UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-23096

Legg Mason ETF Investment Trust

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 49^th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-877-721-1926

Date of fiscal year end: October 31

Date of reporting period: October 31, 2018

ITEM 1. REPORT TO STOCKHOLDERS.

The Annual Report to Stockholders is filed herewith.

Annual Report October 31, 2018

LEGG MASON

EMERGING MARKETS LOW VOLATILITY HIGH DIVIDEND ETF

LVHE

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

What’s inside
Letter from the president	II
Investment commentary	III
Fund overview	1
Fund at a glance	7
Fund expenses	8
Fund performance	9
Schedule of investments	11
Statement of assets and liabilities	20
Statement of operations	21
Statements of changes in net assets	22
Financial highlights	23
Notes to financial statements	24
Report of independent registered public accounting firm	36
Additional information	37
Important tax information	43

Fund objective

The Fund seeks to track the investment results of an index composed of publicly traded equity securities of emerging markets outside of the United States with relatively high yield and low price and earnings volatility while mitigating exposure to fluctuations between the values of the U.S. dollar and currencies in which the Fund’s securities are denominated.

Letter from the president

Dear Shareholder,

We are pleased to provide the annual report of Legg Mason Emerging Markets Low Volatility High Dividend ETF for the twelve-month reporting period ended October 31, 2018. Please read on for a detailed look at prevailing economic and market conditions during the Fund’s reporting period and to learn how those conditions have affected Fund performance.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.leggmason.com. Here you can gain immediate access to market and investment information, including:

• Fund net asset value and market price,

• Market insights and commentaries from our portfolio managers, and

• A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

Jane Trust, CFA

President and Chief Executive Officer

November 30, 2018

II Legg Mason Emerging Markets Low Volatility High Dividend ETF

Investment commentary

Economic review

Economic activity in the U.S. was mixed during the twelve months ended October 31, 2018 (the “reporting period”). Looking back, the U.S. Department of Commerce reported that fourth quarter 2017 and first quarter 2018 U.S. gross domestic product (“GDP”)ⁱ growth was 2.3% and 2.2%, respectively. GDP growth then accelerated to 4.2% during the second quarter of 2018 — the strongest reading since the third quarter of 2014. Finally, the U.S. Department of Commerce’s second reading for third quarter 2018 GDP growth — released after the reporting period ended — was 3.5%. The deceleration in GDP growth in the third quarter of 2018 reflected a downturn in exports and decelerations in nonresidential fixed investment and personal consumption expenditures. Imports increased in the third quarter after decreasing in the second. These movements were partly offset by an upturn in private inventory investment.

Job growth in the U.S. was solid overall and supported the economy during the reporting period. As reported by the U.S. Department of Labor, when the reporting period ended on October 31, 2018, the unemployment rate was 3.7%, versus 4.1% when the period began. October 2018’s reading equaled the lowest unemployment rate since 1969. The percentage of longer-term unemployed also declined during the reporting period. In October 2018, 22.5% of Americans looking for a job had been out of work for more than six months, versus 23.8% when the period began.

Turning to the global economy, in its October 2018 World Economic Outlook, the International Monetary Fund (“IMF”)ⁱⁱ said, “Global growth for 2018–19 is projected to remain steady at its 2017 level, but its pace is less vigorous than projected in April [2018] and it has become less balanced. Downside risks to global growth have risen in the past six months and the potential for upside surprises has receded.” From a regional perspective, the IMF projects 2018 growth in the Eurozone will be 2.0%, versus 2.4% in 2017. Japan’s economy is expected to expand 1.1% in 2018, compared to 1.7% in 2017. Elsewhere, the IMF projects that overall growth in emerging market countries will be 4.7% in 2018, the same as in 2017.

Looking back, at its meeting that concluded on September 20, 2017, the Federal Reserve Board (the “Fed”)ⁱⁱⁱ kept the federal funds rate^iv on hold, but reiterated its intention to begin reducing its balance sheet, saying, “In October, the Committee will initiate the balance sheet normalization program….” At its meeting that ended on December 13, 2017, the Fed raised rates to a range between 1.25% and 1.50%. As expected, the Fed kept rates on hold at its meeting that concluded on January 31, 2018. However, at its meeting that ended on March 21, 2018, the Fed again raised the federal funds rate, moving it to a range between 1.50% and 1.75%. At its meeting that concluded on June 13, 2018, the Fed raised the federal funds rate to a range between 1.75% and 2.00%. Finally, at its meeting that ended on September 26, 2018, the Fed raised the federal funds rate to a range between 2.00% and 2.25%.

Central banks outside the U.S. took different approaches to monetary policy during the reporting period. Looking back, in December 2016, the European Central Bank (“ECB”)^v extended its bond buying program until December 2017. From April 2017 through

Legg Mason Emerging Markets Low Volatility High Dividend ETF III

Investment commentary (cont’d)

December 2017, the ECB purchased €60 billion-per-month of bonds. In October 2017, the ECB announced that it would continue to buy bonds through September 2018, but after December 2017 it would pare its purchases to €30 billion-per-month. In June 2018, the ECB announced it would end its bond buying program by the end of the year, but it did not anticipate raising interest rates “at least through the summer of 2019”. In other developed countries, on November 2, 2017, the Bank of England^vi raised rates from 0.25% to 0.50% — the first increase since July 2007. It then raised rates to 0.75% at its meeting on August 2, 2018. After holding rates steady at 0.10% for more than five years, in January 2016, the Bank of Japan^vii announced that it cut the rate on current accounts that commercial banks hold with it to -0.10% and kept rates on hold during the reporting period. Elsewhere, the People’s Bank of China^viii kept rates steady at 4.35% during the reporting period.

As always, thank you for your confidence in our stewardship of your assets.

Sincerely,

Jane Trust, CFA

President and Chief Executive Officer

November 30, 2018

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. Forecasts and predictions are inherently limited and should not be relied upon as an indication of actual or future performance.

ⁱ  Gross domestic product (“GDP”) is the market value of all final goods and services produced within a country in a given period of time.

ⁱⁱ  The International Monetary Fund (“IMF”) is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

ⁱⁱⁱ  The Federal Reserve Board (the “Fed”) is responsible for the formulation of U.S. policies designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments.

^iv  The federal funds rate is the rate charged by one depository institution on an overnight sale of immediately available funds (balances at the Federal Reserve) to another depository institution; the rate may vary from depository institution to depository institution and from day to day.

^v  The European Central Bank (“ECB”) is responsible for the monetary system of the European Union and the euro currency.

^vi  The Bank of England (“BoE”), formally the Governor and Company of the BoE, is the central bank of the United Kingdom. The BoE’s purpose is to maintain monetary and financial stability.

^vii  The Bank of Japan is the central bank of Japan. The bank is responsible for issuing and handling currency and treasury securities, implementing monetary policy, maintaining the stability of the Japanese financial system and the yen currency.

^viii  The People’s Bank of China is the central bank of the People’s Republic of China with the power to carry out monetary policy and regulate financial institutions in mainland China.

IV Legg Mason Emerging Markets Low Volatility High Dividend ETF

Fund overview

Q. What is the Fund’s investment strategy?

A. Legg Mason Emerging Markets Low Volatility High Dividend ETF (the “Fund”) seeks to track the investment results of the QS Emerging Markets Low Volatility High Dividend Hedged Index (the “Underlying Index”). The Underlying Index seeks to provide stable income through investments in stocks of profitable companies in emerging markets outside of the United States with relatively high dividend yields or anticipated dividend yields and lower price and earnings volatility, while mitigating exposure to exchange-rate fluctuations between the U.S. dollar and currencies in which the component securities are denominated. The Underlying Index is designed to have higher returns than an equivalent unhedged investment when the currencies in which its component securities are denominated are weakening relative to the U.S. dollar. Conversely, the Underlying Index is designed to have lower returns than an equivalent unhedged investment when the currencies in which its component securities are denominated are rising relative to the U.S. dollar. The Underlying Index is based on a proprietary methodology created and sponsored by QS Investors, LLC (“QS Investors”), the Fund’s subadviser.

The Fund will invest at least 80% of its net assets, plus borrowings for investment purposes, if any, in securities that compose its Underlying Index. Securities that compose the Underlying Index include depositary receipts representing securities in the Underlying Index. While emerging markets equities are volatile, the Underlying Index seeks to have less volatility than emerging markets generally.

The Underlying Index is composed of equity securities in emerging markets outside of the United States across a range of market capitalizations that are included in the MSCI Emerging Markets IMI Indexⁱ.

The Underlying Index’s components are reconstituted annually and rebalanced quarterly. The Underlying Index is reconstituted on a different date from the MSCI Emerging Markets IMI Index. The Fund’s securities portfolio is rebalanced when the Underlying Index is rebalanced or reconstituted. The composition of the Underlying Index and the Fund after reconstitution and rebalancing may fluctuate and exceed the Underlying Index limitations due to market movements. The components of the Underlying Index, and the degree to which these components represent certain sectors and industries, may change over time.

The Fund may invest up to 20% of its net assets in foreign currency forward contracts and other currency hedging instruments, certain index futures, options, options on index futures, swap contracts or other derivatives related to its Underlying Index and its component securities; cash and cash equivalents; other investment companies, including exchange-traded funds; exchange-traded notes; and in securities and other instruments not included in its Underlying Index, but which QS Investors believes will help the Fund track its Underlying Index.

The Fund invests in currency hedging instruments to offset the Fund’s exposure to currencies in which the Fund’s holdings are denominated. The Fund may also invest in equity index futures and currency derivatives to gain exposure to local markets or segments of local markets for cash flow management purposes and as a portfolio management technique.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 1

Fund overview (cont’d)

Q. What were the overall market conditions during the Fund’s reporting period?

A. Emerging markets, as measured by the MSCI Emerging Markets Indexⁱⁱ, outperformed its developed markets counterparts, as measured by the MSCI World Indexⁱⁱⁱ, at the start of the twelve-month reporting period ended October 31, 2018. In fact, emerging markets outperformed global markets overall for all four quarters of 2017, benefiting from a weak U.S. dollar, increasing global trade and synchronized global economic expansion. Like the developed world, corporate earnings in these markets continued to grow through the end of calendar year 2017. South Africa was the chief outperformer in the MSCI Emerging Markets Index in the final quarter of 2017, largely due to an appreciation of its currency, and its stock market hit a new high in November 2017. China also ended 2017 on a high note, with stronger growth despite the government’s tightening monetary policy and attempts to slow down the real estate market.

Emerging markets outperformance continued into 2018 until a correctional sell-off from late January 2018 through February 2018 with a fall of over 10%. The sell-off was believed to be sparked by investor fears that the Federal Reserve Board (the “Fed”)^iv would accelerate their rate tightening schedule amid positive economic data. The MSCI Emerging Markets Index rebounded strongly from the correction through mid-March 2018, rallying over 7% driven by a concentrated, growth/momentum technology rally which had characterized 2017. Beginning in mid-March 2018, emerging markets broadly began to realize headwinds including a significant strengthening of the U.S. dollar against several major emerging market currencies, a heightening of treasury yields and the implementation of several major tariffs. China, Brazil and Taiwan continued to generate positive returns during this volatile time period, while markets most sensitive to tightening global liquidity and rising oil prices had the largest sell-off.

Emerging markets had a negative return for the third calendar quarter of 2018. Turkish equities were down over 20%, driven by a significant drop in the Turkish lira. Turkey has been facing multiple political and economic headwinds, including its large current account deficit, growing tensions with the U.S., inflation, and investor exits. Fears of contagion abated during September 2018, however, as several other vulnerable emerging markets took various steps to shore up their financial weaknesses. Russia and Indonesia were among those to raise interest rates; South Africa decided to keep rates steady on tempering inflation. Most markets saw commodity inflation hit businesses, and the strong U.S. dollar exacerbated the situation. Among the larger markets, China equities declined for the quarter. Business and consumer sentiment weakened as the trade disputes with the U.S. threatened a variety of industries. India, the world’s fastest growing large economy also declined. Taiwan had a solid gain, though growth weakened; most sectors had gains, led by Energy. After six months in contraction, South Korean manufacturing moved to growth, on an increase in local orders, even as export orders declined; the equity market had a small positive return for the quarter but remained in negative territory for the year to date. Brazil equities had positive returns.

2 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

October 2018, the final month of the reporting period, proved to be a challenging month for investors, as volatility returned in earnest. Throughout the month, practically every asset class sold off to some extent, both in the U.S. and abroad. All countries in the MSCI All Country World Index (“MSCI ACWI”)^v with the exception of Brazil and Qatar registered losses, many with double digit declines. Even the U.S., which had been a rare comfort zone for investors until September 2018, fell in October 2018, curtailing year-to-date gains. Oil prices plunged following an agreement between Russia and Saudi Arabia to address supply concerns in conjunction with lower forecasts for demand next year. An appreciating U.S. dollar, coupled with a decline in investor sentiment, caused emerging markets equities to underperform developed markets equities.

The Fund uses a passive investment approach to achieve its investment objective, and therefore made no change in investment approach in response to market conditions.

Performance review

For the twelve months ended October 31, 2018, Legg Mason Emerging Markets Low Volatility High Dividend ETF generated a -0.87% return on a net asset value (“NAV”)^vi basis and 1.33% based on its market price^vii per share.

The performance table shows the Fund’s total return for the twelve months ended October 31, 2018 based on its NAV and market price as of October 31, 2018. The Fund seeks to track the investment results of the QS Emerging Markets Low Volatility High Dividend Hedged Index (NTR), which returned 0.30% for the same period. The Fund’s broad-based market index, the MSCI Emerging Markets IMI Local Index (Net)^viii, returned -9.30% over the same time frame. The Lipper Emerging Markets Funds Category Average¹ returned -13.58% for the period. Please note that Lipper performance returns are based on each fund’s NAV.

Performance Snapshot as of October 31, 2018 (unaudited)
	6 months			12 months
Legg Mason Emerging Markets Low Volatility High Dividend ETF:
$26.15 (NAV)		-5.38	%		-0.87	%*†
$26.63 (Market Price)		-3.05	%		1.33	%*‡
QS Emerging Markets Low Volatility High Dividend Hedged Index (NTR)		-4.81	%		0.30	%
MSCI Emerging Markets IMI Local Index (Net)		-12.55	%		-9.30	%
Lipper Emerging Markets Funds Category Average1		-16.80	%		-13.58	%

The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Principal value and investment returns will fluctuate so shares, when sold, may be worth more or less than their original cost. Performance data current to the most recent month-end is available at www.leggmason.com/etf.

Investors buy and sell shares of an exchange-traded fund (“ETF”) at market price (not NAV) in the secondary market throughout the trading day. These shares are not individually available for direct purchase from or direct redemption to the ETF. Market price returns shown are typically based upon the mid-point between the bid and ask on the Fund’s principal trading

¹  Lipper, Inc., a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments. Returns are based on the period ended October 31, 2018, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 876 funds for the six-month period and 847 funds for the twelve-month period in the Fund’s Lipper category.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 3

Fund overview (cont’d)

market when the Fund’s NAV is determined, which is typically 4:00 p.m. Eastern time (US). These returns do not represent investors’ returns had they traded shares at other times. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.

Information showing the number of days the market price of the Fund’s shares was greater than the Fund’s NAV and the number of days it was less than the Fund’s NAV (i.e., premium or discount) for various time periods is available by visiting the Fund’s website at www.leggmason.com/etf.

As of the Fund’s current prospectus dated March 1, 2018, the gross total annual fund operating expense ratio for the Fund was 0.51%.

* Total returns are based on changes in NAV or market price, respectively. Returns reflect the deduction of all Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors pay on distributions or the sale of shares.

† Total return assumes the reinvestment of all distributions, at NAV.

‡ Total return assumes the reinvestment of all distributions, at market price.

Q. What were the leading contributors to performance?

A. Looking at the Underlying Index by country, Taiwan, United Arab Emirates and Malaysia were the leading contributors to performance for the reporting period. The leading sector contributors were the Financials and Materials sectors, which had both the largest weights and the highest total returns in the Underlying Index.

The Fund employed a currency hedging strategy to reduce the volatility associated with exposure to shifts in relative value between the U.S. dollar and the currency of local markets. The currency hedge was additive to overall performance during the reporting period as the currency of local markets depreciated versus the U.S. dollar.

Q. What were the leading detractors from performance?

A. At the country level, the leading detractors from performance were Korea, Brazil and China. The leading detractors from performance at the sector level were the Consumer Discretionary, Communication Services¹ and Utilities sectors.

Looking for additional information?

The Fund’s daily NAV is available on-line at www.leggmason.com/etf. The Fund is traded under the symbol “LVHE” and its closing market price is available on most financial websites. In a continuing effort to provide information concerning the Fund, shareholders may call 1-877-721-1926 (toll free), Monday through Friday from 8:00 a.m. to 5:30 p.m. Eastern time, for the Fund’s current NAV, market price and other information.

Thank you for your investment in Legg Mason Emerging Markets Low Volatility High Dividend ETF. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Fund’s investment goals.

Sincerely,

QS Investors, LLC

November 20, 2018

¹  As of September 28, 2018, the Telecommunication Services sector was broadened to include some companies previously classified in the Consumer Discretionary and Information Technology sectors and renamed the Communication Services sector.

4 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

RISKS: Equity securities are subject to market and price fluctuations. International investments are subject to special risks including currency fluctuations, social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. The Fund may focus its investments in certain industries, increasing their vulnerability to market volatility. There is no guarantee that a Fund will achieve a high degree of correlation to the index it seeks to track. The Fund does not seek to outperform the index it tracks, and does not seek temporary defensive positions when markets decline or appear overvalued. Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. In rising markets, the value of large-cap stocks may not rise as much as that of smaller-cap stocks. Small- and-mid-cap stocks involve greater risks and volatility than large cap stocks. Currency investing contains heightened risk that includes market, political, regulatory and national conditions, and may not be suitable for all investors. Please see the Fund’s prospectus for a more complete discussion of these and other risks and the Fund’s investment strategies.

The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. The Fund’s top five sector holdings (as a percentage of net assets) as of October 31, 2018 were: Financials (23.6%), Materials (17.0%), Communication Services (16.8%), Information Technology (7.8%) and Consumer Staples (7.8%). The Fund’s composition may differ over time.

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. An index is a statistical composite that tracks a specified financial market, sector or rules-based investment process. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 5

Fund overview (cont’d)

ⁱ  MSCI Emerging Markets IMI Index captures large-, mid-and small-cap representation across 23 emerging markets countries. With 2,655 constituents, the Index covers approximately 99% of the free float-adjusted market capitalization in each country.

ⁱⁱ  The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Index is calculated assuming the minimum possible dividend reinvestment.

ⁱⁱⁱ  The MSCI World Index is an unmanaged index considered representative of growth stocks of developed countries. Index performance is calculated with net dividends.

^iv  The Federal Reserve Board (the “Fed”) is responsible for the formulation of U.S. policies designed to promote economic growth, full employment, stable prices and a sustainable pattern of international trade and payments.

^v  The MSCI All Country World Index (“MSCI ACWI”) is a market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 45 country indices comprising 24 developed and 21 emerging market country indices.

^vi  Net Asset Value (NAV) is calculated by subtracting total liabilities from total assets and dividing the results by the number of shares outstanding.

^vii  Market Price is determined by supply and demand. It is the price at which an investor purchases or sells shares of the Fund. The Market Price may differ from the Fund’s NAV.

^viii  MSCI Emerging Markets IMI Local Index (Net) captures large-, mid-and small-cap representation across 23 emerging markets countries. The local version of the Index calculates performance utilizing local currencies taking out the effect of converting to the U.S. dollar.

6 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

Fund at a glance^†(unaudited)

Investment breakdown (%) as a percent of total investments

† The bar graph above represents the composition of the Fund’s investments as of October 31, 2018 and October 31, 2017 and does not include derivatives such as futures contracts and forward foreign currency contracts. The composition of the Fund’s investments is subject to change at any time.

* As of September 28, 2018, the Telecommunication Services sector was broadened to include some companies previously classified in the Consumer Discretionary and Information Technology sectors and renamed the Communication Services sector.

‡ Amount represents less than 0.1%.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 7

Fund expenses (unaudited)

Example

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, such as brokerage commissions paid on purchases and sales of Fund shares; and (2) ongoing costs, including management fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

This example is based on an investment of $1,000 invested on May 1, 2018 and held for the six months ended October 31, 2018.

Actual expenses

The table below titled “Based on Actual Total Return” provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During the Period”.

Hypothetical example for comparison purposes

The table below titled “Based on Hypothetical Total Return” provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Fund and other funds. To do so, compare the 5.00% hypothetical example relating to the Fund with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, such brokerage commissions paid on purchases and sales of Fund shares. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

Based on actual total return1														Based on hypothetical total return1
Actual Total Return2		Beginning Account Value			Ending Account Value			Annualized Expense Ratio			Expenses Paid During the Period3				Hypothetical Annualized Total Return			Beginning Account Value		Ending Account Value			Annualized Expense Ratio			Expenses Paid During the Period3
	-5.38%		$	1,000.00		$	946.20		0.50	%		$	2.45			5.00	%		$1,000.00		$	1,022.68		0.50	%		$	2.55

¹   For the six months ended October 31, 2018.

²  Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value. Total return is not annualized, as it may not be representative of the total return for the year. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower. Past performance is no guarantee of future results.

³  Expenses (net of fee waivers and/or expense reimbursements) are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (184), then divided by 365.

8 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

Fund performance (unaudited)

Net asset value
Average annual total returns1
Twelve months ended 10/31/18	-0.87	%
Inception* through 10/31/18	6.72
Cumulative total returns1
Inception date of 11/17/16 through 10/31/18	13.54	%

Market price
Average annual total returns2
Twelve months ended 10/31/18	1.33	%
Inception* through 10/31/18	7.67
Cumulative total returns2
Inception date of 11/17/16 through 10/31/18	15.54	%

All figures represent past performance and are not a guarantee of future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. The returns shown do not reflect the deduction of brokerage commissions or taxes that investors would pay on distributions or the sale of shares. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower.

Investors buy and sell shares of the Fund at market price, not NAV, in the secondary market throughout the trading day. These shares are not individually available for direct purchase from or direct redemption to the Fund. The Fund’s per share NAV is the value of one share of the Fund and is calculated by dividing the value of total assets less total liabilities by the number of shares outstanding. The NAV return is based on the NAV of the Fund and the market price return is based on the market price per share of the Fund. Market price returns shown are typically based upon the mid-point between the bid and ask on the Fund’s principal trading market when the Fund’s NAV is determined, which is typically 4:00 p.m. Eastern time (US). These returns do not represent investors’ returns had they traded shares at other times. NAV and market price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. As with other exchange-traded funds, NAV returns and market price returns may differ because of factors such as the supply and demand for Fund shares and investors’ assessment of the underlying value of the Fund’s portfolio securities.

¹  Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value.

²  Assumes the reinvestment of all distributions, including returns of capital, if any, at market price.

* Inception date of the Fund is November 17, 2016.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 9

Fund performance (unaudited) (cont’d)

Historical performance

Value of $10,000 invested in

Legg Mason Emerging Markets Low Volatility High Dividend ETF vs QS Emerging Markets Low Volatility High Dividend Hedged Index and MSCI Emerging Markets IMI Local Index (Net)† — November 17, 2016 - October 31, 2018

All figures represent past performance and are not a guarantee of future results. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost. NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV. The returns shown do not reflect the deduction of brokerage commissions or taxes that investors would pay on distributions or the sale of shares. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower.

† Hypothetical illustration of $10,000 invested in Legg Mason Emerging Markets Low Volatility High Dividend ETF on November 17, 2016, assuming the reinvestment of all distributions, including returns of capital, if any, at net asset value through October 31, 2018. The hypothetical illustration also assumes a $10,000 investment in the QS Emerging Markets Low Volatility High Dividend Hedged Index and the MSCI Emerging Markets IMI Local Index (Net). The Fund’s per share NAV is the value of one share of the Fund and is calculated by dividing the value of total assets less total liabilities by the number of shares outstanding. The NAV return is based on the NAV of the Fund. The QS Emerging Markets Low Volatility High Dividend Hedged Index (the “Underlying Index”) is based on a proprietary methodology created and sponsored by QS Investors, LLC, the Fund’s subadviser. The MSCI Emerging Markets IMI Local Index (Net) (the “Index”) captures large-, mid-and small-cap representation across 23 Emerging Markets countries. With 2,655 constituents, the index covers approximately 99% of the free float-adjusted market capitalization in each country. The local version of the Index calculates performance utilizing local currencies taking out the effect of converting to the U.S. dollar. The indices are not subject to the same management and trading expenses as a fund. An index is a statistical composite that tracks a specified financial market, sector, or rules-based investment process. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

10 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

Schedule of investments

October 31, 2018

Legg Mason Emerging Markets Low Volatility High Dividend ETF

Security	Shares		Value
Common Stocks — 97.1%
Communication Services — 15.2%
Diversified Telecommunication Services — 5.6%
China Telecom Corp. Ltd., Class H Shares		214,000	$	101,003
Emirates Telecommunications Group Co. PJSC		37,727		178,718
KT Corp., ADR		3,609		49,948
Magyar Telekom Telecommunications PLC		4,304		5,867
Telekom Malaysia Berhad		28,700		16,324
Total Diversified Telecommunication Services				351,860
Media — 0.3%
Astro Malaysia Holdings Berhad		14,300		4,613
Major Cineplex Group PCL		7,200		5,126	(a)
Multiplus SA		800		5,397
Total Media				15,136
Wireless Telecommunication Services — 9.3%
Advanced Info Service PCL, Registered Shares		12,400		73,315	(a)
China Mobile Ltd.		18,500		172,979
DiGi.Com Berhad		31,900		32,857
Globe Telecom Inc.		300		11,719
Maxis Berhad		22,500		28,122
Mobile TeleSystems PJSC, ADR		14,010		112,220
PLAY Communications SA		1,696		7,305
SK Telecom Co., Ltd.		356		83,724
Vodacom Group Ltd.		7,585		63,901
Total Wireless Telecommunication Services				586,142
Total Communication Services				953,138
Consumer Discretionary — 4.8%
Automobiles — 3.7%
China Motor Corp.		6,000		4,518
Hero MotoCorp Ltd.		927		34,630
Hyundai Motor Co.		1,081		101,028
Indus Motor Co., Ltd.		720		7,233
Kia Motors Corp.		3,307		82,417
Total Automobiles				229,826
Hotels, Restaurants & Leisure — 0.7%
Berjaya Sports Toto Berhad		6,400		3,212
Kangwon Land Inc.		1,543		38,861
Total Hotels, Restaurants & Leisure				42,073

See Notes to Financial Statements.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 11

Schedule of investments (cont’d)

October 31, 2018

Legg Mason Emerging Markets Low Volatility High Dividend ETF

Security	Shares		Value
Internet & Direct Marketing Retail — 0.1%
GS Home Shopping Inc.		44	$	7,483
Multiline Retail — 0.1%
Far Eastern Department Stores Ltd.		9,000		4,494
Specialty Retail — 0.0%
Bermaz Auto Berhad		8,400		3,814
Textiles, Apparel & Luxury Goods — 0.2%
China Dongxiang Group Co., Ltd.		34,000		5,248
Xtep International Holdings Ltd.		10,500		5,759
Total Textiles, Apparel & Luxury Goods				11,007
Total Consumer Discretionary				298,697
Consumer Staples — 7.8%
Beverages — 1.9%
Ambev SA		25,738		112,528
Carlsberg Brewery Malaysia Berhad, Class B Shares		1,400		5,955
Total Beverages				118,483
Food & Staples Retailing — 2.6%
Wal-Mart de Mexico SAB de CV		63,610		163,148
Food Products — 1.1%
Charoen Pokphand Foods PCL		49,600		37,780	(a)
Kuala Lumpur Kepong Berhad		4,700		27,990
Thai Vegetable Oil PCL		4,500		3,835	(a)
Total Food Products				69,605
Personal Products — 0.1%
Hengan International Group Co., Ltd.		500		3,961
Tobacco — 2.1%
KT&G Corp.		1,486		132,358
Total Consumer Staples				487,555
Energy — 7.7%
Oil, Gas & Consumable Fuels — 7.7%
Bangchak Corp. PCL		13,100		13,040	(a)
Formosa Petrochemical Corp.		14,000		55,198
Gazprom PJSC		71,256		168,515
IRPC PCL		186,700		34,355	(a)
Motor Oil Hellas Corinth Refineries SA		548		12,977
PTT PCL		106,700		164,154	(a)
Qatar Gas Transport Co., Ltd.		1,774		8,501
Thai Oil PCL		11,400		29,145	(a)
Total Energy				485,885

See Notes to Financial Statements.

12 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

Legg Mason Emerging Markets Low Volatility High Dividend ETF

Security	Shares		Value
Financials — 23.6%
Banks — 23.4%
Abu Dhabi Commercial Bank PJSC		23,395	$	51,527
Agricultural Bank of China Ltd., Class H Shares		314,000		137,786
Banco de Chile		289,072		40,021
Banco Santander Chile		818,092		60,008
Bangkok Bank PCL, Registered Shares		10,200		65,231
Bank of China Ltd., Class H Shares		309,000		131,650
China CITIC Bank Corp., Ltd., Class H Shares		100,000		61,867
China Construction Bank Corp., Class H Shares		116,000		92,038
Doha Bank QPSC		1,441		8,694
Dubai Islamic Bank PJSC		32,222		46,143
First Abu Dhabi Bank PJSC		40,180		151,177
First Financial Holding Co., Ltd.		28,280		17,867
Hong Leong Bank Berhad		3,200		15,830
Industrial Bank of Korea		3,364		43,838
Komercni banka AS		792		30,091
Krung Thai Bank PCL		50,100		30,377	(a)
Malayan Banking Berhad		63,500		144,011
Masraf Al Rayan QSC		3,270		34,114
Mega Financial Holding Co., Ltd.		99,000		83,665
Moneta Money Bank AS		5,738		19,045
Public Bank Berhad		29,300		172,250
Taichung Commercial Bank Co., Ltd.		19,475		6,420
Thanachart Capital PCL		7,200		11,457	(a)
Tisco Financial Group PCL		5,600		13,303	(a)
Total Banks				1,468,410
Capital Markets — 0.0%
China Bills Finance Corp.		8,000		3,413
Diversified Financial Services — 0.1%
Al Waha Capital PJSC		8,714		4,413
Mortgage Real Estate Investment Trusts (REITs) — 0.1%
Concentradora Hipotecaria SAPI de CV		4,900		3,624
Total Financials				1,479,860
Industrials — 3.9%
Airlines — 0.1%
Air Arabia PJSC		16,379		4,548
Commercial Services & Supplies — 0.1%
Cleanaway Co., Ltd.		1,000		5,510

See Notes to Financial Statements.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 13

Schedule of investments (cont’d)

October 31, 2018

Legg Mason Emerging Markets Low Volatility High Dividend ETF

Security	Shares		Value
Construction & Engineering — 0.6%
CTCI Corp.		6,000	$	8,464
Gamuda Berhad		21,200		12,109
IJM Corp. Berhad		29,300		11,413
United Integrated Services Co., Ltd.		3,000		5,361
Total Construction & Engineering				37,347
Industrial Conglomerates — 1.2%
HAP Seng Consolidated Berhad		5,300		12,476
Industries Qatar QSC		920		35,367
Reunert Ltd.		1,529		8,258
Sime Darby Berhad		41,400		21,766
Total Industrial Conglomerates				77,867
Machinery — 0.1%
Syncmold Enterprise Corp.		2,000		3,154	(a)
Marine — 0.2%
MISC Berhad		10,300		15,015
Trading Companies & Distributors — 0.1%
China Aircraft Leasing Group Holdings Ltd.		4,500		4,564
Transportation Infrastructure — 1.5%
China Merchants Port Holdings Co., Ltd.		16,000		27,227
Jiangsu Expressway Co., Ltd., Class H Shares		14,000		18,787
Shenzhen International Holdings Ltd.		11,000		21,048
Westports Holdings Berhad		8,400		6,845
Yuexiu Transport Infrastructure Ltd.		8,000		6,419
Zhejiang Expressway Co., Ltd., Class H Shares		18,000		15,085
Total Transportation Infrastructure				95,411
Total Industrials				243,416
Information Technology — 7.8%
Electronic Equipment, Instruments & Components — 1.4%
Delta Electronics (Thailand) PCL		8,600		17,901	(a)
Hana Microelectronics PCL		6,000		6,561	(a)
Simplo Technology Co., Ltd.		2,800		16,243
Synnex Technology International Corp.		16,000		17,219
TXC Corp.		4,000		3,994
WPG Holdings Ltd.		17,480		20,760
WT Microelectronics Co., Ltd.		6,000		7,727
Total Electronic Equipment, Instruments & Components				90,405
IT Services — 3.0%
Cielo SA		9,100		32,412

See Notes to Financial Statements.

14 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

Legg Mason Emerging Markets Low Volatility High Dividend ETF

Security	Shares		Value
IT Services — continued
Infosys Ltd.		16,466	$	152,847
Systex Corp.		2,000		4,001
Total IT Services				189,260
Semiconductors & Semiconductor Equipment — 0.6%
Novatek Microelectronics Corp.		1,000		4,411
Radiant Opto-Electronics Corp.		10,000		26,145
Sitronix Technology Corp.		2,000		5,171
Total Semiconductors & Semiconductor Equipment				35,727
Technology Hardware, Storage & Peripherals — 2.8%
Asustek Computer Inc.		7,000		51,805
Chicony Electronics Co., Ltd.		7,025		14,053
Compal Electronics Inc.		46,000		25,347
Inventec Corp.		31,000		24,996
Mitac Holdings Corp.		8,048		6,528
Quanta Computer Inc.		30,000		47,361
Transcend Information Inc.		3,000		6,263
Total Technology Hardware, Storage & Peripherals				176,353
Total Information Technology				491,745
Materials — 17.0%
Chemicals — 10.6%
Ciech SA		434		4,808
Engro Fertilizers Ltd.		12,500		7,650
Fauji Fertilizer Co., Ltd.		12,000		8,903
Formosa Chemicals & Fibre Corp.		39,000		141,163
Formosa Plastics Corp.		41,000		133,827
Huabao International Holdings Ltd.		14,000		6,518
LCY Chemical Corp.		8,000		13,418
Nan Ya Plastics Corp.		52,000		129,231
Petronas Chemicals Group Berhad		33,900		75,747
PhosAgro PJSC, Registered Shares, GDR		3,629		47,540
PTT Global Chemical PCL		29,000		67,579	(a)
Sinopec Shanghai Petrochemical Co., Ltd., Class H Shares		50,000		21,941
Taiwan Styrene Monomer		10,000		7,433
Total Chemicals				665,758
Construction Materials — 2.4%
Siam Cement PCL, Registered Shares		7,675		95,388
Taiwan Cement Corp.		48,400		54,276
Total Construction Materials				149,664

See Notes to Financial Statements.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 15

Schedule of investments (cont’d)

October 31, 2018

Legg Mason Emerging Markets Low Volatility High Dividend ETF

Security	Shares		Value
Containers & Packaging — 0.1%
Greatview Aseptic Packaging Co., Ltd.		6,000	$	3,980
Metals & Mining — 3.9%
Feng Hsin Steel Co., Ltd.		5,000		9,469
MMC Norilsk Nickel PJSC		885		148,083
Novolipetsk Steel PJSC		15,340		37,433
Severstal PJSC		3,060		47,944
Tung Ho Steel Enterprise Corp.		8,000		5,416
Total Metals & Mining				248,345
Total Materials				1,067,747
Real Estate — 2.0%
Equity Real Estate Investment Trusts (REITs) — 1.1%
Fibra Uno Administracion SA de CV		38,544		41,397
Pavilion Real Estate Investment Trust		15,900		6,041
Prologis Property Mexico SA de CV		5,828		10,303
Yuexiu Real Estate Investment Trust		22,000		13,358
Total Equity Real Estate Investment Trusts (REITs)				71,099
Real Estate Management & Development — 0.9%
Aldar Properties PJSC		33,520		15,788
DAMAC Properties Dubai Co. PJSC		7,288		4,008
Huaku Development Co. Ltd.		3,000		6,079
LSR Group PJSC, GDR, Registered Shares		4,751		8,837
Quality Houses PCL		78,600		7,445	(a)
Sansiri PCL		151,200		7,161	(a)
United Development Co. QSC		1,342		5,159
Total Real Estate Management & Development				54,477
Total Real Estate				125,576
Utilities — 7.3%
Electric Utilities — 3.2%
Enel Chile SA		313,563		27,278
Tenaga Nasional Berhad		44,000		154,570
Transmissora Alianca de Energia Eletrica SA		2,900		17,520
Total Electric Utilities				199,368
Gas Utilities — 0.4%
Petronas Gas Berhad		6,200		27,085
Independent Power and Renewable Electricity Producers — 3.2%
CGN Power Co., Ltd., Class H Shares		97,000		22,272
China Resources Power Holdings Co., Ltd.		26,000		45,703
Electricity Generating PCL		2,500		17,421	(a)

See Notes to Financial Statements.

16 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

Legg Mason Emerging Markets Low Volatility High Dividend ETF

Security					Shares		Value
Independent Power and Renewable Electricity Producers — continued
Engie Brasil Energia SA						2,824	$	30,259
Glow Energy PCL						6,600		16,674	(a)
Hub Power Co., Ltd.						11,000		7,690
Kot Addu Power Co., Ltd.						9,000		3,654
NTPC Ltd.						23,824		51,437
SPCG PCL						5,600		3,412	(a)
Unipro PJSC						102,000		4,201
Total Independent Power and Renewable Electricity Producers								202,723
Multi-Utilities — 0.1%
YTL Corp. Berhad						32,700		8,283
Water Utilities — 0.4%
Aguas Andinas SA, Class A Shares						32,679		16,988
TTW PCL						13,200		4,898	(a)
Total Water Utilities								21,886
Total Utilities								459,345
Total Common Stocks (Cost — $6,357,122)								6,092,964
	Rate
Preferred Stocks — 1.7%
Communication Services — 1.6%
Diversified Telecommunication Services — 1.6%
Telefonica Brasil SA		—				8,600		99,764
Utilities — 0.1%
Water Utilities — 0.1%
Cia de Saneamento do Parana		—				2,900		7,839
Total Preferred Stocks (Cost — $127,313)								107,603
			Expiration Date		Rights
Rights — 0.0%
Taichung Rights (Cost — $0)				11/26/18		649		0	*(a)(b)
Total Investments — 98.8% (Cost — $6,484,435)								6,200,567
Other Assets in Excess of Liabilities — 1.2%								75,081
Total Net Assets — 100.0%							$	6,275,648

* Non-income producing security.

^(a)  Security is valued in good faith in accordance with procedures approved by the Board of Trustees (Note 1).

^(b)  Value is less than $1.

See Notes to Financial Statements.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 17

Schedule of investments (cont’d)

October 31, 2018

Legg Mason Emerging Markets Low Volatility High Dividend ETF

Abbreviations used in this schedule:
ADR	— American Depositary Receipts
GDR	— Global Depositary Receipts
PJSC	— Private Joint Stock Company

At October 31, 2018, the Fund had the following open futures contracts:

	Number of Contracts		Expiration Date		Notional Amount		Market Value		Unrealized Depreciation
Contracts to Buy:
MSCI Emerging Markets Index Futures		1		12/18	$	48,718	$	47,835	$	(883)

At October 31, 2018, the Fund had the following open forward foreign currency contracts:

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
BRL	11,148	USD	2,841	Bank of New York		11/13/18	$	156
USD	297,680	BRL	1,160,609	Bank of New York		11/13/18		(14,369)
USD	154,657	CLP	104,238,943	Bank of New York		11/13/18		4,950
USD	54,731	CZK	1,224,405	Bank of New York		11/13/18		1,242
USD	15,236	EUR	13,189	Bank of New York		11/13/18		276
USD	250,076	INR	18,559,403	Bank of New York		11/13/18		(506)
USD	589,286	KRW	665,392,475	Bank of New York		11/13/18		5,178
USD	250,974	MXN	4,818,875	Bank of New York		11/13/18		13,530
USD	12,996	PLN	48,497	Bank of New York		11/13/18		332
USD	89,848	QAR	326,866	Bank of New York		11/13/18		72
USD	431,564	RUB	29,007,367	Bank of New York		11/13/18		(8,935)
USD	1,068,076	TWD	32,841,210	Bank of New York		11/13/18		5,778
USD	73,484	ZAR	1,087,397	Bank of New York		11/13/18		(37)
USD	860,713	MYR	3,566,622	HSBC Bank USA, N.A.		11/13/18		8,641
USD	457,972	AED	1,682,224	USB AG		11/13/18		1
USD	962,689	HKD	7,537,717	USB AG		11/13/18		709
USD	767,927	THB	25,086,038	USB AG		11/13/18		10,952
Total							$	27,970

Abbreviations used in this table:
AED	— United Arab Emirates Dirham
BRL	— Brazilian Real
CLP	— Chilean Peso
CZK	— Czech Koruna
EUR	— Euro
HKD	— Hong Kong Dollar
INR	— Indian Rupee
KRW	— South Korean Won

See Notes to Financial Statements.

18 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

Legg Mason Emerging Markets Low Volatility High Dividend ETF

Abbreviations used in this table (cont’d):
MXN	— Mexican Peso
MYR	— Malaysian Ringgit
PLN	— Polish Zloty
QAR	— Qatari Rial
RUB	— Russian Ruble
THB	— Thai Baht
TWD	— Taiwan Dollar
USD	— United States Dollar
ZAR	— South African Rand

Summary of Investments by Country** (unaudited)
Taiwan	15.8	%
China	14.5
Malaysia	13.0
Thailand	11.5
Russia	9.3
South Korea	8.7
United Arab Emirates	7.4
Brazil	4.9
India	3.8
Mexico	3.5
Chile	2.3
Qatar	1.5
South Africa	1.2
Czech Republic	0.8
Pakistan	0.6
Poland	0.4
Hong Kong	0.3
Greece	0.2
Philippines	0.2
Hungary	0.1
	100.0	%

** As a percentage of total investments. Please note that the Fund holdings are as of October 31, 2018 and are subject to change.

See Notes to Financial Statements.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 19

Statement of assets and liabilities

October 31, 2018

Assets:
Investments, at value (Cost — $6,484,435)	$	6,200,567
Foreign currency, at value (Cost — $35,789)		35,611
Unrealized appreciation on forward foreign currency contracts		51,817
Dividends and interest receivable		12,704
Deposits with brokers for open futures contracts		4,955
Total Assets		6,305,654
Liabilities:
Unrealized depreciation on forward foreign currency contracts		23,847
Investment management fee payable		2,712
Accrued foreign capital gains tax		2,139
Payable to broker — variation margin on open futures contracts		894
Due to custodian		414
Total Liabilities		30,006
Total Net Assets	$	6,275,648
Net Assets:
Par value (Note 5)	$	2
Paid-in capital in excess of par value		6,372,780
Undistributed net investment income		50,268
Accumulated net realized gain on investments, futures contracts, forward foreign currency contracts and foreign currency transactions		111,327
Net unrealized depreciation on investments, futures contracts, forward foreign currency contracts and foreign currencies		(258,729)	†
Total Net Assets	$	6,275,648
Shares Outstanding		240,000
Net Asset Value		$26.15

† Net of accrued foreign capital gains tax of $2,139.

See Notes to Financial Statements.

20 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

Statement of operations

For the Year Ended October 31, 2018

Investment Income:
Dividends	$	306,768
Interest		1,733
Less: Foreign taxes withheld		(33,441)
Total Investment Income		275,060
Expenses:
Investment management fee (Note 2)		29,920
Total Expenses		29,920
Net Investment Income		245,140
Realized and Unrealized Gain (Loss) on Investments, Futures Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions (Notes 1, 3 and 4):
Net Realized Gain (Loss) From:
Investment transactions		44,130	1
Futures contracts		(7,339)
Forward foreign currency contracts		188,609
Foreign currency transactions		(5,595)
Net Realized Gain		219,805
Change in Net Unrealized Appreciation (Depreciation) From:
Investments		(642,920)	‡
Futures contracts		(883)
Forward foreign currency contracts		26,529
Foreign currencies		267
Change in Net Unrealized Appreciation (Depreciation)		(617,007)
Net Loss on Investments, Futures Contracts, Forward Foreign Currency Contracts and Foreign Currency Transactions		(397,202)
Decrease in Net Assets From Operations	$	(152,062)

¹   Net of foreign capital gains tax of $231.

‡ Net of change in accrued foreign capital gains tax of $1,415.

See Notes to Financial Statements.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 21

Statements of changes in net assets

For the Years Ended October 31,	2018		2017†
Operations:
Net investment income	$	245,140	$	120,654
Net realized gain (loss)		219,805		(53,510)
Change in net unrealized appreciation (depreciation)		(617,007)		358,278
Increase (Decrease) in Net Assets From Operations		(152,062)		425,422
Distributions to Shareholders From (Note 1):
Net investment income		(257,494)		(113,000)
Decrease in Net Assets From Distributions to Shareholders		(257,494)		(113,000)
Fund Share Transactions (Note 5):
Net proceeds from sale of shares (120,000 and 120,000 shares issued, respectively)		3,375,423		2,997,359
Increase in Net Assets From Fund Share Transactions		3,375,423		2,997,359
Increase in Net Assets		2,965,867		3,309,781
Net Assets:
Beginning of year		3,309,781		—
End of year*	$	6,275,648	$	3,309,781
*Includes undistributed net investment income of:		$50,268		$11,285

† For the period November 17, 2016 (inception date) to October 31, 2017.

See Notes to Financial Statements.

22 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

Financial highlights

For a share of beneficial interest outstanding throughout each year ended October 31, unless otherwise noted:
	20181			20171,2
Net asset value, beginning of year		$27.58			$24.94
Income (loss) from operations:
Net investment income		1.13			1.01
Net realized and unrealized gain (loss)		(1.34)			2.57
Total income (loss) from operations		(0.21)			3.58
Less distributions from:
Net investment income		(1.22)			(0.94)
Total distributions		(1.22)			(0.94)
Net asset value, end of year		$26.15			$27.58
Total return, based on NAV3		(0.87)	%		14.53	%
Net assets, end of year (000s)		$6,276			$3,310
Ratios to average net assets:
Gross expenses		0.50	%		0.50	%4
Net expenses		0.50			0.50	4
Net investment income		4.10			3.93	4
Portfolio turnover rate5		27	%		25	%

¹  Per share amounts have been calculated using the average shares method.

²  For the period November 17, 2016 (inception date) to October 31, 2017.

³  Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total return would have been lower. The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future results. Total returns for periods of less than one year are not annualized.

⁴  Annualized.

⁵  Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions.

See Notes to Financial Statements.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 23

Notes to financial statements

1. Organization and significant accounting policies

Legg Mason Emerging Markets Low Volatility High Dividend ETF (the “Fund”) is a separate diversified investment series of Legg Mason ETF Investment Trust (the “Trust”). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.

The Fund is an exchange-traded fund (“ETF”). ETFs are funds that trade like other publicly-traded securities. The Fund is designed to track an index. Similar to shares of an index mutual fund, each share of the Fund represents an ownership interest in an underlying portfolio of securities intended to track an index. Unlike shares of a mutual fund, which can be bought from and redeemed by the issuing fund by all shareholders at a price based on net asset value (“NAV”), shares of the Fund may be directly purchased from and redeemed by the Fund at NAV solely by certain large institutional investors who have entered into agreements with the Fund’s distributor (“Authorized Participants”). Also unlike shares of a mutual fund, shares of the Fund are listed on a national securities exchange and trade in the secondary market at market prices that change throughout the day.

Shares of the Fund are listed and traded at market prices on the Cboe BZX Exchange, Inc. The market price for the Fund’s shares may be different from the Fund’s NAV. The Fund issues and redeems shares at NAV only in blocks of a specified number of shares or multiples thereof (“Creation Units”). Only Authorized Participants may purchase or redeem Creation Units directly with the Fund at NAV. Creation Units generally are issued and redeemed partially in-kind for a basket of securities and partially in cash. Except when aggregated in Creation Units, shares of the Fund are not redeemable securities. Shareholders who are not Authorized Participants may not redeem shares directly from the Fund at NAV.

The Fund seeks to track the investment results of the QS Emerging Markets Low Volatility High Dividend Hedged Index (the “Underlying Index”). The Underlying Index seeks to provide more stable income through investments in stocks of profitable companies in emerging markets outside of the United States with relatively high dividend yields or anticipated dividend yields and lower price and earnings volatility, while mitigating exposure to exchange-rate fluctuations between the U.S. dollar and currencies in which the component securities are denominated and is based on a proprietary methodology created and sponsored by QS Investors, LLC, the Fund’s subadviser.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”). Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.

(a) Investment valuation. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or

24 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

exchange on which they trade. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Prior to December 1, 2017, short-term fixed income securities that would mature in 60 days or less were valued at amortized cost, unless it was determined that using this method would not reflect an investment’s fair value. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the Board of trade or exchange on which they are traded. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will use the currency exchange rates, generally determined as of 4:00 p.m. (London Time) (4:00 p.m. Eastern Time prior to October 1, 2018). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Trustees.

The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 25

Notes to financial statements (cont’d)

from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

• Level 1 — quoted prices in active markets for identical investments

• Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 — significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

26 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

The following is a summary of the inputs used in valuing the Fund’s assets and liabilities carried at fair value:

ASSETS
Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Long-term investments†:
Common stocks:
Communication services	$	874,697	$	78,441			—	$	953,138
Consumer discretionary		298,697		—			—		298,697
Consumer staples		445,940		41,615			—		487,555
Energy		245,191		240,694			—		485,885
Financials		1,424,723		55,137			—		1,479,860
Industrials		240,262		3,154			—		243,416
Information technology		467,283		24,462			—		491,745
Materials		1,000,168		67,579			—		1,067,747
Real estate		110,970		14,606			—		125,576
Utilities		416,940		42,405			—		459,345
Preferred stocks		107,603		—			—		107,603
Rights		—		0	*		—		0	*
Total investments	$	5,632,474	$	568,093			—	$	6,200,567
Other financial instruments:
Forward foreign currency contracts		—	$	51,817			—	$	51,817
Total	$	5,632,474	$	619,910			—	$	6,252,384
LIABILITIES
Description	Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total
Other financial instruments:
Futures contracts	$	883		—			—	$	883
Forward foreign currency contracts		—	$	23,847			—		23,847
Total	$	883	$	23,847			—	$	24,730

† See Schedule of Investments for additional detailed categorizations.

* Amount represents less than $1.

The Fund’s policy is to recognize transfers between levels as of the end of the reporting period. At October 31, 2018, securities valued at $44,290 were transferred from Level 1 to Level 2 within the fair value hierarchy because of the unavailability of a quoted price in an active market for a identical.

(b) Futures contracts. The Fund uses futures contracts generally to gain exposure or manage exposure to certain assets classes, sectors, or markets or for cash management purposes. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 27

Notes to financial statements (cont’d)

Upon entering into a futures contract, the Fund is required to deposit cash or cash equivalents with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ‘‘initial margin’’ and subsequent payments (‘‘variation margin’’) are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. The daily changes in contract value are recorded as unrealized gains or losses in the Statement of Operations and the Fund recognizes a realized gain or loss when the contract is closed.

Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the financial statements. In addition, there is the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.

(c) Forward foreign currency contracts. The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.

Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency.

Forward foreign currency contracts involve elements of market risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(d) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.

The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss on investments.

28 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

Net realized foreign exchange gains or losses arise from sales of foreign currencies, including gains and losses on forward foreign currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of valuation, resulting from changes in exchange rates.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.

(e) Foreign investment risks. The Fund’s investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.

(f) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions, where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund’s subadviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default of the clearing broker or clearinghouse.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 29

Notes to financial statements (cont’d)

The Fund has entered into master agreements, such as an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement, with certain of its derivative counterparties that govern over-the-counter derivatives and provide for general obligations, representations, agreements, collateral posting terms, netting provisions in the event of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund’s net assets or NAV over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. However, absent an event of default by the counterparty or a termination of the agreement, the terms of the ISDA Master Agreements do not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

As of October 31, 2018, the Fund held forward foreign currency contracts with credit related contingent features which had a liability position of $23,847. If a contingent feature in the master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.

(g) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities), adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

(h) Distributions to shareholders. Distributions from net investment income of the Fund, if any, are declared and paid on a quarterly basis. Distributions of net realized gains,

30 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

(i) Federal and other taxes. It is the Fund’s policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the “Code”), as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Fund’s financial statements.

Management has analyzed the Fund’s tax positions taken on income tax returns for all open tax years and has concluded that as of October 31, 2018, no provision for income tax is required in the Fund’s financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

Under the applicable foreign tax laws, a withholding tax may be imposed on interest, dividends and capital gains at various rates. Realized gains upon disposition of securities issued in or by certain foreign countries are subject to capital gains tax imposed by those countries. As of October 31, 2018, there were $2,139 of capital gains tax liabilities accrued on unrealized gains.

(j) Reclassification. GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. During the current year, the following reclassifications have been made:

	Undistributed Net Investment Income		Accumulated Net Realized Gain
(a)	$	51,337	$	(51,337)

^(a)   Reclassifications are due to foreign currency transactions treated as ordinary income for tax purposes, book/tax differences in the treatment of passive foreign investment companies and book/tax differences in the treatment of foreign capital gains tax.

2. Investment management agreement and other transactions with affiliates

Legg Mason Partners Fund Advisor, LLC (“LMPFA”) is the Fund’s investment manager and QS Investors, LLC (“QS Investors”) is the Fund’s subadviser. Western Asset Management Company, LLC (formerly Western Asset Management Company) (“Western Asset”) manages the portion of the Fund’s cash and short-term instruments allocated to it. LMPFA, QS Investors and Western Asset are wholly-owned subsidiaries of Legg Mason, Inc. (“Legg Mason”).

LMPFA provides administrative and certain oversight services to the Fund. LMPFA delegates to the subadviser the day-to-day portfolio management of the Fund. The Fund is responsible for paying interest expenses, taxes, brokerage expenses, future 12b-1 fees (if any), acquired fund fees and expenses, extraordinary expenses and the management fee payable to LMPFA under the investment management agreement.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 31

Notes to financial statements (cont’d)

Under the investment management agreement and subject to the general supervision of the Fund’s Board of Trustees, LMPFA provides or causes to be furnished all investment management, supervisory, administrative and other services reasonably necessary for the operation of the Fund, including certain distribution services (provided pursuant to a separate distribution agreement) and investment advisory services (provided pursuant to separate subadvisory agreements) under a unitary fee structure. The Fund pays an investment management fee, calculated daily and paid monthly, at an annual rate of 0.50% of the Fund’s average daily net assets.

As compensation for its subadvisory services, LMPFA pays QS Investors monthly 90% of the management fee paid by the Fund to LMPFA, net of (i) all fees and expenses incurred by LMPFA under the investment management agreement (including without limitation any subadvisory fee paid to another subadviser to the Fund) and (ii) expense waivers, if any, and reimbursements. LMPFA pays Western Asset monthly a fee of 0.02% of the portion of the Fund’s average daily net assets allocated to Western Asset for the management of cash and other short-term instruments, net of expense waivers, if any, and reimbursements.

Legg Mason Investor Services, LLC, a wholly-owned broker-dealer subsidiary of Legg Mason, serves as the distributor of Creation Units for the Fund on an agency basis.

The Fund’s Board of Trustees has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan, the Fund is authorized to pay service and/or distribution fees calculated at an annual rate of up to 0.25% of its average daily net assets. No service and/or distribution fees are currently paid by the Fund, and there are no current plans to impose these fees.

All officers and one Trustee of the Trust are employees of Legg Mason or its affiliates and do not receive compensation from the Trust.

3. Investments

During the year ended October 31, 2018, the aggregate cost of purchases and proceeds from sales of investments (excluding in-kind transactions and short-term investments) were as follows:

Purchases	$	4,318,997
Sales		1,584,057

During the year ended October 31, 2018, in-kind transactions (Note 5) were as follows:

Contributions	$	775,115
Redemptions		—

The in-kind contributions and in-kind redemptions shown in this table may not agree with the Fund Share Transactions on the Statement of Changes in Net Assets. This table represents the accumulation of the Fund’s daily net shareholder transactions while the Statement of Changes in Net Assets reflects gross shareholder transactions including any cash component of the transactions.

32 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

At October 31, 2018, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:

	Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
Securities	$	6,487,398	$	254,042	$	(540,873)	$	(286,831)
Futures contracts		—		—		(883)		(883)
Forward foreign currency contracts		—		51,817		(23,847)		27,970

4. Derivative instruments and hedging activities

Below is a table, grouped by derivative type, that provides information about the fair value and the location of derivatives within the Statement of Assets and Liabilities at October 31, 2018.

ASSET  DERIVATIVES1
	Foreign Exchange Risk
Forward foreign currency contracts	$	51,817

LIABILITY DERIVATIVES1
	Foreign Exchange Risk		Equity Risk		Total
Futures contracts2		—	$	883	$	883
Forward foreign currency contracts	$	23,847		—		23,847
Total	$	23,847	$	883	$	24,730

¹   Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation (depreciation) and for liability derivatives is payables/net unrealized appreciation (depreciation).

²  Includes cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only variation margin is reported within receivables and/or payables on the Statement of Assets and Liabilities.

The following tables provide information about the effect of derivatives and hedging activities on the Fund’s Statement of Operations for the year ended October 31, 2018. The first table provides additional detail about the amounts and sources of gains (losses) realized on derivatives during the period. The second table provides additional information about the change in unrealized appreciation (depreciation) resulting from the Fund’s derivatives and hedging activities during the period.

AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED
	Foreign Exchange Risk		Equity Risk		Total
Futures contracts		—	$	(7,339)	$	(7,339)
Forward foreign currency contracts	$	188,609		—		188,609
Total	$	188,609	$	(7,339)	$	181,270

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 33

Notes to financial statements (cont’d)

CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
	Foreign Exchange Risk		Equity Risk		Total
Futures contracts		—	$	(883)	$	(883)
Forward foreign currency contracts	$	26,529		—		26,529
Total	$	26,529	$	(883)	$	25,646

During the year ended October 31, 2018, the volume of derivative activity for the Fund was as follows:

	Average Market Value
Futures contracts (to buy)	$	28,579
Forward foreign currency contracts (to buy)		5,320
Forward foreign currency contracts (to sell)		5,613,579

The following table presents the Fund’s OTC derivative assets and liabilities by counterparty net of amounts available for offset under an ISDA Master Agreement and net of the related collateral pledged (received) by the Fund as of October 31, 2018.

Counterparty	Gross Assets Subject to Master Agreements1		Gross Liabilities Subject to Master Agreements1		Net Assets (Liabilities) Subject to Master Agreements		Collateral Pledged (Received)		Net Amount2
Bank of New York	$	31,514	$	(23,847)	$	7,667		—	$	7,667
HSBC Bank USA, N.A.		8,641		—		8,641		—		8,641
UBS AG		11,662		—		11,662		—		11,662
Total	$	51,817	$	(23,847)	$	27,970		—	$	27,970

¹   Absent an event of default or early termination, derivative assets and liabilities are presented gross and not offset in the Statement of Assets and Liabilities.

²  Represents the net amount receivable (payable) from (to) the counterparty in the event of default.

5. Fund share transactions

At October 31, 2018, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. Fund shares are issued and redeemed by the Fund only in Creation Units or Creation Unit aggregations, where 120,000 shares of the Fund constitute a Creation Unit. Such transactions are generally made partially on an in-kind basis and partially on a cash basis, with a separate cash payment, which is a balancing cash component to equate the transaction to the net asset value per share of the Fund on the transaction date. Transactions in capital shares of the Fund are disclosed in detail in the Statement of Changes in Net Assets. Authorized Participants are subject to standard creation and redemption transaction fees to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units. Creations and redemptions for cash (when cash creations and redemptions are available or specified) may be subject to an additional variable fee.

For the year ended October 31, 2018 and for the period ended October 31, 2017, the variable fees amounted to $3,662 and $4,220, respectively, and are recorded to paid-in capital.

34 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

6. Income tax information and distributions to shareholders

The tax character of distributions paid during the fiscal years ended October 31, was as follows:

	2018		2017
Distributions paid from:
Ordinary income	$	257,494	$	113,000

As of October 31, 2018, the components of accumulated earnings (losses) on a tax basis were as follows:

Undistributed ordinary income — net	$	110,107
Undistributed long-term capital gains — net		55,386
Total undistributed earnings	$	165,493
Other book/tax temporary differences(a)		(935)
Unrealized appreciation (depreciation)(b)		(261,692)
Total accumulated earnings (losses) — net	$	(97,134)

^(a)   Other book/tax temporary differences are attributable to the realization for tax purposes of unrealized gains (losses) on certain futures and foreign currency contracts.

^(b)  The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to the tax deferral of losses on wash sales and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report 35

Report of independent registered public accounting firm

To the Board of Trustees of Legg Mason ETF Investment Trust and Shareholders of Legg Mason Emerging Markets Low Volatility High Dividend ETF

Opinion on the financial statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Legg Mason Emerging Markets Low Volatility High Dividend ETF (one of the funds constituting Legg Mason ETF Investment Trust, referred to hereafter as the “Fund”) as of October 31, 2018, the related statement of operations for the year ended October 31, 2018 and the statement of changes in net assets and the financial highlights for the year ended October 31, 2018 and for the period November 17, 2016 (commencement of operations) through October 31, 2017, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2018, the results of its operations for the year ended October 31, 2018, and the changes in its net assets and the financial highlights for the year ended October 31, 2018 and for the period November 17, 2016 (commencement of operations) through October 31, 2017 in conformity with accounting principles generally accepted in the United States of America.

Basis for opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Baltimore, Maryland

December 19, 2018

We have served as the auditor of one or more investment companies in Legg Mason investment company group since at least 1973. We have not determined the specific year we began serving as auditor.

36 Legg Mason Emerging Markets Low Volatility High Dividend ETF 2018 Annual Report

Additional information (unaudited)

Information about Trustees and Officers

The business and affairs of Legg Mason Emerging Markets Low Volatility High Dividend ETF (the “Fund”) are conducted by management under the supervision and subject to the direction of its Board of Trustees. The business address of each Trustee is c/o Jane Trust, Legg Mason, 100 International Drive, 11th Floor, Baltimore, Maryland 21202. Information pertaining to the Trustees and officers of the Fund is set forth below.

The Statement of Additional Information includes additional information about Trustees and is available, without charge, upon request by calling the Fund at 1-877-721-1926.

Independent Trustees†
Paul R. Ades
Year of birth	1940
Position(s) with Trust	Trustee
Term of office1 and length of time served2	Since 1983
Principal occupation(s) during past five years	Paul R. Ades, PLLC (law firm) (since 2000)
Number of funds in fund complex overseen by Trustee	48
Other board memberships held by Trustee during past five years	None
Andrew L. Breech
Year of birth	1952
Position(s) with Trust	Trustee
Term of office1 and length of time served2	Since 1991
Principal occupation(s) during past five years	President, Dealer Operating Control Service, Inc. (automotive retail management) (since 1985)
Number of funds in fund complex overseen by Trustee	48
Other board memberships held by Trustee during past five years	None
Dwight B. Crane
Year of birth	1937
Position(s) with Trust	Trustee
Term of office1 and length of time served2	Since 1981
Principal occupation(s) during past five years	Professor Emeritus, Harvard Business School (since 2007); formerly, Professor, Harvard Business School (1969 to 2007); Independent Consultant (since 1969)
Number of funds in fund complex overseen by Trustee	48
Other board memberships held by Trustee during past five years	None

Legg Mason Emerging Markets Low Volatility High Dividend ETF 37

Additional information (unaudited) (cont’d)

Information about Trustees and Officers

Independent Trustees† cont’d
Althea L. Duersten
Year of birth	1951
Position(s) with Trust	Trustee
Term of office1 and length of time served2	Since 2014
Principal occupation(s) during past five years	Retired (since 2011); formerly, Chief Investment Officer, North America, JPMorgan Chase (investment bank) and member of JPMorgan Executive Committee (2007 to 2011)
Number of funds in fund complex overseen by Trustee	48
Other board memberships held by Trustee during past five years	None
Frank G. Hubbard
Year of birth	1937
Position(s) with Trust	Trustee
Term of office1 and length of time served2	Since 1993
Principal occupation(s) during past five years	President, Fealds, Inc. (business development) (since 2016); formerly, President, Avatar International Inc. (business development) (1998 to 2015)
Number of funds in fund complex overseen by Trustee	48
Other board memberships held by Trustee during past five years	None
Howard J. Johnson
Year of birth	1938
Position(s) with Trust	Trustee and Chairman
Term of office1 and length of time served2	From 1981 to 1998 and since 2000 (Chairman since 2013)
Principal occupation(s) during past five years	Chief Executive Officer, Genesis Imaging LLC (technology company) (since 2003)
Number of funds in fund complex overseen by Trustee	48
Other board memberships held by Trustee during past five years	None
Jerome H. Miller
Year of birth	1938
Position(s) with Trust	Trustee
Term of office1 and length of time served2	Since 1995
Principal occupation(s) during past five years	Retired
Number of funds in fund complex overseen by Trustee	48
Other board memberships held by Trustee during past five years	None

38 Legg Mason Emerging Markets Low Volatility High Dividend ETF

Independent Trustees† cont’d
Ken Miller
Year of birth	1942
Position(s) with Trust	Trustee
Term of office1 and length of time served2	Since 1983
Principal occupation(s) during past five years	Retired; formerly, President, Young Stuff Apparel Group, Inc. (apparel manufacturer), division of Li & Fung (1963 to 2012)
Number of funds in fund complex overseen by Trustee	48
Other board memberships held by Trustee during past five years	None
John J. Murphy
Year of birth	1944
Position(s) with Trust	Trustee
Term of office1 and length of time served2	Since 2002
Principal occupation(s) during past five years	President (since 2017) and formerly, Founder and Senior Principal (1983 to 2017),Murphy Capital Management (investment management); and Senior Vice President, Peapack-Gladstone Bank (commercial bank) (since 2017)
Number of funds in fund complex overseen by Trustee	48
Other board memberships held by Trustee during past five years	Trustee, UBS Funds (24 funds) (since 2008); Trustee, Consulting Group Capital Markets Funds (11 funds) (since 2002); Director, Fort Dearborn Income Securities, Inc. (2013 to 2016)
Thomas F. Schlafly
Year of birth	1948
Position(s) with Trust	Trustee
Term of office1 and length of time served2	Since 1983
Principal occupation(s) during past five years	Chairman, The Saint Louis Brewery, LLC (brewery) (since 2012); formerly, President, The Saint Louis Brewery, Inc. (1989 to 2012); Senior Counsel (since 2017) and formerly, Partner (2009 to 2016), Thompson Coburn LLP (law firm)
Number of funds in fund complex overseen by Trustee	48
Other board memberships held by Trustee during past five years	Director, Citizens National Bank of Greater St. Louis (since 2006)

Legg Mason Emerging Markets Low Volatility High Dividend ETF 39

Additional information (unaudited) (cont’d)

Information about Trustees and Officers

Interested Trustee and Officer
Jane Trust, CFA3
Year of birth	1962
Position(s) with Trust	Trustee, President and Chief Executive Officer
Term of office1 and length of time served2	Since 2015
Principal occupation(s) during past five years	Senior Managing Director of Legg Mason & Co., LLC (“Legg Mason & Co.”) (since 2018); Managing Director of Legg Mason & Co. (2016 to 2018); Officer and/or Trustee/Director of 147 funds associated with Legg Mason Partners Fund Advisor, LLC (“LMPFA”) or its affiliates (since 2015); President and Chief Executive Officer of LMPFA (since 2015); formerly, Senior Vice President of LMPFA (2015); Director of ClearBridge, LLC (formerly, Legg Mason Capital Management, LLC) (2007 to 2014); Managing Director of Legg Mason Investment Counsel & Trust Co. (2000 to 2007)
Number of funds in fund complex overseen by Trustee	138
Other board memberships held by Trustee during past five years	None
Additional Officers
Ted P. Becker Legg Mason 620 Eighth Avenue, 49th Floor, New York, NY 10018
Year of birth	1951
Position(s) with Trust	Chief Compliance Officer
Term of office1 and length of time served2	Since 2007
Principal occupation(s) during past five years	Director of Global Compliance at Legg Mason (since 2006); Chief Compliance Officer of LMPFA (since 2006); Managing Director of Compliance of Legg Mason & Co. (since 2005); Chief Compliance Officer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2006)
Susan Kerr Legg Mason 620 Eighth Avenue, 49th Floor, New York, NY 10018
Year of birth	1949
Position(s) with Trust	Chief Anti-Money Laundering Compliance Officer
Term of office1 and length of time served2	Since 2013
Principal occupation(s) during past five years	Assistant Vice President of Legg Mason & Co. and Legg Mason Investor Services, LLC (“LMIS”) (since 2010); Chief Anti-Money Laundering Compliance Officer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2013) and Anti-Money Laundering Compliance Officer of LMIS (since 2012); Senior Compliance Officer of LMIS (since 2011); formerly, AML Consultant, DTCC (2010); AML Consultant, Rabobank Netherlands, (2009); First Vice President, Director of Marketing & Advertising Compliance and Manager of Communications Review Group at Citigroup Inc. (1996 to 2008)

40 Legg Mason Emerging Markets Low Volatility High Dividend ETF

Additional Officers cont’d
Jenna Bailey Legg Mason 100 First Stamford Place, 5th Floor, Stamford, CT 06902
Year of birth	1978
Position(s) with Trust	Identity Theft Prevention Officer
Term of office1 and length of time served2	Since 2015
Principal occupation(s) during past five years	Identity Theft Prevention Officer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2015); Compliance Officer of Legg Mason & Co. (since 2013); Assistant Vice President of Legg Mason & Co. (since 2011); formerly, Associate Compliance Officer of Legg Mason & Co. (2011 to 2013)
Robert I. Frenkel Legg Mason 100 First Stamford Place, 6th Floor, Stamford, CT 06902
Year of birth	1954
Position(s) with Trust	Secretary and Chief Legal Officer
Term of office1 and length of time served2	Since 2007
Principal occupation(s) during past five years	Vice President and Deputy General Counsel of Legg Mason (since 2006); Managing Director and General Counsel — U.S. Mutual Funds for Legg Mason & Co. (since 2006) and Legg Mason & Co. predecessors (since 1994); Secretary and Chief Legal Officer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2006) and Legg Mason & Co. predecessors (prior to 2006)
Thomas C. Mandia Legg Mason 100 First Stamford Place, 6th Floor, Stamford, CT 06902
Year of birth	1962
Position(s) with Trust	Assistant Secretary
Term of office1 and length of time served2	Since 2007
Principal occupation(s) during past five years	Managing Director and Deputy General Counsel of Legg Mason & Co. (since 2005) and Legg Mason & Co. predecessors (prior to 2005); Secretary of LMPFA (since 2006); Assistant Secretary of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2006) and Legg Mason & Co. predecessors (prior to 2006); Secretary of LM Asset Services, LLC (“LMAS”) (since 2002) and Legg Mason Fund Asset Management, Inc. (“LMFAM”) (since 2013) (formerly registered investment advisers)

Legg Mason Emerging Markets Low Volatility High Dividend ETF 41

Additional information (unaudited) (cont’d)

Information about Trustees and Officers

Additional Officers cont’d
Richard F. Sennett Legg Mason 100 International Drive, 7th Floor, Baltimore, MD 21202
Year of birth	1970
Position(s) with Trust	Principal Financial Officer
Term of office1 and length of time served2	Since 2011
Principal occupation(s) during past five years	Principal Financial Officer and Treasurer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2011 and since 2013); Managing Director of Legg Mason & Co. and Senior Manager of the Treasury Policy group for Legg Mason & Co.’s Global Fiduciary Platform (since 2011); formerly, Chief Accountant within the SEC’s Division of Investment Management (2007 to 2011); Assistant Chief Accountant within the SEC’s Division of Investment Management (2002 to 2007)
Christopher Berarducci Legg Mason 620 Eighth Avenue, 49th Floor, New York, NY 10018
Year of birth	1974
Position(s) with Trust	Treasurer
Term of office1 and length of time served2	Since 2014
Principal occupation(s) during past five years	Director of Legg Mason & Co. (since 2015); Treasurer of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2010); formerly, Vice President of Legg Mason & Co. (2011 to 2015); Assistant Controller of certain mutual funds associated with Legg Mason & Co. or its affiliates (prior to 2010)
Jeanne M. Kelly Legg Mason 620 Eighth Avenue, 49th Floor, New York, NY 10018
Year of birth	1951
Position(s) with Trust	Senior Vice President
Term of office1 and length of time served2	Since 2007
Principal occupation(s) during past five years	Senior Vice President of certain mutual funds associated with Legg Mason & Co. or its affiliates (since 2007); Senior Vice President of LMPFA (since 2006); President and Chief Executive Officer of LMAS and LMFAM (since 2015); Managing Director of Legg Mason & Co. (since 2005) and Legg Mason & Co. predecessors (prior to 2005); formerly, Senior Vice President of LMFAM (2013 to 2015)

† Trustees who are not “interested persons” of the Fund within the meaning of Section 2(a)(19) of the Investment Company Act of 1940, as amended the (the “1940 Act”).

¹  Each Trustee and officer serves until his or her respective successor has been duly elected and qualified or until his or her earlier death, resignation, retirement or removal.

²  Indicates the earliest year in which the Trustee became a board member for a fund in the Legg Mason fund complex or the officer took such office.

³  Ms. Trust is an “interested person” of the Fund, as defined in the 1940 Act, because of her position with LMPFA and/or certain of its affiliates.

42 Legg Mason Emerging Markets Low Volatility High Dividend ETF

Important tax information (unaudited)

The following information is provided with respect to the distributions paid during the taxable year ended October 31, 2018:

Record date:	12/27/2017		3/27/2018		6/27/2018		9/26/2018
Payable date:	12/29/2017		3/29/2018		6/29/2018		9/28/2018
Ordinary income:
Qualified dividend income for individuals	35.37	%	48.08	%	48.08	%	48.08	%
Foreign source income*	59.04	%	98.92	%	98.92	%	98.92	%
Foreign taxes paid per share	$0.318267		$0.114817		$0.313149		$0.606755

* Expressed as a percentage of the cash distribution grossed-up for foreign taxes.

The foreign taxes paid represent taxes incurred by the Fund on income received by the Fund from foreign sources. Foreign taxes paid may be included in taxable income with an offsetting deduction from gross income or may be taken as a credit for taxes paid to foreign governments. You should consult your tax adviser regarding the appropriate treatment of foreign taxes paid.

Please retain this information for your records.

Legg Mason Emerging Markets Low Volatility High Dividend ETF 43

Legg Mason

Emerging Markets Low Volatility High Dividend ETF

Trustees

Paul R. Ades

Andrew L. Breech

Dwight B. Crane

Althea L. Duersten

Frank G. Hubbard

Howard J. Johnson

Chairman

Jerome H. Miller

Ken Miller

John J. Murphy

Thomas F. Schlafly

Jane Trust

Investment manager

Legg Mason Partners Fund Advisor, LLC

Subadviser

QS Investors, LLC

Custodian

The Bank of New York Mellon (“BNY”)*

Transfer agent

BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)*

4400 Computer Drive

Westborough, MA 01581

Independent registered public accounting firm

PricewaterhouseCoopers LLP Baltimore, MD

* Effective July 16, 2018, BNY became custodian and BNY Mellon became transfer agent.

Legg Mason Emerging Markets Low Volatility High Dividend ETF

The Fund is a separate investment series of Legg Mason ETF Investment Trust, a Maryland statutory trust.

Legg Mason Emerging Markets Low Volatility High Dividend ETF

Legg Mason Funds

620 Eighth Avenue, 49^th Floor

New York, NY 10018

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov. To obtain information on Form N-Q, shareholders can call the Fund at 1-877-721-1926.

Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Fund at 1-877-721-1926, (2) at www.leggmason.com/etf and (3) on the SEC’s website at www.sec.gov.

This report is submitted for the general information of the shareholders of Legg Mason Emerging Markets Low Volatility High Dividend ETF . This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by a current prospectus.

Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Fund. Please read the prospectus carefully before investing.

www.leggmason.com

© 2018 Legg Mason Investors Services, LLC

Member FINRA, SIPC

ETF Index Disclaimers

The MSCI Emerging Markets IMI Index (the “MSCI Index”) was used by QS Investors, LLC (“QS Investors”), the Fund’s subadviser, as the reference universe for selection of the component securities included in the QS Emerging Markets Low Volatility High Dividend Hedged Index (the “Underlying Index”). MSCI Inc. does not in any way sponsor, support, promote or endorse the Underlying Index or Legg Mason Emerging Markets Low Volatility High Dividend ETF (the “Fund”). MSCI Inc. was not and is not involved in any way in the creation, calculation, maintenance or review of the Underlying Index. The MSCI Index was provided on an “as is” basis. MSCI Inc., its affiliates and any other person or entity involved in or related to compiling, computing or creating the MSCI Index (collectively, the “MSCI Parties”) expressly disclaim all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose). Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including without limitation lost profits) or any other damages in connection with the MSCI Index, the Underlying Index or the Fund.

The Fund is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Underlying Index and/or Underlying Index trade mark or the Underlying Index Price at any time or in any other respect. The Underlying Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Underlying Index is calculated correctly. Irrespective of its obligations towards the Fund, Solactive AG has no obligation to point out errors in the Underlying Index to third parties including but not limited to investors and/or financial intermediaries of the Fund. Neither publication of the Underlying Index by Solactive AG nor the licensing of the Underlying Index or Underlying Index trade mark for the purpose of use in connection with the Fund constitutes a recommendation by Solactive AG to invest capital in this Fund nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this Fund.

QS Investors does not guarantee the accuracy and/or the completeness of the Underlying Index or any data included therein, and QS Investors shall not have any liability for any errors, omissions or interruptions therein. QS Investors makes no warranty, express or implied, as to results to be obtained by the Fund, owners of the shares of the Fund or any other person or entity from the use of the Underlying Index, or any data included therein, either in connection with the Fund or for any other use. QS Investors makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Underlying Index or any data included therein. Without limiting any of the foregoing, in no event shall QS Investors have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) arising out of matters relating to the use of the Underlying Index, even if notified of the possibility of such damages.

www.leggmason.com

© 2018 Legg Mason Investor Services, LLC Member FINRA, SIPC

ETFF418413 12/18 SR18-3507

ITEM 2. CODE OF ETHICS.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the registrant has determined that Dwight B. Crane, possess the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as “audit committee financial experts,” and have designated Dwight B. Crane as the Audit Committee’s financial experts. Dwight B. Crane is an “independent” Trustees pursuant to paragraph (a) (2) of Item 3 to Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

a) Audit Fees. The aggregate fees billed in the last fiscal period ending October 31, 2017 and October 31, 2018 (the “Reporting Period”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Period, were $80,000 in October 31, 2017 and $140,000 in October 31, 2018.

b) Audit-Related Fees. The aggregate fees billed in the Reporting Period for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant’s financial statements were $0 in October 31, 2017 and $52,489 in October 31, 2018.

In addition, there were no Audit-Related Fees billed in the Reporting Period for assurance and related services by the Auditor to the Registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Legg Mason ETF Investment Trust (“service affiliates”), that were reasonably related to the performance of the annual audit of the service affiliates. Accordingly, there were no such fees that required pre-approval by the Audit Committee for the Reporting Period.

(c) Tax Fees. The aggregate fees billed in the Reporting Period for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $12,500 in October 31, 2017 and $0 in October 31, 2018. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Auditors to service affiliates during the Reporting Period that required pre-approval by the Audit Committee.

d) All Other Fees. The aggregate fees for other fees billed in the Reporting Periods for products and services provided by the Auditor were $0 in October 31, 2017 and $0 in October 31, 2018, other than the services reported in paragraphs (a) through (c) of this item for the Legg Mason ETF Investment Trust.

All Other Fees. There were no other non-audit services rendered by the Auditor to Legg Mason Partners Fund Advisors, LLC (“LMPFA”), and any entity controlling, controlled by or under common control with LMPFA that provided ongoing services to Legg Mason ETF Investment Trust requiring pre-approval by the Audit Committee in the Reporting Period.

(e) Audit Committee’s pre–approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

(1) The Charter for the Audit Committee (the “Committee”) of the Board of each registered investment company (the “Fund”) advised by LMPFA or one of their affiliates (each, an “Adviser”) requires that the Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund’s independent auditors to the Adviser and any Covered Service Providers if the engagement relates directly to the operations and financial reporting of the Fund. The Committee may implement policies and procedures by which such services are approved other than by the full Committee.

The Committee shall not approve non-audit services that the Committee believes may impair the independence of the auditors. As of the date of the approval of this Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Adviser and any service providers controlling, controlled by or under common control with the Adviser that provide ongoing services to the Fund (“Covered Service Providers”) constitutes not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Adviser and (c) any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.

(2) For the Legg Mason ETF Investment Trust, the percentage of fees that were approved by the audit committee, with respect to: Audit-Related Fees were 100% and 100% for October 31, 2017 and October 31, 2018; Tax Fees were 100% and 100% for October 31, 2017 and October 31, 2018; and Other Fees were 100% and 100% for October 31, 2017 and October 31, 2018.

(f) N/A

(g) Non-audit fees billed by the Auditor for services rendered to Legg Mason ETF Investment Trust, LMPFA and any entity controlling, controlled by, or under common control with LMPFA that provides ongoing services to Legg Mason ETF Investment Trust during the reporting period were $160,000 in October 31, 2017 and $678,000 in October 31, 2018.

(h) Yes. Legg Mason ETF Investment Trust’s Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Accountant’s independence. All services provided by the Auditor to the Legg Mason ETF Investment Trust or to Service Affiliates, which were required to be pre-approved, were pre-approved as required.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

a) The independent board members are acting as the registrant’s audit committee as specified in Section 3(a)(58)(B) of the Exchange Act . The Audit Committee consists of the following Board members:

Paul R. Ades

Andrew L. Breech

Dwight B. Crane

Althea L. Duersten

Frank G. Hubbard

Howard J. Johnson

Jerome H. Miller

Ken Miller

John J. Murphy

Thomas F. Schlafly

b) Not applicable

ITEM 6. SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a) (1) Code of Ethics attached hereto.

Exhibit 99.CODE ETH

(a) (2) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.CERT

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.

Exhibit 99.906CERT

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.

Legg Mason ETF Investment Trust
By:	/s/ Jane Trust
	Jane Trust
	Chief Executive Officer

Date:     December 27, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Jane Trust
	Jane Trust
	Chief Executive Officer

Date:     December 27, 2018

By:	/s/ Richard F. Sennett
	Richard F. Sennett
	Principal Financial Officer

Date:     December 27, 2018