishi UFJ Financial Group, Inc.

     Banks          4,371,000          37,156,063  
 

Mitsui & Co. Ltd.

     Trading Companies & Distributors          554,600          20,154,772  
 

Mitsui Chemicals, Inc.

     Chemicals          65,800          1,709,543  
 

Mitsui Fudosan Co. Ltd.

     Real Estate Management & Development          338,400          7,469,858  
 

Mitsui Fudosan Logistics Park, Inc.

     Industrial REITs          188          593,386  
 

Mitsui High-Tec, Inc.

     Semiconductors & Semiconductor Equipment          9,400          488,819  
 

Mitsui Mining & Smelting Co. Ltd.

     Metals & Mining          18,800          478,110  
 

Mitsui OSK Lines Ltd.

     Marine Transportation          122,200          3,365,669  
 

Miura Co. Ltd.

     Machinery          37,600          758,425  
 

Mizuho Financial Group, Inc.

     Banks          958,800          16,326,425  
a  

Money Forward, Inc.

     Software          18,800          604,976  
 

MonotaRO Co. Ltd.

     Trading Companies & Distributors          86,680          929,679  
 

Mori Hills REIT Investment Corp., Class C

     Office REITs          564          535,559  
 

Morinaga & Co. Ltd.

     Food Products          9,400          340,283  
 

Morinaga Milk Industry Co. Ltd.

     Food Products          18,800          708,913  
 

MS&AD Insurance Group Holdings, Inc.

     Insurance          169,200          6,230,551  
 

Murata Manufacturing Co. Ltd.

     Electronic Equipment, Instruments & Components          620,400          11,366,551  
 

Nabtesco Corp.

     Machinery          37,600          679,433  
 

Nagase & Co. Ltd.

     Trading Companies & Distributors          37,600          592,252  
 

Nagoya Railroad Co. Ltd.

     Ground Transportation          75,200          1,112,441  
 

Nankai Electric Railway Co. Ltd.

     Ground Transportation          37,600          731,339  
 

NEC Corp.

     IT Services          94,000          5,203,780  
 

NEC Networks & System Integration Corp.

     IT Services          28,200          371,150  
 

NET One Systems Co. Ltd.

     IT Services          28,200          536,315  
 

Nexon Co. Ltd.

     Entertainment          150,400          2,694,551  
 

NGK Insulators Ltd.

     Machinery          94,000          1,248,504  

 

           
228             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Japan (continued)                         
 

NH Foods Ltd.

     Food Products          37,600        $ 1,126,551  
 

NHK Spring Co. Ltd.

     Automobile Components          56,400          432,378  
 

Nichirei Corp.

     Food Products          37,600          827,717  
 

NIDEC Corp.

     Electrical Equipment          197,400          9,168,567  
 

Nifco, Inc.

     Automobile Components          28,200          731,150  
 

Nihon Kohden Corp.

     Health Care Equipment & Supplies          28,200          697,701  
 

Nihon M&A Center Holdings, Inc.

     Professional Services          103,400          498,551  
 

Nikon Corp.

     Household Durables          112,800          1,191,685  
 

Nintendo Co. Ltd.

     Entertainment          394,800          16,482,520  
 

Nippon Accommodations Fund, Inc.

     Residential REITs          188          794,961  
 

Nippon Building Fund, Inc.

     Office REITs          564          2,290,394  
 

Nippon Electric Glass Co. Ltd.

     Electronic Equipment, Instruments & Components          28,200          526,488  
 

Nippon Express Holdings, Inc.

     Air Freight & Logistics          28,200          1,474,583  
 

Nippon Kayaku Co. Ltd.

     Chemicals          56,400          472,252  
 

Nippon Paint Holdings Co. Ltd.

     Chemicals          376,000          2,534,803  
 

Nippon Prologis REIT, Inc.

     Industrial REITs          940          1,758,740  
 

Nippon Sanso Holdings Corp.

     Chemicals          56,400          1,339,843  
 

Nippon Shinyaku Co. Ltd.

     Pharmaceuticals          18,800          797,354  
 

Nippon Shokubai Co. Ltd.

     Chemicals          9,400          342,047  
 

Nippon Steel Corp.

     Metals & Mining          310,200          7,285,984  
 

Nippon Telegraph & Telephone Corp.

     Diversified Telecommunication Services          10,659,600          12,615,080  
 

Nippon Yusen KK

     Marine Transportation          179,270          4,668,408  
 

Nipro Corp.

     Health Care Equipment & Supplies          47,000          380,787  
 

Nishi-Nippon Railroad Co. Ltd.

     Ground Transportation          28,200          468,945  
 

Nissan Chemical Corp.

     Chemicals          48,760          2,077,834  
 

Nissan Motor Co. Ltd.

     Automobiles          723,800          3,202,715  
 

Nisshin Seifun Group, Inc.

     Food Products          94,000          1,200,315  
 

Nissin Foods Holdings Co. Ltd.

     Food Products          28,200          2,348,031  
 

Niterra Co. Ltd.

     Automobile Components          75,200          1,705,323  
 

Nitori Holdings Co. Ltd.

     Specialty Retail          28,200          3,157,795  
 

Nitto Denko Corp.

     Chemicals          56,400          3,706,961  
 

Noevir Holdings Co. Ltd.

     Personal Care Products          9,400          333,228  
 

NOF Corp.

     Chemicals          28,200          1,129,323  
 

NOK Corp.

     Automobile Components          37,600          500,283  
 

Nomura Holdings, Inc.

     Capital Markets          1,137,400          4,566,368  
 

Nomura Real Estate Holdings, Inc.

     Real Estate Management & Development          37,600          945,638  
 

Nomura Real Estate Master Fund, Inc.

     Diversified REITs          1,692          1,898,079  
 

Nomura Research Institute Ltd.

     IT Services          159,800          4,168,882  
 

NS Solutions Corp.

     IT Services          9,400          268,032  
 

NSK Ltd.

     Machinery          159,800          900,813  
 

NTT Data Group Corp.

     IT Services          235,000          3,156,693  
 

Obayashi Corp.

     Construction & Engineering          253,800          2,239,087  
 

OBIC Business Consultants Co. Ltd.

     Software          9,400          390,551  
 

Obic Co. Ltd.

     IT Services          25,040          3,806,550  
 

Odakyu Electric Railway Co. Ltd.

     Ground Transportation          112,800          1,689,071  
 

Oji Holdings Corp.

     Paper & Forest Products          329,000          1,386,772  
 

OKUMA Corp.

     Machinery          9,400          414,173  
 

Olympus Corp.

     Health Care Equipment & Supplies          460,600          5,992,661  
 

Omron Corp.

     Electronic Equipment, Instruments & Components          67,810          3,029,581  
 

Ono Pharmaceutical Co. Ltd.

     Pharmaceuticals          159,800          3,071,244  
 

Open House Group Co. Ltd.

     Household Durables          28,200          958,866  
 

Oracle Corp.

     Software          12,320          916,415  
 

Orient Corp.

     Consumer Finance          20,000          155,470  
 

Oriental Land Co. Ltd.

     Hotels, Restaurants & Leisure          347,800          11,441,449  
 

ORIX Corp.

     Financial Services          441,800          8,269,039  
 

Orix JREIT, Inc.

     Office REITs          940          1,130,079  
 

Osaka Gas Co. Ltd.

     Gas Utilities          150,400          2,481,386  

 

           
franklintempleton.com  

Semiannual Report

             229


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Japan (continued)                         
 

OSG Corp.

     Machinery          28,200        $ 332,976  
 

Otsuka Corp.

     IT Services          37,600          1,595,465  
 

Otsuka Holdings Co. Ltd.

     Pharmaceuticals          178,600          6,358,866  
 

PALTAC Corp.

     Distributors          9,400          295,433  
 

Pan Pacific International Holdings Corp.

     Broadline Retail          150,400          3,162,709  
 

Panasonic Holdings Corp.

     Household Durables          799,000          9,005,984  
a  

Park24 Co. Ltd.

     Commercial Services & Supplies          47,000          596,850  
 

Penta-Ocean Construction Co. Ltd.

     Construction & Engineering          103,400          616,139  
a  

PeptiDream, Inc.

     Biotechnology          33,700          363,818  
 

Persol Holdings Co. Ltd.

     Professional Services          658,000          1,073,260  
 

Pigeon Corp.

     Household Products          37,600          425,449  
 

Pola Orbis Holdings, Inc.

     Personal Care Products          28,200          339,496  
 

Rakus Co. Ltd.

     Software          37,600          519,685  
 

Rakuten Group, Inc.

     Broadline Retail          413,600          1,699,301  
 

Recruit Holdings Co. Ltd.

     Professional Services          498,200          15,387,528  
 

Relo Group, Inc.

     Real Estate Management & Development          37,600          407,811  
a  

Renesas Electronics Corp.

     Semiconductors & Semiconductor Equipment          451,200          6,910,488  
 

Rengo Co. Ltd.

     Containers & Packaging          75,200          517,039  
 

Resona Holdings, Inc.

     Banks          799,000          4,434,992  
 

Resonac Holdings Corp.

     Chemicals          65,800          1,104,567  
 

Resorttrust, Inc.

     Hotels, Restaurants & Leisure          18,800          281,386  
 

Ricoh Co. Ltd.

     Technology Hardware, Storage & Peripherals          216,200          1,869,701  
 

Rinnai Corp.

     Household Durables          37,600          705,512  
 

Rohm Co. Ltd.

     Semiconductors & Semiconductor Equipment          123,840          2,337,794  
 

Rohto Pharmaceutical Co. Ltd.

     Personal Care Products          75,200          2,043,465  
 

Ryohin Keikaku Co. Ltd.

     Broadline Retail          94,000          1,219,213  
 

Sanken Electric Co. Ltd.

     Semiconductors & Semiconductor Equipment          9,400          571,339  
 

Sankyo Co. Ltd.

     Leisure Products          18,800          863,496  
 

Sankyu, Inc.

     Air Freight & Logistics          18,800          651,465  
 

Sanrio Co. Ltd.

     Specialty Retail          18,800          894,488  
 

Santen Pharmaceutical Co. Ltd.

     Pharmaceuticals          122,200          1,124,756  
 

Sanwa Holdings Corp.

     Building Products          65,800          876,598  
 

Sapporo Holdings Ltd.

     Beverages          18,800          599,307  
 

Sawai Group Holdings Co. Ltd.

     Pharmaceuticals          9,400          288,378  
 

SBI Holdings, Inc.

     Capital Markets          94,000          1,982,992  
 

SCREEN Holdings Co. Ltd.

     Semiconductors & Semiconductor Equipment          30,200          1,473,521  
 

SCSK Corp.

     IT Services          47,000          821,732  
 

Secom Co. Ltd.

     Commercial Services & Supplies          75,200          5,109,921  
 

Sega Sammy Holdings, Inc.

     Leisure Products          56,400          1,042,772  
 

Seibu Holdings, Inc.

     Ground Transportation          75,200          725,165  
 

Seiko Epson Corp.

     Technology Hardware, Storage & Peripherals          94,000          1,480,000  
 

Seino Holdings Co. Ltd.

     Ground Transportation          47,000          660,000  
 

Sekisui Chemical Co. Ltd.

     Household Durables          122,200          1,763,087  
 

Sekisui House Ltd.

     Household Durables          206,800          4,125,606  
 

Sekisui House Reit, Inc.

     Diversified REITs          1,504          839,559  
 

Seven & i Holdings Co. Ltd.

     Consumer Staples Distribution & Retail          291,400          11,433,386  
 

Seven Bank Ltd.

     Banks          244,400          509,191  
 

SG Holdings Co. Ltd.

     Air Freight & Logistics          159,800          2,050,709  
a,b  

Sharp Corp.

     Household Durables          75,200          469,669  
a  

SHIFT, Inc.

     IT Services          4,300          786,953  
 

Shikoku Electric Power Co., Inc.

     Electric Utilities          56,400          386,835  
 

Shimadzu Corp.

     Electronic Equipment, Instruments & Components          103,400          2,752,252  
 

Shimamura Co. Ltd.

     Specialty Retail          9,400          930,394  
 

Shimano, Inc.

     Leisure Products          28,200          3,810,709  
 

Shimizu Corp.

     Construction & Engineering          197,400          1,375,087  
 

Shin-Etsu Chemical Co. Ltd.

     Chemicals          727,400          21,170,033  
 

Shinko Electric Industries Co. Ltd.

     Semiconductors & Semiconductor Equipment          28,200          1,100,409  

 

           
230             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Japan (continued)                         
 

Shionogi & Co. Ltd.

     Pharmaceuticals          103,400        $ 4,632,819  
 

Ship Healthcare Holdings, Inc.

     Health Care Providers & Services          28,200          428,693  
 

Shiseido Co. Ltd.

     Personal Care Products          145,900          5,133,021  
 

Shizuoka Financial Group, Inc.

     Banks          178,600          1,458,961  
 

SHO-BOND Holdings Co. Ltd.

     Construction & Engineering          18,800          740,283  
a  

Skylark Holdings Co. Ltd.

     Hotels, Restaurants & Leisure          84,600          1,159,087  
 

SMC Corp.

     Machinery          20,894          9,378,322  
 

SMS Co. Ltd.

     Professional Services          18,800          320,693  
 

Socionext, Inc.

     Semiconductors & Semiconductor Equipment          13,400          1,327,204  
 

SoftBank Corp.

     Wireless Telecommunication Services          1,034,000          11,713,701  
 

SoftBank Group Corp.

     Wireless Telecommunication Services          361,300          15,338,150  
 

Sohgo Security Services Co. Ltd.

     Commercial Services & Supplies          122,200          738,809  
 

Sojitz Corp.

     Trading Companies & Distributors          86,820          1,907,160  
 

Sompo Holdings, Inc.

     Insurance          112,800          4,862,740  
 

Sony Group Corp.

     Household Durables          464,400          38,091,848  
 

Sotetsu Holdings, Inc.

     Ground Transportation          28,200          555,780  
 

Square Enix Holdings Co. Ltd.

     Entertainment          28,200          968,504  
 

Stanley Electric Co. Ltd.

     Automobile Components          56,400          892,913  
 

Subaru Corp.

     Automobiles          225,600          4,393,323  
 

Sugi Holdings Co. Ltd.

     Consumer Staples Distribution & Retail          13,120          522,338  
 

SUMCO Corp.

     Semiconductors & Semiconductor Equipment          122,200          1,596,031  
 

Sumitomo Bakelite Co. Ltd.

     Chemicals          9,400          410,898  
 

Sumitomo Chemical Co. Ltd.

     Chemicals          564,000          1,538,268  
 

Sumitomo Corp.

     Trading Companies & Distributors          413,600          8,270,614  
 

Sumitomo Electric Industries Ltd.

     Automobile Components          282,000          3,404,409  
 

Sumitomo Forestry Co. Ltd.

     Household Durables          56,400          1,438,488  
 

Sumitomo Heavy Industries Ltd.

     Machinery          37,600          955,465  
 

Sumitomo Metal Mining Co. Ltd.

     Metals & Mining          94,000          2,771,024  
 

Sumitomo Mitsui Financial Group, Inc.

     Banks          479,400          23,602,961  
 

Sumitomo Mitsui Trust Holdings, Inc.

     Banks          131,600          4,965,921  
 

Sumitomo Pharma Co. Ltd.

     Pharmaceuticals          65,800          236,214  
 

Sumitomo Realty & Development Co. Ltd.

     Real Estate Management & Development          150,400          3,916,598  
 

Sumitomo Rubber Industries Ltd.

     Automobile Components          65,800          728,000  
 

Sundrug Co. Ltd.

     Consumer Staples Distribution & Retail          24,940          677,713  
 

Suntory Beverage & Food Ltd.

     Beverages          47,000          1,433,071  
 

Suzuken Co. Ltd.

     Health Care Providers & Services          28,200          873,827  
 

Suzuki Motor Corp.

     Automobiles          169,200          6,821,291  
 

Sysmex Corp.

     Health Care Equipment & Supplies          71,540          3,419,634  
 

T&D Holdings, Inc.

     Insurance          188,000          3,109,291  
 

Taiheiyo Cement Corp.

     Construction Materials          47,000          834,646  
 

Taisei Corp.

     Construction & Engineering          65,800          2,319,811  
 

Taisho Pharmaceutical Holdings Co. Ltd.

     Pharmaceuticals          18,800          776,441  
 

Taiyo Yuden Co. Ltd.

     Electronic Equipment, Instruments & Components          47,000          1,275,276  
 

Takara Bio, Inc.

     Biotechnology          18,800          174,236  
 

Takara Holdings, Inc.

     Beverages          65,800          529,575  
 

Takashimaya Co. Ltd.

     Broadline Retail          47,000          689,134  
 

Takeda Pharmaceutical Co. Ltd.

     Pharmaceuticals          573,400          17,833,134  
 

TBS Holdings, Inc.

     Media          9,400          158,394  
 

TDK Corp.

     Electronic Equipment, Instruments & Components          133,800          4,969,138  
 

TechnoPro Holdings, Inc.

     Professional Services          38,760          844,941  
 

Teijin Ltd.

     Chemicals          65,800          640,693  
 

Terumo Corp.

     Health Care Equipment & Supplies          244,400          6,490,583  
 

THK Co. Ltd.

     Machinery          47,000          860,945  
 

TIS, Inc.

     IT Services          84,600          1,866,898  
 

Tobu Railway Co. Ltd.

     Ground Transportation          75,200          1,936,126  
 

Toda Corp.

     Construction & Engineering          84,600          458,986  
 

Toei Animation Co. Ltd.

     Entertainment          1,500          132,887  

 

           
franklintempleton.com  

Semiannual Report

             231


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Japan (continued)                         
 

Toho Co. Ltd.

     Entertainment          37,600        $ 1,285,543  
 

Toho Gas Co. Ltd.

     Gas Utilities          37,600          657,008  
 

Tohoku Electric Power Co., Inc.

     Electric Utilities          178,600          1,158,072  
 

Tokai Carbon Co. Ltd.

     Chemicals          75,200          590,110  
 

Tokio Marine Holdings, Inc.

     Insurance          695,600          16,151,811  
 

Tokyo Century Corp.

     Financial Services          28,200          1,127,433  
a  

Tokyo Electric Power Co. Holdings, Inc.

     Electric Utilities          582,800          2,612,006  
 

Tokyo Electron Ltd.

     Semiconductors & Semiconductor Equipment          166,484          22,804,041  
 

Tokyo Gas Co. Ltd.

     Gas Utilities          150,400          3,417,701  
 

Tokyo Ohka Kogyo Co. Ltd.

     Chemicals          12,500          745,183  
 

Tokyo Seimitsu Co. Ltd.

     Semiconductors & Semiconductor Equipment          18,800          943,622  
 

Tokyo Tatemono Co. Ltd.

     Real Estate Management & Development          75,200          1,042,142  
 

Tokyu Corp.

     Ground Transportation          216,200          2,497,764  
 

Tokyu Fudosan Holdings Corp.

     Real Estate Management & Development          225,600          1,389,354  
 

TOPPAN, Inc.

     Commercial Services & Supplies          103,400          2,477,165  
 

Toray Industries, Inc.

     Chemicals          564,000          2,940,472  
a  

Toshiba Corp.

     Industrial Conglomerates          28,200          869,858  
 

Toshiba TEC Corp.

     Technology Hardware, Storage & Peripherals          9,400          215,118  
 

Tosoh Corp.

     Chemicals          103,400          1,329,008  
 

TOTO Ltd.

     Building Products          56,400          1,460,031  
 

Toyo Seikan Group Holdings Ltd.

     Containers & Packaging          56,400          925,039  
 

Toyo Suisan Kaisha Ltd.

     Food Products          37,600          1,477,795  
 

Toyo Tire Corp.

     Automobile Components          37,600          580,031  
 

Toyoda Gosei Co. Ltd.

     Automobile Components          28,200          606,992  
 

Toyota Boshoku Corp.

     Automobile Components          18,800          343,433  
 

Toyota Industries Corp.

     Machinery          60,400          4,766,024  
 

Toyota Motor Corp.

     Automobiles          4,502,600          80,788,819  
 

Toyota Tsusho Corp.

     Trading Companies & Distributors          84,600          4,986,142  
 

Trend Micro, Inc.

     Software          47,000          1,785,197  
 

TS Tech Co. Ltd.

     Automobile Components          37,600          427,339  
 

Tsumura & Co.

     Pharmaceuticals          28,200          525,354  
 

Tsuruha Holdings, Inc.

     Consumer Staples Distribution & Retail          13,750          925,574  
 

UBE Corp.

     Chemicals          37,600          635,339  
 

Ulvac, Inc.

     Semiconductors & Semiconductor Equipment          18,800          679,685  
 

Unicharm Corp.

     Household Products          141,000          4,999,370  
 

United Urban Investment Corp.

     Diversified REITs          1,128          1,176,945  
 

Ushio, Inc.

     Electrical Equipment          37,600          457,701  
 

USS Co. Ltd.

     Specialty Retail          75,200          1,245,984  
 

Welcia Holdings Co. Ltd.

     Consumer Staples Distribution & Retail          37,600          650,961  
 

West Japan Railway Co.

     Ground Transportation          84,600          3,506,457  
 

Workman Co. Ltd.

     Specialty Retail          18,800          572,598  
 

Yakult Honsha Co. Ltd.

     Food Products          94,000          2,288,504  
 

Yamada Holdings Co. Ltd.

     Specialty Retail          197,400          607,843  
 

Yamaguchi Financial Group, Inc.

     Banks          75,200          660,409  
 

Yamaha Corp.

     Leisure Products          56,400          1,544,315  
 

Yamaha Motor Co. Ltd.

     Automobiles          112,800          2,971,465  
 

Yamato Holdings Co. Ltd.

     Air Freight & Logistics          122,200          1,994,016  
 

Yamato Kogyo Co. Ltd.

     Metals & Mining          9,400          450,142  
 

Yamazaki Baking Co. Ltd.

     Food Products          47,000          865,512  
 

Yaoko Co. Ltd.

     Consumer Staples Distribution & Retail          9,400          484,346  
 

Yaskawa Electric Corp.

     Machinery          94,000          3,398,425  
 

Yokogawa Electric Corp.

     Electronic Equipment, Instruments & Components          94,000          1,819,528  
 

Yokohama Rubber Co. Ltd.

     Automobile Components          47,000          980,157  
 

Z Holdings Corp.

     Interactive Media & Services          977,600          2,722,016  
 

Zenkoku Hosho Co. Ltd.

     Financial Services          18,800          618,709  
 

Zensho Holdings Co. Ltd.

     Hotels, Restaurants & Leisure          37,600          1,637,291  
 

Zeon Corp.

     Chemicals          56,400          590,740  

 

           
232             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Japan (continued)                         
 

ZOZO, Inc.

     Specialty Retail          37,600        $ 691,024  
              

 

 

 
 

Total Common Stocks (Cost $1,553,806,149)

 

       1,481,774,396  
              

 

 

 
 

Total Investments before Short-Term Investments
(Cost $1,553,806,149)

               1,481,774,396  
              

 

 

 
    Short-Term Investments 0.1%                         
 

Investments from Cash Collateral Received for Loaned
Securities 0.1%

 

    
    United States 0.1%                         
c.d  

Institutional Fiduciary Trust - Money Market Portfolio, 5.15%

     Money Market Funds          934,680          934,680  
              

 

 

 
    Money Market Funds 0.0%                         
    United States 0.0%                         
c.d  

Institutional Fiduciary Trust - Money Market Portfolio, 5.15%

     Money Market Funds          8,156          8,156  
              

 

 

 
 

Total Short-Term Investments (Cost $942,836)

               942,836  
              

 

 

 
 

Total Investments (Cost $1,554,748,985) 99.2%

 

       1,482,717,232  
 

Other Assets, less Liabilities 0.8%

               12,031,094  
              

 

 

 
 

Net Assets 100.0%

             $ 1,494,748,326  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bA portion or all of the security is on loan at September 30, 2023 Note 1(c).

cThe rate shown is the annualized seven-day effective yield at period end.

dSee Note 3(c) regarding investments in affiliated management investment companies.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts  
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts                                   

NIKKEI 225 (OSE) DEC23

     Long        55      $ 11,742,670        12/07/23        $(104,623)  

*As of period end.

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             233


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Japan Hedged ETF

 

   

Six Months Ended

September 30, 2023

(unaudited)

     Year Ended March 31,  
      2023      2022      2021      2020      2019  

Per share operating performance

(for a share outstanding throughout the period)

                

Net asset value, beginning of period

    $26.57        $30.90        $30.70        $21.35        $23.12        $25.11  
 

 

 

 
Income from investment operationsa:                 

Net investment incomeb

    0.46        0.58        0.68        0.88        0.38        0.38  

Net realized and unrealized gains (losses)

    4.89        1.56        (0.08      8.47        (2.15      (1.11
 

 

 

 

Total from investment operations

    5.35        2.14        0.60        9.35        (1.77      (0.73
 

 

 

 
Less distributions from:                 

Net investment income

    (0.32      (0.92      (0.40                    (0.01

Net realized gains

           (5.55                           (1.25
 

 

 

 

Total distributions

    (0.32      (6.47)        (0.40)                      (1.26
 

 

 

 

Net asset value, end of period

    $31.60        $26.57        $30.90        $30.70        $21.35        $23.12  
 

 

 

 

Total returnc

    20.21%        8.15%        1.93%        43.84%        (7.66)%        (2.59)%  
Ratios to average net assetsd                 

Expenses before waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Expenses net of waiver and payments by affiliates

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    3.03%        1.99%        2.22%        3.29%        1.59%        1.51%  
Supplemental data                 

Net assets, end of period (000’s)

    $249,663        $13,284        $24,720        $24,563        $4,269        $13,870  

Portfolio turnover ratee

    6.41%f        31.96%f        5.46%f        6.31%f        10.06%f        19.78%  

 

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

 

bBased on average daily shares outstanding.

 

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

 

dRatios are annualized for periods less than one year.

 

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     6.41%        31.39%        5.03%        6.31%        10.06%         

 

           
234             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Japan Hedged ETF

 

           Industry            Shares                Value  
 

Common Stocks 99.0%

 

    Japan 99.0%                         
 

ABC-Mart, Inc.

     Specialty Retail          4,857        $ 87,489  
 

Acom Co. Ltd.

     Consumer Finance          23,700          55,397  
 

Activia Properties, Inc.

     Diversified REITs          46          127,157  
 

Advance Residence Investment Corp.

     Residential REITs          79          179,467  
 

Advantest Corp.

     Semiconductors & Semiconductor Equipment          46,264          1,296,229  
 

Aeon Co. Ltd.

     Consumer Staples Distribution & Retail          44,544          884,313  
 

AEON Financial Service Co. Ltd.

     Consumer Finance          7,257          62,661  
 

Aeon Mall Co. Ltd.

     Real Estate Management & Development          7,410          87,396  
 

AEON REIT Investment Corp.

     Retail REITs          111          108,973  
 

AGC, Inc.

     Building Products          11,223          394,394  
 

Aica Kogyo Co. Ltd.

     Chemicals          3,223          72,073  
 

Ain Holdings, Inc.

     Consumer Staples Distribution & Retail          1,780          52,604  
 

Air Water, Inc.

     Chemicals          11,107          138,665  
 

Aisin Corp.

     Automobile Components          10,811          409,329  
 

Ajinomoto Co., Inc.

     Food Products          28,911          1,116,723  
 

Alfresa Holdings Corp.

     Health Care Providers & Services          10,158          167,116  
 

Alps Alpine Co. Ltd.

     Electronic Equipment, Instruments & Components          12,476          108,478  
 

Amada Co. Ltd.

     Machinery          19,407          195,663  
 

Amano Corp.

     Electronic Equipment, Instruments & Components          4,093          90,020  
 

Amvis Holdings, Inc.

     Health Care Providers & Services          1,380          24,072  
a  

ANA Holdings, Inc.

     Passenger Airlines          9,822          206,214  
 

Anritsu Corp.

     Electronic Equipment, Instruments & Components          8,400          60,090  
 

Aozora Bank Ltd.

     Banks          7,072          144,781  
 

Ariake Japan Co. Ltd.

     Food Products          1,048          35,634  
 

As One Corp.

     Health Care Providers & Services          1,501          54,920  
 

Asahi Group Holdings Ltd.

     Beverages          30,471          1,141,450  
 

Asahi Intecc Co. Ltd.

     Health Care Equipment & Supplies          12,245          220,570  
 

Asahi Kasei Corp.

     Chemicals          77,500          488,137  
 

Asics Corp.

     Textiles, Apparel & Luxury Goods          10,669          373,424  
 

ASKUL Corp.

     Broadline Retail          2,370          31,129  
 

Astellas Pharma, Inc.

     Pharmaceuticals          112,900          1,569,138  
 

Azbil Corp.

     Electronic Equipment, Instruments & Components          7,905          242,514  
 

AZ-COM MARUWA Holdings, Inc.

     Air Freight & Logistics          2,449          34,924  
 

Bandai Namco Holdings, Inc.

     Leisure Products          36,763          749,426  
a  

Bank of Kyoto Ltd.

     Banks          4,334          244,632  
 

BayCurrent Consulting, Inc.

     Professional Services          8,400          281,342  
 

Benefit One, Inc.

     Professional Services          3,559          25,794  
 

Benesse Holdings, Inc.

     Diversified Consumer Services          4,487          55,011  
 

Bic Camera, Inc.

     Specialty Retail          9,100          67,263  
 

BIPROGY, Inc.

     IT Services          3,992          99,890  
 

Bridgestone Corp.

     Automobile Components          35,191          1,374,624  
 

Brother Industries Ltd.

     Technology Hardware, Storage & Peripherals          14,546          234,773  
 

Calbee, Inc.

     Food Products          4,387          83,609  
 

Canon Marketing Japan, Inc.

     Electronic Equipment, Instruments & Components          2,894          75,189  
 

Canon, Inc.

     Technology Hardware, Storage & Peripherals          59,648          1,440,985  
 

Capcom Co. Ltd.

     Entertainment          11,143          402,111  
 

Casio Computer Co. Ltd.

     Household Durables          12,840          107,857  
 

Central Japan Railway Co.

     Ground Transportation          56,865          1,385,185  
 

Chiba Bank Ltd.

     Banks          37,360          272,267  
 

Chubu Electric Power Co., Inc.

     Electric Utilities          43,770          559,353  
 

Chugai Pharmaceutical Co. Ltd.

     Pharmaceuticals          40,792          1,264,012  
 

Chugin Financial Group, Inc.

     Banks          10,100          75,568  
 

Chugoku Electric Power Co., Inc.

     Electric Utilities          18,880          116,411  
 

Coca-Cola Bottlers Japan Holdings, Inc.

     Beverages          8,800          115,938  
 

COMSYS Holdings Corp.

     Construction & Engineering          6,766          141,736  
 

Concordia Financial Group Ltd.

     Banks          67,900          310,094  
 

Cosmo Energy Holdings Co. Ltd.

     Oil, Gas & Consumable Fuels          5,134          180,967  

 

           
franklintempleton.com  

Semiannual Report

             235


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    Japan (continued)                         
 

Cosmos Pharmaceutical Corp.

     Consumer Staples Distribution & Retail          1,134        $ 116,231  
 

Credit Saison Co. Ltd.

     Consumer Finance          10,177          161,666  
 

CyberAgent, Inc.

     Media          26,200          141,565  
 

Dai Nippon Printing Co. Ltd.

     Commercial Services & Supplies          15,800          411,875  
 

Daicel Corp.

     Chemicals          15,800          132,456  
 

Daido Steel Co. Ltd.

     Metals & Mining          2,154          87,777  
 

Daifuku Co. Ltd.

     Machinery          18,225          345,570  
 

Dai-ichi Life Holdings, Inc.

     Insurance          59,000          1,224,480  
 

Daiichi Sankyo Co. Ltd.

     Pharmaceuticals          118,000          3,246,829  
 

Daiichikosho Co. Ltd.

     Entertainment          4,914          79,938  
 

Daikin Industries Ltd.

     Building Products          16,600          2,611,392  
 

Daio Paper Corp.

     Paper & Forest Products          4,977          40,823  
 

Daito Trust Construction Co. Ltd.

     Real Estate Management & Development          4,079          430,519  
 

Daiwa House Industry Co. Ltd.

     Real Estate Management & Development          40,397          1,086,909  
 

Daiwa House REIT Investment Corp.

     Diversified REITs          133          235,117  
 

Daiwa Office Investment Corp.

     Office REITs          17          76,100  
 

Daiwa Securities Group, Inc.

     Capital Markets          89,700          518,814  
 

Daiwa Securities Living Investments Corp.

     Residential REITs          126          93,640  
 

DeNA Co. Ltd.

     Entertainment          5,240          52,760  
 

Denka Co. Ltd.

     Chemicals          5,442          98,574  
 

Denso Corp.

     Automobile Components          110,600          1,779,532  
 

Dentsu Group, Inc.

     Media          12,881          379,805  
 

Descente Ltd.

     Textiles, Apparel & Luxury Goods          2,412          69,261  
 

DIC Corp.

     Chemicals          5,119          83,307  
 

Disco Corp.

     Semiconductors & Semiconductor Equipment          5,243          969,020  
 

DMG Mori Co. Ltd.

     Machinery          6,462          110,121  
 

Dowa Holdings Co. Ltd.

     Metals & Mining          2,820          87,893  
 

East Japan Railway Co.

     Ground Transportation          22,609          1,296,163  
 

Ebara Corp.

     Machinery          5,708          268,101  
 

Eisai Co. Ltd.

     Pharmaceuticals          16,600          923,749  
 

Electric Power Development Co. Ltd.

     Independent Power Producers & Energy Traders          10,370          168,033  
 

ENEOS Holdings, Inc.

     Oil, Gas & Consumable Fuels          176,100          696,139  
 

EXEO Group, Inc.

     Construction & Engineering          6,146          126,194  
 

Ezaki Glico Co. Ltd.

     Food Products          3,123          85,910  
 

Fancl Corp.

     Personal Care Products          4,228          64,713  
 

FANUC Corp.

     Machinery          59,900          1,562,679  
 

Fast Retailing Co. Ltd.

     Specialty Retail          9,672          2,112,317  
 

Food & Life Cos. Ltd.

     Hotels, Restaurants & Leisure          6,378          107,450  
 

FP Corp.

     Containers & Packaging          2,668          42,954  
 

Frontier Real Estate Investment Corp.

     Retail REITs          30          91,975  
 

Fuji Electric Co. Ltd.

     Electrical Equipment          7,900          357,135  
 

Fuji Kyuko Co. Ltd.

     Hotels, Restaurants & Leisure          1,443          45,014  
 

Fuji Media Holdings, Inc.

     Media          2,586          27,762  
 

Fuji Oil Holdings, Inc.

     Food Products          2,686          40,814  
 

FUJIFILM Holdings Corp.

     Technology Hardware, Storage & Peripherals          22,272          1,292,216  
 

Fujikura Ltd.

     Electrical Equipment          16,600          133,657  
 

Fujitsu General Ltd.

     Household Durables          3,439          64,678  
 

Fujitsu Ltd.

     IT Services          11,156          1,315,769  
 

Fukuoka Financial Group, Inc.

     Banks          10,026          240,463  
 

Furukawa Electric Co. Ltd.

     Electrical Equipment          3,834          61,200  
 

Fuyo General Lease Co. Ltd.

     Financial Services          1,185          95,689  
 

GLP J-Reit

     Industrial REITs          292          261,621  
 

GMO internet group, Inc.

     IT Services          3,576          55,476  
 

GMO Payment Gateway, Inc.

     Financial Services          2,566          140,608  
 

Goldwin, Inc.

     Textiles, Apparel & Luxury Goods          2,233          151,735  
 

GS Yuasa Corp.

     Electrical Equipment          4,703          83,928  
 

GungHo Online Entertainment, Inc.

     Entertainment          1,875          29,659  

 

           
236             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    Japan (continued)                         
 

Hachijuni Bank Ltd.

     Banks          31,600        $ 174,681  
 

Hakuhodo DY Holdings, Inc.

     Media          14,720          121,282  
 

Hamamatsu Photonics KK

     Electronic Equipment, Instruments & Components          7,900          333,470  
 

Hankyu Hanshin Holdings, Inc.

     Ground Transportation          13,613          465,337  
 

Harmonic Drive Systems, Inc.

     Machinery          3,001          66,767  
 

Haseko Corp.

     Household Durables          16,105          205,812  
 

Heiwa Corp.

     Hotels, Restaurants & Leisure          3,323          47,766  
 

Hikari Tsushin, Inc.

     Industrial Conglomerates          1,377          210,160  
a  

Hino Motors Ltd.

     Machinery          16,800          64,273  
 

Hirogin Holdings, Inc.

     Banks          17,800          109,406  
 

Hirose Electric Co. Ltd.

     Electronic Equipment, Instruments & Components          1,947          225,981  
 

Hisamitsu Pharmaceutical Co., Inc.

     Pharmaceuticals          4,158          151,775  
 

Hitachi Construction Machinery Co. Ltd.

     Machinery          6,620          201,672  
 

Hitachi Ltd.

     Industrial Conglomerates          56,336          3,501,534  
 

Honda Motor Co. Ltd.

     Automobiles          309,393          3,487,345  
 

Horiba Ltd.

     Electronic Equipment, Instruments & Components          2,370          128,549  
 

Hoshizaki Corp.

     Machinery          7,123          247,974  
 

House Foods Group, Inc.

     Food Products          4,387          91,723  
 

Hoya Corp.

     Health Care Equipment & Supplies          21,440          2,201,829  
 

Hulic Co. Ltd.

     Real Estate Management & Development          25,900          232,749  
 

Ibiden Co. Ltd.

     Electronic Equipment, Instruments & Components          6,723          358,800  
 

Idemitsu Kosan Co. Ltd.

     Oil, Gas & Consumable Fuels          14,113          325,150  
 

IHI Corp.

     Machinery          7,900          165,967  
 

Iida Group Holdings Co. Ltd.

     Household Durables          8,700          144,966  
 

Industrial & Infrastructure Fund Investment Corp.

     Industrial REITs          119          110,208  
 

Information Services International-Dentsu Ltd.

     IT Services          1,443          55,312  
 

INFRONEER Holdings, Inc.

     Construction & Engineering          13,793          143,083  
 

Inpex Corp.

     Oil, Gas & Consumable Fuels          58,600          885,921  
 

Internet Initiative Japan, Inc.

     Diversified Telecommunication Services          6,582          106,631  
 

Invincible Investment Corp.

     Hotel & Resort REITs          421          174,353  
 

Isetan Mitsukoshi Holdings Ltd.

     Broadline Retail          21,940          254,576  
 

Isuzu Motors Ltd.

     Automobiles          32,300          407,037  
 

Ito En Ltd.

     Beverages          3,497          112,696  
 

ITOCHU Corp.

     Trading Companies & Distributors          83,200          3,014,101  
 

Itochu Techno-Solutions Corp.

     IT Services          2,788          80,581  
 

Itoham Yonekyu Holdings, Inc.

     Food Products          1,580          42,882  
 

Iwatani Corp.

     Oil, Gas & Consumable Fuels          3,148          158,956  
 

Iyogin Holdings, Inc.

     Banks          15,800          113,821  
 

Izumi Co. Ltd.

     Broadline Retail          2,491          66,087  
 

J Front Retailing Co. Ltd.

     Broadline Retail          15,800          161,891  
 

Japan Airlines Co. Ltd.

     Passenger Airlines          9,200          179,284  
 

Japan Airport Terminal Co. Ltd.

     Transportation Infrastructure          3,360          142,686  
 

Japan Aviation Electronics Industry Ltd.

     Electronic Equipment, Instruments & Components          2,686          53,585  
 

Japan Exchange Group, Inc.

     Capital Markets          32,826          610,215  
 

Japan Hotel REIT Investment Corp.

     Hotel & Resort REITs          281          147,067  
 

Japan Logistics Fund, Inc.

     Industrial REITs          55          106,849  
 

Japan Metropolitan Fund Invest

     Retail REITs          431          280,161  
 

Japan Post Bank Co. Ltd.

     Banks          90,775          791,411  
 

Japan Post Holdings Co. Ltd.

     Insurance          130,500          1,047,236  
 

Japan Post Insurance Co. Ltd.

     Insurance          11,842          200,018  
 

Japan Prime Realty Investment Corp.

     Office REITs          58          140,312  
 

Japan Real Estate Investment Corp.

     Office REITs          84          328,176  
 

Japan Steel Works Ltd.

     Machinery          3,895          72,484  
 

Japan Tobacco, Inc.

     Tobacco          74,368          1,714,364  
 

JCR Pharmaceuticals Co. Ltd.

     Pharmaceuticals          3,560          35,678  
 

Jeol Ltd.

     Health Care Equipment & Supplies          2,628          78,510  

 

           
franklintempleton.com  

Semiannual Report

             237


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    Japan (continued)                         
 

JFE Holdings, Inc.

     Metals & Mining          35,600        $ 522,698  
 

JGC Holdings Corp.

     Construction & Engineering          13,240          184,504  
 

JMDC, Inc.

     Health Care Technology          1,917          69,871  
 

JSR Corp.

     Chemicals          11,002          296,164  
 

JTEKT Corp.

     Automobile Components          14,130          133,606  
 

Justsystems Corp.

     Software          2,175          43,711  
 

Kadokawa Corp.

     Media          5,651          113,304  
 

Kagome Co. Ltd.

     Food Products          4,803          104,445  
 

Kajima Corp.

     Construction & Engineering          26,600          433,782  
 

Kakaku.com, Inc.

     Interactive Media & Services          7,900          80,310  
 

Kamigumi Co. Ltd.

     Transportation Infrastructure          5,718          118,019  
 

Kandenko Co. Ltd.

     Construction & Engineering          6,320          58,319  
 

Kaneka Corp.

     Chemicals          3,755          97,684  
 

Kansai Electric Power Co., Inc.

     Electric Utilities          45,534          633,921  
 

Kansai Paint Co. Ltd.

     Chemicals          11,649          166,860  
 

Kao Corp.

     Personal Care Products          28,492          1,059,870  
 

Katitas Co. Ltd.

     Real Estate Management & Development          2,964          43,261  
 

Kawasaki Heavy Industries Ltd.

     Machinery          9,200          223,180  
 

Kawasaki Kisen Kaisha Ltd.

     Marine Transportation          13,677          467,800  
 

KDDI Corp.

     Wireless Telecommunication Services          100,000          3,067,180  
 

Keihan Holdings Co. Ltd.

     Industrial Conglomerates          6,167          163,985  
 

Keikyu Corp.

     Ground Transportation          15,800          134,521  
 

Keio Corp.

     Ground Transportation          7,194          247,891  
 

Keisei Electric Railway Co. Ltd.

     Ground Transportation          8,700          302,000  
 

Kenedix Office Investment Corp.

     Office REITs          47          108,976  
 

Kewpie Corp.

     Food Products          6,562          105,691  
 

Keyence Corp.

     Electronic Equipment, Instruments & Components          12,200          4,537,443  
 

Kikkoman Corp.

     Food Products          11,459          602,341  
 

Kinden Corp.

     Construction & Engineering          7,900          115,198  
 

Kintetsu Group Holdings Co. Ltd.

     Ground Transportation          11,210          318,365  
 

Kirin Holdings Co. Ltd.

     Beverages          46,565          653,111  
 

Kobayashi Pharmaceutical Co. Ltd.

     Personal Care Products          3,755          167,965  
 

Kobe Bussan Co. Ltd.

     Consumer Staples Distribution & Retail          8,800          206,754  
 

Kobe Steel Ltd.

     Metals & Mining          20,714          270,542  
 

Koei Tecmo Holdings Co. Ltd.

     Entertainment          9,100          129,617  
 

Koito Manufacturing Co. Ltd.

     Automobile Components          14,089          213,046  
 

Kokuyo Co. Ltd.

     Commercial Services & Supplies          5,107          81,161  
 

Komatsu Ltd.

     Machinery          57,446          1,556,403  
 

Konami Group Corp.

     Entertainment          5,932          313,524  
a  

Konica Minolta, Inc.

     Technology Hardware, Storage & Peripherals          31,600          103,022  
 

Kose Corp.

     Personal Care Products          1,840          133,846  
 

Kotobuki Spirits Co. Ltd.

     Food Products          5,925          95,967  
 

K’s Holdings Corp.

     Specialty Retail          9,000          82,748  
 

Kubota Corp.

     Machinery          67,200          992,520  
 

Kuraray Co. Ltd.

     Chemicals          21,010          249,346  
 

Kurita Water Industries Ltd.

     Machinery          6,896          240,950  
 

Kusuri No. Aoki Holdings Co. Ltd.

     Consumer Staples Distribution & Retail          948          54,990  
 

Kyocera Corp.

     Electronic Equipment, Instruments & Components          18,770          954,317  
 

Kyowa Kirin Co. Ltd.

     Pharmaceuticals          15,800          275,713  
 

Kyudenko Corp.

     Construction & Engineering          2,491          78,223  
a  

Kyushu Electric Power Co., Inc.

     Electric Utilities          28,992          189,504  
 

Kyushu Financial Group, Inc.

     Banks          23,700          122,451  
 

Kyushu Railway Co.

     Ground Transportation          9,822          209,242  
 

LaSalle Logiport REIT

     Industrial REITs          115          110,511  
 

Lasertec Corp.

     Semiconductors & Semiconductor Equipment          4,710          734,473  
 

Lawson, Inc.

     Consumer Staples Distribution & Retail          3,044          140,180  
 

Lion Corp.

     Household Products          15,800          156,279  

 

           
238             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    Japan (continued)                         
 

Lixil Corp.

     Building Products          16,300        $ 190,226  
 

M3, Inc.

     Health Care Technology          26,422          480,899  
 

Mabuchi Motor Co. Ltd.

     Electrical Equipment          3,123          93,549  
 

Macnica Holdings, Inc.

     Electronic Equipment, Instruments & Components          2,900          136,619  
 

Makita Corp.

     Machinery          15,293          378,367  
 

Mani, Inc.

     Health Care Equipment & Supplies          3,842          46,704  
 

Marubeni Corp.

     Trading Companies & Distributors          95,908          1,498,793  
 

Marui Group Co. Ltd.

     Consumer Finance          11,344          184,727  
 

Maruichi Steel Tube Ltd.

     Metals & Mining          3,634          90,591  
 

Matsui Securities Co. Ltd.

     Capital Markets          7,900          43,464  
 

MatsukiyoCocokara & Co.

     Consumer Staples Distribution & Retail          22,754          408,726  
 

Mazda Motor Corp.

     Automobiles          35,770          406,660  
 

McDonald’s Holdings Co. Japan Ltd.

     Hotels, Restaurants & Leisure          5,356          204,944  
 

Mebuki Financial Group, Inc.

     Banks          63,200          175,211  
 

Medipal Holdings Corp.

     Health Care Providers & Services          9,300          157,519  
 

MEIJI Holdings Co. Ltd.

     Food Products          16,126          401,570  
 

Menicon Co. Ltd.

     Health Care Equipment & Supplies          2,923          37,687  
a  

Mercari, Inc.

     Broadline Retail          7,194          155,522  
 

MINEBEA MITSUMI, Inc.

     Machinery          25,700          420,483  
 

MISUMI Group, Inc.

     Machinery          17,300          270,876  
 

Mitsubishi Chemical Group Corp.

     Chemicals          80,000          505,384  
 

Mitsubishi Corp.

     Trading Companies & Distributors          71,613          3,420,723  
 

Mitsubishi Electric Corp.

     Electrical Equipment          121,956          1,511,118  
 

Mitsubishi Estate Co. Ltd.

     Real Estate Management & Development          69,200          906,591  
 

Mitsubishi Gas Chemical Co., Inc.

     Chemicals          11,111          149,847  
 

Mitsubishi HC Capital, Inc.

     Financial Services          39,500          263,642  
 

Mitsubishi Heavy Industries Ltd.

     Machinery          17,977          1,005,435  
 

Mitsubishi Logistics Corp.

     Transportation Infrastructure          3,713          98,831  
 

Mitsubishi Materials Corp.

     Metals & Mining          7,900          128,062  
 

Mitsubishi Motors Corp.

     Automobiles          39,500          172,426  
 

Mitsubishi UFJ Financial Group, Inc.

     Banks          728,500          6,192,677  
 

Mitsui & Co. Ltd.

     Trading Companies & Distributors          93,070          3,382,266  
 

Mitsui Chemicals, Inc.

     Chemicals          10,586          275,034  
 

Mitsui Fudosan Co. Ltd.

     Real Estate Management & Development          56,007          1,236,301  
 

Mitsui Fudosan Logistics Park, Inc.

     Industrial REITs          33          104,158  
 

Mitsui High-Tec, Inc.

     Semiconductors & Semiconductor Equipment          1,422          73,947  
 

Mitsui Mining & Smelting Co. Ltd.

     Metals & Mining          3,439          87,459  
 

Mitsui OSK Lines Ltd.

     Marine Transportation          20,882          575,138  
 

Miura Co. Ltd.

     Machinery          5,996          120,945  
 

Mizuho Financial Group, Inc.

     Banks          159,253          2,711,757  
a  

Money Forward, Inc.

     Software          2,751          88,526  
 

MonotaRO Co. Ltd.

     Trading Companies & Distributors          14,683          157,481  
 

Mori Hills REIT Investment Corp., Class C

     Office REITs          100          94,957  
 

Morinaga & Co. Ltd.

     Food Products          2,185          79,098  
 

Morinaga Milk Industry Co. Ltd.

     Food Products          2,246          84,693  
 

MS&AD Insurance Group Holdings, Inc.

     Insurance          28,222          1,039,235  
 

Murata Manufacturing Co. Ltd.

     Electronic Equipment, Instruments & Components          105,561          1,934,018  
 

Nabtesco Corp.

     Machinery          7,000          126,490  
 

Nagase & Co. Ltd.

     Trading Companies & Distributors          6,262          98,635  
 

Nagoya Railroad Co. Ltd.

     Ground Transportation          12,213          180,668  
 

Nankai Electric Railway Co. Ltd.

     Ground Transportation          6,800          132,263  
 

NEC Corp.

     IT Services          16,114          892,061  
 

NEC Networks & System Integration Corp.

     IT Services          4,029          53,027  
 

NET One Systems Co. Ltd.

     IT Services          5,019          95,453  
 

Nexon Co. Ltd.

     Entertainment          24,600          440,731  
 

NGK Insulators Ltd.

     Machinery          15,800          209,855  
 

NH Foods Ltd.

     Food Products          6,161          184,593  

 

           
franklintempleton.com  

Semiannual Report

             239


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    Japan (continued)                         
 

NHK Spring Co. Ltd.

     Automobile Components          9,400        $ 72,063  
 

Nichirei Corp.

     Food Products          6,462          142,253  
 

NIDEC Corp.

     Electrical Equipment          32,430          1,506,265  
 

Nifco, Inc.

     Automobile Components          5,232          135,652  
 

Nihon Kohden Corp.

     Health Care Equipment & Supplies          4,487          111,014  
 

Nihon M&A Center Holdings, Inc.

     Professional Services          15,800          76,181  
 

Nikon Corp.

     Household Durables          19,049          201,245  
 

Nintendo Co. Ltd.

     Entertainment          65,370          2,729,135  
 

Nippon Accommodations Fund, Inc.

     Residential REITs          29          122,627  
 

Nippon Building Fund, Inc.

     Office REITs          96          389,854  
 

Nippon Electric Glass Co. Ltd.

     Electronic Equipment, Instruments & Components          4,761          88,887  
 

Nippon Express Holdings, Inc.

     Air Freight & Logistics          4,258          222,652  
 

Nippon Kayaku Co. Ltd.

     Chemicals          10,080          84,402  
 

Nippon Paint Holdings Co. Ltd.

     Chemicals          63,556          428,463  
 

Nippon Prologis REIT, Inc.

     Industrial REITs          158          295,618  
 

Nippon Sanso Holdings Corp.

     Chemicals          9,000          213,805  
 

Nippon Shinyaku Co. Ltd.

     Pharmaceuticals          3,241          137,459  
 

Nippon Shokubai Co. Ltd.

     Chemicals          1,996          72,630  
 

Nippon Steel Corp.

     Metals & Mining          51,200          1,202,587  
 

Nippon Telegraph & Telephone Corp.

     Diversified Telecommunication Services          1,785,400          2,112,928  
 

Nippon Yusen KK

     Marine Transportation          30,277          788,450  
 

Nipro Corp.

     Health Care Equipment & Supplies          7,300          59,144  
 

Nishi-Nippon Railroad Co. Ltd.

     Ground Transportation          4,703          78,207  
 

Nissan Chemical Corp.

     Chemicals          8,200          349,431  
 

Nissan Motor Co. Ltd.

     Automobiles          121,200          536,293  
 

Nisshin Seifun Group, Inc.

     Food Products          16,093          205,496  
 

Nissin Foods Holdings Co. Ltd.

     Food Products          4,229          352,121  
 

Niterra Co. Ltd.

     Automobile Components          12,155          275,641  
 

Nitori Holdings Co. Ltd.

     Specialty Retail          4,739          530,666  
 

Nitto Denko Corp.

     Chemicals          8,819          579,640  
 

Noevir Holdings Co. Ltd.

     Personal Care Products          948          33,606  
 

NOF Corp.

     Chemicals          4,110          164,593  
 

NOK Corp.

     Automobile Components          6,915          92,007  
 

Nomura Holdings, Inc.

     Capital Markets          189,900          762,400  
 

Nomura Real Estate Holdings, Inc.

     Real Estate Management & Development          6,782          170,567  
 

Nomura Real Estate Master Fund, Inc.

     Diversified REITs          281          315,225  
 

Nomura Research Institute Ltd.

     IT Services          26,895          701,640  
 

NS Solutions Corp.

     IT Services          1,896          54,063  
 

NSK Ltd.

     Machinery          26,400          148,820  
 

NTT Data Group Corp.

     IT Services          39,467          530,150  
 

Obayashi Corp.

     Construction & Engineering          42,200          372,299  
 

OBIC Business Consultants Co. Ltd.

     Software          1,766          73,374  
 

Obic Co. Ltd.

     IT Services          4,212          640,303  
 

Odakyu Electric Railway Co. Ltd.

     Ground Transportation          19,249          288,235  
 

Oji Holdings Corp.

     Paper & Forest Products          55,300          233,096  
 

OKUMA Corp.

     Machinery          1,838          80,984  
 

Olympus Corp.

     Health Care Equipment & Supplies          77,500          1,008,318  
 

Omron Corp.

     Electronic Equipment, Instruments & Components          11,426          510,485  
 

Ono Pharmaceutical Co. Ltd.

     Pharmaceuticals          26,300          505,468  
 

Open House Group Co. Ltd.

     Household Durables          4,449          151,276  
 

Oracle Corp.

     Software          2,075          154,347  
 

Orient Corp.

     Consumer Finance          3,555          27,635  
 

Oriental Land Co. Ltd.

     Hotels, Restaurants & Leisure          58,814          1,934,783  
 

ORIX Corp.

     Financial Services          73,736          1,380,095  
 

Orix JREIT, Inc.

     Office REITs          165          198,365  
 

Osaka Gas Co. Ltd.

     Gas Utilities          24,700          407,515  
 

OSG Corp.

     Machinery          4,745          56,027  

 

           
240             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    Japan (continued)                         
 

Otsuka Corp.

     IT Services          6,462        $ 274,199  
 

Otsuka Holdings Co. Ltd.

     Pharmaceuticals          30,119          1,072,355  
 

PALTAC Corp.

     Distributors          1,917          60,249  
 

Pan Pacific International Holdings Corp.

     Broadline Retail          25,100          527,819  
 

Panasonic Holdings Corp.

     Household Durables          133,800          1,508,136  
a  

Park24 Co. Ltd.

     Commercial Services & Supplies          7,900          100,322  
 

Penta-Ocean Construction Co. Ltd.

     Construction & Engineering          17,700          105,471  
a  

PeptiDream, Inc.

     Biotechnology          5,659          61,093  
 

Persol Holdings Co. Ltd.

     Professional Services          110,600          180,399  
 

Pigeon Corp.

     Household Products          6,778          76,694  
 

Pola Orbis Holdings, Inc.

     Personal Care Products          4,645          55,921  
 

Rakus Co. Ltd.

     Software          5,909          81,671  
 

Rakuten Group, Inc.

     Broadline Retail          71,100          292,119  
 

Recruit Holdings Co. Ltd.

     Professional Services          83,700          2,585,179  
 

Relo Group, Inc.

     Real Estate Management & Development          6,620          71,801  
a  

Renesas Electronics Corp.

     Semiconductors & Semiconductor Equipment          75,000          1,148,685  
 

Rengo Co. Ltd.

     Containers & Packaging          13,082          89,946  
 

Resona Holdings, Inc.

     Banks          133,300          739,905  
 

Resonac Holdings Corp.

     Chemicals          11,181          187,692  
 

Resorttrust, Inc.

     Hotels, Restaurants & Leisure          4,160          62,264  
 

Ricoh Co. Ltd.

     Technology Hardware, Storage & Peripherals          35,800          309,599  
 

Rinnai Corp.

     Household Durables          6,583          123,521  
 

Rohm Co. Ltd.

     Semiconductors & Semiconductor Equipment          20,592          388,726  
 

Rohto Pharmaceutical Co. Ltd.

     Personal Care Products          12,134          329,726  
 

Ryohin Keikaku Co. Ltd.

     Broadline Retail          14,783          191,741  
 

Sanken Electric Co. Ltd.

     Semiconductors & Semiconductor Equipment          1,200          72,937  
 

Sankyo Co. Ltd.

     Leisure Products          2,657          122,038  
 

Sankyu, Inc.

     Air Freight & Logistics          2,968          102,848  
 

Sanrio Co. Ltd.

     Specialty Retail          3,518          167,383  
 

Santen Pharmaceutical Co. Ltd.

     Pharmaceuticals          20,708          190,601  
 

Sanwa Holdings Corp.

     Building Products          12,171          162,144  
 

Sapporo Holdings Ltd.

     Beverages          3,892          124,069  
 

Sawai Group Holdings Co. Ltd.

     Pharmaceuticals          2,370          72,708  
 

SBI Holdings, Inc.

     Capital Markets          15,127          319,114  
 

SCREEN Holdings Co. Ltd.

     Semiconductors & Semiconductor Equipment          4,966          242,302  
 

SCSK Corp.

     IT Services          7,905          138,208  
 

Secom Co. Ltd.

     Commercial Services & Supplies          11,964          812,967  
 

Sega Sammy Holdings, Inc.

     Leisure Products          9,933          183,650  
 

Seibu Holdings, Inc.

     Ground Transportation          13,069          126,026  
 

Seiko Epson Corp.

     Technology Hardware, Storage & Peripherals          16,300          256,638  
 

Seino Holdings Co. Ltd.

     Ground Transportation          8,600          120,766  
 

Sekisui Chemical Co. Ltd.

     Household Durables          20,534          296,262  
 

Sekisui House Ltd.

     Household Durables          34,380          685,872  
 

Sekisui House Reit, Inc.

     Diversified REITs          258          144,020  
 

Seven & i Holdings Co. Ltd.

     Consumer Staples Distribution & Retail          48,273          1,894,042  
 

Seven Bank Ltd.

     Banks          39,500          82,296  
 

SG Holdings Co. Ltd.

     Air Freight & Logistics          26,400          338,790  
a  

Sharp Corp.

     Household Durables          13,103          81,836  
a  

SHIFT, Inc.

     IT Services          632          115,664  
 

Shikoku Electric Power Co., Inc.

     Electric Utilities          9,800          67,216  
 

Shimadzu Corp.

     Electronic Equipment, Instruments & Components          16,800          447,174  
 

Shimamura Co. Ltd.

     Specialty Retail          1,343          132,928  
 

Shimano, Inc.

     Leisure Products          4,822          651,604  
 

Shimizu Corp.

     Construction & Engineering          33,500          233,361  
 

Shin-Etsu Chemical Co. Ltd.

     Chemicals          120,954          3,520,209  
 

Shinko Electric Industries Co. Ltd.

     Semiconductors & Semiconductor Equipment          4,110          160,379  
 

Shionogi & Co. Ltd.

     Pharmaceuticals          16,600          743,760  

 

           
franklintempleton.com  

Semiannual Report

             241


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    Japan (continued)                         
 

Ship Healthcare Holdings, Inc.

     Health Care Providers & Services          4,861        $ 73,896  
 

Shiseido Co. Ltd.

     Personal Care Products          24,400          858,435  
 

Shizuoka Financial Group, Inc.

     Banks          30,593          249,910  
 

SHO-BOND Holdings Co. Ltd.

     Construction & Engineering          2,807          110,531  
a  

Skylark Holdings Co. Ltd.

     Hotels, Restaurants & Leisure          13,772          188,687  
 

SMC Corp.

     Machinery          3,510          1,575,472  
 

SMS Co. Ltd.

     Professional Services          3,002          51,209  
 

Socionext, Inc.

     Semiconductors & Semiconductor Equipment          2,229          220,771  
 

SoftBank Corp.

     Wireless Telecommunication Services          172,488          1,954,036  
 

SoftBank Group Corp.

     Wireless Telecommunication Services          60,748          2,578,915  
 

Sohgo Security Services Co. Ltd.

     Commercial Services & Supplies          23,700          143,288  
 

Sojitz Corp.

     Trading Companies & Distributors          14,192          311,753  
 

Sompo Holdings, Inc.

     Insurance          19,343          833,865  
 

Sony Group Corp.

     Household Durables          77,417          6,350,036  
 

Sotetsu Holdings, Inc.

     Ground Transportation          4,761          93,832  
 

Square Enix Holdings Co. Ltd.

     Entertainment          4,910          168,630  
 

Stanley Electric Co. Ltd.

     Automobile Components          9,324          147,616  
 

Subaru Corp.

     Automobiles          37,785          735,823  
 

Sugi Holdings Co. Ltd.

     Consumer Staples Distribution & Retail          2,154          85,756  
 

SUMCO Corp.

     Semiconductors & Semiconductor Equipment          21,066          275,139  
 

Sumitomo Bakelite Co. Ltd.

     Chemicals          1,996          87,250  
 

Sumitomo Chemical Co. Ltd.

     Chemicals          94,800          258,560  
 

Sumitomo Corp.

     Trading Companies & Distributors          68,735          1,374,470  
 

Sumitomo Electric Industries Ltd.

     Automobile Components          47,400          572,231  
 

Sumitomo Forestry Co. Ltd.

     Household Durables          8,800          224,445  
 

Sumitomo Heavy Industries Ltd.

     Machinery          7,051          179,175  
 

Sumitomo Metal Mining Co. Ltd.

     Metals & Mining          14,890          438,942  
 

Sumitomo Mitsui Financial Group, Inc.

     Banks          79,885          3,933,088  
 

Sumitomo Mitsui Trust Holdings, Inc.

     Banks          22,175          836,773  
 

Sumitomo Pharma Co. Ltd.

     Pharmaceuticals          15,800          56,720  
 

Sumitomo Realty & Development Co. Ltd.

     Real Estate Management & Development          24,742          644,312  
 

Sumitomo Rubber Industries Ltd.

     Automobile Components          11,302          125,043  
 

Sundrug Co. Ltd.

     Consumer Staples Distribution & Retail          4,071          110,624  
 

Suntory Beverage & Food Ltd.

     Beverages          7,900          240,878  
 

Suzuken Co. Ltd.

     Health Care Providers & Services          4,287          132,840  
 

Suzuki Motor Corp.

     Automobiles          28,347          1,142,808  
 

Sysmex Corp.

     Health Care Equipment & Supplies          11,932          570,353  
 

T&D Holdings, Inc.

     Insurance          31,600          522,626  
 

Taiheiyo Cement Corp.

     Construction Materials          7,200          127,861  
 

Taisei Corp.

     Construction & Engineering          10,881          383,615  
 

Taisho Pharmaceutical Holdings Co. Ltd.

     Pharmaceuticals          2,809          116,012  
 

Taiyo Yuden Co. Ltd.

     Electronic Equipment, Instruments & Components          7,900          214,355  
 

Takara Bio, Inc.

     Biotechnology          2,686          24,894  
 

Takara Holdings, Inc.

     Beverages          10,870          87,484  
 

Takashimaya Co. Ltd.

     Broadline Retail          8,300          121,698  
 

Takeda Pharmaceutical Co. Ltd.

     Pharmaceuticals          95,485          2,969,649  
 

TBS Holdings, Inc.

     Media          2,054          34,611  
 

TDK Corp.

     Electronic Equipment, Instruments & Components          22,588          838,886  
 

TechnoPro Holdings, Inc.

     Professional Services          6,744          147,014  
 

Teijin Ltd.

     Chemicals          11,560          112,559  
 

Terumo Corp.

     Health Care Equipment & Supplies          40,700          1,080,879  
 

THK Co. Ltd.

     Machinery          7,900          144,712  
 

TIS, Inc.

     IT Services          14,330          316,225  
 

Tobu Railway Co. Ltd.

     Ground Transportation          12,565          323,503  
 

Toda Corp.

     Construction & Engineering          15,800          85,721  
 

Toei Animation Co. Ltd.

     Entertainment          316          27,995  
 

Toho Co. Ltd.

     Entertainment          6,896          235,774  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    Japan (continued)                         
 

Toho Gas Co. Ltd.

     Gas Utilities          5,578        $ 97,468  
 

Tohoku Electric Power Co., Inc.

     Electric Utilities          29,624          192,087  
 

Tokai Carbon Co. Ltd.

     Chemicals          12,295          96,481  
 

Tokio Marine Holdings, Inc.

     Insurance          116,378          2,702,294  
 

Tokyo Century Corp.

     Financial Services          3,934          157,281  
a  

Tokyo Electric Power Co. Holdings, Inc.

     Electric Utilities          97,600          437,426  
 

Tokyo Electron Ltd.

     Semiconductors & Semiconductor Equipment          27,867          3,817,065  
 

Tokyo Gas Co. Ltd.

     Gas Utilities          25,600          581,736  
 

Tokyo Ohka Kogyo Co. Ltd.

     Chemicals          2,233          133,120  
 

Tokyo Seimitsu Co. Ltd.

     Semiconductors & Semiconductor Equipment          2,300          115,443  
 

Tokyo Tatemono Co. Ltd.

     Real Estate Management & Development          12,166          168,600  
 

Tokyu Corp.

     Ground Transportation          37,182          429,565  
 

Tokyu Fudosan Holdings Corp.

     Real Estate Management & Development          39,500          243,260  
 

TOPPAN, Inc.

     Commercial Services & Supplies          16,800          402,479  
 

Toray Industries, Inc.

     Chemicals          94,800          494,250  
a  

Toshiba Corp.

     Industrial Conglomerates          5,622          173,416  
 

Toshiba TEC Corp.

     Technology Hardware, Storage & Peripherals          1,422          32,542  
 

Tosoh Corp.

     Chemicals          17,500          224,929  
 

TOTO Ltd.

     Building Products          9,029          233,734  
 

Toyo Seikan Group Holdings Ltd.

     Containers & Packaging          8,900          145,973  
 

Toyo Suisan Kaisha Ltd.

     Food Products          5,630          221,276  
 

Toyo Tire Corp.

     Automobile Components          6,404          98,790  
 

Toyoda Gosei Co. Ltd.

     Automobile Components          4,559          98,130  
 

Toyota Boshoku Corp.

     Automobile Components          3,834          70,038  
 

Toyota Industries Corp.

     Machinery          10,026          791,128  
 

Toyota Motor Corp.

     Automobiles          749,900          13,455,234  
 

Toyota Tsusho Corp.

     Trading Companies & Distributors          13,929          820,945  
 

Trend Micro, Inc.

     Software          7,073          268,653  
 

TS Tech Co. Ltd.

     Automobile Components          6,030          68,533  
 

Tsumura & Co.

     Pharmaceuticals          4,075          75,916  
 

Tsuruha Holdings, Inc.

     Consumer Staples Distribution & Retail          2,335          157,179  
 

UBE Corp.

     Chemicals          5,946          100,471  
 

Ulvac, Inc.

     Semiconductors & Semiconductor Equipment          2,972          107,448  
 

Unicharm Corp.

     Household Products          24,210          858,402  
 

United Urban Investment Corp.

     Diversified REITs          185          193,027  
 

Ushio, Inc.

     Electrical Equipment          6,562          79,879  
 

USS Co. Ltd.

     Specialty Retail          12,582          208,470  
 

Welcia Holdings Co. Ltd.

     Consumer Staples Distribution & Retail          6,225          107,772  
 

West Japan Railway Co.

     Ground Transportation          14,428          598,004  
 

Workman Co. Ltd.

     Specialty Retail          2,786          84,854  
 

Yakult Honsha Co. Ltd.

     Food Products          16,306          396,982  
 

Yamada Holdings Co. Ltd.

     Specialty Retail          35,900          110,545  
 

Yamaguchi Financial Group, Inc.

     Banks          12,392          108,827  
 

Yamaha Corp.

     Leisure Products          9,463          259,111  
 

Yamaha Motor Co. Ltd.

     Automobiles          19,091          502,910  
 

Yamato Holdings Co. Ltd.

     Air Freight & Logistics          20,234          330,171  
 

Yamato Kogyo Co. Ltd.

     Metals & Mining          2,096          100,372  
 

Yamazaki Baking Co. Ltd.

     Food Products          7,473          137,616  
 

Yaoko Co. Ltd.

     Consumer Staples Distribution & Retail          1,343          69,200  
 

Yaskawa Electric Corp.

     Machinery          16,126          583,011  
 

Yokogawa Electric Corp.

     Electronic Equipment, Instruments & Components          15,157          293,389  
 

Yokohama Rubber Co. Ltd.

     Automobile Components          8,200          171,006  
 

Z Holdings Corp.

     Interactive Media & Services          165,900          461,930  
 

Zenkoku Hosho Co. Ltd.

     Financial Services          3,123          102,778  
 

Zensho Holdings Co. Ltd.

     Hotels, Restaurants & Leisure          5,988          260,747  
 

Zeon Corp.

     Chemicals          8,800          92,172  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    Japan (continued)                         
 

ZOZO, Inc.

     Specialty Retail          6,823        $ 125,395  
              

 

 

 
 

Total Common Stocks (Cost $251,202,266)

               247,123,238  
              

 

 

 
 

Total Investments before Short-Term Investments
(Cost $251,202,266)

               247,123,238  
              

 

 

 
    Short-Term Investments 0.0%                         
 

Money Market Funds 0.0%

            
    United States 0.0%                         
b,c  

Institutional Fiduciary Trust - Money Market Portfolio, 5.15%

     Money Market Funds          14,047          14,047  
              

 

 

 
 

Total Short-Term Investments (Cost $14,047)

               14,047  
              

 

 

 
 

Total Investments (Cost $251,216,313) 99.0%

               247,137,285  
 

Other Assets, less Liabilities 1.0%

               2,525,805  
              

 

 

 
 

Net Assets 100.0%

             $ 249,663,090  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bThe rate shown is the annualized seven-day effective yield at period end.

cSee Note 3(c) regarding investments in affiliated management investment companies.

At September 30, 2023, the Fund had the following forward exchange contracts outstanding. See Note 1(c).

Forward Exchange Contracts

 

Currency    Counterpartya      Type      Quantity      Contract
Amount
     Settlement
Date
     Unrealized
Appreciation
     Unrealized
Depreciation
 
OTC Forward Exchange Contracts                                            

Japanese Yen

     HSBK        Buy        9,067,377,000        $60,762,227        10/03/23      $           896      $             —  

Japanese Yen

     BOFA        Buy        9,067,377,000        60,762,227        10/03/23        896         

Japanese Yen

     UBSW        Buy        18,134,754,000        121,525,024        10/03/23        1,221         

Japanese Yen

     HSBK        Sell        9,067,377,000        62,559,349        10/03/23        1,796,226         

Japanese Yen

     BOFA        Sell        9,067,377,000        62,561,593        10/03/23        1,798,470         

Japanese Yen

     UBSW        Sell        18,134,754,000        125,121,200        10/03/23        3,594,955         

Japanese Yen

     UBSW        Sell        18,613,956,000        125,330,891        11/02/23               (5,717

Japanese Yen

     HSBK        Sell        9,306,978,000        62,666,332        11/02/23               (1,972

Japanese Yen

     BOFA        Sell        9,306,978,000        62,666,838        11/02/23               (1,466
                 

 

 

 

Total Forward Exchange Contracts

 

                 $7,192,664        $     (9,155
                 

 

 

 

Net unrealized appreciation (depreciation)

 

                 $7,183,509  
                 

 

 

 

aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Japan Hedged ETF (continued)

 

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

 

Description      Type      
Number of
Contracts
 
 
   
Notional
Amount
 
   
Expiration
Date
 
 
   

Value/Unrealized
Appreciation
(Depreciation)
 
 
 
Index Contracts           

Nikkei 225 Mini

     Long       75       $1,601,273       12/07/23       $ (15,554) 

*As of period end.

 

 

 

 

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Latin America ETF

 

   

Six Months Ended

September 30, 2023
(unaudited)

    Year Ended March 31,  
     2023      2022      2021      2020     

2019a

 

Per share operating performance

(for a share outstanding throughout the period)

               

Net asset value, beginning of period

    $20.42       $25.25        $22.40        $15.20        $ 26.41        $26.17  
Income from investment operationsb:                

Net investment incomec

    0.75       1.66        1.54        0.57        0.77        0.38  

Net realized and unrealized gains (losses)

    1.09       (4.62      2.83        7.13        (11.08      (0.02

Total from investment operations

    1.84       (2.96      4.37        7.70        (10.31      0.36  

Less distributions from net investment income

    (0.52     (1.87      (1.52      (0.50      (0.90      (0.12

Net asset value, end of period

    $21.74       $20.42        $25.25        $22.40        $ 15.20        $26.41  

Total returnd

    8.94%       (11.05)%        21.12%        50.80%        (40.49)%        1.42%  
Ratios to average net assetse                

Total expenses

    0.19%       0.19%        0.19%        0.19%        0.21%        0.19%  

Net investment income

    6.79%       8.09%        6.75%        2.86%        2.97%        3.08%  
Supplemental data                

Net assets, end of period (000’s)

    $60,877       $67,372        $7,575        $4,480        $1,520        $2,641  

Portfolio turnover ratef

    3.73%g       10.49%g        18.50%g        10.21%g        12.74%g        4.08%  

 

aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

cBased on average daily shares outstanding.

dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

eRatios are annualized for periods less than one year.

fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

gPortfolio turnover rate excluding cash creations was as follows:

     3.60%        10.49%        18.50%        10.21%        12.74%         

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Latin America ETF

 

           Industry            Shares                Value  
 

Common Stocks 80.1%

            
    Brazil 43.8%                         
 

Aliansce Sonae Shopping Centers SA

     Real Estate Management & Development          44,800        $ 202,196  
 

Alupar Investimento SA, UNIT

     Electric Utilities          11,200          64,356  
 

Ambev SA

     Beverages          408,800          1,070,760  
 

Atacadao SA

     Consumer Staples Distribution & Retail          50,400          89,619  
 

Auren Energia SA

     Independent Power Producers & Energy Traders          33,600          92,170  
 

B3 SA - Brasil Bolsa Balcao

     Capital Markets          537,600          1,320,048  
 

Banco Bradesco SA

     Banks          140,000          354,112  
 

Banco BTG Pactual SA

     Capital Markets          123,200          764,769  
 

Banco do Brasil SA

     Banks          80,400          757,866  
 

Banco Santander Brasil SA

     Banks          33,600          174,874  
 

BB Seguridade Participacoes SA

     Insurance          63,000          392,837  
 

Bradespar SA

     Metals & Mining          2,800          11,720  
a  

BRF SA

     Food Products          89,600          182,415  
 

Caixa Seguridade Participacoes SA

     Insurance          42,000          93,647  
 

CCR SA

     Transportation Infrastructure          106,400          274,014  
 

Centrais Eletricas Brasileiras SA

     Electric Utilities          123,200          908,025  
 

Cia de Saneamento Basico do Estado de Sao Paulo SABESP

     Water Utilities          32,200          392,625  
 

Cia Energetica de Minas Gerais

     Electric Utilities          30,800          117,534  
 

Cia Paranaense de Energia

     Electric Utilities          72,800          122,322  
 

Cia Siderurgica Nacional SA

     Metals & Mining          58,800          142,618  
 

Cielo SA

     Financial Services          109,200          76,579  
 

Cosan SA

     Oil, Gas & Consumable Fuels          112,000          383,537  
 

CPFL Energia SA

     Electric Utilities          18,000          120,870  
 

CSN Mineracao SA

     Metals & Mining          50,400          48,837  
 

Dexco SA

     Paper & Forest Products          30,800          47,383  
 

Diagnosticos da America SA

     Health Care Providers & Services          25,200          62,280  
a  

Embraer SA

     Aerospace & Defense          70,000          240,830  
 

Energisa SA

     Electric Utilities          28,000          261,528  
a  

Eneva SA

     Independent Power Producers & Energy Traders          114,800          276,610  
 

Engie Brasil Energia SA

     Independent Power Producers & Energy Traders          16,800          139,060  
 

Equatorial Energia SA

     Electric Utilities          81,200          520,114  
b  

GPS Participacoes e Empreendimentos SA

     Commercial Services & Supplies          39,200          134,630  
 

Grupo De Moda Soma SA

     Textiles, Apparel & Luxury Goods          42,000          55,802  
a  

Grupo Mateus SA

     Consumer Staples Distribution & Retail          36,400          49,743  
a,b  

Hapvida Participacoes e Investimentos SA

     Health Care Providers & Services          450,800          423,312  
 

Hypera SA

     Pharmaceuticals          37,900          281,229  
 

Intelbras SA Industria de Telecomunicacao Eletronica Brasileira

     Communications Equipment          5,600          23,160  
 

Itau Unibanco Holding SA

     Banks          42,000          193,503  
 

Klabin SA

     Containers & Packaging          72,800          346,313  
 

Localiza Rent a Car SA

     Ground Transportation          78,800          921,947  
 

Lojas Renner SA

     Specialty Retail          89,600          239,879  
 

M Dias Branco SA

     Food Products          11,200          81,742  
a  

Magazine Luiza SA

     Broadline Retail          288,400          122,155  
 

Multiplan Empreendimentos Imobiliarios SA

     Real Estate Management & Development          25,200          123,704  
a  

Natura & Co. Holding SA

     Personal Care Products          89,600          260,644  
 

Neoenergia SA

     Electric Utilities          22,400          82,391  
 

Petroleo Brasileiro SA

     Oil, Gas & Consumable Fuels          347,200          2,628,348  
 

Porto Seguro SA

     Insurance          16,800          88,243  
a  

PRIO SA

     Oil, Gas & Consumable Fuels          63,500          596,787  
 

Raia Drogasil SA

     Consumer Staples Distribution & Retail          103,600          571,692  
b  

Rede D’Or Sao Luiz SA

     Health Care Providers & Services          72,800          369,585  
 

Rumo SA

     Ground Transportation          117,600          536,169  
 

Sao Martinho SA

     Food Products          15,400          120,795  
 

Sendas Distribuidora SA

     Consumer Staples Distribution & Retail          126,000          306,114  
 

SLC Agricola SA

     Food Products          10,100          79,485  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Latin America ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Brazil (continued)                         
a  

Smartfit Escola de Ginastica e Danca SA

     Hotels, Restaurants & Leisure          11,200        $ 48,110  
 

Suzano SA

     Paper & Forest Products          66,100          716,836  
 

Telefonica Brasil SA

     Diversified Telecommunication Services          41,600          358,884  
 

TIM SA

     Wireless Telecommunication Services          75,600          224,903  
 

TOTVS SA

     Software          42,000          226,564  
 

Transmissora Alianca de Energia Eletrica SA

     Electric Utilities          20,400          140,858  
 

Ultrapar Participacoes SA

     Oil, Gas & Consumable Fuels          78,400          293,695  
 

Usinas Siderurgicas de Minas Gerais SA Usiminas

     Metals & Mining          16,800          23,294  
 

Vale SA

     Metals & Mining          356,100          4,808,047  
 

Vamos Locacao de Caminhoes Maquinas e Equipamentos SA

     Ground Transportation          36,400          70,906  
 

Vibra Energia SA

     Specialty Retail          103,600          391,615  
 

WEG SA

     Electrical Equipment          140,000          1,014,505  
              

 

 

 
                 26,661,744  
              

 

 

 
    Chile 4.7%                         
 

Aguas Andinas SA, Class A

     Water Utilities          257,992          77,388  
 

Banco de Chile

     Banks          4,130,336          418,374  
 

Banco de Credito e Inversiones SA

     Banks          5,740          146,213  
 

Banco Itau Chile SA

     Banks          7,028          67,435  
 

Banco Santander Chile

     Banks          5,854,352          269,667  
 

Cencosud SA

     Consumer Staples Distribution & Retail          124,180          234,223  
 

Cencosud Shopping SA

     Real Estate Management & Development          45,444          68,673  
 

Cia Cervecerias Unidas SA

     Beverages          12,460          78,773  
 

Cia Sud Americana de Vapores SA

     Marine Transportation          1,640,520          97,878  
 

Colbun SA

     Independent Power Producers & Energy Traders          679,560          92,043  
 

Empresas CMPC SA

     Paper & Forest Products          112,476          205,991  
 

Empresas Copec SA

     Oil, Gas & Consumable Fuels          45,780          322,845  
a  

Enel Americas SA

     Electric Utilities          1,783,796          203,668  
 

Enel Chile SA

     Electric Utilities          2,332,736          141,006  
 

Falabella SA

     Broadline Retail          74,424          165,435  
a  

Latam Airlines Group SA

     Passenger Airlines          15,987,608          144,244  
 

Plaza SA

     Real Estate Management & Development          28,000          38,263  
 

Quinenco SA

     Industrial Conglomerates          24,920          73,364  
 

Sociedad de Inversiones Oro Blanco SA

     Capital Markets          4,657,268          36,013  
              

 

 

 
                 2,881,496  
              

 

 

 
    Colombia 1.0%                         
 

Bancolombia SA

     Banks          25,984          197,868  
 

Ecopetrol SA

     Oil, Gas & Consumable Fuels          444,500          259,825  
 

Interconexion Electrica SA ESP

     Electric Utilities          41,272          152,195  
              

 

 

 
                 609,888  
              

 

 

 
    Mexico 29.6%                         
 

Alfa SAB de CV, Class A

     Industrial Conglomerates          340,676          222,301  
 

Alpek SAB de CV

     Chemicals          35,084          30,201  
a  

Alsea SAB de CV

     Hotels, Restaurants & Leisure          48,832          178,176  
 

America Movil SAB de CV

     Wireless Telecommunication Services          2,153,928          1,870,286  
 

Arca Continental SAB de CV

     Beverages          41,440          377,427  
b  

Banco del Bajio SA

     Banks          66,444          209,558  
 

Becle SAB de CV

     Beverages          50,596          120,824  
a  

Cemex SAB de CV

     Construction Materials          1,422,008          930,358  
 

Coca-Cola Femsa SAB de CV

     Beverages          49,336          388,306  
 

Concentradora Fibra Danhos SA de CV

     Diversified REITs          22,456          25,314  
a  

Controladora AXTEL SAB de CV

     Diversified Telecommunication Services          338,632          4,287  
 

Corp. Inmobiliaria Vesta SAB de CV

     Real Estate Management & Development          76,188          252,038  
 

El Puerto de Liverpool SAB de CV, Class C1

     Broadline Retail          18,676          98,321  
 

Fibra Uno Administracion SA de CV

     Diversified REITs          269,808          451,013  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Latin America ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    Mexico (continued)                         
 

Fomento Economico Mexicano SAB de CV

     Beverages          170,912        $ 1,871,835  
 

Gruma SAB de CV, Class B

     Food Products          18,284          314,032  
 

Grupo Aeroportuario del Centro Norte SAB de CV

     Transportation Infrastructure          25,844          281,275  
 

Grupo Aeroportuario del Pacifico SAB de CV, Class B

     Transportation Infrastructure          36,232          597,192  
 

Grupo Aeroportuario del Sureste SAB de CV, Class B

     Transportation Infrastructure          18,760          460,469  
 

Grupo Bimbo SAB de CV

     Food Products          207,816          1,004,730  
 

Grupo Carso SAB de CV

     Industrial Conglomerates          42,308          310,789  
 

Grupo Comercial Chedraui SA de CV

     Consumer Staples Distribution & Retail          43,288          254,893  
 

Grupo Elektra SAB de CV

     Banks          5,656          374,578  
 

Grupo Financiero Banorte SAB de CV, Class O

     Banks          270,508          2,274,300  
a  

Grupo Financiero Inbursa SAB de CV, Class O

     Banks          186,956          368,673  
 

Grupo Mexico SAB de CV, Class B

     Metals & Mining          296,436          1,407,084  
 

Grupo Televisa SAB

     Media          225,428          137,370  
a  

Industrias Penoles SAB de CV

     Metals & Mining          11,648          137,704  
 

Kimberly-Clark de Mexico SAB de CV, Class A

     Household Products          78,092          155,928  
 

Megacable Holdings SAB de CV

     Media          28,084          61,990  
 

Operadora De Sites Mexicanos SAB de CV

     Diversified Telecommunication Services          117,656          98,033  
 

Orbia Advance Corp. SAB de CV

     Chemicals          91,112          189,842  
 

Prologis Property Mexico SA de CV

     Industrial REITs          57,036          196,755  
 

Promotora y Operadora de Infraestructura SAB de CV

     Transportation Infrastructure          20,524          183,964  
 

Qualitas Controladora SAB de CV

     Insurance          15,932          120,050  
 

Regional SAB de CV

     Banks          22,372          161,136  
a  

Sitios Latinoamerica SAB de CV

     Diversified Telecommunication Services          165,564          66,117  
 

Wal-Mart de Mexico SAB de CV, Class V

     Consumer Staples Distribution & Retail          483,112          1,823,641  
              

 

 

 
                 18,010,790  
              

 

 

 
    United States 1.0%                         
 

GCC SAB de CV

     Construction Materials          15,316          144,475  
 

JBS SA

     Food Products          126,000          454,387  
              

 

 

 
                 598,862  
              

 

 

 
 

Total Common Stocks
(Cost $41,986,426)

               48,762,780  
              

 

 

 
    Preferred Stocks 18.6%                         
    Brazil 16.7%                         
a,c  

Alpargatas SA, pfd.

     Textiles, Apparel & Luxury Goods          22,400          36,027  
c  

Banco Bradesco SA, 5.993%, pfd.

     Banks          487,200          1,391,944  
c  

Bradespar SA, 12.315%, pfd.

     Metals & Mining          24,000          108,943  
a,c  

Braskem SA, Class A, pfd.

     Chemicals          16,800          68,876  
c  

Centrais Eletricas Brasileiras SA, Class B, 3.703%, pfd.

     Electric Utilities          25,200          203,153  
c  

Cia Energetica de Minas Gerais, 7.703%, pfd.

     Electric Utilities          117,600          291,580  
c  

Cia Paranaense de Energia, 3.482%, pfd.

     Electric Utilities          126,000          225,557  
c  

CTEEP-Cia de Transmissao de Energia Eletrica Paulista, 3.859%, pfd.

     Electric Utilities          16,800          78,542  
c  

Gerdau SA, 12.607%, pfd.

     Metals & Mining          100,800          485,955  
c  

Itau Unibanco Holding SA, 4.671%, pfd.

     Banks          453,600          2,465,927  
c  

Itausa SA, 6.464%, pfd.

     Banks          488,786          883,783  
a,c  

Itausa SA, pfd.

     Banks          6,814          12,321  
c  

Metalurgica Gerdau SA, 9.758%, pfd.

     Metals & Mining          61,600          137,225  
c  

Petroleo Brasileiro SA, 9.792%, pfd.

     Oil, Gas & Consumable Fuels          526,400          3,643,110  
c  

Unipar Carbocloro SA, Class B, 8.522%, pfd.

     Chemicals          4,540          73,499  

 

           
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             249


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Latin America ETF (continued)

 

           Industry            Shares                Value  
 

Preferred Stocks (continued)

            
    Brazil (continued)                         
c  

Usinas Siderurgicas de Minas Gerais SA Usiminas, Class A, 4.955%, pfd.

     Metals & Mining          44,800        $ 59,433  
              

 

 

 
                 10,165,875  
              

 

 

 
    Chile 1.4%                         
c  

Embotelladora Andina SA, Class B, 7.539%, pfd.

     Beverages          35,252          78,881  
c  

Sociedad Quimica y Minera de Chile SA,Class B, 0.017%, pfd.

     Electrical Equipment          12,796          757,032  
              

 

 

 
                 835,913  
              

 

 

 
    Colombia 0.5%                         
c  

Bancolombia SA, 12.674%, pfd.

     Banks          42,448          284,108  
c  

Grupo Aval Acciones y Valores SA, 4.898%, pfd.

     Banks          409,276          52,045  
              

 

 

 
                 336,153  
              

 

 

 
 

Total Preferred Stocks
(Cost $9,971,649)

               11,337,941  
              

 

 

 
    Rights 0.0%                         
    Brazil 0.0%                         
a  

Localiza Rent a Car SA

     Ground Transportation          577          1,844  
              

 

 

 
    Chile 0.0%                         
a  

Banco de Credito e Inversiones SA

     Banks          837          697  
              

 

 

 
 

Total Rights (Cost $0)

               2,541  
              

 

 

 
 

Total Investments (Cost $51,958,075) 98.7%

               60,103,262  
 

Other Assets, less Liabilities 1.3%

               774,038  
              

 

 

 
 

Net Assets 100.0%

             $ 60,877,300  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $1,137,085, representing 1.9% of net assets.

cVariable rate security. The rate shown represents the yield at period end.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Equity Contracts               

Bovespa Index

     Long        25      $ 585,501        10/18/23        $(10,223)  
Index Contracts               

Mex Bolsa Index

     Long        7        207,364        12/15/23        (4,988)  
              

 

 

 

Total Futures Contracts

                 $(15,211)  
              

 

 

 

*As of period end.

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Mexico ETF

 

   

Six Months Ended

September 30, 2023

(unaudited)

    Year Ended March 31,  
     2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the period)
               

Net asset value, beginning of period

    $29.28       $27.49        $22.14        $14.35        $22.11        $24.98  

Income from investment operationsa:

               

Net investment incomeb

    0.47       0.91        0.66        0.33        0.64        0.51  

Net realized and unrealized gains (losses)

    (0.56     1.91        5.48        7.78        (7.73      (2.86

Total from investment operations

    (0.09     2.82        6.14        8.11        (7.09      (2.35

Less distributions from net investment income

    (0.28     (1.03      (0.79      (0.32      (0.67      (0.52

Net asset value, end of period

    $28.91       $29.28        $27.49        $22.14        $14.35        $22.11  

Total returnc

    (0.38)%       11.15%        28.33%        56.94%        (33.13)%        (9.28)%  
Ratios to average net assetsd                

Total expenses

    0.19%       0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income

    3.12%       3.55%        2.73%        1.80%        2.93%        2.21%  
Supplemental data                

Net assets, end of period (000’s)

    $30,352       $24,890        $12,372        $5,536        $2,871        $4,422  

Portfolio turnover ratee

    7.13%f       11.16%f        22.39%f        18.32%f        19.32%f        10.31%  

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

bBased on average daily shares outstanding.

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

dRatios are annualized for periods less than one year.

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

fPortfolio turnover rate excluding cash creations was as follows:     7.13%        11.16%        22.39%        18.32%        19.32%         

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Mexico ETF

 

           Industry            Shares                Value  
 

Common Stocks 99.9%

            
    Mexico 99.0%                         
 

Alfa SAB de CV, Class A

     Industrial Conglomerates          637,287        $ 415,849  
 

Alpek SAB de CV

     Chemicals          65,709          56,565  
a  

Alsea SAB de CV

     Hotels, Restaurants & Leisure          91,035          332,165  
 

America Movil SAB de CV

     Wireless Telecommunication Services          3,446,037          2,992,243  
 

Arca Continental SAB de CV

     Beverages          77,511          705,955  
b  

Banco del Bajio SA

     Banks          124,467          392,556  
 

Becle SAB de CV

     Beverages          94,668          226,068  
a  

Cemex SAB de CV

     Construction Materials          1,916,586          1,253,939  
 

Coca-Cola Femsa SAB de CV

     Beverages          92,295          726,421  
 

Concentradora Fibra Danhos SA de CV

     Diversified REITs          42,630          48,055  
a  

Controladora AXTEL SAB de CV

     Diversified Telecommunication Services          712,026          9,014  
 

Corp. Inmobiliaria Vesta SAB de CV

     Real Estate Management & Development          142,506          471,426  
 

El Puerto de Liverpool SAB de CV, Class C1

     Broadline Retail          34,692          182,638  
 

Fibra Uno Administracion SA de CV

     Diversified REITs          504,735          843,718  
 

Fomento Economico Mexicano SAB de CV

     Beverages          274,281          3,003,936  
 

Gruma SAB de CV, Class B

     Food Products          34,209          587,548  
 

Grupo Aeroportuario del Centro Norte SAB de CV

     Transportation Infrastructure          48,342          526,133  
 

Grupo Aeroportuario del Pacifico SAB de CV, Class B

     Transportation Infrastructure          58,359          961,898  
 

Grupo Aeroportuario del Sureste SAB de CV, Class B

     Transportation Infrastructure          34,461          845,855  
 

Grupo Bimbo SAB de CV

     Food Products          283,605          1,371,148  
 

Grupo Carso SAB de CV

     Industrial Conglomerates          79,170          581,572  
 

Grupo Comercial Chedraui SA de CV

     Consumer Staples Distribution & Retail          80,997          476,935  
 

Grupo Elektra SAB de CV

     Banks          10,581          700,744  
 

Grupo Financiero Banorte SAB de CV, Class O

     Banks          431,634          3,628,969  
a  

Grupo Financiero Inbursa SAB de CV, Class O

     Banks          350,265          690,715  
 

Grupo Mexico SAB de CV, Class B

     Metals & Mining          480,459          2,280,580  
 

Grupo Televisa SAB

     Media          421,701          256,974  
a  

Industrias Penoles SAB de CV

     Metals & Mining          21,777          257,449  
 

Kimberly-Clark de Mexico SAB de CV, Class A

     Household Products          146,097          291,715  
 

Megacable Holdings SAB de CV

     Media          52,542          115,977  
 

Operadora De Sites Mexicanos SAB de CV

     Diversified Telecommunication Services          220,080          183,374  
 

Orbia Advance Corp. SAB de CV

     Chemicals          170,436          355,122  
 

Prologis Property Mexico SA de CV

     Industrial REITs          106,428          367,141  
 

Promotora y Operadora de Infraestructura SAB de CV

     Transportation Infrastructure          38,472          344,839  
 

Qualitas Controladora SAB de CV

     Insurance          29,589          222,958  
 

Regional SAB de CV

     Banks          41,559          299,332  
a  

Sitios Latinoamerica SAB de CV

     Diversified Telecommunication Services          310,590          124,032  
 

Wal-Mart de Mexico SAB de CV, Class V

     Consumer Staples Distribution & Retail          775,341          2,926,741  
              

 

 

 
                 30,058,299  
              

 

 

 
 

United States 0.9%

            
 

GCC SAB de CV

     Construction Materials          28,665          270,394  
              

 

 

 
 

Total Common Stocks (Cost $28,789,597)

               30,328,693  
              

 

 

 
 

Total Investments (Cost $28,789,597) 99.9%

               30,328,693  
 

Other Assets, less Liabilities 0.1%

               22,995  
              

 

 

 
 

Net Assets 100.0%

             $ 30,351,688  
              

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $392,556, representing 1.3% of net assets.

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Saudi Arabia ETF

 

   

Six Months Ended
September 30, 2023

(unaudited)

    Year Ended March 31,  
     2023      2022      2021      2020      2019a  

Per share operating performance

(for a share outstanding throughout the period)

               

Net asset value, beginning of period

    $33.65       $41.30        $30.33        $20.15        $27.89        $24.71  
Income from investment operationsb:                

Net investment incomec

    0.64       1.38        0.62        0.52        0.89        0.11  

Net realized and unrealized gains (losses)

    0.35       (8.40      11.03        10.23        (7.80      3.07  

Total from investment operations

    0.99       (7.02      11.65        10.75        (6.91      3.18  

Less distributions from net investment income

    (0.48     (0.63      (0.68      (0.57      (0.83       

Net asset value, end of period

    $34.16       $33.65        $41.30        $30.33        $20.15        $27.89  

Total returnd

    2.89%       (17.04)%        38.99%        54.12%        (25.51)%        12.87%  
Ratios to average net assetse                

Total expenses

    0.39%       0.39%        0.39%        0.39%        0.39%        0.39%  

Net investment income

    3.60%       3.97%        1.77%        2.11%        3.46%        0.93%  
Supplemental data                

Net assets, end of period (000’s)

    $22,207       $21,874        $4,130        $3,033        $2,015        $2,789  

Portfolio turnover ratef

    6.56%g       5.44%g        15.51%g        16.74%g        32.37%g        12.41%  

aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

cBased on average daily shares outstanding.

dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

eRatios are annualized for periods less than one year.

fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

gPortfolio turnover rate excluding cash creations was as follows:   6.56%    5.44%    15.51%    16.74%    32.37%       

 

           
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             253


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Saudi Arabia ETF

 

           Industry            Shares                Value  
 

Common Stocks 99.9%

            
    Saudi Arabia 99.9%                         
 

Abdullah Al Othaim Markets Co.

     Consumer Staples Distribution & Retail          34,346        $ 124,180  
 

ACWA Power Co.

     Independent Power Producers & Energy Traders          10,361          540,365  
 

Advanced Petrochemical Co.

     Chemicals          9,919          106,054  
 

Al Rajhi Bank

     Banks          152,607          2,762,873  
 

Alinma Bank

     Banks          76,297          679,470  
 

Almarai Co. JSC

     Food Products          18,967          321,642  
 

Arab National Bank

     Banks          51,831          331,679  
 

Arabian Centres Co. Ltd.

     Real Estate Management & Development          12,519          66,426  
 

Arabian Drilling Co.

     Energy Equipment & Services          2,080          104,265  
 

Arabian Internet & Communications Services Co.

     IT Services          1,950          166,172  
 

Bank AlBilad

     Banks          38,155          430,337  
a  

Bank Al-Jazira

     Banks          31,278          140,109  
 

Banque Saudi Fransi

     Banks          45,760          445,344  
 

BinDawood Holding Co.

     Consumer Staples Distribution & Retail          22,802          37,452  
 

Bupa Arabia for Cooperative Insurance Co.

     Insurance          5,772          320,115  
 

Co. for Cooperative Insurance

     Insurance          5,720          192,169  
 

Dallah Healthcare Co.

     Health Care Providers & Services          2,912          110,720  
a  

Dar Al Arkan Real Estate Development Co.

     Real Estate Management & Development          41,197          173,116  
 

Dr Sulaiman Al Habib Medical Services Group Co.

     Health Care Providers & Services          6,448          405,058  
 

Elm Co.

     IT Services          1,989          413,662  
a  

Emaar Economic City

     Real Estate Management & Development          28,444          60,673  
 

Etihad Etisalat Co.

     Wireless Telecommunication Services          29,380          348,993  
 

Jarir Marketing Co.

     Specialty Retail          45,786          177,018  
 

Mobile Telecommunications Co. Saudi Arabia

     Wireless Telecommunication Services          34,281          120,289  
 

Mouwasat Medical Services Co.

     Health Care Providers & Services          7,397          203,147  
 

Nahdi Medical Co.

     Consumer Staples Distribution & Retail          3,042          116,961  
a  

National Industrialization Co., Class C

     Chemicals          25,519          86,414  
 

Power & Water Utility Co. for Jubail & Yanbu

     Multi-Utilities          5,837          97,427  
 

Qassim Cement Co.

     Construction Materials          3,432          58,657  
a  

Rabigh Refining & Petrochemical Co.

     Oil, Gas & Consumable Fuels          32,526          94,011  
 

Riyad Bank

     Banks          114,452          846,843  
 

SABIC Agri-Nutrients Co.

     Chemicals          18,161          644,033  
 

Sahara International Petrochemical Co.

     Chemicals          27,625          278,427  
 

Saudi Airlines Catering Co.

     Commercial Services & Supplies          3,133          86,043  
a  

Saudi Arabian Mining Co.

     Metals & Mining          94,341          1,014,987  
b  

Saudi Arabian Oil Co.

     Oil, Gas & Consumable Fuels          239,772          2,237,604  
 

Saudi Aramco Base Oil Co.

     Chemicals          3,926          155,765  
 

Saudi Awwal Bank

     Banks          73,775          678,649  
 

Saudi Basic Industries Corp.

     Chemicals          70,070          1,541,355  
 

Saudi Cement Co.

     Construction Materials          5,837          81,241  
 

Saudi Electricity Co.

     Electric Utilities          60,853          309,258  
 

Saudi Industrial Investment Group

     Chemicals          28,795          182,423  
 

Saudi Investment Bank

     Banks          38,155          160,740  
a  

Saudi Kayan Petrochemical Co.

     Chemicals          57,226          190,730  
 

Saudi National Bank

     Banks          226,876          1,984,171  
a  

Saudi Research & Media Group

     Media          2,509          109,981  
 

Saudi Tadawul Group Holding Co.

     Capital Markets          3,731          191,999  
 

Saudi Telecom Co.

     Diversified Telecommunication Services          139,646          1,400,016  
 

Saudia Dairy & Foodstuff Co.

     Food Products          1,196          102,684  
 

Savola Group

     Food Products          20,371          195,810  
a  

Seera Group Holding

     Hotels, Restaurants & Leisure          11,453          77,413  
 

Southern Province Cement Co.

     Construction Materials          5,343          62,826  
 

United Electronics Co.

     Specialty Retail          3,055          61,500  
 

Yamama Cement Co.

     Construction Materials          7,722          68,357  
 

Yanbu Cement Co.

     Construction Materials          6,006          54,448  

 

 

           
254             

Semiannual Report

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Saudi Arabia ETF (continued)

 

           Industry                Shares                    Value  
 

Common Stocks (continued)

            
    Saudi Arabia (continued)                         
 

Yanbu National Petrochemical Co.

     Chemicals          21,463        $ 238,068  
              

 

 

 
 

Total Common Stocks (Cost $21,159,946)

 

       22,190,169  
              

 

 

 
 

Total Investments (Cost $21,159,946) 99.9%

 

       22,190,169  
 

Other Assets, less Liabilities 0.1%

               16,589  
              

 

 

 
 

Net Assets 100.0%

             $ 22,206,758  
              

 

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $2,237,604, representing 10.1% of net assets.

 

           
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             255


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE South Africa ETF

 

   

Six Months Ended
September 30, 2023

(unaudited)

    Year Ended March 31,  
     2023     2022     2021     2020     2019a  
Per share operating performance
(for a share outstanding throughout the period)
           

Net asset value, beginning of period

    $22.44       $29.79       $26.22       $14.81       $ 26.62       $24.42  
       
Income from investment operationsb:            

Net investment incomec

    0.42       0.94       0.94       1.03       2.65       0.22  

Net realized and unrealized gains (losses)

    (2.43     (7.21     3.35       11.33       (11.76     2.04  
       

Total from investment operations

    (2.01     (6.27     4.29       12.36       (9.11     2.26  
       

Less distributions from net investment income

    (0.43     (1.08     (0.72     (0.95     (2.70     (0.06
       

Net asset value, end of period

    $20.00       $22.44       $29.79       $26.22       $ 14.81       $26.62  
       

Total returnd

    (9.14)%       (20.97)%       16.82%       85.24%       (38.46)%       9.26%  
Ratios to average net assetse            

Total expenses

    0.19%       0.19%       0.19%       0.19%       0.19%       0.19%  

Net investment income

    3.88%       4.03%       3.56%       4.94%       10.42%       1.75%  
Supplemental data            

Net assets, end of period (000’s)

    $2,000       $2,244       $5,958       $2,622       $1,481       $2,662  

Portfolio turnover ratef

    5.80%g       7.91%g       13.19%g       11.08%g       21.44%g       7.12%  

aFor the period October 10, 2018 (commencement of operations) to March 31, 2019.

 

bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

 

cBased on average daily shares outstanding.

 

dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

 

eRatios are annualized for periods less than one year.

 

fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

 

 

 

 

 

gPortfolio turnover rate excluding cash creations was as follows:     5.80%       7.91%       13.19%       11.08%       21.44%        

 

           
256             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE South Africa ETF

 

           Industry            Shares                Value  
 

Common Stocks 100.0%

            
    Luxembourg 1.5%                         
 

Reinet Investments SCA

     Capital Markets          1,322        $ 29,173  
              

 

 

 
    Romania 1.3%                         
a  

NEPI Rockcastle NV

     Real Estate Management & Development          4,730          26,136  
              

 

 

 
    South Africa 93.9%                         
 

Absa Group Ltd.

     Banks          8,088          75,057  
 

African Rainbow Minerals Ltd.

     Metals & Mining          1,026          9,263  
 

Anglo American Platinum Ltd.

     Metals & Mining          552          20,685  
 

Aspen Pharmacare Holdings Ltd.

     Pharmaceuticals          3,600          32,833  
 

Bid Corp. Ltd.

     Consumer Staples Distribution & Retail          3,252          72,888  
 

Bidvest Group Ltd.

     Industrial Conglomerates          3,320          48,071  
 

Capitec Bank Holdings Ltd.

     Banks          830          75,616  
 

Clicks Group Ltd.

     Consumer Staples Distribution & Retail          2,386          32,758  
a  

Discovery Ltd.

     Insurance          5,196          37,829  
 

Exxaro Resources Ltd.

     Oil, Gas & Consumable Fuels          2,356          21,557  
 

FirstRand Ltd.

     Financial Services          48,950          165,926  
 

Foschini Group Ltd.

     Specialty Retail          3,138          16,472  
 

Gold Fields Ltd.

     Metals & Mining          8,606          93,787  
 

Growthpoint Properties Ltd.

     Diversified REITs          33,256          18,623  
 

Harmony Gold Mining Co. Ltd.

     Metals & Mining          5,306          20,002  
 

Impala Platinum Holdings Ltd.

     Metals & Mining          7,872          41,308  
 

Investec Ltd.

     Capital Markets          2,638          15,252  
 

Kumba Iron Ore Ltd.

     Metals & Mining          530          12,794  
 

Life Healthcare Group Holdings Ltd.

     Health Care Providers & Services          13,424          14,436  
 

Mr Price Group Ltd.

     Specialty Retail          2,430          17,922  
 

MTN Group Ltd.

     Wireless Telecommunication Services          17,634          105,630  
a  

MultiChoice Group

     Media          2,852          11,209  
 

Naspers Ltd., Class N

     Broadline Retail          1,836          294,856  
 

Nedbank Group Ltd.

     Banks          4,488          48,200  
 

Northam Platinum Holdings Ltd.

     Metals & Mining          3,520          21,453  
 

Old Mutual Ltd.

     Insurance          43,244          27,683  
 

OUTsurance Group Ltd.

     Insurance          8,212          18,639  
b  

Pepkor Holdings Ltd.

     Specialty Retail          20,150          18,450  
 

Remgro Ltd.

     Financial Services          4,964          39,128  
 

Sanlam Ltd.

     Insurance          16,932          59,021  
 

Santam Ltd.

     Insurance          394          6,315  
 

Sasol Ltd.

     Chemicals          5,644          78,198  
 

Shoprite Holdings Ltd.

     Consumer Staples Distribution & Retail          4,674          59,504  
 

Sibanye Stillwater Ltd.

     Metals & Mining          27,368          42,462  
 

Standard Bank Group Ltd.

     Banks          13,086          127,613  
 

Tiger Brands Ltd.

     Food Products          1,520          12,381  
 

Vodacom Group Ltd.

     Wireless Telecommunication Services          5,826          32,706  
 

Woolworths Holdings Ltd.

     Broadline Retail          8,810          31,720  
              

 

 

 
                 1,878,247  
              

 

 

 
    United Kingdom 3.3%                         
 

Anglo gold Ashanti PLC

     Metals & Mining          4,102          66,348  
              

 

 

 
 

Total Common Stocks (Cost $2,618,881)

               1,999,904  
              

 

 

 
 

Total Investments (Cost $2,618,881) 100.0%

               1,999,904  
 

Other Assets, less Liabilities 0.0%

               (65
              

 

 

 
 

Net Assets 100.0%

             $ 1,999,839  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $18,450, representing 0.9% of net assets.

 

           
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The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             257


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE South Korea ETF

 

   

Six Months Ended
September 30, 2023

(unaudited)

    Year Ended March 31,  
     2023     2022     2021     2020     2019  
Per share operating performance
(for a share outstanding throughout the period)
           

Net asset value, beginning of period

    $21.08       $25.57       $31.48       $16.52       $21.19       $25.98  
       
Income from investment operationsa:            

Net investment incomeb

    0.09       0.49       0.55       0.54       0.36       0.40  

Net realized and unrealized gains (losses)

    (0.62     (4.37     (5.87     14.72       (4.58     (4.81
       

Total from investment operations

    (0.53     (3.88     (5.32     15.26       (4.22     (4.41
       

Less distributions from net investment income

    (0.17     (0.61     (0.59     (0.30     (0.45     (0.38
       

Net asset value, end of period

    $20.38       $21.08       $25.57       $31.48       $16.52       $21.19  
       

Total returnc

    (2.61)%       (15.00)%       (17.15)%       92.55%       (20.24)%       (16.92)%  
Ratios to average net assetsd            

Expenses before waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Expenses net of waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Net investment income

    0.79%       2.36%       1.86%       2.07%       1.78%       1.74%  
Supplemental data            

Net assets, end of period (000’s)

    $320,000       $293,049       $61,361       $62,966       $11,562       $16,948  

Portfolio turnover ratee

    5.83%f       5.97%f       27.38%f       8.65%f       21.72%f       5.21%  

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

 

bBased on average daily shares outstanding.

 

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

 

dRatios are annualized for periods less than one year.

 

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     3.90%       5.97%       10.53%       8.65%       8.02%        

 

           
258             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE South Korea ETF

 

           Industry            Shares                Value  
 

Common Stocks 94.0%

            
    South Korea 94.0%                         
a  

Alteogen, Inc., Class A

     Biotechnology          15,554        $ 784,962  
 

Amorepacific Corp., Class H

     Personal Care Products          13,398          1,211,321  
 

AMOREPACIFIC Group, Class A

     Personal Care Products          11,550          260,632  
 

BGF retail Co. Ltd.

     Consumer Staples Distribution & Retail          3,696          386,198  
 

BNK Financial Group, Inc., Class H

     Banks          126,588          642,602  
 

Celltrion Healthcare Co. Ltd., Class A

     Health Care Providers & Services          45,122          2,106,630  
a  

Celltrion Pharm, Inc., Class A

     Pharmaceuticals          9,240          457,412  
 

Celltrion, Inc., Class A

     Biotechnology          50,512          5,210,664  
 

Cheil Worldwide, Inc., Class A

     Media          31,724          471,370  
 

CJ CheilJedang Corp., Class A

     Food Products          3,542          805,835  
 

CJ Corp., Class A

     Industrial Conglomerates          5,852          389,439  
a  

CJ ENM Co. Ltd., Class A

     Entertainment          4,620          195,153  
 

CJ Logistics Corp., Class A

     Air Freight & Logistics          3,696          221,311  
a  

CosmoAM&T Co. Ltd.

     Technology Hardware, Storage & Peripherals          10,164          1,125,316  
 

Coway Co. Ltd.

     Household Durables          25,872          791,843  
a  

Daewoo Engineering & Construction Co. Ltd., Class A

     Construction & Engineering          90,706          282,658  
 

DB Insurance Co. Ltd., Class A

     Insurance          20,328          1,346,764  
 

DGB Financial Group, Inc., Class A

     Banks          70,224          409,562  
 

DL E&C Co. Ltd., Class A

     Construction & Engineering          13,552          312,839  
 

DL Holdings Co. Ltd., Class A

     Chemicals          5,698          179,461  
 

Dongsuh Cos., Inc., Class A

     Consumer Staples Distribution & Retail          13,860          172,762  
 

Doosan Bobcat, Inc., Class A

     Machinery          22,484          849,773  
a  

Doosan Enerbility Co. Ltd., Class H

     Electrical Equipment          194,348          2,366,339  
 

Ecopro BM Co. Ltd.

     Electrical Equipment          20,944          3,926,806  
 

Ecopro Co. Ltd.

     Chemicals          8,778          5,861,107  
 

E-MART, Inc., Class A

     Consumer Staples Distribution & Retail          8,932          465,994  
 

F&F Co. Ltd.

     Textiles, Apparel & Luxury Goods          7,238          606,117  
 

Fila Holdings Corp.

     Textiles, Apparel & Luxury Goods          23,562          630,345  
 

Green Cross Corp.

     Biotechnology          2,464          198,486  
 

GS Engineering & Construction Corp.

     Construction & Engineering          28,490          296,217  
 

GS Holdings Corp.

     Industrial Conglomerates          20,482          605,626  
 

GS Retail Co. Ltd.

     Consumer Staples Distribution & Retail          18,018          315,789  
 

Hana Financial Group, Inc.

     Banks          131,824          4,146,976  
 

Hanjin Kal Corp.

     Passenger Airlines          14,476          454,319  
 

Hankook Tire & Technology Co. Ltd.

     Automobile Components          33,726          989,736  
 

Hanmi Pharm Co. Ltd.

     Pharmaceuticals          3,542          784,836  
 

Hanmi Science Co. Ltd.

     Pharmaceuticals          11,088          270,750  
 

Hanon Systems

     Automobile Components          73,612          513,877  
 

Hanwha Aerospace Co. Ltd.

     Aerospace & Defense          15,862          1,229,558  
 

Hanwha Corp.

     Industrial Conglomerates          20,636          366,261  
 

Hanwha Corp.

     Industrial Conglomerates          10,164          103,870  
a  

Hanwha Life Insurance Co. Ltd.

     Insurance          164,626          348,308  
 

aHanwha Ocean Co. Ltd., Class A

     Machinery          21,868          501,567  
a  

Hanwha Solutions Corp.

     Chemicals          47,432          1,045,726  
 

HD Hyundai Co. Ltd.

     Oil, Gas & Consumable Fuels          19,250          945,809  
a  

HD Hyundai Heavy Industries Co. Ltd.

     Machinery          8,624          774,588  
 

HD Hyundai Infracore Co. Ltd.

     Machinery          63,140          495,986  
a  

HD Korea Shipbuilding & Offshore Engineering Co. Ltd.

     Machinery          19,712          1,621,485  
 

Hite Jinro Co. Ltd.

     Beverages          13,860          194,024  
 

HL Mando Co. Ltd.

     Automobile Components          15,092          469,738  
a  

HLB, Inc.

     Health Care Equipment & Supplies          49,126          1,092,174  
 

HMM Co. Ltd.

     Marine Transportation          133,364          1,607,010  
 

Hotel Shilla Co. Ltd.

     Specialty Retail          14,168          889,306  
a  

HYBE Co. Ltd.

     Entertainment          8,316          1,466,732  
 

Hyundai Department Store Co. Ltd.

     Broadline Retail          6,622          312,108  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE South Korea ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    South Korea (continued)                         
 

Hyundai Engineering & Construction Co. Ltd.

     Construction & Engineering          33,264        $ 893,597  
 

Hyundai Glovis Co. Ltd.

     Air Freight & Logistics          8,470          1,157,454  
 

Hyundai Marine & Fire Insurance Co. Ltd.

     Insurance          26,642          640,679  
a  

Hyundai Mipo Dockyard Co. Ltd.

     Machinery          9,240          568,341  
 

Hyundai Mobis Co. Ltd.

     Automobile Components          28,336          5,050,250  
 

Hyundai Motor Co.

     Automobiles          63,140          8,941,792  
 

Hyundai Steel Co.

     Metals & Mining          38,500          1,085,612  
 

Hyundai Wia Corp.

     Automobile Components          7,238          341,678  
 

Industrial Bank of Korea

     Banks          124,586          1,034,985  
 

Kakao Corp.

     Interactive Media & Services          139,062          4,529,254  
a  

Kakao Games Corp.

     Entertainment          18,480          348,537  
 

KakaoBank Corp.

     Banks          98,098          1,697,487  
a  

Kakaopay Corp.

     Financial Services          9,702          292,987  
 

Kangwon Land, Inc.

     Hotels, Restaurants & Leisure          48,664          544,558  
 

KB Financial Group, Inc.

     Banks        172,788          7,081,056  
 

KCC Corp.

     Chemicals          1,848          337,581  
 

KEPCO Plant Service & Engineering Co. Ltd.

     Commercial Services & Supplies          9,548          232,084  
 

Kia Corp.

     Automobiles          111,958          6,753,654  
 

Korea Aerospace Industries Ltd.

     Aerospace & Defense          32,186          1,163,982  
a  

Korea Electric Power Corp.

     Electric Utilities          116,732          1,558,849  
a  

Korea Gas Corp.

     Gas Utilities          11,704          207,296  
 

Korea Investment Holdings Co. Ltd.

     Capital Markets          17,402          684,783  
 

Korea Zinc Co. Ltd.

     Metals & Mining          4,620          1,732,414  
 

Korean Air Lines Co. Ltd.

     Passenger Airlines          84,700          1,365,218  
a  

Krafton, Inc.

     Entertainment          13,244          1,478,099  
 

KT&G Corp.

     Tobacco          47,124          3,013,785  
 

Kumho Petrochemical Co. Ltd.

     Chemicals          7,700          765,207  
 

L&F Co. Ltd.

     Electronic Equipment, Instruments & Components          11,396          1,464,404  
 

LG Chem Ltd.

     Chemicals          21,714          7,989,478  
 

LG Corp.

     Industrial Conglomerates          41,118          2,553,497  
a  

LG Display Co. Ltd.

     Electronic Equipment, Instruments & Components          102,102          991,965  
 

LG Electronics, Inc.

     Household Durables          49,280          3,684,861  
a  

LG Energy Solution Ltd.

     Electrical Equipment          18,326          6,471,275  
 

LG H&H Co. Ltd.

     Personal Care Products          4,312          1,426,788  
 

LG Innotek Co. Ltd.

     Electronic Equipment, Instruments & Components          6,468          1,171,948  
 

LG Uplus Corp.

     Diversified Telecommunication Services          96,866          743,687  
 

Lotte Chemical Corp.

     Chemicals          8,316          844,912  
 

Lotte Chilsung Beverage Co. Ltd.

     Beverages          1,540          142,998  
 

Lotte Corp.

     Industrial Conglomerates          11,858          223,645  
 

Lotte Energy Materials Corp.

     Electronic Equipment, Instruments & Components          9,702          286,157  
 

LOTTE Fine Chemical Co. Ltd.

     Chemicals          6,622          287,081  
 

Lotte Shopping Co. Ltd.

     Broadline Retail          5,082          269,277  
 

LS Corp.

     Electrical Equipment          7,854          591,349  
 

Meritz Financial Group, Inc.

     Financial Services          46,046          1,883,607  
 

Mirae Asset Securities Co. Ltd.

     Capital Markets          119,658          571,954  
 

Mirae Asset Securities Co. Ltd.

     Capital Markets          61,908          162,179  
 

NAVER Corp.

     Interactive Media & Services          65,912          9,842,351  
 

NCSoft Corp.

     Entertainment          7,238          1,193,460  
a,b  

Netmarble Corp.

     Entertainment          9,856          307,498  
 

NH Investment & Securities Co. Ltd., Class C

     Capital Markets          62,216          471,208  
 

NongShim Co. Ltd.

     Food Products          1,540          539,810  
a  

OCI Co. Ltd.

     Chemicals          2,618          236,501  
 

OCI Holdings Co. Ltd.

     Chemicals          5,698          411,705  
 

Orion Corp.

     Food Products          9,856          937,102  
 

Ottogi Corp.

     Food Products          616          166,622  
 

Pan Ocean Co. Ltd.

     Marine Transportation          110,418          405,864  
a  

Paradise Co. Ltd.

     Hotels, Restaurants & Leisure          21,252          256,240  

 

           
260             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE South Korea ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

            
    South Korea (continued)                         
a  

Pearl Abyss Corp.

     Entertainment          15,092        $ 521,185  
 

POSCO Future M Co. Ltd.

     Electrical Equipment          13,090          3,487,368  
 

POSCO Holdings, Inc.

     Metals & Mining          34,342          13,615,659  
 

Posco International Corp.

     Trading Companies & Distributors          20,790          1,100,049  
 

S-1 Corp.

     Commercial Services & Supplies          8,778          368,189  
a,b  

Samsung Biologics Co. Ltd.

     Life Sciences Tools & Services          8,116          4,095,891  
 

Samsung C&T Corp.

     Industrial Conglomerates          38,346          3,057,677  
 

Samsung Card Co. Ltd.

     Consumer Finance          13,706          309,284  
 

Samsung Electro-Mechanics Co. Ltd.

     Electronic Equipment, Instruments & Components          25,410          2,587,323  
 

Samsung Electronics Co. Ltd.

     Technology Hardware, Storage & Peripherals          1,086,624          55,080,096  
a  

Samsung Engineering Co. Ltd.

     Construction & Engineering          72,072          1,615,665  
 

Samsung Fire & Marine Insurance Co. Ltd.

     Insurance          15,092          2,913,492  
a  

Samsung Heavy Industries Co. Ltd.

     Machinery          297,836          1,730,424  
 

Samsung Life Insurance Co. Ltd.

     Insurance          34,034          1,773,077  
 

Samsung SDI Co. Ltd.

     Electronic Equipment, Instruments & Components          24,024          9,115,376  
 

Samsung SDS Co. Ltd.

     IT Services          16,632          1,666,405  
 

Samsung Securities Co. Ltd.

     Capital Markets          28,952          788,488  
 

SD Biosensor, Inc.

     Health Care Equipment & Supplies          15,400          129,760  
 

Seegene, Inc.

     Biotechnology          11,858          187,615  
 

Shinhan Financial Group Co. Ltd.

     Banks          226,072          5,964,253  
 

Shinsegae, Inc.

     Broadline Retail          3,234          455,598  
a  

SK Biopharmaceuticals Co. Ltd.

     Pharmaceuticals          12,936          826,355  
a  

SK Bioscience Co. Ltd.

     Biotechnology          10,934          548,564  
 

SK Chemicals Co. Ltd.

     Chemicals          4,466          208,837  
 

SK Hynix, Inc.

     Semiconductors & Semiconductor Equipment          247,478          21,035,813  
a,b  

SK IE Technology Co. Ltd.

     Chemicals          11,704          641,838  
a  

SK Innovation Co. Ltd.

     Oil, Gas & Consumable Fuels          26,796          2,954,828  
 

SK Networks Co. Ltd.

     Trading Companies & Distributors          56,672          256,187  
a  

SK Square Co. Ltd.

     Industrial Conglomerates          45,122          1,419,467  
 

SK, Inc.

     Industrial Conglomerates          16,016          1,735,245  
 

SKC Co. Ltd.

     Chemicals          8,316          467,752  
 

S-Oil Corp.

     Oil, Gas & Consumable Fuels          18,788          1,102,719  
 

Solus Advanced Materials Co. Ltd.

     Electronic Equipment, Instruments & Components          6,160          133,070  
 

SSANGYONG C&E Co. Ltd.

     Construction Materials          49,896          203,001  
 

Wemade Co. Ltd.

     Entertainment          7,854          214,771  
 

Woori Financial Group, Inc.

     Banks          301,840          2,742,373  
 

Yuhan Corp.

     Pharmaceuticals          24,178          1,358,154  
              

 

 

 
 

Total Common Stocks
(Cost $307,854,721)

               300,954,567  
              

 

 

 
    Preferred Stocks 3.6%                         
    South Korea 3.6%                         
c  

Amorepacific Corp., 1.908%, pfd.

     Personal Care Products          4,928          131,107  
c  

CJ CheilJedang Corp., 1.494%, pfd.

     Food Products          616          61,125  
c  

Hyundai Motor Co., 1.416%, pfd.

     Automobiles          16,016          1,256,925  
c  

Hyundai Motor Co., 1.427%, pfd.

     Automobiles          10,010          779,644  
c  

LG Chem Ltd., 3.221%, pfd.

     Chemicals          3,542          818,959  
c  

LG Electronics, Inc., 1.659%, pfd.

     Household Durables          8,008          268,239  
c  

LG H&H Co. Ltd., 2.322%, pfd.

     Personal Care Products          924          119,420  
c  

Samsung Electronics Co. Ltd., 1.989%, pfd.

     Technology Hardware, Storage & Peripherals          189,112          7,637,916  
c  

Samsung Fire & Marine Insurance Co. Ltd., 7.3%, pfd.

     Insurance          1,232          172,648  
c  

Samsung SDI Co. Ltd., 0.442%, pfd.

     Electronic Equipment, Instruments & Components          616          111,614  
              

 

 

 
 

Total Preferred Stocks
(Cost $11,709,538)

               11,357,597  
              

 

 

 

 

           
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SCHEDULE OF INVESTMENTS

 

Franklin FTSE South Korea ETF (continued)

 

           Industry            Shares                Value  
 

Right 0.0%

            
    South Korea 0.0%                         
a  

Hanwha Ocean Co. Ltd.

     Machinery          7,219        $ 48,683  
              

 

 

 
 

Total Rights (Cost $0)

               48,683  
              

 

 

 
 

Total Investments
(Cost $319,564,259) 97.6%

               312,360,847  
 

Other Assets, less Liabilities 2.4%

               7,638,806  
              

 

 

 
 

Net Assets 100.0%

             $ 319,999,653  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $5,045,227, representing 1.6% of net assets. cVariable rate security. The rate shown represents the yield at period end.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type     

Number of

Contracts

    

Notional

Amount*

    

Expiration

Date

    

Value/Unrealized

Appreciation

(Depreciation)

 
Index Contracts               

Kospi 200 Mini

     Long        23      $ 1,401,919        12/14/23      $ (19,714

*As of period end.

 

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Switzerland ETF

 

   

Six Months Ended

September 30, 2023

(unaudited)

     Year Ended March 31,  
      2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

    $31.21        $34.00        $30.36        $24.44        $23.86        $23.11  
 

 

 

 
Income from investment operationsa:                 

Net investment incomeb

    0.49        0.66        0.70        0.88        1.06        0.53  

Net realized and unrealized gains (losses)

    (0.94      (2.86      3.62        5.74        (0.16      0.83  
 

 

 

 

Total from investment operations

    (0.45      (2.20      4.32        6.62        0.90        1.36  
 

 

 

 
Less distributions from net investment income     (0.74      (0.59      (0.68      (0.70      (0.32      (0.61
 

 

 

 

Net asset value, end of period

    $30.02        $31.21        $34.00        $30.36        $24.44        $23.86  
 

 

 

 

Total returnc

    (1.61)%        (6.23)%        14.22%        27.54%        3.70%        6.13%  
Ratios to average net assetsd                 

Total expenses

    0.09%        0.09%        0.09%        0.09%        0.09%        0.09%  

Net investment income

    3.07%        2.24%        2.07%        3.13%        4.12%        2.35%  
Supplemental data                 

Net assets, end of period (000’s)

    $42,022        $49,941        $47,593        $48,570        $34,213        $2,386  

Portfolio turnover ratee

    15.10%f        7.89%f        13.99%f        12.59%f        16.25%f        14.06%f  

 

 

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

 

bBased on average daily shares outstanding.

 

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

 

dRatios are annualized for periods less than one year.

 

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:

    15.10%        7.89%        13.99%        12.59%        16.25%         

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Switzerland ETF

 

           Industry            Shares                Value  
 

Common Stocks 98.1%

            
    Switzerland 95.6%                         
 

ABB Ltd.

     Electrical Equipment          43,456        $ 1,558,108  
 

Adecco Group AG

     Professional Services          5,222          215,547  
 

Alcon, Inc.

     Health Care Equipment & Supplies          15,260          1,183,367  
 

Bachem Holding AG, Class B

     Life Sciences Tools & Services          1,022          75,968  
 

Baloise Holding AG

     Insurance          1,484          215,592  
 

Banque Cantonale Vaudoise

     Banks          924          97,016  
 

Barry Callebaut AG

     Food Products          117          186,474  
 

Belimo Holding AG

     Building Products          308          146,728  
 

BKW AG

     Electric Utilities          588          103,806  
 

Chocoladefabriken Lindt & Spruengli AG

     Food Products          66          735,177  
 

Cie Financiere Richemont SA, Class A

     Textiles, Apparel & Luxury Goods          14,392          1,762,029  
 

Clariant AG

     Chemicals          7,420          117,610  
 

DKSH Holding AG

     Professional Services          1,176          79,767  
a  

Dufry AG

     Specialty Retail          3,360          128,222  
 

Emmi AG

     Food Products          70          66,113  
 

EMS-Chemie Holding AG

     Chemicals          234          159,359  
 

Flughafen Zurich AG

     Transportation Infrastructure          616          117,705  
 

Geberit AG

     Building Products          1,092          547,910  
 

Georg Fischer AG

     Machinery          2,694          152,104  
 

Givaudan SA

     Chemicals          262          857,486  
 

Helvetia Holding AG

     Insurance          1,148          161,132  
 

Julius Baer Group Ltd.

     Capital Markets          6,692          430,576  
 

Kuehne & Nagel International AG

     Marine Transportation          1,652          471,329  
 

Logitech International SA

     Technology Hardware, Storage & Peripherals          5,166          357,351  
 

Lonza Group AG

     Life Sciences Tools & Services          2,295          1,067,722  
 

Nestle SA

     Food Products          66,752          7,569,799  
 

Novartis AG

     Pharmaceuticals          52,710          5,408,710  
 

Partners Group Holding AG

     Capital Markets          725          819,865  
 

PSP Swiss Property AG

     Real Estate Management & Development          1,484          175,523  
 

Roche Holding AG

     Pharmaceuticals          17,626          4,825,570  
 

Roche Holding AG

     Pharmaceuticals          742          218,512  
 

Schindler Holding AG, PC

     Machinery          1,344          268,859  
 

Schindler Holding AG

     Machinery          630          121,758  
 

SGS SA

     Professional Services          4,763          401,013  
 

SIG Group AG

     Containers & Packaging          10,836          268,176  
 

Sika AG

     Chemicals          4,270          1,088,038  
 

Sonova Holding AG

     Health Care Equipment & Supplies          1,666          396,467  
 

Straumann Holding AG

     Health Care Equipment & Supplies          3,508          449,429  
 

Swatch Group AG

     Textiles, Apparel & Luxury Goods          952          244,972  
 

Swatch Group AG

     Textiles, Apparel & Luxury Goods          1,722          84,425  
 

Swiss Life Holding AG

     Insurance          1,092          682,321  
 

Swiss Prime Site AG

     Real Estate Management & Development          2,492          228,688  
 

Swiss Re AG

     Insurance          9,492          978,668  
 

Swisscom AG

     Diversified Telecommunication Services          840          499,703  
 

Tecan Group AG

     Life Sciences Tools & Services          420          141,959  
 

Temenos AG

     Software          1,988          139,994  
 

UBS Group AG

     Capital Markets          79,674          1,976,173  
b  

VAT Group AG

     Machinery          840          302,099  
 

Zurich Insurance Group AG

     Insurance          4,158          1,909,462  
              

 

 

 
                 40,194,381  
              

 

 

 

 

           
264             

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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Switzerland ETF (continued)

 

      Industry       Shares                Value  

Common Stocks (continued)

         

United States 2.5%

         

Holcim AG, Class B

   Construction Materials     16,268        $ 1,045,292  
         

 

 

 

Total Common Stocks
(Cost $41,896,053)

            41,239,673  
         

 

 

 

Total Investments
(Cost $41,896,053) 98.1%

            41,239,673  

Other Assets, less Liabilities 1.9%

            782,222  
         

 

 

 

Net Assets 100.0%

          $ 42,021,895  
         

 

 

 

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $302,099, representing 0.7% of net assets.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type     

Number of

Contracts

    

Notional

Amount*

    

Expiration

Date

    

Value/Unrealized

Appreciation

(Depreciation)

 
Equity Contracts               

Swiss Mid Cap Future Index

     Long        28        $766,113        12/15/23        $(19,698)  

*As of period end.

 

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             265


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE Taiwan ETF

 

   

Six Months Ended

September 30, 2023

(unaudited)

     Year Ended March 31,  
      2023      2022      2021      2020      2019  
Per share operating performance
(for a share outstanding throughout the period)
                

Net asset value, beginning of period

    $37.05        $43.67        $41.12        $23.18        $24.72        $26.34  
 

 

 

 
Income from investment operationsa:                 

Net investment incomeb

    1.17        1.25        0.98        0.74        0.89        0.47  

Net realized and unrealized gains (losses)

    (1.72      (6.84      2.64        17.99        (1.56      (1.85
 

 

 

 

Total from investment operations

    (0.55      (5.59      3.62        18.73        (0.67      (1.38
 

 

 

 
Less distributions from net investment income     (0.16      (1.03      (1.07      (0.79      (0.87      (0.24
 

 

 

 

Net asset value, end of period

    $36.34        $37.05        $43.67        $41.12        $23.18        $24.72  
 

 

 

 

Total returnc

    (1.51)%        (12.55)%        8.72%        81.35%        (3.29)%        (5.15)%  
Ratios to average net assetsd                 

Total expenses

    0.19%        0.19%        0.19%        0.19%        0.19%        0.19%  

Net investment income

    6.19%        3.52%        2.20%        2.24%        3.39%        1.96%  
Supplemental data                 

Net assets, end of period (000’s)

    $170,789        $137,094        $43,667        $32,897        $13,906        $14,834  

Portfolio turnover ratee

    3.79%f        11.88%f        17.76%f        10.63%f        12.57%f        8.71%  

 

 

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

 

bBased on average daily shares outstanding.

 

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

 

dRatios are annualized for periods less than one year.

 

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:

    3.79%        5.40%        7.86%        10.63%        12.57%         

 

           
266             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE Taiwan ETF

 

           Industry            Shares                Value  
 

Common Stocks 99.6%

 

    China 1.0%                         
 

Airtac International Group, Class A

     Machinery          34,250        $ 1,038,731  
 

Silergy Corp.

     Semiconductors & Semiconductor Equipment          72,690          685,680  
              

 

 

 
                 1,724,411  
              

 

 

 
    Taiwan 98.3%                         
 

Accton Technology Corp.

     Communications Equipment          118,010          1,802,293  
 

Acer, Inc., Class H

     Technology Hardware, Storage & Peripherals          633,000          711,820  
 

Advanced Energy Solution Holding Co. Ltd.

     Electrical Equipment          5,640          111,645  
 

Advantech Co. Ltd.

     Technology Hardware, Storage & Peripherals          101,388          1,083,591  
 

Alchip Technologies Ltd.

     Semiconductors & Semiconductor Equipment          15,500          1,291,647  
 

ASE Technology Holding Co. Ltd., Class A

     Semiconductors & Semiconductor Equipment          760,700              2,580,402  
 

Asia Cement Corp.

     Construction Materials          545,000          671,110  
 

ASMedia Technology, Inc.

     Semiconductors & Semiconductor Equipment          8,940          319,874  
 

ASPEED Technology, Inc.

     Semiconductors & Semiconductor Equipment          6,780          580,744  
 

Asustek Computer, Inc.

     Technology Hardware, Storage & Peripherals          156,560          1,779,945  
 

AUO Corp., Class H

     Electronic Equipment, Instruments & Components          1,567,000          796,109  
 

Capital Securities Corp., Class A

     Capital Markets          445,000          201,267  
 

Catcher Technology Co. Ltd.

     Technology Hardware, Storage & Peripherals          145,260          821,237  
 

Cathay Financial Holding Co. Ltd., Class A

     Insurance          2,049,000          2,827,805  
 

Chailease Holding Co. Ltd., Class A

     Financial Services          313,119          1,755,690  
 

Chang Hwa Commercial Bank Ltd., Class A

     Banks          1,512,633          808,318  
 

Cheng Shin Rubber Industry Co. Ltd., Class A

     Automobile Components          408,000          537,166  
 

Chicony Electronics Co. Ltd.

     Technology Hardware, Storage & Peripherals          137,000          490,188  
 

China Airlines Ltd., Class A

     Passenger Airlines          636,000          417,689  
a  

China Development Financial Holding Corp., Class A

     Insurance          3,507,000          1,281,969  
 

China Motor Corp., Class A

     Automobiles          56,720          171,317  
 

China Steel Corp., Class A

     Metals & Mining          2,745,000          2,147,155  
 

Chunghwa Telecom Co. Ltd.

     Diversified Telecommunication Services          846,680          3,042,545  
 

Compal Electronics, Inc., Class H

     Technology Hardware, Storage & Peripherals          915,000          870,200  
 

CTBC Financial Holding Co. Ltd., Class A

     Banks          4,056,000          3,078,391  
 

Delta Electronics, Inc., Class A

     Electronic Equipment, Instruments & Components          481,290          4,838,172  
 

E Ink Holdings, Inc.

     Electronic Equipment, Instruments & Components          197,700          1,099,337  
 

E.Sun Financial Holding Co. Ltd., Class A

     Banks          3,310,000          2,486,563  
 

Eclat Textile Co. Ltd., Class A

     Textiles, Apparel & Luxury Goods          43,760          660,186  
 

eMemory Technology, Inc.

     Semiconductors & Semiconductor Equipment          15,457          964,850  
a  

Ennostar, Inc., Class H

     Semiconductors & Semiconductor Equipment          157,940          214,791  
 

Eternal Materials Co. Ltd., Class H

     Chemicals          213,985          187,930  
 

Eva Airways Corp., Class H

     Passenger Airlines          567,000          522,552  
 

Evergreen Marine Corp. Taiwan Ltd.

     Marine Transportation          223,600          803,507  
 

Far Eastern International Bank

     Banks          493,000          177,923  
 

Far Eastern New Century Corp.

     Industrial Conglomerates          874,000          778,411  
 

Far EasTone Telecommunications Co. Ltd.

     Wireless Telecommunication Services          356,000          801,760  
 

Feng TAY Enterprise Co. Ltd.

     Textiles, Apparel & Luxury Goods          110,104          624,186  
 

First Financial Holding Co. Ltd.

     Banks          2,389,910          1,965,648  
 

Formosa Chemicals & Fibre Corp.

     Chemicals          762,400          1,452,505  
 

Formosa Petrochemical Corp.

     Oil, Gas & Consumable Fuels          303,780          758,497  
 

Formosa Plastics Corp.

     Chemicals          830,000          2,051,827  
 

Formosa Sumco Technology Corp.

     Semiconductors & Semiconductor Equipment          14,720          65,436  
 

Formosa Taffeta Co. Ltd.

     Textiles, Apparel & Luxury Goods          224,000          176,602  
 

Foxconn Technology Co. Ltd.

     Electronic Equipment, Instruments & Components          245,420          438,678  
 

Fubon Financial Holding Co. Ltd.

     Insurance          1,723,600          3,241,044  
 

Genius Electronic Optical Co. Ltd.

     Electronic Equipment, Instruments & Components          18,270          208,279  
 

Giant Manufacturing Co. Ltd.

     Leisure Products          69,335          383,399  
 

Gigabyte Technology Co. Ltd.

     Technology Hardware, Storage & Peripherals          109,000          950,527  
 

Global Unichip Corp.

     Semiconductors & Semiconductor Equipment          19,000          803,426  
 

Globalwafers Co. Ltd.

     Semiconductors & Semiconductor Equipment          46,470          652,844  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Taiwan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    Taiwan (continued)                         
 

Hiwin Technologies Corp.

     Machinery          64,189        $ 404,655  
 

Hon Hai Precision Industry Co. Ltd.

     Electronic Equipment, Instruments & Components          2,656,000          8,556,993  
 

Hotai Motor Co. Ltd.

     Specialty Retail          72,205          1,465,104  
a  

HTC Corp.

     Technology Hardware, Storage & Peripherals          162,500          242,135  
 

Hua Nan Financial Holdings Co. Ltd., Class C

     Banks          2,262,000          1,436,502  
a  

Innolux Corp.

     Electronic Equipment, Instruments & Components          1,748,000          712,077  
 

Inventec Corp.

     Technology Hardware, Storage & Peripherals          674,000          1,023,094  
 

Largan Precision Co. Ltd.

     Electronic Equipment, Instruments & Components          23,030          1,523,181  
 

Lite-On Technology Corp.

     Technology Hardware, Storage & Peripherals          475,200          1,788,597  
 

MediaTek, Inc.

     Semiconductors & Semiconductor Equipment          330,700          7,529,763  
 

Mega Financial Holding Co. Ltd.

     Banks          2,504,000          2,924,391  
 

Micro-Star International Co. Ltd.

     Technology Hardware, Storage & Peripherals          152,700          775,787  
 

momo.com, Inc.

     Broadline Retail          12,967          201,652  
 

Nan Ya Plastics Corp.

     Chemicals          1,257,000          2,593,399  
 

Nan Ya Printed Circuit Board Corp.

     Electronic Equipment, Instruments & Components          47,000          388,021  
 

Nanya Technology Corp.

     Semiconductors & Semiconductor Equipment          182,000          369,858  
 

Nien Made Enterprise Co. Ltd.

     Household Durables          31,020          297,895  
 

Novatek Microelectronics Corp.

     Semiconductors & Semiconductor Equipment          127,310          1,668,256  
 

Oneness Biotech Co. Ltd.

     Pharmaceuticals          76,684          414,534  
 

Pegatron Corp.

     Technology Hardware, Storage & Peripherals          455,000          1,079,692  
a  

PharmaEssentia Corp.

     Biotechnology          53,000          551,664  
 

Pou Chen Corp.

     Textiles, Apparel & Luxury Goods          591,000          524,532  
 

Powerchip Semiconductor Manufacturing Corp.

     Semiconductors & Semiconductor Equipment          658,000          541,191  
 

Powertech Technology, Inc.

     Semiconductors & Semiconductor Equipment          153,100          481,394  
 

President Chain Store Corp.

     Consumer Staples Distribution & Retail          124,480          1,012,252  
 

Quanta Computer, Inc.

     Technology Hardware, Storage & Peripherals          592,000          4,392,249  
 

Realtek Semiconductor Corp.

     Semiconductors & Semiconductor Equipment          106,186          1,299,344  
 

Ruentex Development Co. Ltd.

     Real Estate Management & Development          517,710          564,533  
 

Shanghai Commercial & Savings Bank Ltd.

     Banks          832,000          1,114,729  
a  

Shin Kong Financial Holding Co. Ltd.

     Insurance          2,985,000          857,203  
 

Sino-American Silicon Products, Inc.

     Semiconductors & Semiconductor Equipment          117,980          573,810  
 

SinoPac Financial Holdings Co. Ltd.

     Banks          2,563,700          1,381,899  
 

Synnex Technology International Corp.

     Electronic Equipment, Instruments & Components          301,500          598,694  
 

Taishin Financial Holding Co. Ltd.

     Banks          2,637,000          1,462,254  
 

Taiwan Business Bank

     Banks          1,209,328          494,513  
 

Taiwan Cement Corp.

     Construction Materials          1,395,418          1,437,327  
 

Taiwan Cooperative Financial Holding Co. Ltd.

     Banks          2,359,150          1,870,920  
 

Taiwan Fertilizer Co. Ltd.

     Chemicals          164,200          299,604  
a  

Taiwan Glass Industry Corp.

     Building Products          360,000          213,008  
 

Taiwan High Speed Rail Corp.

     Transportation Infrastructure          461,000          427,718  
 

Taiwan Mobile Co. Ltd.

     Wireless Telecommunication Services          384,340          1,126,332  
 

Taiwan Secom Co. Ltd.

     Commercial Services & Supplies          60,960          201,120  
 

Taiwan Semiconductor Manufacturing Co. Ltd.

     Semiconductors & Semiconductor Equipment          2,065,300            33,461,437  
a  

Tatung Co. Ltd.

     Electrical Equipment          493,000          678,094  
 

Teco Electric & Machinery Co. Ltd.

     Electrical Equipment          430,000          692,678  
 

Transcend Information, Inc.

     Technology Hardware, Storage & Peripherals          63,960          143,848  
 

U-Ming Marine Transport Corp.

     Marine Transportation          94,000          139,338  
 

Unimicron Technology Corp.

     Electronic Equipment, Instruments & Components          289,000          1,553,306  
 

Uni-President Enterprises Corp.

     Food Products          1,067,000          2,317,086  
 

United Microelectronics Corp.

     Semiconductors & Semiconductor Equipment          2,610,000          3,654,590  
 

Vanguard International Semiconductor Corp.

     Semiconductors & Semiconductor Equipment          200,200          421,728  
 

Voltronic Power Technology Corp.

     Electrical Equipment          14,570          715,399  
 

Walsin Lihwa Corp.

     Electrical Equipment          556,000          633,844  
 

Walsin Technology Corp.

     Electronic Equipment, Instruments & Components          107,960          342,805  
 

Wan Hai Lines Ltd.

     Marine Transportation          205,130          306,928  
 

Win Semiconductors Corp.

     Semiconductors & Semiconductor Equipment          89,650          358,261  
 

Winbond Electronics Corp.

     Semiconductors & Semiconductor Equipment          654,000          512,576  

 

           
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FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE Taiwan ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    Taiwan (continued)                         
 

Wistron Corp.

     Technology Hardware, Storage & Peripherals          635,000        $ 1,996,639  
 

Wiwynn Corp.

     Technology Hardware, Storage & Peripherals          19,280          892,911  
 

Yageo Corp.

     Electronic Equipment, Instruments & Components          87,229          1,418,665  
 

Yang Ming Marine Transport Corp.

     Marine Transportation          388,656          547,216  
 

Yuanta Financial Holding Co. Ltd.

     Financial Services          2,705,890          2,099,798  
 

Yulon Motor Co. Ltd.

     Automobiles          131,000          336,829  
 

Yulon Nissan Motor Co. Ltd.

     Automobiles          5,170          30,030  
 

Zhen Ding Technology Holding Ltd.

     Electronic Equipment, Instruments & Components          139,460          425,113  
              

 

 

 
                 167,989,992  
              

 

 

 
    United States 0.3%                         
 

Parade Technologies Ltd.

     Semiconductors & Semiconductor Equipment          15,545          473,855  
              

 

 

 
 

Total Common Stocks
(Cost $168,144,674)

               170,188,258  
              

 

 

 
 

Total Investments
(Cost $168,144,674) 99.6%

               170,188,258  
 

Other Assets, less Liabilities 0.4%

               600,256  
              

 

 

 
 

Net Assets 100.0%

             $ 170,788,514  
              

 

 

 

aNon-income producing.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts               

FTSE Taiwan Index Futures

     Long        10        $570,000        10/30/23        $3,881  

*As of period end.

 

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.  |  Semiannual Report

             269


FRANKLIN TEMPLETON ETF TRUST

 

Financial Highlights

 

Franklin FTSE United Kingdom ETF

 

   

Six Months Ended
September 30, 2023

(unaudited)

    Year Ended March 31,  
     2023     2022     2021     2020     2019  
Per share operating performance
(for a share outstanding throughout the period)
           

Net asset value, beginning of period

    $    24.21       $    25.46       $    23.78       $    17.92       $24.23       $  25.23  
       
Income from investment operationsa:            

Net investment incomeb

    0.53       0.94       0.95       0.84       1.08       1.05  

Net realized and unrealized gains (losses)

    (0.28     (1.22     1.47       5.62       (6.30     (1.21
       

Total from investment operations

    0.25       (0.28     2.42       6.46       (5.22     (0.16
       

Less distributions from net investment income

    (0.48     (0.97     (0.74     (0.60     (1.09     (0.84
       

Net asset value, end of period

    $    23.98       $    24.21       $    25.46       $    23.78       $17.92       $  24.23  
 

 

 

 

Total returnc

    0.96%       (0.71)%       10.27%       36.19%       (22.42)%       (0.51)%  
Ratios to average net assetsd            

Expenses before waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Expenses net of waiver and payments by affiliates

    0.09%       0.09%       0.09%       0.09%       0.09%       0.09%  

Net investment income

    4.27%       4.10%       3.77%       3.98%       4.84%       4.46%  
Supplemental data            

Net assets, end of period (000’s)

    $585,230       $568,961       $613,573       $205,673       $89,624       $29,076  

Portfolio turnover ratee

    2.16%f       5.61%f       5.76%f       7.26%f       4.41%f       10.10%  

aThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

 

bBased on average daily shares outstanding.

 

cTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

 

dRatios are annualized for periods less than one year.

 

ePortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

 

 

 

 

 

 

fPortfolio turnover rate excluding cash creations was as follows:     2.16%       5.60%       5.76%       7.26%       4.41%        

 

           
270             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

 

Schedule of Investments, September 30, 2023 (unaudited)

 

Franklin FTSE United Kingdom ETF

 

           Industry            Shares                Value  
 

Common Stocks 99.2%

 

    Australia 5.7%                         
 

Glencore PLC

     Metals & Mining          2,968,016        $ 17,022,649  
 

Rio Tinto PLC

     Metals & Mining          262,544          16,579,979  
              

 

 

 
                 33,602,628  
              

 

 

 
    Bermuda 0.2%                         
 

Hiscox Ltd.

     Insurance          81,008          993,686  
              

 

 

 
    Chile 0.2%                         
 

Antofagasta PLC

     Metals & Mining          82,960          1,446,960  
              

 

 

 
    Ireland 4.7%                         
 

CRH PLC

     Construction Materials          174,216          9,658,076  
 

DCC PLC

     Industrial Conglomerates          23,912          1,345,173  
 

Experian PLC

     Professional Services          220,576          7,244,817  
a  

Flutter Entertainment PLC

     Hotels, Restaurants & Leisure          42,456          6,938,652  
 

Smurfit Kappa Group PLC

     Containers & Packaging          62,952          2,097,624  
              

 

 

 
                 27,284,342  
              

 

 

 
    Isle Of Man 0.3%                         
 

Entain PLC

     Hotels, Restaurants & Leisure          152,744          1,739,034  
              

 

 

 
    Mexico 0.1%                         
 

Fresnillo PLC

     Metals & Mining          43,920          295,479  
              

 

 

 
    Netherlands 8.8%                         
 

Shell PLC

     Oil, Gas & Consumable Fuels          1,615,280          51,378,058  
              

 

 

 
    Nigeria 0.1%                         
b  

Airtel Africa PLC

     Wireless Telecommunication Services          259,616          397,994  
              

 

 

 
    Russia 0.0%                         
a,c  

Evraz PLC

     Metals & Mining          128,818           
              

 

 

 
    Switzerland 0.2%                         
 

Coca-Cola HBC AG

     Beverages          46,848          1,285,985  
              

 

 

 
    United Kingdom 78.9%                         
 

3i Group PLC

     Capital Markets          229,360          5,803,265  
 

abrdn PLC

     Capital Markets          460,184          874,813  
 

Admiral Group PLC

     Insurance          73,200          2,123,712  
 

Anglo American PLC

     Metals & Mining          290,848          8,042,399  
 

Ashtead Group PLC

     Trading Companies & Distributors          104,920          6,405,565  
 

Associated British Foods PLC

     Food Products          82,472          2,081,673  
 

AstraZeneca PLC

     Pharmaceuticals          355,752          48,206,325  
b  

Auto Trader Group PLC

     Interactive Media & Services          216,184          1,629,620  
 

Aviva PLC

     Insurance          656,848          3,125,087  
 

B&M European Value Retail SA

     Broadline Retail          224,480          1,606,671  
 

BAE Systems PLC

     Aerospace & Defense          734,440          8,944,484  
 

Barclays PLC

     Banks          3,735,640          7,246,924  
 

Barratt Developments PLC

     Household Durables          236,192          1,271,621  
 

Beazley PLC

     Insurance          160,064          1,081,351  
 

Berkeley Group Holdings PLC

     Household Durables          24,888          1,247,585  
 

BP PLC

     Oil, Gas & Consumable Fuels          4,080,656          26,467,139  
 

British American Tobacco PLC

     Tobacco          535,824          16,853,575  
 

British Land Co. PLC

     Diversified REITs          222,528          860,721  
 

BT Group PLC

     Diversified Telecommunication Services          1,518,168          2,162,450  
 

Bunzl PLC

     Trading Companies & Distributors          81,496          2,910,490  
 

Burberry Group PLC

     Textiles, Apparel & Luxury Goods          90,280          2,102,999  
 

Centrica PLC

     Multi-Utilities          1,338,584          2,523,417  
 

Compass Group PLC

     Hotels, Restaurants & Leisure          419,680          10,244,806  
b  

ConvaTec Group PLC

     Health Care Equipment & Supplies          392,352          1,043,012  

 

           
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Semiannual Report

             271


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE South Korea ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    United Kingdom (continued)                         
 

Croda International PLC

     Chemicals          33,672        $ 2,019,984  
 

Dechra Pharmaceuticals PLC

     Pharmaceuticals          26,840          1,240,932  
 

Diageo PLC

     Beverages          532,408          19,715,854  
 

Dowlais Group PLC

     Automobile Components          324,032          424,764  
 

DS Smith PLC

     Containers & Packaging          307,928          1,079,041  
 

Endeavour Mining PLC

     Metals & Mining          43,432          840,753  
 

Ferguson PLC

     Trading Companies & Distributors          49,288          8,160,494  
 

GSK PLC

     Pharmaceuticals          970,144          17,666,905  
 

Haleon PLC

     Personal Care Products          1,263,432          5,256,185  
 

Halma PLC

     Electronic Equipment, Instruments & Components          91,256          2,159,149  
 

Hargreaves Lansdown PLC

     Capital Markets          91,256          861,209  
 

Hikma Pharmaceuticals PLC

     Pharmaceuticals          38,552          982,501  
 

Howden Joinery Group PLC

     Trading Companies & Distributors          127,368          1,144,800  
 

HSBC Holdings PLC

     Banks          4,756,048              37,436,398  
 

IMI PLC

     Machinery          61,976          1,186,110  
 

Imperial Brands PLC

     Tobacco          217,648          4,428,389  
 

Informa PLC

     Media          333,792          3,057,202  
 

InterContinental Hotels Group PLC

     Hotels, Restaurants & Leisure          40,504          3,002,812  
 

Intermediate Capital Group PLC

     Capital Markets          66,368          1,120,305  
a  

International Consolidated Airlines Group SA

     Passenger Airlines          270,840          489,249  
 

Intertek Group PLC

     Professional Services          39,040          1,959,379  
 

ITV PLC

     Media          901,824          777,329  
 

J Sainsbury PLC

     Consumer Staples Distribution & Retail          417,240          1,287,415  
 

JD Sports Fashion PLC

     Specialty Retail          592,432          1,082,470  
 

Johnson Matthey PLC

     Chemicals          43,432          863,018  
 

Kingfisher PLC

     Specialty Retail          458,720          1,250,236  
 

Land Securities Group PLC

     Diversified REITs          177,632          1,278,738  
 

Legal & General Group PLC

     Insurance          1,428,864          3,880,399  
 

Lloyds Banking Group PLC

     Banks          15,477,896          8,382,177  
 

London Stock Exchange Group PLC

     Capital Markets          109,312          10,985,862  
 

M&G PLC

     Financial Services          523,624          1,260,962  
 

Melrose Industries PLC

     Aerospace & Defense          322,568          1,847,289  
 

Mondi PLC

     Paper & Forest Products          116,632          1,953,824  
 

National Grid PLC

     Multi-Utilities          885,232          10,588,602  
 

NatWest Group PLC

     Banks          1,324,432          3,810,173  
 

Next PLC

     Broadline Retail          29,280          2,607,422  
a,c  

NMC Health PLC

     Health Care Providers & Services          3,705           
a  

Ocado Group PLC

     Consumer Staples Distribution & Retail          145,912          1,069,269  
 

Pearson PLC

     Diversified Consumer Services          172,264          1,825,870  
 

Persimmon PLC

     Household Durables          76,128          1,001,191  
 

Phoenix Group Holdings PLC

     Insurance          177,144          1,042,579  
 

Prudential PLC

     Insurance          663,192          7,194,470  
 

Reckitt Benckiser Group PLC

     Household Products          172,752          12,216,788  
 

RELX PLC

     Professional Services          456,768          15,470,848  
 

Renishaw PLC

     Electronic Equipment, Instruments & Components          8,296          356,626  
 

Rentokil Initial PLC

     Commercial Services & Supplies          607,072          4,521,347  
 

Rightmove PLC

     Interactive Media & Services          196,176          1,346,146  
a  

Rolls-Royce Holdings PLC

     Aerospace & Defense          2,016,904          5,437,965  
 

RS Group PLC

     Trading Companies & Distributors          113,216          1,016,218  
 

Sage Group PLC

     Software          246,928          2,980,726  
 

Schroders PLC

     Capital Markets          202,520          1,006,540  
 

Segro PLC

     Industrial REITs          294,752          2,588,110  
 

Severn Trent PLC

     Water Utilities          60,512          1,746,739  
 

Smith & Nephew PLC

     Health Care Equipment & Supplies          210,328          2,626,202  
 

Smiths Group PLC

     Industrial Conglomerates          84,912          1,678,439  
 

Spirax-Sarco Engineering PLC

     Machinery          17,568          2,042,624  
 

SSE PLC

     Electric Utilities          262,544          5,159,213  

 

           
272             

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  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

SCHEDULE OF INVESTMENTS

 

Franklin FTSE United Kingdom ETF (continued)

 

           Industry            Shares                Value  
 

Common Stocks (continued)

 

    United Kingdom (continued)                         
 

St. James’s Place PLC

     Capital Markets          130,296        $ 1,323,470  
 

Standard Chartered PLC

     Banks          549,976          5,088,249  
 

Tate & Lyle PLC

     Food Products          96,624          808,440  
 

Taylor Wimpey PLC

     Household Durables          844,240          1,208,702  
 

Tesco PLC

     Consumer Staples Distribution & Retail          1,702,632          5,490,464  
 

Unilever PLC

     Personal Care Products          604,144          29,952,691  
 

UNITE Group PLC

     Residential REITs          83,448          914,126  
 

United Utilities Group PLC

     Water Utilities          164,456          1,903,291  
 

Vodafone Group PLC

     Wireless Telecommunication Services          5,264,544          4,936,175  
 

Weir Group PLC

     Machinery          62,464          1,449,711  
 

Whitbread PLC

     Hotels, Restaurants & Leisure          47,336          2,001,359  
a  

Wise PLC, Class A

     Financial Services          170,800          1,429,270  
 

WPP PLC

     Media          250,832          2,244,101  
              

 

 

 
                 462,025,994  
              

 

 

 
 

Total Common Stocks
(Cost $613,514,538)

               580,450,160  
              

 

 

 
 

Total Investments
(Cost $613,514,538) 99.2%

               580,450,160  
 

Other Assets, less Liabilities 0.8%

               4,779,415  
              

 

 

 
 

Net Assets 100.0%

             $ 585,229,575  
              

 

 

 

Rounds to less than 0.1% of net assets.

aNon-income producing.

bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At September 30, 2023, the value of was $3,070,626, representing 0.5% of net assets.

cFair valued using significant unobservable inputs. See Note 8 regarding fair value measurements.

At September 30, 2023, the Fund had the following futures contracts outstanding. See Note 1(c).

 

Futures Contracts                                   
Description    Type      Number of
Contracts
     Notional
Amount*
     Expiration
Date
     Value/Unrealized
Appreciation
(Depreciation)
 
Index Contracts               

FTSE 100 IDX FUT DEC23

     Long        44        $4,119,648        12/15/23        $36,461  

*As of period end.

See Note 7 regarding other derivative information.

See Abbreviations on page 324.

 

           
franklintempleton.com  

The accompanying notes are an integral part of these financial statements.  |  Semiannual Report

             273


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities

September 30, 2023 (unaudited)

 

 

     Franklin FTSE
Asia ex Japan ETF
     Franklin FTSE
Australia ETF
     Franklin FTSE
Brazil ETF
     Franklin FTSE
Canada ETF
 

 

 

Assets:

           

Investments in securities:

           

Cost – Unaffiliated issuers

     $26,918,471        $29,147,689        $ 102,245,129        $356,955,305  

Value – Unaffiliated issuers

     $24,532,586        $28,898,499        $ 123,189,902        $329,499,436  

Cash

     15,283        66        86,819        53,915  

Foreign currency, at value (cost $39,073, $363,569, $1,255,394 and $520,763, respectively)

     39,088        365,857        1,221,167        519,111  

Receivables:

           

Capital shares sold

                          3,037,048  

Dividends

     36,706        65,673        1,995,444        891,410  

Investment securities sold

     825                       

Variation margin on futures contracts

     504        1,167        21,451         

Deposits with brokers for:

           

Futures contracts

     3,992        37,854        768,539        73,639  
  

 

 

 

Total assets

     24,628,984        29,369,116        127,283,322        334,074,559  
  

 

 

 

Liabilities:

           

Payables:

           

Investment securities purchased

            8,043        27,470        3,019,561  

Management fees

     3,885        2,191        20,084        24,460  

Variation margin on futures contracts

                          3,744  

Deferred tax

     108,907                       
  

 

 

 

Total liabilities

     112,792        10,234        47,554        3,047,765  
  

 

 

 

Net assets, at value

     $24,516,192        $29,358,882        $ 127,235,768        $331,026,794  
  

 

 

 

Net assets consist of:

           

Paid-in capital

     $32,294,766        $30,839,816        $ 257,167,948        $358,688,399  

Total distributable earnings (loss)

     (7,778,574      (1,480,934      (129,932,180      (27,661,605
  

 

 

 

Net assets, at value

     $24,516,192        $29,358,882        $ 127,235,768        $331,026,794  
  

 

 

 

Shares outstanding

     1,200,000        1,150,000        6,900,000        10,950,000  
  

 

 

 

Net asset value per share

     $         20.43        $         25.53        $             18.44        $           30.23  
  

 

 

 

 

           
274             

Semiannual Report    |   The accompanying notes are an integral part of these financial statements.

  franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

September 30, 2023 (unaudited)

 

 

    

Franklin FTSE

China ETF

     Franklin FTSE
Europe ETF
     Franklin FTSE
Eurozone ETF
     Franklin FTSE
France ETF
 

 

 

Assets:

           

Investments in securities:

           

Cost – Unaffiliated issuers

     $142,921,467        $123,873,557        $19,844,750        $5,875,495  

Value – Unaffiliated issuers

     $106,234,109        $116,078,792        $17,436,602        $5,758,870  

Cash

     2,122        76,725        26        99  

Foreign currency, at value (cost $95,581, $205,371, $3,341 and $47,999, respectively)

     95,591        203,056        3,340        47,943  

Receivables:

           

Dividends and interest

     154,484        542,316        44,382        5,120  

European Union tax reclaims receivable (Note 1e)

            586,182        37,557        38,943  

Investment securities sold

     10,522               11,095         

Variation margin on futures contracts

     2,297        4,296               191  

Deposits with brokers for:

           

Futures contracts

     19,960        70,851        6,339        5,823  
  

 

 

 

Total assets

     106,519,085        117,562,218        17,539,341        5,856,989  
  

 

 

 

Liabilities:

           

Payables:

           

Investment securities purchased

                   1        10,090  

European Union tax reclaim contingent fees payable (Note 1e)

            146,721        9,389        9,736  

Management fees

     16,843        8,832        1,326        442  

Variation margin on futures contracts

                   2,857         
  

 

 

 

Total liabilities

     16,843        155,553        13,573        20,268  
  

 

 

 

Net assets, at value

     $106,502,242        $117,406,665        $17,525,768        $5,836,721  
  

 

 

 

Net assets consist of:

           

Paid-in capital

     $168,858,948        $129,845,853        $22,927,153        $6,219,484  

Total distributable earnings (loss)

     (62,356,706      (12,439,188      (5,401,385      (382,763
  

 

 

 

Net assets, at value

     $106,502,242        $117,406,665        $17,525,768        $5,836,721  
  

 

 

 

Shares outstanding

     6,200,000        4,600,000        800,000        200,000  
  

 

 

 

Net asset value per share

     $            17.18        $            25.52        $          21.91        $        29.18  
  

 

 

 

 

           
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The accompanying notes are an integral part of these financial statements.    |   Semiannual Report

             275


FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

September 30, 2023 (unaudited)

 

 

     Franklin FTSE
Germany ETF
     Franklin FTSE
Hong Kong ETF
     Franklin FTSE
India ETF
     Franklin FTSE
Italy ETF
 

 

 

Assets:

           

Investments in securities:

           

Cost – Unaffiliated issuers

     $18,041,690        $15,234,895        $342,752,072        $4,427,315  

Value – Unaffiliated issuers

     $15,362,266        $10,823,710        $377,338,826        $5,139,362  

Cash

     35               4,699,236        34  

Foreign currency, at value (cost $6,806, $35,015, $1,993,918 and $3,767, respectively)

     6,734        34,973        1,998,308        3,731  

Receivables:

           

Capital shares sold

                   3,173,348         

Dividends

            24,717        58,458         

Variation margin on futures contracts

            1,851        23,882         

Deposits with brokers for:

           

Futures contracts

     16        6,863        307,230        2  

Unrealized appreciation on OTC forward exchange contracts

                   5,329         
  

 

 

 

Total assets

     15,369,051        10,892,114        387,604,617        5,143,129  
  

 

 

 

Liabilities:

           

Payables:

           

Investment securities purchased

                   3,160,872         

Management fees

     1,167        819        57,243        387  

Funds advanced by custodian

            1,052                

Deferred tax

                   5,127,047         
  

 

 

 

Total liabilities

     1,167        1,871        8,345,162        387  
  

 

 

 

Net assets, at value

     $15,367,884        $10,890,243        $379,259,455        $5,142,742  
  

 

 

 

Net assets consist of:

           

Paid-in capital

     $19,101,883        $16,758,777        $354,930,034        $4,977,355  

Total distributable earnings (loss)

     (3,733,999      (5,868,534      24,329,421        165,387  
  

 

 

 

Net assets, at value

     $15,367,884        $10,890,243        $379,259,455        $5,142,742  
  

 

 

 

Shares outstanding

     750,000        600,000        11,950,000        200,000  
  

 

 

 

Net asset value per share

     $          20.49        $          18.15        $            31.74        $        25.71  
  

 

 

 

 

           
276             

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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

September 30, 2023 (unaudited)

 

 

    Franklin FTSE
Japan ETF
    Franklin FTSE
Japan Hedged ETF
    Franklin FTSE
Latin America ETF
    Franklin FTSE
Mexico ETF
 

 

 

Assets:

       

Investments in securities:

       

Cost – Unaffiliated issuers

          $1,553,814,305       $251,216,313       $51,958,075             $28,789,597  

Cost – Non-controlled affiliates (Note 3c)

    934,680                    

Value – Unaffiliated issuers+

          $1,481,782,552       $247,137,285       $60,103,262             $30,328,693  

Value – Non-controlled affiliates (Note 3c)

    934,680                    

Cash

                548       26  

Foreign currency, at value (cost $229,021, $196,310, $217,007 and $21,945, respectively)

    229,021       196,519       211,734       21,599  

Receivables:

 

Dividends

    12,315,625       1,991,806       455,304       6,463  

Variation margin on futures contracts

    3,692       500       409        

Deposits with brokers for:

       

Futures contracts

    530,742       72,374       124,544       12  

Unrealized appreciation on OTC forward exchange contracts

          7,192,664              
 

 

 

 

Total assets

    1,495,796,312       256,591,148       60,895,801       30,356,793  
 

 

 

 

Liabilities:

 

Payables:

 

Investment securities purchased

    138       6,900,302       8,849        

Management fees

    113,168       18,601       9,652       5,105  

Payable upon return of securities loaned

    934,680                    

Unrealized depreciation on OTC forward exchange contracts

          9,155              
 

 

 

 

Total liabilities

    1,047,986       6,928,058       18,501       5,105  
 

 

 

 

Net assets, at value

          $1,494,748,326       $249,663,090       $60,877,300             $30,351,688  
 

 

 

 

Net assets consist of:

       

Paid-in capital

          $1,579,167,286       $241,101,012       $52,908,715             $28,244,972  

Total distributable earnings (loss)

    (84,418,960     8,562,078       7,968,585       2,106,716  
 

 

 

 

Net assets, at value

          $1,494,748,326       $249,663,090       $60,877,300             $30,351,688  
 

 

 

 

Shares outstanding

    56,400,000       7,900,000       2,800,000       1,050,000  
 

 

 

 

Net asset value per share

    $               26.50       $           31.60       $         21.74       $          28.91  
 

 

 

 

+Includes securities loaned

    887,272                    

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

September 30, 2023 (unaudited)

 

 

     Franklin FTSE
Saudi Arabia ETF
     Franklin FTSE
South Africa ETF
     Franklin FTSE
South Korea ETF
 

 

 

Assets:

        

Investments in securities:

 

Cost – Unaffiliated issuers

     $21,159,946        $2,618,881        $319,564,259  

Value – Unaffiliated issuers

     $22,190,169        $1,999,904        $312,360,847  

Cash

                   439,020  

Foreign currency, at value (cost $39,480, $4,930 and $464,145, respectively)

     39,480        4,918        456,973  

Receivables:

        

Capital shares sold

                   6,114,630  

Dividends

     30,661        4,553        543,756  

Investment securities sold

     25                

Variation margin on futures contracts

                   1  

Deposits with brokers for:

 

Futures contracts

                   108,588  
  

 

 

 

Total assets

     22,260,335        2,009,375        320,023,815  
  

 

 

 

Liabilities:

        

Payables:

        

Management fees

     7,194        318        24,162  

Funds advanced by custodian

     46,383        9,218         
  

 

 

 

Total liabilities

     53,577        9,536        24,162  
  

 

 

 

Net assets, at value

     $22,206,758        $1,999,839        $319,999,653  
  

 

 

 

Net assets consist of:

 

Paid-in capital

     $21,045,215        $3,099,543        $346,553,306  

Total distributable earnings (loss)

     1,161,543        (1,099,704      (26,553,653
  

 

 

 

Net assets, at value

     $22,206,758        $1,999,839        $319,999,653  
  

 

 

 

Shares outstanding

     650,000        100,000        15,700,000  
  

 

 

 

Net asset value per share

     $         34.16        $       20.00        $          20.38  
  

 

 

 

 

           
278             

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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Assets and Liabilities (continued)

September 30, 2023 (unaudited)

 

 

     Franklin FTSE
Switzerland ETF
     Franklin FTSE
Taiwan ETF
     Franklin FTSE
United Kingdom ETF
 

 

 

Assets:

        

Investments in securities:

 

Cost – Unaffiliated issuers

     $41,896,053        $168,144,674        $613,514,538  

Value – Unaffiliated issuers

     $41,239,673        $170,188,258        $580,450,160  

Cash

            2,053        959,629  

Foreign currency, at value (cost $325,132 and $2,247,328, respectively)

            322,562        2,221,976  

Receivables:

        

Dividends

     757,155        271,114        1,427,827  

Variation margin on futures contracts

     6,343        5,313        10,510  

Deposits with brokers for:

 

Futures contracts

     51,414        26,400        202,465  
  

 

 

 

Total assets

     42,054,585        170,815,700        585,272,567  
  

 

 

 

Liabilities:

        

Payables:

        

Management fees

     3,390        27,186        42,992  

Funds advanced by custodian

     24,840                

Foreign currency advanced by custodian

     4,460                
  

 

 

 

Total liabilities

     32,690        27,186        42,992  
  

 

 

 

Net assets, at value

     $42,021,895        $170,788,514        $585,229,575  
  

 

 

 

Net assets consist of:

 

Paid-in capital

     $44,375,415        $168,297,860        $629,293,814  

Total distributable earnings (loss)

     (2,353,520      2,490,654        (44,064,239
  

 

 

 

Net assets, at value

     $42,021,895        $170,788,514        $585,229,575  
  

 

 

 

Shares outstanding

     1,400,000        4,700,000        24,400,000  
  

 

 

 

Net asset value per share

     $         30.02        $           36.34        $           23.98  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations

for the period ended September 30, 2023 (unaudited)

 

     Franklin FTSE
Asia ex Japan ETF
     Franklin FTSE
Australia ETF
     Franklin FTSE
Brazil ETF
     Franklin FTSE
Canada ETF
 

 

 

Investment income:

           

Dividends: (net of foreign taxes)a

           

Unaffiliated issuers

     $    533,146        $  631,257        $   8,163,810        $    4,685,928  

Interest:

           

Unaffiliated issuers

     344        616                
  

 

 

 

Total investment income

     533,490        631,873        8,163,810        4,685,928  
  

 

 

 

Expenses:

           

Management fees (Note 3a)

     27,297        13,437        161,421        137,945  
  

 

 

 

Total expenses

     27,297        13,437        161,421        137,945  

Expenses waived/paid by affiliates (Note 3c)

     (58                     
  

 

 

 

Net expenses

     27,239        13,437        161,421        137,945  
  

 

 

 

Net investment income

     506,251        618,436        8,002,389        4,547,983  
  

 

 

 

Realized and unrealized gains (losses):

           

Net realized gain (loss) from:

           

Investments:

           

Unaffiliated issuers

     (1,449,430      (103,843      (49,239      (838,569

In-kind redemptions

     47,801                      463,256  

Foreign currency transactions

     (11,742      (4,000      192,210        (4,460

Futures contracts

     5,401        15,652        617,603        42,946  
  

 

 

 

Net realized gain (loss)

     (1,407,970      (92,191      760,574        (336,827
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments:

           

Unaffiliated issuers

     (274,046      (1,375,303      22,418,435        (7,633,275

Translation of other assets and liabilities denominated in foreign currencies

     622        766        (128,375      (9,775

Futures contracts

     (1,605      (16,183      10,213        (38,152

Change in deferred taxes on unrealized appreciation

     (13,249                     
  

 

 

 

Net change in unrealized appreciation (depreciation)

     (288,278      (1,390,720      22,300,273        (7,681,202
  

 

 

 

Net realized and unrealized gain (loss)

     (1,696,248      (1,482,911      23,060,847        (8,018,029
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $(1,189,997      $(864,475      $31,063,236        $(3,470,046
  

 

 

 
        

aForeign taxes withheld on dividends

     $67,928        $6,213        $355,330        $826,150  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the period ended September 30, 2023 (unaudited)

 

 

     Franklin FTSE
China ETF
     Franklin FTSE
Europe ETF
     Franklin FTSE
Eurozone ETF
     Franklin FTSE
France ETF
 

 

 

Investment income:

           

Dividends: (net of foreign taxes)a

           

Unaffiliated issuers

     $    2,253,898        $1,962,995        $    410,421        $ 100,762  

European Union tax reclaims (Note 1e)

            586,182               38,943  

Interest: (net of foreign taxes)b

           

Unaffiliated issuers

     1,858        3,001               7,650  

Interest from securities loaned (Note 1d):

           

Non-Controlled affiliates (Note 3c)

     251                       
  

 

 

 

Total investment income

     2,256,007        2,552,178        410,421        147,355  
  

 

 

 

Expenses:

           

Management fees (Note 3a)

     103,127        52,228        10,325        2,787  

Contingent fees for European Union tax reclaims (Note 1e)

            146,721               9,736  
  

 

 

 

Total expenses

     103,127        198,949        10,325        12,523  

Expenses waived/paid by affiliates (Note 3c)

     (96             (137       
  

 

 

 

Net expenses

     103,031        198,949        10,188        12,523  
  

 

 

 

Net investment income

     2,152,976        2,353,229        400,233        134,832  
  

 

 

 

Realized and unrealized gains (losses):

           

Net realized gain (loss) from:

           

Investments:

           

Unaffiliated issuers

     (5,747,958      (1,028,770      111,174        (41,338

In-kind redemptions

                   793,308         

Foreign currency transactions

     5,353        1,268        (1,305,314      602  

Forward exchange contracts

     (98             613,494         

Futures contracts

     37,829        29,896        4,017        1,958  
  

 

 

 

Net realized gain (loss)

     (5,704,874      (997,606      216,679        (38,778
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments:

           

Unaffiliated issuers

     (10,479,021      (4,180,359      (2,331,858      (292,208

Translation of other assets and liabilities denominated in foreign currencies

     (61      (21,593      (1,743      (2,562

Futures contracts

     (8,024      (42,738      (3,554      (3,408

Forward exchange contracts

                   292,899         
  

 

 

 

Net change in unrealized appreciation (depreciation)

     (10,487,106      (4,244,690      (2,044,256      (298,178
  

 

 

 

Net realized and unrealized gain (loss)

     (16,191,980      (5,242,296      (1,827,577      (336,956
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $(14,039,004      $(2,889,067      $(1,427,344      $(202,124
  

 

 

 
           

aForeign taxes withheld on dividends

     $       191,215        $    290,613        $      61,537        $    22,551  

bForeign taxes withheld on interest

     $                —        $           710        $              —        $            —  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the period ended September 30, 2023 (unaudited)

 

 

     Franklin FTSE
Germany ETF
     Franklin FTSE
Hong Kong ETF
    

Franklin FTSE

India ETF

     Franklin FTSE
Italy ETF
 

 

 

Investment income:

           

Dividends: (net of foreign taxes)a

           

Unaffiliated issuers

     $     470,022        $   444,584        $  1,677,969        $  148,514  

Non-cash dividends

            42,386                

Interest:

           

Unaffiliated issuers

                          60  
  

 

 

 

Total investment income

     470,022        486,970        1,677,969        148,574  
  

 

 

 

Expenses:

           

Management fees (Note 3a)

     7,799        6,862        229,634        2,360  
  

 

 

 

Total expenses

     7,799        6,862        229,634        2,360  
  

 

 

 

Net investment income

     462,223        480,108        1,448,335        146,214  
  

 

 

 

Realized and unrealized gains (losses):

           

Net realized gain (loss) from:

           

Investments:

           

Unaffiliated issuers

     (245,033      (181,102      (2,341,517      (23,746

In-kind redemptions

     254,007        21,485                

Foreign currency transactions

     (2,811      408        (340,712      (775

Futures contracts

     4,438        (3,486      9,214        1,086  
  

 

 

 

Net realized gain (loss)

     10,601        (162,695      (2,673,015      (23,435
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments:

           

Unaffiliated issuers

     (1,148,143      (2,573,347      33,558,189        133,781  

Translation of other assets and liabilities denominated in foreign currencies

     (75      (48      2,304        (46

Futures contracts

            (744      (3,055       

Forward exchange contracts

                   5,329         

Change in deferred taxes on unrealized appreciation

                   (5,016,375       
  

 

 

 

Net change in unrealized appreciation (depreciation)

     (1,148,218      (2,574,139      28,546,392        133,735  
  

 

 

 

Net realized and unrealized gain (loss)

     (1,137,617      (2,736,834      25,873,377        110,300  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $    (675,394      $(2,256,726      $27,321,712        $256,514  
  

 

 

 
           

aForeign taxes withheld on dividends

     $       74,096        $          632        $     502,184        $    24,900  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the period ended September 30, 2023 (unaudited)

 

 

     Franklin FTSE
Japan ETF
     Franklin FTSE
Japan Hedged ETF
     Franklin FTSE
Latin America ETF
     Franklin FTSE
Mexico ETF
 

 

 

Investment income:

           

Dividends: (net of foreign taxes)a

           

Unaffiliated issuers

     $14,729,956        $  2,198,090        $2,199,464        $    528,766  

Interest:

           

Unaffiliated issuers

     (230      (23              

Interest from securities loaned (Note 1d):

           

Unaffiliated issuers (net of fees and rebates)

     6,224                       
  

 

 

 

Total investment income

     14,735,950        2,198,067        2,199,464        528,766  
  

 

 

 

Expenses:

           

Management fees (Note 3a)

     597,163        63,464        59,906        30,349  
  

 

 

 

Total expenses

     597,163        63,464        59,906        30,349  

Expenses waived/paid by affiliates (Note 3c)

     (4,147      (782              
  

 

 

 

Net expenses

     593,016        62,682        59,906        30,349  
  

 

 

 

Net investment income

     14,142,934        2,135,385        2,139,558        498,417  
  

 

 

 

Realized and unrealized gains (losses):

           

Net realized gain (loss) from:

           

Investments:

           

Unaffiliated issuers

     (6,623,339      (530,851      (270,471      (279,175

In-kind redemptions

     6,747,682               1,034,598        1,604,507  

Foreign currency transactions

     (866,382      (45,674      15,091        10,099  

Forward exchange contracts

            11,335,185        (1,079       

Futures contracts

     2,204,280        48,553        13,478        (1,364
  

 

 

 

Net realized gain (loss)

     1,462,241        10,807,213        791,617        1,334,067  
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments:

           

Unaffiliated issuers

     28,476,859        (3,364,936      2,710,640        (2,312,913

Translation of other assets and liabilities denominated in foreign currencies

     25,620        9,730        (17,918      (431

Futures contracts

     (266,906      (17,831      (333       

Forward exchange contracts

            7,430,761                
  

 

 

 

Net change in unrealized appreciation (depreciation)

     28,235,573        4,057,724        2,692,389        (2,313,344
  

 

 

 

Net realized and unrealized gain (loss)

     29,697,814        14,864,937        3,484,006        (979,277
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $43,840,748        $17,000,322        $5,623,564        $  (480,860
  

 

 

 
           

aForeign taxes withheld on dividends

     $  1,632,897        $     243,053        $   206,379        $     62,035  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the period ended September 30, 2023 (unaudited)

 

 

     Franklin FTSE
Saudi Arabia ETF
     Franklin FTSE
South Africa ETF
     Franklin FTSE
South Korea ETF
     Franklin FTSE
Switzerland ETF
 

 

 

Investment income:

           

Dividends: (net of foreign taxes)a

           

Unaffiliated issuers

     $460,014        $   43,593        $1,418,555        $   842,589  

Interest: (net of foreign taxes)b

           

Unaffiliated issuers

                   5,185        (1,090
  

 

 

 

Total investment income

     460,014        43,593        1,423,740        841,499  
  

 

 

 

Expenses:

           

Management fees (Note 3a)

     44,980        2,035        145,245        23,949  
  

 

 

 

Total expenses

     44,980        2,035        145,245        23,949  
  

 

 

 

Net investment income

     415,034        41,558        1,278,495        817,550  
  

 

 

 

Realized and unrealized gains (losses):

           

Net realized gain (loss) from:

           

Investments:

           

Unaffiliated issuers

     (52,470      (82,648      (5,024,724      (1,662,487

In-kind redemptions

                          1,269,680  

Foreign currency transactions

     80        (99      (62,429      6,547  

Forward exchange contracts

     (157                     

Futures contracts

                   166,401        (3,181
  

 

 

 

Net realized gain (loss)

     (52,547      (82,747      (4,920,752      (389,441
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

           

Investments:

           

Unaffiliated issuers

     284,565        (158,931      (5,486,456      (755,513

Translation of other assets and liabilities denominated in foreign currencies

     (101      (203      37,029        (8,713

Futures contracts

                   (44,742      (58,011
  

 

 

 

Net change in unrealized appreciation (depreciation)

     284,464        (159,134      (5,494,169      (822,237
  

 

 

 

Net realized and unrealized gain (loss)

     231,917        (241,881      (10,414,921      (1,211,678
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $646,951        $(200,323      $(9,136,426      $  (394,128
  

 

 

 
           

aForeign taxes withheld on dividends

     $  21,822        $     7,401        $287,774        $   128,327  

bForeign taxes withheld on interest

     $          —        $          —        $          50        $             —  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Operations (continued)

for the period ended September 30, 2023 (unaudited)

 

 

     Franklin FTSE
Taiwan ETF
     Franklin FTSE
United Kingdom ETF
 

 

 

Investment income:

     

Dividends: (net of foreign taxes)a

     

Unaffiliated issuers

     $5,147,970        $12,470,985  

Unaffiliated issuers (net of fees and rebates)

            169  

Non-Controlled affiliates (Note 3c)

            (169
  

 

 

 

Total investment income

     5,147,970        12,470,985  
  

 

 

 

Expenses:

     

Management fees (Note 3a)

     153,390        257,273  
  

 

 

 

Total expenses

     153,390        257,273  

Expenses waived/paid by affiliates (Note 3c)

            (76
  

 

 

 

Net expenses

     153,390        257,197  
  

 

 

 

Net investment income

     4,994,580        12,213,788  
  

 

 

 

Realized and unrealized gains (losses):

     

Net realized gain (loss) from:

     

Investments:

     

Unaffiliated issuers

     (1,044,496      (2,745,343

In-kind redemptions

            3,207,483  

Foreign currency transactions

     (50,872      105,260  

Futures contracts

     25,415        68,676  
  

 

 

 

Net realized gain (loss)

     (1,069,953      636,076  
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

     

Investments:

     

Unaffiliated issuers

     (9,369,876      (6,482,757

Translation of other assets and liabilities denominated in foreign currencies

     (6,150      (96,302

Futures contracts

     3,881        8,979  
  

 

 

 

Net change in unrealized appreciation (depreciation)

     (9,372,145      (6,570,080
  

 

 

 

Net realized and unrealized gain (loss)

     (10,442,098      (5,934,004
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     $   (5,447,518      $  6,279,784  
  

 

 

 
     

aForeign taxes withheld on dividends

     $   1,294,784        $       27,717  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets

 

 

     Franklin FTSE Asia ex Japan ETF      Franklin FTSE Australia ETF  
  

 

 

 
    

Six Months Ended

September 30, 2023

(unaudited)

    

Year Ended

March 31, 2023

    

Six Months Ended
September 30, 2023

(unaudited)

     Year Ended
March 31, 2023
 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $     506,251        $     868,301        $     618,436        $     1,689,308  

Net realized gain (loss)

     (1,407,970      (2,158,882      (92,191      (237,728

Net change in unrealized appreciation (depreciation)

     (288,278      (2,638,071      (1,390,720      (4,246,611
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (1,189,997      (3,928,652      (864,475      (2,795,031
  

 

 

 

Distributions to shareholders (Note 1f)

     (250,083      (845,059      (526,733      (1,647,793
  

 

 

 

Capital share transactions: (Note 2)

     (4,024,057      (3,997,011      1,313,154        3,911,576  
  

 

 

 

Net increase (decrease) in net assets

     (5,464,137      (8,770,722      (78,054      (531,248

Net assets:

           

Beginning of period

     29,980,329        38,751,051        29,436,936        29,968,184  
  

 

 

 

End of period

     $24,516,192        $29,980,329        $29,358,882        $29,436,936  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE Brazil ETF      Franklin FTSE Canada ETF  
  

 

 

 
    

Six Months Ended

September 30, 2023

(unaudited)

    

Year Ended

March 31, 2023

    

Six Months Ended

September 30, 2023

(unaudited)

    

Year Ended

March 31, 2023

 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $    8,002,389        $  35,628,028        $    4,547,983        $    6,761,710  

Net realized gain (loss)

     760,574        (94,944,037      (336,827      3,339,371  

Net change in unrealized appreciation (depreciation)

     22,300,273        (45,250,023      (7,681,202      (27,287,099
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     31,063,236        (104,566,032      (3,470,046      (17,186,018
  

 

 

 

Distributions to shareholders (Note 1f)

     (7,264,422      (37,484,866      (2,907,341      (5,031,676
  

 

 

 

Capital share transactions: (Note 2)

     (165,476,822      (116,854,829      57,477,133        258,855,931  
  

 

 

 

Net increase (decrease) in net assets

     (141,678,008      (258,905,727      51,099,746        236,638,237  

Net assets:

           

Beginning of period

     268,913,776        527,819,503        279,927,048        43,288,811  
  

 

 

 

End of period

     $127,235,768        $268,913,776        $331,026,794        $279,927,048  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE China ETF      Franklin FTSE Europe ETF  
  

 

 

 
    

Six Months Ended

September 30, 2023

(unaudited)

    

Year Ended

March 31, 2023

    

Six Months Ended

September 30, 2023

(unaudited)

     Year Ended
March 31, 2023
 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $    2,152,976        $    2,972,502        $    2,353,229        $    3,712,113  

Net realized gain (loss)

     (5,704,874      (8,490,513      (997,606      4,478,468  

Net change in unrealized appreciation (depreciation)

     (10,487,106      (280,918      (4,244,690      (20,843,640
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (14,039,004      (5,798,929      (2,889,067      (12,653,059
  

 

 

 

Distributions to shareholders (Note 1f)

     (1,086,404      (2,755,725      (2,260,310      (3,354,521
  

 

 

 

Capital share transactions: (Note 2)

     7,393,294        11,335,252        10,997,894        (57,291,354
  

 

 

 

Net increase (decrease) in net assets

     (7,732,114      2,780,598        5,848,517        (73,298,934

Net assets:

           

Beginning of period

     114,234,356        111,453,758        111,558,148        184,857,082  
  

 

 

 

End of period

     $106,502,242        $114,234,356        $117,406,665        $111,558,148  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE Eurozone ETF      Franklin FTSE France ETF  
  

 

 

 
    

Six Months Ended

September 30, 2023

(unaudited)

    

Year Ended

March 31, 2023

    

Six Months Ended

September 30, 2023

(unaudited)

    

Year Ended

March 31, 2023

 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $     400,233        $     581,317        $   134,832        $   284,539  

Net realized gain (loss)

     216,679        220,188        (38,778      (280,243

Net change in unrealized appreciation (depreciation)

     (2,044,256      (1,004,928      (298,178      (129,793
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (1,427,344      (203,423      (202,124      (125,497
  

 

 

 

Distributions to shareholders (Note 1f)

     (421,414      (3,158,611      (94,936      (227,103
  

 

 

 

Capital share transactions: (Note 2)

     5,211,634        (4,169,747             (3,601,500
  

 

 

 

Net increase (decrease) in net assets

     3,362,876        (7,531,781      (297,060      (3,954,100

Net assets:

           

Beginning of period

     14,162,892        21,694,673        6,133,781        10,087,881  
  

 

 

 

End of period

     $17,525,768        $14,162,892        $5,836,721        $6,133,781  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

 

     Franklin FTSE Germany ETF      Franklin FTSE Hong Kong ETF  
  

 

 

 
    

Six Months Ended

September 30, 2023

(unaudited)

    

Year Ended

March 31, 2023

    

Six Months Ended

September 30, 2023

(unaudited)

    

Year Ended

March 31, 2023

 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $     462,223        $     443,742        $     480,108        $     517,292  

Net realized gain (loss)

     10,601        270,943        (162,695      (589,584

Net change in unrealized appreciation (depreciation)

     (1,148,218      248,047        (2,574,139      (625,284
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (675,394      962,732        (2,256,726      (697,576
  

 

 

 

Distributions to shareholders (Note 1f)

     (553,900      (449,481      (287,973      (536,059
  

 

 

 

Capital share transactions: (Note 2)

     (1,086,035      395,253        (3,633,931      729,118  
  

 

 

 

Net increase (decrease) in net assets

     (2,315,329      908,504        (6,178,630      (504,517

Net assets:

           

Beginning of period

     17,683,213        16,774,709        17,068,873        17,573,390  
  

 

 

 

End of period

     $15,367,884        $17,683,213        $10,890,243        $17,068,873  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

     Franklin FTSE India ETF      Franklin FTSE Italy ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $    1,448,335        $     599,378        $   146,214        $   133,696  

Net realized gain (loss)

     (2,673,015      (1,609,627      (23,435      (97,035

Net change in unrealized appreciation (depreciation)

     28,546,392        (7,048,771      133,735        215,985  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     27,321,712        (8,059,020      256,514        252,646  
  

 

 

 

Distributions to shareholders (Note 1f)

            (445,431      (152,586      (160,658
  

 

 

 

Capital share transactions: (Note 2)

     252,960,301        57,341,977               1,248,714  
  

 

 

 

Net increase (decrease) in net assets

     280,282,013        48,837,526        103,928        1,340,702  

Net assets:

           

Beginning of period

     98,977,442        50,139,916        5,038,814        3,698,112  
  

 

 

 

End of period

     $379,259,455        $98,977,442        $5,142,742        $5,038,814  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

     Franklin FTSE Japan ETF      Franklin FTSE Japan Hedged ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $     14,142,934        $     21,152,656        $    2,135,385        $     456,288  

Net realized gain (loss)

     1,462,241        (4,730,760      10,807,213        326,329  

Net change in unrealized appreciation (depreciation)

     28,235,573        (55,868,560      4,057,724        752,939  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     43,840,748        (39,446,664      17,000,322        1,535,556  
  

 

 

 

Distributions to shareholders (Note 1f)

     (17,758,740      (15,080,965      (1,533,998      (6,293,059
  

 

 

 

Capital share transactions: (Note 2)

     467,863,096        265,693,564        220,912,272        (6,677,798
  

 

 

 

Net increase (decrease) in net assets

     493,945,104        211,165,935        236,378,596        (11,435,301

Net assets:

           

Beginning of period

     1,000,803,222        789,637,287        13,284,494        24,719,795  
  

 

 

 

End of period

     $1,494,748,326        $1,000,803,222        $249,663,090        $13,284,494  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

     Franklin FTSE Latin America ETF      Franklin FTSE Mexico ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $  2,139,558        $  3,964,605        $     498,417        $     461,922  

Net realized gain (loss)

     791,617        (1,670,626      1,334,067        234,118  

Net change in unrealized appreciation (depreciation)

     2,692,389        4,560,448        (2,313,344      1,255,017  
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     5,623,564        6,854,427        (480,860      1,951,057  
  

 

 

 

Distributions to shareholders (Note 1f)

     (1,467,911      (3,573,506      (280,493      (447,955
  

 

 

 

Capital share transactions: (Note 2)

     (10,650,585      56,516,479        6,223,193        11,014,721  
  

 

 

 

Net increase (decrease) in net assets

     (6,494,932      59,797,400        5,461,840        12,517,823  

Net assets:

           

Beginning of period

     67,372,232        7,574,832        24,889,848        12,372,025  
  

 

 

 

End of period

     $60,877,300        $67,372,232        $30,351,688        $24,889,848  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

     Franklin FTSE Saudi Arabia ETF      Franklin FTSE South Africa ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $     415,034        $     256,829        $     41,558        $   161,186  

Net realized gain (loss)

     (52,547      (89,444      (82,747      44,767  

Net change in unrealized appreciation (depreciation)

     284,464        (908,625      (159,134      (1,673,622
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     646,951        (741,240      (200,323      (1,467,669
  

 

 

 

Distributions to shareholders (Note 1f)

     (313,825      (78,128      (43,465      (191,901
  

 

 

 

Capital share transactions: (Note 2)

            18,562,690               (2,054,548
  

 

 

 

Net increase (decrease) in net assets

     333,126        17,743,322        (243,788      (3,714,118

Net assets:

           

Beginning of period

     21,873,632        4,130,310        2,243,627        5,957,745  
  

 

 

 

End of period

     $22,206,758        $21,873,632        $1,999,839        $2,243,627  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

     Franklin FTSE South Korea ETF      Franklin FTSE Switzerland ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $    1,278,495        $    2,463,031        $     817,550        $  1,129,107  

Net realized gain (loss)

     (4,920,752      (3,868,112      (389,441      34,755  

Net change in unrealized appreciation (depreciation)

     (5,494,169      (2,460,649      (822,237      (3,642,334
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (9,136,426      (3,865,730      (394,128      (2,478,472
  

 

 

 

Distributions to shareholders (Note 1f)

     (2,530,156      (2,183,845      (1,251,401      (1,004,310
  

 

 

 

Capital share transactions: (Note 2)

     38,617,442        237,736,926        (6,273,325      5,830,307  
  

 

 

 

Net increase (decrease) in net assets

     26,950,860        231,687,351        (7,918,854      2,347,525  

Net assets:

           

Beginning of period

     293,048,793        61,361,442        49,940,749        47,593,224  
  

 

 

 

End of period

     $319,999,653        $293,048,793        $42,021,895        $49,940,749  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

 

Statements of Changes in Net Assets (continued)

 

     Franklin FTSE Taiwan ETF      Franklin FTSE United Kingdom ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
     Six Months Ended
September 30, 2023
(unaudited)
     Year Ended
March 31, 2023
 

 

 

Increase (decrease) in net assets:

           

Operations:

           

Net investment income

     $     4,994,580        $     1,574,443        $   12,213,788        $   20,825,635  

Net realized gain (loss)

     (1,069,953      (1,985,757      636,076        (8,708,680

Net change in unrealized appreciation (depreciation)

     (9,372,145      (1,981,761      (6,570,080      (35,670,632
  

 

 

 

Net increase (decrease) in net assets resulting from operations

     (5,447,518      (2,393,075      6,279,784        (23,553,677
  

 

 

 

Distributions to shareholders (Note 1f)

     (763,492      (1,549,538      (11,014,625      (20,583,824
  

 

 

 

Capital share transactions: (Note 2)

     39,905,697        97,369,890        21,003,501        (474,084
  

 

 

 

Net increase (decrease) in net assets

     33,694,687        93,427,277        16,268,660        (44,611,585

Net assets:

           

Beginning of period

     137,093,827        43,666,550        568,960,915        613,572,500  
  

 

 

 

End of period

     $170,788,514        $137,093,827        $585,229,575        $568,960,915  
  

 

 

 

 

           
296             

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FRANKLIN TEMPLETON ETF TRUST

 

Notes to Financial Statements (unaudited)

 

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company consisting of fifty-one separate funds, twenty-two of which are included in this report (Funds). The Funds follow the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946, Financial Services - Investment Companies (“ASC 946”) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP), including, but not limited to, ASC 946. Each of the Funds are an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of each Fund’s corresponding underlying index.

Effective August 1, 2023 Franklin FTSE Europe Hedged ETF changed its name to Franklin FTSE Eurozone ETF.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

The Funds’ investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Funds calculate the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Board has designated the Fund’s investment manager as the valuation designee and has responsibility for oversight of valuation. The investment manager is assisted by the Fund’s administrator in performing this responsibility, including leading the cross-functional Valuation Committee (VC).

The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at

4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Funds’ pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Funds’ net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Funds. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, an independent pricing service may be used to adjust the Funds’ portfolio securities to the latest indications of fair value at 4 p.m. Eastern time. At September 30, 2023, certain securities may have been fair valued using these procedures, in which case the securities were categorized as Level 2 inputs within the fair value hierarchy (referred to as “market level fair value”).

 

           
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Funds’ NAV is not calculated, which could result in differences between the value of the Funds’ portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Funds for financial reporting purposes.

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Funds may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.

The Funds do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statements of Operations.

Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in foreign exchange rates on

foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.

c. Derivative Financial Instruments

Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Funds to gains or losses in excess of the amounts shown in the Statements of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statements of Operations.

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Certain or all Funds attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty.

Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

1. Organization and Significant Accounting Policies (continued)

c. Derivative Financial Instruments (continued)

Collateral requirements differ by type of derivative. Collateral terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

Certain or all Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.

Certain or all Funds entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.

See Note 7 regarding other derivative information.

d. Securities Lending

Certain or all Funds participate in an agency based securities lending program to earn additional income. The Fund receives cash collateral against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of

loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. The collateral is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Funds. These securities received as collateral are held in segregated accounts with the Funds’ custodian. The Fund cannot repledge or resell these securities received as collateral. As such, the non-cash collateral is excluded from the Statements of Assets and Liabilities. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statements of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.

e. Income and Deferred Taxes

It is each Funds’ policy to qualify as a regulated investment company under the Internal Revenue Code. The Funds intend to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Funds invest. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, Funds records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of September 30, 2023, each Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for

 

           
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

1. Organization and Significant Accounting Policies (continued)

e. Income and Deferred Taxes (continued)

any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Funds invest.

As a result of several court cases, in certain countries across the European Union the Fund filed additional tax reclaims for previously withheld taxes on dividends earned in those countries (EU reclaims). Income recognized, if any, for EU reclaims is reflected as European Union tax reclaims in the Statements of Operations and any related receivable is reflected as European Union tax reclaims receivable in the Statements of Assets and Liabilities. Any fees associated with these filings are reflected as European Union tax reclaim contingent fees in the Statements of Operations. When uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these EU reclaims, and the potential timing of payment, no amounts are reflected in the financial statements. For U.S. income tax purposes, EU reclaims received by the Funds, if any, reduce the amount of foreign taxes Fund shareholders can use as tax deductions or credits on their income tax returns. In the event that EU reclaims received by the Funds during a fiscal year exceed foreign withholding taxes paid by the Funds, and the Funds previously passed through to its shareholders foreign taxes incurred by the Fund to be used as a credit or deduction on a shareholder’s income tax return, the Funds will enter into a closing agreement with the Internal Revenue Service (IRS) in order to pay the associated tax liability on behalf of the Funds shareholders. During the fiscal year ended March 31, 2023, the Funds received EU reclaims in excess of the foreign taxes paid during the year. The Funds determined to enter into a closing agreement with the IRS and recorded the estimated payments as a reduction to income, as reflected adjustments to estimated payments as other income in the Statement of Operations.

f. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income

and estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Stock dividends are reflected as non-cash dividend income on the Statement of Operations. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Funds that incurred the expense. These expenses are paid by the Fund or by the investment manager, as applicable, according to the terms of the unified management fee agreement.

g. Accounting Estimates

The preparation of financial statement in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

h. Guarantees and Indemnifications

Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

2. Shares of Beneficial Interest

Shares of the Funds is issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Funds. Once created, shares of the Funds generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).

Authorized Participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Funds regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Funds.

In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.

At September 30, 2023, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:

 

     Franklin FTSE Asia ex Japan ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
          Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount           Shares         Amount      

 

 

Shares sold

     200,000      $ 4,133,129             $ 13,819  

Shares redeemed

     (400,000      (8,157,186       (200,000     (4,010,830
  

 

 

 

Net increase (decrease)

     (200,000    $ (4,024,057       (200,000   $ (3,997,011
  

 

 

 
     Franklin FTSE Australia ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
          Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount           Shares     Amount  

 

 

Shares sold

     50,000      $ 1,313,154         200,000     $ 5,212,830  

Shares redeemed

                    (50,000     (1,301,254
  

 

 

 

Net increase (decrease)

     50,000      $ 1,313,154         150,000     $ 3,911,576  
  

 

 

 
     Franklin FTSE Brazil ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
          Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount           Shares     Amount  

 

 

Shares sold

     500,000      $ 9,305,257         7,000,000     $ 130,953,951  

Shares redeemed

     (9,600,000      (174,782,079       (13,400,000     (247,808,780
  

 

 

 

Net increase (decrease)

     (9,100,000    $ (165,476,822       (6,400,000   $ (116,854,829
  

 

 

 

 

           
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

2. Shares of Beneficial Interest (continued)

 

     Franklin FTSE Canada ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
          

Year Ended
March 31, 2023

 
  

 

 

 
     Shares      Amount            Shares          Amount      

 

 

Shares sold

     1,950,000      $ 60,700,136          11,250,000      $ 360,676,656  

Shares redeemed

     (100,000      (3,223,003        (3,350,000      (101,820,725
  

 

 

 

Net increase (decrease)

     1,850,000      $ 57,477,133          7,900,000      $ 258,855,931  
  

 

 

 
    

Franklin FTSE China ETF

 
  

 

 

 
    

Six Months Ended

September 30, 2023

           Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount           

Shares

     Amount  

 

 

Shares sold

     400,000      $ 7,393,294          600,000      $ 11,335,252  
  

 

 

 

Net increase (decrease)

     400,000      $ 7,393,294          600,000      $ 11,335,252  
  

 

 

 
     Franklin FTSE Europe ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
           Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     400,000      $ 10,997,894          2,800,000      $ 71,589,590  

Shares redeemed

                     (5,400,000      (128,880,944
  

 

 

 

Net increase (decrease)

     400,000      $ 10,997,894          (2,600,000    $ (57,291,354
  

 

 

 
     Franklin FTSE Eurozone ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
           Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     600,000      $ 14,540,210          400,000      $ 10,645,855  

Shares redeemed

     (400,000      (9,328,576        (600,000      (14,815,602
  

 

 

 

Net increase (decrease)

     200,000      $ 5,211,634          (200,000    $ (4,169,747
  

 

 

 
     Franklin FTSE France ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
           Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

          $               $  

Shares redeemed

                     (150,000      (3,601,500
  

 

 

 

Net increase (decrease)

          $          (150,000    $ (3,601,500
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

2. Shares of Beneficial Interest (continued)

 

     Franklin FTSE Germany ETF  
    

 

 
     Six Months Ended
September 30, 2023
          

Year Ended

March 31, 2023

 
    

 

 
     Shares      Amount            Shares          Amount      

 

 

Shares sold

          $          300,000      $ 5,539,373  

Shares redeemed

     (50,000      (1,086,035        (250,000      (5,144,120
  

 

 

 

Net increase (decrease)

     (50,000    $ (1,086,035        50,000      $ 395,253  
    

 

 
     Franklin FTSE Hong Kong ETF  
    

 

 
     Six Months Ended
September 30, 2023
          

Year Ended

March 31, 2023

 
    

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

          $          200,000      $ 4,048,817  

Shares redeemed

     (200,000      (3,633,931        (150,000      (3,319,699
  

 

 

 

Net increase (decrease)

     (200,000    $ (3,633,931        50,000      $ 729,118  
  

 

 

 
     Franklin FTSE India ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
          

Year Ended

March 31, 2023

 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     8,500,000      $ 257,682,350          2,000,000      $ 57,341,977  

Shares redeemed

     (150,000      (4,722,049                
  

 

 

 

Net increase (decrease)

     8,350,000      $ 252,960,301          2,000,000      $ 57,341,977  
  

 

 

 
     Franklin FTSE Italy ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
          

Year Ended

March 31, 2023

 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

          $          50,000      $ 1,248,714  
  

 

 

 

Net increase (decrease)

          $          50,000      $ 1,248,714  
  

 

 

 
     Franklin FTSE Japan ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
          

Year Ended

March 31, 2023

 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     18,600,000      $ 500,352,527          17,400,000      $ 429,036,842  

Shares redeemed

     (1,200,000      (32,489,431        (7,200,000      (163,343,278
  

 

 

 

Net increase (decrease)

     17,400,000      $ 467,863,096          10,200,000      $ 265,693,564  
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

2. Shares of Beneficial Interest (continued)

 

     Franklin FTSE Japan Hedged ETF  
    

 

 
     Six Months Ended
September 30, 2023
           Year Ended
March 31, 2023
 
    

 

 
     Shares      Amount            Shares          Amount      

 

 

Shares sold

     7,400,000      $ 220,912,272          200,000      $ 6,015,210  

Shares redeemed

                     (500,000      (12,693,008
  

 

 

 

Net increase (decrease)

     7,400,000      $ 220,912,272          (300,000    $ (6,677,798
    

 

 
     Franklin FTSE Latin America ETF  
    

 

 
     Six Months Ended
September 30, 2023
           Year Ended
March 31, 2023
 
    

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

          $ 9,532          3,000,000      $ 56,516,479  

Shares redeemed

     (500,000      (10,660,117                
  

 

 

 

Net increase (decrease)

     (500,000    $ (10,650,585        3,000,000      $ 56,516,479  
  

 

 

 
     Franklin FTSE Mexico ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
           Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     350,000      $ 10,633,313          450,000      $ 12,282,600  

Shares redeemed

     (150,000      (4,410,120        (50,000      (1,267,879
  

 

 

 

Net increase (decrease)

     200,000      $ 6,223,193          400,000      $ 11,014,721  
  

 

 

 
     Franklin FTSE Saudi Arabia ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
           Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

          $          550,000      $ 18,562,690  
  

 

 

 

Net increase (decrease)

          $          550,000      $ 18,562,690  
  

 

 

 
     Franklin FTSE South Africa ETF  
  

 

 

 
     Six Months Ended
September 30, 2023
           Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

          $               $  

Shares redeemed

                     (100,000      (2,054,548
  

 

 

 

Net increase (decrease)

          $          (100,000    $ (2,054,548
  

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

2. Shares of Beneficial Interest (continued)

 

    

Franklin FTSE South Korea ETF

 
  

 

 

 
     Six Months Ended
September 30, 2023
           Year Ended March 31, 2023  
  

 

 

 
     Shares      Amount            Shares          Amount      

 

 

Shares sold

     1,800,000      $ 38,617,442          11,500,000      $ 237,736,926  
  

 

 

 

Net increase (decrease)

     1,800,000      $ 38,617,442          11,500,000      $ 237,736,926  
  

 

 

 
    

Franklin FTSE Switzerland ETF

 
  

 

 

 
     Six Months Ended
September 30, 2023
           Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     100,000      $ 3,129,378          500,000      $ 14,529,344  

Shares redeemed

     (300,000      (9,402,703        (300,000      (8,699,037
  

 

 

 

Net increase (decrease)

     (200,000    $ (6,273,325        200,000      $ 5,830,307  
  

 

 

 
    

Franklin FTSE Taiwan ETF

 
  

 

 

 
     Six Months Ended
September 30, 2023
           Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     1,000,000      $ 39,905,697          2,800,000      $ 100,458,761  

Shares redeemed

                     (100,000      (3,088,871
  

 

 

 

Net increase (decrease)

     1,000,000      $ 39,905,697          2,700,000      $ 97,369,890  
  

 

 

 
    

Franklin FTSE United Kingdom ETF

 
  

 

 

 
     Six Months Ended
September 30, 2023
           Year Ended
March 31, 2023
 
  

 

 

 
     Shares      Amount            Shares      Amount  

 

 

Shares sold

     1,650,000      $ 39,742,500          7,150,000      $ 165,942,304  

Shares redeemed

     (750,000      (18,738,999        (7,750,000      (166,416,388
  

 

 

 

Net increase (decrease)

     900,000      $ 21,003,501          (600,000    $ (474,084
  

 

 

 

3. Transactions with Affiliates

Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:

 

Subsidiary    Affiliation

Franklin Advisers, Inc (Advisers)

  

Investment manager

Franklin Advisory Services, LLC (FASL)

  

Investment manager

Franklin Templeton Services, LLC (FT Services)

  

Administrative manager

Franklin Distributors, LLC (Distributors)

  

Principal underwriter

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

3. Transactions with Affiliates (continued)

 

a. Management fees

The Funds pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Funds’ acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The fee is calculated daily and paid monthly according to the terms of the management agreement. The gross effective investment management fees are based on the average daily net assets of each of the Funds as follows:

 

     

Gross Effective Investment

Management Fee Rate

Franklin FTSE Asia ex Japan ETF

  

0.19%

Franklin FTSE Australia ETF

  

0.09%

Franklin FTSE Brazil ETF

  

0.19%

Franklin FTSE Canada ETF

  

0.09%

Franklin FTSE China ETF

  

0.19%

Franklin FTSE Europe ETF

  

0.09%

Franklin FTSE Eurozone ETF

  

0.09%

Franklin FTSE France ETF

  

0.09%

Franklin FTSE Germany ETF

  

0.09%

Franklin FTSE Hong Kong ETF

  

0.09%

Franklin FTSE India ETF

  

0.19%

Franklin FTSE Italy ETF

  

0.09%

Franklin FTSE Japan ETF

  

0.09%

Franklin FTSE Japan Hedged ETF

  

0.09%

Franklin FTSE Latin America ETF

  

0.19%

Franklin FTSE Mexico ETF

  

0.19%

Franklin FTSE Saudi Arabia ETF

  

0.39%

Franklin FTSE South Africa ETF

  

0.19%

Franklin FTSE South Korea ETF

  

0.09%

Franklin FTSE Switzerland ETF

  

0.09%

Franklin FTSE Taiwan ETF

  

0.19%

Franklin FTSE United Kingdom ETF

  

0.09%

b. Administrative Fees

Under an agreement with FASL, FT Services provides administrative services to the Funds. The fee is paid by FASL based on the Funds’ average daily net assets, and is not an additional expense of the Funds.

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

3. Transactions with Affiliates (continued)

 

c. Investments in Affiliated Management Investment Companies

Certain or all Funds invest in one or more affiliated management investment companies. As defined in the 1940 Act, an investment is deemed to be a “Controlled Affiliate” of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund’s outstanding shares or has the power to exercise control over management or policies of such fund. The Funds do not invest for purposes of exercising a controlling influence over the management or policies. Management fees paid by the Funds are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended September 30, 2023, investments in affiliated management investment companies were as follows:

 

     Value at
Beginning
of Period
    Purchases     Sales     Realized
Gain (Loss)
   

Net Change in
Unrealized
Appreciation

(Depreciation)

    Value at
End of
Period
    Number
of Shares
Held at
End of
Period
         Investment
Income
 
Franklin FTSE Asia ex Japan ETF Non-Controlled Affiliates                    


Income
from
Securities
loaned
 
 
 
 
                 

 

 

 

Institutional Fiduciary Trust - Money Market Portfolio, 5.15%

      $     $ 8,932     $ (8,932     $ —       $ —       $               $         —  
           

 

 

 

Franklin FTSE China ETF

Non-Controlled Affiliates

                   


Income
from
Securities
loaned
 
 
 
 
                 

 

 

 

Institutional Fiduciary Trust - Money Market Portfolio, 5.15%

      $     $ 181,303     $ (181,303     $ —       $ —       $               $      251  
           

 

 

 

Franklin FTSE Eurozone ETF

Non-Controlled Affiliates

                   
Dividend
Income
 
 
                 

 

 

 

Institutional Fiduciary Trust - Money Market Portfolio, 5.15%

      $ 4,136     $ 642,261     $ (645,401     $ —       $ —       $ 996       996         $          —  
           

 

 

 

Franklin FTSE Japan ETF

Non-Controlled Affiliates

                   


Income
from
Securities
loaned
 
 
 
 
                 

 

 

 

Institutional Fiduciary Trust - Money Market Portfolio, 5.15%

      $ 61,459     $ 22,232,229     $ (22,285,532     $ —       $ —       $ 8,156       8,156         $          —  
           

 

 

 

Franklin FTSE Japan Hedged ETF

Non-Controlled Affiliates

                   
Dividend
Income
 
 
                 

 

 

 

Institutional Fiduciary Trust - Money Market Portfolio, 5.15%

      $ 721     $ 5,028,235     $ (5,014,909     $ —       $ —       $ 14,047       14,047         $          —  
           

 

 

 

Franklin FTSE United Kingdom ETF

Non-Controlled Affiliates

                   


Income
from
Securities
loaned
 
 
 
 
                 

 

 

 

Institutional Fiduciary Trust - Money Market Portfolio, 5.15%

      $ 10     $     $ (10     $ —       $ —       $               $       (169
           

 

 

 

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

3. Transactions with Affiliates (continued)

 

d. Other Affiliated Transactions

At September 30, 2023, the shares of the Funds were owned by the following entities:

 

Funds    Shares     Percentage of
        Outstanding Sharesa
 

 

 
Franklin FTSE Asia ex Japan ETF     

Franklin Resources Inc.

     130,000       10.8%  
  

 

 

 
Franklin FTSE Latin America ETF     

Franklin Resources Inc.

     675,000       24.1%  
  

 

 

 
Franklin FTSE South Africa ETF     

Franklin Resources Inc.

     16,000       16.0%  
  

 

 

 
Franklin FTSE Taiwan ETF     

Franklin Resources Inc.

         1,040,000       22.1%  
  

 

 

 
Franklin FTSE United Kingdom ETF     

Franklin Resources Inc.

     4,075,000       16.7%  
  

 

 

 

aInvestment activities of significant shareholders could have a material impact on the Funds.

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2023, the capital loss carryforwards were as follows:

 

   

Franklin
FTSE

Asia ex
Japan

ETF

   

Franklin

FTSE Australia

ETF

   

Franklin
FTSE

Brazil

ETF

   

Franklin

FTSE

Canada ETF

 

 

 
Capital loss carryforwards not subject to expiration:        

Long term

              $ 2,978,321     $ 861,861             $ 58,599,726             $ 917,859  

Short term

    773,828       287,758       66,857,630       2,247,375  
 

 

 

 

Total capital loss carryforwards

              $ 3,752,149     $ 1,149,619             $ 125,457,356             $ 3,165,234  
 

 

 

 
   

Franklin
FTSE China

ETF

   

Franklin

FTSE

Europe

ETF

    Franklin
FTSE
Eurozone
ETF
   

Franklin

FTSE

France

ETF

 

 

 
Capital loss carryforwards not subject to expiration:        

Long term

              $ 13,143,127             $ 3,778,280             $ 185,736             $ 253,790  

Short term

    3,376,115       908,263       211,682       52,788  
 

 

 

 

Total capital loss carryforwards

              $ 16,519,242             $ 4,686,543             $ 397,418             $ 306,578  
 

 

 

 
    Franklin
FTSE
Germany
ETF
   

Franklin

FTSE
Hong Kong
ETF

   

Franklin
FTSE

India

ETF

   

Franklin

FTSE

Italy

ETF

 

 

 
Capital loss carryforwards not subject to expiration:        

Long term

              $ 744,560             $ 809,586             $ 1,024,623             $ 358,163  

Short term

    207,142       553,844       321,248       22,058  
 

 

 

 

Total capital loss carryforwards

              $ 951,702             $ 1,363,430             $ 1,345,871             $ 380,221  
 

 

 

 

 

           
308              Semiannual Report   franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

4. Income Taxes (continued)

 

    

Franklin
FTSE
Japan

ETF

   

Franklin

FTSE

Japan

Hedged ETF

   

Franklin
FTSE
Latin America

ETF

   

Franklin

FTSE

Mexico

ETF

 

 

 
Capital loss carryforwards not subject to expiration:         

Long term

               $ 14,225,837             $             $ 890,110             $ 826,878  

Short term

     3,657,331             668,844       80,987  
  

 

 

 

Total capital loss carryforwards

               $ 17,883,168             $             $ 1,558,954             $ 907,865  
  

 

 

 
    

Franklin
FTSE
Saudi
Arabia

ETF

   

Franklin

FTSE

South Africa

ETF

    Franklin
FTSE
South Korea
ETF
   

Franklin

FTSE
Switzerland
ETF

 

 

 
Capital loss carryforwards not subject to expiration:         

Long term

               $ 12,585             $ 329,148             $ 4,244,652             $ 510,380  

Short term

     51,837       75,911       2,671,797       794,022  
  

 

 

 

Total capital loss carryforwards

               $ 64,422             $ 405,059             $ 6,916,449             $ 1,304,402  
  

 

 

 
     Franklin
FTSE
Taiwan
ETF
   

Franklin

FTSE
United Kingdom

ETF

             

 

     
Capital loss carryforwards not subject to expiration:         

Long term

               $ 1,217,333             $ 11,733,951      

Short term

     636,412       5,822,629      
  

 

 

     

Total capital loss carryforwards

               $ 1,853,745             $ 17,556,580      
  

 

 

     

At September 30, 2023, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:

 

    

Franklin

FTSE
Asia ex Japan
ETF

    Franklin
FTSE
Australia
ETF
   

Franklin
FTSE

Brazil

ETF

   

Franklin
FTSE
Canada

ETF

 

 

 

Cost of investments

           $ 26,918,471     $ 29,147,689     $ 102,245,130     $ 356,955,305  
  

 

 

 

Unrealized appreciation

           $ 3,363,154     $ 1,751,936     $ 23,444,603     $ 9,689,044  

Unrealized depreciation

     (5,749,040     (2,001,126     (2,499,830     (37,144,913
  

 

 

 

Net unrealized appreciation (depreciation)

           $ (2,385,886   $ (249,190   $ 20,944,773     $ (27,455,869
  

 

 

 

 

           
franklintempleton.com  

Semiannual Report

             309


FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

4. Income Taxes (continued)

 

    

Franklin

FTSE

China

ETF

   

Franklin

FTSE

Europe

ETF

    Franklin
FTSE
Eurozone
ETF
   

Franklin
FTSE
France

ETF

 

 

 

Cost of investments

           $ 142,921,466     $ 123,873,557     $ 19,844,750     $ 5,875,495  
  

 

 

 

Unrealized appreciation

           $ 5,028,571     $ 4,680,969     $ 77,420     $ 511,770  

Unrealized depreciation

     (41,715,928     (12,475,734     (2,485,568     (628,395
  

 

 

 

Net unrealized appreciation (depreciation)

           $ (36,687,357   $ (7,794,765   $ (2,408,148   $ (116,625
  

 

 

 
    

Franklin

FTSE

Germany

ETF

   

Franklin

FTSE
Hong Kong

ETF

   

Franklin
FTSE

India

ETF

   

Franklin
FTSE

Italy

ETF

 

 

 

Cost of investments

           $ 18,041,690     $ 15,234,895     $ 342,752,072     $ 4,427,315  
  

 

 

 

Unrealized appreciation

           $ 455,406     $ 159,297     $ 38,047,781     $ 857,632  

Unrealized depreciation

     (3,134,831     (4,570,482     (3,461,027     (145,585
  

 

 

 

Net unrealized appreciation (depreciation)

           $ (2,679,425   $ (4,411,185   $ 34,586,754     $ 712,047  
  

 

 

 
    

Franklin

FTSE

Japan

ETF

   

Franklin

FTSE

Japan

Hedged

ETF

   

Franklin
FTSE

Latin
America

ETF

   

Franklin
FTSE
Mexico

ETF

 

 

 

Cost of investments

           $ 1,554,748,985     $ 251,216,313     $ 51,958,075     $ 28,789,597  
  

 

 

 

Unrealized appreciation

           $ 91,809,257     $ 10,396,643     $ 10,369,386     $ 2,569,127  

Unrealized depreciation

     (163,841,010     (14,475,672     (2,224,199     (1,030,031
  

 

 

 

Net unrealized appreciation (depreciation)

           $ (72,031,753   $ (4,079,029   $ 8,145,187     $ 1,539,096  
  

 

 

 
    

Franklin

FTSE

Saudi Arabia

ETF

   

Franklin FTSE

South Africa
ETF

   

Franklin
FTSE

South Korea
ETF

    Franklin
FTSE
Switzerland
ETF
 

 

 

Cost of investments

           $ 21,159,946     $ 2,618,881     $ 319,564,259     $ 41,896,053  
  

 

 

 

Unrealized appreciation

       $ 1,784,761     $ 24,838     $ 23,381,619     $ 2,636,768  

Unrealized depreciation

     (754,538     (643,816     (30,585,031     (3,293,149
  

 

 

 

Net unrealized appreciation (depreciation)

           $ 1,030,223     $ (618,978   $ (7,203,412   $ (656,381
  

 

 

 
    

Franklin

FTSE

Taiwan

ETF

    Franklin FTSE
United Kingdom
ETF
             

 

     

Cost of investments

           $ 168,144,674     $ 613,514,538      
  

 

 

     

Unrealized appreciation

           $ 10,124,466     $ 42,046,902      

Unrealized depreciation

     (8,080,882     (75,111,281    
  

 

 

     

Net unrealized appreciation (depreciation)

           $ 2,043,584     $ (33,064,379    
  

 

 

     

 

           
310              Semiannual Report   franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

4. Income Taxes (continued)

 

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of foreign currency transactions, passive foreign investment company shares, EU reclaims and in-kind shareholder redemptions.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the period ended September 30, 2023, were as follows:

 

    

Franklin

FTSE

Asia ex Japan

ETF

   

Franklin

FTSE Australia

ETF

   

Franklin

FTSE

Brazil

ETF

   

Franklin
FTSE
Canada

ETF

 

 

 

Purchases

              $ 4,835,907     $ 1,144,584     $ 12,935,658     $ 8,591,574  

Sales

     $ 5,809,199     $ 1,011,714     $ 178,675,624     $ 7,372,980  
    

Franklin

FTSE

China

ETF

   

Franklin

FTSE

Europe

ETF

   

Franklin

FTSE

Eurozone

ETF

   

Franklin
FTSE

France

ETF

 

 

 

Purchases

     $ 14,082,190     $ 3,299,644     $ 15,629,246     $ 196,839  

Sales

     $ 6,203,327     $ 3,062,443     $ 15,787,633     $ 152,000  
    

Franklin

FTSE

Germany

ETF

   

Franklin

FTSE

Hong Kong

ETF

   

Franklin

FTSE

India

ETF

   

Franklin

FTSE

Italy

ETF

 

 

 

Purchases

     $ 498,987     $ 528,858     $ 263,542,214     $ 448,085  

Sales

     $ 597,834     $ 394,145     $ 17,123,554     $ 456,140  
    

Franklin

FTSE

Japan

ETF

   

Franklin

FTSE

Japan Hedged
ETF

   

Franklin

FTSE

Latin America

ETF

    Franklin
FTSE
Mexico
ETF
 

 

 

Purchases

     $ 30,426,344     $ 26,402,914     $ 2,308,310     $ 2,767,148  

Sales

     $ 24,680,097     $ 8,496,341     $ 9,464,596     $ 2,241,195  
    

Franklin

FTSE

Saudi Arabia

ETF

   

Franklin

FTSE

South Africa
ETF

   

Franklin
FTSE

South Korea
ETF

    Franklin
FTSE
Switzerland
ETF
 

 

 

Purchases

     $ 1,721,134     $ 122,534     $ 50,568,051     $ 4,550,291  

Sales

     $ 1,493,538     $ 123,289     $ 18,407,962     $ 5,080,500  
    

Franklin

FTSE

Taiwan

ETF

   

Franklin

FTSE

United Kingdom
ETF

             

 

     

Purchases

     $ 49,764,360     $ 13,839,686      

Sales

     $ 6,033,319     $ 12,245,395      

 

           
franklintempleton.com  

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             311


FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

5. Investment Transactions (continued)

 

In-kind transactions associated with creation and redemptions for the period ended September 30, 2023, were as follows:

 

    

Franklin

FTSE

Asia ex Japan

ETF

   

Franklin

FTSE

Australia

ETF

   

Franklin

FTSE

Brazil

ETF

    Franklin
FTSE
Canada
ETF
 

 

 

Cost of Securities Received

     $ 430,898     $ 1,301,793     $     $ 60,366,200  

Value of Securities Delivereda

              $ 3,366,198     $     $     $ 3,198,975  
    

Franklin

FTSE

China

ETF

   

Franklin FTSE
Europe

ETF

    Franklin
FTSE
Eurozone
ETF
   

Franklin
FTSE
France

ETF

 

 

 

Cost of Securities Received

     $ 376,615     $ 10,845,874     $ 14,278,962     $  

Value of Securities Delivereda

     $     $     $ 9,284,541     $  
    

Franklin

FTSE

Germany

ETF

   

Franklin FTSE

Hong Kong

ETF

   

Franklin
FTSE

India

ETF

   

Franklin

FTSE

Italy

ETF

 

 

 

Cost of Securities Received

     $     $     $     $  

Value of Securities Delivereda

     $ 1,083,130     $ 3,612,543     $     $  
    

Franklin

FTSE

Japan

ETF

   

Franklin

FTSE

Japan Hedged

ETF

   

Franklin

FTSE

Latin America
ETF

   

Franklin
FTSE
Mexico

ETF

 

 

 

Cost of Securities Received

     $ 491,066,835     $ 220,076,249     $     $ 10,312,360  

Value of Securities Delivereda

     $ 32,208,129     $     $ 3,352,704     $ 4,407,086  
    

Franklin

FTSE

Saudi Arabia

ETF

   

Franklin

FTSE

South Africa

ETF

   

Franklin
FTSE

South Korea
ETF

    Franklin
FTSE
Switzerland
ETF
 

 

 

Cost of Securities Received

     $     $     $     $ 3,055,291  

Value of Securities Delivereda

     $     $     $     $ 9,188,504  
    

Franklin

FTSE

Taiwan

ETF

   

Franklin

FTSE United
Kingdom

ETF

             

 

     

Cost of Securities Received

     $     $ 39,418,778      

Value of Securities Delivereda

     $     $ 18,569,011      

aRealized gains and losses from in-kind redemptions, as shown on the Statement of Operations, are not recognized by the Funds for tax purposes.

 

           
312              Semiannual Report   franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

5. Investment Transactions (continued)

 

At September 30, 2023, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:

 

    

Franklin

FTSE

Japan

ETF

 

 

 
Securities lending transactionsa:       

Equity Investmentsb

   $ 934,680  
  

 

 

 

aThe agreements can be terminated at any time.

bThe gross amount of recognized liability for such transactions is included in payable upon return of securities loaned in the Statements of Assets and Liabilities.

6. Concentration of Risk

Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S.securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Political and financial uncertainty in many foreign regions may increase market volatility and the economic risk of investing in foreign securities. In addition, certain foreign securities may not be as liquid as U.S. securities.

Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The United States and other countries have also imposed economic sanctions on Belarus and may impose sanctions on other countries that support Russia’s military invasion. These sanctions, as well as any other economic consequences related to the invasion, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on governments, companies or individuals, may further decrease the value and liquidity of certain Russian securities and securities of issuers in other countries that are subject to economic sanctions related to the invasion. To the extent that the Funds have exposure to Russian investments or investments in countries affected by the invasion, the Funds’ ability to price, buy, sell, receive or deliver such investments was impaired. The Funds could determine at any time that certain of the most affected securities have little or no value. In addition, any exposure that the Funds may have to counterparties in Russia or in countries affected by the invasion could negatively impact the Funds’ portfolio. The extent and duration of Russia’s military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact each Fund’s performance and the value of an investment in the Funds, even beyond any direct exposure the Funds may have to Russian issuers or issuers in other countries affected by the invasion.

Certain investments in China companies may be made through a special structure known as a variable interest entity (VIE). In a VIE structure, foreign investors, such as Franklin FTSE Asia ex Japan ETF & Franklin FTSE China ETF will only own stock in a shell company rather than directly in the VIE, which must be owned by Chinese nationals (and/or China companies) to obtain the licenses and/or assets required to operate in a restricted or prohibited sector in China. The value of the shell company is derived from its ability to consolidate the VIE into its financials pursuant to contractual arrangements that allow the shell company to exert a degree of control over, and obtain economic benefits arising from, the VIE without formal legal ownership. While VIEs are a longstanding industry practice and are well known by Chinese officials and regulators, the structure historically has not been formally recognized under Chinese law and it is uncertain whether Chinese officials or regulators will withdraw their implicit acceptance of the structure. It is also uncertain whether the contractual arrangements, which may be subject to conflicts of interest between the legal owners of the VIE and foreign investors, would be enforced by Chinese courts or arbitration bodies. Prohibitions of these structures by the Chinese government, or the inability to enforce such contracts,

from which the shell company derives its value, would likely cause the VIE-structured holding(s) to suffer significant, detrimental, and possibly permanent losses, and in turn, adversely affect the Funds’ returns and net asset value.

 

           
franklintempleton.com  

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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

 

7. Other Derivative Information

At September 30, 2023, the Funds’ investments in derivative contracts are reflected in the Statements of Asset and Liabilities as follows:

 

   

Asset Derivatives

   

Liability Derivatives

 
     Statements of Assets and
Liabilities Location
  Fair Value     Statements of Assets and
Liabilities Location
  Fair Value  
Franklin FTSE Asia ex Japan ETF        

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 1,605 a 
   

 

 

     

 

 

 
Franklin FTSE Australia ETF        

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 15,318 a 
   

 

 

     

 

 

 
Franklin FTSE Brazil ETF        

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 89,896 a 
   

 

 

     

 

 

 
Franklin FTSE Canada ETF        

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 24,971 a 
   

 

 

     

 

 

 
Franklin FTSE China ETF        

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 8,024 a 
   

 

 

     

 

 

 
Franklin FTSE Europe ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 42,738 a    

Variation margin on futures contracts

  $ 14,410 a  
   

 

 

     

 

 

 
Franklin FTSE Eurozone ETF        

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 738 a  
   

 

 

     

 

 

 
Franklin FTSE France ETF        

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 938 a  
   

 

 

     

 

 

 
Franklin FTSE Hong Kong ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 320 a    

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE India ETF        

Foreign exchange contracts

 

Unrealized appreciation on OTC forward exchange contracts

  $ 5,329    

Unrealized depreciation on OTC forward exchange contracts

  $  

Index contracts

              3,055  
   

 

 

     

 

 

 

Totals

    $ 5,329       $ 3,055  
   

 

 

     

 

 

 
Franklin FTSE Japan ETF        

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $
 
104,623

 
   

 

 

     

 

 

 
Franklin FTSE Japan Hedged ETF        

Foreign exchange contracts

 

Unrealized appreciation on OTC forward exchange contracts

  $ 7,192,664    

Unrealized depreciation on OTC forward exchange contracts

  $ 9,155  

Index contracts

 

Variation margin on futures contracts

       

Variation margin on futures contracts

    15,554 a  
   

 

 

     

 

 

 

Totals

    $ 7,192,664       $ 24,709  
   

 

 

     

 

 

 
Franklin FTSE Latin America ETF        

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 10,223 a  

Interest rate contracts

 

Variation margin on futures contracts

       

Variation margin on futures contracts

    4,988 a  
   

 

 

     

 

 

 

Totals

    $       $ 15,211  
   

 

 

     

 

 

 
Franklin FTSE South Korea ETF        

Index contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 19,714 a  
   

 

 

     

 

 

 
Franklin FTSE Switzerland ETF        

Equity contracts

 

Variation margin on futures contracts

  $    

Variation margin on futures contracts

  $ 19,698 a  
   

 

 

     

 

 

 

 

           
314              Semiannual Report   franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

7. Other Derivative Information (continued)

 

   

Asset Derivatives

   

Liability Derivatives

 
     Statements of Assets and
Liabilities Location
  Fair Value     Statements of Assets and
Liabilities Location
  Fair Value  
Franklin FTSE Taiwan ETF        

Equity contracts

 

Variation margin on futures contracts

  $ 3,881 a    

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE United Kingdom ETF        

Equity contracts

 

Variation margin on futures contracts

  $
 
36,461

 
 

Variation margin on futures contracts

  $  
   

 

 

     

 

 

 

aThis amount reflects the cumulative appreciation (depreciation) of future contracts as reported in the Schedule of Investments. Only the variation margin receivable/payable at year end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment.

For the period ended September 30, 2023, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:

 

Derivative Contracts

Not Accounted for as

Hedging Instruments

 

Statements of

Operations Locations

  Net Realized
Gain (Loss)
for the Period
   

Statements of

Operations Locations

  Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period
 
Franklin FTSE Asia ex Japan ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 
Equity contracts  

Futures contracts

  $ 5,401    

Futures contracts

  $ (1,605
   

 

 

     

 

 

 
Franklin FTSE Australia ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 
Equity contracts  

Futures contracts

  $ 15,652    

Futures contracts

  $ 16,183  
   

 

 

     

 

 

 
Franklin FTSE Brazil ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 
Equity contracts  

Futures contracts

  $ 617,603    

Futures contracts

  $ 10,213  
   

 

 

     

 

 

 
Franklin FTSE Canada ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 
Equity contracts  

Futures contracts

  $ 42,946    

Futures contracts

  $ (38,152
   

 

 

     

 

 

 
Franklin FTSE China ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 
Foreign exchange contracts  

Forward exchange contracts

  $ (98  

Forward exchange contracts

  $  
Equity contracts  

Futures contracts

    37,829    

Futures contracts

    (8,024
   

 

 

     

 

 

 
Totals     $ 37,731       $ (8,024
   

 

 

     

 

 

 
Franklin FTSE Europe ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 
Equity contracts  

Futures contracts

  $ 29,896    

Futures contracts

  $ (42,738
   

 

 

     

 

 

 
Franklin FTSE Eurozone ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 
Foreign exchange contracts  

Forward exchange contracts

  $ (613,494  

Forward exchange contracts

  $ 292,899  

 

           
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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

7. Other Derivative Information (continued)

 

Derivative Contracts

Not Accounted for as

Hedging Instruments

 

Statements of

Operations Locations

 

Net Realized
Gain (Loss)

for the Period

   

Statements of

Operations Locations

 

Net Change in

Unrealized

Appreciation

(Depreciation)

for the Period

 

 

 
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 4,017    

Futures contracts

  $ (3,554
   

 

 

     

 

 

 

Totals

    $ (609,477     $ 289,345  
   

 

 

     

 

 

 
Franklin FTSE France ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 1,958    

Futures contracts

  $ (3,408
   

 

 

     

 

 

 
Franklin FTSE Germany ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 4,438    

Futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Hong Kong ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (3,486  

Futures contracts

  $ (744
   

 

 

     

 

 

 
Franklin FTSE India ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Foreign exchange contracts

 

Forward exchange contracts

  $    

Forward exchange contracts

  $ 5,329  

Equity contracts

 

Futures contracts

    9,214    

Futures contracts

    (3,055
   

 

 

     

 

 

 

Totals

    $ 9,214       $ 2,274  
   

 

 

     

 

 

 
Franklin FTSE Italy ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 1,086    

Futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Japan ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 2,204,280    

Futures contracts

  $ (266,906
   

 

 

     

 

 

 
Franklin FTSE Japan Hedged ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Foreign exchange contracts

 

Forward exchange contracts

  $ 11,335,185    

Forward exchange contracts

  $ 7,430,761  

Equity contracts

 

Futures contracts

    48,553    

Futures contracts

    (17,831
   

 

 

     

 

 

 

Totals

    $ 11,383,738       $ 7,412,930  
   

 

 

     

 

 

 
Franklin FTSE Latin America ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Foreign exchange contracts

 

Forward exchange contracts

  $ (1,079  

Forward exchange contracts

  $  

Equity contracts

 

Futures contracts

    13,478    

Futures contracts

    (333
   

 

 

     

 

 

 

Totals

    $ 12,399       $ (333
   

 

 

     

 

 

 

 

           
316              Semiannual Report   franklintempleton.com


FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

7. Other Derivative Information (continued)

 

Derivative Contracts

Not Accounted for as

Hedging Instruments

 

Statements of

Operations Locations

 

Net Realized

Gain (Loss)

for the Period

   

Statements of

Operations Locations

 

Net Change in

Unrealized

Appreciation

(Depreciation)

for the Period

 

 

 
Franklin FTSE Mexico ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (1,364  

Futures contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE Saudi Arabia ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Foreign exchange contracts

 

Forward exchange contracts

  $ (157  

Forward exchange contracts

  $  
   

 

 

     

 

 

 
Franklin FTSE South Korea ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 166,401    

Futures contracts

  $ (44,742
   

 

 

     

 

 

 
Franklin FTSE Switzerland ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ (3,181  

Futures contracts

  $ (58,011
   

 

 

     

 

 

 
Franklin FTSE Taiwan ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 25,415    

Futures contracts

  $ 3,881  
   

 

 

     

 

 

 
Franklin FTSE United Kingdom ETF        
 

Net realized gain (loss) from:

   

Net change in unrealized appreciation (depreciation) on:

 

Equity contracts

 

Futures contracts

  $ 68,676    

Futures contracts

  $ 8,979  
   

 

 

     

 

 

 

For the period ended September 30, 2023, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts were as follows:

 

     

Franklin

FTSE

Asia ex Japan

ETF

   

Franklin

FTSE

Australia

ETF

   

Franklin

FTSE

Brazil

ETF

   

Franklin    

FTSE    

Canada    

ETF    

Futures contracts

     $113,930       $253,228       $4,528,677     $1,031,639    

Forward exchange contracts

     $         —       $         —       $            —     $            —    
     

Franklin

FTSE

China

ETF

   

Franklin

FTSE

Europe

ETF

   

Franklin

FTSE

Eurozone

ETF

   

Franklin    

FTSE    

France    

ETF    

Futures contracts

     $578,523       $1,263,933       $     120,237     $79,531    

Forward exchange contracts

     $         —       $            —       $63,642,402     $       —    

 

           
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7. Other Derivative Information (continued)

 

     

Franklin

FTSE

Germany

ETF

   

Franklin

FTSE

Hong Kong

ETF

   

Franklin

FTSE

India

ETF

   

Franklin    

FTSE     

Italy     

ETF    

Futures contracts

     $72,632       $61,212       $1,453,521     $57,518    

Forward exchange contracts

     $       —       $       —       $4,837,691     $       —    
     

Franklin

FTSE

Japan

ETF

   

Franklin

FTSE
Japan Hedged

ETF

   

Franklin
FTSE

Latin America

ETF

    Franklin    
FTSE    
Mexico    
ETF    

Futures contracts

     $8,099,603       $       879,454       $876,986     $70,362    

Forward exchange contracts

     $            —       $395,214,691       $         —     $       —    
     Franklin     Franklin     Franklin     Franklin    
     FTSE     FTSE     FTSE     FTSE    
     Saudi Arabia     South Korea     Switzerland     Taiwan    
      ETF     ETF     ETF     ETF    

Futures contracts

     $         —       $2,210,098       $945,155     $1,774,730    

Forward exchange contracts

     $112,463       $            —       $         —     $            —    
     Franklin                  
     FTSE                  
     United Kingdom                  
      ETF                  

Futures contracts

     $4,300,658        

Forward exchange contracts

     $            —        

At September 30, 2023, the Funds’ OTC derivative assets and liabilities are as follows:

 

     Gross and Net Amounts of      
     Assets and Liabilities      
     Presented in the      
     Statements of      
     Assets and Liabilities      
      Assetsa             Liabilitiesa      
Franklin FTSE India ETF        

Foreign exchange contracts

   $ 5,329              $ —      
Franklin FTSE Japan Hedged ETF        

Foreign exchange contracts

   $ 7,192,664              $ 9,155      

aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities.

 

           
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7. Other Derivative Information (continued)

 

At September 30, 2023, the Funds’ OTC derivative assets, which may be offset against the Funds’ OTC derivative liabilities and collateral received from the counterparty, are as follows:

 

            Amounts Not Offset in the        
            Statements of Assets and Liabilities        
     

 

 

   
     Gross and Net Amounts            Financial              
     of Assets Presented      Financial           Instruments     Cash        
     in the Statements of      Instruments     Collateral     Collateral           Net Amount (Not  
       Assets and Liabilities            Available for Offset     Received a            Received a      less than zero)  
Franklin FTSE India ETF            
Counterparty            

State Street Bank & Trust Co.

     $       5,329        $       —       $ —       $ —       $       5,329  
Franklin FTSE Japan            
Hedged ETF            
Counterparty            

BOFA

     $1,799,366        $(1,466     $ —       $ —       $1,797,900  

HSBK

     1,797,122        (1,972                 1,795,150  

UBSW

     3,596,176        (5,717                 3,590,459  

Total

     $7,192,664        $(9,155     $ —       $ —       $7,183,509  

aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.

At September 30, 2023, the Funds’ OTC derivative liabilities, which may be offset against the Funds’ OTC derivative assets and collateral pledged to the counterparty, are as follows:

 

            Amounts Not Offset in the        
            Statements of Assets and Liabilities        
     

 

 

   
     Gross and Net Amounts             Financial              
     of Liabilities Presented      Financial            Instruments     Cash        
     in the Statements of      Instruments      Collateral     Collateral           Net Amount (Not  
       Assets and Liabilities              Available for Offset        Pledged a            Pledged a      less than zero)  
Franklin FTSE Japan             
Hedged ETF             
Counterparty             

BOFA

     $1,466        $(1,466)        $ —       $ —       $ —  

HSBK

     1,972        (1,972)                     

UBSW

     5,717        (5,717)                     

Total

     $9,155        $(9,155)        $ —       $ —       $ —  

aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.

See Note 1(c) regarding derivative financial instruments.

8. Fair Value Measurements

The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds financial instruments and are summarized in the following fair value hierarchy:

 

   

Level 1 – quoted prices in active markets for identical financial instruments

 

           
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8. Fair Value Measurements (continued)

 

   

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

   

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

A summary of inputs used as of September 30, 2023, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:

 

      Level 1              Level 2              Level 3             Total  

 

Franklin FTSE Asia ex Japan ETF

                   
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 24,525,692               $ 6,894               $  — c             $ 24,532,586  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 1,605               $               $              $ 1,605  
Franklin FTSE Australia ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 28,898,365               $ 134               $              $ 28,898,499  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 15,318               $               $              $ 15,318  
Franklin FTSE Brazil ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $    123,151,656               $       38,247               $              $ 123,189,903  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 89,896               $               $              $ 89,896  
Franklin FTSE Canada ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 329,499,436               $               $ c             $    329,499,436  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 24,971               $               $              $ 24,971  
Franklin FTSE China ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 106,234,108               $               $ c              $ 106,234,108  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 8,024               $               $              $ 8,024  
Franklin FTSE Europe ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 116,078,792               $               $ c             $ 116,078,792  

 

           
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

8. Fair Value Measurements (continued)

 

      Level 1              Level 2              Level 3             Total  

 

Franklin FTSE Europe ETF (continued)

                   

Other Financial Instruments:

                   

Futures Contracts

   $ 2,486               $               $  —              $ 2,486  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 14,410               $               $              $ 14,410  
Franklin FTSE Eurozone ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 17,435,606         $         $ c       $ 17,435,606  

Short-Term Investments

     996                                                996  

Total Investments in Securities

   $ 17,436,602               $               $              $ 17,436,602  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 738               $               $              $ 738  
Franklin FTSE France ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 5,758,870               $               $              $ 5,758,870  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 938               $               $              $ 938  
Franklin FTSE Germany ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 15,362,266               $               $              $ 15,362,266  
Franklin FTSE Hong Kong ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 10,813,919               $ 9,791               $              $ 10,823,710  

Other Financial Instruments:

                   

Futures Contracts

   $ 320               $               $              $ 320  
Franklin FTSE India ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $    376,962,911               $     375,915               $              $    377,338,826  

Other Financial Instruments:

                   

Forward Exchange Contracts

   $               $ 5,329               $              $ 5,329  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 3,055               $               $              $ 3,055  
Franklin FTSE Italy ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 5,139,362               $               $              $ 5,139,362  

 

           
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8. Fair Value Measurements (continued)

 

      Level 1              Level 2              Level 3             Total  

 

Franklin FTSE Japan ETF

                   
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 1,481,774,396         $         $  —         $ 1,481,774,396  

Short-Term Investments

     942,836                                                942,836  

Total Investments in Securities

   $ 1,482,717,232               $               $              $ 1,482,717,232  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 104,623               $               $              $ 104,623  
Franklin FTSE Japan Hedged ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 247,123,238         $         $        $ 247,123,238  

Short-Term Investments

     14,047                                                14,047  

Total Investments in Securities

   $ 247,137,285               $               $              $ 247,137,285  

Other Financial Instruments:

                   

Forward Exchange Contracts

   $               $  7,192,664               $              $ 7,192,664  
Liabilities:                    

Other Financial Instruments:

                   

Forward Exchange Contracts

   $         $ 9,155         $        $ 9,155  

Futures Contracts

     15,554                                                15,554  

Total Other Financial Instruments

   $ 15,554               $ 9,155               $              $ 24,709  
Franklin FTSE Latin America ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 60,090,941               $ 12,321               $              $ 60,103,262  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 15,211               $               $              $ 15,211  
Franklin FTSE Mexico ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 30,328,693               $               $              $ 30,328,693  
Franklin FTSE Saudi Arabia ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 22,190,169               $               $              $ 22,190,169  
Franklin FTSE South Africa ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 1,999,904               $               $              $ 1,999,904  
Franklin FTSE South Korea ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 312,312,164               $ 48,683               $              $ 312,360,847  

 

           
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

 

8. Fair Value Measurements (continued)

 

      Level 1              Level 2              Level 3             Total  

 

Franklin FTSE South Korea ETF (continued)

                   
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 19,714               $  —               $  —              $ 19,714  
Franklin FTSE Switzerland ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 41,239,673               $               $              $ 41,239,673  
Liabilities:                    

Other Financial Instruments:

                   

Futures Contracts

   $ 19,698               $               $              $ 19,698  
Franklin FTSE Taiwan ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $ 170,188,258               $               $              $    170,188,258  

Other Financial Instruments:

                   

Futures Contracts

   $ 3,881               $               $              $ 3,881  
Franklin FTSE United Kingdom ETF                    
Assets:                    

Investments in Securities:a

                   

Equity Investmentsb

   $    580,450,160               $               $ c             $ 580,450,160  

Other Financial Instruments:

                   

Futures Contracts

   $ 36,461               $              —               $              $ 36,461  

a For detailed categories, see the accompanying Schedules of Investments.

b Includes common and preferred stocks, warrants, as well as other equity investments.

c Includes financial instruments determined to have no value.

9. New Accounting Pronouncements

In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-03, Fair Value Measurement (Topic 820) – Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The amendments in the ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, should not be considered in measuring fair value. The ASU is effective for interim and annual reporting periods beginning after December 15, 2023, with the option of early adoption. Management has reviewed the requirements and concluded that the adoption of the ASU will not have a material impact on the financial statements. As permitted, Management has elected to early adopt the provisions.

10. Subsequent Events

The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure other than those already disclosed in the financial statements, except for the following:

On September 7, 2023, the Board of the Trust, on behalf of Franklin FTSE France ETF, Franklin FTSE Italy ETF and Franklin FTSE South Africa ETF, approved a proposal to liquidate the Funds. The Funds liquidated on November 3, 2023.

 

           
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Abbreviations

 

Selected Portfolio   Counterparty
ADR   American Depositary Receipt   BOFA   Bank of America Corp.
CAC   Cotation Assistée en Continu   HSBK   HSBC Bank PLC
CDI   Clearing House Electronic Subregister   UBSW   UBS AG
  System Depositary Interest    
GDR   Global Depositary Receipt    
NVDR   Non-Voting Depositary Receipt    
REIT   Real Estate Investment Trust    
SF   Single Family    
SPA   Standby Purchase Agreement    
SRF   State Revolving Fund    

 

           
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FRANKLIN TEMPLETON ETF TRUST

 

Shareholder Information

 

Board Approval of Investment

Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin FTSE Asia ex Japan ETF

Franklin FTSE Australia ETF

Franklin FTSE Brazil ETF

Franklin FTSE Canada ETF

Franklin FTSE China ETF

Franklin FTSE Europe ETF

Franklin FTSE Eurozone ETF

(formerly, Franklin FTSE Europe Hedged ETF)

Franklin FTSE France ETF

Franklin FTSE Germany ETF

Franklin FTSE Hong Kong ETF

Franklin FTSE India ETF

Franklin FTSE Italy ETF

Franklin FTSE Japan ETF

Franklin FTSE Japan Hedged ETF

Franklin FTSE Latin America ETF

Franklin FTSE Mexico ETF

Franklin FTSE Saudi Arabia ETF

Franklin FTSE South Africa ETF

Franklin FTSE South Korea ETF

Franklin FTSE Switzerland ETF

Franklin FTSE Taiwan ETF

Franklin FTSE United Kingdom ETF

(each a Fund)

May 11, 2023 15(c) Meeting

At a meeting held on May 11, 2023 (May Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved the continuance of the investment management agreement between Franklin Advisory Services, LLC (Manager) and the Trust, on behalf of each Fund (each a Management Agreement) for an additional one-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the continuation of each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate.

In considering the continuation of each Management Agreement, the Board reviewed and considered information

provided by the Manager at the May Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed and considered information provided in response to a detailed set of requests for information submitted to the Manager by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process. In addition, prior to the May Meeting, the Independent Trustees held a virtual contract renewal meeting at which the Independent Trustees conferred amongst themselves and Independent Trustee counsel about contract renewal matters and, subsequently, requested additional information from management that the Independent Trustees reviewed and considered prior to and at the May Meeting. The Board reviewed and considered all of the factors it deemed relevant in approving the continuance of each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by the Manager; (ii) each Fund’s tracking error against a specified benchmark index as of a recent period; (iii) the costs of the services provided and profits realized by the Manager and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors (Factors).

In approving the continuance of each Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of each Management Agreement are fair and reasonable and that the continuance of the Management Agreement is in the best interests of the applicable Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.

Nature, Extent and Quality of Services

The Board reviewed and considered information regarding the nature, extent and quality of investment management services provided by the Manager and its affiliates to the Funds and their shareholders. This information included, among other things, the qualifications, background and experience of the senior management and investment personnel of the Manager; the structure of investment personnel compensation; oversight of third-party service providers; investment performance reports and related financial information for each Fund; reports on expenses; legal and compliance matters; risk controls; pricing and other services provided by the Manager and its affiliates; and management fees charged by the Manager and its affiliates to US funds and other accounts, including management’s

 

           
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SHAREHOLDER INFORMATION

 

explanation of differences among accounts where relevant. The Board acknowledged management’s continued development of strategies to address areas of heightened concern in the registered fund industry, including various regulatory initiatives and continuing geopolitical concerns.

The Board also reviewed and considered the benefits provided to Fund shareholders of investing in a fund that is part of the Franklin Templeton (FT) family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Manager’s parent, and its commitment to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings in response to the market environment and project initiatives and capital investments relating to the services provided to the Funds by the FT organization. The Board specifically noted FT’s commitment to technological innovation and advancement and investments to promote alternative investing.

Following consideration of such information, the Board was satisfied with the nature, extent and quality of services provided by the Manager and its affiliates to the Funds and their shareholders.

Fund Performance

The Board noted that, in light of the Funds’ use of a “passive” or indexing investment approach, management evaluates each Fund based on its tracking error against a specified benchmark. The Board also noted that management did not provide peer fund performance analyses typically prepared by Broadridge Financial Solutions, Inc. (Broadridge), an independent provider of investment company data, as the Funds are pure-index exchange-traded funds as opposed to active or smart beta funds. The Board referenced earlier discussions with management on matters related to, among other things, the importance of performance to asset growth and growth of market share, and the performance of the Funds in periods of volatility. In addition, the Board acknowledged information provided regarding management’s strategy behind the overall product line-up, the sources of asset growth, the nature of management’s research, potential use of innovative data and technology, and investments in marketing and distribution. The Board noted management’s high level of client engagement and the strength of its compliance program.

The Board then noted that for the one-year period ended February 28, 2023, each Fund’s tracking error was within the tolerance anticipated for such Fund, except that the tracking error for the Franklin FTSE Brazil ETF was 6.6 basis points

outside the tolerance anticipated for this Fund and the Franklin FTSE Germany ETF was 7.3 basis points outside the tolerance for this Fund. The Board discussed the tracking error of the Funds with management and management explained that, for the Franklin FTSE Brazil ETF, the Fund’s tracking error was outside the tolerance anticipated due, in part, to fees and cash drag from Bovespa futures exposure. Management further explained that, for the Franklin FTSE Germany ETF, the Fund’s tracking error was outside the tolerance anticipated due, in part, to fees and a tax advantage due to a lower withholding tax rate than its index. The Board considered management’s proposal to reposition the Franklin FTSE Eurozone ETF, effective August 1, 2023, by changing its name, ticker, underlying index, investment universe, investment goal, and investment strategies so that the Fund is able to provide passive Eurozone equity exposure to investors.

Comparative Fees and Expenses

The Board reviewed and considered information regarding each Fund’s actual total expense ratio, noting that each Fund pays a Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management fee rate, without the effect of fee waivers, if any (Management Rate), of each Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon information taken from each fund’s most recent annual or semi-annual report, which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group. The Expense Group for each Fund was as follows:

 

    The Expense Group for the Franklin FTSE Asia Ex Japan ETF was comprised of pure index exchange-traded funds, which included the Fund and two other Pacific ex-Japan funds.

 

           
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    The Expense Group for the Franklin FTSE Australia ETF was comprised of pure index exchange-traded funds, which included the Fund and one other Pacific region fund.

 

    The Expense Group for the Franklin FTSE Brazil ETF was comprised of pure index exchange-traded funds, which included the Fund and two other Latin American funds.

 

    The Expense Group for the Franklin FTSE Canada ETF was comprised of pure index exchange-traded funds, which included the Fund and two other international large-cap core funds.

 

    The Expense Group for the Franklin FTSE China ETF was comprised of pure index exchange-traded funds, which included the Fund and six other China region funds.

 

    The Expense Group for the Franklin FTSE Europe ETF was comprised of pure index exchange-traded funds, which included the Fund and four other European region funds.

 

    The Expense Group for the Franklin FTSE Eurozone ETF was comprised of pure index exchange-traded funds, which included the Fund and two other European region funds.

 

    The Expense Group for the Franklin FTSE France ETF was comprised of pure index exchange-traded funds, which included the Fund and two other European region funds.

 

    The Expense Group for the Franklin FTSE Germany ETF was comprised of pure index exchange-traded funds, which included the Fund and two other European region funds.

 

    The Expense Group for the Franklin FTSE Hong Kong ETF was comprised of pure index exchange-traded funds, which included the Fund and one other China region fund.

 

    The Expense Group for the Franklin FTSE India ETF was comprised of pure index exchange-traded funds, which included the Fund and three other India region funds.

 

    The Expense Group for the Franklin FTSE Italy ETF was comprised of pure index exchange-traded funds, which included the Fund and one other European region fund.

 

    The Expense Group for the Franklin FTSE Japan ETF was comprised of pure index exchange-traded funds, which included the Fund and two other Japanese funds.

 

    The Expense Group for the Franklin FTSE Japan Hedged ETF was comprised of pure index exchange- traded funds, which included the Fund and two other Japanese funds.
    The Expense Group for the Franklin FTSE Latin America ETF was comprised of pure index exchange- traded funds, which included the Fund and one other Latin American fund.

 

    The Expense Group for the Franklin FTSE Mexico ETF was comprised of pure index exchange-traded funds, which included the Fund and one other Latin American fund.

 

    The Expense Group for the Franklin FTSE Saudi Arabia ETF was comprised of pure index exchange-traded funds, which included the Fund and one other emerging markets fund.

 

    The Expense Group for the Franklin FTSE South Africa ETF was comprised of pure index exchange-traded funds, which included the Fund and one other emerging markets fund.

 

    The Expense Group for the Franklin FTSE South Korea ETF was comprised of pure index exchange-traded funds, which included the Fund and one other Pacific ex-Japan fund.

 

    The Expense Group for the Franklin FTSE Switzerland ETF was comprised of pure index exchange- traded funds, which included the Fund and one other European region fund.

 

    The Expense Group for the Franklin FTSE Taiwan ETF was comprised of pure index exchange-traded funds, which included the Fund and one other China region fund.

 

    The Expense Group for the Franklin FTSE United Kingdom ETF was comprised of pure index exchange- traded funds, which included the Fund and one other European region fund.

The Board noted that the Management Rates and actual total expense ratios for the Funds were below the medians of their respective Expense Groups, except that the actual total expense ratio for each of the Franklin FTSE Eurozone ETF and Franklin FTSE Japan Hedged ETF was equal to the median of its respective Expense Groups. The Board also noted the small size of each Fund’s Expense Group, except for the Franklin FTSE China ETF which had seven peers in its Expense Group. The Board further noted each Fund’s unified management fee (Unified Fee). The Board also noted that pursuant to the Unified Fee arrangement the Manager reimburses the Fund for all of its acquired fund fees and expenses (if any) and pays all of the ordinary operating expenses of the Fund, except for (i) the Fund’s Unified Fee, (ii) future Rule 12b-1 payments (if any), (iii) brokerage expenses, (iv) taxes, (v) interest (including borrowing costs and dividend expenses on securities sold

 

           
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short and overdraft charges), (vi) litigation expenses (including litigation to which the Trust or the Fund may be a party and indemnification of the Trustees and officers with respect thereto), and (vii) other non-routine or extraordinary expenses. The Board concluded that the Management Rate charged to each Fund is reasonable.

Profitability

The Board reviewed and considered information regarding the profits realized by the Manager and its affiliates in connection with the operation of each Fund. In this respect, the Board considered the Fund profitability analysis that addresses the overall profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each of the individual funds during the 12-month period ended September 30, 2022, being the most recent fiscal year-end for FRI. The Board noted that although management continually makes refinements to its methodologies used in calculating profitability in response to organizational and product-related changes, the overall methodology has remained consistent with that used in the Funds’ profitability report presentations from prior years. The Board also noted that PricewaterhouseCoopers LLP, auditor to FRI and certain FT funds, has been engaged to periodically review and assess the allocation methodologies to be used solely by the Funds’ Board with respect to the profitability analysis.

The Board noted management’s belief that costs incurred in establishing the infrastructure necessary for the type of fund operations conducted by the Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in determining its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of certain operations, which effort has required considerable up-front expenditures but, over the long run, is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services provided to the Funds, as well as the need to implement systems and meet additional regulatory and compliance requirements resulting from recent US Securities and Exchange Commission and other regulatory requirements.

The Board also considered the extent to which the Manager and its affiliates might derive ancillary benefits from fund operations, including potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well as increased leverage with service providers

and counterparties. Based upon its consideration of all these factors, the Board concluded that the level of profits realized by the Manager and its affiliates from providing services to each Fund was not excessive in view of the nature, extent and quality of services provided to each Fund.

Economies of Scale

The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as each Fund grows larger and whether each Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. The Board considered that each Fund would likely experience benefits from the Unified Fee at the Fund’s projected asset levels because of the Manager’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board noted that, under the Unified Fee, it is not anticipated that any of the Funds will generate significant, if any, profit for the Manager and/or its affiliates for some time. The Board considered management’s view that any analyses of potential economies of scale in managing a particular fund are inherently limited in light of the joint and common costs and investments the Manager incurs across the FT family of funds as a whole. The Board also noted that, as of December 31, 2022, each Fund (except for the Franklin FTSE Brazil ETF, Franklin FTSE Japan ETF and Franklin FTSE United Kingdom ETF) had net assets below $250 million (and in most cases much less). The Board also noted management’s representation that, while the Franklin FTSE Brazil ETF, Franklin FTSE Japan ETF and Franklin FTSE United Kingdom ETF had net assets of approximately $315 million, $871 million and $496 million, respectively, as of December 31, 2022, none of the Funds experienced a profit for the fiscal year ended September 30, 2022. The Board recognized that there would not likely be any economies of scale for a Fund until the Fund’s assets grow.

Conclusion

Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the continuation of each Management Agreement for an additional one-year period.

September 7, 2023 Board Meeting

At a meeting held on September 7, 2023 (September Meeting), the Board reviewed and approved, on behalf of each Fund, a new investment sub-advisory agreement between the Manager and Franklin Templeton Institutional, LLC (Sub-Adviser) for an initial two-year period (each a New Sub-Advisory Agreement).

 

           
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The Board reviewed and considered all information provided by the Manager and Sub-Adviser at the September Meeting with respect to each New Sub-Advisory Agreement and noted its review and consideration of the information it received in connection with the May Meeting. In particular, the Board reviewed and considered the factors it deemed relevant in approving each New Sub-Advisory Agreement, including, but not limited to: (i) the nature, extent, and quality of the services to be provided by the Sub-Adviser; and (ii) the costs of the services to be provided by the Sub-Adviser. The Board also considered that management proposed that the Board approve each New Sub-Advisory Agreement in order to facilitate portfolio management team continuity in light of the planned relocation of a co-portfolio manager of each Fund. The Board reviewed and further considered the form of New Sub-Advisory Agreement and the terms of each New Sub-Advisory Agreement, which were discussed at the September Meeting. The Board also considered the information regarding the investment sub-advisory fee to be charged by the Sub-Adviser. The Board determined that the conclusions it made at the May Meeting regarding each Fund’s Factors had not changed. The Board noted counsel’s legal analysis and conclusion that Fund shareholders would not be required to approve the New Sub-Advisory Agreement.

The Board, including a majority of the Independent Trustees, determined that the hiring of the Sub-Adviser is in the best interests of each Fund and its shareholders. The Board also determined that the terms of each New Sub-Advisory Agreement are fair and reasonable. The Board noted that the Sub-Adviser is paid by the Manager out of the management fee it receives from each Fund and that the allocation of the fee between the Manager and Sub-Adviser reflects the services provided by each to the Fund. The Board concluded that the sub-advisory fee paid to the Sub-Adviser is reasonable.

Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described Factors and conclusions, the Board unanimously approved each New Sub-Advisory Agreement for an initial two-year period.

Liquidity Risk Management Program – In-Kind ETFs

Franklin FTSE Australia ETF

Franklin FTSE Canada ETF

Franklin FTSE Europe ETF

Franklin FTSE Eurozone ETF

Franklin FTSE France ETF

Franklin FTSE Germany ETF

Franklin FTSE Hong Kong ETF

Franklin FTSE Italy ETF

Franklin FTSE Japan ETF

Franklin FTSE Japan Hedged ETF

Franklin FTSE Mexico ETF

Franklin FTSE South Africa ETF

Franklin FTSE Switzerland ETF

Franklin FTSE United Kingdom ETF

Each of the Funds has adopted and implemented a written Liquidity Risk Management Program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”). The LRMP is designed to assess and manage each Fund’s liquidity risk, which is defined as the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. Each of the Funds is an exchange-traded fund (“ETF”) that is considered an “In-Kind ETF” under the Liquidity Rule, which means that the Fund satisfies requests for redemption through in-kind transfers of portfolio securities, positions, and other assets, except for a de minimis amount of cash, and publishes its portfolio holdings daily. In accordance with the Liquidity Rule, the LRMP includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of each Fund’s liquidity risk; (2) prohibiting the Fund’s acquisition of Illiquid investments that would result in the Fund holding more than 15% of its net assets in Illiquid assets. The LRMP also requires reporting to the SEC (on a non-public basis) and to the Board if the Fund’s holdings of Illiquid assets exceed 15% of the Fund’s net assets. As an In-Kind ETF, the Fund is not required to include in the LRMP policies and procedures relating to classification of portfolio holdings into four liquidity categories or establishing a highly liquid investment minimum (“HLIM”).

The Funds’ Board of Trustees approved the appointment of the Director of Liquidity Risk within the Investment Risk Management Group (the “IRMG”) as the Administrator of the LRMP. The IRMG maintains the Investment Liquidity Committee (the “ILC”) to provide oversight and administration of policies and procedures governing liquidity risk management for FT products and portfolios. The ILC includes representatives from Franklin Templeton’s Risk, Trading, Global Compliance, Legal, Investment Compliance, Investment Operations, Valuation Committee, Product Management and Global Product Strategy.

 

           
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In assessing and managing each Fund’s liquidity risk, the ILC considers, as relevant, a variety of factors, including the Fund’s investment strategy and the liquidity of its portfolio investments during both normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings and access to other funding sources including the Funds’ interfund lending facility and line of credit. Because the Funds are ETFs, the ILC also considers, as relevant, (1) the relationship between the Fund’s portfolio liquidity and the way in which, and the prices and spread at which, Fund shares trade, including the efficiency of the arbitrage function and the level of active participation by market participants, including authorized participants and (2) the effect of the composition of baskets on the overall liquidity of the Fund’s portfolio.

At meetings of the Funds’ Board of Trustees held in May 2023, the Program Administrator provided a written report to the Board addressing the adequacy and effectiveness of the program for the year ended December 31, 2022. The Program Administrator report concluded that (i.) the LRMP, as adopted and implemented, remains reasonably designed to assess and manage each Fund’s liquidity risk; (ii.) the LRMP, including the Highly Liquid Investment Minimum (“HLIM”) where applicable, was implemented and operated effectively and achieved the goal of assessing and managing each Fund’s liquidity risk; and (iii.) each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund.

Liquidity Risk Management Program – Non-In-Kind ETFs

Franklin FTSE Asia ex Japan ETF

Franklin FTSE Brazil ETF

Franklin FTSE China ETF

Franklin FTSE India ETF

Franklin FTSE Latin America ETF

Franklin FTSE Saudi Arabia ETF

Franklin FTSE South Korea ETF

Franklin FTSE Taiwan ETF

Each of the Franklin Templeton and Legg Mason Funds has adopted and implemented a written Liquidity Risk Management Program (the “LRMP”) as required by Rule 22e-4 under the Investment Company Act of 1940 (the “Liquidity Rule”). The LRMP is designed to assess and manage each Fund’s liquidity risk, which is defined as the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. In accordance with the

Liquidity Rule, the LRMP includes policies and procedures that provide for: (1) assessment, management, and review (no less frequently than annually) of each Fund’s liquidity risk; (2) classification of each Fund’s portfolio holdings into one of four liquidity categories (Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid); (3) for Funds that do not primarily hold assets that are Highly Liquid, establishing and maintaining a minimum percentage of the Fund’s net assets in Highly Liquid investments (called a “Highly Liquid Investment Minimum” or “HLIM”); and (4) prohibiting the Fund’s acquisition of Illiquid investments that would result in the Fund holding more than 15% of its net assets in Illiquid assets. The LRMP also requires reporting to the Securities and Exchange Commission (“SEC”) (on a non-public basis) and to the Board if the Fund’s holdings of Illiquid assets exceed 15% of the Fund’s net assets. Funds with HLIMs must have procedures for addressing HLIM shortfalls, including reporting to the Board and, with respect to HLIM shortfalls lasting more than seven consecutive calendar days, reporting to the SEC (on a non-public basis).

The Director of Liquidity Risk within the Investment Risk Management Group (the “IRMG”) is the appointed Administrator of the LRMP. The IRMG maintains the Investment Liquidity Committee (the “ILC”) to provide oversight and administration of policies and procedures governing liquidity risk management for Franklin Templeton and Legg Mason products and portfolios. The ILC includes representatives from Franklin Templeton’s Risk, Trading, Global Compliance, Legal, Investment Compliance, Investment Operations, Valuation Committee, Product Management and Global Product Strategy.

In assessing and managing each Fund’s liquidity risk, the ILC considers, as relevant, a variety of factors, including the Fund’s investment strategy and the liquidity of its portfolio investments during both normal and reasonably foreseeable stressed conditions; its short and long-term cash flow projections; and its cash holdings and access to other funding sources including the Funds’ interfund lending facility and line of credit. Classification of the Fund’s portfolio holdings in the four liquidity categories is based on the number of days it is reasonably expected to take to convert the investment to cash (for Highly Liquid and Moderately Liquid holdings) or sell or dispose of the investment (for Less Liquid and Illiquid investments), in current market conditions without significantly changing the investment’s market value.

Each Fund primarily holds liquid assets that are defined under the Liquidity Rule as “Highly Liquid Investments,” and

 

           
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therefore is not required to establish an HLIM. Highly Liquid Investments are defined as cash and any investment reasonably expected to be convertible to cash in current market conditions in three business days or less without the conversion to cash significantly changing the market value of the investment.

At meetings of the Funds’ Board of Trustees held in May 2023, the Program Administrator provided a written report to the Board addressing the adequacy and effectiveness of the program for the year ended December 31, 2022. The Program Administrator report concluded that (i.) the LRMP, as adopted and implemented, remains reasonably designed to assess and manage each Fund’s liquidity risk; (ii.) the LRMP, including the Highly Liquid Investment Minimum (“HLIM”) where applicable, was implemented and operated effectively to achieve the goal of assessing and managing each Fund’s liquidity risk; and (iii.) each Fund was able to meet requests for redemption without significant dilution of remaining investors’ interests in the Fund.

Proxy Voting Policies and Procedures

The Trust’s investment manager has established Proxy Voting Policies and Procedures (Policies) that the Trust uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Trust’s complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Trust’s proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Schedule of Investments

The Trust files a complete schedule of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the Commission’s website at sec.gov. The filed form may also be viewed and copied at the Commission’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling (800) SEC-0330.

Premium/Discount Information

Information about the differences between the daily market price on the secondary market for the shares of each Fund and each Fund’s net asset value may be found on each Fund’s website at franklintempleton.com.

 

           
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Authorized for distribution only when accompanied or preceded by a summary prospectus and/or prospectus. Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. A prospectus contains this and other information; please read it carefully before investing.

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