FRANKLIN TEMPLETON ETF TRUST

Annual Report

Franklin Templeton ETF Trust

Investment Manager

Distributor

Investor Services

Franklin Advisory Services, LLC

Franklin Templeton Distributors, Inc.

(800) DIAL BEN^®/342-5236

franklintempleton.com

Transfer Agent

State Street Bank and
Trust Company

1 Heritage Drive
Mail Stop OHD0100

North Quincy, MA 02171

© 2020 Franklin Templeton Investments. All rights reserved.

ETF A 05/20

N-CSR 1 d844088dncsr.htm FRANKLIN TEMPLETON ETF TRUST FRANKLIN TEMPLETON ETF TRUST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-23124

Franklin Templeton ETF Trust

(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant’s telephone number, including area code: 650 312-2000

Date of fiscal year end: 3/31

Date of reporting period: 03/31/20

Item 1.

Reports to Stockholders.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2020

LOGO


Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Equity ETF
Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ International Equity Hedged ETF

Internet Delivery of Fund Reports Unless You Request Paper Copies: Effective January 1, 2021, as permitted by the SEC, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request them from the Fund or your financial intermediary. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you have not signed up for electronic delivery, we would encourage you to join fellow shareholders who have. You may elect to receive shareholder reports and other communications electronically from the Fund by calling (800) 632-2301 or by contacting your financial intermediary.

You may elect to continue to receive paper copies of all your future shareholder reports free of charge by contacting your financial intermediary or, if you invest directly with a Fund, calling (800) 632-2301 to let the Fund know of your request. Your election to receive reports in paper will apply to all funds held in your account.

Franklin Templeton

Successful investing begins with ambition. And achievement only comes when you reach for it. That’s why we continually strive to deliver better outcomes for investors. No matter what your goals are, our deep, global investment expertise allows us to offer solutions that can help.

During our more than 70 years of experience, we’ve managed through all kinds of markets—up, down and those in between. We’re always preparing for what may come next. It’s because of this, combined with our strength as one of the world’s largest asset managers that we’ve earned the trust of millions of investors around the world.



Contents

Annual Report

Economic and Market Overview			2
Franklin LibertyQ Emerging Markets ETF			3
Franklin LibertyQ Global Dividend ETF			10
Franklin LibertyQ Global Equity ETF			17
Franklin LibertyQ International Equity Hedged ETF			24
Financial Highlights and Statements of Investments			31
Financial Statements			70
Notes to Financial Statements			74
Report of Independent Registered Public Accounting Firm			87
Tax Information			88
Board Members and Officers			89
Shareholder Information			92

Visit franklintempleton.com/investor/investments-and-solutions/investment-options/etfs/ for fund updates and documents.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



franklintempleton.com	Not part of the annual report	1

ANNUAL REPORT

Economic and Market Overview

Global developed and emerging market equities, as measured by the MSCI All Country World Index, declined significantly during the 12 months under review. Stocks generally rose during the period’s first nine months, but fell sharply in the first three months of 2020 as countries around the world imposed lockdowns and stay-at-home measures, which impacted many businesses, in an effort to slow the spread of the novel coronavirus (COVID-19). Concerns about global supply chain disruptions, business and personal restrictions, and subdued consumer spending drove many investors to sell equity holdings in favor of perceived safe investments such as government bonds and cash.

In the U.S., economic growth was relatively steady through February 2020, supported by a strong labor market and solid consumer spending growth. However, stay-at-home orders, which included business closures and restrictions, issued by many state and local governments in an effort to mitigate the COVID-19 pandemic severely impacted the U.S. economy beginning in March 2020. The unemployment rate surged from a 50-year low of 3.5% in February 2020 to 4.4% at period-end, as many businesses, particularly those involved in hospitality, retail and travel, began mass layoffs.¹ Furthermore, consumer spending, a major economic growth engine through most of the reporting period, declined substantially in March. As a result, the economy contracted in the first quarter, following an expansion that lasted more than a decade.

The U.S. Federal Reserve (Fed) made efforts to support the U.S. economy both before and during the pandemic. The Fed cut the federal funds target rate three times in 2019, lowering it to a range of 1.50%–1.75%. In March 2020, as the pandemic began to severely impact the economy and financial markets, the Fed implemented two emergency rate cuts, lowering the federal funds target rate to a range of 0.00%–0.25%. In addition, the Fed announced an emergency plan to purchase government, government-backed and corporate bonds to help keep markets functioning during the economic downturn.

In the eurozone, economic growth had slowed considerably by the end of 2019, raising concerns that the region was on the verge of a recession. As the magnitude of the disruption caused by the COVID-19 pandemic became apparent, some analysts forecasted a deep economic contraction in 2020’s first and second quarters. Several European countries were impacted substantially by the pandemic, particularly Italy and Spain. European developed market equities, as measured by the MSCI Europe Index, declined significantly for the period, as gains resulting from easing trade tensions and a Brexit agreement were more than offset by the market downturn in 2020’s first quarter.

Asian developed and emerging market equities, as measured by the MSCI All Country Asia Index, also declined significantly during the 12-month period. Before the pandemic, Asian stocks advanced, aided by easing trade tensions and the eventual U.S.-China phase one trade agreement. However, following the onset of the pandemic, economic activity in Asia slowed dramatically as many businesses temporarily halted operations in heavily affected countries and manufacturing activity plummeted in the region’s major economies, notably China, South Korea and Japan. In addition, export-focused Asian economies were hurt by a contraction in demand from other parts of the world.

Emerging market stocks, as measured by the MSCI Emerging Markets Index, rose for the period’s first nine months, but declined substantially during the rest of the 12-month period in the wake of the COVID-19 pandemic. A sharp decline in prices for oil and other natural resources also hurt emerging market economies reliant on these exports.

The foregoing information reflects our analysis and opinions as of March 31, 2020. The information is not a complete analysis of every aspect of any market, country, industry, security or fund. Statements of fact are from sources considered reliable.

1. Source: U.S. Bureau of Labor Statistics.

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



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Franklin LibertyQ Emerging Markets ETF

This annual report for Franklin LibertyQ Emerging Markets ETF covers the period ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Emerging Markets (EM) Index (the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index includes stocks from emerging market countries that have favorable exposure to four investment-style factors: quality, value, momentum and low volatility, subject to a maximum 1% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI EM Index over the long term by selecting equity securities from the MSCI EM Index that have exposure to these investment-style factors.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -21.22% based on market price and -20.55% based on net asset value (NAV). In comparison, the LibertyQ EM Index-NR posted a -20.29% total return for the same period, while the MSCI EM Index-NR posted a -17.69% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 86.

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

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees

Geographic Composition*

Based on Total Net Assets as of 3/31/20

*Figures are stated as a percentage of total and may not equal 100% or may be negative due to rounding, use of derivatives, unsettled trades or other factors.

and expenses, to the performance of the LibertyQ EM Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. The LibertyQ EM Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI EM Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI EM Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of emerging markets.

2. Source: FactSet.

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

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 32.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Banks		15.4%
Oil, Gas & Consumable Fuels		12.2%
Wireless Telecommunication Services		6.3%
Chemicals		5.7%
Metals & Mining		5.6%
Diversified Telecommunication Services		4.6%
Semiconductors & Semiconductor Equipment		4.0%
IT Services		3.5%
Food & Staples Retailing		3.2%
Construction Materials		2.7%


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Hindustan Unilever Ltd. Household Products, India		1.3%
China Construction Bank Corp., H Banks, China		1.3%
Agricultural Bank of China Ltd., A, H Banks, China		1.2%
Anhui Conch Cement Co. Ltd., A, H Construction Materials, China		1.3%
Industrial & Commercial Bank of China Ltd., H Banks, China		1.2%
Chunghwa Telecom Co. Ltd. Diversified Telecommunication Services, Taiwan		1.2%
SK Hynix Inc. Semiconductors & Semiconductor Equipment, South Korea		1.2%
Bank of China Ltd., A, H Banks, China		1.2%
China Mobile Ltd. Wireless Telecommunication Services, China		1.2%
MMC Norilsk Nickel PJSC Metals & Mining, Russia		1.2%


Top 10 Countries

3/31/20

	% of Total Net Assets
China		23.6%
Taiwan		14.0%
India		11.2%
South Korea		10.0%
Russia		9.6%
Brazil		6.5%
Thailand		4.2%
South Africa		2.8%
Saudi Arabia		2.6%
Indonesia		2.3%

Manager’s Discussion

For the fiscal year ended March 31, 2020, individual holdings that lifted the Fund’s absolute return included Longfor Group Holdings, MMC Norilsk Nickel and Hindustan Unilever. Individual holdings that hindered the Fund’s absolute return included ITC, Itau Unibanco Holding and Itausa.

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, low volatility significantly detracted from the Fund’s relative performance for the reporting period. Value also had a negative effect, while momentum had no significant impact. In contrast, the quality factor was a significant contributor to the Fund’s relative return.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

Thank you for your participation in Franklin LibertyQ Emerging Markets ETF. We look forward to serving your future investment needs.


		Dina Ting, CFA

		Louis Hsu, CFA

		Hailey Harris

		Portfolio Management Team

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2020, the end of the reporting period. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

CFA^® is a trademark owned by CFA Institute.



franklintempleton.com	Annual Report	5

FRANKLIN LIBERTYQ EMERGING MARKETS ETF

Performance Summary as of March 31, 2020

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (6/3/16), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

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

Performance as of 3/31/20¹



	Cumulative Total Return²				Average Annual Total Return²
	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴
1-Year		-20.55%		-21.22%		-20.55%		-21.22%
3-Year		-14.06%		-15.31%		-4.93%		-5.39%
Since Inception (6/1/16)		-1.56%		-2.49%		-0.41%		-0.66%

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged indexes include reinvestment of any income or distributions. They differ from the Fund in composition and do not pay management fees or expenses. One cannot invest directly in an index.

6/1/16–3/31/20

LOGO

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ EMERGING MARKETS ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$1.781471

Total Annual Operating Expenses⁶

0.45%

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

1. Effective December 1, 2017, the Fund adopted a unified fee structure whereby Management has agreed to reimburse the Fund’s acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Fund, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding: (i) payments under the Fund’s Rule 12b-1 plan (if any); (ii) brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments); (iii) taxes; (iv) interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges); (v) litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto); and (vi) other non-routine or extraordinary expenses.

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

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

4. Assumes reinvestment of distributions based on market price.

5. The LibertyQ EM Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI EM Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI EM Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of emerging markets. The NR or Net Dividends Index reflects the deduction of withholding taxes on reinvested dividends.

6. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

See www.franklintempletondatasources.com for additional provider information.



8	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ EMERGING MARKETS ETF

Your Fund’s Expenses

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

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000	$	805.70	$	2.03	$	1,022.75	$	2.28		0.45	%

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

2. Reflects expenses after fee waivers and expense reimbursements. Does not include acquired fund fees and expenses.



franklintempleton.com	Annual Report	9

Franklin LibertyQ Global Dividend ETF

This annual report for Franklin LibertyQ Global Dividend ETF covers the period ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global Dividend Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index includes stocks from developed and emerging market countries with high and persistent dividend income that have favorable exposure to a quality investment-style factor, subject to a maximum 2% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI All Country World Index (ACWI) ex REITs Index over the long term by applying dividend persistence and yield screens and the quality factor selection process.

Performance Overview

For the 12-month period, the Fund posted cumulative total returns of -14.24% based on market price and -14.34% based on net asset value (NAV). In comparison, the LibertyQ Global Dividend Index-NR posted a -14.39% total return for the same period, while the MSCI ACWI ex REITs Index-NR posted a -11.11% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 13.

Geographic Composition*

Based on Total Net Assets as of 3/31/20

*Figures are stated as a percentage of total and may not equal 100% or may be negative due to rounding, use of derivatives, unsettled trades or other factors.

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global Dividend Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. The LibertyQ Global Dividend Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI ACWI ex REITs Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI ex REITs Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding REIT securities.

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 42.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Banks		14.1%
Pharmaceuticals		12.5%
Insurance		6.5%
Semiconductors & Semiconductor Equipment		6.4%
Hotels, Restaurants & Leisure		5.3%
Household Products		5.0%
Tobacco		4.3%
Personal Products		4.3%
Diversified Telecommunication Services		4.2%
Capital Markets		4.1%


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
NTT DOCOMO Inc. Wireless Telecommunication Services, Japan		2.9%
Roche Holding AG Pharmaceuticals, Switzerland		2.8%
Johnson & Johnson Pharmaceuticals, United States		2.5%
Kimberly-Clark Corp. Household Products, United States		2.5%
Intel Corp. Semiconductors & Semiconductor Equipment, United States		2.4%
Novartis AG Pharmaceuticals, Switzerland		2.3%
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		2.3%
The Procter & Gamble Co. Household Products, United States		2.3%
Merck & Co. Inc. Pharmaceuticals, United States		2.3%
Cisco Systems Inc. Communications Equipment, United States		2.2%


Top 10 Countries

3/31/20

	% of Total Net Assets
United States		40.5%
United Kingdom		9.8%
Switzerland		7.5%
Australia		6.8%
Canada		5.9%
Japan		4.7%
Finland		3.6%
Taiwan		2.9%
Germany		2.6%
Qatar		2.4%

Manager’s Discussion

For the fiscal year ended March 31, 2020, individual holdings that lifted the Fund’s absolute return included NTT Docomo, Zurich Insurance Group, and Taiwan Semiconductor Manufacturing Co. Individual holdings that hindered the Fund’s absolute return included Macquarie Group, Itau Unibanco Holding and Westpac Banking.

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, quality significantly benefited the Fund’s relative performance for the reporting period, while low volatility was a more modest contributor and momentum had no significant impact. In contrast, the value factor significantly detracted from the Fund’s relative return.



franklintempleton.com	Annual Report	11

FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

Thank you for your participation in Franklin LibertyQ Global Dividend ETF. We look forward to serving your future investment needs.


		Dina Ting, CFA

		Louis Hsu, CFA

		Hailey Harris Portfolio Management Team



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

Performance Summary as of March 31, 2020

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on

NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

-14.34%

-14.24%

-14.34%

-14.24%

3-Year

-5.21%

-5.68%

-1.77%

-1.93%

Since Inception (6/1/16)

+4.08%

+4.11%

+1.05%

+1.06%

See page 15 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

6/1/16–3/31/20

LOGO

See page 15 for Performance Summary footnotes.



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FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$1.020756

Total Annual Operating Expenses⁶

0.45%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments. Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer’s stock and less available income for the Fund. There can be no assurance that the Fund’s quality factor stock selection process and dividend screens of the Underlying Index will enhance performance. Exposure to investment factors and the use of dividend screens may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transaction costs, expenses and other factors. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. The LibertyQ Global Dividend Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI ACWI ex REITs Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI ex REITs Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding REIT securities. The NR or Net Dividends Index reflects the deduction of withholding taxes on reinvested dividends.

See www.franklintempletondatasources.com for additional provider information.



franklintempleton.com	Annual Report	15

FRANKLIN LIBERTYQ GLOBAL DIVIDEND ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000	$	813.10	$	2.04	$	1,022.75	$	2.28		0.45	%

2. Reflects expenses after fee waivers and expense reimbursements. Does not include acquired fund fees and expenses.



16	Annual Report	franklintempleton.com

Franklin LibertyQ Global Equity ETF

This annual report for Franklin LibertyQ Global Equity ETF covers the period ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global Equity Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index includes stocks from developed and emerging market countries that have favorable exposure to four investment-style factors: quality, value, momentum and low volatility, subject to a maximum 1% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI All Country World Index (ACWI) over the long term by selecting equity securities from the MSCI ACWI that have exposure to these investment-style factors.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -10.83% based on market price and -10.53% based on net asset value (NAV). In comparison, the LibertyQ Global Equity Index-NR posted a -10.48% total return for the same period, while the MSCI ACWI-NR posted a -11.26% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 20.

Geographic Composition*

Based on Total Net Assets as of 3/31/20

*Figures are stated as a percentage of total and may not equal 100% or may be negative due to rounding, use of derivatives, unsettled trades or other factors.

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ Global Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. The LibertyQ Global Equity Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI ACWI using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets.

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 47.



franklintempleton.com	Annual Report	17

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Pharmaceuticals		10.0%
Semiconductors & Semiconductor Equipment		6.6%
Biotechnology		5.0%
Banks		4.5%
IT Services		4.2%
Specialty Retail		4.2%
Diversified Telecommunication Services		4.0%
Oil, Gas & Consumable Fuels		3.6%
Metals & Mining		3.5%
Tobacco		3.0%


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Eli Lilly & Co. Pharmaceuticals, United States		1.3%
Roche Holding AG Pharmaceuticals, Switzerland		1.3%
Microsoft Corp. Software, United States		1.3%
Novo Nordisk AS, B Pharmaceuticals, Denmark		1.3%
Johnson & Johnson Pharmaceuticals, United States		1.2%
Nestle SA Food Products, Switzerland		1.2%
Apple Inc. Technology Hardware, Storage & Peripherals, United States		1.2%
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		1.1%
Intel Corp. Semiconductors & Semiconductor Equipment, United States		1.1%
Amgen Inc. Biotechnology, United States		1.1%


Top 10 Countries

3/31/20

	% of Total Net Assets
United States		53.5%
United Kingdom		6.6%
Australia		5.9%
Japan		5.4%
China		3.8%
Switzerland		3.0%
Canada		2.5%
South Korea		2.4%
Taiwan		2.4%
Russia		1.8%

Manager’s Discussion

For the fiscal year ended March 31, 2020, individual holdings that lifted the Fund’s absolute returns included Microsoft, Apple and Roche Holding. Individual holdings that hindered the Fund’s absolute return included Simon Property Group, iShares MSCI India ETF and Royal Dutch Shell.

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, quality significantly benefited the Fund’s relative performance for the reporting period. Momentum and low volatility also contributed. In contrast, the value factor significantly detracted from the Fund’s relative return.



18	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

Thank you for your participation in Franklin LibertyQ Global Equity ETF. We look forward to serving your future investment needs.


		Dina Ting, CFA

		Louis Hsu, CFA

		Hailey Harris

		Portfolio Management Team



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

Performance Summary as of March 31, 2020

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

-10.53%

-10.83%

-10.53%

-10.83%

3-Year

+7.45%

+6.54%

+2.42%

+2.13%

Since Inception (6/1/16)

+18.15%

+17.72%

+4.45%

+4.35%

See page 22 for Performance Summary footnotes.



20	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

6/1/16–3/31/20

LOGO

See page 22 for Performance Summary footnotes.



franklintempleton.com	Annual Report	21

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$1.030695

Total Annual Operating Expenses⁶

0.35%

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. The LibertyQ Global Equity Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI ACWI Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI ACWI Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. The NR or Net Dividends Index reflects the deduction of withholding taxes on reinvested dividends.

See www.franklintempletondatasources.com for additional provider information.



22	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ GLOBAL EQUITY ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000	$	862.80	$	1.58	$	1,023.30	$	1.72		0.35	%

2. Reflects expenses after fee waivers and expense reimbursements. Does not include acquired fund fees and expenses.



franklintempleton.com	Annual Report	23

Franklin LibertyQ International Equity Hedged ETF

This annual report for Franklin LibertyQ International Equity Hedged ETF covers the period ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ International Equity Hedged Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Underlying Index includes stocks from developed market countries in Europe, Australasia and the Far East (EAFE) that have favorable exposure to four investment-style factors: quality, value, momentum and low volatility, subject to a maximum 2% per company weighting. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI EAFE Index over the long term by selecting equity securities from the MSCI EAFE Index that have exposure to these investment-style factors. The Underlying Index incorporates a hedge against non-U.S. currency fluctuations by reflecting the impact of rolling monthly currency forward contracts on the currencies represented in the Underlying Index. In order to replicate the hedge impact incorporated in the calculation of the Underlying Index, the Fund intends to enter into monthly foreign currency forward contracts designed to offset the Fund’s exposure to the component currencies of the Underlying Index.

What is a currency forward contract?

A currency forward contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency in exchange for another currency at a specific exchange rate on a future date. Currency forward contracts are privately traded in the interbank market, not on a centralized exchange.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -7.90% based on market price and -7.12% based on

Geographic Composition*

Based on Total Net Assets as of 3/31/20

LOGO

* Figures are stated as a percentage of total and may not equal 100% or may be negative due to rounding, use of derivatives, unsettled trades or other factors.

net asset value (NAV). In comparison, LibertyQ International Equity Hedged Index-NR posted a -6.76% total return for the same period, while the MSCI EAFE 100% Hedged to USD Index-NR posted a -10.28% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 27.

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ International Equity Hedged Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to

1. The LibertyQ International Equity Hedged Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI EAFE Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI EAFE Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada.

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 63.



24	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Pharmaceuticals		12.0%
Metals & Mining		7.7%
Banks		7.2%
Personal Products		5.3%
Wireless Telecommunication Services		4.6%
Diversified Telecommunication Services		4.6%
Electric Utilities		4.3%
Automobiles		3.6%
Health Care Equipment & Supplies		2.9%
Tobacco		2.9%


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Roche Holding AG Pharmaceuticals, Switzerland		2.6%
Novo Nordisk AS, B Pharmaceuticals, Denmark		2.6%
CSL Ltd. Biotechnology, Australia		2.4%
Sanofi Pharmaceuticals, France		2.4%
KDDI Corp. Wireless Telecommunication Services, Japan		2.2%
Rio Tinto PLC Metals & Mining, Australia		2.1%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		2.1%
Toyota Motor Corp. Automobiles, Japan		2.1%
Unilever NV Personal Products, United Kingdom		2.0%
Unilever PLC Personal Products, United Kingdom		2.0%


Top 10 Countries

3/31/20

	% of Total Net Assets
Japan		24.3%
United Kingdom		23.0%
Australia		19.4%
France		4.6%
Switzerland		4.6%
Denmark		3.9%
Spain		3.8%
Italy		3.2%
Sweden		1.7%
Germany		1.7%

replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

Manager’s Discussion

For the fiscal year ended March 31, 2020, individual holdings that lifted the Fund’s absolute returns included NTT Docomo, KDDI and CSL. Individual holdings that hindered the Fund’s absolute returns included Westpac, Royal Dutch Shell and BHP.

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, quality significantly benefited the Fund’s relative performance during the period, while low volatility and momentum contributed more modestly. In contrast, the value factor detracted from the Fund’s relative return.



franklintempleton.com	Annual Report	25

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

Thank you for your participation in Franklin LibertyQ International Equity Hedged ETF. We look forward to serving your future investment needs.


		Dina Ting, CFA

		Louis Hsu, CFA

		Hailey Harris

		Portfolio Management Team



26	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

Performance Summary as of March 31, 2020

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

-7.12%

-7.90%

-7.12%

-7.90%

3-Year

+3.37%

+2.19%

+1.11%

+0.72%

Since Inception (6/1/16)

+11.94%

+11.63%

+2.99%

+2.91%

See page 29 for Performance Summary footnotes.



franklintempleton.com	Annual Report	27

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

6/1/16–3/31/20

LOGO

See page 29 for Performance Summary footnotes.



28	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)



Net Investment Income	Long-Term Capital Gains	Total
$0.191713	$0.243700	$0.435413

Total Annual Operating Expenses⁶

0.40%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks of adverse developments in such areas of focus than a fund that invests in a wider variety of countries, regions, industries, sectors or investments. The Fund will attempt to hedge the currency exposure of non-U.S. dollar denominated securities held in its portfolio by investing in foreign currency forward contracts. Foreign currency forward contracts do not eliminate movements in the value of non-U.S. currencies and securities but rather allow the Fund to establish a fixed rate of exchange for a future point in time. Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the Fund to participate in losses (as well as gains) that significantly exceed the Fund’s initial investment. Currency management strategies could result in losses to the Fund if currencies do not perform as the investment manager expects. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transaction costs, expenses and other factors. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. The LibertyQ International Equity Hedged Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). It is based on the MSCI EAFE Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI EAFE Index is a free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The NR or Net Dividends Index reflects the deduction of withholding taxes on reinvested dividends.

See www.franklintempletondatasources.com for additional provider information.



franklintempleton.com	Annual Report	29

FRANKLIN LIBERTYQ INTERNATIONAL EQUITY HEDGED ETF

Your Fund’s Expenses

Actual Fund Expenses

Hypothetical Example for Comparison with Other Funds


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000	$	875.30	$	1.88	$	1,023.00	$	2.02		0.40	%

2. Reflects expenses after fee waivers and expense reimbursements. Does not include acquired fund fees and expenses.



30	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ Emerging Markets ETF



	Year Ended March 31,

	2020			2019			2018			2017^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	29.70		$	33.41		$	29.29		$	25.66


Income from investment operations^b:

Net investment income^c		1.24			1.14			0.83			0.47

Net realized and unrealized gains (losses)		(6.96	)		(3.76	)		4.15			3.25


Total from investment operations		(5.72	)		(2.62	)		4.98			3.72


Less distributions from net investment income		(1.78	)		(1.09	)		(0.86	)		(0.09	)


Net asset value, end of year	$	22.20		$	29.70		$	33.41		$	29.29


Total return^d		(20.55)%			(7.70)%			17.20%			14.55%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.49%			0.55%			0.69%	^f		0.75%

Expenses net of waiver and payments by affiliates		0.49%			0.55%			0.54%	^f		0.55%

Net investment income		4.26%			3.75%			2.61%			2.09%

Supplemental data

Net assets, end of year (000’s)		$57,711			$344,484			$400,908			$328,086

Portfolio turnover rate^g		44.11%^h			52.42%			32.87%			31.66%

^aFor the period June 1, 2016 (commencement of operations) to March 31, 2017.

^bThe amount shown for a share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the timing of sales and repurchases of Creation Unit Fund shares in relation to income earned and/or fluctuating fair value of the investments of the Fund.

^cBased on average daily shares outstanding.

^dTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate includes portfolio transaction that are executed as result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”)

^hPortfolio turnover rate excluding cash creation for the year end March 31, 2020 was as follows: 41.78%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin LibertyQ Emerging Markets ETF



		Industry		Shares		Value
	Common Stocks 95.8%
	Argentina 0.1%
	Banco Macro SA, ADR		Banks		1,841	$	31,260
	Grupo Financiero Galicia SA, ADR		Banks		3,159		22,271


							53,531

	Brazil 4.5%
	Ambev SA		Beverages		146,900		337,610
	BB Seguridade Participacoes SA		Insurance		72,800		348,799
	Cielo SA		IT Services		93,600		80,126
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities		23,400		176,450
	Cosan SA		Oil, Gas & Consumable Fuels		7,800		80,848
	Engie Brasil Energia SA		Independent Power and Renewable Electricity Producers		16,900		126,817
a,b	Hapvida Participacoes e Investimentos SA, 144A, Reg S		Health Care Providers & Services		7,800		63,764
	Hypera SA		Pharmaceuticals		19,500		107,490
	IRB Brasil Resseguros SA		Insurance		41,629		77,694
	Lojas Renner SA		Multiline Retail		38,760		250,797
	Magazine Luiza SA		Multiline Retail		22,069		165,903
	Petrobras Distribuidora SA		Specialty Retail		39,000		116,626
	Porto Seguro SA		Insurance		3,900		33,777
	Tim Participacoes SA		Wireless Telecommunication Services		44,200		106,013
	Vale SA		Metals & Mining		65,000		541,646


							2,614,360

	Chile 0.8%
	Aguas Andinas SA, A		Water Utilities		187,192		55,346
	Colbun SA		Independent Power and Renewable Electricity Producers		368,082		40,163
	Compania Cervecerias Unidas SA		Beverages		9,899		68,176
	Enel Americas SA		Electric Utilities		1,158,963		142,233
	Enel Chile SA		Electric Utilities		1,926,320		131,085


							437,003

	China 23.6%
	Agricultural Bank of China Ltd., A		Banks		137,300		65,278
	Agricultural Bank of China Ltd., H		Banks		1,638,000		657,237
	Anhui Conch Cement Co. Ltd., A		Construction Materials		13,000		101,055
	Anhui Conch Cement Co. Ltd., H		Construction Materials		89,150		619,377
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		76,910		565,099
	Autobio Diagnostics Co. Ltd., A		Health Care Equipment & Supplies		682		11,208
	Bank of Beijing Co. Ltd., A		Banks		47,100		32,095
	Bank of China Ltd., A		Banks		39,000		19,147
	Bank of China Ltd., H		Banks		1,766,000		676,698
	Bank of Communications Co. Ltd., A		Banks		100,100		72,870
	Bank of Communications Co. Ltd., H		Banks		585,000		358,507
	Bank of Hangzhou Co. Ltd.		Banks		11,700		12,710
	Bank of Nanjing Co. Ltd., A		Banks		15,600		15,956
	Baoshan Iron & Steel Co. Ltd., A		Metals & Mining		44,800		30,780
	China Cinda Asset Management Co. Ltd., H		Capital Markets		523,000		99,190
	China CITIC Bank Corp. Ltd., A		Banks		14,900		10,889
	China CITIC Bank Corp. Ltd., H		Banks		715,000		353,307
	China Conch Venture Holdings Ltd.		Machinery		104,000		464,256
	China Construction Bank Corp., H		Banks		923,000		754,986
	China Everbright Bank Co. Ltd., A		Banks		90,600		46,142
	China Everbright Bank Co. Ltd., H		Banks		224,000		85,833
	China Lesso Group Holdings Ltd.		Building Products		39,000		51,424
	China Medical System Holdings Ltd.		Pharmaceuticals		91,000		98,503
	China Minsheng Banking Corp. Ltd., A		Banks		84,300		67,909



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	China Minsheng Banking Corp. Ltd., H		Banks		482,500	$	358,565
	China Mobile Ltd.		Wireless Telecommunication Services		93,530		695,662
	China Petroleum & Chemical Corp., A		Oil, Gas & Consumable Fuels		52,000		32,499
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		1,222,000		602,258
	China Resources Cement Holdings Ltd.		Construction Materials		145,000		173,044
	China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		11,700		26,806
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		259,106		493,414
	China South Publishing & Media Group Co. Ltd., A		Media		3,900		5,849
	China Telecom Corp. Ltd., H		Diversified Telecommunication Services		624,000		189,191
	China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		49,700		121,231
	China Zhongwang Holdings Ltd.		Metals & Mining		72,800		19,161
	Chinese Universe Publishing and Media Group Co. Ltd., A		Media		3,900		6,625
	Chongqing Brewery Co. Ltd., A		Beverages		1,300		8,347
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks		117,000		48,002
	CNOOC Ltd.		Oil, Gas & Consumable Fuels		478,260		501,652
	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		65,000		264,163
	Dali Foods Group Co. Ltd.		Food Products		151,000		105,201
	Daqin Railway Co. Ltd., A		Road & Rail		45,100		43,266
	Dongfeng Motor Group Co. Ltd., H		Automobiles		234,000		154,271
c	Fangda Carbon New Material Co. Ltd.		Electrical Equipment		6,520		8,269
	Focus Media Information Technology Co. Ltd.		Media		36,400		22,698
	Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		6,500		114,783
	Fujian Sunner Development Co. Ltd.		Food Products		2,600		8,675
	Fuyao Glass Industry Group Co. Ltd., A		Auto Components		5,200		14,071
	G-bits Network Technology Xiamen Co. Ltd., A		Entertainment		194		11,232
	Gree Electric Appliances Inc. of Zhuhai, A		Household Durables		5,200		38,295
	Guangdong Investment Ltd.		Water Utilities		134,500		259,251
	Guangzhou Automobile Group Co. Ltd., H		Automobiles		223,000		224,125
	Hangzhou Robam Appliances Co. Ltd., A		Household Durables		2,600		10,432
	Hefei Meiya Optoelectronic Technology, Inc.		Machinery		1,300		6,918
	Heilan Home Co. Ltd., A – SHSC		Specialty Retail		5,800		5,180
	Heilongjiang Agriculture Co. Ltd., A		Food Products		3,900		9,491
	Henan Shuanghui Investment & Development Co. Ltd.		Food Products		9,100		50,454
	Hualan Biological Engineering Inc.		Biotechnology		2,600		17,577
	Huaxin Cement Co. Ltd., A		Construction Materials		3,900		12,803
	Huayu Automotive Systems Co. Ltd.		Auto Components		7,800		23,703
	Hubei Jumpcan Pharmaceutical Co. Ltd., A		Pharmaceuticals		1,300		4,020
	Industrial & Commercial Bank of China Ltd., H		Banks		1,027,000		703,579
c	Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., A		Chemicals		15,600		5,414
	Jafron Biomedical Co. Ltd., A		Health Care Equipment & Supplies		1,300		17,363
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		91,000		101,556
	Kweichow Moutai Co. Ltd., A		Beverages		3,500		548,588



franklintempleton.com	Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		104,000	$	63,064
	Lomon Billions Group Co. Ltd.		Chemicals		3,900		8,215
a,b	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		130,000		633,152
	Luxi Chemical Group Co. Ltd.		Chemicals		2,600		2,993
	Luzhou Laojiao Co. Ltd., A		Beverages		3,900		40,523
	Maanshan Iron & Steel Co. Ltd., A		Metals & Mining		20,800		7,395
	Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		104,000		32,605
	Nanjing Iron & Steel Co. Ltd., A		Metals & Mining		11,700		5,183
	Nexteer Automotive Group Ltd.		Auto Components		39,000		19,573
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		117,000		106,722
	Ovctek China, Inc., A		Health Care Equipment & Supplies		1,300		10,131
	RiseSun Real Estate Development Co. Ltd.		Real Estate Management & Development		10,400		11,371
	SAIC Motor Corp. Ltd.		Automobiles		15,600		45,117
	Sansteel Minguang Co. Ltd.		Metals & Mining		6,500		7,309
	Sany Heavy Industry Co. Ltd., A		Machinery		15,600		38,075
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		23,400		24,693
	Shandong Buchang Pharmaceuticals Co. Ltd., A		Pharmaceuticals		2,600		7,384
	Shandong Hualu Hengsheng Chemical Co. Ltd., A		Chemicals		3,900		8,638
	Shanghai International Airport Co. Ltd., A		Transportation Infrastructure		2,600		22,306
	Shanghai M&G Stationery, Inc., A		Commercial Services & Supplies		1,300		8,492
c	Shanying International Holding Co. Ltd., A		Paper & Forest Products		9,100		3,928
	Shenzhen Expressway Co. Ltd., H		Transportation Infrastructure		26,000		26,500
	Shenzhen Goodix Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		900		33,112
	Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A		Health Care Equipment & Supplies		1,031		38,065
	Shenzhen Salubris Pharmaceuticals Co. Ltd.		Pharmaceuticals		2,600		6,507
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		46,800		497,532
	Shui On Land Ltd.		Real Estate Management & Development		133,000		22,307
	Sichuan Chuantou Energy Co. Ltd., A		Independent Power and Renewable Electricity Producers		7,800		10,124
	Sinopec Shanghai Petrochemical Co. Ltd., A		Chemicals		15,600		8,561
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		286,000		70,846
	Sinotrans Ltd., H		Air Freight & Logistics		65,000		16,017
	Toly Bread Co. Ltd., A		Food Products		1,300		9,075
c	Topchoice Medical Corp., A		Health Care Providers & Services		820		12,469
	Wanhua Chemical Group Co. Ltd., A		Chemicals		6,500		37,827
	Weichai Power Co. Ltd., A		Machinery		13,300		22,441
	Weifu High-Technology Group Co. Ltd., A		Auto Components		2,600		6,969
	Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd.		Entertainment		6,500		29,950
	Wuliangye Yibin Co. Ltd.		Beverages		6,500		105,640
	Xinyu Iron & Steel Co. Ltd., A		Metals & Mining		7,800		4,479
	Yanzhou Coal Mining Co. Ltd., H		Oil, Gas & Consumable Fuels		52,000		40,790
	Yealink Network Technology Corp. Ltd.		Communications Equipment		1,300		14,960
	Yuexiu Property Co. Ltd.		Real Estate Management & Development		234,000		42,266
	Yunda Holding Co. Ltd.		Air Freight & Logistics		2,600		11,301



34	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Yuzhou Properties Co. Ltd.		Real Estate Management & Development		78,000	$	33,209
	Zhejiang Juhua Co. Ltd., A		Chemicals		5,200		4,974
	Zhejiang NHU Co. Ltd.		Pharmaceuticals		3,900		15,021
	Zhejiang Semir Garment Co. Ltd.		Textiles, Apparel & Luxury Goods		3,900		3,917
	Zhejiang Supor Co. Ltd.		Household Durables		1,300		12,679
	Zhejiang Weixing New Building Materials Co. Ltd.		Building Products		3,900		6,085
	Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., A		Pharmaceuticals		1,300		8,178


							13,596,810

	Colombia 0.2%
	Ecopetrol SA		Oil, Gas & Consumable Fuels		230,980		108,091

	Czech Republic 0.1%
	Moneta Money Bank AS		Banks		37,529		77,257

	Egypt 0.6%
	Commercial International Bank Egypt SAE		Banks		64,559		241,050
	Eastern Co. SAE		Tobacco		84,633		66,405
	ElSewedy Electric Co.		Electrical Equipment		63,537		31,648


							339,103

	Greece 0.3%
	JUMBO SA		Specialty Retail		4,941		66,793
	Motor Oil (Hellas) Corinth Refineries SA		Oil, Gas & Consumable Fuels		3,356		41,427
	OPAP SA		Hotels, Restaurants & Leisure		6,457		49,098


							157,318

	Hong Kong 0.2%
	Kingboard Laminates Holdings Ltd.		Chemicals		73,000		67,529
	The Wharf Holdings Ltd.		Real Estate Management & Development		39,000		69,135


							136,664

	Hungary 0.3%
	MOL Hungarian Oil and Gas PLC		Oil, Gas & Consumable Fuels		30,355		178,214

	India 11.2%
	Asian Paints Ltd.		Chemicals		8,783		193,478
c	Avenue Supermarts Ltd.		Food & Staples Retailing		3,727		107,768
	Bajaj Auto Ltd.		Automobiles		5,946		158,952
	Berger Paints India Ltd.		Chemicals		7,203		47,411
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		51,987		217,771
	Bharti Infratel Ltd.		Diversified Telecommunication Services		19,418		41,069
	Britannia Industries Ltd.		Food Products		3,471		123,373
	Coal India Ltd.		Oil, Gas & Consumable Fuels		99,269		183,773
	Colgate-Palmolive India Ltd.		Personal Products		2,911		48,203
	Dabur India Ltd.		Personal Products		36,853		219,239
	Eicher Motors Ltd.		Automobiles		975		168,781
	GAIL India Ltd.		Gas Utilities		76,096		77,000
	HCL Technologies Ltd.		IT Services		81,029		467,422
	HDFC Asset Management Co. Ltd.		Capital Markets		1,894		52,896
c	HDFC Life Insurance Co. Ltd.		Insurance		16,224		94,651
	Hero Motocorp Ltd.		Automobiles		5,668		119,610
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		54,052		135,824
	Hindustan Unilever Ltd.		Household Products		25,427		772,545
a,b	ICICI Lombard General Insurance Co. Ltd., 144A, Reg S		Insurance		5,672		81,097
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels		133,270		143,838



franklintempleton.com	Annual Report	35

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



	Industry			Shares		Value
Common Stocks (continued)
India (continued)
Infosys Ltd.		IT Services			74,529	$	631,984
ITC Ltd.		Tobacco			207,300		470,493
Marico Ltd.		Personal Products			33,429		121,452
Nestle India Ltd.		Food Products			1,820		392,156
Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels			135,858		122,656
Page Industries Ltd.		Textiles, Apparel & Luxury Goods			351		78,706
Petronet LNG Ltd.		Oil, Gas & Consumable Fuels			31,221		82,416
Pidilite Industries Ltd.		Chemicals			7,730		138,596
REC Ltd.		Diversified Financial Services			31,497		36,951
SBI Life Insurance Co. Ltd.		Insurance			11,625		98,500
Tata Consultancy Services Ltd.		IT Services			23,934		577,728
Tech Mahindra Ltd.		IT Services			32,091		239,883


							6,446,222

Indonesia 2.3%
Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels			1,004,700		60,984
Bukit Asam Tbk PT		Oil, Gas & Consumable Fuels			278,200		37,184
Charoen Pokphand Indonesia Tbk PT		Food Products			324,600		98,315
Gudang Garam Tbk PT		Tobacco			23,400		58,966
Hanjaya Mandala Sampoerna Tbk PT		Tobacco			911,900		79,673
Indofood CBP Sukses Makmur Tbk PT		Food Products			116,000		72,722
Perusahaan Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B		Diversified Telecommunication Services			2,541,800		492,464
Unilever Indonesia Tbk PT		Household Products			697,300		309,959
United Tractors Tbk PT		Oil, Gas & Consumable Fuels			130,000		134,703


							1,344,970

Malaysia 1.8%
AirAsia Group Bhd		Airlines			111,400		20,372
Digi.com Bhd.		Wireless Telecommunication Services			269,100		270,969
Hartalega Holdings Bhd.		Health Care Equipment & Supplies			98,100		156,233
Nestle (Malaysia) Bhd.		Food Products			6,500		205,683
Petronas Chemicals Group Bhd.		Chemicals			185,700		217,080
Petronas Gas Bhd.		Gas Utilities			28,600		101,953
Westports Holdings Bhd.		Transportation Infrastructure			64,300		50,309


							1,022,599

Mexico 2.0%
Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		167,007		132,343
Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure			26,728		145,140
Kimberly-Clark de Mexico SAB de CV, A		Household Products			111,631		170,926
Megacable Holdings SAB de CV		Media			18,586		51,402
Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure			10,493		71,204
Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			257,300		611,463


							1,182,478

Pakistan 0.1%
MCB Bank Ltd.		Banks			28,900		25,973
Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels			61,100		28,321


							54,294

Philippines 0.3%
Globe Telecom Inc.		Wireless Telecommunication Services			2,405		91,263
Manila Electric Co.		Electric Utilities			16,900		74,764


							166,027



36	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Poland 0.4%
	Powszechny Zaklad Ubezpieczen SA		Insurance		27,197	$	205,148

	Qatar 1.5%
	Barwa Real Estate Co.		Real Estate Management & Development		109,239		90,007
	Industries Qatar QSC		Industrial Conglomerates		136,500		249,306
	Masraf Al Rayan QSC		Banks		159,750		160,584
	Mesaieed Petrochemical Holding Co.		Chemicals		222,981		89,413
	Qatar Electricity & Water Co. QSC		Multi-Utilities		35,909		134,425
	Qatar Fuel QSC		Oil, Gas & Consumable Fuels		25,795		115,975
	Qatar International Islamic Bank QSC		Banks		23,334		46,527


							886,237

	Russia 9.0%
	Alrosa PJSC		Metals & Mining		287,185		237,404
	Gazprom PJSC		Oil, Gas & Consumable Fuels		188,486		437,624
	Inter RAO UES PJSC		Electric Utilities		3,387,454		213,413
	LUKOIL PJSC		Oil, Gas & Consumable Fuels		7,704		464,900
	Magnitogorsk Iron & Steel Works		Metals & Mining		185,836		91,570
	MMC Norilsk Nickel PJSC		Metals & Mining		2,678		668,971
	Mobile TeleSystems PJSC, ADR		Wireless Telecommunication Services		46,555		353,818
	Moscow Exchange MICEX		Capital Markets		62,984		78,394
	NLMK PJSC		Metals & Mining		119,785		190,101
a	Novatek PJSC, GDR, Reg S		Oil, Gas & Consumable Fuels		3,534		407,470
a	PhosAgro PJSC, GDR, Reg S		Chemicals		7,240		74,717
	Polymetal International PLC		Metals & Mining		13,414		229,448
	Polyus Gold OJSC		Metals & Mining		2,122		288,899
	Rosneft PJSC		Oil, Gas & Consumable Fuels		88,111		354,491
	Severstal PJSC		Metals & Mining		24,758		274,597
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		530,337		230,098
	Tatneft PAO		Oil, Gas & Consumable Fuels		60,469		427,666
a	X5 Retail Group NV, GDR, Reg S		Food & Staples Retailing		6,121		163,848


							5,187,429

	Saudi Arabia 2.6%
	Advanced Petrochemical Co.		Chemicals		4,878		57,778
	Al-Rajhi Bank		Banks		42,439		607,724
	Bupa Arabia for Cooperative Insurance Co.		Insurance		1,109		26,980
	Jarir Marketing Co.		Specialty Retail		3,159		107,458
	Saudi Airlines Catering Co.		Hotels, Restaurants & Leisure		2,106		42,322
	Saudi Arabian Fertilizer Co.		Chemicals		7,626		125,848
	Saudi Cement Co.		Construction Materials		2,957		38,566
	Saudi Telecom Co.		Diversified Telecommunication Services		16,795		391,153
	Yanbu National Petrochemical Co.		Chemicals		9,599		106,286


							1,504,115

	South Africa 2.8%
	AngloGold Ashanti Ltd.		Metals & Mining		13,054		233,240
	Capitec Bank Holdings Ltd.		Banks		2,177		107,265
	Clicks Group Ltd.		Food & Staples Retailing		17,108		246,850
	Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels		22,070		122,324
	Kumba Iron Ore Ltd.		Metals & Mining		6,472		101,487
	Mr. Price Group Ltd.		Specialty Retail		22,801		145,640
	Pick ‘N Pay Stores Ltd.		Food & Staples Retailing		11,037		37,449
	RMB Holdings Ltd.		Diversified Financial Services		49,685		137,538
	Telkom SA SOC Ltd.		Diversified Telecommunication Services		20,654		23,742
	Tiger Brands Ltd.		Food Products		10,927		113,186
	Vodacom Group Ltd.		Wireless Telecommunication Services		47,628		312,035
	Woolworths Holdings Ltd.		Multiline Retail		29,636		45,798


							1,626,554



franklintempleton.com	Annual Report	37

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	South Korea 9.9%
	BGF Retail Co. Ltd.		Food & Staples Retailing		390	$	42,289
	BNK Financial Group Inc.		Banks		21,017		76,568
	Coway Co. Ltd.		Household Durables		4,472		212,331
	Daelim Industrial Co. Ltd.		Construction & Engineering		1,378		83,426
	DB Insurance Co. Ltd.		Insurance		2,166		61,830
	Hana Financial Group Inc.		Banks		23,670		449,154
	Hanwha Life Insurance Co. Ltd.		Insurance		19,364		22,110
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		4,355		81,029
	Industrial Bank of Korea		Banks		21,293		131,185
	Kangwon Land Inc.		Hotels, Restaurants & Leisure		7,709		125,069
	KB Financial Group Inc.		Banks		19,576		555,593
	Kia Motors Corp.		Automobiles		11,539		246,448
	Korea Zinc Co. Ltd.		Metals & Mining		390		114,051
	KT&G Corp.		Tobacco		8,603		527,904
	Kumho Petrochemical Co. Ltd.		Chemicals		900		47,907
	Lotte Chemical Corp.		Chemicals		1,246		197,542
	NCsoft Corp.		Entertainment		910		487,387
c	Pearl Abyss Corp.		Entertainment		331		48,670
	S-1 Corp.		Commercial Services & Supplies		1,163		76,428
	Samsung Card Co. Ltd.		Consumer Finance		1,365		33,527
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		14,105		553,262
	Shinhan Financial Group Co. Ltd.		Banks		20,638		484,862
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		10,247		701,175
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		1,561		226,966
	Woori Financial Group Inc.		Banks		17,463		109,740


							5,696,453

	Taiwan 14.0%
	Accton Technology Corp.		Communications Equipment		13,000		70,069
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		16,920		139,594
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		44,680		288,840
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		43,760		109,684
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		197,380		701,630
	Eclat Textile Co. Ltd.		Textiles, Apparel & Luxury Goods		9,320		74,119
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		117,000		244,899
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		27,270		117,226
	Formosa Chemicals & Fibre Corp.		Chemicals		221,000		489,625
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		91,000		244,942
	Formosa Plastics Corp.		Chemicals		231,480		574,844
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		11,900		134,183
	Highwealth Construction Corp.		Real Estate Management & Development		39,000		52,230
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		4,800		607,906
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		104,000		142,030
	Nan Ya Plastics Corp.		Chemicals		314,210		568,334
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		107,740		191,315
	Nien Made Enterprise Co. Ltd.		Household Durables		13,000		77,592
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		44,410		252,584
	Phison Electronics Corp.		Semiconductors & Semiconductor Equipment		11,430		93,733
	Powertech Technology Inc.		Semiconductors & Semiconductor Equipment		39,000		110,778
	President Chain Store Corp.		Food & Staples Retailing		42,440		397,154
	Ruentex Development Co. Ltd.		Real Estate Management & Development		13,000		16,421
	Ruentex Industries Ltd.		Textiles, Apparel & Luxury Goods		13,000		29,833
	Standard Foods Corp.		Food Products		26,000		52,445
	Taiwan Business Bank		Banks		221,000		70,813
	Taiwan Cement Corp.		Construction Materials		156,000		203,760
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		118,870		392,676



38	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Taiwan (continued)
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		73,730	$	668,023
	The Shanghai Commercial & Savings Bank Ltd.		Banks		142,999		186,069
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		65,000		127,457
	Walsin Technology Corp.		Electronic Equipment, Instruments & Components		20,980		111,694
	Yageo Corp.		Electronic Equipment, Instruments & Components		22,780		206,772
	Yuanta Financial Holding Co. Ltd.		Diversified Financial Services		442,000		227,274
	Zhen Ding Technology Holding Ltd.		Electronic Equipment, Instruments & Components		26,000		79,956


							8,056,504

	Thailand 4.2%
	Advanced Info Service PCL		Wireless Telecommunication Services		96,200		589,204
	Airports of Thailand Public Co. Ltd., NVDR		Transportation Infrastructure		128,700		199,026
	Bumrungrad Hospital PCL		Health Care Providers & Services		28,600		99,349
	Electricity Generating PCL		Independent Power and Renewable Electricity Producers		13,000		91,506
	Home Product Center PCL, NVDR		Specialty Retail		180,300		60,984
	Intouch Holdings PCL		Wireless Telecommunication Services		141,700		215,891
	Land and Houses PCL, NVDR		Real Estate Management & Development		340,600		69,537
	Osotspa PCL, NVDR		Beverages		26,000		28,323
	PTT Global Chemical PCL, NVDR		Chemicals		153,400		142,567
	PTT PCL		Oil, Gas & Consumable Fuels		494,500		463,347
	Ratch Group PCL, NVDR		Independent Power and Renewable Electricity Producers		35,400		61,485
	The Siam Cement PCL		Construction Materials		42,900		423,542


							2,444,761

	Turkey 1.4%
	BIM Birlesik Magazalar AS		Food & Staples Retailing		34,543		262,863
	Eregli Demir ve Celik Fabrikalari AS		Metals & Mining		136,608		155,673
	Ford Otomotiv Sanayi AS		Automobiles		6,546		48,949
	TAV Havalimanlari Holding AS		Transportation Infrastructure		14,889		37,413
c	Tupras-Turkiye Petrol Rafinerileri AS		Oil, Gas & Consumable Fuels		10,628		121,758
	Turkcell Iletisim Hizmetleri AS		Wireless Telecommunication Services		69,821		130,526
c	Turkiye Is Bankasi AS, C		Banks		108,107		77,427


							834,609

	United Arab Emirates 1.6%
	Abu Dhabi Commercial Bank PJSC		Banks		742		794
	Abu Dhabi Commercial Bank PJSC		Banks		120,640		152,067
	Aldar Properties PJSC		Real Estate Management & Development		264,414		110,858
	Dubai Islamic Bank PJSC		Banks		119,885		117,498
	Emaar Malls Group PJSC		Real Estate Management & Development		83,856		24,427
	Emirates Telecommunications Group Co. PJSC		Diversified Telecommunication Services		128,242		489,485


							895,129

	Total Common Stocks (Cost $66,116,893)						55,251,880

	Preferred Stocks 2.7%
	Brazil 1.9%
d	Itau Unibanco Holding SA, 8.709%, pfd.		Banks		86,700		385,976
d	Itausa-Investimentos Itau SA, 9.918%, pfd.		Banks		224,400		379,437
d	Telefonica Brasil SA, 6.951%, pfd.		Diversified Telecommunication Services		35,973		342,973


							1,108,386



franklintempleton.com	Annual Report	39

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Emerging Markets ETF (continued)

Industry

Shares

Value

Preferred Stocks (continued)

Colombia 0.0%^†

Grupo Aval Acciones y Valores SA, 6.689%, pfd.

Banks

116,236

25,680

Russia 0.6%

Surgutneftegas PJSC, 20.266%, pfd.

Oil, Gas & Consumable Fuels

569,107

273,869

Transneft PJSC, 7.246%, pfd.

Oil, Gas & Consumable Fuels

73,749

347,618

South Korea 0.2%

Samsung Electronics Co. Ltd., 2.651%, pfd.

Technology Hardware, Storage & Peripherals

2,623

86,403

Total Preferred Stocks (Cost $2,303,249)

1,568,087

Total Investments
(Cost $68,420,142) 98.5%

56,819,967

Other Assets, less Liabilities 1.5%

890,761

Net Assets 100.0%

57,710,728

^†Rounds to less than 0.1% of net assets.

^aSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the aggregate value of these securities was $1,424,048, representing 2.5% of net assets.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the aggregate value of these securities was $778,013, representing 1.3% of net assets.

^cNon-income producing.

^dVariable rate security. The rate shown represents the yield at period end.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Index Contracts

MSCI Emerging Markets Index

Long

674,320

6/19/20

50,836

*As of period end.

See Abbreviations on page 86.



40	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ Global Dividend ETF



	Year Ended March 31,

	2020			2019			2018			2017^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	28.20		$	28.22		$	27.31		$	25.43


Income from investment operations^b:

Net investment income^c		1.04			0.95			0.86			0.67

Net realized and unrealized gains (losses)		(4.90	)		(0.02	)		1.03			1.79


Total from investment operations		(3.86	)		0.93			1.89			2.46


Less distributions from net investment income		(1.02	)		(0.95	)		(0.98	)		(0.58	)


Net asset value, end of year	$	23.32		$	28.20		$	28.22		$	27.31


Total return^d		(14.34)%			3.51%			6.91%			9.79%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.45%			0.45%			0.75%	^f		0.98%

Expenses net of waiver and payments by affiliates		0.45%			0.45%			0.45%	^f		0.45%

Net investment income		3.60%			3.43%			3.05%			3.11%

Supplemental data

Net assets, end of year (000’s)		$18,653			$16,920			$16,933			$27,306

Portfolio turnover rate^g		19.79%^h			25.75%			43.32%			13.38%

^aFor the period June 1, 2016 (commencement of operations) to March 31, 2017.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate includes portfolio transaction that are executed as result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”)

^hPortfolio turnover rate excluding cash creation for the year end March 31, 2020 was as follows: 17.48%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin LibertyQ Global Dividend ETF



		Industry		Shares		Value
	Common Stocks 98.1%
	Australia 6.8%
	Australian Stock Exchange Ltd.		Capital Markets		3,032	$	143,059
	Commonwealth Bank of Australia		Banks		8,812		333,419
	Macquarie Group Ltd.		Capital Markets		5,136		269,554
	National Australia Bank Ltd.		Banks		25,292		258,206
	Westpac Banking Corp.		Banks		26,440		267,013


							1,271,251

	Belgium 0.3%
	Proximus SADP		Diversified Telecommunication Services		2,444		55,967

	Canada 5.9%
	Bank of Nova Scotia		Banks		8,276		334,157
	Canadian Imperial Bank of Commerce		Banks		5,480		315,706
	IGM Financial Inc.		Capital Markets		1,720		28,217
	Royal Bank of Canada		Banks		5,820		356,433
	TELUS Corp.		Diversified Telecommunication Services		4,536		70,907


							1,105,420

	China 1.3%
	China Vanke Co. Ltd., A		Real Estate Management & Development		6,000		21,712
	China Vanke Co. Ltd., H		Real Estate Management & Development		21,200		69,884
a,b	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		30,000		146,112


							237,708

	Denmark 0.4%
	Tryg AS		Insurance		2,796		68,782

	Finland 3.6%
	Elisa OYJ		Diversified Telecommunication Services		2,208		136,836
	Kone OYJ, B		Machinery		4,892		277,083
	Nokian Renkaat OYJ		Auto Components		2,436		58,991
	Orion OYJ		Pharmaceuticals		1,480		60,540
	Sampo OYJ, A		Insurance		4,524		132,141


							665,591

	Germany 2.6%
	Allianz SE		Insurance		1,992		342,896
	Hannover Rueck SE		Insurance		1,012		145,465


							488,361

	Indonesia 0.8%
	Perusahaan Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B		Diversified Telecommunication Services		715,200		138,567

	Japan 4.7%
	Daito Trust Construction Co. Ltd.		Real Estate Management & Development		1,800		167,820
	Lawson Inc.		Food & Staples Retailing		530		29,113
	NTT DOCOMO Inc.		Wireless Telecommunication Services		17,600		550,555
	ORIX Corp.		Diversified Financial Services		11,200		134,923


							882,411

	Macau 1.1%
	Sands China Ltd.		Hotels, Restaurants & Leisure		56,000		205,189

	Malaysia 0.3%
	Nestle (Malaysia) Bhd.		Food Products		1,600		50,630

	Mexico 0.2%
	Kimberly-Clark de Mexico SAB de CV, A		Household Products		22,608		34,617



42	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Dividend ETF (continued)



	Industry		Shares		Value
Common Stocks (continued)
New Zealand 0.3%
Spark New Zealand Ltd.		Diversified Telecommunication Services		26,028	$	63,034

Norway 0.7%
Telenor ASA		Diversified Telecommunication Services		8,296		120,004

Qatar 2.4%
Masraf Al Rayan QSC		Banks		26,984		27,125
Qatar Islamic Bank SAQ		Banks		14,364		56,651
Qatar National Bank SAQ		Banks		79,812		368,262


						452,038

Russia 0.8%
NLMK PJSC		Metals & Mining		14,800		23,488
Tatneft PAO		Oil, Gas & Consumable Fuels		17,824		126,060


						149,548

Singapore 1.6%
ComfortDelGro Corp. Ltd.		Road & Rail		34,400		36,723
SATS Ltd.		Transportation Infrastructure		12,000		26,632
Singapore Telecommunications Ltd.		Diversified Telecommunication Services		113,600		202,650
Venture Corp. Ltd.		Electronic Equipment, Instruments & Components		3,600		34,310


						300,315

South Africa 1.8%
Absa Group Ltd.		Banks		8,268		34,720
FirstRand Ltd.		Diversified Financial Services		55,200		124,463
Mr. Price Group Ltd.		Specialty Retail		5,036		32,167
Rand Merchant Investment Holdings Ltd.		Insurance		13,264		16,368
RMB Holdings Ltd.		Diversified Financial Services		17,964		49,728
Sanlam Ltd.		Insurance		24,528		70,164


						327,610

South Korea 0.1%
Coway Co. Ltd.		Household Durables		372		17,663

Spain 0.6%
Bankinter SA		Banks		5,700		20,914
Red Electrica Corp. SA		Electric Utilities		4,884		87,700


						108,614

Sweden 1.1%
Hennes & Mauritz AB, B		Specialty Retail		16,240		209,808

Switzerland 7.5%
Novartis AG		Pharmaceuticals		5,336		440,369
Roche Holding AG		Pharmaceuticals		1,600		519,332
SGS SA		Professional Services		81		187,693
UBS Group AG		Capital Markets		27,364		255,837


						1,403,231

Taiwan 2.9%
Chailease Holding Co. Ltd.		Diversified Financial Services		15,210		46,020
Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		5,860		25,190
Phison Electronics Corp.		Semiconductors & Semiconductor Equipment		1,600		13,121
Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		48,000		434,899
Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		12,000		23,531


						542,761

Turkey 0.0%^†
Ford Otomotiv Sanayi AS		Automobiles		517		3,866



franklintempleton.com	Annual Report	43

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Dividend ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United Kingdom 9.8%
	Barratt Developments PLC		Household Durables		7,104	$	38,846
	GlaxoSmithKline PLC		Pharmaceuticals		21,768		408,809
	Kingfisher PLC		Specialty Retail		14,236		25,401
	Legal & General Group PLC		Insurance		78,376		188,388
	Marks & Spencer Group PLC		Multiline Retail		22,796		28,051
	Next PLC		Multiline Retail		2,792		140,970
	Schroders PLC		Capital Markets		924		28,460
	Smiths Group PLC		Industrial Conglomerates		4,660		70,840
	St. James’s Place Capital PLC		Capital Markets		3,824		36,017
	Taylor Wimpey PLC		Household Durables		41,996		61,186
	Unilever NV		Personal Products		8,064		396,445
	Unilever PLC		Personal Products		8,048		406,699


							1,830,112

	United States 40.5%
	Altria Group Inc.		Tobacco		10,208		394,743
	Arthur J. Gallagher & Co.		Insurance		3,036		247,464
	Cisco Systems Inc.		Communications Equipment		10,596		416,529
	Cummins Inc.		Machinery		1,100		148,852
	Darden Restaurants Inc.		Hotels, Restaurants & Leisure		2,292		124,822
	Emerson Electric Co.		Electrical Equipment		6,540		311,631
	Garmin Ltd.		Household Durables		2,508		188,000
	Intel Corp.		Semiconductors & Semiconductor Equipment		8,240		445,949
	International Business Machines Corp.		IT Services		3,552		394,023
	Johnson & Johnson		Pharmaceuticals		3,636		476,789
	Kimberly-Clark Corp.		Household Products		3,596		459,821
	Kohl’s Corp.		Multiline Retail		1,180		17,216
	Las Vegas Sands Corp.		Hotels, Restaurants & Leisure		5,972		253,631
	Leggett & Platt Inc.		Household Durables		1,808		48,237
	Lockheed Martin Corp.		Aerospace & Defense		1,220		413,519
	LyondellBasell Industries NV, A		Chemicals		4,964		246,363
	Maxim Integrated Products Inc.		Semiconductors & Semiconductor Equipment		5,612		272,799
	McDonald’s Corp.		Hotels, Restaurants & Leisure		2,456		406,100
	Merck & Co. Inc.		Pharmaceuticals		5,628		433,018
	Paychex Inc.		IT Services		5,632		354,365
	Philip Morris International Inc.		Tobacco		5,692		415,288
	Seagate Technology PLC		Technology Hardware, Storage & Peripherals		4,500		219,600
	Tapestry Inc.		Textiles, Apparel & Luxury Goods		4,304		55,737
	The Gap Inc.		Specialty Retail		3,416		24,049
	The Procter & Gamble Co.		Household Products		3,952		434,720
	United Parcel Service Inc., B		Air Freight & Logistics		3,832		357,986


							7,561,251

	Total Common Stocks (Cost $23,744,088)						18,294,349

	Preferred Stocks (Cost $359,120) 1.3%
	Brazil 1.3%
c	Itau Unibanco Holding SA, 8.709%, pfd.		Banks		56,000		249,304

	Total Investments (Cost $24,103,208) 99.4%						18,543,653
	Other Assets, less Liabilities 0.6%						109,705

	Net Assets 100.0%					$	18,653,358

^†Rounds to less than 0.1% of net assets.

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the value of this security was $146,112, representing 0.8% of net assets.



44	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Dividend ETF (continued)

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the value of this security was $146,112, representing 0.8% of net assets.

^cVariable rate security. The rate shown represents the yield at period end.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

MSCI All Country World Index

Long

45,090

6/19/20

3,852

*As of period end.

See Abbreviations on page 86.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	45

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ Global Equity ETF



	Year Ended March 31,

	2020			2019			2018			2017^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	30.90		$	30.14		$	27.18		$	25.32


Income from investment operations^b:

Net investment income^c		0.90			0.89			0.74			0.56

Net realized and unrealized gains (losses)		(4.00	)		0.67			3.01			1.92


Total from investment operations		(3.10	)		1.56			3.75			2.48


Less distributions from net investment income		(1.03	)		(0.80	)		(0.79	)		(0.62	)


Net asset value, end of year	$	26.77		$	30.90		$	30.14		$	27.18


Total return^d		(10.53)%			5.44%			13.91%			9.95%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.35%			0.35%			0.90%	^f		1.04%

Expenses net of waiver and payments by affiliates		0.34%			0.34%			0.35%	^f		0.35%

Net investment income		2.86%			2.99%			2.53%			2.60%

Supplemental data

Net assets, end of year (000’s)		$16,059			$24,721			$18,082			$21,744

Portfolio turnover rate^g		27.85%^h			34.99%			35.01%			13.84%

^aFor the period June 1, 2016 (commencement of operations) to March 31, 2017.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate includes portfolio transaction that are executed as result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”)

^hPortfolio turnover rate excluding cash creation for the year end March 31, 2020 was as follows: 25.34%



46	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin LibertyQ Global Equity ETF



	Industry			Shares		Value
Common Stocks and Other Equity Interests 97.8%
Argentina 0.0%^†
Banco Macro SA, ADR		Banks			63	$	1,070
Grupo Financiero Galicia SA, ADR		Banks			81		571


							1,641

Australia 5.9%
AGL Energy Ltd.		Multi-Utilities			1,095		11,521
Alumina Ltd.		Metals & Mining			5,697		5,091
Aristocrat Leisure Ltd.		Hotels, Restaurants & Leisure			438		5,723
Aurizon Holdings Ltd.		Road & Rail			3,675		9,514
Australia & New Zealand Banking Group Ltd.		Banks			3,189		33,103
Australian Stock Exchange Ltd.		Capital Markets			204		9,625
Bendigo and Adelaide Bank Ltd.		Banks			660		2,533
BHP Group Ltd.		Metals & Mining			5,454		96,739
Bluescope Steel Ltd.		Metals & Mining			906		4,785
Boral Ltd.		Construction Materials			849		1,065
Brambles Ltd.		Commercial Services & Supplies			2,715		17,548
Cimic Group Ltd.		Construction & Engineering			174		2,476
Coca-Cola Amatil Ltd.		Beverages			951		5,145
Cochlear Ltd.		Health Care Equipment & Supplies			132		15,144
Coles Group Ltd.		Food & Staples Retailing			1,290		11,970
Commonwealth Bank of Australia		Banks			2,058		77,868
Crown Resorts Ltd.		Hotels, Restaurants & Leisure			696		3,238
CSL Ltd.		Biotechnology			816		148,172
Dexus		Equity Real Estate Investment Trusts (REITs	)		1,908		10,615
Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure			108		655
Fortescue Metals Group Ltd.		Metals & Mining			3,693		22,603
Goodman Group		Equity Real Estate Investment Trusts (REITs	)		2,397		17,752
GPT Group		Equity Real Estate Investment Trusts (REITs	)		3,477		7,725
Harvey Norman Holdings Ltd.		Multiline Retail			1,401		2,530
Magellan Financial Group Ltd.		Capital Markets			141		3,756
Medibank Private Ltd.		Insurance			6,201		10,096
Mirvac Group		Equity Real Estate Investment Trusts (REITs	)		5,715		7,311
National Australia Bank Ltd.		Banks			4,542		46,369
Newcrest Mining Ltd.		Metals & Mining			672		9,480
Qantas Airways Ltd.		Airlines			774		1,530
REA Group Ltd.		Interactive Media & Services			105		4,948
Rio Tinto Ltd.		Metals & Mining			840		43,479
Rio Tinto PLC		Metals & Mining			2,232		102,912
Scentre Group		Equity Real Estate Investment Trusts (REITs	)		7,497		7,181
Sonic Healthcare Ltd.		Health Care Providers & Services			687		10,230
South32 Ltd.		Metals & Mining			8,010		8,653
Telstra Corp. Ltd.		Diversified Telecommunication Services			8,157		15,327
Wesfarmers Ltd.		Multiline Retail			2,280		47,823
Westpac Banking Corp.		Banks			4,155		41,961
Woodside Petroleum Ltd.		Oil, Gas & Consumable Fuels			1,431		15,949
Woolworths Group Ltd.		Food & Staples Retailing			2,421		52,010


							952,155

Austria 0.0%^†
OMV AG		Oil, Gas & Consumable Fuels			225		6,212

Belgium 0.1%
Colruyt SA		Food & Staples Retailing			120		6,487
Proximus SADP		Diversified Telecommunication Services			315		7,214


							13,701

Brazil 0.5%
Ambev SA		Beverages			3,900		8,963
BB Seguridade Participacoes SA		Insurance			1,800		8,624



franklintempleton.com	Annual Report	47

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Brazil (continued)
	Cielo SA		IT Services			2,700	$	2,311
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities			600		4,524
	Cosan SA		Oil, Gas & Consumable Fuels			300		3,110
	Engie Brasil Energia SA		Independent Power and Renewable Electricity Producers			300		2,251
a,b	Hapvida Participacoes e Investimentos SA, 144A, Reg S		Health Care Providers & Services			300		2,453
	Hypera SA		Pharmaceuticals			900		4,961
	IRB Brasil Resseguros SA		Insurance			930		1,736
	Localiza Rent a Car SA		Road & Rail			315		1,597
	Lojas Renner SA		Multiline Retail			900		5,824
	Petrobras Distribuidora SA		Specialty Retail			1,200		3,589
	Tim Participacoes SA		Wireless Telecommunication Services			1,200		2,878
	Vale SA		Metals & Mining			2,400		19,999


								72,820

	Canada 2.5%
c	Air Canada, B		Airlines			93		1,029
	Algonquin Power & Utilities Corp.		Multi-Utilities			444		5,911
	BCE Inc.		Diversified Telecommunication Services			285		11,559
	Canadian Apartment Properties REIT		Equity Real Estate Investment Trusts (REITs	)		72		2,154
	Canadian Imperial Bank of Commerce		Banks			666		38,369
	Canadian National Railway Co.		Road & Rail			1,137		87,894
c	CGI Inc., A		IT Services			324		17,343
	CI Financial Corp.		Capital Markets			438		4,299
	Constellation Software Inc.		Software			36		32,350
	Empire Co. Ltd., A		Food & Staples Retailing			222		4,294
	First Capital Real Estate Investment Trust		Equity Real Estate Investment Trusts (REITs	)		294		2,815
	Franco-Nevada Corp.		Metals & Mining			168		16,596
	Gildan Activewear Inc.		Textiles, Apparel & Luxury Goods			357		4,500
	Great-West Lifeco Inc.		Insurance			282		4,816
	H&R Real Estate Investment Trust		Equity Real Estate Investment Trusts (REITs	)		294		1,845
	Husky Energy Inc.		Oil, Gas & Consumable Fuels			363		903
	Hydro One Ltd.		Electric Utilities			399		7,103
	IGM Financial Inc.		Capital Markets			90		1,477
	Inter Pipeline Ltd.		Oil, Gas & Consumable Fuels			606		3,585
	Keyera Corp.		Oil, Gas & Consumable Fuels			180		1,654
	Kirkland Lake Gold Ltd.		Metals & Mining			360		10,484
	Magna International Inc.		Auto Components			639		20,162
	Metro Inc., A		Food & Staples Retailing			429		17,153
	Pembina Pipeline Corp.		Oil, Gas & Consumable Fuels			384		7,122
	Power Corp. of Canada		Insurance			741		11,787
	Quebecor Inc., B		Media			210		4,590
	RioCan REIT		Equity Real Estate Investment Trusts (REITs	)		312		3,536
	Rogers Communications Inc., B		Wireless Telecommunication Services			567		23,399
	Saputo Inc.		Food Products			369		8,773
	Shaw Communications Inc.		Media			357		5,726
	SmartCentres Real Estate Investment Trust		Equity Real Estate Investment Trusts (REITs	)		141		1,866
	Teck Resources Ltd., B		Metals & Mining			750		5,622
	TELUS Corp.		Diversified Telecommunication Services			672		10,505
	Thomson Reuters Corp.		Professional Services			219		14,752
	West Fraser Timber Co. Ltd.		Paper & Forest Products			87		1,641
	Wheaton Precious Metals Corp.		Metals & Mining			345		9,388


								407,002

	Chile 0.1%
	Aguas Andinas SA, A		Water Utilities			4,518		1,336
	Colbun SA		Independent Power and Renewable Electricity Producers			12,273		1,339



48	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



	Industry		Shares		Value
Common Stocks and Other Equity Interests (continued)
Chile (continued)
Compania Cervecerias Unidas SA		Beverages		267	$	1,839
Enel Americas SA		Electric Utilities		31,047		3,810
Enel Chile SA		Electric Utilities		49,335		3,357


						11,681

China 3.8%
Agricultural Bank of China Ltd., A		Banks		6,600		3,138
Agricultural Bank of China Ltd., H		Banks		48,000		19,260
Anhui Conch Cement Co. Ltd., A		Construction Materials		300		2,332
Anhui Conch Cement Co. Ltd., H		Construction Materials		2,500		17,369
Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		2,000		14,695
Bank of China Ltd., A		Banks		4,800		2,357
Bank of China Ltd., H		Banks		147,000		56,328
Bank of Communications Co. Ltd., A		Banks		3,000		2,184
Bank of Communications Co. Ltd., H		Banks		15,000		9,192
Baoshan Iron & Steel Co. Ltd., A		Metals & Mining		1,200		824
China Cinda Asset Management Co. Ltd., H		Capital Markets		15,000		2,845
China CITIC Bank Corp. Ltd., H		Banks		18,000		8,894
China Conch Venture Holdings Ltd.		Machinery		3,000		13,392
China Construction Bank Corp., H		Banks		114,000		93,248
China Everbright Bank Co. Ltd., A		Banks		1,800		917
China Everbright Bank Co. Ltd., H		Banks		6,000		2,299
China Medical System Holdings Ltd.		Pharmaceuticals		3,000		3,247
China Minsheng Banking Corp. Ltd., A		Banks		1,800		1,450
China Minsheng Banking Corp. Ltd., H		Banks		12,000		8,918
China Mobile Ltd.		Wireless Telecommunication Services		11,000		81,816
China Petroleum & Chemical Corp., A		Oil, Gas & Consumable Fuels		4,200		2,625
China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		36,000		17,742
China Resources Cement Holdings Ltd.		Construction Materials		4,000		4,774
China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		600		1,375
China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		7,500		14,282
China South Publishing & Media Group Co. Ltd., A		Media		300		450
China Telecom Corp. Ltd., H		Diversified Telecommunication Services		18,000		5,457
China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		1,800		4,391
China Zhongwang Holdings Ltd.		Metals & Mining		2,400		632
Chongqing Rural Commercial Bank Co. Ltd., H		Banks		3,000		1,231
CNOOC Ltd.		Oil, Gas & Consumable Fuels		21,000		22,027
Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		3,000		12,192
Dali Foods Group Co. Ltd.		Food Products		6,000		4,180
Daqin Railway Co. Ltd., A		Road & Rail		1,800		1,727
Dongfeng Motor Group Co. Ltd., H		Automobiles		6,000		3,956
Focus Media Information Technology Co. Ltd.		Media		360		224
Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		300		5,298
Fuyao Group Glass Industries Co. Ltd., H		Auto Components		1,200		2,567
Guangdong Investment Ltd.		Water Utilities		6,000		11,565
Guangzhou Automobile Group Co. Ltd., H		Automobiles		6,000		6,030
Heilan Home Co. Ltd., A – SHSC		Specialty Retail		600		536
Henan Shuanghui Investment & Development Co. Ltd.		Food Products		600		3,327
Huayu Automotive Systems Co. Ltd.		Auto Components		300		912
Hubei Jumpcan Pharmaceutical Co. Ltd., A		Pharmaceuticals		300		928
Industrial and Commercial Bank of China Ltd., H		Banks		75,000		51,381
Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		2,000		2,232
Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		1,500		3,514
Kweichow Moutai Co. Ltd., A		Beverages		100		15,674
Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		3,000		1,819



franklintempleton.com	Annual Report	49

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
a,b	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development			3,000	$	14,611
	Metallurgical Corp. of China Ltd.		Construction & Engineering			3,000		526
	Nexteer Automotive Group Ltd.		Auto Components			1,000		502
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products			3,000		2,736
	Postal Savings Bank of China Co. Ltd., H		Banks			6,000		3,654
	SAIC Motor Corp. Ltd.		Automobiles			600		1,735
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels			600		633
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods			1,200		12,757
	Shui On Land Ltd.		Real Estate Management & Development			1,500		252
	Sichuan Chuantou Energy Co. Ltd., A		Independent Power and Renewable Electricity Producers			600		779
	Sino-Ocean Land Holdings Ltd.		Real Estate Management & Development			6,000		1,525
	Sinopec Shanghai Petrochemical Co. Ltd., A		Chemicals			1,800		988
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals			12,000		2,973
	Wanhua Chemical Group Co. Ltd., A		Chemicals			300		1,746
	Weichai Power Co. Ltd., A		Machinery			300		506
	Wens Foodstuffs Group Co. Ltd.		Food Products			300		1,367
	Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd.		Entertainment			300		1,382
	Wuliangye Yibin Co. Ltd.		Beverages			300		4,876
	Yuexiu Property Co. Ltd.		Real Estate Management & Development			6,000		1,084
	Yuzhou Properties Co. Ltd.		Real Estate Management & Development			6,000		2,555
	Zhejiang Semir Garment Co. Ltd.		Textiles, Apparel & Luxury Goods			300		301


								605,241

	Colombia 0.0%^†
	Ecopetrol SA		Oil, Gas & Consumable Fuels			8,049		3,767

	Czech Republic 0.0%^†
	Moneta Money Bank AS		Banks			546		1,124

	Denmark 1.6%
	Coloplast AS, B		Health Care Equipment & Supplies			267		38,734
	Novo Nordisk AS, B		Pharmaceuticals			3,381		203,408
	Pandora AS		Textiles, Apparel & Luxury Goods			267		8,672
	Tryg AS		Insurance			123		3,026


								253,840

	Egypt 0.1%
	Commercial International Bank Egypt SAE		Banks			1,689		6,306
	Eastern Co. SAE		Tobacco			2,439		1,914
	ElSewedy Electric Co.		Electrical Equipment			1,983		988


								9,208

	Finland 0.2%
	Elisa OYJ		Diversified Telecommunication Services			267		16,547
	Nokian Renkaat OYJ		Auto Components			234		5,667
	Orion OYJ		Pharmaceuticals			198		8,099


								30,313

	France 0.7%
	Cie Generale des Etablissements Michelin SCA		Auto Components			261		23,214
	Covivio		Equity Real Estate Investment Trusts (REITs	)		66		3,719
	Hermes International		Textiles, Apparel & Luxury Goods			60		41,397
	Peugeot SA		Automobiles			1,080		14,416
	Renault SA		Automobiles			243		4,721
	Societe Generale SA		Banks			1,128		18,996


								106,463



50	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany 0.4%
	Adidas AG		Textiles, Apparel & Luxury Goods		141	$	31,855
	Aroundtown SA		Real Estate Management & Development		1,416		7,076
	Covestro AG		Chemicals		348		10,642
	Deutsche Lufthansa AG		Airlines		405		3,805
	TUI AG		Hotels, Restaurants & Leisure		714		3,212


							56,590

	Greece 0.0%^†
	JUMBO SA		Specialty Retail		159		2,149
	Motor Oil (Hellas) Corinth Refineries SA		Oil, Gas & Consumable Fuels		102		1,259
	OPAP SA		Hotels, Restaurants & Leisure		195		1,483


							4,891

	Hong Kong 0.3%
	HKT Trust and HKT Ltd.		Diversified Telecommunication Services		6,000		8,174
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates		300		15,000
	Kerry Properties Ltd.		Real Estate Management & Development		1,500		3,958
	Kingboard Laminates Holdings Ltd.		Chemicals		1,500		1,387
	NWS Holdings Ltd.		Industrial Conglomerates		3,000		3,085
	Power Assets Holdings Ltd.		Electric Utilities		1,500		8,970
	Sino Land Co. Ltd.		Real Estate Management & Development		2,000		2,539
	Vitasoy International Holdings Ltd.		Food Products		900		2,729
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods		1,500		2,299


							48,141

	Hungary 0.0%^†
	MOL Hungarian Oil and Gas PLC		Oil, Gas & Consumable Fuels		789		4,632

	India 0.3%
	Infosys Ltd., ADR		IT Services		5,469		44,900

	Indonesia 0.3%
	Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels		24,600		1,493
	Bukit Asam Tbk PT		Oil, Gas & Consumable Fuels		6,600		882
	Charoen Pokphand Indonesia Tbk PT		Food Products		8,400		2,544
	Gudang Garam Tbk PT		Tobacco		600		1,512
	Hanjaya Mandala Sampoerna Tbk PT		Tobacco		24,900		2,176
	Indofood CBP Sukses Makmur Tbk PT		Food Products		4,200		2,633
	Kalbe Farma Tbk PT		Pharmaceuticals		18,000		1,324
	Perusahaan Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B		Diversified Telecommunication Services		93,300		18,077
	Unilever Indonesia Tbk PT		Household Products		18,000		8,001
	United Tractors Tbk PT		Oil, Gas & Consumable Fuels		3,600		3,730


							42,372

	Ireland 0.0%^†
c	AIB Group PLC		Banks		1,074		1,204

	Israel 0.2%
	Azrieli Group Ltd.		Real Estate Management & Development		48		2,779
c	Check Point Software Technologies Ltd.		Software		216		21,717
	Israel Chemicals Ltd.		Chemicals		822		2,621


							27,117

	Italy 1.1%
	Assicurazioni Generali SpA		Insurance		1,239		16,871
	Enel SpA		Electric Utilities		10,344		71,947
	Ferrari NV		Automobiles		96		14,910
	Intesa Sanpaolo SpA		Banks		22,344		36,491
	Moncler SpA		Textiles, Apparel & Luxury Goods		324		11,835



franklintempleton.com	Annual Report	51

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Italy (continued)
b	Poste Italiane SpA, Reg S		Insurance			864	$	7,319
	Recordati SpA		Pharmaceuticals			144		6,090
	Snam SpA		Gas Utilities			2,544		11,735


								177,198

	Japan 5.4%
	ABC-Mart Inc.		Specialty Retail			75		3,759
	Advantest Corp.		Semiconductors & Semiconductor Equipment			300		12,061
	Astellas Pharma Inc.		Pharmaceuticals			3,300		51,080
	Bandai Namco Holdings Inc.		Leisure Equipment & Products			300		14,564
	Bridgestone Corp.		Auto Components			1,000		30,781
	CANON Inc.		Technology Hardware, Storage & Peripherals			1,500		32,778
	Daito Trust Construction Co. Ltd.		Real Estate Management & Development			150		13,985
	Daiwa House Industry Co. Ltd.		Real Estate Management & Development			600		14,881
	Hoya Corp.		Health Care Equipment & Supplies			700		59,654
	Iida Group Holdings Co. Ltd.		Household Durables			300		4,160
	ITOCHU Corp.		Trading Companies & Distributors			2,400		49,854
	Japan Airlines Co. Ltd.		Airlines			300		5,530
	Japan Post Bank Co. Ltd.		Banks			600		5,541
	Japan Tobacco Inc.		Tobacco			2,100		38,827
	Kakaku.com Inc.		Interactive Media & Services			300		5,516
	KAO Corp.		Personal Products			730		59,709
	KDDI Corp.		Wireless Telecommunication Services			3,600		106,378
	Marubeni Corp.		Trading Companies & Distributors			2,400		11,983
	Mitsubishi Chemical Holdings Corp.		Chemicals			1,800		10,718
	Mitsubishi Gas Chemical Co. Inc.		Chemicals			300		3,268
	Nexon Co. Ltd.		Entertainment			600		9,810
	Nippon Building Fund Inc.		Equity Real Estate Investment Trusts (REITs	)		1		6,707
	Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services			2,400		57,257
	NTT DOCOMO Inc.		Wireless Telecommunication Services			3,000		93,845
	Obayashi Corp.		Construction & Engineering			600		5,147
	Oracle Corp. Japan		Software			75		6,558
	Oriental Land Co. Ltd.		Hotels, Restaurants & Leisure			150		19,202
	Sekisui House Ltd.		Household Durables			900		14,877
	Shionogi & Co. Ltd.		Pharmaceuticals			400		19,701
	Showa Denko K.K.		Chemicals			100		2,072
	Softbank Corp.		Wireless Telecommunication Services			1,500		19,098
	Subaru Corp.		Automobiles			1,200		23,048
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment			270		50,909
	Tosoh Corp.		Chemicals			600		6,836
	Zozo Inc.		Internet & Direct Marketing Retail			300		4,032


								874,126

	Macau 0.2%
	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure			3,000		16,005
	Sands China Ltd.		Hotels, Restaurants & Leisure			4,800		17,588
	Wynn Macau Ltd.		Hotels, Restaurants & Leisure			2,400		3,647


								37,240

	Malaysia 0.2%
	AirAsia Group Bhd		Airlines			3,300		604
	Digi.com Bhd.		Wireless Telecommunication Services			6,600		6,646
	Fraser & Neave Holdings Bhd.		Beverages			300		2,154
	Hartalega Holdings Bhd.		Health Care Equipment & Supplies			2,100		3,344
	Nestle (Malaysia) Bhd.		Food Products			200		6,329
	Petronas Chemicals Group Bhd.		Chemicals			4,500		5,260
	Petronas Gas Bhd.		Gas Utilities			1,200		4,278
	Westports Holdings Bhd.		Transportation Infrastructure			1,800		1,408


								30,023



52	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



	Industry			Shares		Value
Common Stocks and Other Equity Interests (continued)
Mexico 0.2%
Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		5,598	$	4,436
Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure			654		3,551
Kimberly-Clark de Mexico SAB de CV, A		Household Products			2,970		4,548
Megacable Holdings SAB de CV		Media			435		1,203
Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure			255		1,730
Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			9,261		22,009


							37,477

Netherlands 0.3%
Koninklijke Ahold Delhaize NV		Food & Staples Retailing			1,929		45,052

New Zealand 0.2%
Fisher & Paykel Healthcare Corp. Ltd.		Health Care Equipment & Supplies			1,077		19,398
Mercury NZ Ltd.		Electric Utilities			576		1,441
Meridian Energy Ltd.		Independent Power and Renewable Electricity Producers			1,476		3,535
Spark New Zealand Ltd.		Diversified Telecommunication Services			4,293		10,397


							34,771

Norway 0.3%
Equinor ASA		Oil, Gas & Consumable Fuels			834		10,416
Mowi ASA		Food Products			819		12,374
Orkla ASA		Food Products			735		6,231
Telenor ASA		Diversified Telecommunication Services			1,290		18,660


							47,681

Pakistan 0.0%^†
MCB Bank Ltd.		Banks			900		809
Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels			2,100		973


							1,782

Philippines 0.0%^†
Globe Telecom Inc.		Wireless Telecommunication Services			60		2,277
Manila Electric Co.		Electric Utilities			540		2,389


							4,666

Poland 0.0%^†
Powszechny Zaklad Ubezpieczen SA		Insurance			705		5,318

Portugal 0.1%
Jeronimo Martins SGPS SA		Food & Staples Retailing			426		7,684

Qatar 0.1%
Barwa Real Estate Co.		Real Estate Management & Development			3,402		2,803
Industries Qatar QSC		Industrial Conglomerates			3,750		6,849
Masraf Al Rayan QSC		Banks			3,249		3,266
Mesaieed Petrochemical Holding Co.		Chemicals			5,895		2,364
Qatar Electricity & Water Co. QSC		Multi-Utilities			942		3,526
Qatar Fuel QSC		Oil, Gas & Consumable Fuels			741		3,332
Qatar International Islamic Bank QSC		Banks			654		1,304


							23,444

Russia 1.7%
Alrosa PJSC		Metals & Mining			6,687		5,528
Evraz PLC		Metals & Mining			1,101		3,162
Gazprom PJSC		Oil, Gas & Consumable Fuels			24,540		56,977
Inter RAO UES PJSC		Electric Utilities			82,320		5,186
LUKOIL PJSC		Oil, Gas & Consumable Fuels			969		58,474
Magnitogorsk Iron & Steel Works		Metals & Mining			4,797		2,364
MMC Norilsk Nickel PJSC		Metals & Mining			168		41,967



franklintempleton.com	Annual Report	53

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Russia (continued)
	Mobile TeleSystems PJSC, ADR		Wireless Telecommunication Services			1,086	$	8,254
	Moscow Exchange MICEX		Capital Markets			828		1,030
	NLMK PJSC		Metals & Mining			2,964		4,704
b	Novatek PJSC, GDR, Reg S		Oil, Gas & Consumable Fuels			174		20,062
b	PhosAgro PJSC, GDR, Reg S		Chemicals			153		1,579
	Polymetal International PLC		Metals & Mining			321		5,491
	Polyus Gold OJSC		Metals & Mining			51		6,943
	Rosneft PJSC		Oil, Gas & Consumable Fuels			2,127		8,557
	Severstal PJSC		Metals & Mining			702		7,786
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels			15,975		6,931
	Tatneft PAO		Oil, Gas & Consumable Fuels			3,819		27,010
b	X5 Retail Group NV, GDR, Reg S		Food & Staples Retailing			147		3,935


								275,940

	Saudi Arabia 0.3%
	Advanced Petrochemical Co.		Chemicals			156		1,848
	Al-Rajhi Bank		Banks			1,062		15,208
	Bupa Arabia for Cooperative Insurance Co.		Insurance			33		803
c	Dar Al Arkan Real Estate Development Co.		Real Estate Management & Development			336		733
	Jarir Marketing Co.		Specialty Retail			99		3,368
	Saudi Airlines Catering Co.		Hotels, Restaurants & Leisure			90		1,809
	Saudi Arabian Fertilizer Co.		Chemicals			210		3,465
	Saudi Cement Co.		Construction Materials			84		1,095
	Saudi Telecom Co.		Diversified Telecommunication Services			447		10,410
	Yanbu National Petrochemical Co.		Chemicals			270		2,990


								41,729

	Singapore 0.4%
	CapitaLand Mall Trust		Equity Real Estate Investment Trusts (REITs	)		3,900		4,903
	ComfortDelGro Corp. Ltd.		Road & Rail			3,900		4,164
	Mapletree Commercial Trust		Equity Real Estate Investment Trusts (REITs	)		1,800		2,314
	SATS Ltd.		Transportation Infrastructure			1,200		2,663
	Singapore Exchange Ltd.		Capital Markets			2,100		13,554
	Singapore Technologies Engineering Ltd.		Aerospace & Defense			2,700		5,916
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services			14,700		26,223
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components			300		2,859
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery			4,200		2,448


								65,044

	South Africa 0.2%
	AngloGold Ashanti Ltd.		Metals & Mining			357		6,379
	Capitec Bank Holdings Ltd.		Banks			57		2,808
	Clicks Group Ltd.		Food & Staples Retailing			393		5,671
	Exxaro Resources Ltd.		Oil, Gas & Consumable Fuels			552		3,059
	Kumba Iron Ore Ltd.		Metals & Mining			168		2,634
	Mr. Price Group Ltd.		Specialty Retail			543		3,468
	RMB Holdings Ltd.		Diversified Financial Services			1,182		3,272
	Telkom SA SOC Ltd.		Diversified Telecommunication Services			534		614
	Tiger Brands Ltd.		Food Products			267		2,766
	Vodacom Group Ltd.		Wireless Telecommunication Services			1,173		7,685


								38,356

	South Korea 2.3%
	BGF Retail Co. Ltd.		Food & Staples Retailing			12		1,301
	BNK Financial Group Inc.		Banks			360		1,312
	Coway Co. Ltd.		Household Durables			111		5,270
	Daelim Industrial Co. Ltd.		Construction & Engineering			36		2,179
	DB Insurance Co. Ltd.		Insurance			78		2,227
	Hana Financial Group Inc.		Banks			561		10,645



54	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
	Hankook Tire & Technology Co. Ltd.		Auto Components		117	$	1,860
	HDC Hyundai Development Co-Engineering & Construction		Construction & Engineering		22		281
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		102		1,898
	Industrial Bank of Korea		Banks		483		2,976
	Kangwon Land Inc.		Hotels, Restaurants & Leisure		204		3,310
	KB Financial Group Inc.		Banks		693		19,668
	Kia Motors Corp.		Automobiles		300		6,407
	Korea Zinc Co. Ltd.		Metals & Mining		15		4,387
	KT&G Corp.		Tobacco		234		14,359
	Kumho Petrochemical Co. Ltd.		Chemicals		30		1,597
	LG Corp.		Industrial Conglomerates		159		7,706
	LG Uplus Corp.		Diversified Telecommunication Services		153		1,357
	Lotte Chemical Corp.		Chemicals		30		4,756
	NCsoft Corp.		Entertainment		24		12,854
c	Pearl Abyss Corp.		Entertainment		9		1,323
	S-1 Corp.		Commercial Services & Supplies		45		2,957
	Samsung Card Co. Ltd.		Consumer Finance		30		737
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		3,723		146,033
	Shinhan Financial Group Co. Ltd.		Banks		591		13,885
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		1,266		86,629
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		42		6,107
	Woori Financial Group Inc.		Banks		432		2,715


							366,736

	Spain 1.2%
	Aena SME SA		Transportation Infrastructure		87		9,500
	Banco de Sabadell SA		Banks		7,829		4,029
	Enagas SA		Gas Utilities		339		6,731
	Endesa SA		Electric Utilities		624		13,331
	Iberdrola SA		Electric Utilities		7,376		72,710
	Industria de Diseno Textil SA		Specialty Retail		2,007		52,104
	Red Electrica Corp. SA		Electric Utilities		681		12,228
	Repsol SA		Oil, Gas & Consumable Fuels		2,151		19,665


							190,298

	Sweden 0.3%
	Boliden AB		Metals & Mining		432		7,905
	Hennes & Mauritz AB, B		Specialty Retail		1,539		19,883
	ICA Gruppen AB		Food & Staples Retailing		66		2,784
c	Skanska AB, B		Construction & Engineering		234		3,577
	Swedbank AB, A		Banks		660		7,384
	Telia Co. AB		Diversified Telecommunication Services		3,822		13,771


							55,304

	Switzerland 3.0%
	EMS-Chemie Holding AG		Chemicals		18		11,321
	Geberit AG		Building Products		45		19,813
	Nestle SA		Food Products		1,845		189,639
	Partners Group Holding AG		Capital Markets		36		24,914
	Roche Holding AG		Pharmaceuticals		651		211,303
	Swisscom AG		Diversified Telecommunication Services		45		24,194


							481,184

	Taiwan 2.4%
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		500		4,125
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		1,000		6,465
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		2,015		5,051



franklintempleton.com	Annual Report	55

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Taiwan (continued)
	China Development Financial Holding Corp.		Insurance		18,000	$	4,416
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		6,000		21,328
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		3,000		6,279
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		825		3,546
	Formosa Chemicals & Fibre Corp.		Chemicals		6,000		13,293
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		3,000		8,075
	Formosa Plastics Corp.		Chemicals		6,000		14,900
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		180		22,797
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		3,000		4,097
	Nan Ya Plastics Corp.		Chemicals		9,000		16,279
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		3,000		5,327
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		1,000		5,688
	Powertech Technology Inc.		Semiconductors & Semiconductor Equipment		1,000		2,841
	President Chain Store Corp.		Food & Staples Retailing		1,500		14,037
	Taiwan Business Bank		Banks		6,300		2,019
	Taiwan Cement Corp.		Construction Materials		3,000		3,918
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		3,000		9,910
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		20,000		181,208
	The Shanghai Commercial & Savings Bank Ltd.		Banks		3,243		4,220
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		3,000		5,883
	WPG Holdings Ltd.		Electronic Equipment, Instruments & Components		6,000		7,043
	Yageo Corp.		Electronic Equipment, Instruments & Components		600		5,446
	Yuanta Financial Holding Co. Ltd.		Diversified Financial Services		12,000		6,170


							384,361

	Thailand 0.5%
	Advanced Info Service PCL		Wireless Telecommunication Services		2,100		12,862
	Airports of Thailand Public Co. Ltd., NVDR		Transportation Infrastructure		6,600		10,207
	Bumrungrad Hospital PCL		Health Care Providers & Services		600		2,084
	Electricity Generating PCL		Independent Power and Renewable Electricity Producers		300		2,112
	Home Product Center PCL, NVDR		Specialty Retail		9,000		3,044
	Intouch Holdings PCL		Wireless Telecommunication Services		3,900		5,942
	Land and Houses PCL, NVDR		Real Estate Management & Development		9,300		1,899
	Osotspa PCL, NVDR		Beverages		900		980
	PTT Exploration and Production PCL, NVDR		Oil, Gas & Consumable Fuels		1,800		3,702
	PTT Global Chemical PCL, NVDR		Chemicals		3,600		3,346
	PTT PCL		Oil, Gas & Consumable Fuels		16,500		15,461
	Ratch Group PCL, NVDR		Independent Power and Renewable Electricity Producers		1,200		2,084
	The Siam Cement PCL		Construction Materials		1,200		11,847


							75,570

	Turkey 0.2%
	BIM Birlesik Magazalar AS		Food & Staples Retailing		858		6,529
	Eregli Demir ve Celik Fabrikalari AS		Metals & Mining		3,552		4,048
	Ford Otomotiv Sanayi AS		Automobiles		195		1,458
	Haci Omer Sabanci Holding AS		Diversified Financial Services		1,107		1,258
	TAV Havalimanlari Holding AS		Transportation Infrastructure		423		1,063
c	Tupras-Turkiye Petrol Rafinerileri AS		Oil, Gas & Consumable Fuels		267		3,059
	Turkcell Iletisim Hizmetleri AS		Wireless Telecommunication Services		1,935		3,617
c	Turkiye Garanti Bankasi AS		Banks		2,973		3,668
c	Turkiye Is Bankasi AS, C		Banks		1,893		1,356


							26,056



56	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Arab Emirates 0.1%
	Abu Dhabi Commercial Bank PJSC		Banks			2	$	3
	Abu Dhabi Commercial Bank PJSC		Banks			3,420		4,311
	Aldar Properties PJSC		Real Estate Management & Development			6,603		2,768
	Dubai Islamic Bank PJSC		Banks			2,499		2,449
	Emaar Malls Group PJSC		Real Estate Management & Development			2,607		760
	Emirates Telecommunications Group Co. PJSC		Diversified Telecommunication Services			3,177		12,126


								22,417

	United Kingdom 6.6%
	Admiral Group PLC		Insurance			420		11,613
	Anglo American PLC		Metals & Mining			1,680		29,505
	Auto Trader Group PLC		Interactive Media & Services			1,521		8,281
	Barratt Developments PLC		Household Durables			2,250		12,303
	BHP Group PLC		Metals & Mining			3,300		51,230
	British American Tobacco PLC		Tobacco			1,860		63,631
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		1,494		6,228
	BT Group PLC		Diversified Telecommunication Services			16,197		23,679
	Burberry Group PLC		Textiles, Apparel & Luxury Goods			738		12,120
	Centrica PLC		Multi-Utilities			6,900		3,258
	Compass Group PLC		Hotels, Restaurants & Leisure			2,697		42,270
	Direct Line Insurance Group PLC		Insurance			2,664		9,774
	easyJet PLC		Airlines			192		1,359
	Ferguson PLC		Trading Companies & Distributors			174		10,908
	GlaxoSmithKline PLC		Pharmaceuticals			8,856		166,318
	Hargreaves Lansdown PLC		Capital Markets			546		9,383
	Imperial Brands PLC		Tobacco			2,052		38,084
	Intertek Group PLC		Professional Services			243		14,240
	ITV PLC		Media			7,722		6,321
	Kingfisher PLC		Specialty Retail			3,210		5,728
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		1,047		7,229
c	M&G PLC		Diversified Financial Services			2,130		2,974
	Marks & Spencer Group PLC		Multiline Retail			3,249		3,998
	Micro Focus International PLC		Software			309		1,533
	Mondi PLC		Paper & Forest Products			768		13,151
	Next PLC		Multiline Retail			306		15,450
	Persimmon PLC		Household Durables			816		19,391
	RELX PLC		Professional Services			3,570		76,669
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			3,561		62,656
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			3,051		51,443
	Smith & Nephew PLC		Health Care Equipment & Supplies			714		12,700
	SSE PLC		Electric Utilities			1,596		25,826
	Taylor Wimpey PLC		Household Durables			7,782		11,338
	The Berkeley Group Holdings PLC		Household Durables			237		10,623
	Unilever NV		Personal Products			2,445		120,202
	Unilever PLC		Personal Products			1,908		96,419


								1,057,835

	United States 53.5%
	AbbVie Inc.		Biotechnology			1,830		139,428
	Accenture PLC, A		IT Services			996		162,607
	Air Products and Chemicals Inc.		Chemicals			264		52,697
	Altria Group Inc.		Tobacco			3,870		149,653
c	Amcor PLC		Containers & Packaging			2,478		20,121
	American Electric Power Co. Inc.		Electric Utilities			771		61,665
	American Tower Corp.		Equity Real Estate Investment Trusts (REITs	)		546		118,891
	Amgen Inc.		Biotechnology			885		179,416
	Apple Inc.		Technology Hardware, Storage & Peripherals			732		186,140
	Applied Materials Inc.		Semiconductors & Semiconductor Equipment			1,677		76,840



franklintempleton.com	Annual Report	57

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United States (continued)
	AT&T Inc.		Diversified Telecommunication Services			4,935	$	143,855
	Best Buy Co. Inc.		Specialty Retail			438		24,966
c	Biogen Inc.		Biotechnology			375		118,643
c	Booking Holdings Inc.		Internet & Direct Marketing Retail			36		48,432
	BorgWarner Inc.		Auto Components			204		4,971
	Bristol-Myers Squibb Co.		Pharmaceuticals			2,970		165,548
	Broadcom Inc.		Semiconductors & Semiconductor Equipment			468		110,963
	Broadridge Financial Solutions Inc.		IT Services			189		17,923
c	Burlington Stores Inc.		Specialty Retail			99		15,688
	C.H. Robinson Worldwide Inc.		Air Freight & Logistics			234		15,491
	Cabot Oil & Gas Corp., A		Oil, Gas & Consumable Fuels			567		9,747
c	Cadence Design Systems Inc.		Software			354		23,378
	Campbell Soup Co.		Food Products			288		13,294
c	Capri Holdings Ltd.		Textiles, Apparel & Luxury Goods			255		2,751
	Carnival Corp.		Hotels, Restaurants & Leisure			690		9,087
	Celanese Corp.		Chemicals			153		11,229
	Church & Dwight Co. Inc.		Household Products			285		18,291
	Cisco Systems Inc.		Communications Equipment			4,329		170,173
	Citrix Systems Inc.		Software			183		25,904
	Clorox Co.		Household Products			279		48,337
	Cognizant Technology Solutions Corp., A		IT Services			849		39,453
c	Copart Inc.		Commercial Services & Supplies			345		23,639
	Cummins Inc.		Machinery			267		36,130
	D.R. Horton Inc.		Household Durables			438		14,892
	Darden Restaurants Inc.		Hotels, Restaurants & Leisure			231		12,580
	Delta Air Lines Inc.		Airlines			285		8,131
	Dollar General Corp.		Multiline Retail			447		67,501
	Dominion Energy Inc.		Multi-Utilities			906		65,404
c	Dow Inc.		Chemicals			825		24,123
	Eli Lilly & Co.		Pharmaceuticals			1,557		215,987
	Equity Lifestyle Properties Inc.		Equity Real Estate Investment Trusts (REITs	)		201		11,553
	Erie Indemnity Co., A		Insurance			33		4,892
	Estee Lauder Companies Inc., A		Personal Products			366		58,318
	Expeditors International of Washington Inc.		Air Freight & Logistics			294		19,616
	Extra Space Storage Inc.		Equity Real Estate Investment Trusts (REITs	)		174		16,662
c	F5 Networks Inc.		Communications Equipment			117		12,476
c	Facebook Inc., A		Interactive Media & Services			990		165,132
	FactSet Research Systems Inc.		Capital Markets			48		12,513
	Fastenal Co.		Trading Companies & Distributors			1,041		32,531
	Fox Corp., A		Media			285		6,735
c	Fox Corp., B		Media			288		6,589
	Garmin Ltd.		Household Durables			249		18,665
	General Mills Inc.		Food Products			969		51,134
	General Motors Co.		Automobiles			2,274		47,254
	Gilead Sciences Inc.		Biotechnology			2,265		169,331
	Hanesbrands Inc.		Textiles, Apparel & Luxury Goods			552		4,344
	Healthpeak Properties Inc.		Equity Real Estate Investment Trusts (REITs	)		561		13,380
	HollyFrontier Corp.		Oil, Gas & Consumable Fuels			270		6,618
	Hormel Foods Corp.		Food Products			540		25,186
c	IDEXX Laboratories Inc.		Health Care Equipment & Supplies			66		15,988
	Illinois Tool Works Inc.		Machinery			405		57,559
	Ingredion Inc.		Food Products			102		7,701
	Intel Corp.		Semiconductors & Semiconductor Equipment			3,345		181,031
	International Business Machines Corp.		IT Services			1,449		160,738
	Intuit Inc.		Software			498		114,540
	Invesco Ltd.		Capital Markets			243		2,206
	J.B. Hunt Transport Services Inc.		Road & Rail			138		12,728
	Jack Henry & Associates Inc.		IT Services			132		20,492



58	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United States (continued)
c	Jazz Pharmaceuticals PLC		Pharmaceuticals			57	$	5,685
	Johnson & Johnson		Pharmaceuticals			1,476		193,548
	Kellogg Co.		Food Products			339		20,337
	Kimberly-Clark Corp.		Household Products			591		75,571
	Kimco Realty Corp.		Equity Real Estate Investment Trusts (REITs	)		537		5,193
	KLA Corp.		Semiconductors & Semiconductor Equipment			288		41,397
	Kohl’s Corp.		Multiline Retail			312		4,552
	Lam Research Corp.		Semiconductors & Semiconductor Equipment			243		58,320
	Lamb Weston Holdings Inc.		Food Products			132		7,537
	Las Vegas Sands Corp.		Hotels, Restaurants & Leisure			606		25,737
	Lear Corp.,		Auto Components			108		8,775
	Leggett & Platt Inc.		Household Durables			204		5,443
	Lockheed Martin Corp.		Aerospace & Defense			459		155,578
	Lowe’s Companies Inc.		Specialty Retail			1,305		112,295
c	Lululemon Athletica Inc.		Textiles, Apparel & Luxury Goods			186		35,256
	LyondellBasell Industries NV, A		Chemicals			648		32,160
	MarketAxess Holdings Inc.		Capital Markets			54		17,959
	Mastercard Inc., A		IT Services			690		166,676
c	Match Group Inc.		Interactive Media & Services			42		2,774
	Maxim Integrated Products Inc.		Semiconductors & Semiconductor Equipment			471		22,895
	Medical Properties Trust Inc.		Equity Real Estate Investment Trusts (REITs	)		423		7,314
	Merck & Co. Inc.		Pharmaceuticals			2,292		176,346
c	Mettler-Toledo International Inc.		Life Sciences Tools & Services			27		18,644
	Microsoft Corp.		Software			1,323		208,650
c	Monster Beverage Corp.		Beverages			486		27,342
	Moody’s Corp.		Capital Markets			222		46,953
	NetApp Inc.		Technology Hardware, Storage & Peripherals			288		12,007
	NIKE Inc., B		Textiles, Apparel & Luxury Goods			2,034		168,293
	Nordstrom Inc.		Multiline Retail			195		2,991
	Nucor Corp.		Metals & Mining			378		13,616
c	NVR Inc.		Household Durables			7		17,984
c	O’Reilly Automotive Inc.		Specialty Retail			147		44,254
	Occidental Petroleum Corp.		Oil, Gas & Consumable Fuels			936		10,839
	OGE Energy Corp.		Electric Utilities			237		7,283
	Old Dominion Freight Line Inc.		Road & Rail			165		21,658
	Omnicom Group Inc.		Media			351		19,270
	PACCAR Inc.		Machinery			435		26,592
	Packaging Corp. of America		Containers & Packaging			111		9,638
	Paychex Inc.		IT Services			600		37,752
	PepsiCo Inc.		Beverages			1,449		174,025
	Pfizer Inc.		Pharmaceuticals			5,292		172,731
	Philip Morris International Inc.		Tobacco			2,313		168,756
	Phillips 66		Oil, Gas & Consumable Fuels			600		32,190
	PPL Corp.		Electric Utilities			825		20,361
	Public Service Enterprise Group Inc.		Multi-Utilities			753		33,817
	Public Storage		Equity Real Estate Investment Trusts (REITs	)		342		67,925
	PulteGroup Inc.		Household Durables			432		9,642
	Ralph Lauren Corp.		Textiles, Apparel & Luxury Goods			75		5,012
c	Regeneron Pharmaceuticals Inc.		Biotechnology			99		48,341
	Robert Half International Inc.		Professional Services			243		9,173
	Rockwell Automation Inc.		Electrical Equipment			144		21,731
	Rollins Inc.		Commercial Services & Supplies			249		8,999
	Ross Stores Inc.		Specialty Retail			777		67,576
	S&P Global Inc.		Capital Markets			384		94,099
	Seagate Technology PLC		Technology Hardware, Storage & Peripherals			591		28,841
	Simon Property Group Inc.		Equity Real Estate Investment Trusts (REITs	)		627		34,397
	Skyworks Solutions Inc.		Semiconductors & Semiconductor Equipment			348		31,104
	Snap-on Inc.		Machinery			84		9,141



franklintempleton.com	Annual Report	59

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United States (continued)
	Southwest Airlines Co.		Airlines			231	$	8,226
	Starbucks Corp.		Hotels, Restaurants & Leisure			2,277		149,690
	Steel Dynamics Inc.		Metals & Mining			285		6,424
	Sysco Corp.		Food & Staples Retailing			804		36,687
	T. Rowe Price Group Inc.		Capital Markets			195		19,042
	Tapestry Inc.		Textiles, Apparel & Luxury Goods			486		6,294
	Target Corp.		Multiline Retail			885		82,278
	TE Connectivity Ltd.		Electronic Equipment, Instruments & Components			441		27,774
	Texas Instruments Inc.		Semiconductors & Semiconductor Equipment			1,650		164,884
	The Gap Inc.		Specialty Retail			528		3,717
	The Hershey Co.		Food Products			321		42,533
	The Home Depot Inc.		Specialty Retail			813		151,795
	The Kroger Co.		Food & Staples Retailing			1,248		37,590
	The Procter & Gamble Co.		Household Products			1,620		178,200
	The TJX Cos. Inc.		Specialty Retail			2,478		118,473
	The Walt Disney Co.		Entertainment			1,302		125,773
	Tractor Supply Co.		Specialty Retail			213		18,009
	Tyson Foods Inc.		Food Products			501		28,993
c	Ulta Beauty Inc.		Specialty Retail			102		17,921
	United Parcel Service Inc., B		Air Freight & Logistics			1,002		93,607
	Valero Energy Corp.		Oil, Gas & Consumable Fuels			657		29,802
	Ventas Inc.		Equity Real Estate Investment Trusts (REITs	)		468		12,542
	Verizon Communications Inc.		Diversified Telecommunication Services			3,252		174,730
	VF Corp.		Textiles, Apparel & Luxury Goods			516		27,905
	ViacomCBS Inc., B		Media			744		10,423
	W.W. Grainger Inc.		Trading Companies & Distributors			81		20,129
	Walgreens Boots Alliance Inc.		Food & Staples Retailing			1,137		52,018
	Waste Management Inc.		Commercial Services & Supplies			468		43,318
c	Waters Corp.		Life Sciences Tools & Services			51		9,285
	WEC Energy Group Inc.		Multi-Utilities			504		44,418
	Western Union Co.		IT Services			438		7,941
	Xilinx Inc.		Semiconductors & Semiconductor Equipment			273		21,278


								8,594,555

	Total Common Stocks and Other Equity Interests (Cost $17,922,943)							15,706,862

	Management Investment Companies (Cost $234,568) 1.1%
	India 1.1%
	iShares MSCI India ETF		Diversified Financial Services			7,344		177,064

	Preferred Stocks 0.6%
	Brazil 0.3%
d	Itau Unibanco Holding SA, 8.709%, pfd.		Banks			5,700		25,376
d	Itausa-Investimentos Itau SA, 9.918%, pfd.		Banks			9,300		15,725
d	Telefonica Brasil SA, 6.951%, pfd.		Diversified Telecommunication Services			900		8,581

								49,682

	Colombia 0.0%^†
d	Grupo Aval Acciones y Valores SA, 6.689%, pfd.		Banks			1,515		335

	Germany 0.1%
d	Porsche Automobil Holding SE, 5.714%, pfd.		Automobiles			261		11,077

	Russia 0.1%
d	Surgutneftegas PJSC, 20.266%, pfd.		Oil, Gas & Consumable Fuels			17,616		8,477
d	Transneft PJSC, 7.246%, pfd.		Oil, Gas & Consumable Fuels			1		1,891

								10,368



60	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ Global Equity ETF (continued)



		Industry		Shares		Value
	Preferred Stocks (continued)
	South Korea 0.1%
d	LG Household & Health Care Ltd., 1.727%, pfd.		Personal Products		6	$	3,154
d	Samsung Electronics Co. Ltd., 2.651%, pfd.		Technology Hardware, Storage & Peripherals		711		23,421

							26,575

	Total Preferred Stocks (Cost $130,117)						98,037

	Total Investments (Cost $18,287,628) 99.5%						15,981,963
	Other Assets, less Liabilities 0.5%						77,478

	Net Assets 100.0%					$	16,059,441

^†Rounds to less than 0.1% of net assets.

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the aggregate value of these securities was $17,064, representing 0.1% of net assets.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the aggregate value of these securities was $49,959, representing 0.3% of net assets.

^cNon-income producing.

^dVariable rate security. The rate shown represents the yield at period end.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Index Contracts

MSCI All Country World Index

Long

45,090

6/19/20

3,852

*As of period end.

See Abbreviations on page 86.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	61

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ International Equity Hedged ETF



	Year Ended March 31,

	2020			2019			2018			2017^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.70		$	24.25		$	24.70		$	25.45


Income from investment operations^b:

Net investment income^c		0.89			0.93			0.77			0.52

Net realized and unrealized gains (losses)		(2.61	)		0.79			0.10			1.45


Total from investment operations		(1.72	)		1.72			0.87			1.97


Less distributions from:

Net investment income and net foreign currency gains		(0.19	)		(0.30	)		(1.32	)		(2.72	)

Net realized gains		(0.24	)		(0.97	)		—			—


Total distributions		(0.43	)		(1.27	)		(1.32	)		(2.72	)


Net asset value, end of year	$	22.55		$	24.70		$	24.25		$	24.70


Total return^d		(7.12)%			7.53%			3.47%			8.30%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.40%			0.40%			1.42%	^f		1.25%

Expenses net of waiver and payments by affiliates		0.40%			0.40%			0.40%	^f		0.40%

Net investment income		3.44%			3.75%			3.07%			2.47%

Supplemental data

Net assets, end of year (000’s)		$9,021			$7,410			$9,702			$9,880

Portfolio turnover rate^g		26.82%^h			39.24%			32.55%			19.09%

^aFor the period June 1, 2016 (commencement of operations) to March 31, 2017.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate includes portfolio transaction that are executed as result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”)

^hPortfolio turnover rate excluding cash creation for the year end March 31, 2020 was as follows: 26.82%



62	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin LibertyQ International Equity Hedged ETF



	Industry			Shares		Value
Common Stocks and Other Equity Interests 98.6%
Australia 19.4%
AGL Energy Ltd.		Multi-Utilities			2,260	$	23,778
Alumina Ltd.		Metals & Mining			10,344		9,243
Aristocrat Leisure Ltd.		Hotels, Restaurants & Leisure			1,824		23,835
Aurizon Holdings Ltd.		Road & Rail			6,532		16,911
Australia & New Zealand Banking Group Ltd.		Banks			5,976		62,033
Australian Stock Exchange Ltd.		Capital Markets			548		25,856
Bendigo and Adelaide Bank Ltd.		Banks			1,316		5,050
BHP Group Ltd.		Metals & Mining			8,876		157,436
Bluescope Steel Ltd.		Metals & Mining			1,624		8,578
Boral Ltd.		Construction Materials			1,580		1,982
Brambles Ltd.		Commercial Services & Supplies			5,352		34,591
Cimic Group Ltd.		Construction & Engineering			312		4,440
Coca-Cola Amatil Ltd.		Beverages			1,664		9,003
Cochlear Ltd.		Health Care Equipment & Supplies			228		26,158
Coles Group Ltd.		Food & Staples Retailing			2,316		21,489
Commonwealth Bank of Australia		Banks			4,096		154,980
Crown Resorts Ltd.		Hotels, Restaurants & Leisure			1,180		5,489
CSL Ltd.		Biotechnology			1,204		218,626
Dexus		Equity Real Estate Investment Trusts (REITs	)		3,368		18,738
Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure			180		1,092
Fortescue Metals Group Ltd.		Metals & Mining			6,788		41,546
Goodman Group		Equity Real Estate Investment Trusts (REITs	)		4,228		31,312
GPT Group		Equity Real Estate Investment Trusts (REITs	)		6,040		13,419
Harvey Norman Holdings Ltd.		Multiline Retail			2,196		3,965
James Hardie Industries PLC, CDI		Construction Materials			604		6,847
Magellan Financial Group Ltd.		Capital Markets			240		6,393
Medibank Private Ltd.		Insurance			10,516		17,121
Mirvac Group		Equity Real Estate Investment Trusts (REITs	)		11,076		14,168
National Australia Bank Ltd.		Banks			8,388		85,633
Newcrest Mining Ltd.		Metals & Mining			1,180		16,647
Qantas Airways Ltd.		Airlines			1,400		2,768
REA Group Ltd.		Interactive Media & Services			184		8,670
Rio Tinto Ltd.		Metals & Mining			1,592		82,404
Rio Tinto PLC		Metals & Mining			4,136		190,701
Scentre Group		Equity Real Estate Investment Trusts (REITs	)		13,724		13,146
Sonic Healthcare Ltd.		Health Care Providers & Services			1,292		19,239
South32 Ltd.		Metals & Mining			14,392		15,547
Telstra Corp. Ltd.		Diversified Telecommunication Services			15,524		29,170
Wesfarmers Ltd.		Multiline Retail			4,168		87,424
Westpac Banking Corp.		Banks			10,656		107,613
Woodside Petroleum Ltd.		Oil, Gas & Consumable Fuels			2,572		28,666
Woolworths Group Ltd.		Food & Staples Retailing			4,384		94,181


							1,745,888

Austria 0.1%
OMV AG		Oil, Gas & Consumable Fuels			440		12,147

Belgium 0.3%
Colruyt SA		Food & Staples Retailing			180		9,731
Proximus SADP		Diversified Telecommunication Services			548		12,549


							22,280

Denmark 3.9%
Coloplast AS, B		Health Care Equipment & Supplies			484		70,215
H. Lundbeck AS		Pharmaceuticals			92		2,730
Novo Nordisk AS, B		Pharmaceuticals			3,864		232,466
Novozymes AS		Chemicals			560		25,469



franklintempleton.com	Annual Report	63

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Denmark (continued)
	Pandora AS		Textiles, Apparel & Luxury Goods			476	$	15,461
	Tryg AS		Insurance			344		8,462


								354,803

	Finland 1.6%
	Elisa OYJ		Diversified Telecommunication Services			508		31,482
	Kone OYJ, B		Machinery			956		54,148
	Nokian Renkaat OYJ		Auto Components			424		10,268
	Orion OYJ		Pharmaceuticals			340		13,908
	UPM-Kymmene OYJ		Paper & Forest Products			1,376		37,881


								147,687

	France 4.6%
	Cie Generale des Etablissements Michelin SCA		Auto Components			492		43,760
	Covivio		Equity Real Estate Investment Trusts (REITs	)		120		6,761
	Eutelsat Communications SA		Media			412		4,307
	Hermes International		Textiles, Apparel & Luxury Goods			104		71,755
	Peugeot SA		Automobiles			2,020		26,963
	Renault SA		Automobiles			488		9,482
	Sanofi		Pharmaceuticals			2,452		215,613
	Societe Generale SA		Banks			2,112		35,567


								414,208

	Germany 1.4%
	Adidas AG		Textiles, Apparel & Luxury Goods			264		59,644
	Aroundtown SA		Real Estate Management & Development			2,436		12,172
	Continental AG		Auto Components			308		22,173
	Covestro AG		Chemicals			640		19,572
	Deutsche Lufthansa AG		Airlines			720		6,764
	TUI AG		Hotels, Restaurants & Leisure			1,308		5,884


								126,209

	Hong Kong 1.1%
	CK Infrastructure Holdings Ltd.		Electric Utilities			2,000		10,631
	HKT Trust and HKT Ltd.		Diversified Telecommunication Services			12,000		16,349
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			580		29,000
	Kerry Properties Ltd.		Real Estate Management & Development			2,500		6,596
	NWS Holdings Ltd.		Industrial Conglomerates			5,000		5,141
	Power Assets Holdings Ltd.		Electric Utilities			3,000		17,940
	Sino Land Co. Ltd.		Real Estate Management & Development			4,000		5,078
	Vitasoy International Holdings Ltd.		Food Products			1,600		4,851
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods			2,000		3,066


								98,652

	Ireland 0.0%^†
a	AIB Group PLC		Banks			1,756		1,969

	Israel 0.7%
	Bank Leumi Le-Israel BM		Banks			3,880		21,498
a	Check Point Software Technologies Ltd.		Software			372		37,401
	Israel Chemicals Ltd.		Chemicals			1,596		5,089


								63,988

	Italy 3.2%
	Enel SpA		Electric Utilities			18,920		131,598
	Ferrari NV		Automobiles			188		29,199
	Intesa Sanpaolo SpA		Banks			41,008		66,972
	Moncler SpA		Textiles, Apparel & Luxury Goods			572		20,894
b	Poste Italiane SpA, Reg S		Insurance			1,548		13,113



64	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF (continued)



	Industry			Shares		Value
Common Stocks and Other Equity Interests (continued)
Italy (continued)
Recordati SpA		Pharmaceuticals			248	$	10,487
Snam SpA		Gas Utilities			4,196		19,355


							291,618

Japan 24.3%
ABC-Mart Inc.		Specialty Retail			92		4,610
Advantest Corp.		Semiconductors & Semiconductor Equipment			460		18,493
Astellas Pharma Inc.		Pharmaceuticals			6,200		95,968
Bandai Namco Holdings Inc.		Leisure Equipment & Products			650		31,556
Bridgestone Corp.		Auto Components			1,900		58,484
CANON Inc.		Technology Hardware, Storage & Peripherals			2,700		59,000
Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals			300		34,737
Daito Trust Construction Co. Ltd.		Real Estate Management & Development			260		24,241
Daiwa House Industry Co. Ltd.		Real Estate Management & Development			1,500		37,203
Hoya Corp.		Health Care Equipment & Supplies			1,300		110,787
Iida Group Holdings Co. Ltd.		Household Durables			400		5,547
Isuzu Motors Ltd.		Automobiles			1,400		9,276
ITOCHU Corp.		Trading Companies & Distributors			4,500		93,476
Japan Airlines Co. Ltd.		Airlines			400		7,373
Japan Post Bank Co. Ltd.		Banks			1,200		11,082
Japan Tobacco Inc.		Tobacco			4,000		73,957
Kajima Corp.		Construction & Engineering			1,200		12,327
Kakaku.com Inc.		Interactive Media & Services			600		11,032
KAO Corp.		Personal Products			1,400		114,511
KDDI Corp.		Wireless Telecommunication Services			6,700		197,981
Koito Manufacturing Co. Ltd.		Auto Components			260		8,803
Marubeni Corp.		Trading Companies & Distributors			4,000		19,971
Mitsubishi Chemical Holdings Corp.		Chemicals			4,000		23,817
Mitsubishi Gas Chemical Co. Inc.		Chemicals			500		5,447
Mizuho Financial Group Inc.		Banks			56,400		64,574
MS&AD Insurance Group Holdings Inc.		Insurance			1,200		33,625
Nexon Co. Ltd.		Entertainment			1,100		17,984
Nippon Building Fund Inc.		Equity Real Estate Investment Trusts (REITs	)		2		13,413
Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services			4,600		109,743
NTT DOCOMO Inc.		Wireless Telecommunication Services			5,300		165,792
Obayashi Corp.		Construction & Engineering			1,800		15,440
Oracle Corp. Japan		Software			133		11,630
Oriental Land Co. Ltd.		Hotels, Restaurants & Leisure			290		37,125
ORIX Corp.		Diversified Financial Services			3,300		39,754
Pigeon Corp.		Household Products			300		11,519
Sekisui House Ltd.		Household Durables			2,000		33,060
Shin-Etsu Chemical Co. Ltd.		Chemicals			500		49,697
Shionogi & Co. Ltd.		Pharmaceuticals			900		44,327
Showa Denko K.K.		Chemicals			300		6,216
Softbank Corp.		Wireless Telecommunication Services			4,000		50,929
Subaru Corp.		Automobiles			2,000		38,414
Sumco Corp.		Semiconductors & Semiconductor Equipment			500		6,452
Sumitomo Chemical Co. Ltd.		Chemicals			3,600		10,704
Sumitomo Corp.		Trading Companies & Distributors			1,600		18,363
Taisei Corp.		Construction & Engineering			600		18,369
Teijin Ltd.		Chemicals			500		8,476
Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment			500		94,275
Tosoh Corp.		Chemicals			800		9,115
Toyota Motor Corp.		Automobiles			3,100		186,681
USS Co. Ltd.		Specialty Retail			600		8,259
Yamaha Motor Co. Ltd.		Automobiles			700		8,475
Zozo Inc.		Internet & Direct Marketing Retail			500		6,720


							2,188,810



franklintempleton.com	Annual Report	65

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Macau 0.8%
	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure			6,000	$	32,009
	Sands China Ltd.		Hotels, Restaurants & Leisure			9,600		35,175
	Wynn Macau Ltd.		Hotels, Restaurants & Leisure			3,600		5,472


								72,656

	Netherlands 0.9%
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing			3,532		82,490

	New Zealand 0.6%
	Fisher & Paykel Healthcare Corp. Ltd.		Health Care Equipment & Supplies			1,972		35,517
	Mercury NZ Ltd.		Electric Utilities			940		2,352
	Spark New Zealand Ltd.		Diversified Telecommunication Services			7,948		19,249


								57,118

	Norway 1.0%
	Equinor ASA		Oil, Gas & Consumable Fuels			1,496		18,684
	Mowi ASA		Food Products			1,500		22,662
	Orkla ASA		Food Products			1,908		16,175
	Telenor ASA		Diversified Telecommunication Services			2,404		34,774


								92,295

	Portugal 0.1%
	Jeronimo Martins SGPS SA		Food & Staples Retailing			720		12,988

	Russia 0.1%
	Evraz PLC		Metals & Mining			1,800		5,169

	Singapore 1.4%
	CapitaLand Mall Trust		Equity Real Estate Investment Trusts (REITs	)		7,200		9,052
	ComfortDelGro Corp. Ltd.		Road & Rail			7,100		7,580
	Jardine Cycle & Carriage Ltd.		Distributors			300		4,144
	Mapletree Commercial Trust		Equity Real Estate Investment Trusts (REITs	)		3,200		4,113
	SATS Ltd.		Transportation Infrastructure			2,400		5,326
	Singapore Exchange Ltd.		Capital Markets			3,700		23,881
	Singapore Technologies Engineering Ltd.		Aerospace & Defense			5,000		10,956
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services			26,400		47,095
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components			700		6,671
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery			7,600		4,430


								123,248

	Spain 3.8%
	Aena SME SA		Transportation Infrastructure			96		10,483
	Banco de Sabadell SA		Banks			15,136		7,789
	Enagas SA		Gas Utilities			592		11,754
	Endesa SA		Electric Utilities			1,080		23,073
	Iberdrola SA		Electric Utilities			13,492		133,000
	Industria de Diseno Textil SA		Specialty Retail			3,728		96,782
	Red Electrica Corp. SA		Electric Utilities			1,364		24,493
	Repsol SA		Oil, Gas & Consumable Fuels			3,876		35,436


								342,810

	Sweden 1.7%
	Atlas Copco AB		Machinery			1,120		33,122
	Boliden AB		Metals & Mining			804		14,712
	Hennes & Mauritz AB, B		Specialty Retail			2,864		37,001
	ICA Gruppen AB		Food & Staples Retailing			248		10,460
a	Skanska AB, B		Construction & Engineering			468		7,154
	Swedbank AB, A		Banks			2,236		25,017
	Telia Co. AB		Diversified Telecommunication Services			7,224		26,030


								153,496



66	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Switzerland 4.6%
	EMS-Chemie Holding AG		Chemicals			26	$	16,352
	Geberit AG		Building Products			116		51,073
	Partners Group Holding AG		Capital Markets			68		47,060
	Roche Holding AG		Pharmaceuticals			740		240,191
	SGS SA		Professional Services			7		16,220
	Swisscom AG		Diversified Telecommunication Services			80		43,012


								413,908

	United Kingdom 23.0%
	3i Group PLC		Capital Markets			2,656		26,089
	Admiral Group PLC		Insurance			780		21,568
	Anglo American PLC		Metals & Mining			3,112		54,655
	Auto Trader Group PLC		Interactive Media & Services			2,720		14,809
	BAE Systems PLC		Aerospace & Defense			9,036		58,463
	Barratt Developments PLC		Household Durables			4,132		22,594
	BHP Group PLC		Metals & Mining			6,036		93,704
	British American Tobacco PLC		Tobacco			3,388		115,904
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		2,784		11,606
	BT Group PLC		Diversified Telecommunication Services			30,096		43,997
	Burberry Group PLC		Textiles, Apparel & Luxury Goods			1,368		22,467
	Centrica PLC		Multi-Utilities			16,156		7,628
	Compass Group PLC		Hotels, Restaurants & Leisure			5,144		80,622
	Diageo PLC		Beverages			5,484		175,879
	Direct Line Insurance Group PLC		Insurance			4,520		16,584
	easyJet PLC		Airlines			476		3,370
	Experian PLC		Professional Services			2,576		71,899
	Ferguson PLC		Trading Companies & Distributors			328		20,563
	GlaxoSmithKline PLC		Pharmaceuticals			10,068		189,080
	Hargreaves Lansdown PLC		Capital Markets			976		16,773
	Imperial Brands PLC		Tobacco			3,860		71,640
	Intertek Group PLC		Professional Services			476		27,894
	ITV PLC		Media			14,092		11,536
	JD Sports Fashion PLC		Specialty Retail			588		3,337
	Kingfisher PLC		Specialty Retail			6,124		10,927
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		2,160		14,913
a	M&G PLC		Diversified Financial Services			4,280		5,976
	Marks & Spencer Group PLC		Multiline Retail			5,664		6,970
	Micro Focus International PLC		Software			532		2,639
	Mondi PLC		Paper & Forest Products			1,364		23,357
	Next PLC		Multiline Retail			568		28,679
	Pearson PLC		Media			1,948		13,348
	Persimmon PLC		Household Durables			1,500		35,645
	RELX PLC		Professional Services			6,612		141,999
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			4,376		76,995
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			3,140		52,943
	Smith & Nephew PLC		Health Care Equipment & Supplies			1,312		23,337
	SSE PLC		Electric Utilities			2,976		48,156
	Taylor Wimpey PLC		Household Durables			14,404		20,986
	The Berkeley Group Holdings PLC		Household Durables			448		20,081
	Unilever NV		Personal Products			3,732		183,474
	Unilever PLC		Personal Products			3,556		179,699


								2,072,785

	Total Common Stocks and Other Equity Interests (Cost $10,368,891)							8,897,222



franklintempleton.com	Annual Report	67

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF (continued)



		Industry		Shares		Value
	Preferred Stocks 0.3%
	Germany 0.3%
c	Fuchs Petrolub SE, 2.939%, pfd.		Chemicals		172	$	6,100
c	Porsche Automobil Holding SE, 5.714%, pfd.		Automobiles		472		20,032

	Total Preferred Stocks (Cost $38,777)						26,132

	Total Investments (Cost $10,407,668) 98.9%						8,923,354
	Other Assets, less Liabilities 1.1%						97,984

	Net Assets 100.0%					$	9,021,338

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^cVariable rate security. The rate shown represents the yield at period end.

At March 31, 2020 the Fund had the following forward exchange contracts outstanding. See Note 1(c).


Forward Exchange Contracts

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Australian Dollar		BOFA		Buy		3,184,700	$	1,853,814		4/02/20	$	95,382	$	—
Australian Dollar		BOFA		Sell		3,184,700		2,054,765		4/02/20		105,569		—
Australian Dollar		DBAB		Buy		3,184,700		1,949,196		4/02/20		1		—
Australian Dollar		DBAB		Sell		3,184,700		1,853,814		4/02/20		—		(95,382	)
Danish Krone		BOFA		Buy		2,422,600		356,228		4/02/20		—		(5	)
Danish Krone		BOFA		Sell		2,422,600		356,810		4/02/20		587		—
Euro		BOFA		Buy		1,773,700		1,946,221		4/02/20		—		(28	)
Euro		BOFA		Sell		1,773,700		1,951,985		4/02/20		5,792		—
Great British Pound		HSBK		Buy		654,915		812,068		4/02/20		—		(6	)
Great British Pound		BOFA		Buy		654,915		812,074		4/02/20		—		(12	)
Great British Pound		UBS AG		Buy		654,915		812,078		4/02/20		—		(16	)
Great British Pound		HSBK		Sell		654,915		837,211		4/02/20		25,149		—
Great British Pound		UBS AG		Sell		654,915		837,215		4/02/20		25,153		—
Great British Pound		BOFA		Sell		654,915		837,223		4/02/20		25,161		—
Hong Kong Dollar		MSCO		Buy		1,352,000		174,440		4/02/20		—		(9	)
Hong Kong Dollar		MSCO		Sell		1,352,000		173,499		4/02/20		—		(932	)
Israeli Shekel		BOFA		Buy		106,500		30,107		4/02/20		—		(1	)
Israeli Shekel		BOFA		Sell		106,500		30,548		4/02/20		442		—
Japanese Yen		BOFA		Buy		249,394,800		2,310,208		4/02/20		—		(34	)
Japanese Yen		BOFA		Sell		249,394,800		2,315,979		4/02/20		5,805		—
New Zealand Dollar		BOFA		Buy		90,400		53,593		4/02/20		1		—
New Zealand Dollar		BOFA		Sell		90,400		56,085		4/02/20		2,491		—
Norwegian Krone		BOFA		Buy		1,035,200		98,583		4/02/20		—		(1	)
Norwegian Krone		BOFA		Sell		1,035,200		109,309		4/02/20		10,727		—
Singapore Dollar		BOFA		Buy		207,800		145,945		4/02/20		—		(3	)
Singapore Dollar		BOFA		Sell		207,800		148,913		4/02/20		2,971		—
Swedish Krona		BOFA		Buy		1,803,800		182,063		4/02/20		—		(3	)
Swedish Krona		BOFA		Sell		1,803,800		186,322		4/02/20		4,261		—
Swiss Franc		MSCO		Buy		420,300		434,407		4/02/20		—		(11	)
Swiss Franc		MSCO		Sell		420,300		435,134		4/02/20		738		—
Australian Dollar		DBAB		Sell		2,656,500		1,626,150		5/04/20		—		(80	)
Danish Krone		BOFA		Sell		2,408,600		354,478		5/04/20		—		(92	)
Great British Pound		BOFA		Sell		553,632		686,918		5/04/20		—		(23	)
Great British Pound		HSBK		Sell		553,632		686,924		5/04/20		—		(17	)



68	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ International Equity Hedged ETF (continued)


Forward Exchange Contracts (continued)

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Great British Pound		UBS AG		Sell		553,632	$	686,932		5/04/20	$	—	$	(10	)
Israeli Shekel		BOFA		Sell		91,400		25,853		5/04/20		—		(13	)
New Zealand Dollar		BOFA		Sell		97,700		57,899		5/04/20		—		(7	)
Euro		BOFA		Sell		1,510,200		1,659,069		5/05/20		—		(101	)
Hong Kong Dollar		MSCO		Sell		1,093,700		141,073		5/05/20		—		(15	)
Norwegian Krone		BOFA		Sell		958,300		91,259		5/05/20		—		(16	)
Singapore Dollar		BOFA		Sell		172,300		121,056		5/05/20		—		(17	)
Swedish Krona		BOFA		Sell		1,503,500		151,846		5/05/20		—		(18	)
Swiss Franc		MSCO		Sell		404,200		418,407		5/05/20		—		(90	)
Japanese Yen		BOFA		Sell		245,325,800		2,275,994		5/07/20		—		(125	)

Total Forward Exchange Contracts											$	310,230	$	(97,067	)

Net unrealized appreciation (depreciation)													$	213,163

^aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

MSCI All Country World Index

Long

45,090

6/19/20

3,852

*As of period end.

See abbreviations on page 86.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	69

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2020



	Franklin LibertyQ Emerging Markets ETF			Franklin LibertyQ Global Dividend ETF			Franklin LibertyQ Global Equity ETF			Franklin LibertyQ International Equity Hedged ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	68,420,142		$	24,103,208		$	18,287,628		$	10,407,668

Value – Unaffiliated issuers	$	56,819,967		$	18,543,653		$	15,981,963		$	8,923,354
Cash		—			—			—			4,023
Foreign currency, at value (cost $63,532, $25,300, 12,905 and $22,554)		63,283			25,038			12,877			22,530
Receivables:
Investment securities sold		83			—			—			—
Dividends and interest		800,378			101,443			63,936			73,758
Variation margin on futures contracts		6,000			484			486			462
Deposits with brokers for:
Futures contracts		88,000			8,285			8,285			8,285
Unrealized appreciation on OTC forward exchange contracts		—			—			—			310,230

Total assets		57,777,711			18,678,903			16,067,547			9,342,642

Liabilities:
Payables:
Management fees		27,170			7,610			4,760			3,085
Investment securities purchased		—			—			—			221,152
Funds advanced by custodian		39,813			17,935			3,346			—
Unrealized depreciation on OTC forward exchange contracts		—			—			—			97,067

Total liabilities		66,983			25,545			8,106			321,304

Net assets, at value	$	57,710,728		$	18,653,358		$	16,059,441		$	9,021,338

Net assets consist of:
Paid-in capital	$	97,678,961		$	24,735,248		$	18,706,462		$	9,786,556
Total distributable earnings (loss)		(39,968,233	)		(6,081,890	)		(2,647,021	)		(765,218	)

Net assets, at value	$	57,710,728		$	18,653,358		$	16,059,441		$	9,021,338

Shares outstanding		2,600,000			800,000			600,000			400,000

Net asset value per share	$	22.20		$	23.32		$	26.77		$	22.55



70	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2020



	Franklin LibertyQ Emerging Markets ETF			Franklin LibertyQ Global Dividend ETF			Franklin LibertyQ Global Equity ETF			Franklin LibertyQ International Equity Hedged ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	12,979,458		$	806,557		$	641,859		$	349,973
Interest from securities loaned: Note 1(d)
Unaffiliate issuers (net of fees and rebates):		2,191			—			(70	)		—
Non-Controlled affiliates (Note 3c)		4,287			2,676			2,056			—

Total investment income		12,985,936			809,233			643,845			349,973

Expenses:
Management fees (Note 3a)		1,344,658			89,893			70,337			36,434
Other		1,741			103			165			14

Total expenses		1,346,399			89,996			70,502			36,448
Expenses waived/paid by affiliates (Note 3c)		(932	)		(24	)		(1,689	)		—

Net expenses		1,345,467			89,972			68,813			36,448

Net investment income		11,640,469			719,261			575,032			313,525

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(14,244,683	)		(600,920	)		(439,631	)		(37,616	)
In-kind redemptions		7,703,285			2,237,611			2,201,824			—
Foreign currency transactions		(618,839	)		(1,299	)		(5,908	)		(61,048	)
Forward exchange contracts		—			(1,840	)		(98	)		482,496
Futures contracts		(422,200	)		(10,861	)		(10,726	)		(9,569	)

Net realized gain (loss)		(7,582,437	)		1,622,691			1,745,461			374,263

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(22,739,670	)		(6,646,455	)		(4,249,796	)		(1,671,538	)
Translation of other assets and liabilities denominated in foreign currencies		(63,110	)		415			(798	)		(564	)
Futures contracts		34,626			3,455			2,159			2,981
Forward exchange contracts		—			—			—			151,485
Change in deferred taxes on unrealized appreciation		652,818			—			—			—

Net change in unrealized appreciation (depreciation)		(22,115,336	)		(6,642,585	)		(4,248,435	)		(1,517,636	)

Net realized and unrealized gain (loss)		(29,697,773	)		(5,019,894	)		(2,502,974	)		(1,143,373	)

Net increase (decrease) in net assets resulting from operations	$	(18,057,304	)	$	(4,300,633	)	$	(1,927,942	)	$	(829,848	)


^aForeign taxes withheld on dividends	$	1,604,468	$	50,494	$	35,296	$	25,050



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	71

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin LibertyQ Emerging Markets ETF						Franklin LibertyQ Global Dividend ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	11,640,469		$	12,098,074		$	719,261		$	567,843
Net realized gain (loss)		(7,582,437	)		3,121,528			1,622,691			(35,818	)
Net change in unrealized appreciation (depreciation)		(22,115,336	)		(48,192,220	)		(6,642,585	)		24,564

Net increase (decrease) in net assets resulting from operations		(18,057,304	)		(32,972,618	)		(4,300,633	)		556,589

Distributions to shareholders (Note 1f)		(13,252,802	)		(11,215,046	)		(632,323	)		(569,521	)

Capital share transactions: (Note 2)		(255,463,490	)		(12,217,518	)		6,666,193			—

Net increase (decrease) in net assets		(286,773,596	)		(56,405,182	)		1,733,237			(12,932	)
Net assets:
Beginning of year		344,484,324			400,889,506			16,920,121			16,933,053

End of year (Note 1f)	$	57,710,728		$	344,484,324		$	18,653,358		$	16,920,121



72	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin LibertyQ Global Equity ETF						Franklin LibertyQ International Equity Hedged ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	575,032		$	556,124		$	313,525		$	263,448
Net realized gain (loss)		1,745,461			1,079,731			374,263			968,490
Net change in unrealized appreciation (depreciation)		(4,248,435	)		(576,560	)		(1,517,636	)		(494,713	)

Net increase (decrease) in net assets resulting from operations		(1,927,942	)		1,059,295			(829,848	)		737,225

Distributions to shareholders (Note 1f)		(618,417	)		(478,140	)		(155,010	)		(380,919	)

Capital share transactions: (Note 2)		(6,115,499	)		6,058,346			2,596,506			(2,648,534	)

Net increase (decrease) in net assets		(8,661,858	)		6,639,501			1,611,648			(2,292,228	)
Net assets:
Beginning of year		24,721,299			18,081,798			7,409,690			9,701,918

End of year (Note 1f)	$	16,059,441		$	24,721,299		$	9,021,338		$	7,409,690



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	73

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of forty-two separate funds, four of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Each of the Funds are an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of each Fund’s corresponding underlying index.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

The Funds’ investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Funds calculate the net asset value (NAV) per share as of 4 p.m. Eastern time each day the New York Stock Exchange (NYSE) is open for trading. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Funds’ administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

Equity securities, exchange traded funds and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

Investments in open-end mutual funds are valued at the closing NAV.

Certain derivative financial instruments are centrally cleared or trade in the OTC market. The Funds’ pricing services use various techniques including industry standard option pricing models and proprietary discounted cash flow models to determine the fair value of those instruments. The Funds’ net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.

The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.

Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Funds’ business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Funds’ portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. The VC monitors price movements for significant events following the close of trading in foreign stock markets through a series of country specific market proxies (such as baskets of American Depositary Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred that may call into question the reliability of the values of the foreign securities held by the Funds. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.



74	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Funds’ NAV is not calculated, which could result in differences between the value of the Funds’ portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Funds for financial reporting purposes

b. Foreign Currency Translation

Portfolio securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against U.S. dollars on the date of valuation. The Funds may enter into foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date. Portfolio securities and assets and liabilities denominated in foreign currencies contain risks that those currencies will decline in value relative to the U.S. dollar. Occasionally, events may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established and approved by the Board.

The Funds do not separately report the effect of changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and unrealized gain or loss from investments in the Statements of Operations.

When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the funds’ NAV is not calculated, which could result in differences between the value of the Funds’ portfolio securities on the lastÛusiness day and the last calendar day of the reporting period. Any significant security valuation changes due to an openßoreign market are adjusted and reflected by the Funds for financial reporting purposes.

Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise

from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities held at the end of the reporting period.

c. Derivative Financial Instruments

Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statements of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statements of Operations.

Collateral requirements differ by type of derivative. Collateral terms are contract specific for OTC derivatives. For OTC derivatives traded under an ISDA master agreement, posting of collateral is required by either the Fund or the applicable counterparty if the total net exposure of all OTC derivatives with the applicable counterparty exceeds the minimum transfer amount, which typically ranges from $100,000 to $250,000, and can vary depending on the counterparty and the type of the agreement. Generally, collateral is determined at the close of Fund business each day and any additional collateral required due to changes in derivative values may be delivered by the Fund or the counterparty the next business day, or within a few business days. Collateral pledged and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.



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1. Organization and Significant Accounting Policies (continued)

c. Derivative Financial Instruments (continued)

by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.

Certain or all Funds entered into OTC forward exchange contracts primarily to manage and/or gain exposure to certain foreign currencies. A forward exchange contract is an agreement between the Fund and a counterparty to buy or sell a foreign currency at a specific exchange rate on a future date.

See Note 8 regarding other derivative information.

d. Securities Lending

Certain or all Funds participate in an agency based securities lending program to earn additional income. The Fund receives cash collateral against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. The collateral is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statements of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. At March 31, 2020, the Funds had no securities on loan.

e. Income and Deferred Taxes

It is each Fund’s policy to qualify as a regulated investment company under the Internal Revenue Code. Each Fund intends to distribute to shareholders substantially all of its taxable income and net realized gains to relieve it from federal income and excise taxes. As a result, no provision for U.S. federal income taxes is required.

The Funds may be subject to foreign taxation related to income received, capital gains on the sale of securities and certain foreign currency transactions in the foreign jurisdictions in which the Funds invest. Foreign taxes, if any, are recorded based on the tax regulations and rates that exist in the foreign markets in which the Funds invest. When a capital gain tax is determined to apply, certain or all Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

Each Fund may recognize an income tax liability related to its uncertain tax positions under U.S. GAAP when the uncertain tax position has a less than 50% probability that it will be sustained upon examination by the tax authorities based on its technical merits. As of March 31, 2020, each Fund has determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

f. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest Income and estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date except for certain dividends from securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Funds or by the investment manager, as applicable, according to the terms of the unified management fee agreement.



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g. Accounting Estimates

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

h. Guarantees and Indemnifications

Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities

arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.

2. Shares of Beneficial Interest

Shares of the Funds are issued and redeemed at their respective NAV only in aggregations of a specified number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Funds. Once created, shares of the Funds generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).

Authorized Participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Funds regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Funds.

In addition, for cash Creation Unit transactions, a variable fee for creation transactions and redemption transactions may be charged to the Authorized Participant to cover certain brokerage, tax, foreign exchange, execution, market impact and other costs and expenses related to the execution of trades. Variable fees, if any, are included in capital share transactions in the Statements of Changes in Net Assets.



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)

At March 31, 2020, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin LibertyQ Emerging Markets ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		400,000		$	12,375,393			4,000,000		$	121,573,734
Shares redeemed		(9,400,000	)		(267,838,883	)		(4,400,000	)		(133,791,252	)

Net increase (decrease)		(9,000,000	)	$	(255,463,490	)		(400,000	)	$	(12,217,518	)


	Franklin LibertyQ Global Dividend ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		800,000		$	23,907,607			—		$	—
Shares redeemed		(600,000	)		(17,241,414	)		—			—

Net increase (decrease)		200,000		$	6,666,193			—		$	—


	Franklin LibertyQ Global Equity ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		200,000		$	6,595,214			400,000		$	12,112,015
Shares redeemed		(400,000	)		(12,710,713	)		(200,000	)		(6,053,669	)

Net increase (decrease)		(200,000	)	$	(6,115,499	)		200,000		$	6,058,346


	Franklin LibertyQ International Equity Hedged ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		100,000		$	2,596,506			100,000		$	2,422,854
Shares redeemed		—			—			(200,000	)		(5,071,388	)

Net increase (decrease)		100,000		$	2,596,506			(100,000	)	$	(2,648,534	)

3. Transactions with Affiliates

Franklin Resources, Inc. is the holding company for various subsidiaries that together are referred to as Franklin Templeton. Certain officers and trustees of the Funds are also officers and/or directors of the following subsidiaries:



Subsidiary		Affiliation
Franklin Advisers, Inc (Advisers)		Investment manager
Franklin Advisory Services, LLC (FASL)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter



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a. Management Fees

The Funds pay a unified management fee to Advisors whereby Advisors has agreed to reimburse the Funds’ acquired fund fee and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The fees are based on the daily net assets of each of the Funds as follows:



		Annualized Fee Rate
Franklin LibertyQ Emerging Markets ETF		0.45%
Franklin LibertyQ Global Dividend ETF		0.45%
Franklin LibertyQ Global Equity ETF		0.35%
Franklin LibertyQ International Equity Hedged ETF		0.40%

Prior to August 1, 2019, the Franklin LibertyQ Emerging Markets ETF paid fees to Franklin Advisers, Inc. of 0.55% per year based on the average daily net assets of the Fund.

b. Administrative Fees

Under an agreement with Advisers, FT Services provides administrative services to the Funds. The fee is paid by Advisers based on the Funds’ average daily net assets, and is not an additional expense of the Funds.

c. Investments in Affiliated Management Investment Companies

Certain or all Funds invest in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. Management fees paid by the Funds are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the year ended March 31, 2020, investments in affiliated management investment companies were as follows:



	Value at Beginning of Year		Purchases		Sales			Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Year		Number of Shares Held at End of Year		Investment Income
Franklin LibertyQ Emerging Markets ETF																Income from Securities loaned
Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	—	$	10,913,349	$	(10,913,349	)	$	—	$	—	$	—	$	—	$	4,287


Franklin LibertyQ Global Dividend ETF																Income from Securities loaned
Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	—	$	—	$	—		$	—	$	—	$	—	$	—	$	2,676


Franklin LibertyQ Global Equity ETF																Income from Securities loaned
Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	—	$	921,386	$	(921,386	)	$	—	$	—	$	—	$	—	$	1,986



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

d. Other Affiliated Transactions

At March 31, 2020, the shares of the Funds were owned by the following entities:



Funds	Shares		Percentage of Outstanding Shares^a
Franklin LibertyQ Emerging Markets ETF
Franklin 529 Portfolios		1,149,477		44.2%


Franklin LibertyQ Global Equity ETF
Franklin Resources Inc.		64,000		10.7%


Franklin LibertyQ International Equity Hedged ETF
Franklin Resources Inc.		37,000		9.3%

^aInvestment activities of significant shareholders could have a material impact on the Funds.

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2020, the capital loss carryforwards were as follows:



	Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
Capital loss carryforwards not subject to expiration:
Short term	$	14,909,865	$	132,428	$	274,474	$	—
Long term		11,615,623		477,064		151,477		—

Total capital loss carryforwards	$	26,525,488	$	609,492	$	425,951	$	—

The tax character of distributions paid during the years ended March 31, 2020 and 2019, were as follows:



	Franklin LibertyQ Emerging Markets ETF				Franklin LibertyQ Global Dividend ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	13,252,802	$	11,215,046	$	632,323	$	569,512


	Franklin LibertyQ Global Equity ETF				Franklin LibertyQ International Equity Hedged ETF

	2020		2019		2020		2019
Distributions paid from:
Ordinary income	$	618,417	$	478,140	$	57,514	$	80,011
Long-term Capital Gain	$	—	$	—	$	97,496	$	300,908

	$	618,417	$	478,140	$	155,010	$	380,919



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At March 31, 2020, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Franklin LibertyQ Emerging Markets ETF			Franklin LibertyQ Global Dividend ETF			Franklin LibertyQ Global Equity ETF			Franklin LibertyQ International Equity Hedged ETF
Cost of investments	$	70,239,551		$	24,159,893		$	18,335,290		$	10,472,205

Unrealized appreciation	$	4,731,389		$	201,282		$	786,836		$	692,987
Unrealized depreciation		18,150,972			(5,817,522	)		(3,140,163	)		(2,241,838	)

Net unrealized appreciation (depreciation)	$	(13,419,583	)	$	(5,616,240	)	$	(2,353,327	)	$	(1,548,851	)

Distributable earnings – undistributed ordinary income	$	55,446		$	144,131		$	133,596		$	554,685

Undistributed Long-term Capital Gain		—			—			—		$	229,869

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of corporate actions, passive foreign investment company shares and wash sales.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2020, were as follows:



	Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
Purchases	$	117,333,443	$	5,142,877	$	5,585,932	$	3,209,576
Sales	$	260,686,860	$	3,904,571	$	6,321,684	$	2,408,543

In-kind transactions associated with creation and redemptions for the year ended March 31, 2020, were as follows:



	Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
Cost of Securities Received	$	5,569,479	$	22,210,561	$	6,005,359	$	2,563,003
Value of Securities Delivered^a	$	119,051,278	$	16,741,195	$	11,337,067	$	—

^aRealized gains and losses from in-kind redemptions, as shown on the Statement of Operations, are not recognized by the Funds for tax purposes.

6. Concentration of Risk

Investing in foreign securities may include certain risks and considerations not typically associated with investing in U.S. securities, such as fluctuating currency values and changing local, regional and global economic, political and social conditions, which may result in greater market volatility. Current political and financial uncertainty surrounding the European Union may increase market volatility and the economic risk of investing in securities in Europe. In addition, certain foreign securities may not be as liquid as U.S. securities.



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6. Concentration of Risk (continued)

sanctions. In addition, if the Fund holds the securities of an issuer that is subject to such sanctions, an immediate freeze of that issuer’s securities could result, impairing the ability of the Fund to buy, sell, receive or deliver those securities. There is also the risk that countermeasures could be taken by Russia’s government, which could involve the seizure of the Fund’s assets. These risks could affect the value of the Funds’ portfolio. While the Funds hold securities of certain issuers impacted by the sanctions, existing investments do not presently violate the applicable terms and conditions of the sanctions. The sanctions currently do not affect the Fund’s ability to sell these securities. At March 31, 2020, Franklin LibertyQ Emerging Markets ETF had 9.0% of its net assets invested in Russia. The remaining Funds in the Trust did not have significant investment in Russia.

7. Novel Coronavirus Pandemic

The global outbreak of the novel coronavirus disease, known as COVID-19, has caused adverse effects on many companies, sectors, nations, regions and the markets in general, and may continue for an unpredictable duration. The effects of this pandemic may materially impact the value and performance of the Funds, their ability to buy and sell fund investments at appropriate valuations and their ability to achieve their investment objectives.

8. Other Derivative Information

At March 31, 2020, the Funds’ investments in derivative contracts are reflected in the Statements of Assets and Liabilities as follows:



	Asset Derivatives				Liability Derivatives

	Statements of Assets and Liabilities Location	Fair Value			Statements of Assets and Liabilities Location	Fair Value
Franklin LibertyQ Emerging Markets ETF

Equity contracts	Variation margin on futures contracts	$	50,836	^a	Variation margin on futures contracts	$	—

Franklin LibertyQ Global Equity ETF

Equity contracts	Variation margin on futures contracts	$	3,852	^a	Variation margin on futures contracts	$	—

Franklin LibertyQ Global Dividend ETF

Equity contracts	Variation margin on futures contracts	$	3,852	^a	Variation margin on futures contracts	$	—

Franklin LibertyQ International Equity Hedged ETF

Equity contracts	Variation margin on futures contracts	$	3,852	^a	Variation margin on futures contracts	$	—

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts		310,230		Unrealized depreciation on OTC forward exchange contracts		97,067

Totals		$	314,082			$	97,067

^aThis amount reflects the cumulative appreciation (depreciation) of futures contracts as reported in the Statement of Investments. Only the variation margin receivable/payable at period end is separately reported within the Statements of Assets and Liabilities. Prior variation margin movements were recorded to cash upon receipt or payment.



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NOTES TO FINANCIAL STATEMENTS

For the year ended March 31, 2020, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:



Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period			Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period
Franklin LibertyQ Emerging Markets ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contract	Futures contracts	$	(422,200	)	Futures contracts	$	34,626

Franklin LibertyQ Global Dividend ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contract	Futures contracts	$	(10,861	)	Futures contracts	$	3,455

Foreign exchange contracts	Forward exchange contract		(1,840	)	Forward exchange contract		—


Totals		$	(12,701	)		$	3,455

Franklin LibertyQ Global Equity ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contract	Futures contracts	$	(10,726	)	Futures contracts	$	2,159

Foreign exchange contracts	Forward exchange contract		(98	)	Forward exchange contract		—


Totals		$	(10,824	)		$	2,159

Franklin LibertyQ International Equity Hedged ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contract	Futures contracts	$	(9,569	)	Futures contracts	$	2,981

Foreign exchange contracts	Forward exchange contract		482,496		Forward exchange contract		151,485


Totals		$	472,927			$	154,466

For the year ended March 31, 2020, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts were as follows:



	Franklin LibertyQ Emerging Markets ETF		Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
Futures contracts	$	1,461,357	$	51,862	$	73,277	$	49,828
Forward exchange contracts	$	—	$	—	$	—	$	27,513,076



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NOTES TO FINANCIAL STATEMENTS

8. Other Derivative Information (continued)

At March 31, 2020, the Funds’ OTC derivative assets and liabilities are as follows:



	Gross and Net Amounts of Assets and Liabilities Presented in the Statements of Assets and Liabilities

	Assets^a		Liabilities^a
Franklin LibertyQ International Equity Hedged ETF
Forward exchange contracts	$	310,230	$	97,067

^aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities.

At March 31, 2020, the Funds’ OTC derivative assets, which may be offset against the Funds’ OTC derivative liabilities and collateral received from the counterparty, are as follows:



			Amounts Not Offset in the Statements of Assets and Liabilities

	Gross and Net Amounts of Assets Presented in the Statements of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Received^a		Cash Collateral Received^a		Net Amount (Not less than zero)
Franklin LibertyQ International Equity Hedged ETF
Counterparty
BOFA	$	259,189	$	(499	)	$	—	$	—	$	258,690
DBAB		1		(1	)		—		—		—
HSBK		25,149		(23	)		—		—		25,126
MSCO		738		(738	)		—		—		—
UBS AG		25,153		(26	)		—		—		25,127

Total	$	310,230	$	(1,287	)	$	—	$	—	$	308,943

At March 31, 2020, the Funds’ OTC derivative liabilities, which may be offset against the Funds’ OTC derivative assets and collateral pledged to the counterparty, are as follows:



			Amounts Not Offset in the Statements of Assets and Liabilities

	Gross and Net Amounts of Liabilities Presented in the Statements of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Pledged^a		Cash Collateral Pledged^a		Net Amount (Not less than zero)
Franklin LibertyQ International Equity Hedged ETF
Counterparty
BOFA	$	499	$	(499	)	$	—	$	—	$	—
DBAB		95,462		(1	)		—		—		95,461
HSBK		23		(23	)		—		—		—
MSCO		1,057		(738	)		—		—		319
UBS AG		26		(26	)		—		—		—

Total	$	97,067	$	(1,287	)	$	—	$	—	$	95,780

See Note 1(c) regarding derivative financial instruments.

See abbreviations on page 86



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements

The Funds follow a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Funds’ own market assumptions (unobservable inputs). These inputs are used in determining the value of the Funds’ financial instruments and are summarized in the following fair value hierarchy:

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

A summary of inputs used as of March 31, 2020, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3		Total

Franklin LibertyQ Emerging Markets ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	56,819,967	$	—	$	—	$	56,819,967

Other Financial Instruments:
Futures Contracts	$	50,836	$	—	$	—	$	50,836


Franklin LibertyQ Global Dividend ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	18,543,653	$	—	$	—	$	18,543,653

Other Financial Instruments:
Futures Contracts	$	3,852	$	—	$	—	$	3,852


Franklin LibertyQ Global Equity ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	15,981,308	$	655	$	—	$	15,981,963

Other Financial Instruments:
Futures Contracts	$	3,852	$	—	$	—	$	3,852


Franklin LibertyQ International Equity Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	8,922,262	$	1,092	$	—	$	8,923,354

Other Financial Instruments:
Forward Exchange Contracts		—		310,230		—		310,230
Futures Contracts		3,852		—		—		3,852

Total Other Financial Instruments	$	3,852	$	310,230	$	—	$	314,082

Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	97,067	$	—	$	97,067

^aFor detailed categories, see the accompanying Statement of Investments.

^bIncludes common and preferred stocks.



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NOTES TO FINANCIAL STATEMENTS

10. Subsequent Events

The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.

Abbreviations


Selected Portfolio		Counterparty
ADR	American Depositary Receipt	BOFA	Bank of America Corp.
ETF	Exchange Traded Fund	HSBK	HSBC Bank PLC
GDR	Global Depositary Receipt	IDR	International Depository Receipt
IDR	International Depositary Receipt	MSCO	Morgan Stanley
NVDR	Non-Voting Depositary Receipt	UBSW	UBS AG
REIT	Real Estate Investment Trust



86	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin LibertyQ Emerging Markets ETF, Franklin LibertyQ Global Dividend ETF, Franklin LibertyQ Global Equity ETF, and Franklin LibertyQ International Equity Hedged ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin LibertyQ Emerging Markets ETF, Franklin LibertyQ Global Dividend ETF, Franklin LibertyQ Global Equity ETF, and Franklin LibertyQ International Equity Hedged ETF (the “Funds”) as of March 31, 2020, the related statements of operations for the year ended March 31, 2020, the statements of changes in net assets for each of the two years in the period ended March 31, 2020, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2020, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2020 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ 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 Funds 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 March 31, 2020 by correspondence with the custodians 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 opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 19, 2020

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.



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FRANKLIN TEMPLETON ETF TRUST

Tax information (unaudited)

Under Section 852(b)(3)(C) of the Internal Revenue Code, Franklin LibertyQ International Equity Hedged hereby reports the maximum amount allowable but no less than $97,496 as a long term capital gain dividend for the fiscal year ended March 31, 2020.

Under Section 854(b)(1)(A) of the Internal Revenue Code, the Funds hereby report the following percentage amounts of the ordinary income dividends as income qualifying for the dividends received deduction for the fiscal year ended March 31, 2020.



Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF
	31.32%		43.95%

Under Section 854(b)(1)(B) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as qualified dividends for purposes of the maximum rate under Section 1(h)(11) of the Internal Revenue Code for the fiscal year ended March 31, 2020.



Franklin LibertyQ Emerging Markets ETF	Franklin LibertyQ Global Dividend ETF		Franklin LibertyQ Global Equity ETF		Franklin LibertyQ International Equity Hedged ETF
$9,269,774		$739,773		$597,975		$346,564

Distributions, including qualified dividend income, paid during calendar year 2020 will be reported to shareholders on Form 1099-DIV by mid-February 2021. Shareholders are advised to check with their tax advisors for information on the treatment of these amounts on their individual income tax returns.

At March 31, 2020, more than 50% of the following Funds’ total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Funds on these investments. The Funds elect to treat foreign taxes paid as allowed under Section 853 of the Internal Revenue Code. This election will allow shareholders of record as of the June 2020 distribution, to treat their proportionate share of foreign taxes paid by the Funds as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.

Franklin LibertyQ Emerging Markets ETF

Franklin LibertyQ Global Dividend ETF

Franklin LibertyQ International Equity Hedged ETF



88	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Board Members and Officers

The name, year of birth and address of the officers and board members, as well as their affiliations, positions held with the Trust, principal occupations during at least the past five years and number of U.S. registered portfolios overseen in the Franklin Templeton fund complex, are shown below. Generally, each board member serves until that person’s successor is elected and qualified.

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee and Trustee	Since 2016	44	Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and FlipKart Limited (2019-present) (eCommerce company); formerly, CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since January 2020	44	Fluor Corporation (construction and engineering) (2014-present), IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present) and Focus Financial Partner, LLC (financial services) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	44	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); and formerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).



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Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	49	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, President and Director, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; and formerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Interim Chief Compliance Officer	Since January 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 41 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	Vice President – AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 41 of the investment companies in Franklin Templeton.



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Interested Board Members and Officers (continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer – Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; and formerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since May 2019	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of two of the investment companies in Franklin Templeton.

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 41 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 41 of the investment companies in Franklin Templeton.

*We base the number of portfolios on each separate series of the U.S. registered investment companies within the Franklin Templeton fund complex. These portfolios have a common investment manager or affiliated investment managers.

**Jennifer M. Johnson is considered to be an interested person of the Fund under the federal securities laws due to her position as an officer and director of Franklin Resources, Inc. (Resources), which is the parent company of the Fund’s investment manager and distributor.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.

The Sarbanes-Oxley Act of 2002 and Rules adopted by the Securities and Exchange Commission require the Fund to disclose whether the Fund’s Audit Committee includes at least one member who is an audit committee financial expert within the meaning of such Act and Rules. The Fund’s Board has determined that there is at least one such financial expert on the Audit Committee and has designated Rohit Bhagat as its audit committee financial expert. The Board believes that Mr. Bhagat qualifies as such an expert in view of his extensive business background and experience, including extensive experience in the asset management and financial services industries. Mr. Bhagat has been a Member and Chairman of the Fund’s Audit Committee since 2016. As a result of such background and experience, the Board believes that Mr. Bhagat has acquired an understanding of generally accepted accounting principles and financial statements, the general application of such principles in connection with the accounting estimates, accruals and reserves, and analyzing and evaluating financial statements that present a breadth and level of complexity of accounting issues generally comparable to those of the Fund, as well as an understanding of internal controls and procedures for financial reporting and an understanding of audit committee functions. Mr. Bhagat is an independent Board member as that term is defined under the relevant Securities and Exchange Commission Rules and Releases.

The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request.

Shareholders may call (800) DIAL BEN/342-5236 to request the SAI.



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Shareholder Information

Proxy Voting Policies and Procedures

The Trust’s investment manager has established Proxy Voting Policies and Procedures (Policies) that the Trust uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Trust’s complete Policies online at franklintempleton.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Trust’s proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Statement of Investments

The Trust files a complete statement of investments with the U.S. Securities and Exchange Commission for the first and third quarters for each fiscal year as an exhibit to its report on Form N-PORT. Shareholders may view the filed Form N-PORT by visiting the Commission’s website at sec.gov. The filed form may also be viewed and copied at the Commission’s Public Reference Room in Washington, DC. Information regarding the operations of the Public Reference Room may be obtained by calling (800) SEC-0330.

Premium/Discount Information

Information about the differences between the daily market price on the secondary market for the shares of the Funds and the Funds’ net asset value may be found on the Funds’ website at franklintempleton.com.



92	Annual Report	franklintempleton.com

Authorized for distribution only when accompanied or preceded by a summary prospectus and/or prospectus. Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. A prospectus contains this and other information; please read it carefully before investing.

To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2020

LOGO


Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Core Bond ETF
Franklin Liberty U.S. Low Volatility ETF

Franklin Templeton



Contents

Annual Report

Franklin Liberty Investment Grade Corporate ETF			2
Franklin Liberty U.S. Low Volatility ETF			9
Franklin Liberty U.S. Core Bond ETF			16
Financial Highlights and Statements of Investments			23
Financial Statements			42
Notes to Financial Statements			46
Report of Independent Registered Public Accounting Firm			57
Tax Information			58
Board Members and Officers			59
Shareholder Information			62

Visit franklintempleton.com/investor/investments-and-solutions/investment-options/etfs/ for fund updates and documents.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



franklintempleton.com	Not part of the annual report	1

ANNUAL REPORT

Franklin Liberty Investment Grade Corporate ETF

This annual report for Franklin Liberty Investment Grade Corporate ETF covers the period ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks a high level of current income as is consistent with prudent investing, while seeking preservation of capital. Under normal market conditions, the Fund invests at least 80% of its net assets in investment-grade corporate debt securities and investments.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +3.25% based on market price and +4.02% based on net asset value (NAV).¹ In comparison, the Bloomberg Barclays U.S. Corporate Investment Grade Index posted a +4.98% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.

Economic and Market Overview

The U.S. bond market’s performance during the 12-month period, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, was defined by two phases: before and during the outbreak of the novel coronavirus (COVID-19) in the country. Until late February 2020, prices for most U.S. bonds rose, as low inflation, interest-rate cuts and strong demand for yield, which moves inversely to price, supported fixed-income markets. In late February, as more countries adopted social distancing and lockdown measures to slow the global pandemic, the U.S. bond market began pricing in the adverse impact on economic activity. Higher-quality, longer-term bonds rallied, while riskier, lower-rated corporate bonds declined sharply, reflecting a reversal in many investors’ risk appetite. Similarly, strong demand for cash and cash equivalents drove yields on certain U.S. Treasury bill


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Banks		14.9%
Oil, Gas & Consumable Fuels		10.1%
Electric Utilities		8.4%
Health Care Providers & Services		4.7%
Capital Markets		4.6%
Diversified Telecommunication Services		4.0%
Insurance		3.7%
Real Estate Management & Development		3.1%
Energy Equipment & Services		3.0%
Food & Staples Retailing		2.7%

maturities to fall briefly below zero. Thereafter, bond prices fell then somewhat stabilized as the magnitude of the downturn led to constricted liquidity and subsequent intervention by the U.S. Federal Reserve (Fed).

After reducing the federal funds target rate three times in 2019 to a range of 1.50%–1.75%, the Fed enacted two emergency rate cuts in March 2020 in response to the COVID-19 pandemic, further lowering the federal funds target rate to a range of 0.00%–0.25%. In addition, the Fed announced a plan to purchase government, government-backed and corporate bonds to help keep markets functioning, significantly expanding its balance sheet.

U.S. Treasury bonds, as measured by the Bloomberg Barclays U.S. Treasury Index, rose significantly during the reporting period, despite high levels of Treasury issuance due to deficit spending and investor expectations for large increases in debt issuance for fiscal stimulus to alleviate the economic downturn. The yield on 10-year U.S. Treasury bonds declined to historic lows near period-end, driven by fears of a prolonged global economic disruption due to the COVID-19 pandemic. Mortgage-backed securities (MBS), as measured by the Bloomberg Barclays MBS Index, also posted positive returns, aided by the Fed’s announcement that it would make substantial MBS purchases.

1. Source: Morningstar.

The index is unmanaged and includes reinvestment of any income or distributions. It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 24.



2	Annual Report	franklintempleton.com

FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

U.S. corporate bond performance was hampered during the period’s last month by investor concerns about the pandemic-related economic disruption and the potential credit downgrades of many companies amid high levels of indebtedness. For the 12-month period, investment-grade corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate Bond Index, posted positive returns, while high-yield corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate High Yield Bond Index, posted negative returns due to investor concerns about a potential increase in credit defaults.

Investment Strategy

The Fund invests primarily in U.S. dollar-denominated corporate debt securities issued by U.S. and foreign companies. The Fund may invest in debt securities of any maturity or duration.

The Fund’s focus on the credit quality of its portfolio is intended to reduce credit risk and help to preserve the Fund’s capital. The Fund may also invest a portion of its assets in convertible securities, preferred securities and U.S. Treasury securities, and generally expects to invest a portion of its assets in cash, cash equivalents and high quality money market securities, including commercial paper, repurchase agreements and affiliated or unaffiliated money market funds. The Fund may invest up to 40% of its net assets in foreign securities, including those in developing markets, and up to 15% of its net assets in non-U.S. dollar-denominated securities. The Fund may enter into certain derivative transactions to seek to enhance Fund returns, increase liquidity, gain exposure to certain instruments or markets in a more efficient or less expensive way and/or hedge risks associated with its other portfolio investments.

In choosing investments, we select securities in various market sectors based on our assessment of changing economic, market, industry and issuer conditions. We use a top-down analysis of macroeconomic trends, combined with a bottom-up fundamental analysis of market sectors, industries and issuers, to try to take advantage of varying sector reactions to economic events. The Fund’s portfolio is constructed by taking into account our desired duration and yield curve exposure, total return potential, as well as the appropriate diversification and risk profile at the issue, company and industry level. We may utilize quantitative models to identify investment opportunities in order to construct a portfolio of investments for the Fund. Quantitative trading models are proprietary systems that rely on mathematical computations to identify trading opportunities.


Top 10 Holdings

3/31/20

Issue/Issuer *Sector/Industry*	% of Total Net Assets
U.S. Treasury 30 Yr. Bond , 6/19/2020		3.3%
CK Hutchison International 19 Ltd., senior note, 144A, senior note, 144A, 3.625%, 4/11/2029		1.9%
Morgan Stanley, senior bond, 3.591% to 7/22/27, FRN thereafter, 3.591%, 7/22/2028		1.9%
Enel Finance International NV, senior note, 144A, 3.625%, 5/25/2027		1.9%
Bank of America Corp., sub. bond, 4.183%, 11/25/2027		1.9%
Alibaba Group Holding Ltd., senior note, senior note, 3.40%, 12/06/2027		1.9%
Capital One Financial Corp., senior bond, senior note, 3.20%, 1/30/2023		1.9%
France Telecom SA, senior bond, 9.57%, 3/01/2031		1.8%
Citigroup, Inc., senior bond, 3.668% to 7/23/27, FRN thereafter, senior note, 3.352% to 4/24/24, FRN thereafter, 3.352%, 4/24/2025		1.7%
Glencore Funding LLC, senior note, 144A, senior note, 144A, senior note, 144A, 4.875%, 3/12/2029		1.7%

Manager’s Discussion

The investment grade corporate bond market performed well during the period on a total return basis, but results were negatively impacted starting in early 2020 as markets reacted to the consequences of the COVID-19 pandemic. Corporate bond spreads moved beyond typical recession levels as investor uncertainty about the duration and severity of the economic shutdown caused a major pullback in investor risk appetite. Fiscal and monetary policy intervention by the U.S. government, including a plan for the Fed to purchase some investment grade corporate bonds, helped to stabilize the market.

Earlier in the period, mixed economic data, increasingly accommodative central banks and headlines about global trade disputes were the main market drivers. S&P 500 corporate earnings were weaker versus the prior year, but still generally supportive. Government bond yields fell during the period, with the 10-year U.S. Treasury yield declining from 2.41% to 0.70%.

Lower government bond yields globally helped demand for investment-grade corporate bonds, a higher yielding alternative. Corporate issuance levels were in line with recent trends until the final weeks of the period when issuance surged, as some higher quality companies sought to improve cash liquidity or pay down short-term borrowings.



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FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

The Fund underperformed its benchmark on a net basis for the period. Industry allocation was the largest negative performance driver, followed by quality allocation. Yield curve positioning was also a slight detractor, while security selection was the biggest positive performance driver.

Industry underperformance was driven by our overweighted position in energy bonds and an underweighted position in technology bonds. Contributors on an individual company basis included Valero Energy, CK Hutchison and Schlumberger. Detractors included Aflac, Devon Energy and Wells Fargo.

News stories about the COVID-19 pandemic, together with sharply lower oil prices, impacted much of the portfolio late in the period. For example, the Fund’s holdings in energy-related issuers saw significant price volatility. Even the highest quality and normally most liquid holdings were under some market stress during the most volatile days of March 2020, although prices normalized as the market stabilized.

The Fund’s overweight position in BBB rated bonds hurt performance. This position was based on our view that these bonds offered what we considered attractive yields based on current valuations and economic conditions, but that belief was put to the test by the unexpected economic slowdown caused by the pandemic. We kept the Fund’s duration positioning close to neutral relative to the benchmark for most of the period.

What is the yield curve?

The yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates. The most frequently reported yield curve compares three-month, two-year and 30-year U.S. Treasury debt.

What is duration?

Duration is a measure of a bond’s price sensitivity to interest-rate changes. In general, a portfolio of securities with a lower duration can be expected to be less sensitive to interest-rate changes than a portfolio with a higher duration.

The Fund held primarily cash bonds during the period but used credit index derivatives to gain market exposure on a temporary, tactical basis. The Fund also used interest-rate futures contracts to manage duration exposure.

Thank you for your participation in Franklin Liberty Investment Grade Corporate ETF. We look forward to serving your future investment needs.

LOGO

Marc Kremer, CFA

Co-Lead Manager

LOGO

Shawn Lyons, CFA

Co-Lead Manager

Thomas Runkel, CFA

Co-Lead Manager

Pururav Thoutireddy, Ph.D.

Co-Lead Manager

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, country, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.

CFA^® is a trademark owned by CFA Institute.



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FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

Performance Summary as of March 31, 2020

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (10/5/16), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+4.02%

+3.25%

+4.02%

+3.25%

3-Year

+11.24%

+10.41%

+3.61%

+3.36%

Since Inception (10/3/16)

+9.21%

+8.53%

+2.56%

+2.37%



	30 Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
3.75%		3.39%		3.15%

See page 7 for Performance Summary footnotes.



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FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

10/13/16–3/31/20

LOGO

See page 7 for Performance Summary footnotes.



6	Annual Report	franklintempleton.com

FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.35%		1.07%

All investments involve risks, including possible loss of principal. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Distributions to shareholders may decline when prevailing interest rates fall or when the Fund experiences defaults on debt securities it holds. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. The Fund’s investments in foreign securities involve certain risks including currency fluctuations, and economic and political uncertainties. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. Investing in derivative securities and the use of foreign currency techniques involve special risks as such may not achieve the anticipated benefits and/or may result in losses to the Fund. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

1. The Fund has a fee waiver and/or expense reimbursement contractually guaranteed through 7/31/20. Fund investment results reflect the expense reduction; without this reduction, the results would have been lower.

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

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

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/20.

6. The Fund’s 30-day standardized yield is calculated over a trailing 30-day period using the yield to maturity on bonds and/or the dividends accrued on stocks. It may not equal the Fund’s actual income distribution rate, which reflects the Fund’s past dividends paid to shareholders.

7. Source: Morningstar. The Bloomberg Barclays U.S. Corporate Investment Grade Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes U.S. dollar-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers.

8. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

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



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FRANKLIN LIBERTY INVESTMENT GRADE CORPORATE ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	964.20	$	1.72	$	1,023.25	$	1.77		0.35	%

2. Reflects expenses after fee waivers and expense reimbursements.



8	Annual Report	franklintempleton.com

Franklin Liberty U.S. Low Volatility ETF

This annual report for Franklin Liberty U.S. Low Volatility ETF covers the period ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks capital appreciation with an emphasis on lower volatility. Under normal market conditions, the Fund invests at least 80% of its net assets in U.S. investments.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -6.88% based on market price and -6.74% based on net asset value (NAV). In comparison, the Russell 1000^® Index posted a -8.03% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 12.

Economic and Market Overview

U.S. equities, as measured by the Standard & Poor’s^® 500 Index (S&P 500^®), declined during the 12 months under review. Equities posted strong gains for most of the reporting period, aided by relatively steady economic growth, easing trade tensions and the U.S. Federal Reserve’s (Fed’s) supportive monetary policy. However, a sharp selloff began in late February 2020 amid investor fears of a global economic slowdown due to the novel coronavirus (COVID-19) pandemic. Concerns about global supply chain disruptions, business and personal restrictions, and subdued consumer spending drove many investors to sell equity holdings in favor of perceived safe investments such as government bonds and cash.

The Fed lowered the federal funds target rate three times in 2019 to a range of 1.50%–1.75%. The labor market remained


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Information Technology		24.8%
Health Care		15.0%
Financials		11.5%
Consumer Discretionary		10.3%
Communication Services		9.8%
Industrials		8.3%
Consumer Staples		7.2%
Real Estate		3.5%
Utilities		3.3%
Energy		2.8%

strong through February 2020 and supported consumer spending, though some parts of the economy struggled as annual industrial production contracted and capital spending declined.

However, economic activity weakened considerably as the COVID-19 pandemic spread across the U.S. and many state and local governments issued stay-at-home orders, which included business closures and restrictions. Weekly unemployment claims surged near period-end, reflecting layoffs in many industries, particularly retail, restaurants and hospitality. As a result, the unemployment rate jumped from a 50-year low of 3.5% in February 2020 to 4.4% at period-end, and the economy contracted in the first quarter, following an expansion that lasted more than a decade.²

Market volatility persisted at a heightened level throughout March 2020, as social distancing measures intended to mitigate the pandemic severely weakened the economy. In an effort to boost the U.S. economy and aid businesses and individuals directly impacted by the pandemic, the federal government passed an unprecedented $2 trillion stimulus package. Furthermore, the Fed cut the federal funds target rate to a range of 0.00%–0.25% and announced sweeping quantitative easing measures aimed at stimulating lending and credit availability. Many investors were encouraged by

1. Source: Morningstar. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company.

2. Source: Bureau of Labor Statistics.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 31.



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FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

policymakers’ swift and decisive fiscal and monetary stimulus measures. U.S. stocks, as measured by the S&P 500, bounced from multi-year lows, but still finished the reporting period with negative returns.

Manager’s Discussion

The Fund fared better than its benchmark, the Russell 1000^® Index, during the fiscal year. Leading contributors included the financials, industrials, materials and consumer staples sectors.

Stock selection proved positive for financials sector results, including a position in financial and analytics firm S&P Global. A position in aerospace and defense company Lockheed Martin and our avoidance of the poor-performing airline stocks aided relative returns in the industrials sector. Airline operators faced major challenges toward the end of the period due to COVID-19-related travel disruptions. Stock selection in the chemicals industry and the food and staples retailing industry contributed to relative performance in the materials and consumer staples sectors, respectively.

Several individual contributors helped advance the Fund’s results. While information technology was an overall detractor at the sector level, the Fund’s investments in electronic payments processor Total System Services and chipmaker Synopsys added to returns. Accelerating sales growth and improving profit margins was a boost for the shares of discount retailer Dollar General in the consumer discretionary sector. In the communication services sector, cable provider Charter Communications benefited from increasing penetration rates in broadband, which was a growth driver of revenue for the company.

In contrast, stock selection in the information technology sector detracted from relative performance. Within the sector, underweightings in Microsoft and Apple hindered relative returns as shares of both companies sharply appreciated over the period. In the consumer discretionary sector, an underweighting in Amazon.com was a drag on performance. The retail giant reached a market cap of $1 trillion and shares posted all-time highs over the period. Home improvement retailer Lowe’s struggled to pass along rising costs to consumers, which pressured the company’s profits and weighed on its stock. Elsewhere, investor concerns about a virus-induced economic decline and the impact on energy demand undermined the energy sector and our positions in Schlumberger and Occidental Petroleum.


Top 10 Holdings

3/31/20

Company *Sector/Industry*	% of Total Net Assets
Automatic Data Processing Inc. Information Technology		1.7%
Fiserv Inc. Information Technology		1.6%
Synopsys Inc. Information Technology		1.6%
International Business Machines Corp. Information Technology		1.6%
Microsoft Corp. Information Technology		1.6%
Global Payments Inc. Information Technology		1.6%
McCormick & Co. Inc. Consumer Staples		1.6%
Oracle Corp. Information Technology		1.6%
Intuit Inc. Information Technology		1.6%
Mastercard Inc., A Information Technology		1.6%

Thank you for your participation in Franklin Liberty U.S. Low Volatility ETF. We look forward to serving your future investment needs.


		Todd Brighton, CFA

		Portfolio Manager

3. “U.S. companies” are those that (i) are organized under the laws of, or have a principal office in, or for whose securities the principal trading market is, the U.S.; (ii) derive 50% or more of their total revenue or profit from either goods or services produced, or sales made, in the U.S.; or (iii) have 50% or more of their assets in the U.S.

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



10	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF



franklintempleton.com	Annual Report	11

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

Performance Summary as of March 31, 2020

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (9/22/16), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

-6.74%

-6.88%

-6.74%

-6.88%

3-Year

+21.26%

+21.18%

+6.64%

+6.61%

Since Inception (9/20/16)

+31.45%

+8.06%

See page 14 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

9/20/16–3/31/20

LOGO

See page 14 for Performance Summary footnotes.



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FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment

Income

$0.483101

Total Annual Operating Expenses⁶



With Fee Waiver	Without Fee Waiver
0.29%		0.91%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. There can be no guarantee that the Fund’s volatility strategy will be successful, and achieving the Fund’s volatility strategy does not mean the Fund will achieve a positive or competitive return. The volatility strategy can also be expected to limit the Fund’s participation in market price appreciation when compared to similar funds that do not attempt this strategy. Smaller and midsize-company stocks have historically experienced more price volatility than larger company stocks, especially over the short term. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. Source: Morningstar. The Russell 1000 Index is market capitalization weighted and measures performance of the approximately 1,000 largest companies in the Russell 3000 Index, which represents the majority of the U.S. market’s total capitalization.

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



14	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. LOW VOLATILITY ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	851.60	$	1.34	$	1,023.55	$	1.47		0.29	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	15

Franklin Liberty U.S. Core Bond ETF

This annual report for Franklin Liberty U.S. Core Bond ETF covers the period since the Fund’s inception on September 17, 2019 through March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks total return. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds of U.S. issuers.

Performance Overview

For the period since inception on September 17, 2019, through March 31, 2020, the Fund posted cumulative total returns of +3.12% based on market price and +3.12% based on net asset value (NAV). In comparison, the Bloomberg Barclays U.S. Aggregate Bond Index, which tracks the U.S. investment-grade, taxable bond market, posted a +4.21% total return.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 19.

Economic and Market Overview

The U.S. bond market’s performance for the period since the Fund’s inception on September 17, 2019, through March 31, 2020, as measured by the Bloomberg Barclays U.S. Aggregate Bond Index, was defined by two distinct phases: before and during the outbreak of the novel coronavirus (COVID-19). Until late February 2020, prices for most U.S. bonds rose, as low inflation, interest-rate cuts and strong demand for yield, which moves inversely to price, supported fixed income markets. In late February, as more countries adopted social distancing and lockdown measures to slow the global pandemic, the U.S. bond market began pricing in the adverse impact on economic activity. Higher-quality, longer-term bonds rallied, while riskier, lower-rated corporate bonds declined sharply, reflecting a reversal in many investors’ risk


Portfolio Composition

Based on Total Net Assets as of 3/31/20

U.S. Government & Agency Securities			35.9%
Corporate Bonds & Notes			25.2%
Mortgage-Backed Securities			24.4%
Municipal Bonds			4.5%
Foreign Government and Agency Securities			2.9%
Asset-Backed Securities			2.9%
Long Futures			1.3%
Credit Default Swap Contracts			(0.1)%
Short Futures			(0.2)%

appetite. Similarly, strong demand for cash and cash equivalents drove yields on certain U.S. Treasury bill maturities briefly below zero. Thereafter, bond prices fell sharply then somewhat stabilized as the magnitude of the downturn led to constricted liquidity and subsequent intervention by the U.S. Federal Reserve (Fed).

After reducing the federal funds target rate to a range of 1.50%–1.75% in October 2019, the Fed enacted two emergency rate cuts in March 2020 in response to the COVID-19 pandemic, further lowering the federal funds target rate to a range of 0.00%–0.25%. In addition, the Fed announced a plan to purchase government, government-backed and corporate bonds to help keep markets functioning, significantly expanding its balance sheet.

1. Source: Factset.

The index is unmanaged and includes reinvestment of any income or distributions. They do not reflect any fees, expenses or sales charges. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 35.



16	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. CORE BOND ETF

U.S. corporate bond performance was hampered during the period’s last month by investor concerns about the pandemic-related economic disruption and the potential credit downgrades of many companies amid high levels of indebtedness. For the period, U.S. investment-grade corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate Bond Index, declined modestly, while high-yield corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate High Yield Bond Index, declined significantly due to investor concerns about a potential increase in credit defaults.

Investment Strategy

The Fund invests predominantly in investment-grade bonds of U.S. issuers, including government, corporate-debt, mortgage-backed and asset-backed securities. The Fund’s investments in mortgage-backed securities include securities that are issued or guaranteed by the U.S. government, its agencies or instrumentalities, and private issuers, including commercial mortgage-backed securities. Under normal market conditions, the Fund is generally expected to have sector, credit and duration exposures comparable to its benchmark index. However, we make investment decisions based upon our own fundamental analysis, which affects the Fund’s sector, credit and duration exposures so that they may vary from the benchmark index.

In addition, the Fund may purchase or sell mortgage-backed securities on a delayed delivery or forward commitment basis through the to-be-announced (TBA) market. With TBA transactions, the particular securities to be delivered must meet specified terms and conditions.

For purposes of pursuing its investment goal, the Fund may enter into various interest-rate and credit-related derivatives, principally U.S. Treasury futures, interest-rate swaps and credit default swaps. The use of these derivative transactions may allow the Fund to obtain net long or short exposures to select interest rates, durations or credit risks. The Fund may enter into certain derivative transactions to seek to enhance Fund returns, increase liquidity, gain exposure to certain instruments or markets in a more efficient or less expensive way and/or hedge risks associated with its other portfolio investments.


Top 10 Fund Holdings

3/31/20

	% of Total Net Assets
U.S. Treasury Note , 2.75%, 9/15/2021		28.0%
Federal National Mortgage Association , 4.50%, 5/01/2048		23.1%
US DOLLAR		11.3%
U.S. Treasury Bond , 2.75%, 11/15/2042		7.9%
Federal Home Loan Mortgage Corp. , 4.00%, 3/01/2049		1.3%
Capital One Multi-Asset Execution Trust, Series 2019-A1, Class A1, Series 2019-A2, Class A2, 1.72%, 8/15/2024		1.2%
Contra Costa Community College Dist., Refunding, 2.926%, 8/01/2038		1.2%
Metropolitan Transportation Auth., Refunding, Series B, 5.00%, 11/15/2052		1.0%
American Express Credit Account Master Trust, Series 2019-1, Class A, ABS, 2.87%, 10/15/2024		0.8%
CVS Health Corp., senior bond, senior note, senior note, 4.10%, 3/25/2025		0.8%

either its price appreciation or changes in the issuer’s fundamentals, or when we believe another security is a more attractive investment opportunity.

Manager’s Discussion

During the period since the Fund’s inception on September 19, 2019, through March 31, 2020, the Fund posted a positive return on a gross basis, but underperformed the benchmark Bloomberg Barclays U.S. Aggregate Bond Index. In terms of drivers of relative return, sector allocation was the primary detractor from returns, particularly our allocations to sovereign emerging markets (EM) debt, municipal bonds, and asset-backed securities. This effect was partially offset by our underweighted allocation to investment-grade corporate credit (IG) and commercial mortgage-backed securities. Security selection also detracted from performance, particularly within the IG and sovereign developed sectors. In contrast, our security selection within the sovereign EM and taxable municipal bond sectors contributed to returns. The portfolio’s duration positioning remained relatively in line with the index over the period, although it had a marginally positive effect on returns due to a slightly overweighted position going into March.

In terms of derivatives, we utilized Treasury futures for duration management of the portfolio.



franklintempleton.com	Annual Report	17

FRANKLIN LIBERTY U.S. CORE BOND ETF

Thank you for your participation in Franklin Liberty U.S. Core Bond ETF. We look forward to serving your future investment needs.

LOGO

David Yuen, CFA, FRM

Co-Lead Manager

LOGO

Amy Cooper, CFA

Co-Lead Manager

Patrick Klein, Ph.D.

Co-Lead Portfolio Manager

Tina Chou

Co-Lead Portfolio Manager



18	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. CORE BOND ETF

Performance Summary as of March 31, 2020

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (9/19/19), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

Since Inception (9/17/19)

+3.12%



	30 Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
2.65%		2.00%		1.93%

See page 21 for Performance Summary footnotes.



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTY U.S. CORE BOND ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

9/17/19–3/31/20

LOGO

See page 21 for Performance Summary footnotes.



20	Annual Report	franklintempleton.com

FRANKLIN LIBERTY U.S. CORE BOND ETF

PERFORMANCE SUMMARY

Distributions (9/17/19–3/31/20)

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.15%		0.19%

All investments involve risks, including possible loss of principal. Interest rate movements, unscheduled mortgage prepayments and other risk factors will affect the Fund’s share price and yield. Bond prices, and thus a Fund’s share price, generally move in the opposite direction of interest rates. Therefore, as the prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

1. The Fund has a fee waiver and/or expense reimbursement contractually guaranteed through 7/31/21. Fund investment results reflect the expense reduction; without this reduction, the results would have been lower.

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

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

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/20.

7. Source: Morningstar. The Bloomberg Barclays U.S. Aggregate Bond Index tracks the U.S. investment-grade, taxable bond market.

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



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FRANKLIN LIBERTY U.S. CORE BOND ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,023.70	$	0.76	$	1,024.25	$	0.76		0.15	%

2. Reflects expenses after fee waivers and expense reimbursements.



22	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Investment Grade Corporate ETF


	Year Ended March 31,

	2020			2019			2018			2017^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.09		$	23.97		$	24.21		$	25.00


Income from investment operations^b:

Net investment income^c		0.73			0.82			0.80			0.32

Net realized and unrealized gains (losses)		0.27			0.21			(0.22	)		(0.78	)


Total from investment operations		1.00			1.03			0.58			(0.46	)


Less distributions from:

Net investment income		(0.81	)		(0.91	)		(0.82	)		(0.33	)

Net realized gains		(0.06	)		—			—			—


Total distributions		(0.87	)		(0.91	)		(0.82	)		(0.33	)


Net asset value, end of year	$	24.22		$	24.09		$	23.97		$	24.21


Total return^d		4.02%			4.46%			2.38%			(1.83)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.58%			1.07%			1.04%			1.06%

Expenses net of waiver and payments by affiliates		0.35%			0.35%			0.37%			0.40%

Net investment income		2.86%			3.49%			3.27%			2.76%

Supplemental data

Net assets, end of year (000’s)		$553,338			$18,065			$39,554			$53,268

Portfolio turnover rate^f		52.17%	^g		22.02%			63.14%			17.85%

^aFor the period October 3, 2016 (commencement of operations) to March 31, 2017.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 52.17%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	23

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Liberty Investment Grade Corporate ETF



		Country		Principal Amount*		Value
	Corporate Bonds & Notes 96.5%
	Aerospace & Defense 2.5%
a	L3Harris Technologies, Inc., senior note, 144A, 4.40%, 6/15/28		United States		4,300,000	$	4,661,277
	Lockheed Martin Corp., senior note, 4.07%, 12/15/42		United States		4,100,000		4,812,055
	United Technologies Corp., senior bond, 4.15%, 5/15/45		United States		2,100,000		2,343,494
	senior bond, 4.50%, 6/01/42		United States		1,700,000		1,982,866

							13,799,692

	Air Freight & Logistics 0.9%
	FedEx Corp., senior bond, 4.00%, 1/15/24		United States		2,500,000		2,613,644
	senior bond, 4.75%, 11/15/45		United States		2,000,000		1,928,563
	senior bond, 5.10%, 1/15/44		United States		500,000		498,557

							5,040,764

	Banks 14.9%
	Bancolombia SA, senior note, 3.00%, 1/29/25		Colombia		6,200,000		5,578,512
	Bank of America Corp., sub. bond, 4.183%, 11/25/27		United States		10,150,000		10,515,338
a	BNP Paribas SA, senior note, 144A, 4.705% to 1/10/24, FRN thereafter, 1/10/25		France		6,900,000		7,200,902
a	BPCE SA, senior note, 144A, 5.70%, 10/22/23		France		6,700,000		6,896,175
	Citigroup, Inc., senior bond, 3.668% to 7/23/27, FRN thereafter, 7/24/28		United States		3,600,000		3,737,490
	senior note, 2.876% to 07/24/22, FRN thereafter, 7/24/23		United States		1,500,000		1,513,781
	senior note, 3.352% to 4/24/24, FRN thereafter, 4/24/25		United States		5,700,000		5,878,146
	Danske Bank A/S, senior note, 3.244% to 12/20/24, FRN thereafter, 12/20/25		Denmark		2,600,000		2,421,516
	JPMorgan Chase & Co., senior bond, 3.54% to 5/01/27, FRN thereafter, 5/01/28		United States		4,150,000		4,385,553
	sub. bond, 4.25%, 10/01/27		United States		2,400,000		2,648,910
	sub. note, 3.375%, 5/01/23		United States		2,025,000		2,115,927
	Lloyds Banking Group PLC, senior note, 3.75%, 1/11/27		United Kingdom		5,400,000		5,468,910
a	Santander UK PLC, sub. Note, 144A, 5.00%, 11/07/23		United Kingdom		1,055,000		1,064,695
a	Truist Bank, sub. Note, 144A, 3.30%, 5/15/26		United States		6,800,000		6,991,312
	Truist Financial Corp., sub. bond, 3.875%, 3/19/29		United States		9,300,000		9,454,278
	Wachovia Corp., Subordinated, 5.50%, 8/01/35		United States		600,000		688,497
	Wells Fargo & Co., sub. bond, 4.75%, 12/07/46		United States		5,185,000		6,012,771

							82,572,713

	Beverages 0.4%
	Anheuser-Busch InBev Worldwide, Inc., senior bond, 5.80%, 1/23/59		Belgium		2,000,000		2,458,266

	Biotechnology 2.6%
	AbbVie, Inc., ^a senior bond, 144A, 4.25%, 11/21/49		United States		3,000,000		3,277,935
	^a senior note, 144A, 2.95%, 11/21/26		United States		5,200,000		5,310,506
	Biogen, Inc., senior bond, 5.20%, 9/15/45		United States		2,585,000		3,360,029
	Gilead Sciences, Inc., senior bond, 4.80%, 4/01/44		United States		1,800,000		2,324,945

							14,273,415

	Building Products 1.4%
a	CRH America Finance, Inc., senior note, 144A, 3.95%, 4/04/28		Ireland		7,700,000		7,628,969

	Capital Markets 4.6%

	Credit Suisse Group AG,
	^a senior bond,144A, 3.869% to 1/12/28, FRN thereafter, 1/12/29		Switzerland		900,000		912,848
	^a senior note, 144A, 2.997% to 12/14/22, FRN therafter, 12/14/23		Switzerland		6,400,000		6,239,010
	Morgan Stanley, senior bond, 3.591% to 7/22/27, FRN thereafter, 7/22/28		United States		10,280,000		10,795,048



24	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Capital Markets (continued)
	The Goldman Sachs Group, Inc., senior note, 3.50%, 1/23/25		United States		2,500,000	$	2,567,747
	senior note, 2.908% to 6/05/22, FRN thereafter, 6/05/23		United States		3,200,000		3,211,434
	sub. note, 4.25%, 10/21/25		United States		1,475,000		1,553,765

							25,279,852

	Chemicals 1.3%
	LYB International Finance II B.V., senior note, 3.50%, 3/02/27		United States		7,300,000		7,155,314

	Commercial Services & Supplies 0.3%
a	Ashtead Capital, Inc., senior note, second lien, 144A, 4.125%, 8/15/25		United Kingdom		1,770,000		1,628,400

	Consumer Finance 1.9%
	Capital One Financial Corp., senior bond, 3.80%, 1/31/28		United States		7,500,000		7,429,909
	senior note, 3.20%, 1/30/23		United States		2,900,000		2,870,095

							10,300,004

	Containers & Packaging 0.9%
	WRKCo, Inc., senior bond, 4.90%, 3/15/29		United States		3,300,000		3,683,541
	senior note, 3.90%, 6/01/28		United States		1,000,000		1,028,909

							4,712,450

	Diversified Financial Services 1.1%
	Aircastle Ltd., senior note, 4.25%, 6/15/26		United States		1,500,000		1,288,855
	GE Capital International Funding Co. Unlimited Co., senior bond, 4.418%, 11/15/35		United States		4,825,000		5,233,665

							6,522,520

	Diversified Telecommunication Services 4.0%
	AT&T, Inc., senior note, 3.80%, 2/15/27		United States		8,800,000		9,164,586
	France Telecom SA, senior bond, 9.57%, 3/01/31		France		6,600,000		10,035,213
	Telefonica Emisiones SA, senior bond, 5.52%, 3/01/49		Spain		1,650,000		1,943,649
	senior note, 4.103%, 3/08/27		Spain		1,000,000		1,039,619

							22,183,067

	Electric Utilities 8.4%
	Commonwealth Edison Co., first mortgage, Secured, 4.00%, 3/01/48		United States		3,500,000		3,950,133
	Duke Energy Corp., senior bond, 3.15%, 8/15/27		United States		1,200,000		1,184,699
	senior bond, 4.80%, 12/15/45		United States		2,565,000		2,812,361
a	Electricite de France SA, senior note, 144A, 4.50%, 9/21/28		France		2,200,000		2,429,597
a	Enel Finance International NV, senior note, 144A, 3.625%, 5/25/27		Italy		10,500,000		10,685,868
	Exelon Corp., senior bond, 4.05%, 4/15/30		United States		900,000		893,164
	Georgia Power Co., senior bond, 4.30%, 3/15/42		United States		3,345,000		3,652,011
	senior bond, 4.75%, 9/01/40		United States		1,950,000		1,925,205
	PSEG Power LLC, senior note, 3.85%, 6/01/23		United States		4,100,000		4,175,854
a	Saudi Electricity Global Sukuk Co. 2, senior bond, 144A, 5.06%, 4/08/43		Saudi Arabia		300,000		298,530
	Virginia Electric & Power Co., senior note, 3.50%, 3/15/27		United States		7,200,000		7,554,803
a	Vistra Operations Co. LLC, senior secured note, first lien, 144A, 3.55%, 7/15/24		United States		7,400,000		6,978,569

							46,540,794

	Electronic Equipment, Instruments & Components 0.8%
	Jabil, Inc., senior note, 3.60%, 1/15/30		United States		5,000,000		4,474,003



franklintempleton.com	Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Energy Equipment & Services 3.0%
	Baker Hughes a GE Co. LLC/Baker Hughes Co-Obligor, Inc., senior bond, 4.08%, 12/15/47		United States		2,485,000	$	2,051,139

	Schlumberger Holdings Corp.,
	^a senior bond, 144A, 4.30%, 5/01/29		United States		6,500,000		6,331,019
	^a senior note, 144A, 3.75%, 5/01/24		United States		2,600,000		2,465,245
	Total Capital International SA, senior note, 3.455%, 2/19/29		France		5,500,000		5,818,791

							16,666,194

	Entertainment 0.3%
	The Walt Disney Co., senior bond, 6.20%, 12/15/34		United States		1,300,000		1,813,022

	Food & Staples Retailing 2.7%

	CK Hutchison International 19 Ltd.,
	^a senior note, 144A, 3.25%, 4/11/24		Hong Kong		1,725,000		1,798,786
	^a senior note, 144A, 3.625%, 4/11/29		Hong Kong		8,400,000		9,023,575

	The Kroger Co.,
	senior bond, 3.50%, 2/01/26		United States		2,100,000		2,222,421
	senior bond, 4.45%, 2/01/47		United States		1,400,000		1,546,802
	Walgreens Boots Alliance, Inc., senior bond, 4.80%, 11/18/44		United States		500,000		493,634

							15,085,218

	Food Products 1.7%
	Bunge Ltd. Finance Corp., senior note, 4.35%, 3/15/24		United States		1,700,000		1,764,235
	Tyson Foods, Inc., senior bond, 5.10%, 9/28/48		United States		1,680,000		2,092,866
	senior note, 4.00%, 3/01/26		United States		5,300,000		5,617,983

							9,475,084

	Gas Utilities 0.5%
	Dominion Energy Gas Holdings LLC, senior bond, 3.90%, 11/15/49		United States		3,000,000		2,626,843

	Health Care Equipment & Supplies 0.9%
	Abbott Laboratories, senior bond, 4.90%, 11/30/46		United States		3,600,000		4,939,827

	Health Care Providers & Services 4.7%
	Anthem, Inc., senior bond, 3.70%, 9/15/49		United States		1,000,000		1,007,972
	senior bond, 5.10%, 1/15/44		United States		570,000		678,931
	senior note, 4.101%, 3/01/28		United States		3,785,000		4,082,914
	Sr. Unsecured, 3.50%, 8/15/24		United States		4,000,000		4,111,845
	Cigna Corp., senior bond, 4.90%, 12/15/48		United States		5,450,000		6,619,985
	^a senior note, 144A, 4.50%, 2/25/26		United States		1,500,000		1,622,904
	CVS Health Corp., senior bond, 5.30%, 12/05/43		United States		2,300,000		2,725,815
	HCA, Inc., senior secured bond, first lien, 4.50%, 2/15/27		United States		5,100,000		5,262,710

							26,113,076

	Hotels, Restaurants & Leisure 0.8%
	Marriott International, Inc., senior bond, 3.125%, 6/15/26		United States		4,700,000		4,325,761

	Industrial Conglomerates 0.5%
	General Electric Capital Corp., senior note, A, 6.15%, 8/07/37		United States		1,500,000		1,734,936
	General Electric Co., senior bond, 3.10%, 1/09/23		United States		1,000,000		1,016,968

							2,751,904

	Insurance 3.7%
	Aflac, Inc., senior bond, 4.75%, 1/15/49		United States		4,750,000		5,272,265
	AXA SA, 8.60%, 12/15/30		France		4,500,000		5,994,482
	MetLife, Inc., junior sub. bond, 6.40%, 12/15/66		United States		4,910,000		5,140,008
a	Metropolitan Life Global Funding I, Sr. Unsecured, 144A, 3.00%, 1/10/23		United States		2,800,000		2,841,939



26	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Insurance (continued)
a	The Allstate Corp., senior bond, 144A, 4.20%, 12/15/46		United States		1,000,000	$	1,113,853

							20,362,547

	Internet & Direct Marketing Retail 1.9%
	Alibaba Group Holding Ltd., senior note, 3.125%, 11/28/21		China		5,800,000		5,878,988
	senior note, 3.40%, 12/06/27		China		4,400,000		4,627,018

							10,506,006

	IT Services 1.4%
	Fiserv, Inc., senior bond, 3.50%, 7/01/29		United States		6,600,000		7,024,549
	senior bond, 4.40%, 7/01/49		United States		700,000		755,201

							7,779,750

	Machinery 0.4%
^a	Carrier Global Corp., senior note, 144A, 3.577%, 4/05/50		United States		2,500,000		2,258,428

	Media 2.5%
	Charter Communications Operating LLC/Charter Communications Operating Capital, senior secured note, first lien, 4.50%, 2/01/24		United States		1,500,000		1,548,679
	Comcast Corp., senior bond, 4.95%, 10/15/58		United States		5,900,000		8,181,019
	FOX Corp., 5.476%, 1/25/39		United States		3,600,000		4,188,498

							13,918,196

	Metals & Mining 1.7%

	Glencore Funding LLC,
	^a senior note, 144A, 4.125%, 5/30/23		Switzerland		4,825,000		4,451,343
	^a senior note, 144A, 4.625%, 4/29/24		Switzerland		1,800,000		1,651,827
	^a senior note, 144A, 4.875%, 3/12/29		Switzerland		3,600,000		3,479,261

							9,582,431

	Multi-Utilities 0.9%
	Berkshire Hathaway Energy Co., senior bond, 3.80%, 7/15/48		United States		2,300,000		2,422,012
	Sr. Unsecured, 5.15%, 11/15/43		United States		1,900,000		2,275,222

							4,697,234

	Multiline Retail 1.1%
	Dollar Tree, Inc., senior note, 3.70%, 5/15/23		United States		5,050,000		5,136,988
	senior note, 4.00%, 5/15/25		United States		1,100,000		1,128,782

							6,265,770

	Oil, Gas & Consumable Fuels 10.1%
a	Aker BP ASA, senior note, 144A, 3.75%, 1/15/30		Norway		5,000,000		3,764,107
	Canadian Natural Resources Ltd., senior bond, 3.85%, 6/01/27		Canada		5,100,000		4,046,683
	Cheniere Corpus Christi Holdings LLC, senior secured note, first lien, 5.875%, 3/31/25		United States		6,700,000		6,114,012
	Devon Energy Corp., Sr. Unsecured, 4.75%, 5/15/42		United States		2,700,000		1,626,197
	Energy Transfer Operating LP, senior bond, 6.05%, 6/01/41		United States		1,100,000		963,782
	senior note, 4.50%, 4/15/24		United States		7,500,000		6,702,213
	Enterprise Products Operating LLC, senior bond, 4.15%, 10/16/28		United States		1,400,000		1,423,370
	senior bond, 5.10%, 2/15/45		United States		1,970,000		1,978,800
	senior bond, 6.125%, 10/15/39		United States		900,000		925,982
	Kinder Morgan, Inc., senior bond, 5.55%, 6/01/45		United States		2,100,000		2,164,709



franklintempleton.com	Annual Report	27

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Oil, Gas & Consumable Fuels (continued)
	MPLX LP, senior bond, 5.50%, 2/15/49		United States		1,775,000	$	1,504,471
	senior note, 4.875%, 12/01/24		United States		5,000,000		4,385,230
	Sabine Pass Liquefaction LLC, senior secured note, first lien, 5.625%, 4/15/23		United States		4,400,000		4,098,899
	Shell International Finance B.V., senior note, 2.125%, 5/11/20		Netherlands		500,000		499,489
	TC PipeLines LP, senior note, 3.90%, 5/25/27		United States		400,000		380,639
	The Williams Cos. Inc., senior bond, 4.85%, 3/01/48		United States		1,900,000		1,781,420
	senior note, 4.30%, 3/04/24		United States		2,200,000		2,002,525
	TransCanada PipeLines Ltd., senior note, 6.10%, 6/01/40		Canada		3,400,000		3,643,600
	Valero Energy Corp., senior note, 4.35%, 6/01/28		United States		8,000,000		7,795,141

							55,801,269

	Pharmaceuticals 1.6%
	Allergan Funding SCS, senior bond, 4.85%, 6/15/44		United States		800,000		997,315

	Bristol-Myers Squibb Co.,
	^a senior bond, 144A, 4.125%, 6/15/39		United States		2,700,000		3,271,249
	^a senior bond, 144A, 5.00%, 8/15/45		United States		1,000,000		1,346,805
	Shire Acquisitions Investments Ireland DAC, senior note, 3.20%, 9/23/26		United States		2,900,000		2,972,584

							8,587,953

	Real Estate Management & Development 3.1%
	Brixmor Operating Partnership LP, Sr. Unsecured, 4.125%, 5/15/29		United States		3,200,000		3,287,994
	ERP Operating LP, senior bond, 4.50%, 7/01/44		United States		3,500,000		3,825,603
	Healthcare Trust of America Holdings LP, senior bond, 3.75%, 7/01/27		United States		1,300,000		1,202,521
	Simon Property Group LP, senior note, 3.375%, 12/01/27		United States		9,000,000		8,939,548

							17,255,666

	Road & Rail 1.6%
	Burlington Northern Santa Fe LLC, Sr. Unsecured, 5.75%, 5/01/40		United States		3,700,000		5,033,584
	CSX Corp., senior bond, 4.25%, 3/15/29		United States		1,600,000		1,799,213
	senior bond, 4.25%, 11/01/66		United States		1,800,000		1,805,984

							8,638,781

	Semiconductors & Semiconductor Equipment 0.9%
	Maxim Integrated Products, Inc., senior note, 3.375%, 3/15/23		United States		2,900,000		2,962,819
	Xilinx, Inc., senior note, 2.95%, 6/01/24		United States		2,100,000		2,097,262

							5,060,081

	Software 1.1%
	Microsoft Corp., senior bond, 4.00%, 2/12/55		United States		2,600,000		3,330,674
	senior note, 2.65%, 11/03/22		United States		2,500,000		2,624,923

							5,955,597

	Specialty Retail 0.2%
	AutoZone, Inc., senior note, 3.75%, 4/18/29		United States		1,300,000		1,320,529

	Tobacco 2.7%
a	BAT International Finance Plc, senior note , 144A, 3.95%, 6/15/25		United Kingdom		6,500,000		6,389,562
a	Imperial Brands Finance Plc, senior note, 144A, 4.25%, 7/21/25		United Kingdom		7,165,000		6,984,511
	Reynolds American, Inc., senior bond, 5.85%, 8/15/45		United Kingdom		1,305,000		1,409,936

							14,784,009



28	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Investment Grade Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Wireless Telecommunication Services 0.5%
a	Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC, first lien, 144A, 3.36%, 3/20/23		United States		2,925,000	$	2,921,344

	Total Corporate Bonds & Notes (Cost $553,802,450)						534,062,743

	U.S. Government & Agency Securities 1.3%
	U.S. Treasury Bond, 2.25%, 8/15/49		United States		3,600,000		4,381,031
	3.75%, 8/15/41		United States		1,800,000		2,674,547

	Total U.S. Government & Agency Securities (Cost $6,934,756)						7,055,578

	Total Investments before Short Term Investments (Cost $560,737,206)						541,118,321

	Short Term Investments 0.0%^†
	U.S. Government & Agency Securities (Cost $265,000) 0.0%^†
b	FHLB, 4/01/20		United States		265,000		265,000

	Total Investments (Cost $561,002,206) 97.8%						541,383,321
	Other Assets, less Liabilities 2.2%						11,954,394

	Net Assets 100.0%					$	553,337,715

See Abbreviations on page 56.

^*The principal amount is stated in U.S. dollars unless otherwise indicated.

^†Rounds to less than 0.1% of net assets.

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the aggregate value of these securities was $133,920,351, representing 24.2% of net assets.

^bThe security was issued on a discount basis with no stated coupon rate.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).


Futures Contracts

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Index Contracts
U.S. Treasury 30 Yr. Bond		Long		102	$	18,264,375		6/19/20	$	1,266,090
CME Ultra Long Term U.S. Treasury Bond		Short		15		3,328,125		6/19/20		(234,861	)
Ultra 10 Yr. U.S. Treasury Note		Short		69		10,766,156		6/19/20		(349,289	)
U.S. Treasury 5 Yr. Note		Short		129		16,171,359		6/30/20		(299,484	)
U.S. Treasury 10 Yr. Note		Short		124		17,197,250		6/19/20		(450,215	)

Total Futures Contracts									$	(67,759	)

*As of period end.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	29

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty U.S. Low Volatility ETF


	Year Ended March 31,

	2020			2019			2018			2017^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	33.61		$	30.03		$	26.97		$	25.05


Income from investment operations^b:

Net investment income^c		0.64			0.52			0.45			0.23

Net realized and unrealized gains (losses)		(2.84	)		3.88			3.06			1.87


Total from investment operations		(2.20	)		4.40			3.51			2.10


Less distributions from net investment income		(0.48	)		(0.47	)		(0.45	)		(0.18	)


Net realized gains		—			(0.35	)		—			—


Net asset value, end of year	$	30.93		$	33.61		$	30.03		$	26.97


Total return^d		(6.74)%			14.98%			13.08%			8.40%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.57%			1.12%			2.11%			2.96%

Expenses net of waiver and payments by affiliates		0.33%			0.50%			0.50%			0.50%

Net investment income		1.75%			1.64%			1.56%			1.69%

Supplemental data

Net assets, end of year (000’s)		$74,223			$13,443			$6,005			$5,393

Portfolio turnover rate^f		32.61%	^g		46.90%			65.68%			12.55%

^aFor the period September 20, 2016 (commencement of operations) to March 31, 2017.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 32.61%.



30	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Liberty U.S. Low Volatility ETF



		Shares		Value
	Common Stocks 98.9%
	Communication Services 9.8%
a	Alphabet Inc., A		922	$	1,071,318
	AT&T Inc.		33,038		963,058
a	Charter Communications Inc., A		2,609		1,138,333
	Comcast Corp., A		28,540		981,205
	TELUS Corp.		66,090		1,042,900
	The Walt Disney Co.		10,805		1,043,763
	Verizon Communications Inc.		19,129		1,027,801

				7,268,378

	Consumer Discretionary 10.3%
a	Amazon.com Inc.		412		803,285
	McDonald’s Corp.		5,192		858,497
	NIKE Inc., B		11,184		925,364
a	NVR Inc.		286		734,765
a	O’Reilly Automotive Inc.		2,671		804,105
	Ross Stores Inc.		11,728		1,019,984
	Target Corp.		7,723		718,007
	The Home Depot Inc.		4,817		899,382
	Tractor Supply Co.		10,161		859,113

				7,622,502

	Consumer Staples 7.2%
	McCormick & Co. Inc.		8,219		1,160,605
	PepsiCo Inc.		8,800		1,056,880
	The Coca-Cola Co.		24,687		1,092,400
	The Procter & Gamble Co.		9,317		1,024,870
	Walmart Inc.		8,645		982,245

				5,317,000

	Energy 2.8%
	Chevron Corp.		9,540		691,268
	Exxon Mobil Corp.		15,902		603,799
	Royal Dutch Shell PLC, A, ADR		22,775		794,620

				2,089,687

	Financials 11.5%
	Aflac Inc.		26,021		890,959
	Arthur J. Gallagher & Co.		10,211		832,299
	Chubb Ltd.		7,203		804,503
	Intercontinental Exchange Inc.		9,500		767,125
	JPMorgan Chase & Co.		8,092		728,523
	S&P Global Inc.		3,368		825,328
	The Progressive Corp.		10,441		770,963
	The Travelers Cos. Inc.		8,143		809,007
	Truist Financial Corp.		23,125		713,175
	U.S. Bancorp		18,542		638,772
	W.R. Berkley Corp.		14,447		753,700

				8,534,354

	Health Care 15.0%
	Abbott Laboratories		12,744		1,005,629
	AbbVie Inc.		13,361		1,017,975
	Baxter International Inc.		12,146		986,134
	Becton Dickinson and Co.		4,247		975,833
	Danaher Corp.		7,645		1,058,144
	Johnson & Johnson		7,473		979,934
a	Laboratory Corp. of America Holdings		8,291		1,047,900
	Medtronic PLC		11,985		1,080,807



franklintempleton.com	Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty U.S. Low Volatility ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Health Care (continued)
	Merck & Co. Inc.		13,424	$	1,032,843
	Pfizer Inc.		31,212		1,018,760
	Quest Diagnostics Inc.		11,971		961,271

				11,165,230

	Industrials 8.3%
	General Dynamics Corp.		6,165		815,691
	Honeywell International Inc.		6,117		818,394
	Lockheed Martin Corp.		2,316		785,008
	Raytheon Co.		5,997		786,507
	Republic Services Inc.		9,833		738,065
	Roper Technologies Inc.		2,425		756,139
	Trane Technologies PLC		8,903		735,299
	Verisk Analytics Inc.		5,332		743,174

				6,178,277

	Information Technology 24.8%
	Accenture PLC, A		6,777		1,106,413
	Amphenol Corp., A		15,623		1,138,604
	Analog Devices Inc.		11,893		1,066,207
	Apple Inc.		4,388		1,115,824
	Automatic Data Processing Inc.		9,152		1,250,895
	Cisco Systems Inc.		28,486		1,119,785
a	Fiserv Inc.		12,718		1,208,083
	Global Payments Inc.		8,230		1,187,013
	International Business Machines Corp.		10,706		1,187,617
	Intuit Inc.		4,975		1,144,250
	Mastercard Inc., A		4,729		1,142,337
	Microsoft Corp.		7,527		1,187,083
	Oracle Corp.		23,834		1,151,897
a	Synopsys Inc.		9,344		1,203,414
	Texas Instruments Inc.		10,576		1,056,860
	Visa Inc., A		7,055		1,136,702

				18,402,984

	Materials 2.4%
	Air Products and Chemicals Inc.		3,011		601,026
	Ecolab Inc.		3,604		561,611
	Linde PLC		3,735		646,155

				1,808,792

	Real Estate 3.5%
	Alexandria Real Estate Equities Inc.		4,672		640,344
	American Tower Corp.		2,951		642,580
	Equity Residential		10,176		627,961
	UDR Inc.		18,248		666,782

				2,577,667

	Utilities 3.3%
	American Electric Power Co. Inc.		7,289		582,974
	Dominion Energy Inc.		8,199		591,886
	Duke Energy Corp.		7,999		646,959
	Xcel Energy Inc.		10,158		612,528

				2,434,347

	Total Investments before Short Term Investments (Cost $82,655,598)				73,399,218



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty U.S. Low Volatility ETF (continued)



			Shares		Value
	Short Term Investments 0.1%
	U.S. Government & Agency Securities 0.1%
b	FHLB	United States		100,000	$	100,000

	Total Short-Term Investments (Cost $100,000)					100,000

	Total Investments (Cost $82,755,598) 99.0%					73,499,218
	Other Assets, less Liabilities 1.0%					723,372

	Net Assets 100.0%				$	74,222,590

See Abbreviations on page 56.

^aNon-income producing.

^bThe security was issued on a discount basis with no stated coupon rate.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty U.S. Core Bond ETF



	Year Ended March 31, 2020^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.00


Income from investment operations^b:

Net investment income^c		0.29

Net realized and unrealized gains (losses)		0.49


Total from investment operations		0.78


Less distributions from:

Net investment income		(0.31	)

Net realized gains		(0.03	)


Total distributions		(0.34	)


Net asset value, end of year	$	25.44


Total return^d		3.12%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.19%

Expenses net of waiver and payments by affiliates		0.15%

Net investment income		2.14%

Supplemental data

Net assets, end of year (000’s)		$853,532

Portfolio turnover rate^f		126.68%	^g

^aFor the period September 17, 2019 (commencement of operations) to March 31, 2020.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 126.68%.



34	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Liberty U.S. Core Bond ETF



		Country		Principal Amount*		Value
	Corporate Bonds & Notes 25.2%
	Aerospace & Defense 0.4%
	Lockheed Martin Corp., senior bond, 4.09%, 9/15/52		United States		1,600,000	$	1,949,295
	United Technologies Corp., senior bond, 3.75%, 11/01/46		United States		1,800,000		1,895,996

							3,845,291

	Air Freight & Logistics 0.1%
	FedEx Corp., senior bond, 4.05%, 2/15/48		United States		1,400,000		1,239,002

	Banks 4.2%
	Bancolombia SA, senior note, 3.00%, 1/29/25		Colombia		1,100,000		989,736
	Bank of America Corp., senior note, FRN thereafter, 2.881%, 4/24/23		United States		1,000,000		1,004,739
	senior note, FRN thereafter, 3.593%, 7/21/28		United States		700,000		717,813
a	BNP Paribas SA, senior note, 144A, FRN thereafter, 4.705%, 1/10/25		France		5,150,000		5,374,586
a	BPCE SA, sub. Note, 144A, 4.875%, 4/01/26		France		1,800,000		1,750,810
b	China Construction Bank Corp., sub. note, Reg S, FRN thereafter, 3.875%, 5/13/25		China		2,900,000		2,902,813
	Citigroup Inc., senior note, 3.70%, 1/12/26		United States		2,700,000		2,877,607
	senior note, FRN thereafter, 2.876%, 7/24/23		United States		500,000		504,594
	sub. bond, 4.45%, 9/29/27		United States		1,500,000		1,576,343
	subordinated note, 3.875%, 3/26/25		United States		100,000		104,997
	FOX Corp., senior unsecured, 5.576%, 1/25/49		United States		700,000		841,470
	Industrial & Commercial Bank of China Ltd., senior note, 3.538%, 11/08/27		China		1,200,000		1,308,011
	JPMorgan Chase & Co., senior bond, FRN thereafter, 3.54%, 5/01/28		United States		1,600,000		1,690,816
	Sr Unsecured, FRN thereafter, 4.493%, 3/24/31		United States		1,700,000		1,974,785
	sub. bond, 3.625%, 12/01/27		United States		2,100,000		2,231,367
	sub. note, 3.875%, 9/10/24		United States		100,000		105,788
	Lloyds Banking Group PLC, senior bond, FRN thereafter, 3.574%, 11/07/28		United Kingdom		4,000,000		3,977,562
a	Truist Bank, sub. Note, 144A, 3.625%, 9/16/25		United States		2,400,000		2,527,426
	Wells Fargo & Co., senior bond, FRN thereafter, 2.879%, 10/30/30		United States		3,700,000		3,676,659

							36,137,922

	Beverages 0.2%
	Anheuser-Busch InBev Worldwide Inc., senior bond, 5.55%, 1/23/49		United States		1,200,000		1,417,656

	Biotechnology 1.1%
a	AbbVie Inc., senior note, 144A, 2.95%, 11/21/26		United States		5,300,000		5,412,631
	Biogen Inc., senior note, 3.625%, 9/15/22		United States		2,050,000		2,107,645
	Gilead Sciences Inc., senior bond, 4.15%, 3/01/47		United States		1,400,000		1,720,075

							9,240,351

	Building Products 0.2%
	CRH America Finance Inc., senior note, 3.40%, 5/09/27		Ireland		1,850,000		1,845,179

	Capital Markets 1.3%
a	Credit Suisse Group AG, senior note, 144A, FRN therafter, 2.997%, 12/14/23		Switzerland		3,750,000		3,655,670
	Morgan Stanley, senior note, 3.70%, 10/23/24		United States		800,000		846,810
	sub. bond, 3.95%, 4/23/27		United States		3,600,000		3,759,908
	The Goldman Sachs Group Inc., senior bond, FRN thereafter, 3.691%, 6/05/28		United States		2,500,000		2,573,970

							10,836,358

	Chemicals 1.2%
a	Alpek SAB de CV, senior note, 144A, 4.25%, 9/18/29		Mexico		4,100,000		3,365,157



franklintempleton.com	Annual Report	35

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty U.S. Core Bond ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Chemicals (continued)
b	CNAC HK Finbridge Co. Ltd., senior note, Reg S, 4.875%, 3/14/25		Hong Kong		1,600,000	$	1,683,532
	Sherwin-Williams Co., senior note, 2.95%, 8/15/29		United States		4,900,000		4,839,825

							9,888,514

	Commercial Services & Supplies 0.5%
	Boardwalk Pipelines LP, senior note, 4.80%, 5/03/29		United States		3,950,000		2,985,232
	Republic Services Inc., senior bond, 3.95%, 5/15/28		United States		1,500,000		1,626,568

							4,611,800

	Consumer Finance 0.6%
	Capital One Financial Corp., senior note, 3.75%, 3/09/27		United States		4,850,000		4,759,190

	Containers & Packaging 0.2%
	WRKCo Inc., Sr. Unsecured, 4.00%, 3/15/28		United States		1,100,000		1,163,428
	WRKCo. Inc., senior note, 3.90%, 6/01/28		United States		700,000		720,236

							1,883,664

	Diversified Telecommunication Services 0.5%
	Telefonica Emisiones SA, senior bond, 4.895%, 3/06/48		Spain		4,200,000		4,670,339

	Electric Utilities 1.8%
	Baltimore Gas & Electric Co., senior bond, 3.50%, 8/15/46		United States		1,400,000		1,419,714
	Duke Energy Carolinas LLC, secured bond, 3.70%, 12/01/47		United States		1,400,000		1,546,986
	Duke Energy Corp., senior bond, 3.75%, 9/01/46		United States		400,000		385,343

	Enel Finance International NV,
	^a senior bond, 144A, 3.50%, 4/06/28		Netherlands		2,700,000		2,717,984
	^a senior note, 144A, 3.625%, 5/25/27		Netherlands		1,000,000		1,017,702
	^a senior note, 144A, 6.00%, 10/07/39		Netherlands		200,000		216,254
	Exelon Corp., senior bond, 4.05%, 4/15/30		United States		300,000		297,721
	Georgia Power Co., senior bond, 4.75%, 9/01/40		United States		1,400,000		1,382,199
	MidAmerican Energy Co., secured bond, 3.65%, 8/01/48		United States		1,100,000		1,185,943
	Public Service Electric & Gas Co., secured bond, 3.80%, 3/01/46		United States		1,100,000		1,172,984
a	State Grid Overseas Investment 2016 Ltd., senior note, 144A, 3.50%, 5/04/27		China		2,300,000		2,464,661
	Virginia Electric & Power Co., Sr. Unsecured, 3.80%, 9/15/47		United States		1,100,000		1,180,887

							14,988,378

	Electronic Equipment, Instruments & Components 0.1%
	Keysight Technologies Inc., senior note, 4.60%, 4/06/27		United States		1,100,000		1,130,780

	Energy Equipment & Services 0.8%
	Baker Hughes a GE Co. LLC/Baker Hughes Co-obligator Inc., senior bond, 4.08%, 12/15/47		United States		1,400,000		1,155,571
a	Schlumberger Holdings Corp., Sr. Unsecured, 144A, 3.90%, 5/17/28		United States		5,950,000		5,544,491

							6,700,062

	Equity Real Estate Investment Trusts (REITs) 0.1%
	Kimco Realty Corp., Sr. Unsecured, 4.25%, 4/01/45		United States		750,000		682,674

	Food & Staples Retailing 0.2%
	The Kroger Co., senior bond, 4.45%, 2/01/47		United States		1,350,000		1,491,559
	Walgreens Boots Alliance Inc., senior bond, 4.80%, 11/18/44		United States		500,000		493,634

							1,985,193

	Food Products 1.1%
	BAT Capital Corp., senior bond, 4.54%, 8/15/47		United States		750,000		688,034
	senior note, 3.222%, 8/15/24		United States		1,500,000		1,509,552
	Bunge Ltd. Finance Corp., senior note, 3.75%, 9/25/27		United States		1,450,000		1,327,625



36	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty U.S. Core Bond ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Food Products (continued)
	Kraft Heinz Foods Co., senior bond, 3.00%, 6/01/26		United States		4,100,000	$	3,994,180
	Tyson Foods Inc., senior bond, 5.10%, 9/28/48		United States		1,300,000		1,619,480

							9,138,871

	Health Care Providers & Services 1.7%
	Anthem Inc., senior bond, 3.70%, 9/15/49		United States		700,000		705,581
	senior bond, 4.375%, 12/01/47		United States		100,000		108,170
	senior note, 4.101%, 3/01/28		United States		1,200,000		1,294,451
a	Cigna Corp., senior note, 144A, 3.40%, 3/01/27		United States		4,900,000		4,981,688
	CVS Health Corp., senior bond, 4.875%, 7/20/35		United States		1,400,000		1,597,567
	senior note, 3.875%, 7/20/25		United States		500,000		517,568
	senior note, 4.10%, 3/25/25		United States		4,100,000		4,322,451
	HCA Inc., senior secured bond, first lien, 5.50%, 6/15/47		United States		900,000		986,533

							14,514,009

	Independent Power Producers & Energy Traders 0.5%
a	Colbun SA, senior note, 144A, 3.95%, 10/11/27		Chile		4,050,000		3,903,694

	Industrial Conglomerates 0.2%
	General Electric Co., senior bond, 4.125%, 10/09/42		United States		16,000		15,199
	senior bond, 4.50%, 3/11/44		United States		700,000		692,375
	senior note, 3.15%, 9/07/22		United States		900,000		910,374

							1,617,948

	Insurance 0.8%
	Metlife Inc., senior bond, 4.05%, 3/01/45		United States		400,000		420,425
	senior bond, 5.875%, 2/06/41		United States		1,100,000		1,410,504
	Reinsurance Group of America Inc, Sr. Unsecured, 3.90%, 5/15/29		United States		2,250,000		2,201,818
a	Swiss Re Treasury US Corp., senior bond, 144A, 4.25%, 12/06/42		United States		750,000		905,059
	The Allstate Corp., senior bond, 5.55%, 5/09/35		United States		1,800,000		2,253,622

							7,191,428

	Interactive Media & Services 0.2%
b	Tencent Holdings Ltd., senior note, Reg S, 3.28%, 4/11/24		China		1,250,000		1,298,220

	Internet & Direct Marketing Retail 0.7%
	Alibaba Group Holding Ltd., senior bond, 4.00%, 12/06/37		China		200,000		227,091
	senior bond, 4.40%, 12/06/57		China		700,000		935,150
	senior note, 3.40%, 12/06/27		China		4,700,000		4,942,497

							6,104,738

	IT Services 0.2%
	Fiserv Inc., senior bond, 4.40%, 7/01/49		United States		1,400,000		1,510,401

	Machinery 0.3%
a	Carrier Global Corp., senior note, 144A, 3.577%, 4/05/50		United States		3,000,000		2,710,113

	Media 0.5%
	Comcast Corp., senior bond, 3.30%, 2/01/27		United States		1,800,000		1,912,941
	senior bond, 3.40%, 7/15/46		United States		800,000		870,229
	senior note, 6.50%, 11/15/35		United States		200,000		292,742
	NBCUniversal Media LLC, senior bond, 4.45%, 1/15/43		United States		1,100,000		1,402,017

							4,477,929



franklintempleton.com	Annual Report	37

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty U.S. Core Bond ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Metals & Mining 0.5%
	Reliance Steel & Aluminum Co., senior note, 4.50%, 4/15/23		United States		3,000,000	$	2,973,639
	Southern Copper Corp., senior bond, 5.25%, 11/08/42		Mexico		1,300,000		1,347,964

							4,321,603

	Multiline Retail 0.5%
	Dollar Tree Inc., senior bond, 4.20%, 5/15/28		United States		4,000,000		4,002,607

	Oil, Gas & Consumable Fuels 2.4%
	Canadian Natural Resources Ltd., senior bond, 3.85%, 6/01/27		Canada		3,000,000		2,380,402
	Ecopetrol SA, senior bond, 4.125%, 1/16/25		Colombia		4,000,000		3,761,020
	Enable Midstream Partners LP, senior note, 3.90%, 5/15/24		United States		2,650,000		1,473,069
	Energy Transfer Operating LP, senior bond, 5.15%, 3/15/45		United States		850,000		660,745
	Enterprise Products Operating LLC, senior bond, 4.25%, 2/15/48		United States		1,150,000		1,079,146
	MPLX LP, senior bond, 4.70%, 4/15/48		United States		1,250,000		972,330
	Sabine Pass Liquefaction LLC, senior secured bond, first lien, 4.20%, 3/15/28		United States		4,000,000		3,443,097
	Sunoco Logistics Partner, senior bond, 5.40%, 10/01/47		United States		300,000		239,252
	TC PipeLines LP, senior note, 3.90%, 5/25/27		United States		2,550,000		2,426,573
	TransCanada PipeLines Ltd., senior bond, 4.875%, 5/15/48		Canada		1,200,000		1,310,546
	Valero Energy Corp., senior bond, 4.00%, 4/01/29		United States		500,000		489,080
	senior note, 4.35%, 6/01/28		United States		1,500,000		1,461,589
	Williams Companies, Inc., senior bond, 5.10%, 9/15/45		United States		700,000		667,724

							20,364,573

	Pharmaceuticals 0.3%
	Allergan Funding SCS, senior bond, 4.75%, 3/15/45		Luxembourg		1,400,000		1,517,508
	AstraZeneca Plc, senior bond, 4.00%, 9/18/42		United Kingdom		1,300,000		1,470,382

							2,987,890

	Real Estate Management & Development 0.6%
b	China Overseas Finance Cayman VI Ltd, senior note, Reg S, 5.95%, 5/08/24		Cayman Islands		3,700,000		4,182,280
	Healthcare Trust of America Holdings LP, senior bond, 3.75%, 7/01/27		United States		650,000		601,261

							4,783,541

	Road & Rail 0.3%
	Burlington Northern Santa Fe LLC, senior bond, 4.15%, 4/01/45		United States		1,700,000		1,998,627
	CSX Corp., senior bond, 4.25%, 11/01/66		United States		750,000		752,493

							2,751,120

	Semiconductors & Semiconductor Equipment 0.4%
	Maxim Integrated Products Inc., senior note, 3.375%, 3/15/23		United States		800,000		817,329
	senior note, 3.45%, 6/15/27		United States		2,450,000		2,515,513

							3,332,842

	Tobacco 0.3%
a	BAT International Finance PLC, senior note , 144A, 3.95%, 6/15/25		United Kingdom		2,600,000		2,555,825

	Trading Companies & Distributors 0.2%
	Aircastle Ltd., senior note, 4.25%, 6/15/26		Bermuda		2,250,000		1,933,282

	Total Corporate Bonds & Notes (Cost $226,924,867)						215,362,987

	U.S. Government & Agency Securities 35.9%
	U.S. Treasury Bond, 2.25%, 8/15/46		United States		27,460,000		33,063,556
	2.25%, 8/15/49		United States		3,440,000		4,186,319
	2.50%, 5/15/46		United States		1,225,000		1,541,442



38	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty U.S. Core Bond ETF (continued)



	Country		Principal Amount*		Value
Corporate Bonds & Notes (continued)
U.S. Government & Agency Securities (continued)
2.75%, 8/15/42		United States		4,740,000	$	6,122,562
2.75%, 11/15/42		United States		17,050,000		22,031,131
U.S. Treasury Note, 1.375%, 8/31/23		United States		87,600,000		90,765,273
1.50%, 3/31/23		United States		30,273,000		31,376,309
1.50%, 9/30/24		United States		14,050,000		14,766,769
1.50%, 10/31/24		United States		5,750,000		6,048,506
1.625%, 10/15/20		United States		29,700,000		29,939,572
1.875%, 9/30/22		United States		3,000,000		3,121,992
1.875%, 8/31/24		United States		5,150,000		5,490,383
1.875%, 6/30/26		United States		5,200,000		5,632,656
2.125%, 2/29/24		United States		11,740,000		12,566,845
2.125%, 3/31/24		United States		11,000,000		11,782,891
2.75%, 9/15/21		United States		27,000,000		27,992,461

Total U.S. Government & Agency Securities (Cost $289,443,502)						306,428,667

Municipal Bonds 4.5%
Alabama 0.6%
Southeast Alabama Gas Supply Dist., Revenue, Libor-Project #2, Series, 1.91%, 6/01/49				5,000,000		4,962,850

California 1.7%
California State GO, Various Purpose, 3.00%, 10/01/37				4,500,000		4,667,445
Contra Costa Community College Dist., Refunding, 2.926%, 8/01/38				10,000,000		10,077,000

						14,744,445

New York 1.7%
Metropolitan Transportation Auth., Refunding, Series B, 5.00%, 11/15/52				7,255,000		8,201,850
Triborough Bridge & Tunnel Auth., MTA Bridges and Tunnels, Refunding, Series B, 3.427%, 11/15/44				6,000,000		6,037,980

						14,239,830

Texas 0.5%
Texas Water Dev. Board, State Water Implementation Fund, Master Trust, Series A, 4.00%, 10/15/44				3,750,000		4,361,812

Total Municipals (Cost $38,490,880)						38,308,937

Mortgage-Backed Securities 24.4%
Fannie Mae 1.3%
Federal Home Loan Mortgage Corp., 2.50%, 4/01/49		United States		920,065		954,545
2.50%, 6/01/49		United States		31,463		32,656
2.50%, 9/01/49		United States		156,180		162,152
2.50%, 11/01/49		United States		890,436		924,487
2.50%, 12/01/49		United States		397,001		412,183
3.00%, 5/01/49		United States		693,523		727,844
4.00%, 3/01/49		United States		7,038,262		7,579,448

						10,793,315

Freddie Mac 23.1%
Federal National Mortgage Association, 2.50%, 12/01/34		United States		12,658,024		13,162,902
2.50%, 8/01/49		United States		89,385		92,803
2.50%, 8/01/49		United States		455,268		472,341
2.50%, 12/01/49		United States		1,429,922		1,484,484
3.00%, 3/01/50		United States		52,820,968		55,502,243
3.00%, 4/01/50		United States		24,500,000		25,693,418



franklintempleton.com	Annual Report	39

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty U.S. Core Bond ETF (continued)



		Country		Principal Amount*		Value
	Mortgage-Backed Securities (continued)
	Freddie Mac (continued)
	3.50%, 8/01/49		United States		26,883,870	$	28,762,676
	3.50%, 2/01/50		United States		29,693,403		31,434,747
	4.00%, 2/01/50		United States		14,841,411		15,860,839
	4.50%, 7/01/47		United States		14,549,336		15,894,881
	4.50%, 5/01/48		United States		8,093,554		8,878,119

							197,239,453

	Total Mortgage-Backed Securities (Cost $203,523,414)						208,032,768

	Foreign Government and Agency Securities 2.9%
	Colombia 0.4%
	Government of Colombia, senior bond, 4.375%, 7/12/21				1,900,000		1,921,869
	senior bond, 5.00%, 6/15/45				1,850,000		1,914,750

							3,836,619

	Indonesia 0.5%
a	Government of Indonesia, senior bond, 144A				1,750,000		1,817,662
a	Indonesia Government International Bond, senior note, 144A				2,100,000		2,167,155

							3,984,817

	Mexico 0.5%
	Government of Mexico,
	senior bond, 3.60%, 1/30/25				1,200,000		1,223,700
	senior note, 4.15%, 3/28/27				2,700,000		2,771,550

							3,995,250

	Panama 0.5%
a	Panama Notas del Tesoro, senior note, 144A				4,050,000		4,078,826

	Supranational 0.5%
a	The African Export-Import Bank, senior bond, 144A				4,500,000		4,254,390

	Uruguay 0.5%
	Government of Uruguay, senior bond				3,875,000		4,240,257

	Total Foreign Government and Agency Securities (Cost $25,425,057)						24,390,159

	Asset-Backed Securities 2.9%
	American Express Credit Account Master Trust, Series 2019-1, Class A, ABS, 2.87%, 10/15/24		United States		6,500,000		6,705,135
a	BX Commercial Mortgage Trust, Series 2020-BXLP, Class A, 144A, FRN thereafter, 1.505%, 12/15/36		United States		3,090,000		2,919,882
	Capital One Multi-Asset Execution Trust,
	Series 2019-A1, Class A1, 2.84%, 12/15/24		United States		4,460,000		4,603,272
	Series 2019-A2, Class A2, 1.72%, 8/15/24		United States		5,510,000		5,589,263
	Citibank Credit Card Issuance Trust, Series 2017-A7 , Class A7, FRN thereafter, 1.375%, 8/08/24		United States		2,000,000		1,974,100
	Discover Card Execution Note Trust, Series 2019-A3, Class A, 1.89%, 10/15/24		United States		3,220,000		3,250,361

	Total Asset-Backed Securities (Cost $24,990,222)						25,042,013

	Total Investments (Cost $808,797,942) 95.8%						817,565,531
	Other Assets, less Liabilities 4.2%						35,966,240

	Net Assets 100.0%					$	853,531,771



40	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty U.S. Core Bond ETF (continued)

See Abbreviations on page 56.

*The principal amount is stated in U.S. dollars unless otherwise indicated.

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the aggregate value of these securities was $64,341,666, representing 7.5% of net assets.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the aggregate value of these securities was $10,066,845, representing 1.2% of net assets.

At March 31, 2020, the Fund had the following credit default swap contracts outstanding. See Note 8.


Credit Default Swap Contracts

Description	Periodic Payment Rate Received (Paid)			Payment Frequency		Maturity Date		Notional Amount		Value			Unamortized Upfront Payments (Reciepts)			Unrealized Appreciation (Depreciation)
Contracts to Sell Protection^a
CDX.NA.IG.33		1	%		Quarterly		12/20/24		3,000,000		(9,772	)		(32,522	)		22,750
CDX.NA.IG.33		1	%		Quarterly		12/20/24		10,200,000		(33,225	)		162,061			(195,286	)
Italy Government International Bond		1	%		Quarterly		12/20/29		9,000,000		(840,709	)		(437,804	)		(402,905	)

Total																	(575,441	)

^aThe fund enters contracts to sell protection to create a long credit position.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).


Futures Contracts

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Index Contracts
U.S. Treasury 5 Yr. Note		Long		48	$	6,017,250		6/30/20	$	181,666
U.S. Treasury 10 Yr. Note		Long		40		5,547,500		6/19/20		210,767
Ultra 10 Yr. U.S. Treasury Note		Short		11		1,716,344		6/19/20		(4,828	)

Total Futures Contracts									$	387,605

*As of period end.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2020



	Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty U.S. Low Volatility ETF			Franklin Liberty U.S. Core Bond ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	561,002,206		$	82,755,598		$	808,797,942

Value – Unaffiliated issuers	$	541,383,321		$	73,499,218		$	817,565,531
Cash		5,192,580			679,143			95,819,153
Receivables:
Investment securities sold		3,700,795			—			9,911,030
Dividend and Interest		5,692,976			118,912			4,201,801
Deposits with brokers for:
Futures contracts		352,835			—			91,846
Swap Contracts		—			—			960,930
Variation margin on centrally cleared swap contracts		—			—			465,298

Total assets		556,322,507			74,297,273			929,015,589

Liabilities:
Payables:
Investment securities purchased		900,581			—			35,682,024
Capital shares redeemed		—			—			36,863,610
Management fees		120,897			1,455			58,498
Transfer agent fees		14,300			14,300			8,400
Distributions to shareholders		1,730,568			—			1,888,060
Custodian fees		18,823			1,155			4,500
Professional fees		45,990			36,008			26,902
Reports to shareholders		843			1,003			4,630
Variation margin on futures contracts		74,075			—			3,385
Registration and filing fees		71,311			15,876			98,100
Unrealized depreciation on OTC swap contracts		—			—			402,905
OTC swap contracts premiums received		—			—			437,804
Accrued expenses and other liabilities		7,404			4,886			5,000

Total liabilities		2,984,792			74,683			75,483,818

Net assets, at value	$	553,337,715		$	74,222,590		$	853,531,771

Net assets consist of:
Paid-in capital	$	573,759,111		$	86,424,495		$	841,985,535
Total distributable earnings (loss)		(20,421,396	)		(12,201,905	)		11,546,236

Net assets, at value	$	553,337,715		$	74,222,590		$	853,531,771

Shares outstanding		22,850,000			2,400,000			33,550,000

Net asset value per share	$	24.22		$	30.93		$	25.44



42	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2020



	Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty U.S. Low Volatility ETF			Franklin Liberty U.S. Core Bond ETF^b
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	—		$	902,509		$	—
Interest:
Unaffiliated issuers		10,940,416			—			10,461,465

Total investment income		10,940,416			902,509			10,461,465

Expenses:
Management fees (Note 3a)		1,759,381			143,655			684,435
Transfer agent fees		15,600			15,600			8,400
Custodian fees		20,493			1,391			4,500
Reports to shareholders		10,062			10,024			6,000
Registration and filing fees		71,481			16,520			100,369
Professional fees		65,176			54,672			28,940
Trustees’ fees and expenses		27,668			3,406			27,730
Other		2,307			1,211			8,971

Total expenses		1,972,168			246,479			869,345
Expenses waived/paid by affiliates (Note 3c)		(780,871	)		(102,824	)		(184,910	)

Net expenses		1,191,297			143,655			684,435

Net investment income		9,749,119			758,854			9,777,030

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		4,424,530			(3,051,657	)		5,577,000
In-kind redemptions		—			170,411			—
Foreign currency transactions		130			185			—
Futures contracts		(1,144,168	)		—			850,090
Swap contracts		10,471			—			(1,297,249	)

Net realized gain (loss)		3,290,963			(2,881,061	)		5,129,841

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(19,780,326	)		(11,385,385	)		8,767,589
Translation of other assets and liabilities denominated in foreign currencies		—			(392	)		—
Futures contracts		(67,759	)		—			387,605
Swap contracts		—			—			(575,441	)

Net change in unrealized appreciation (depreciation)		(19,848,085	)		(11,385,777	)		8,579,753

Net realized and unrealized gain (loss)		(16,557,122	)		(14,266,838	)		13,709,594

Net increase (decrease) in net assets resulting from operations	$	(6,808,003	)	$	(13,507,984	)	$	23,486,624

^aForeign taxes withheld on dividends	$	—		$	7,168		$	—

^bFor the period September 17, 2019 (commencement of operations) to March 31, 2020.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	43

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty Investment Grade Corporate ETF						Franklin Liberty U.S. Low Volatility ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	9,749,119		$	941,221		$	758,854		$	188,665
Net realized gain (loss)		3,290,963			(722,823	)		(2,881,061	)		251,076
Net change in unrealized appreciation (depreciation)		(19,848,085	)		370,103			(11,385,777	)		1,276,600

Net increase (decrease) in net assets resulting from operations		(6,808,003	)		588,501			(13,507,984	)		1,716,341

Distributions to shareholders (Note 1e)		(12,798,430	)		(1,010,692	)		(613,357	)		(321,023	)

Capital share transactions: (Note 2)		554,879,195			(21,066,405	)		74,900,836			6,042,757

Net increase (decrease) in net assets		535,272,762			(21,488,596	)		60,779,495			7,438,075
Net assets:
Beginning of year		18,064,953			39,553,549			13,443,095			6,005,020

End of year (Note 1e)	$	553,337,715		$	18,064,953		$	74,222,590		$	13,443,095



44	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin Liberty U.S. Core Bond ETF

	Year Ended March 31, 2020
Increase (decrease) in net assets:
Operations:
Net investment income	$	9,777,030
Net realized gain (loss)		5,129,841
Net change in unrealized appreciation (depreciation)		8,579,753

Net increase (decrease) in net assets resulting from operations		23,486,624

Distributions to shareholders (Note 1e)		(12,075,002	)

Capital share transactions: (Note 2)		842,120,149

Net increase (decrease) in net assets		853,531,771
Net assets:
Beginning of year		—

End of year (Note 1e)	$	853,531,771

^aFor the period September 17, 2019 (commencement of operations) to March 31, 2020.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	45

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of forty-two separate funds, three of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Each of the Funds are an exchange traded fund (ETF) and are actively managed, thus they are not designed to track an index. The Trust began offering shares of Franklin Liberty U.S. Core Bond ETF.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

Equity securities and exchange traded funds listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

Debt securities generally trade in the over-the-counter (OTC) market rather than on a securities exchange. The Funds’ pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value.



46	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

an event has occurred that may call into question the reliability of the values of the foreign securities held by the Funds. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.

b. Foreign Currency Translation

c. Derivative Financial Instruments

Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty. Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.



franklintempleton.com	Annual Report	47

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

c. Derivative Financial Instruments (continued)

market (OTC credit default swaps) or may be executed in a multilateral trade facility platform, such as a registered exchange (centrally cleared credit default swaps). The underlying referenced debt obligation may be a single issuer of corporate or sovereign debt, a credit index, a basket of issuers or indices, or a tranche of a credit index or basket of issuers or indices. In the event of a default of the underlying referenced debt obligation, the buyer is entitled to receive the notional amount of the credit default swap contract from the seller in exchange for the referenced debt obligation, a net settlement amount equal to the notional amount of the credit default swap less the recovery value of the referenced debt obligation, or other agreed upon amount. For centrally cleared credit default swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable. Over the term of the contract, the buyer pays the seller a periodic stream of payments, provided that no event of default has occurred. Such periodic payments are accrued daily as an unrealized appreciation or depreciation until the payments are made, at which time they are realized. Upfront payments and receipts are reflected in the Statements of Assets and Liabilities and represent compensating factors between stated terms of the credit default swap agreement and prevailing market conditions (credit spreads and other relevant factors). These upfront payments and receipts are amortized over the term of the contract as a realized gain or loss in the Statements of Operations.

objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

Certain or all Funds entered into exchange traded futures contracts primarily to manage and/or gain exposure to equity price risk. A futures contract is an agreement between the Fund and a counterparty to buy or sell an asset at a specified price on a future date. Required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable in the Statements of Assets and Liabilities.

See Note 8 regarding other derivative information.

d. Income and Deferred Taxes



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

e. Security Transactions, Investment Income, Expenses and Distributions

not available. In such cases, the dividend is recorded as soon as the information is received by the Funds. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

For the year ended March 31, 2019, distributions to shareholders were as follows:



	Franklin Liberty International Opportunities ETF			Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty U.S. Low Volatility ETF
Distributions to shareholders	$	(168,938	)	$	(1,010,692	)	$	(321,023	)

f. Accounting Estimates

g. Guarantees and Indemnifications

Under the Trust’s organizational documents, its officers and trustees are indemnified by the Trust against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust, on behalf of the Funds, enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. Currently, the Trust expects the risk of loss to be remote.

2. Shares of Beneficial Interest

Shares of the Funds are issued and redeemed at their respective NAV only in aggregations of a specific number of shares or multiples thereof (Creation Units). Only certain large institutional investors (Authorized Participants) may engage in creation or redemption transactions directly with the Funds. Once created, shares of the Funds generally trade in the secondary market in amounts less than one Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)

At March 31, 2020, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin Liberty Investment Grade Corporate ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		22,100,000		$	554,879,195			50,000		$	1,200,485
Shares redeemed		—			—			(950,000	)		(22,266,890	)

Net increase (decrease)		22,100,000		$	554,879,195			(900,000	)	$	(21,066,405	)


	Franklin Liberty U.S. Low Volatility ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		2,050,000		$	76,346,270			250,000		$	7,630,864
Shares redeemed		(50,000	)		(1,445,434	)		(50,000	)		(1,588,107	)

Net increase (decrease)		2,000,000		$	74,900,836			200,000		$	6,042,757


	Franklin Liberty U.S. Core Bond ETF

	Year Ended March 31, 2020^a

	Shares			Amount
Shares sold		38,500,001		$	968,931,821
Shares redeemed		(4,950,001	)		(126,811,672	)

Net increase (decrease)		33,550,000		$	842,120,149

^aFor the period September 17, 2019 (commencement of operations) to March 31, 2020.

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Institutional, LLC (FT Institutional)		Investment manager
Franklin Templeton Investimentos (Brasil) Ltda. (FTI Brasil)		Investment manager
Franklin Templeton Investment Management Limited (FTIML)		Investment manager
Franklin Templeton Investment Trust Management Co., Ltd. (FT Korea)		Investment manager
Franklin Templeton Investments (ME) Limited (FTIME)		Investment manager



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)



Subsidiary		Affiliation
Franklin Templeton Investments Corp. (FTIC)		Investment manager
Templeton Asset Management Ltd. (TAML)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter

a. Management Fees

Franklin Liberty U.S. Low Volatility ETF and Franklin Liberty U.S. Core Bond ETF pay an investment management fee to Advisers of 0.290% and 0.150%, respectively, per year of the average daily net assets of each of the Funds.

Franklin Liberty Investment Grade Corporate ETF pays an investment management fee to Advisers based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.625%		Up to and including $100 million
0.500%		Over $100 million, up to and including $250 million
0.450%		Over $250 million, up to and including $7.5 billion
0.440%		Over $7.5 billion, up to and including $10 billion
0.430%		Over $10 billion, up to and including $12.5 billion
0.420%		Over $12.5 billion, up to and including $15 billion
0.400%		Over $15 billion, up to and including $17.5 billion
0.380%		Over $17.5 billion, up to and including $20 billion
0.360%		Over $20 billion, up to and including $35 billion
0.355%		Over $35 billion, up to and including $50 billion
0.350%		In excess of $50 billion

For the year ended March 31, 2020, the gross effective investment management fee rate was 0.625% of the Franklin Liberty Investment Grade Corporate ETF’s average daily net assets.

Effective October 1, 2019, the Franklin Liberty U.S. Low Volatility ETF’s investment management fee was reduced, as approved by the board of trustees. Prior to October 1, 2019, the Franklin Liberty U.S. Low Volatility ETF paid the investment manager a fee equal to an annual rate of 0.50% of the value of its average daily net assets. Effective October 1, 2019, the Franklin Liberty U.S. Low Volatility ETF pays the investment manager a fee equal to an annual rate of 0.29% of the value of its average daily net assets.

b. Administrative Fees

c. Waiver and Expense Reimbursements

Advisers has contractually agreed in advance to waive or limit its fees and to assume as its own expense certain expenses otherwise payable by Franklin Liberty Investment Grade Corporate ETF, Franklin Liberty U.S. Low Volatility ETF, and Franklin Liberty U.S. Core Bond ETF so that the expenses (including acquired fund fees and expenses) of the Funds do not exceed 0.35%, 0.50%, and 0.15% respectively, based on the average net assets (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2020. Total expenses waived or paid are not subject to recapture subsequent to the Funds’ fiscal year end.



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

d. Other Affiliated Transactions

At March 31, 2020, the shares of the funds were owned by the following investment companies:



Funds	Shares		Percentage of Outstanding Shares^a
Franklin Liberty Investment Grade Corporate ETF
Franklin Conservative Allocation Fund		2,227,175		9.7%
Franklin Total Return Fund		18,335,000		80.2%

		20,562,175		89.9%


Franklin Liberty U.S. Low Volatility ETF
Franklin Managed Income Fund		1,000,000		41.7%


Franklin Liberty U.S Core Bond ETF
Franklin Conservative Allocation Fund		11,349,425		33.8%
Franklin Moderate Allocation Fund		12,685,848		37.8%
Franklin Growth Allocation Fund		3,693,100		11.0%
Franklin LifeSmart™ 2020 – 2055 Retirement Target Funds		2,062,703		6.1%

		29,791,076		88.7%

^aInvestment activities of significant shareholders could have a material impact on the Funds.

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2020, the capital loss carryforwards were as follows:



	Franklin Liberty Low Volatility ETF

	2020
Capital loss carryforwards not subject to expiration:
Short-term	$	2,874,568

During the year ended March 31, 2020, FTLG utilized $909,692 as capital loss carryforward.

The tax character of distributions paid during the years ended March 31, 2020 and 2019, were as follows:



	Franklin Liberty Investment Grade Corporate ETF				Franklin Liberty U.S Low Volatility ETF				Franklin Liberty U.S Core Bond ETF

	2020		2019		2020		2019		2020		2019
Distributions paid from:
Ordinary income	$	12,798,430	$	1,010,692	$	613,357	$	186,923	$	11,995,769	$	—
Long-term Capital Gain		—		—		—		134,100		79,233		—

Total	$	12,798,430	$	1,010,692	$	613,357	$	321,023	$	12,075,002	$	—



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

At March 31, 2020, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:



	Franklin Liberty Investment Grade Corporate ETF			Franklin Liberty U.S. Low Volatility ETF			Franklin Liberty U.S. Core Bond ETF
Cost of investments	$	562,805,193		$	82,989,811		$	809,755,909

Unrealized appreciation	$	8,286,678		$	909,682		$	25,553,059
Unrealized depreciation		(29,708,550	)		(10,400,275	)		(17,743,437	)

Net unrealized appreciation (depreciation)	$	(21,421,872	)	$	(9,490,593	)	$	7,809,622

Distributable earnings-undistributed ordinary income	$	2,731,044		$	163,638		$	5,406,620

Distributable earnings-undistributed Capital Gain		—			—		$	218,054

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2020, were as follows:



	Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Core Bond ETF
Purchases	$	713,327,814	$	14,336,550	$	1,301,458,703
Sales	$	172,478,725	$	14,335,453	$	1,031,520,252

In-kind transactions associated with creation and redemptions for the year ended March 31, 2020, were as follows:



	Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Core Bond ETF
Cost of Securities Received	$	—	$	75,719,566	$	—
Value of Securities Delivered^a	$	156,250	$	1,427,075	$	8,521,827

^aRealized gains and losses from in-kind redemptions, as shown on the Statement of Operations, are not recognized by the Funds for tax purposes.

6. Concentration of Risk

7. Novel Coronavirus Pandemic



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NOTES TO FINANCIAL STATEMENTS

8. Other Derivative Information

For the year ended March 31, 2020, the Funds investments in derivative contracts are reflected in the Statements of Assets and Liabilities as follows:

Asset Derivatives

Liability Derivatives

Statements of Assets and
Liabilities Location

Fair Value

Statements of Assets and
Liabilities Location

Fair Value

Franklin Liberty Investment
Grade Corporate ETF

Interest Rate contracts

Variation margin on futures contracts

1,266,090

Variation margin on futures contracts

1,333,849

Franklin Liberty U.S. Core
Bond ETF

Interest Rate contracts

Variation margin on futures contracts

392,433

Variation margin on futures contracts

4,828

Credit Default Contracts

Swap Contracts

22,750

Swap Contracts

598,191

Totals

415,183

603,019

For the year ended March 31, 2020, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:



Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period			Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period
Franklin Liberty Investment Grade Corporate ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Interest Rate contracts	Futures contracts	$	(1,144,168	)	Futures contracts	$	(67,759	)

Credit Default Contracts	Swap contracts		10,471		Swap contracts		—

Totals		$	(1,133,697	)		$	(67,759	)

Franklin Liberty U.S. Core Bond ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Interest Rate contracts	Futures contracts	$	850,090		Futures contracts	$	387,605

Credit Default Contracts	Swap contracts		(1,297,249	)	Swap contracts		(575,441	)

Totals		$	(447,159	)		$	(187,836	)

For the year ended March 31, 2020, the average month end notional amount of futures and swaps contracts were as follows:.



	Franklin Liberty Investment Grade Corporate ETF		Franklin Liberty U.S. Low Volatility ETF		Franklin Liberty U.S. Core Bond ETF
Futures contracts	$	40,184,588	$	—	$	18,138,381
Credit Default Contracts	$	553,846	$	—	$	7,028,571

See Note 1(c) regarding derivative financial instruments.



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

A summary of inputs used as of March 31, 2020, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3		Total

Franklin Liberty Investment Grade Corporate ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	534,062,743	$	—	$	534,062,743
U.S. Government & Agency Securities		—		7,055,578		—		7,055,578
Short-Term Investments		—		265,000		—		265,000

Total Investments in Securities	$	—	$	541,383,321	$	—	$	541,383,321

Other Financial Instruments:
Futures Contracts	$	1,266,090	$	—	$	—	$	1,266,090

Liabilities:
Other Financial Instruments:
Futures Contracts	$	1,333,849	$	—	$	—	$	1,333,849

Franklin Liberty U.S. Low Volatility ETF

Assets:
Investments in Securities:^a
Equity Investments^b	$	73,399,218	$	—	$	—	$	73,399,218
Short-Term Investments		—		100,000		—		100,000

Total Investments in Securities	$	73,399,218	$	100,000	$	—	$	73,499,218



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin Liberty U.S. Core Bond ETF

Assets:
Investments in Securities:^a
Corporate Bonds & Notes	$	—	$	215,362,987	$	—	$	215,362,987
U.S. Government & Agency Securities		—		306,428,667		—		306,428,667
Municipal Bonds		—		38,308,937		—		38,308,937
Mortgage-Backed Securities		—		208,032,768		—		208,032,768
Foreign Government & Agency Securities		—		24,390,159		—		24,390,159
Asset-Backed Securities		—		25,042,013		—		25,042,013

Total Investments in Securities	$	—	$	817,565,531	$	—	$	817,565,531

Other Financial Instruments:
Futures Contracts	$	392,433	$	—	$	—	$	392,433
Swap Contracts	$	—	$	22,750	$	—	$	22,750

Liabilities:
Other Financial Instruments:
Futures Contracts	$	4,828	$	—	$	—	$	4,828
Swap Contracts	$	—	$	598,191	$	—	$	598,191

^aFor detailed categories, see the accompanying Statement of Investments.

^bIncludes common and preferred stocks.

10. New Accounting Pronouncement

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in the ASU provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021. The ASU is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying this ASU.

11. Subsequent Events

The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.

Abbreviations


Selected Portfolio
FHLB		Federal Home Loan Bank
FRN		Floating Rate Note
REIT		Real Estate Investment Trust
ADR		American Depositary Receipt+
GO		General Obligation
MTA		Metropolitan Transit Authority
REIT		Real Estate Investment Trust



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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin Liberty Investment Grade Corporate ETF, Franklin Liberty U.S. Core Bond ETF and Franklin Liberty U.S. Low Volatility ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments of Franklin Liberty Investment Grade Corporate ETF, Franklin Liberty U.S. Core Bond ETF, and Franklin Liberty U.S. Low Volatility ETF (the “Funds”) as of March 31, 2020, the related statements of operations, and of changes in net assets for each of the periods indicated in the table below, including the related notes, and each of the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of March 31, 2020, and the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our auditsof 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 March 31, 2020 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 opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 19, 2020

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.



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Tax Information (unaudited)

Under Section 852(b)(3)(C) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as long term capital gain dividends for the fiscal year ended March 31, 2020:



		Franklin Liberty U.S. Core Bond ETF
		$527,460

Under Section 871(k)(2)(C) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as short term capital gain dividends for purposes of the tax imposed under Section 871(a)(1)(A) of the Internal Revenue Code for the fiscal year ended March 31, 2020:



Franklin Liberty Investment Grade Corporate ETF	Franklin Liberty U.S. Core Bond ETF
$1,284,358		$957,154

Under Section 854(b)(1)(A) of the Internal Revenue Code, Franklin Liberty U.S. Low Volatility ETF hereby reports 94.52% of the ordinary income dividends as income qualifying for the dividends received deduction for the fiscal year ended March 31, 2020.



		Franklin Liberty U.S. Low Volatlity ETF
		$833,135

Under Section 871(k)(1)(C) of the Internal Revenue Code, the Funds hereby report the maximum amount allowable but no less than the following amounts as interest related dividends for purposes of the tax imposed under Section 871(a)(1)(A) of the Internal Revenue Code for the fiscal year ended March 31, 2020:



Franklin Liberty Investment Grade Corporate ETF	Franklin Liberty U.S. Low Volatlity ETF		Franklin Liberty U.S. Core Bond ETF
$8,615,268		$2,838		$9,681,682



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Board Members and Officers

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee and Trustee	Since 2016	44	Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and FlipKart Limited (2019-present) (eCommerce company); formerly, CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since January 2020	44	Fluor Corporation (construction and engineering) (2014-present), IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present) and Focus Financial Partner, LLC (financial services) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	44	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); and formerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).



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Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	49	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, President and Director, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; and formerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Interim Chief Compliance Officer	Since January 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 41 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	Vice President – AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 41 of the investment companies in Franklin Templeton.



60	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Interested Board Members and Officers (continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer – Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; and formerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since May 2019	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of two of the investment companies in Franklin Templeton.

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 41 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.

The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request.

Shareholders may call (800) DIAL BEN/342-5236 to request the SAI.



franklintempleton.com	Annual Report	61

FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

Premium/Discount Information

Information about the differences between the daily market price on the secondary market for the shares of the Fund and the Fund’s net asset value may be found on the Fund’s website at franklintempleton.com.



62	Annual Report	franklintempleton.com

To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2020

LOGO


Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Franklin LibertyQ U.S. Mid Cap Equity ETF

Franklin Templeton



Contents

Annual Report

Economic and Market Overview			2
Franklin LibertyQ U.S. Equity ETF			3
Franklin LibertyQ U.S. Mid Cap Equity ETF			9
Franklin LibertyQ U.S. Small Cap Equity ETF			15
Financial Highlights and Statements of Investments			21
Financial Statements			45
Notes to Financial Statements			49
Report of Independent Registered Public Accounting Firm			58
Tax Information			59
Board Members and Officers			60
Shareholder Information			63

Visit franklintempleton.com/investor/investments-and-solutions/investment-options/etfs/ for fund

updates and documents.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



franklintempleton.com	Not part of the annual report	1

ANNUAL REPORT

Economic and Market Overview

The Fed lowered the federal funds target rate three times in 2019 to a range of 1.50%–1.75%. The labor market remained strong through February 2020 and supported consumer spending, though some parts of the economy struggled as annual industrial production contracted and capital spending declined.

As a result, the unemployment rate jumped from a 50-year low of 3.5% in February 2020 to 4.4% at period-end, and the economy contracted in the first quarter, following an expansion that lasted more than a decade.¹

1. Source: Bureau of Labor Statistics.



2	Annual Report	franklintempleton.com

Franklin LibertyQ U.S. Equity ETF

This annual report for Franklin LibertyQ U.S. Equity ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Large Cap Equity Index (the Underlying Index).¹ Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000^® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000^® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of -10.27% based on market price and net asset value (NAV). In comparison, the LibertyQ U.S. Large Cap Equity Index posted a -10.12% total return for the same period, while the Russell 1000^® Index posted a -8.03% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Information Technology		19.6%
Consumer Staples		16.6%
Consumer Discretionary		15.2%
Industrials		13.2%
Health Care		11.8%
Utilities		7.9%
Communication Services		4.7%
Real Estate		3.9%
Financials		2.6%
Energy		2.2%

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Large Cap Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. The LibertyQ U.S. Large Cap Equity Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell (Russell) based on the Russell 1000^® Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 1000^® Index is market capitalization weighted and measures performance of the largest companies in the Russell 3000^® Index, which represents the majority of the U.S. market’s total capitalization.

2. Source: FactSet.

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

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 22.



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FRANKLIN LIBERTYQ U.S. EQUITY ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry*	% of Total Net Assets
Gilead Sciences Inc. Health Care		1.4%
Biogen Inc. Health Care		1.3%
Microsoft Corp. Information Technology		1.3%
NextEra Energy Inc. Utilities		1.3%
Bristol-Myers Squibb Co. Health Care		1.2%
Apple Inc. Information Technology		1.2%
Johnson & Johnson Health Care		1.2%
Costco Wholesale Corp. Consumer Staples		1.2%
Walmart Inc. Consumer Staples		1.2%
Intel Corp. Information Technology		1.2%

Manager’s Discussion

For the fiscal year ended March 31, 2020, individual holdings that lifted the Fund’s absolute return included Amedisys, Cirrus Logic and LHC Group. Individual holdings that hindered the Fund’s absolute return included Insperity, Essent Group and American Eagle Outfitters.

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, low volatility and quality significantly benefited the Fund’s relative performance for the reporting period. In contrast, the value factor significantly detracted from the Fund’s relative return, while momentum was a marginal detractor.

Thank you for your participation in Franklin LibertyQ U.S. Equity ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



4	Annual Report	franklintempleton.com

CFA^® is a trademark owned by CFA Institute.

FRANKLIN LIBERTYQ U.S. EQUITY ETF

Performance Summary as of March 31, 2020

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on

NAV³

Based on
market price⁴

1-Year

-10.27%

Since Inception (4/26/17)

+14.37%

+4.69%

See page 7 for Performance Summary footnotes.



franklintempleton.com	Annual Report	5

FRANKLIN LIBERTYQ U.S. EQUITY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

4/26/17–3/31/20

LOGO

See page 7 for Performance Summary footnotes.



6	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. EQUITY ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment

Income

$0.674663

Total Annual Operating Expenses⁶

0.15%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. To the extent the Fund concentrates in a specific industry or group of industries, the Fund will carry much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries; there is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. The LibertyQ U.S. Large Cap Equity Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell (Russell) based on the Russell 1000 Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 1000 Index is market capitalization weighted and measures performance of the largest companies in the Russell 3000 Index, which represents the majority of the U.S. market’s total capitalization.

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



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FRANKLIN LIBERTYQ U.S. EQUITY ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	846.20	$	0.69	$	1024.25	$	0.76		0.15	%

2. Reflects expenses after fee waivers and expense reimbursements.



8	Annual Report	franklintempleton.com

Franklin LibertyQ U.S. Mid Cap Equity ETF

This annual report for Franklin LibertyQ U.S. Mid Cap Equity ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Mid Cap Equity Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell Midcap^® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell Midcap^® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of -16.72% based on market price and -16.50% based on net asset value (NAV). In comparison, the LibertyQ U.S. Mid Cap Equity Index posted a -16.31% total return for the same period, while the Russell Midcap^® Index posted a -18.31% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 11.


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Industrials		19.5%
Consumer Discretionary		19.1%
Information Technology		15.6%
Financials		11.7%
Consumer Staples		9.9%
Health Care		9.0%
Real Estate		7.0%
Utilities		4.3%
Materials		2.1%
Communication Services		1.4%

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Mid Cap Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. The LibertyQ U.S. Mid Cap Equity Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell (Russell). It is based on the Russell Midcap^® Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell Midcap^® Index is market capitalization weighted and measures performance of the smallest companies in the Russell 1000^® Index, which represents a modest amount of the Russell 1000^® Index’s total market capitalization.

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 29.



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FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry*	% of Total Net Assets
Clorox Co. Consumer Staples		1.5%
The Kroger Co. Consumer Staples		1.5%
IDEXX Laboratories Inc. Health Care		1.3%
Mettler-Toledo International Inc. Health Care		1.3%
Dollar General Corp. Consumer Discretionary		1.3%
Cadence Design Systems Inc. Information Technology		1.2%
Synopsys Inc. Information Technology		1.2%
MSCI Inc. Financials		1.2%
Lam Research Corp. Information Technology		1.2%
The Hershey Co. Consumer Staples		1.2%

Manager’s Discussion

For the fiscal year ended March 31, 2020, individual holdings that lifted the Fund’s absolute return included Lam Research, KLA and Citrix Systems. Individual holdings that hindered the Fund’s absolute return included Ventas, Kohl’s and Synchrony Financial.

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, quality and low volatility significantly benefited the Fund’s relative performance for the reporting period, and momentum was a modest contributor. In contrast, the value factor detracted significantly from the Fund’s relative return.

Thank you for your participation in Franklin LibertyQ U.S. Mid Cap Equity ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



10	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

Performance Summary as of March 31, 2020

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on

NAV³

Based on

market price⁴

1-Year

-16.50%

-16.72%

-16.50%

-16.72%

Since Inception (4/26/17)

+1.96%

+1.78%

+0.67%

+0.60%



franklintempleton.com	Annual Report	11

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

4/26/17–3/31/20

LOGO

See page 13 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment

Income

$0.470967

Total Annual Operating Expenses⁶

0.30%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Historically, mid-size company securities have been more volatile in price than larger company securities, especially over the short term. Mid-size companies may be more susceptible to particular economic events or competitive factors than are larger, more broadly diversified companies. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. There can be no assurance that the Fund’s multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. Performance of the Fund may vary significantly from the performance of an index, as a result of transactions costs, expenses and other factors. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. The LibertyQ U.S. Mid Cap Equity Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell (Russell) based on the Russell Midcap Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell Midcap Index is market capitalization weighted and measures performance of the smallest companies in the Russell 1000 Index, which represents a modest amount of the Russell 1000 Index’s total market capitalization.

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



franklintempleton.com	Annual Report	13

FRANKLIN LIBERTYQ U.S. MID CAP EQUITY ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	799.60	$	1.35	$	1023.50	$	1.52		0.30	%

2. Reflects expenses after fee waivers and expense reimbursements.



14	Annual Report	franklintempleton.com

Franklin LibertyQ U.S. Small Cap Equity ETF

This annual report for Franklin LibertyQ U.S. Small Cap Equity ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Small Cap Equity Index (the Underlying Index).¹Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 2000^® Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 2000^® Index that have favorable exposure to four investment style factors: quality, value, momentum and low volatility.

Performance Overview

For the 12-month period, the Fund posted cumulative total returns of -25.33% based on market price and -24.83% based on net asset value (NAV). In comparison, the LibertyQ U.S. Small Cap Equity Index posted a -24.65% total return for the same period, while the Russell 2000^® Index posted a -23.99% total return.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 17.


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Industrials		22.6%
Consumer Discretionary		18.5%
Health Care		12.4%
Information Technology		12.3%
Financials		8.0%
Consumer Staples		7.6%
Utilities		7.4%
Real Estate		6.2%
Communication Services		2.7%
Materials		1.6%

Investment Strategy

The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Small Cap Equity Index. The investment manager seeks to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. The Fund’s intention is to replicate the component securities of the Underlying Index as closely as possible. However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a “representative sampling” strategy whereby the Fund would invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. The Fund’s portfolio is reconstituted semiannually following the semiannual reconstitution of the Underlying Index.

1. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company. The LibertyQ U.S. Small Cap Equity Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell (Russell). It is based on the Russell 2000^® Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 2000^® Index is market capitalization weighted and measures performance of the approximately 2,000 smallest companies in the Russell 3000^® Index, which represent a small amount of the total market capitalization of the Russell 3000^® Index.

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 35.



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FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

Manager’s Discussion

The Fund’s research-based selection process focuses on four investment factors: quality, value, momentum and low volatility. Of the four target-style factors, low volatility significantly benefited the Fund’s relative performance for the reporting period, while quality and value were marginal contributors. In contrast, the momentum factor significantly detracted from the Fund’s relative return.

Thank you for your participation in Franklin LibertyQ U.S. Small Cap Equity ETF. We look forward to serving your future investment needs.

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



16	Annual Report	franklintempleton.com


Top 10 Holdings

3/31/20

Company *Sector/Industry*	% of Total Net Assets
Amedisys Inc. Health Care		1.6%
Haemonetics Corp. Health Care		1.1%
Exponent Inc. Industrials		1.1%
Trex Co. Inc. Industrials		1.1%
Generac Holdings Inc. Industrials		1.1%
Deckers Outdoor Corp. Consumer Discretionary		1.0%
MSA Safety Inc. Industrials		1.0%
J2 Global Inc. Information Technology		1.0%
Boston Beer Co. Inc., A Consumer Staples		1.0%
First Industrial Realty Trust Inc. Real Estate		0.9%

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

Performance Summary as of March 31, 2020

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (4/28/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹



	Cumulative Total Return²				Average Annual Total Return²
	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴
1-Year		-24.83%		-25.33%		-24.83%		-25.33%
Since Inception (4/26/17)		-16.04%		-16.53%		-5.79%		-5.98%

See page 19 for Performance Summary footnotes.



franklintempleton.com	Annual Report	17

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

4/26/17–3/31/20

LOGO

See page 19 for Performance Summary footnotes.



18	Annual Report	franklintempleton.com

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment

Income

$0.416619

Total Annual Operating Expenses⁶

0.35%

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. The LibertyQ U.S. Small Cap Equity Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell (Russell) based on the Russell 2000 Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. Russell 2000 Index is market capitalization weighted and measures performance of the approximately 2,000 smallest companies in the Russell 3000 Index, which represent a small amount of the total market capitalization of the Russell 3000 Index.

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



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTYQ U.S. SMALL CAP EQUITY ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	743.70	$	1.48	$	1023.30	$	1.72		0.34	%

2. Reflects expenses after fee waivers and expense reimbursements.



20	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Equity ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	31.41		$	28.51		$	25.44


Income from investment operations^b:

Net investment income^c		0.76			0.66			0.53

Net realized and unrealized gains (losses)		(3.89	)		2.71			2.98


Total from investment operations		(3.13	)		3.37			3.51


Less distributions from net investment income		(0.67	)		(0.47	)		(0.44	)


Net asset value, end of year	$	27.61		$	31.41		$	28.51


Total return^d		(10.27)%			11.97%			13.84%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.18%			0.25%			0.32%	^f

Expenses net of waiver and payments by affiliates		0.18%			0.25%			0.25%	^f

Net investment income		2.32%			2.20%			2.10%

Supplemental data

Net assets, end of year (000’s)		$1,311,583			$1,008,255			$108,326

Portfolio turnover rate^g		19.44%	^h		18.04%			20.80%

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate includes portfolio transaction that are executed as result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creation for the year end March 31, 2020 was as follows: 19.44%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	21

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin LibertyQ U.S. Equity ETF



		Shares		Value
	Common Stocks 99.5%
	Communication Services 4.6%
a	AMC Networks Inc., A		12,350	$	300,229
	AT&T Inc.		433,200		12,627,780
	Cable One Inc.		675		1,109,707
	Cinemark Holdings Inc.		20,809		212,044
	Comcast Corp., A		367,650		12,639,807
a	Facebook Inc., A		80,750		13,469,100
a,b	Match Group Inc.		14,250		941,070
	Omnicom Group Inc.		70,300		3,859,470
	The Interpublic Group of Cos. Inc.		88,350		1,430,386
	Verizon Communications Inc.		268,850		14,445,310

					61,034,903

	Consumer Discretionary 15.2%
a	AutoZone Inc.		6,164		5,214,744
	Best Buy Co. Inc.		83,600		4,765,200
a	Booking Holdings Inc.		3,418		4,598,304
a	Burlington Stores Inc.		5,700		903,222
a	Capri Holdings Ltd.		50,350		543,277
	Carnival Corp.		117,800		1,551,426
	Carter’s Inc.		15,200		999,096
	Choice Hotels International Inc.		11,400		698,250
	D.R. Horton Inc.		28,500		969,000
	Darden Restaurants Inc.		45,600		2,483,376
	Dick’s Sporting Goods Inc.		26,600		565,516
	Dollar General Corp.		73,150		11,046,381
	Domino’s Pizza Inc.		14,250		4,617,998
	Foot Locker Inc.		46,550		1,026,428
	Garmin Ltd.		46,550		3,489,388
	General Motors Co.		201,309		4,183,201
	Gentex Corp.		91,200		2,020,992
	Genuine Parts Co.		47,500		3,198,175
	H&R Block Inc.		78,850		1,110,208
	Hanesbrands Inc.		55,100		433,637
	Hasbro Inc.		37,909		2,712,389
	Kohl’s Corp.		61,750		900,933
	L Brands Inc.		83,600		966,416
	Las Vegas Sands Corp.		94,050		3,994,304
	Lear Corp.		20,809		1,690,731
	Leggett & Platt Inc.		41,800		1,115,224
a	Lululemon Athletica Inc.		38,000		7,202,900
b	Macy’s Inc.		105,450		517,760
	McDonald’s Corp.		83,600		13,823,260
	NIKE Inc., B		172,900		14,305,746
	Nordstrom Inc.		39,900		612,066
a	NVR Inc.		995		2,556,264
a	O’Reilly Automotive Inc.		26,600		8,007,930
	Penske Automotive Group Inc.		8,550		239,400
	Pool Corp.		12,350		2,430,110
	PulteGroup Inc.		42,750		954,180
	Ross Stores Inc.		139,650		12,145,360
	Six Flags Entertainment Corp.		18,050		226,347
	Starbucks Corp.		109,250		7,182,095
	Tapestry Inc.		100,700		1,304,065
	Target Corp.		129,200		12,011,724
	The Gap Inc.		89,300		628,672
	The Home Depot Inc.		73,150		13,657,836
	The TJX Cos. Inc.		265,050		12,672,040
	Tractor Supply Co.		41,800		3,534,190



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Discretionary (continued)
a	Ulta Beauty Inc.		19,950	$	3,505,215
a	Urban Outfitters Inc.		25,650		365,256
	VF Corp.		103,550		5,599,984
	Whirlpool Corp.		5,700		489,060
	Williams-Sonoma Inc.		30,400		1,292,608
	Wyndham Destinations Inc.		19,950		432,915
	Yum! Brands Inc.		120,650		8,268,144

					199,762,943

	Consumer Staples 16.6%
	Altria Group Inc.		325,850		12,600,619
	Brown-Forman Corp., A		17,100		878,598
	Brown-Forman Corp., B		15,200		843,752
	Casey’s General Stores Inc.		10,450		1,384,521
	Church & Dwight Co. Inc.		79,800		5,121,564
	Clorox Co.		49,400		8,558,550
	Colgate-Palmolive Co.		222,300		14,751,828
	Costco Wholesale Corp.		54,150		15,439,789
	Estee Lauder Companies Inc., A		76,000		12,109,840
	Flowers Foods Inc.		58,900		1,208,628
	General Mills Inc.		199,500		10,527,615
	Hormel Foods Corp.		96,809		4,515,172
	Ingredion Inc.		19,950		1,506,225
	Kellogg Co.		47,500		2,849,525
	Kimberly-Clark Corp.		77,900		9,961,073
a	Monster Beverage Corp.		101,650		5,718,829
	Nu Skin Enterprises Inc., A		16,150		352,878
	PepsiCo Inc.		119,609		14,365,041
	Philip Morris International Inc.		195,700		14,278,272
a	Sprouts Farmers Market Inc.		27,550		512,155
	Sysco Corp.		161,500		7,369,245
	The Coca-Cola Co.		303,050		13,409,962
	The Hershey Co.		57,950		7,678,375
	The J. M. Smucker Co.		25,650		2,847,150
	The Kroger Co.		164,350		4,950,222
	The Procter & Gamble Co.		133,000		14,630,000
	Tyson Foods Inc.		93,100		5,387,697
	Walgreens Boots Alliance Inc.		192,850		8,822,887
	Walmart Inc.		135,850		15,435,277

					218,015,289

	Energy 2.2%
	Cabot Oil & Gas Corp., A		66,500		1,143,135
	Cimarex Energy Co.		19,000		319,770
	ConocoPhillips		167,200		5,149,760
	Exxon Mobil Corp.		237,500		9,017,875
	HollyFrontier Corp.		22,800		558,828
	ONEOK Inc.		34,200		745,902
	Phillips 66		110,200		5,912,230
	Valero Energy Corp.		127,300		5,774,328

					28,621,828

	Financials 2.6%
	American National Insurance Co.		2,850		234,783
	Assured Guaranty Ltd.		19,950		514,511
	FactSet Research Systems Inc.		12,350		3,219,398
	Fidelity National Financial Inc.		21,850		543,628
	Invesco Ltd.		75,050		681,454



franklintempleton.com	Annual Report	23

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Financials (continued)
	Lazard Ltd., A		38,000	$	895,280
	MarketAxess Holdings Inc.		12,350		4,107,239
	MFA Financial Inc.		37,050		57,428
	Moody’s Corp.		26,509		5,606,653
	Morningstar Inc.		5,700		662,625
	MSCI Inc.		26,600		7,686,336
	RenaissanceRe Holdings Ltd.		6,650		992,978
	S&P Global Inc.		22,800		5,587,140
	Santander Consumer USA Holdings Inc.		34,200		475,722
	SEI Investments Co.		32,300		1,496,782
	T. Rowe Price Group Inc.		19,000		1,855,350

					34,617,307

	Health Care 11.8%
	AbbVie Inc.		184,300		14,041,817
	Amgen Inc.		69,350		14,059,325
a	Biogen Inc.		54,150		17,131,977
	Bristol-Myers Squibb Co.		284,050		15,832,947
	Cerner Corp.		83,600		5,265,964
	Chemed Corp.		3,800		1,646,160
a	Exelixis Inc.		80,750		1,390,515
	Gilead Sciences Inc.		241,300		18,039,588
	HCA Healthcare Inc.		58,900		5,292,165
a	IDEXX Laboratories Inc.		7,600		1,841,024
	Johnson & Johnson		117,800		15,447,114
	Merck & Co. Inc.		186,200		14,326,228
a	Mettler-Toledo International Inc.		7,960		5,496,460
	Pfizer Inc.		420,850		13,736,544
a	Premier Inc., A		6,650		217,588
a	Regeneron Pharmaceuticals Inc.		6,650		3,247,129
	ResMed Inc.		43,700		6,436,573
	Universal Health Services Inc., B		15,200		1,506,016

					154,955,134

	Industrials 13.2%
	3M Co.		95,859		13,085,712
	Alaska Air Group Inc.		40,850		1,163,000
	Allegion PLC		7,600		699,352
	Allison Transmission Holdings Inc.		23,750		774,488
	C.H. Robinson Worldwide Inc.		48,450		3,207,390
	Cintas Corp.		26,509		4,591,889
a	Copart Inc.		65,550		4,491,486
	Cummins Inc.		49,400		6,684,808
	Delta Air Lines Inc.		185,250		5,285,182
	Emerson Electric Co.		194,750		9,279,837
	Expeditors International of Washington Inc.		55,100		3,676,272
	Fastenal Co.		201,400		6,293,750
	Graco Inc.		52,250		2,546,143
	GrafTech International Ltd.		8,550		69,426
	Honeywell International Inc.		90,250		12,074,547
	Huntington Ingalls Industries Inc.		13,300		2,423,393
a	IAA Inc.		12,350		370,006
	Illinois Tool Works Inc.		52,159		7,412,837
	J.B. Hunt Transport Services Inc.		29,450		2,716,173
	KAR Auction Services Inc.		10,450		125,400
	Landstar System Inc.		12,350		1,183,871
	Lennox International Inc.		5,700		1,036,203
	Lockheed Martin Corp.		41,800		14,168,110



24	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Industrials (continued)
	Masco Corp.		24,609	$	850,733
	MSC Industrial Direct Co. Inc., A		13,300		731,101
	Northrop Grumman Corp.		13,300		4,023,915
	Old Dominion Freight Line Inc.		8,550		1,122,273
	PACCAR Inc.		54,150		3,310,189
	Raytheon Co.		74,959		9,830,873
	Robert Half International Inc.		45,600		1,721,400
	Rockwell Automation Inc.		39,900		6,021,309
	Rollins Inc.		50,350		1,819,649
	Snap-on Inc.		11,400		1,240,548
	Southwest Airlines Co.		161,500		5,751,015
	Toro Co.		38,950		2,535,256
	Union Pacific Corp.		92,150		12,996,836
	United Parcel Service Inc., B		117,709		10,996,375
	W.W. Grainger Inc.		16,150		4,013,275
a	WABCO Holdings Inc.		9,500		1,282,975
	Watsco Inc.		9,500		1,501,285

					173,108,282

	Information Technology 19.6%
	Accenture PLC, A		80,750		13,183,245
	Amdocs Ltd.		46,550		2,558,854
	Apple Inc.		60,800		15,460,832
	Applied Materials Inc.		280,250		12,841,055
a	Aspen Technology Inc.		14,250		1,354,748
	Automatic Data Processing Inc.		95,000		12,984,600
	Booz Allen Hamilton Holding Corp.		20,900		1,434,576
	Broadridge Financial Solutions Inc.		39,900		3,783,717
a	Cadence Design Systems Inc.		44,559		2,942,676
	Cisco Systems Inc.		357,200		14,041,532
	Citrix Systems Inc.		20,900		2,958,395
	Cognizant Technology Solutions Corp., A		128,250		5,959,777
a	F5 Networks Inc.		21,850		2,329,866
	HP Inc.		545,300		9,466,408
	Intel Corp.		279,300		15,115,716
	International Business Machines Corp.		120,650		13,383,704
	Intuit Inc.		62,700		14,421,000
	Jack Henry & Associates Inc.		25,650		3,981,906
	KLA Corp.		49,400		7,100,756
	Lam Research Corp.		44,650		10,716,000
	Mastercard Inc., A		55,959		13,517,456
	Maxim Integrated Products Inc.		87,400		4,248,514
	Microsoft Corp.		107,350		16,930,168
	Motorola Solutions Inc.		49,400		6,566,248
	NetApp Inc.		73,150		3,049,624
	Paychex Inc.		117,800		7,411,976
	QUALCOMM Inc.		110,200		7,455,030
	Skyworks Solutions Inc.		65,550		5,858,859
	Texas Instruments Inc.		134,900		13,480,557
	Ubiquiti Inc.		3,800		538,004
a	VeriSign Inc.		33,250		5,987,992
	Xilinx Inc.		82,650		6,441,741

					257,505,532

	Materials 1.9%
	Air Products and Chemicals Inc.		35,150		7,016,291
	Celanese Corp.		19,000		1,394,410
	Eastman Chemical Co.		30,400		1,416,032



franklintempleton.com	Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF (continued)



	Shares		Value
Common Stocks (continued)
Materials (continued)
LyondellBasell Industries NV, A		117,800	$	5,846,414
NewMarket Corp.		2,850		1,091,180
Nucor Corp.		46,550		1,676,731
Packaging Corp. of America		24,700		2,144,701
Reliance Steel & Aluminum Co.		5,700		499,263
Royal Gold Inc.		5,700		499,947
Sonoco Products Co.		32,300		1,497,105
Steel Dynamics Inc.		43,700		984,998
Valvoline Inc.		28,500		373,065

				24,440,137

Real Estate 3.9%
American Tower Corp.		67,450		14,687,237
EPR Properties		23,750		575,225
Gaming and Leisure Properties Inc.		57,000		1,579,470
Kimco Realty Corp.		113,050		1,093,194
National Retail Properties Inc.		57,950		1,865,410
OMEGA Healthcare Investors Inc.		71,250		1,890,975
Public Storage		57,000		11,320,770
Realty Income Corp.		104,500		5,210,370
Simon Property Group Inc.		80,750		4,429,945
Spirit Realty Capital Inc.		33,250		869,488
STORE Capital Corp.		61,750		1,118,910
Ventas Inc.		68,400		1,833,120
VEREIT Inc.		327,750		1,602,697
WP Carey Inc.		42,659		2,477,635

				50,554,446

Utilities 7.9%
Alliant Energy Corp.		69,350		3,348,912
Ameren Corp.		48,450		3,528,613
American Electric Power Co. Inc.		40,850		3,267,183
Atmos Energy Corp.		34,200		3,393,666
Consolidated Edison Inc.		95,950		7,484,100
Dominion Energy Inc.		122,550		8,846,884
DTE Energy Co.		58,900		5,593,733
Evergy Inc.		46,550		2,562,578
Eversource Energy		85,500		6,686,955
Exelon Corp.		284,050		10,455,880
Hawaiian Electric Industries Inc.		33,250		1,431,413
NextEra Energy Inc.		69,350		16,686,997
OGE Energy Corp.		59,850		1,839,191
PPL Corp.		150,100		3,704,468
Public Service Enterprise Group Inc.		171,000		7,679,610
Sempra Energy		22,800		2,576,172
The Southern Co.		215,650		11,675,291
Xcel Energy Inc.		43,700		2,635,110

				103,396,756

Total Investments before Short Term Investments (Cost $1,523,639,463)				1,306,012,557



26	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Equity ETF (continued)



		Shares		Value
	Short Term Investments (Cost $911,900) 0.1%
	Investments from Cash Collateral Received for Loaned Securities 0.1%
	Money Market Funds 0.1%
c,d	Institutional Fiduciary Trust Portfolio, 0.32%		911,900	$	911,900

	Total Investments (Cost $1,524,551,363) 99.6%				1,306,924,457
	Other Assets, less Liabilities 0.4%				4,658,868

	Net Assets 100.0%			$	1,311,583,325

^aNon-income producing.

^bA portion or all of the security is on loan at March 31, 2020. See Note 1(c).

^cThe rate shown is the annualized seven-day effective yield at period end.

^dSee Note 3(c) regarding investments in affiliated management investment companies.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(b).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Index Contracts

S&P 500 E-Mini

Long

3,983,035

6/19/20

(111,042

)

*As of period end.

See note 7 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	27

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Mid Cap Equity ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	30.32		$	27.70		$	25.51


Income from investment operations^b:

Net investment income^c		0.50			0.47			0.38

Net realized and unrealized gains (losses)		(5.41	)		2.53			2.18


Total from investment operations		(4.91	)		3.00			2.56


Less distributions from net investment income		(0.47	)		(0.38	)		(0.37	)


Net asset value, end of year	$	24.94		$	30.32		$	27.70


Total return^d		(16.50)%			10.92%			10.09%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.30%			0.30%			0.99%	^f

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%	^f

Net investment income		1.60%			1.65%			1.58%

Supplemental data

Net assets, end of year (000’s)		$13,718			$10,612			$2,770

Portfolio turnover rate^g		24.20%	^h		23.49%			36.21%

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate includes portfolio transaction that are executed as result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creation for the year end March 31, 2020 was as follows: 24.20%.



28	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin LibertyQ U.S. Mid Cap Equity ETF



		Shares		Value
	Common Stocks 99.7%
	Communication Services 1.4%
a	AMC Networks Inc., A		484	$	11,766
	Cinemark Holdings Inc.		1,078		10,985
	John Wiley & Sons Inc., A		451		16,908
a,b	Match Group Inc.		616		40,681
	Omnicom Group Inc.		2,090		114,741

					195,081

	Consumer Discretionary 19.1%
a	AutoNation Inc.		407		11,420
a	AutoZone Inc.		154		130,284
	Best Buy Co. Inc.		2,255		128,535
	BorgWarner Inc.		2,090		50,933
a	Burlington Stores Inc.		803		127,243
a	Capri Holdings Ltd.		1,518		16,379
	Carter’s Inc.		506		33,259
	Columbia Sportswear Co.		121		8,442
	Dick’s Sporting Goods Inc.		803		17,072
	Dollar General Corp.		1,155		174,417
	Expedia Group Inc.		1,001		56,326
a	Five Below Inc.		363		25,548
	Foot Locker Inc.		1,353		29,834
	Garmin Ltd.		1,331		99,772
	Gentex Corp.		1,771		39,245
	Genuine Parts Co.		1,485		99,985
	H&R Block Inc.		2,156		30,356
	Hanesbrands Inc.		3,751		29,520
	Hasbro Inc.		1,221		87,363
	Kohl’s Corp.		1,958		28,567
	L Brands Inc.		2,673		30,900
a	Lululemon Athletica Inc.		803		152,209
b	Macy’s Inc.		3,993		19,606
	Nordstrom Inc.		1,474		22,611
a	NVR Inc.		33		84,781
a	O’Reilly Automotive Inc.		407		122,527
a	Ollie’s Bargain Outlet Holdings Inc.		341		15,802
	Penske Automotive Group Inc.		363		10,164
	Pool Corp.		528		103,895
	Ralph Lauren Corp.		506		33,816
	Sirius XM Holdings Inc.		5,874		29,018
	Six Flags Entertainment Corp.		770		9,656
a	Skechers USA Inc., A		1,309		31,076
	Tapestry Inc.		3,190		41,311
a	Tempur Sealy International Inc.		407		17,790
	The Gap Inc.		2,915		20,522
	Tiffany & Co.		1,177		152,421
	Tractor Supply Co.		1,606		135,787
a	Ulta Beauty Inc.		572		100,500
a	Urban Outfitters Inc.		814		11,591
	Whirlpool Corp.		297		25,483
	Williams-Sonoma Inc.		979		41,627
	Wyndham Destinations Inc.,		1,056		22,915
	Yum China Holdings Inc.		3,795		161,781

					2,622,289

	Consumer Staples 9.9%
	Brown-Forman Corp., A		506		25,998
	Brown-Forman Corp., B		2,035		112,963
	Campbell Soup Co.		1,639		75,656



franklintempleton.com	Annual Report	29

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Staples (continued)
	Church & Dwight Co. Inc.		2,255	$	144,726
	Clorox Co.		1,221		211,538
	Flowers Foods Inc.		2,519		51,690
a	Grocery Outlet Holding Corp.		154		5,288
a	Herbalife Ltd.		1,078		31,435
	Kellogg Co.		2,453		147,156
	McCormick & Co. Inc.		1,045		147,564
	Nu Skin Enterprises Inc., A		649		14,181
a	Sprouts Farmers Market Inc.		1,364		25,357
	The Hershey Co.		1,232		163,240
	The Kroger Co.		6,644		200,117

					1,356,909

	Financials 11.7%
	Ally Financial Inc.		3,410		49,206
	American National Insurance Co.		88		7,249
a	Arch Capital Group Ltd.		3,817		108,632
a	Brighthouse Financial Inc.		968		23,397
	Brown & Brown Inc.		2,024		73,309
	Cincinnati Financial Corp.		1,617		122,003
	CNA Financial Corp.		308		9,560
a	Credit Acceptance Corp.		121		30,939
	Discover Financial Services		2,145		76,512
	Evercore Inc.		330		15,200
	FactSet Research Systems Inc.		363		94,627
	First American Financial Corp.		1,056		44,785
	First Republic Bank		1,166		95,938
	Globe Life Inc.		957		68,875
	Janus Henderson Group PLC		1,122		17,189
	Lazard Ltd., A		1,045		24,620
	Legg Mason Inc.		924		45,137
	MarketAxess Holdings Inc.		385		128,039
	Mercury General Corp.		264		10,750
	MSCI Inc.		572		165,285
	Nasdaq Inc.		1,276		121,156
	Navient Corp.		1,881		14,258
	PacWest Bancorp		517		9,265
	Prosperity Bancshares Inc.		737		35,560
	Santander Consumer USA Holdings Inc.		1,243		17,290
	SEI Investments Co.		1,628		75,442
	Synchrony Financial		4,719		75,929
	Umpqua Holdings Corp.		1,694		18,465
	Unum Group		2,156		32,362

					1,610,979

	Health Care 9.0%
a	Acadia Healthcare Co. Inc.		825		15,139
a	Align Technology Inc.		649		112,894
	Cerner Corp.		2,541		160,058
a	Change Healthcare Inc.		253		2,527
	Chemed Corp.		66		28,591
	Encompass Health Corp.		1,111		71,137
a	Exelixis Inc.		1,903		32,770
a	Henry Schein Inc.		1,452		73,355
a	IDEXX Laboratories Inc.		726		175,866
a	Masimo Corp.		429		75,985
a	Mednax Inc.		913		10,627
a	Mettler-Toledo International Inc.		253		174,699



30	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Health Care (continued)
a	Molina Healthcare Inc.		506	$	70,693
a	Premier Inc., A		286		9,358
	Universal Health Services Inc., B		902		89,370
a	Waters Corp.		737		134,171

					1,237,240

	Industrials 19.5%
	Allegion PLC		968		89,075
	Allison Transmission Holdings Inc.		1,100		35,871
b	American Airlines Group Inc.		3,652		44,518
	BWX Technologies Inc.		858		41,793
	C.H. Robinson Worldwide Inc.		1,419		93,938
	Cintas Corp.		704		121,947
	Copa Holdings SA		286		12,953
a	Copart Inc.		858		58,790
	Cummins Inc.		990		133,967
	Donaldson Co. Inc.		1,265		48,867
	Expeditors International of Washington Inc.		1,716		114,491
	Fastenal Co.		5,104		159,500
	Graco Inc.		1,892		92,197
	GrafTech International Ltd.		517		4,198
	Hubbell Inc., B		506		58,058
a	IAA Inc.		1,210		36,252
	IDEX Corp.		539		74,441
	KAR Auction Services Inc.		1,210		14,520
	Landstar System Inc.		352		33,743
	Lennox International Inc.		330		59,991
	Lincoln Electric Holdings Inc.		418		28,842
	ManpowerGroup Inc.		627		33,225
	MSC Industrial Direct Co. Inc., A		473		26,001
	Nordson Corp.		440		59,431
	Old Dominion Freight Line Inc.		1,073		140,776
	Robert Half International Inc.		1,551		58,550
	Rockwell Automation Inc.		924		139,441
	Rollins Inc.		1,749		63,209
	Schneider National Inc., B		528		10,211
	Snap-on Inc.		385		41,896
a	Teledyne Technologies Inc.		242		71,939
	Toro Co.		1,166		75,895
	Trane Technologies PLC		1,386		114,470
a	United Airlines Holdings Inc.		1,958		61,775
a	United Rentals Inc.		572		58,859
	W.W. Grainger Inc.		495		123,007
a	WABCO Holdings Inc.		429		57,936
	Watsco Inc.		385		60,842
	Xylem Inc.		1,738		113,196

					2,668,611

	Information Technology 15.6%
	Amdocs Ltd.		583		32,048
a	Aspen Technology Inc.		660		62,746
	Booz Allen Hamilton Holding Corp.		1,749		120,051
a	CACI International Inc., A		110		23,227
a	Cadence Design Systems Inc.		2,585		170,713
	CDW Corp.		1,342		125,168
	Citrix Systems Inc.		968		137,020
a	F5 Networks Inc.		737		78,586
a	Fair Isaac Corp.		275		84,615



franklintempleton.com	Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Information Technology (continued)
	Genpact Ltd.		1,452	$	42,398
	Juniper Networks Inc.		2,948		56,425
	KLA Corp.		1,111		159,695
	Lam Research Corp.		682		163,680
a	Manhattan Associates Inc.		759		37,813
	National Instruments Corp.		1,408		46,577
	NetApp Inc.		2,684		111,896
	Paychex Inc.		2,101		132,195
	Pegasystems Inc.		297		21,155
a	Synopsys Inc.		1,287		165,753
	Ubiquiti Inc.		110		15,574
a	VeriSign Inc.		660		118,859
	Western Union Co.		4,334		78,576
	Xilinx Inc.		1,958		152,607

					2,137,377

	Materials 2.1%
	Ardagh Group SA		154		1,826
	Avery Dennison Corp.		836		85,163
	NewMarket Corp.		33		12,635
	Reliance Steel & Aluminum Co.		286		25,051
	RPM International Inc.		1,254		74,613
	Sonoco Products Co.		649		30,081
	Steel Dynamics Inc.		1,298		29,257
	The Chemours Co. LLC		1,441		12,782
	The Scotts Miracle-Gro Co., A		187		19,149

					290,557

	Real Estate 7.0%
	Alexandria Real Estate Equities Inc.		1,078		147,751
	Apple Hospitality REIT Inc.		2,288		20,981
	Camden Property Trust		693		54,913
	Coresite Realty Corp.		330		38,247
	EPR Properties		770		18,649
	Equity Lifestyle Properties Inc.		1,562		89,784
	Federal Realty Investment Trust		726		54,167
	Highwoods Properties Inc.		957		33,897
	Host Hotels & Resorts Inc.		6,820		75,293
	Lamar Advertising Co., A		946		48,511
	National Retail Properties Inc.		1,925		61,966
	Realty Income Corp.		2,376		118,467
	Retail Properties of America Inc., A		1,881		9,725
	Service Properties Trust		1,903		10,276
	Ventas Inc.		2,992		80,185
	Welltower Inc.		2,145		98,198

					961,010

	Utilities 4.4%
	Ameren Corp.		2,123		154,618
	Consolidated Edison Inc.		2,090		163,020
	Entergy Corp.		1,562		146,781
	PPL Corp.		5,335		131,668

					596,087

	Total Investments before Short Term Investments (Cost $16,506,650)				13,676,140



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Mid Cap Equity ETF (continued)



		Shares		Value
	Short Term Investments (Cost $75,900) 0.5%
	Investments from Cash Collateral Received for Loaned Securities 0.5%
	Money Market Funds 0.5%
c,d	Institutional Fiduciary Trust Portfolio, 0.32%		75,900	$	75,900

	Total Investments (Cost $16,582,550) 100.2%				13,752,040
	Other Assets, less Liabilities (0.2)%				(33,844	)

	Net Assets 100.0%			$	13,718,196

^aNon-income producing.

^bA portion or all of the security is on loan at March 31, 2020. See Note 1(c).

^cSee Note 3(c) regarding investments in affiliated management investment companies.

^dThe rate shown is the annualized seven-day effective yield at period end.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin LibertyQ U.S. Small Cap Equity ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	27.66		$	26.66		$	25.36


Income from investment operations^b:

Net investment income^c		0.39			0.47			0.33

Net realized and unrealized gains (losses)		(7.15	)		0.87			1.27


Total from investment operations		(6.76	)		1.34			1.60


Less distributions from net investment income		(0.42	)		(0.34	)		(0.30	)


Net asset value, end of year	$	20.48		$	27.66		$	26.66


Total return^d		(24.83)%			5.05%			6.34%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.35%			0.35%			1.15%	^f

Expenses net of waiver and payments by affiliates		0.35%			0.35%			0.35%	^f

Net investment income		1.41%			1.69%			1.40%

Supplemental data

Net assets, end of year (000’s)		$13,310			$17,979			$2,666

Portfolio turnover rate^g		23.83%	^h		22.17%			23.99%

^aFor the period April 26, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fEffective December 1, 2017, the Fund replaced the prior fee structure with a unified management fee. See Note 3(a).

^gPortfolio turnover rate includes portfolio transaction that are executed as result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creation for the year end March 31, 2020 was as follows: 23.83%.



34	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin LibertyQ U.S. Small Cap Equity ETF



		Shares		Value
	Common Stocks 99.7%
	Communication Services 2.7%
a	AMC Entertainment Holdings Inc., A		1,638	$	5,176
	Cogent Communications Holdings Inc.		1,365		111,889
b	Cumulus Media Inc., A		325		1,762
	Gannett Co. Inc.		4,004		5,926
b	Lee Enterprises Inc.		1,547		1,521
b	Liberty Latin America Ltd.		3,237		33,212
b	Liberty Latin America Ltd., A		1,287		13,539
	Marcus Corp.		650		8,008
	Meredith Corp.		1,261		15,409
	National CineMedia Inc.		2,171		7,077
	Scholastic Corp.		1,014		25,847
	Spok Holdings Inc.		533		5,698
b	TechTarget Inc.		351		7,234
	TEGNA Inc.		4,485		48,707
b	The Meet Group Inc.		1,625		9,539
b	Travelzoo		156		613
	Tribune Publishing Co.		260		2,109
b	TrueCar Inc.		2,964		7,173
b	WideOpenWest Inc.		819		3,898
b	Yelp Inc.		2,444		44,065

					358,402

	Consumer Discretionary 18.5%
b	1-800-FLOWERS.Com Inc.		897		11,867
	Aaron’s Inc.		1,924		43,829
	Abercrombie & Fitch Co., A		2,704		24,579
	Acushnet Holdings Corp.		1,196		30,761
b	America’s Car-Mart Inc.		221		12,453
	American Eagle Outfitters Inc.		6,045		48,058
b	American Public Education Inc.		455		10,888
b	Asbury Automotive Group Inc.		793		43,797
b	At Home Group Inc.		1,287		2,600
b	Barnes & Noble Education Inc.		1,183		1,609
	Bassett Furniture Industries Inc.		377		2,055
a	Bed Bath & Beyond Inc.		4,225		17,787
	Big Lots Inc.		1,729		24,586
	BJ’s Restaurants Inc.		650		9,029
	Bloomin’ Brands Inc.		3,822		27,289
	Brinker International Inc.		1,092		13,115
a	Buckle Inc.		1,170		16,041
	Caleres Inc.		1,482		7,706
	Callaway Golf Co.		2,626		26,838
b	Carrols Restaurant Group Inc.		936		1,704
	Chico’s FAS Inc.		4,420		5,702
b	Chuy’s Holdings Inc.		689		6,938
	Citi Trends Inc.		455		4,050
	Collectors Universe Inc.		260		4,074
	Core-Mark Holding Co. Inc.		1,053		30,084
	Cracker Barrel Old Country Store Inc.		949		78,976
b	Crocs Inc.		2,379		40,419
	Dana Inc.		4,459		34,825
a	Dave & Buster’s Entertainment Inc.		1,326		17,344
b	Deckers Outdoor Corp.		1,027		137,618
b	Del Taco Restaurants Inc.		754		2,586
b	Denny’s Corp.		2,132		16,374
	Designer Brands Inc., A		2,340		11,653
	Dillard’s Inc., A		351		12,969
b	Dorman Products Inc.		910		50,296



franklintempleton.com	Annual Report	35

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Discretionary (continued)
b	Duluth Holdings Inc.		377	$	1,512
	Escalade Inc.		351		2,088
	Ethan Allen Interiors Inc.		1,014		10,363
b	Fiesta Restaurant Group Inc.		910		3,667
b	Fossil Group Inc.		1,105		3,635
b	Genesco Inc.		663		8,844
	Group 1 Automotive Inc.		689		30,495
	Guess? Inc.		1,924		13,026
	Hamilton Beach Brands Holding Co., A		234		2,225
	Haverty Furniture Cos. Inc.		793		9,429
b	Helen of Troy Ltd.		793		114,216
b	Hibbett Sports Inc.		611		6,681
	Hooker Furniture Corp.		338		5,276
b	Installed Building Products Inc.		338		13,476
a,b	iRobot Corp.		819		33,497
a,b	J. Jill Inc.		663		366
	Jack in the Box Inc.		884		30,984
	Johnson Outdoors Inc., A		169		10,596
b	K12 Inc.		1,066		20,105
b	Kontoor Brands Inc.		1,118		21,432
	La-Z-Boy Inc.		1,560		32,058
	LCI Industries		767		51,259
b	LGI Homes Inc.		598		27,000
	Lifetime Brands Inc.		455		2,571
b	Lindblad Expeditions Holdings Inc.		468		1,952
	Lithia Motors Inc.		806		65,923
	M.D.C. Holdings Inc.		1,157		26,842
b	M/I Homes Inc.		403		6,662
	Marine Products Corp.		273		2,206
b	Modine Manufacturing Co.		1,131		3,676
b	Monarch Casino & Resort Inc.		299		8,393
	Monro Inc.		1,066		46,702
	Movado Group Inc.		611		7,222
b	Murphy USA Inc.		429		36,190
	Office Depot Inc.		18,603		30,509
	Oxford Industries Inc.		689		24,983
	Papa John’s International Inc.		689		36,772
b	Perdoceo Education Corp.		2,405		25,950
	PetMed Express Inc.		754		21,700
	Rent-A-Center Inc.		1,885		26,654
	Rocky Brands Inc.		208		4,025
b	RTW RetailWinds Inc.		767		161
	Ruth’s Hospitality Group Inc.		962		6,426
b	Sally Beauty Holdings Inc.		4,134		33,403
	Shoe Carnival Inc.		390		8,100
	Shutterstock Inc.		598		19,232
	Signet Jewelers Ltd.		1,664		10,733
b	Sleep Number Corp.		1,027		19,677
	Sonic Automotive Inc.		923		12,257
b	Sonos Inc.		1,651		14,001
b	Sportsman’s Warehouse Holdings Inc.		1,612		9,930
b	Stamps.com Inc.		559		72,715
	Standard Motor Products Inc.		702		29,182
	Steven Madden Ltd.		3,055		70,968
a,b	Stitch Fix Inc., A		1,157		14,694
	Strategic Education Inc.		663		92,661
	Sturm Ruger & Co. Inc.		520		26,473
	Superior Group of Cos. Inc.		351		2,970



36	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Consumer Discretionary (continued)
a	Tailored Brands Inc.		1,937	$	3,370
	Tenneco Inc., A		1,482		5,335
	Texas Roadhouse Inc., A		2,717		112,212
	The Cato Corp., A		845		9,016
	The Cheesecake Factory Inc.		1,742		29,753
a	The Children’s Place Inc.		585		11,443
b	The Container Store Group Inc.		637		1,503
b	The Lovesac Co.		182		1,061
b	The Michaels Cos. Inc.		2,262		3,664
b	The RealReal Inc.		312		2,187
	Tilly’s Inc., A		871		3,597
	Tupperware Brands Corp.		1,885		3,054
	Twin River Worldwide Holdings Inc.		507		6,596
b	Vera Bradley Inc.		715		2,946
	Weyco Group Inc.		208		4,195
	Wingstop Inc.		832		66,310
	Winmark Corp.		78		9,939
	Wolverine World Wide Inc.		3,003		45,646
b	WW International Inc.		728		12,311
b	YETI Holdings Inc.		585		11,419
b	Zumiez Inc.		676		11,708

					2,462,509

	Consumer Staples 7.6%
	B&G Foods Inc., A		1,872		33,864
b	BellRing Brands Inc., A		572		9,753
b	Boston Beer Inc., A		351		129,014
b	Bridgford Foods Corp.		52		1,200
b	Central Garden & Pet Co.		325		8,937
b	Central Garden & Pet Co., A		1,209		30,914
	Coca-Cola Consolidated Inc.		143		29,820
b	Freshpet Inc.		780		49,819
	Ingles Markets Inc., A		520		18,803
	Inter Parfums Inc.		585		27,115
	J & J Snack Foods Corp.		546		66,066
	John B. Sanfilippo & Son Inc.		299		26,731
	Lancaster Colony Corp.		611		88,375
b	Lifevantage Corp.		351		3,615
	Medifast Inc.		416		26,000
a,b	National Beverage Corp.		403		17,188
	Natural Grocers by Vitamin Cottage Inc.		299		2,544
b	Natures Sunshine Products Inc.		299		2,431
b	Performance Food Group Co.		3,458		85,482
	PriceSmart Inc.		845		44,405
	Sanderson Farms Inc.		559		68,936
	SpartanNash Co.		923		13,217
b	The Chefs’ Warehouse Inc.		806		8,116
	Tootsie Roll Industries Inc.		455		16,373
	Turning Point Brands Inc.		247		5,214
	Universal Corp.		819		36,208
	Vector Group Ltd.		3,536		33,309
	Village Super Market Inc., A		351		8,628
	WD-40 Co.		533		107,053
	Weis Markets Inc.		377		15,706

					1,014,836

	Energy 0.3%
	Arch Coal Inc.		364		10,519



franklintempleton.com	Annual Report	37

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Energy (continued)
	Berry Corp.		910	$	2,193
b	CONSOL Energy Inc.		845		3,118
	CVR Energy Inc.		663		10,959
	Evolution Petroleum Corp.		390		1,018
	Falcon Minerals Corp., A		624		1,342
	Liberty Oilfield Services Inc., A		1,300		3,497
b	Penn Virginia Corp.		286		884
b	SilverBow Resources Inc.		208		514
	Solaris Oilfield Infrastructure Inc.		455		2,389

					36,433

	Financials 8.0%
	1st Source Corp.		442		14,334
	Alerus Financial Corp.		39		644
b	Amerant Bancorp Inc.		286		4,402
	Amerisafe Inc.		468		30,172
	Ames National Corp.		312		6,380
	Apollo Commercial Finance Inc.		3,978		29,517
	Arrow Financial Corp.		325		9,058
	Banco Latinoamericano de Comercio Exterior SA		858		8,846
	Bank7 Corp.		91		723
	Bankwell Financial Group Inc.		143		2,182
	Bar Harbor Bankshares		338		5,841
	Cadence Bancorp		3,081		20,181
	Capstead Mortgage Corp.		2,665		11,193
	Central Pacific Financial Corp.		611		9,715
	Citizens & Northern Corp.		377		7,540
a,b	Citizens Inc., A		1,430		9,324
	Codorus Valley Bancorp Inc.		221		3,558
	Cohen & Steers Inc.		754		34,269
	Colony Bankcorp Inc.		182		2,275
	Donegal Group Inc.		351		5,335
	Dynex Capital Inc.		689		7,193
	ESSA Bancorp Inc.		234		3,194
	Essent Group Ltd.		3,445		90,741
b	EZCORP Inc., A		1,560		6,505
	Federated Hermes Inc., B		3,107		59,188
	Financial Institutions Inc.		507		9,197
	First Bancorp Inc.		312		6,864
	First Bancorp Puerto Rico		4,602		24,483
	First Citizens Bancorp		416		6,223
	Franklin Financial Services Corp.		91		2,498
b	Genworth Financial Inc., A		14,170		47,044
	Greene County Bancorp Inc.		91		2,126
	Hawthorn Bancshares Inc.		130		2,386
	Heritage Financial Corp.		1,040		20,800
	Horace Mann Educators Corp.		1,417		51,848
	International Bancshares Corp.		1,365		36,691
	Invesco Mortgage Capital		3,809		12,989
	James River Group Holdings Ltd.		871		31,565
	LCNB Corp.		377		4,750
	Midwestone Financial Group Inc.		403		8,439
b	Mr Cooper Group Inc.		1,820		13,341
	National Western Life Group Inc., A		91		15,652
	Nelnet Inc., A		585		26,565
	Northfield Bancorp Inc.		1,404		15,711
	Northwest Bancshares Inc.		3,016		34,895
	Norwood Financial Corp.		156		4,165



38	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Financials (continued)
b	On Deck Capital Inc.		1,690	$	2,603
b	Palomar Holdings Inc.		247		14,366
	Penns Woods Bancorp Inc.		234		5,686
	Peoples Financial Services Corp.		169		6,716
	Piper Sandler Cos.		312		15,778
	Premier Financial Bancorp Inc.		429		5,320
	Protective Insurance Corp., B		286		3,932
	Provident Financial Services Inc.		1,963		25,244
	Pzena Investment Management Inc., A		559		2,493
	Red River Bancshares Inc.		78		2,903
b	Regional Management Corp.		364		4,972
	Silvercrest Asset Management Group Inc., A		325		3,075
	Southern Missouri Bancorp Inc.		208		5,048
	Stewart Information Services Corp.		650		17,335
	Territorial Bancorp Inc.		286		7,021
	The Bank of Princeton		78		1,814
	Tiptree Inc., A		533		2,782
	Tompkins Financial Corp.		468		33,602
	TrustCo Bank Corp. NY		3,042		16,457
	United Bankshares Inc.		2,197		50,707
	United Fire Group Inc.		663		21,620
	United Security Bancshares		299		1,914
	Universal Insurance Holdings Inc.		884		15,841
	Value Line Inc.		39		1,262
	Waddell & Reed Financial Inc., A		1,794		20,416
b	Watford Holdings Ltd.		442		6,475
	West Bancorp		481		7,864
	Westwood Holdings Group Inc.		286		5,237

					1,069,025

	Health Care 12.4%
b	Addus Homecare Corp.		364		24,606
b	Amedisys Inc.		1,157		212,356
b	AMN Healthcare Services Inc.		1,443		83,420
b	Anika Therapeutics Inc.		195		5,637
b	AtriCure Inc.		1,157		38,864
	Atrion Corp.		52		33,800
b	Biospecifics Technologies Corp.		182		10,296
b	Cardiovascular Systems Inc.		1,209		42,569
b	Community Health Systems Inc.		2,639		8,814
	CONMED Corp.		871		49,882
b	Corcept Therapeutics Inc.		3,289		39,106
b	CorVel Corp.		273		14,881
b	Cross Country Healthcare Inc.		988		6,659
b	Eagle Pharmaceuticals Inc.		260		11,960
b	Enanta Pharmaceuticals Inc.		559		28,749
b	FibroGen Inc.		1,118		38,851
b	Glaukos Corp.		897		27,681
b	Globus Medical Inc., A		2,782		118,319
b	Haemonetics Corp.		1,469		146,401
b	Hanger Inc.		897		13,975
b	Inogen Inc.		520		26,863
	Invacare Corp.		481		3,574
b	iRadimed Corp.		117		2,498
b	Lantheus Holdings Inc.		806		10,285
	LeMaitre Vascular Inc.		559		13,930
b	LHC Group Inc.		871		122,114
b	Meridian Bioscience Inc.		1,495		12,558



franklintempleton.com	Annual Report	39

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Health Care (continued)
b	Merit Medical Systems Inc.		1,742	$	54,438
	Mesa Laboratories Inc.		78		17,635
b	Misonix Inc.		195		1,837
b	Myriad Genetics Inc.		2,119		30,323
	National Healthcare Corp.		455		32,637
	National Research Corp., A		442		20,102
b	NextGen Healthcare Inc.		1,898		19,815
b	NuVasive Inc.		1,521		77,054
b	Orthofix International Nv		637		17,842
b	OrthoPediatrics Corp.		208		8,245
a,b	Palatin Technologies Inc.		3,419		1,448
	Patterson Cos. Inc.		2,483		37,965
	Phibro Animal Health Corp.		715		17,282
b	Phreesia Inc.		182		3,827
b	Prestige Consumer Healthcare Inc.		1,508		55,313
	Simulations Plus Inc.		390		13,619
b	Supernus Pharmaceuticals Inc.		1,716		30,871
b	Tactile Systems Technology Inc.		624		25,060
b	The Joint Corp.		325		3,526
b	The Pennant Group Inc.		455		6,443
	Utah Medical Products Inc.		117		11,004
^b	Vocera Communications Inc.		923		19,605

					1,654,539

	Industrials 22.6%
	ABM Industries Inc.		2,275		55,419
	Acco Brands Corp.		2,314		11,686
b	Advanced Disposal Services Inc.		2,236		73,341
b	Aegion Corp.		442		7,925
	Alamo Group Inc.		299		26,545
	Allegiant Travel Co.		416		34,029
	Allied Motion Technologies Inc.		221		5,238
	Altra Industrial Motion Corp.		1,651		28,876
	Applied Industrial Technologies Inc.		1,456		66,568
b	Atkore International Group Inc.		715		15,065
b	Axon Enterprise Inc.		1,534		108,561
	BG Staffing Inc.		338		2,528
b	BMC Stock Holdings Inc.		1,677		29,733
	Brady Corp., A		1,755		79,203
b	Builders FirstSource Inc.		2,821		34,501
b	Casella Waste Systems Inc., A		949		37,068
b	Cimpress PLC		702		37,346
	CompX International Inc.		52		790
	Costamare Inc.		754		3,408
b	Covenant Transportation Group Inc., A		416		3,607
	CRA International Inc.		104		3,475
	CSW Industrials Inc.		338		21,919
	Deluxe Corp.		1,638		42,473
	Douglas Dynamics Inc.		663		23,543
	Ennis Inc.		858		16,113
	EnPro Industries Inc.		585		23,154
	Exponent Inc.		2,028		145,834
b	Forrester Research Inc.		377		11,020
	Forward Air Corp.		1,053		53,334
b	Foundation Building Materials Inc.		572		5,886
b	Franklin Covey Co.		325		5,051
	Franklin Electric Co. Inc.		663		31,247
b	FTI Consulting Inc.		910		108,991



40	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Industrials (continued)
b	Generac Holdings Inc.		1,495	$	139,289
b	GMS Inc.		585		9,202
	H&E Equipment Services Inc.		702		10,305
	Hawaiian Holdings Inc.		1,430		14,929
	Healthcare Services Group Inc.		2,197		52,530
	Heartland Express Inc.		1,352		25,107
	Heidrick & Struggles International Inc.		689		15,503
b	Heritage-Crystal Clean Inc.		598		9,712
	Herman Miller Inc.		2,106		46,753
	Hillenbrand Inc.		2,067		39,500
	HNI Corp.		1,560		39,296
	Hurco Cos. Inc.		143		4,161
	Hyster-Yale Materials Handling Inc.		299		11,987
	ICF International Inc.		650		44,655
	Insperity Inc.		1,261		47,035
	Interface Inc.		1,677		12,678
	John Bean Technologies Corp.		715		53,103
	Kadant Inc.		377		28,143
	Kaman Corp., A		871		33,507
	Kelly Services Inc., A		1,066		13,528
	Kforce Inc.		884		22,604
	Kimball International Inc., B		1,287		15,328
	Knoll Inc.		1,690		17,441
	Korn Ferry		2,002		48,689
b	Lawson Products Inc.		182		4,863
	McGrath RentCorp		767		40,175
	Miller Industries Inc.		338		9,559
	Mobile Mini Inc.		1,638		42,965
	Moog Inc., A		1,027		51,894
	MSA Safety Inc.		1,300		131,560
	National Presto Industries Inc.		143		10,126
	Omega Flex Inc.		117		9,875
b	P.A.M. Transportation Services Inc.		65		1,999
	Pitney Bowes Inc.		2,431		4,959
	Preformed Line Products Co.		91		4,535
b	Radiant Logistics Inc.		936		3,622
	Resources Connection Inc.		1,183		12,978
	Rush Enterprises Inc., B		130		3,966
b	SAIA Inc.		962		70,746
	Simpson Manufacturing Co. Inc.		1,495		92,660
b	SiteOne Landscape Supply Inc.		585		43,068
	Standex International Corp.		377		18,481
	Steelcase Inc., A		3,146		31,051
	Systemax Inc.		351		6,223
	Tennant Co.		559		32,394
	Tetra Tech Inc.		780		55,084
b	Transcat Inc.		182		4,823
b	Trex Co. Inc.		1,794		143,771
	UniFirst Corp.		481		72,674
	Universal Forest Products Inc.		897		33,359
	Universal Logistics Holdings Inc.		247		3,236
b	US Xpress Enterprises Inc., A		624		2,084
b	Vicor Corp.		481		21,424
	Watts Water Technologies Inc., A		819		69,328
	Werner Enterprises Inc.		1,664		60,337
b	Willis Lease Fin Corp.		65		1,729

					3,004,010



franklintempleton.com	Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Information Technology 12.3%
b	A10 Networks Inc.		1,521	$	9,445
b	ACI Worldwide Inc.		2,483		59,964
b	Alarm.com Holdings Inc.		1,040		40,466
b	Altair Engineering Inc.		1,079		28,593
	American Software Inc., A		910		12,931
b	Appfolio Inc.		221		24,520
	Astro-Med Inc.		169		1,311
b	Avid Technology Inc.		949		6,387
	Badger Meter Inc.		884		47,382
b	Cambium Networks Corp.		91		510
b	Casa Systems Inc.		767		2,685
b	CEVA Inc.		650		16,204
b	ChannelAdvisor Corp.		754		5,474
b	Cirrus Logic Inc.		1,846		121,153
b	Coda Octopus Group Inc.		78		438
b	CommVault Systems Inc.		1,365		55,255
	CSG Systems International Inc.		1,209		50,597
	Daktronics Inc.		1,092		5,384
b	Digi International Inc.		390		3,721
b	eGain Corp.		585		4,288
b	ePlus Inc.		390		24,422
	EVERTEC Inc.		1,807		41,073
	Hackett Group Inc.		845		10,748
b	Immersion Corp.		975		5,226
b	Information Services Group Inc.		936		2,406
b	Insight Enterprises Inc.		1,209		50,935
b	Intelligent Systems Corp.		104		3,535
b	Iteris Inc.		1,053		3,370
	J2 Global Inc.		1,729		129,416
b	Majesco		182		994
	ManTech International Corp., A		845		61,406
	MAXIMUS Inc.		1,443		83,983
b	MicroStrategy Inc.		260		30,706
b	MobileIron Inc.		2,145		8,151
b	Napco Security Technologies Inc.		377		5,719
	NIC Inc.		2,405		55,315
b	Novanta Inc.		936		74,768
	NVE Corp.		156		8,117
b	OSI Systems Inc.		364		25,087
b	Paysign Inc.		429		2,214
	PC Connection Inc.		364		15,000
b	Perficient Inc.		455		12,326
b	Priority Technology Holdings Inc.		260		504
	Progress Software Corp.		988		31,616
	QAD Inc., A		325		12,977
b	Qualys Inc.		1,105		96,124
b	Rosetta Stone Inc.		624		8,748
b	ScanSource Inc.		741		15,850
b	Semtech Corp.		1,508		56,550
b	Silicon Laboratories Inc.		1,352		115,474
b	Sonim Technologies Inc.		260		182
b	SPS Commerce Inc.		1,105		51,394
b	Sykes Enterprises Inc.		585		15,865
	Tessco Technologies Inc.		169		826
	Vishay Intertechnology Inc.		3,692		53,202
	Xperi Corp.		1,053		14,647
b	Zix Corp.		1,846		7,956

					1,633,540



42	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Materials 1.7%
	Advanced Emissions Solutions Inc.		520	$	3,416
	Greif Inc., A		806		25,059
	Greif Inc., B		182		7,291
	Myers Industries Inc.		1,079		11,599
	Orion Engineered Carbons SA		871		6,498
	PolyOne Corp.		1,118		21,208
	Quaker Chemical Corp.		325		41,041
	Schweitzer-Mauduit International Inc.		1,014		28,210
	Sensient Technologies Corp.		1,365		59,391
	Valhi Inc.		806		830
	Warrior Met Coal Inc.		1,365		14,496

					219,039

	Real Estate 6.2%
	Agree Realty Corp.		1,144		70,814
	American Assets Trust Inc.		1,131		28,275
a	CBL & Associates Properties Inc.		2,392		479
	Cedar Realty Trust Inc.		2,665		2,487
	CoreCivic Inc.		3,328		37,174
	DiamondRock Hospitality Co.		4,901		24,897
	First Industrial Realty Trust Inc.		3,718		123,549
	Franklin Street Properties Corp.		3,146		18,026
	Lexington Realty Trust		7,917		78,616
	LTC Properties Inc.		1,170		36,153
	Monmouth Real Estate Investment Corp., A		2,509		30,233
	National Health Investors Inc.		1,391		68,882
	One Liberty Properties Inc.		442		6,157
	Preferred Apartment Communities Inc., A		1,560		11,201
	PS Business Parks Inc.		728		98,658
	QTS Realty Trust Inc., A		1,326		76,921
	RE/MAX Holdings Inc., A		663		14,533
	Realogy Holdings Corp.		2,899		8,726
	RPT Realty		2,652		15,991
	Summit Hotel Properties Inc.		2,444		10,314
a	Tanger Factory Outlet Centers Inc.		2,262		11,310
	Universal Health Realty Income Trust		364		36,695
	Urstadt Biddle Properties, A		936		13,198
	Whitestone REIT		1,079		6,690

					829,979

	Utilities 7.4%
	American States Water Co.		1,287		105,199
	Artesian Resources Corp., CL A		221		8,261
	Avista Corp.		2,015		85,617
	Black Hills Corp.		1,755		112,373
	California Water Service Group		1,638		82,424
	Clearway Energy Inc., A		1,118		19,196
	Clearway Energy Inc., C		2,210		41,548
	Consolidated Water Co. Ltd.		208		3,411
	El Paso Electric Co.		1,287		87,465
	Genie Energy Ltd., B		338		2,427
	Global Water Resources Inc.		338		3,444
	MGE Energy Inc.		1,079		70,642
	NorthWestern Corp.		1,352		80,890
	PNM Resources Inc.		2,314		87,932
	SJW Group		728		42,057
	Southwest Gas Holdings Inc.		1,651		114,844
	Spark Energy Inc., A		403		2,527



franklintempleton.com	Annual Report	43

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin LibertyQ U.S. Small Cap Equity ETF (continued)



		Shares		Value
	Common Stocks (continued)
	Utilities (continued)
	Unitil Corp.		455	$	23,806
	York Water Co.		351		15,254

					989,317

	Total Investments before Short Term Investments (Cost $18,130,165)				13,271,629

	Short Term Investments (Cost $131,291) 1.0%
	Investments from Cash Collateral Received for Loaned Securities 1.0%
	Money Market Funds 1.0%
c,d	Institutional Fiduciary Trust Portfolio, 0.32%		131,291		131,291

	Total Investments (Cost $18,261,456) 100.7%				13,402,920
	Other Assets, less Liabilities (0.7)%				(93,244	)

	Net Assets 100.0%			$	13,309,676

See Abbreviations on page 57.

^aA portion or all of the security is on loan at March 31, 2020. See Note 1(c).

^bNon-income producing.

^cThe rate shown is the annualized seven-day effective yield at period end.

^dSee Note 3(c) regarding investments in affiliated management investment companies.



44	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2020



	Franklin LibertyQ U.S. Equity ETF			Franklin LibertyQ U.S. Mid Cap Equity ETF			Franklin LibertyQ U.S. Small Cap Equity ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	1,523,639,463		$	16,506,650		$	18,130,165
Cost – Non-controlled affiliates (Note 3c)		911,900			75,900			131,291

Value – Unaffiliated issuers+	$	1,306,012,557		$	13,676,140		$	13,271,629
Value – Non-controlled affiliates (Note 3c)		911,900			75,900			131,291
Cash		3,265,305			22,086			22,965
Receivables:
Capital shares sold		2,788,812			—			—
Dividends		2,146,711			23,496			19,616
Deposits with brokers for:
Futures contracts		372,000			—			—

Total assets		1,315,497,285			13,797,622			13,445,501

Liabilities:
Payables:
Investment securities purchased		2,768,690			—			—
Management fees		169,037			3,526			4,534
Variation margin on futures contracts		64,333			—			—
Payable upon return of securities loaned		911,900			75,900			131,291

Total liabilities		3,913,960			79,426			135,825

Net assets, at value	$	1,311,583,325		$	13,718,196		$	13,309,676

Net assets consist of:
Paid-in capital	$	1,544,754,784		$	16,694,032		$	19,180,821
Total distributable earnings (loss)		(233,171,459	)		(2,975,836	)		(5,871,145	)

Net assets, at value	$	1,311,583,325		$	13,718,196		$	13,309,676

Shares outstanding		47,500,000			550,000			650,000

Net asset value per share	$	27.61		$	24.94		$	20.48


+Includes securities loaned		890,893			74,242			124,409



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FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2020



	Franklin LibertyQ U.S. Equity ETF			Franklin LibertyQ U.S. Mid Cap Equity ETF			Franklin LibertyQ U.S. Small Cap Equity ETF
Investment income:
Dividends:
Unaffiliated issuers	$	31,642,478		$	251,655		$	357,380
Interest:
Unaffiliated issuers		—			47			66
Interest from securities loaned:
Unaffiliated issuers (net of fees and rebates)		(722	)		334			1,199
Non-Controlled affiliates (Note 3c)		97,763			413			4,505

Total investment income		31,739,519			252,449			363,150

Expenses:
Management fees (Note 3a)		2,294,682			39,896			72,370
Other		—			—			59

Total expenses		2,294,682			39,896			72,429
Expenses waived/paid by affiliates (Note 3c)		(3,247	)		(89	)		(1,012	)

Net expenses		2,291,435			39,807			71,417

Net investment income		29,448,084			212,642			291,733

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(14,494,521	)		(69,352	)		(714,560	)
In-kind redemptions		71,265,331			604,172			791,412
Futures contracts		(77,484	)		—			—

Net realized gain (loss)		56,693,326			534,820			76,852

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(257,955,467	)		(3,745,164	)		(5,286,481	)
Futures contracts		(216,502	)		—			—

Net change in unrealized appreciation (depreciation)		(258,171,969	)		(3,745,164	)		(5,286,481	)

Net realized and unrealized gain (loss)		(201,478,643	)		(3,210,344	)		(5,209,629	)

Net increase (decrease) in net assets resulting from operations	$	(172,030,559	)	$	(2,997,702	)	$	(4,917,896	)



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin LibertyQ U.S. Equity ETF						Franklin LibertyQ U.S. Mid Cap Equity ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	29,448,084		$	7,322,781		$	212,642		$	121,894
Net realized gain (loss)		56,693,326			9,804,269			534,820			106,914
Net change in unrealized appreciation (depreciation)		(258,171,969	)		31,328,794			(3,745,164	)		734,943

Net increase (decrease) in net assets resulting from operations		(172,030,559	)		48,455,844			(2,997,702	)		963,751

Distributions to shareholders (Note 1e)		(26,642,033	)		(6,162,655	)		(202,973	)		(106,377	)

Capital share transactions: (Note 2)		502,001,368			857,635,782			6,306,864			6,984,672

Net increase (decrease) in net assets		303,328,776			899,928,971			3,106,189			7,842,046
Net assets:
Beginning of year		1,008,254,549			108,325,578			10,612,007			2,769,961

End of year (Note 1e)	$	1,311,583,325		$	1,008,254,549		$	13,718,196		$	10,612,007



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	47

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin LibertyQ U.S. Small Cap Equity ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	291,733		$	158,146
Net realized gain (loss)		76,852			(169,234	)
Net change in unrealized appreciation (depreciation)		(5,286,481	)		302,305

Net increase (decrease) in net assets resulting from operations		(4,917,896	)		291,217

Distributions to shareholders (Note 1e)		(314,153	)		(121,259	)

Capital share transactions: (Note 2)		562,588			15,142,986

Net increase (decrease) in net assets		(4,669,461	)		15,312,944
Net assets:
Beginning of year		17,979,137			2,666,193

End of year (Note 1e)	$	13,309,676		$	17,979,137



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Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of forty-two separate funds, three of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Each of the Funds are an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of each Fund’s corresponding underlying index.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

Equity securities listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

Investments in open-end mutual funds are valued at the closing NAV.

determine the fair value of those instruments. The Funds’ net benefit or obligation under the derivative contract, as measured by the fair value of the contract, is included in net assets.



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

an open foreign market are adjusted and reflected by the Funds for financial reporting purposes

b. Derivative Financial Instruments

Derivative counterparty credit risk is managed through a formal evaluation of the creditworthiness of all potential counterparties. Certain or all Funds attempt to reduce their exposure to counterparty credit risk on OTC derivatives, whenever possible, by entering into International Swaps and Derivatives Association (ISDA) master agreements with certain counterparties. These agreements contain various provisions, including but not limited to collateral requirements, events of default, or early termination. Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty. Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and close-out all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. However, absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.

See Note 7 regarding other derivative information.

c. Securities Lending



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NOTES TO FINANCIAL STATEMENTS

the securities lending agent and/or third-party vendor, is reported separately in the Statements of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.

d. Income Taxes

determined that no tax liability is required in its financial statements related to uncertain tax positions for any open tax years (or expected to be taken in future tax years). Open tax years are those that remain subject to examination and are based on the statute of limitations in each jurisdiction in which the Fund invests.

e. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Estimated expenses are accrued daily. Dividend income is recorded on the ex-dividend date. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

For the year ended March 31, 2019, distributions to shareholders were as follows:



	Franklin LibertyQ U.S. Equity ETF			Franklin LibertyQ U.S. Mid Cap Equity ETF			Franklin LibertyQ U.S. Small Cap Equity ETF
Distributions from net investment income	$	(6,162,655	)	$	(106,377	)	$	(121,259	)

f. Accounting Estimates

g. Guarantees and Indemnifications



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest

Authorized participants pay a standard transaction fee to the shareholder servicing agent when purchasing or redeeming Creation Units of the Funds regardless of the number of Creation Units that are being created or redeemed on the same day by the Authorized Participant. The standard transaction fee is imposed to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units and is not charged to or paid by the Funds.

At March 31, 2020, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin LibertyQ U.S. Equity ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount

Shares sold		25,800,000		$	846,426,405			31,000,000		$	938,802,146
Shares redeemed		(10,400,000	)		(344,425,037	)		(2,700,000	)		(81,166,364	)

Net increase (decrease)		15,400,000		$	502,001,368			28,300,000		$	857,635,782



	Franklin LibertyQ U.S. Mid Cap Equity ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		300,000		$	9,365,575			300,000		$	8,425,958
Shares redeemed		(100,000	)		(3,058,711	)		(50,000	)		(1,441,286	)

Net increase (decrease)		200,000		$	6,306,864			250,000		$	6,984,672



	Franklin LibertyQ U.S. Small Cap Equity ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		250,000		$	6,943,400			600,000		$	16,620,824
Shares redeemed		(250,000	)		(6,380,812	)		(50,000	)		(1,477,838	)

Net increase (decrease)		—		$	562,588			550,000		$	15,142,986



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Advisory Services, LLC (FASL)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter

a. Management Fees

The Funds pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Funds’ acquired fund fees and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non routine or extraordinary expenses. The fees are based on the average daily net assets of each of the Funds as follows:



		Annualized Fee Rate
Franklin LibertyQ U.S. Equity ETF		0.15%
Franklin LibertyQ U.S. Mid Cap Equity ETF		0.30%
Franklin LibertyQ U.S. Small Cap Equity ETF		0.35%

Prior to August 1, 2019, the Franklin LibertyQ U. S. Equity ETF paid fees to Franklin Advisers, Inc. of 0.25% per year based on the average daily net assets of the Fund.

b. Administrative Fees

c. Investments in Affiliated Management Investment Companies



	Value at Beginning of Year		Purchases		Sales			Realized Gain (Loss)		Net Change In (Depreciation)		Value at End of Year		Number of Shares Held at End of Year		Investment Income

Franklin LibertyQ U.S. Equity ETF																Income from Securities loaned
Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	—	$	20,580,058	$	(19,668,158	)	$	—	$	—	$	911,900		911,900	$	97,763



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

c. Investments in Affiliated Management Investment Companies (continued)



	Value at Beginning of Year		Purchases		Sales			Realized Gain (Loss)		Net Change In (Depreciation)		Value at End of Year		Number of Shares Held at End of Year		Investment Income

Franklin LibertyQ U.S. Mid Cap Equity ETF																Income from Securities loaned
Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	27,777	$	860,856	$	(812,733	)	$	—	$	—	$	75,900		75,900	$	413


Franklin LibertyQ U.S. Small Cap Equity ETF																Income from Securities loaned
Non-Controlled Affiliates																Income from Securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	102,580	$	6,178,207	$	(6,149,496	)	$	—	$	—	$	131,291		131,291	$	4,505

d. Other Affiliated Transactions

At March 31, 2020, the shares of Franklin LibertyQ U.S. Equity ETF were owned by the following entities:



Funds	Shares		Percentage of Outstanding Shares^a
Franklin LibertyQ U.S. Equity ETF
Franklin Conservative Allocation Fund		3,261,745		6.9%
Franklin Moderate Allocation Fund		7,305,230		15.4%
Franklin Growth Allocation Fund		6,170,889		13.0%
Franklin LifeSmart™ 2020 – 2055 Retirement Target Funds		2,656,770		5.6%
Franklin 529 Portfolios		11,940,420		25.1%

		31,335,054		66.0%

^aInvestment activities of significant shareholders could have a material impact on the Funds.

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2020, the capital loss carryforwards were as follows:



	Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Capital loss carryforwards not subject to expiration:
Short term	$	11,114,119	$	35,294	$	518,055
Long term		7,023,123		120,561		476,044

Total capital loss carryforwards	$	18,137,242	$	155,855	$	994,099



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NOTES TO FINANCIAL STATEMENTS

4. Income Taxes (continued)

The tax character of distributions paid during the years ended March 31, 2020 and 2019, were as follows:



	Franklin LibertyQ U.S. Equity ETF				Franklin LibertyQ U.S. Mid Cap Equity ETF				Franklin LibertyQ U.S. Small Cap Equity ETF
	2020		2019		2020		2019		2020		2019
Distributions paid from ordinary income	$	26,642,033	$	6,162,655	$	202,973	$	106,377	$	314,153	$	121,259

At March 31, 2020, the cost of investments and net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Franklin LibertyQ U.S. Equity ETF			Franklin LibertyQ U.S. Mid Cap Equity ETF			Franklin LibertyQ U.S. Small Cap Equity ETF
Cost of investments	$	1,526,055,297		$	16,600,725		$	18,312,863

Unrealized appreciation	$	27,768,931		$	441,489		$	513,553
Unrealized depreciation		(246,899,771	)		(3,290,174	)		(5,423,496	)

Net unrealized appreciation (depreciation)	$	(219,130,840	)	$	(2,848,685	)	$	(4,909,943	)

Distributable earnings – undistributed ordinary income	$	4,096,623		$	28,704		$	32,897

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2020, were as follows:



	Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Purchases	$	248,832,596	$	3,196,952	$	5,126,159
Sales	$	243,569,636	$	3,153,321	$	4,855,475

In-kind transactions associated with creation and redemptions for the year ended March 31, 2020, were as follows:



	Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Cost of Securities Received	$	831,555,142	$	—	$	—
Value of Securities Delivered	$	333,241,177	$	67,166	$	—



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NOTES TO FINANCIAL STATEMENTS

5. Investment Transactions (continued)

At March 31, 2020, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:



	Franklin LibertyQ U.S. Equity ETF		Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
Securities lending transactions^a:
Equity investments^b	$	911,900	$	75,900	$	131,291

^aThe agreements can be terminated at any time.

^bThe gross amount of recognized liability for such transactions is included in payable upon return of securities loaned in the Statements of Assets and Liabilities.

6. Novel Coronavirus Pandemic

7. Other Derivative Information

At March 31, 2020, the Funds’ investments in derivative contracts are reflected in the Statements of Assets and Liabilities as follows:



	Asset Derivatives			Liability Derivatives

	Statements of Assets and Liabilities Location	Fair Value		Statements of Assets and Liabilities Location	Fair Value
Franklin LibertyQ U.S. Equity ETF

Equity contracts	Variation margin on futures contracts	$	—	Variation margin on futures contracts	$	111,042

Totals		$	—		$	111,042

For the year ended March 31, 2020, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:

Derivative Contracts
Not Accounted for as
Hedging Instruments

Statements of
Operations Locations

Net Realized
Gain (Loss)
for the Period

Statements of
Operations Locations

Net Change in
Unrealized
Appreciation
(Depreciation)
for the Period

Franklin LibertyQ U.S. Equity ETF

Net realized gain (loss) from:

Net change in unrealized
appreciation (depreciation) on:

Equity Contracts

Future Contracts

(77,484

)

Future Contracts

(216,502

)

For the year ended March 31, 2020, the average month end notional amount of futures contracts was $2,070,290

See Note 1(b) regarding derivative financial instruments.



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NOTES TO FINANCIAL STATEMENTS

8. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

At March 31, 2020, all of the Funds’ investments in financial instruments carried at fair value were valued using Level 1 inputs.

9. Subsequent Events

The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.

Abbreviations


Selected Portfolio
REIT		Real Estate Investment Trust



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FRANKLIN TEMPLETON ETF TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin LibertyQ U.S. Equity ETF, Franklin LibertyQ U.S. Mid Cap Equity ETF, and Franklin LibertyQ U.S. Small Cap Equity ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin LibertyQ U.S. Equity ETF, Franklin LibertyQ U.S. Mid Cap Equity ETF, and Franklin LibertyQ U.S. Small Cap Equity ETF (the “Funds”) as of March 31, 2020, the related statements of operations for the year ended March 31, 2020, the statements of changes in net assets for each of the two years in the period ended March 31, 2020, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2020, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2020 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

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 March 31, 2020 by correspondence with the custodian, transfer agent 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 opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 19, 2020

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.



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Tax Information (unaudited)



Franklin LibertyQ U.S. Equity ETF	Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
94.42%		94.83%		87.94%



Franklin LibertyQ U.S. Equity ETF	Franklin LibertyQ U.S. Mid Cap Equity ETF		Franklin LibertyQ U.S. Small Cap Equity ETF
$29,006,938		$207,191		$282,742



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Board Members and Officers

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee and Trustee	Since 2016	44	Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and FlipKart Limited (2019-present) (eCommerce company); formerly, CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since January 2020	44	Fluor Corporation (construction and engineering) (2014-present), IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present) and Focus Financial Partner, LLC (financial services) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	44	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); and formerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).



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FRANKLIN TEMPLETON ETF TRUST

Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	49	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, President and Director, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; and formerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Interim Chief Compliance Officer	Since January 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 41 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	Vice President – AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 41 of the investment companies in Franklin Templeton.



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FRANKLIN TEMPLETON ETF TRUST

Interested Board Members and Officers (continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer – Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; and formerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since May 2019	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of two of the investment companies in Franklin Templeton.

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 41 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.

The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request.

Shareholders may call (800) DIAL BEN/342-5236 to request the SAI.



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FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

Premium/Discount Information



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To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2020

LOGO

Franklin Liberty Intermediate Municipal Opportunities ETF

Franklin Liberty Municipal Bond ETF

Franklin Templeton



Contents

Annual Report

Municipal Bond Market Overview			2
Franklin Liberty Intermediate Municipal Opportunities ETF			4
Franklin Liberty Municipal Bond ETF			10
Financial Highlights and Statements of Investments			16
Financial Statements			28
Notes to Financial Statements			31
Report of Independent Registered Public Accounting Firm			38
Tax Information			39
Board Members and Officers			40
Shareholder Information			43

Visit franklintempleton.com/investor/investments-and-solutions/investment-options/etfs/ for fund updates and documents.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



franklintempleton.com	Not part of the annual report	1

ANNUAL REPORT

Municipal Bond Market Overview

The 12-month period ended March 31, 2020, was defined by two distinct phases: before and during the global outbreak of the novel coronavirus (COVID-19). In terms of U.S.-domiciled assets, equities, corporate bonds, U.S. Treasuries and municipal bonds all posted positive returns for the period’s first 10 and a half months. By the end of February, COVID-19 had spread globally and economies around the world took notice. Volatility in all asset types spiked during the period’s final five weeks. Risk assets, including municipal bonds, experienced selling pressure that resulted in negative total returns for the period, while U.S. Treasury prices rallied and drove yields, which move inversely to price, to reach historical lows.

To show the dramatic turn of events during March 2020, we are providing returns of certain major asset classes for the 12-month and one-month periods ended March 31, 2020. Investment-grade municipal bonds, as measured by the Bloomberg Barclays Municipal Bond Index, posted total returns of +3.85% and -3.63% for the 12-month and one-month periods, respectively, compared with -0.74% and -11.00% total returns for high-yield municipal bonds, as measured by the Bloomberg Barclays High Yield Municipal Bond Index.¹ U.S. Treasuries, as measured by the Bloomberg Barclays U.S. Treasury Index, posted total returns of +13.23% and +2.89% for the 12-month and one-month periods, respectively, compared with +4.98% and -7.09% total returns for investment-grade corporate bonds, as measured by the Bloomberg Barclays U.S. Corporate Bond Index.¹ All four of these fixed income sectors outperformed U.S. stocks, as measured by the Standard & Poor’s^® 500 Index, which posted total returns of -6.98% and -12.35% for the 12-month and one-month periods, respectively.¹

As one would expect during times of financial distress, investment-grade municipal bonds performed better than their high-yield counterparts as well as U.S. equities during the 12-month and one-month periods. However, during both time periods, municipal bonds underperformed U.S. Treasuries and investment-grade corporate bonds, and U.S. Treasuries outperformed all these asset classes.

As volatility due to the COVID-19 pandemic increased across financial markets in late February 2020 and into early March, the municipal bond market seemed relatively impervious. However, during the second week of March, the municipal bond market experienced one of its worst single-day price declines over the past decade.

Federal authorities quickly implemented monetary policy and fiscal stimulus packages to combat the economic and market impact of the global pandemic. Despite the federal responses, many investors expected an economic recession and fled to perceived safe-haven assets, most specifically U.S. Treasury securities. Although yields on U.S. Treasuries dropped to all-time lows as prices rose, municipal bonds sold off significantly as many investors priced in the potential effects of the economic slowdown on state and local governments, as well as related municipal bond sectors. Municipal bond yields moved abruptly and significantly higher in mid-March 2020, but the selloff abated after the U.S. Federal Reserve (Fed) stepped in to help stabilize short-dated municipal securities. Similarly, the phase 3 federal stimulus package, which gives the Fed the ability to buy municipal bonds, also served to somewhat calm the market.

In the U.S., the recent selloff in municipal bonds appeared similar to the global financial crisis more than a decade ago, with many investors seemingly believing U.S. Treasuries are the only safe-haven investments. Although uncertainty related to the COVID-19 pandemic has been the main reason for municipal bond market volatility, we have seen a number of other contributing factors.

For example, the oil shock that began to impact corporate bond markets in late February 2020 gained steam and started to play a more meaningful role in the municipal bond market. Another key factor contributing to the recent declines is the municipal bond mutual fund market’s transition to net redemptions after experiencing record net inflows in 2019 and the first two months of 2020. The entire municipal market sold off toward period-end, which may be one reason why high-yield municipal bonds have been hit the hardest.

Although we believe certain credits and sectors are more likely to be negatively impacted by these factors than others, the recent selloff has been indiscriminate in nature, hitting broad swaths of the municipal bond market and potentially creating attractive opportunities for some tax-sensitive investors.

We entered this downturn coming off a relatively strong economy, and we think many state and local governments, as well as most municipal bond issuers, are fairly well positioned heading into this crisis. After the recent selloff, yields for even the highest-rated segment of the municipal bond market (AAA) far surpassed the yields for U.S. Treasuries across

1. Source: Morningstar. Treasuries, if held to maturity, offer a fixed rate of return and a fixed principal value; their interest payments and principal are guaranteed.

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



2	Annual Report	franklintempleton.com

maturity terms, and short-term AAA municipal bond yields exceeded those of long-term U.S. Treasuries in some cases. Depending on an investor’s tax situation, we believe the higher yields provided by municipal bonds compared with U.S. Treasuries have become incrementally more compelling.

The Investment Company Institute (ICI) reported net outflows from municipal bond mutual funds in March, as investors pulled their money out of municipal bond mutual funds as markets generally sold off. This ended a run of 14 consecutive months of net inflows. According to the ICI, as of March 25, 2020, municipal bond mutual funds had approximately -$42 billion of net outflows during March 2020, the largest monthly net outflow on record, bringing the 2020 year-to-date total net outflows to approximately -$21 billion.

The Fed has acted aggressively to stem the tide of negative economic repercussions. The central bank had already lowered the federal funds target rate three times in 2019 to a range of 1.50%–1.75%. In March 2020, however, the Fed implemented two emergency rate cuts, lowering the federal funds target rate to a range of 0.00%–0.25%. The Fed also implemented additional tools, with several specifically intended to support stability in the municipal bond market.

We believe our approach to municipal bond investing is particularly well-suited for the volatile market environment. Over the last several years, we have focused on purchasing high-quality bonds, as the yield spreads between high-quality and lower-quality bonds have been narrow. We have also maintained exposure to pre-refunded bonds, the most liquid high-quality municipal bonds in the market. Our seasoned team of analysts and portfolio managers have navigated difficult times before, and we are using the team’s knowledge and experience to navigate through this crisis. Although we recognize that volatility will persist as long as the significant level of uncertainty weighs on financial markets, we are confident in our ability to provide relative downside protection for tax-sensitive, income-oriented investors.

At period-end, we maintained our positive view of the municipal bond market. We believe municipal bonds continue to be an attractive asset class among fixed income securities, and we intend to follow our disciplined approach of investing to maximize income, while seeking value in the municipal bond market.

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.



franklintempleton.com	Annual Report	3

Franklin Liberty Intermediate Municipal Opportunities ETF

This annual report for Franklin Liberty Intermediate Municipal Opportunities ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks to provide a high level of current income that is exempt from federal income taxes, including the federal alternative minimum tax, by investing at least 80% of its net assets in municipal securities that pay interest free from such taxes.¹ The Fund seeks to maintain a dollar-weighted average portfolio maturity (the time in which the debt must be repaid) of three to 10 years, and may invest in municipal securities in any rating category by U.S. nationally recognized rating services (or comparable unrated or short-term rated securities).


Credit Quality Composition*

3/31/20

Ratings	% of Total Investments
AAA		8.16%
AA		24.61%
A		21.45%
BBB		23.98%
Not Rated		21.80%

*Securities, except for those labeled Not Rated, are assigned ratings by one or more Nationally Recognized Statistical Credit Rating Organizations (NRSROs), such as Standard & Poor’s, Moody’s and Fitch, that can be considered by the investment manager as part of its independent securities analysis. When ratings from multiple agencies are available, the highest is used, consistent with the portfolio investment process. Ratings reflect an NRSRO’s opinion of an issuer’s creditworthiness and typically range from AAA (highest) to D (lowest). The Below Investment Grade category consists of bonds rated below BBB-. The Refunded category generally consists of refunded bonds secured by US government or other high-quality securities and not rerated by an NRSRO. The Not Rated category consists of ratable securities that have not been rated by an NRSRO. Cash and equivalents are excluded from this composition.

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of +1.60% based on market price and +1.61% based on net asset value (NAV). In comparison, the Bloomberg Barclays Municipal 1-15 Year Index posted a +3.31% total return for the same period.² You can find more

of the Fund’s performance data in the Performance Summary beginning on page 6.

Investment Strategy

We select securities that we believe will provide the best balance between risk and return within the Fund’s range of allowable investments and we typically use a buy-and-hold strategy. The Fund is an actively managed exchange-traded fund (ETF) that does not seek to replicate the performance of a specified index.


Portfolio Composition

3/31/20

	% of Total Investments*
General Obligation Bonds		17.70%
Hospital & Health Care		23.51%
Tax Supported Debt		14.90%
Utilities		9.88%
Higher Education		8.40%
Other Revenue Bonds		7.11%
Housing		7.14%
Subject to Government App		4.08%
Transportation		6.22%
Corporate-Backed		1.06%

*Does not include cash and cash equivalents.

Manager’s Discussion

During the reporting period, we found value in securities in the eight- to 15-year maturity range. Given the Fund’s average maturity cannot exceed 10 years, this represented the longer end of our target universe. The municipal yield curve

1. Dividends are generally subject to state and local taxes, if any. For investors subject to alternative minimum tax, a small portion of Fund dividends may be taxable. Distributions of capital gains are generally taxable. To avoid imposition of 28% backup withholding on all Fund distributions and redemption proceeds, U.S. investors must be properly certified on Form W-9 and non-U.S. investors on Form W-8BEN.

2. Source: Morningstar.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 17.



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FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

remains positively sloped and we believe focusing on longer maturities provides us with the best opportunities to achieve our objective of maximizing after-tax income for investors. In addition, we were able to find attractive opportunities in the high-yield space; therefore, we selectively added higher-yielding securities to the portfolio while selling existing positions with lower yields.

The Fund is overweight in BBB rated and below investment-grade securities relative to the benchmark; this positioning was the primary driver of the Fund’s underperformance versus its benchmark index, due to the selloff in the high-yield market in the final month of the reporting period. Given the Fund’s mandate, we will continue to look for opportunities to add high-yielding securities with a focus on the seven- to 15-year portion of the yield curve. The Fund does not use leverage or derivatives. We believe our consistent, disciplined strategy can help our investors achieve high, tax-free income over the long term.

Typically, in declining rate environments, our turnover declines as we maintain exposure to securities that are producing income that exceeds their replacement value in the market. However, when rates rise, our turnover increases as opportunities to purchase securities that have the potential to increase income in the portfolio become available.

Thank you for your participation in Franklin Liberty Intermediate Municipal Opportunities ETF. We look forward to serving your future investment needs.

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.



franklintempleton.com	Annual Report	5

FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

Performance Summary as of March 31, 2020

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (9/5/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+1.61%

+1.60%

+1.61%

Since Inception (8/31/17)

+5.05%

+4.96%

+1.93%

+1.89%



	30-Day Standardized Yield⁶				Taxable Equivalent 30-Day Standardized Yield⁷
Distribution Rate⁵	(with fee waiver)		(without fee waiver)		(with fee waiver)		(without fee waiver)
2.42%		2.22%		1.25%		3.75%		2.11%

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

8/31/17–3/31/20

LOGO

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment

Income

$0.661908

Total Annual Operating Expenses⁹



With Waiver	Without Waiver
0.30%		2.15%

All investments involve risks, including possible loss of principal. Because municipal bonds are sensitive to interest-rate movements, the Fund’s yield and share price will fluctuate with market conditions. Bond prices generally move in the opposite direction of interest rates. Thus, as prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. The Fund may invest in lower-rated bonds which include higher risk of default and loss of principal. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. The Fund may invest a significant part of its assets in municipal securities that finance similar types of projects, such as utilities, hospitals, higher education and transportation. A change that affects one project would likely affect all similar projects, thereby increasing market risk. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/20.

7. Taxable equivalent yield assumes the 2020 maximum federal income tax rate of 37.00% plus 3.80% Medicare tax.

8. Source: Morningstar. Bloomberg Barclays 1-15 Year Municipal Index measures the performance of municipal bonds with maturities from one to 17 years. It is a component of the Municipal Bond Index, which is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody’s, S&P and Fitch.

9. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

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



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FRANKLIN LIBERTY INTERMEDIATE MUNICIPAL OPPORTUNITIES ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	978.80	$	2.08	$	1022.90	$	2.12		0.42	%

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

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin Liberty Municipal Bond ETF

This annual report for Franklin Liberty Municipal Bond ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks to provide a high level of current income that is exempt from federal income taxes, including the federal alternative minimum tax, by investing at least 80% of its net assets in municipal securities that pay interest free from such taxes.¹ The Fund seeks to maintain a dollar-weighted average portfolio maturity (the time in which the debt must be repaid) of five to 15 years, and only buys securities rated, at the time of purchase, in one of the top four ratings categories by one or more U.S. nationally recognized rating services (or comparable unrated or short-term rated securities).


Credit Quality Composition*

3/31/20

Ratings	% of Total Investments
AAA		27.63%
AA		61.34%
A		9.07%
Not Rated		1.96%

Performance Overview

For the 12 months under review, the Fund posted cumulative total returns of +6.20% based on market price and +5.92% based on net asset value (NAV). In comparison, the Bloomberg Barclays Municipal Bond Index posted a +3.85% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 12.

Investment Strategy


Portfolio Composition

3/31/20

	% of Total Investments*
General Obligation Bonds		28.22%
Utilities		26.02%
Tax Supported Debt		13.03%
Higher Education		9.82%
Hospital & Health Care		4.87%
Transportation		7.98%
Housing		4.38%
Other Revenue Bonds		4.23%
Subject to Government App		1.45%

*Does not include cash and cash equivalents.

Manager’s Discussion

During the 12-month reporting period, the Fund maintained its average maturity near 13.5 years, on the longer end of the target 5- to 15-year range. The municipal yield curve remains positively sloped and we believe focusing on longer maturities provides us with the best opportunities to achieve our objective of maximizing after-tax income for investors. We selectively added high-quality names at attractive spreads as the Fund continued to grow over the 12-month period. Security selection was a key contributor to the outperformance versus the Fund’s benchmark, while being overweight in bonds with maturities between 12 and 17 years

2. Source: Morningstar.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 23.



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FRANKLIN LIBERTY MUNICIPAL BOND ETF

also contributed positively to relative performance. We will continue to look for opportunities to add high quality names at attractive prices with a focus on the 12- to 17-year portion of the yield curve. The Fund does not use leverage or derivatives. We believe our consistent, disciplined strategy can help our investors achieve high, tax-free income over the long term.

Thank you for your participation in Franklin Liberty Municipal Bond ETF. We look forward to serving your future investment needs.

The foregoing information reflects our analysis, opinions and portfolio holdings as of March 31, 2020, the end of the reporting period. The way we implement our main investment strategies and the resulting portfolio holdings may change depending on factors such as market and economic conditions. These opinions may not be relied upon as investment advice or an offer for a particular security. The information is not a complete analysis of every aspect of any market, state, industry, security or the Fund. Statements of fact are from sources considered reliable, but the investment manager makes no representation or warranty as to their completeness or accuracy. Although historical performance is no guarantee of future results, these insights may help you understand our investment management philosophy.



franklintempleton.com	Annual Report	11

FRANKLIN LIBERTY MUNICIPAL BOND ETF

Performance Summary as of March 31, 2020

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (9/5/17), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

+5.92%

+6.20%

+5.92%

+6.20%

Since Inception (8/31/17)

+11.04%

+11.37%

+4.14%

+4.26%



	30-Day Standardized Yield⁶				Taxable Equivalent 30-Day Standardized Yield⁷
Distribution Rate⁵	(with fee waiver)		(without fee waiver)		(with fee waiver)		(without fee waiver)
2.44%		1.65%		1.05%		2.79%		1.77%

See page 14 for Performance Summary footnotes.



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FRANKLIN LIBERTY MUNICIPAL BOND ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

8/31/17–3/31/20

LOGO

See page 14 for Performance Summary footnotes.



franklintempleton.com	Annual Report	13

FRANKLIN LIBERTY MUNICIPAL BOND ETF

PERFORMANCE SUMMARY

Distributions(4/1/19–3/31/20)

Net Investment

Income

$0.614911

Total Annual Operating Expenses⁹



With Waiver	Without Waiver
0.30%		2.05%

All investments involve risks, including possible loss of principal. Because municipal bonds are sensitive to interest-rate movements, the Fund’s yield and share price will fluctuate with market conditions. Bond prices generally move in the opposite direction of interest rates. Thus, as prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. The Fund may invest a significant part of its assets in municipal securities that finance similar types of projects, such as utilities, hospitals, higher education and transportation. A change that affects one project would likely affect all similar projects, thereby increasing market risk. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/20.

7. Taxable equivalent yield assumes the 2020 maximum federal income tax rate of 37.00% plus 3.80% Medicare tax.

8. Source: Morningstar. The Bloomberg Barclays Municipal Bond Index is a market value-weighted index engineered for the long-term tax-exempt bond market. To be included in the index, bonds must be fixed rate, have at least one year to final maturity and be rated investment grade (Baa3/BBB- or higher) by at least two of the following agencies: Moody’s, S&P and Fitch.

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



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FRANKLIN LIBERTY MUNICIPAL BOND ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19¹		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1010.90	$	1.51	$	1023.50	$	1.52		0.30	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	15

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Intermediate Municipal Opportunities ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year		$24.97		$	24.40		$	25.00


Income from investment operations^b:

Net investment income^c		0.58			0.63			0.22

Net realized and unrealized gains (losses)		(0.17	)		0.57			(0.60	)


Total from investment operations		0.41			1.20			(0.38	)


Less distributions from net investment income		(0.66	)		(0.63	)		(0.22	)


Net asset value, end of year		$24.72		$	24.97		$	24.40


Total return^d		1.61%			4.99%			(1.53)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		1.46%			2.15%			1.71%

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%

Net investment income		2.29%			2.57%			1.55%

Supplemental data

Net assets, end of year (000’s)	$	12,362		$	7,490		$	7,319

Portfolio turnover rate^f		35.28%^g			35.63%			17.49%

^aFor the period August 31, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transaction that are executed as result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”)

^gPortfolio turnover rate excluding cash creations for the year end March 31, 2020 was as follows: 35.28%



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FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Liberty Intermediate Municipal Opportunities ETF



	Principal Amount*		Value
Municipal Bonds 83.6%
Alabama 0.9%
Homewood Educational Building Authority Revenue, Educational Facilities, Samford University, Refunding, Series A, 4.00%, 12/01/33		100,000	$	112,044

Alaska 2.3%
ALASKA ST INDL DEV & EXPORT AUTH REVENUE, 4.00%, 4/01/32		100,000		114,146
Matanuska-Susitna Borough Lease Revenue, Goose Creek Correctional Center Project, Refunding, 4.00%, 9/01/30		150,000		164,820

				278,966

Arizona 2.8%
La Paz County IDA Education Facility Lease Revenue, Chartere School Solutions-Harmony Public Schools Project, Series A, 5.00%, 2/15/28		100,000		110,556
Phoenix Civic Improvement Corp. Wastewater System Revenue, junior lien, Series A, 5.00%, 7/01/25		100,000		118,660
Phoenix IDA Student Housing Revenue, Downtown Phoenix Student Housing II LLC, Arizona State University Project, Series A, 5.00%, 7/01/31		100,000		113,635

				342,851

Arkansas 0.9%
Arkansas Development Finance Authority Healthcare Revenue, Baptist Health, 4.00%, 12/01/34		100,000		114,843

California 4.5%
California School Finance Authority Charter School Revenue, Summit Public Schools-Obligated Group, 5.00%, 6/01/27		100,000		110,385
California Statewide CDA Revenue, California Baptist University, Refunding, Series A, 3.00%, 11/01/22		100,000		98,678
California Statewide CDA Special Tax Revenue, CFD No. 2015-01, Improvement Area No. 2, University District, 5.00%, 9/01/27		100,000		110,148
Orange County CFD No. 2017-1 Special Tax, Esencia Village Improvement Area No. 1, Series A, 5.00%, 8/15/28		100,000		118,825
Perris Joint Powers Authority Local Agency Revenue, CFD No. 2001-1, Improvement Area Nos. 4 and 5, CFD No. 2005-1, Improvement Area 4, Refunding, Series B, 5.00%, 9/01/25		100,000		113,592

				551,628

Colorado 3.4%
Colorado State Health Facilities Authority Hospital Revenue, Christian Living Communities, Refunding and Improvement, 4.00%, 1/01/29		100,000		98,543
Regional Transportation District Sales Tax Revenue, FasTracks Project, Refunding, Series A, 5.00%, 11/01/27		100,000		125,876
Southglenn Metropolitan District Special Revenue, In the City of Centennial Colorado, Refunding, 5.00%, 12/01/30		100,000		102,330
Southlands Metropolitan District No. 1 GO, Aurora, Arapahoe County, Refunding, Series A-1, 3.50%, 12/01/27		100,000		96,679

				423,428

Connecticut 1.3%
Connecticut State HFA Housing Mortgage Finance Program Revnue, Series A, Subseries A-1, 2.875%, 11/15/30		150,000		156,567

Delaware 0.8%
Kent County Student Housing and Dining Facility Revenue, CHF-Dover LLC- Delaware State University Project, Series A, 5.00%, 7/01/29		100,000		102,444

Florida 5.5%
Alachua County Health Facilities Authority Health Facilities Revenue, Shands Teaching Hospital and Clinics Inc., Refunding, Series B-1, 5.00%, 12/01/32		100,000		122,347
Jacksonville Health Care Facilities Revenue, Brooks Rehabilitation, Genesis Health Inc., Obligated Group, Refunding, 5.00%, 11/01/27		100,000		124,088
Miami Health Facilities Authority Revenue, Miami Jewish Health Systems Inc. Project, Refunding, 5.00%, 7/01/28		150,000		137,139



franklintempleton.com	Annual Report	17

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Intermediate Municipal Opportunities ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Florida (continued)
Osceola County Transportation Revenue, CABS, Refunding, Series A-2, 10/01/32		150,000	$	107,723
St. Lucie County PCR, Florida Power and Light Co. Project, Refunding, Daily VRDN and Put, 0.95%, 9/01/28		100,000		100,000
Village CDD No. 13 Special Assessment Revenue, 3.00%, 5/01/29		100,000		94,910

				686,207

Georgia 2.7%
Athens-Clarke County Unified Government Development Authority Revenue, University of Georgia Athletic Assn. Project, Series B, Daily VRDN and Put, 0.78%, 7/01/35		100,000		100,000
Georgia Municipal Electric Authority Revenue, Project One, Subordinated, Refunding, Series A, 5.00%, 1/01/33		100,000		116,722
Main Street Natural Gas Inc. Gas Supply Revenue, Series A, 5.00%, 5/15/29		100,000		111,563

				328,285

Illinois 4.3%
Hillside Tax Increment Revenue, Cook County, Refunding, 5.00%, 1/01/24		100,000		100,911
Illinois State Finance Authority MFHR,
Better Housing Foundation ERNST Portfolio Project, Series A-1, 4.375%, 12/01/28		100,000		27,500
^a Better Housing Foundation Blue Station Project, Series A-1, 4.25%, 12/01/28		100,000		60,000
Railsplitter Tobacco Settlement Authority Revenue, 5.00%, 6/01/27		100,000		118,869
Southwestern Illinois Development Authority Revenue, Capital Appreciation, Local Government Program, AGMC Insured, zero cpn., 12/01/24		245,000		222,854

				530,134

Kentucky 1.7%
County of Owen Water Facilities Revenue, Kentucky-American Water Co. Project, Refunding, Series A, 2.45%, 6/01/39		100,000		104,600
Louisville/Jefferson County Metro Government Revenue, College, Bellarmine University Project, Refunding and Improvement, Series A, 4.00%, 5/01/29		100,000		99,730

				204,330

Louisiana 0.9%
Louisiana Local Government Environmental Facilities and CDA Revenue, Student Housing, Provident Group - ULM Properties LLC - University of Louisiana at Monroe Project, Series A, 5.00%, 7/01/29		100,000		106,046

Maryland 2.6%
Baltimore Special Obligation Revenue, Mayor and City Council of Baltimore, Harbor Point Project, Senior Lien, Refunding, Series A, 3.25%, 6/01/31		100,000		89,202
Frederick County Tax Increment and Special Tax B, Limited Obligation, Oakdale-Lake Linganore Project, Refunding, 3.25%, 7/01/29		140,000		128,422
Maryland EDC Revenue, Economic Development, Transportation Facilities Project, Refunding, Series A, 5.00%, 6/01/27		100,000		109,917

				327,541

Massachusetts 0.9%
Massachusetts State Development Finance Agency Revenue, Foxborough Regional Charter, Series B, 5.00%, 7/01/27		100,000		110,228

Michigan 0.8%
Grand Rapids EDC, EDR, Beacon Hill Eastgate Project, Refunding, Series A, 4.00%, 11/01/27		100,000		94,294

Minnesota 4.0%
Eagan GO, Series A, 4.00%, 2/01/26		100,000		114,759
Mille Lacs County GO, Capital Improvement Plan, Series A, 3.00%, 2/01/24		135,000		143,219
Northern Municipal Power Agency Electric System Revenue, Refunding, 5.00%, 1/01/36		100,000		118,280
St. Louis Park Public Schools ISD No. 283 GO, School Building, Minnesota School District Credit Enhancement Program, Series A, 5.00%, 2/01/25		100,000		117,649

				493,907



18	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Intermediate Municipal Opportunities ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Missouri 0.8%
St. Louis County IDA Senior Living Facilities Revenue, Friendship Village, St. Louis Obligated Group, Refunding, 5.00%, 9/01/27		100,000	$	104,723

Montana 1.0%
Cascade County High School District No. 1 Great Falls GO, School Building, 5.00%, 7/01/25		100,000		118,103

Nevada 2.8%
Carson City Hospital Revenue, Carson Tahoe Regional Healthcare Project, Refunding, Series A, 5.00%, 9/01/28		100,000		120,915
Las Vegas Special ID No. 812 Special Assessment, Local Improvement, Summerlin Village 24, 4.00%, 12/01/22		100,000		100,312
Washoe County School District GO, School Improvement, Series C, 5.00%, 10/01/26		100,000		121,231

				342,458

New Hampshire 1.0%
New Hampshire State Health and Education Facilities Authority Revenue, University System of New Hampshire Issue, Refunding, Series A, 5.00%, 7/01/27		100,000		124,809

New Jersey 2.6%
New Jersey EDA Water Facilities Revenue, American Water Co. Inc., Project, Refunding, Series A, 2.20%, 10/01/39		100,000		100,680
New Jersey State Transportation Trust Fund Authority Revenue, Transportation System, Refunding, Series A, 5.00%, 12/15/28		100,000		110,858
Pinelands Regional School District GO, Refunding, AGMC Insured, 3.00%, 8/01/27		100,000		108,045

				319,583

New York 1.7%
MTA Revenue, Transportation, Green Bonds, Climate Bond Certified, Refunding, Series B, 5.00%, 11/15/28		100,000		111,428
Nassau County NY IDA, Civic Facility Revenue, Cold Spring Harbor Labortory, 0.60%, 1/01/34		100,000		100,000

				211,428

North Carolina 2.5%
North Carolina State Medical Care Commission Retirement Facilities Revenue, The United Methodist Retirement Homes, first mortgage, Refunding, Series A, 5.00%, 10/01/27		100,000		106,287
The Charlotte-Mecklenburg Hospital Authority Revenue, Carolinas HealthCare System, Refunding Series B, Daily VRDN and Put, 0.75%, 1/15/38		200,000		200,000

				306,287

Ohio 3.6%
Franklin County Convention Facilities Authority Hotel Project Revenue, GRTR Columbus Convention Center Hotel Expense Project, 5.00%, 12/01/30		100,000		94,811
Franklin County Hospital Facilities Revenue, Nationwide Children’s Hospital Project, Refunding, Series A, 5.00%, 11/01/28		100,000		125,208
Franklin County Revenue, Trinity Health Credit Group, Refunding, Series A, 5.00%, 12/01/31		100,000		125,814
Ohio State Air Quality Development Authority Exempt Facilities Revenue, Pratt Paper LLC Project, 3.75%, 1/15/28		100,000		98,732

				444,565

Pennsylvania 4.4%
Allegheny County Higher Education Building Authority University Revenue, Robert Morris University, UPMC Events Center Project, 5.00%, 10/15/26		100,000		107,006
Allentown Neighborhood Improvement Zone Development Authority Tax Revenue, City Center Project, 5.00%, 5/01/28		100,000		104,816
Franklin County IDAR, Menno Haven Inc. Project, Refunding, 5.00%, 12/01/28		100,000		99,438
Luzerne County IDA Revenue, Pennsylvania-American Water Co. Project, Refunding, 2.45%, 12/01/39		100,000		105,620
Pennsylvania State Economic Development Financing Authority Revenue, UPMC, Refunding, Series A, 3.375%, 11/15/33		125,000		130,496

				547,376



franklintempleton.com	Annual Report	19

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Intermediate Municipal Opportunities ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
South Carolina 0.9%
Patriots Energy Group Revenue, Gas System Improvement, Refunding, 4.00%, 6/01/33		100,000	$	112,712

Tennessee 2.8%
Lawrenceburg GO, Refunding, 2.50%, 6/01/27		100,000		102,964
Metropolitan Government of Nashville and Davidson County GO, Improvement, Refunding, 4.00%, 7/01/29		100,000		116,642
Metropolitan Nashville Airport Authority Revenue, Subordinate, Series B, 5.00%, 7/01/30		100,000		123,557

				343,163

Texas 5.4%
Arlington Higher Education Finance Corp. Education Revenue, Riverwalk Education Foundation Inc., PSF Guarantee, 4.00%, 8/15/33		100,000		118,781
Cedar Park GO, Williamson and Travis Counties, Refunding and Improvement, 5.00%, 2/15/24		100,000		113,821
Garland GO, Dallas Collin and Rockwall Counties, Refunding, 5.00%, 2/15/27		100,000		123,160
New Hope Cultural Education Facilities Finance Corp. Retirement Facility Revenue, Wesleyan Homes Inc. Project, Refunding, 4.00%, 1/01/29		100,000		90,205
New Hope Cultural Education Facilities Finance Corp. Student Housing Revenue, CHF-Collegiate Housing Island Campus LLC, Series A, 5.00%, 4/01/29		100,000		99,570
Port Freeport Revenue, Brazoria County, senior lien, Series A, 5.00%, 6/01/31		100,000		127,256

				672,793

Utah 1.7%
Provo GO, Refunding, 4.00%, 1/01/23		100,000		107,823
Utah State Building Ownership Authority Lease Revenue, State Facilities Master Lease Program, 2.50%, 5/15/27		100,000		105,037

				212,860

Vermont 0.9%
Vermont State Public Power Supply Authority Revenue, Swanton Peaking Facility Project, Refunding, Series A, 5.00%, 7/01/28		100,000		117,503

Virginia 0.8%
Peninsula Town Center CDA Special Obligation Revenue, Refunding, 4.50%, 9/01/28		100,000		102,507

Washington 4.7%
Seattle Drainage and Wastewater System Revenue, Improvement and Refunding, 4.00%, 7/01/28		100,000		117,949
Skagit County Public Hospital District No. 1 Revenue, Improvement, Skagit Regional Health, Refunding, 5.00%, 12/01/29		100,000		116,332
Spokane County School District No. 356 Central Valley GO, 5.00%, 12/01/26		100,000		123,629
University of Washington Revenue, General, Refunding, Series A, 5.00%, 12/01/26		100,000		123,701
Washington State Housing Finance Commission Revenue, Nonprofit Housing, Presbyterian Retirement Communities Northwest Project, Refunding, Series A, 5.00%, 1/01/34		100,000		101,771

				583,382

Wisconsin 5.7%
Brookfield GO, Waukesha County, Refunding, 3.00%, 12/01/25		115,000		124,121
PFA Retirement Facilities Revenue, Whitestone Retirement Facilities, first mortgage, Refunding, 4.00%, 3/01/27		75,000		72,401
PFAR, Retirement Facilities, Friends Homes, Refunding, 4.00%, 9/01/29		100,000		94,357
PFAR, Ultimate Medical Academy Project, Refunding, Series A, 5.00%, 10/01/29		100,000		116,675
The Economic Development Corporation of the Township of Green Lake, Michigan Variable Rate Demand Revenue and Revenue Refunding Bonds (Interlochen Center For The Arts Project), Series 2004, 0.75%, 6/01/34		200,000		200,000



20	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Intermediate Municipal Opportunities ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Wisconsin (continued)
Wisconsin Health and Educational Facilities Authority Revenue, St. Johns Communities Inc. Project, Series A, 4.00%, 9/15/27		100,000	$	97,356

				704,910

Total Investments (Cost $10,438,040) 83.6%				10,332,905
Other Assets, less Liabilities 16.4%				2,029,412

Net Assets 100.0%			$	12,362,317

See Abbreviations on page 37.

*The principal amount is stated in U.S. dollars unless otherwise indicated.

^aSee Note (7) regarding defaulted securities.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	21

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Municipal Bond ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year		$25.20		$	24.34		$	25.00


Income from investment operations^b:

Net investment income^c		0.46			0.67			0.30

Net realized and unrealized gains (losses)		1.02			0.85			(0.66	)


Total from investment operations		1.48			1.52			(0.36	)


Less distributions from net investment income		(0.61	)		(0.66	)		(0.30	)


Net asset value, end of year		$26.07		$	25.20		$	24.34


Total return^d		5.92%			6.38%			(1.45)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		1.00%			2.05%			1.71%

Expenses net of waiver and payments by affiliates		0.30%			0.30%			0.30%

Net investment income		1.77%			2.74%			2.11%

Supplemental data

Net assets, end of year (000’s)	$	28,674		$	8,820		$	7,302

Portfolio turnover rate^f		17.21%^g			21.21%			5.00%

^aFor the period August 31, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transaction that are executed as result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”)

^gPortfolio turnover rate excluding cash creations for the year end March 31, 2020 was as follows: 17.21%



22	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Liberty Municipal Bond ETF



	Principal Amount*		Value
Municipal Bonds 98.9%
Alabama 1.1%
Huntsville GO, wts., Series A, 5.00%, 5/01/37		250,000	$	317,850

Alaska 0.6%
Matanuska-Susitna Borough Lease Revenue, Goose Creek Correctional Center Project, Refunding, 4.00%, 9/01/30		150,000		164,820

Arizona 1.7%
Phoenix Civic Improvement Corp. Wastewater System Revenue, junior lien, Series A, 5.00%, 7/01/25		100,000		118,660
Salt River Project Agricultural Improvement and Power District Electric System Revenue, Salt River Project, Refunding, Series A, 5.00%, 1/01/39		190,000		233,347
Scottsdale Municipal Property Corp. Excise Tax Revenue, Refunding, 5.00%, 7/01/34		100,000		137,025

				489,032

California 6.8%
Burbank RDA Successor Agency Tax Allocation Revenue, Los Angeles County, Refunding, 3.00%, 12/01/32		100,000		108,214
California State GO, Various Purpose, 3.00%, 10/01/37		700,000		726,047
Clovis USD, GO, Capital Appreciation, Refunding, zero cpn., 8/01/35		200,000		125,956
Konocti USD, GO, Capital Appreciation, Election of 2004, Series C, AGMC Insured, zero cpn., 8/01/28		150,000		123,312
Los Angeles Department of Water and Power Revenue, Power System, Refunding, Series D, 5.00%, 7/01/31		400,000		506,860
Perris Joint Powers Authority Local Agency Revenue, CFD No. 2001-1, Improvement Area Nos. 4 and 5, CFD No. 2005-1, Improvement Area 4, Refunding, Series B, 5.00%, 9/01/37		100,000		111,782
South Tahoe Joint Powers Financing Authority Lease Revenue, Redevelopment Project Area No. 1, Series A, BAM Insured, 5.00%, 10/01/30		100,000		122,070
University of California Revenue, Limited Project, Series M, 5.00%, 5/15/34		100,000		121,641

				1,945,882

Colorado 2.7%
Adams and Weld Counties School District No. 27J Brighton GO, The City and County of Broomfield, 5.00%, 12/01/42		100,000		121,791
Cherry Creek School District No. 5 GO, Arapahoe County, Refunding, Series C, 5.00%, 12/15/35		100,000		124,304
Colorado Springs Utilities System Revenue, Refunding, Series A, 4.00%, 11/15/33		100,000		115,739
Colorado State Board of Governors University Enterprise System Revenue, Refunding, Series A, 4.00%, 3/01/35		100,000		114,220
Colorado Water Resources and Power Development Authority State Revolving Fund Revenue, Series A, 4.00%, 9/01/31		150,000		180,996
Greeley Water Revenue, Water Enterprise, 4.00%, 8/01/31		100,000		117,784

				774,834

Connecticut 1.2%
Connecticut State Health and Educational Facilities Authority Revenue, Yale New Haven Health Issue, Series B, 1.80%, 7/01/49		225,000		225,423
Connecticut State Special Tax Obligation Revenue, Series A, 5.00%, 8/01/31		100,000		114,870

				340,293

Delaware 1.1%
University of Delaware Revenue, 5.00%, 11/01/37		250,000		317,198

District of Columbia 2.3%
District of Columbia Income Tax Secured Revenue, Series A, 5.00%, 3/01/33		500,000		647,330

Florida 9.8%
Florida State Turnpike Authority Revenue, Refunding, Series A, 3.00%, 7/01/36		650,000		694,239
Fort Myers Utility System Revenue, Refunding, Series A, 4.00%, 10/01/34		500,000		584,105
Gainesville Utilities System Revenue, Series A, 5.00%, 10/01/36		100,000		121,947
Miami-Dade County Transit System Sales Surtax Revenue, Refunding, 4.00%, 7/01/36		600,000		692,496
Pasco County GO, Fire-Rescue Projects Improvements, Series B, 5.00%, 10/01/36		455,000		579,251
Sarasota County Utility System Revenue, Refunding, Series A, 5.00%, 10/01/34		100,000		127,410

				2,799,448



franklintempleton.com	Annual Report	23

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Municipal Bond ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Georgia 3.0%
Atlanta Airport Revenue, General, Series A, 5.00%, 7/01/34		175,000	$	216,134
Coweta County Water and Sewage Authority Revenue, Refunding, 4.00%, 6/01/35		100,000		117,089
Main Street Natural Gas Inc. Gas Supply Revenue, Series A, 4.00%, 4/01/48		100,000		103,082
Sub-series B, Monthly VRDN and Put, 1.809%, 4/01/48		425,000		423,325

				859,630

Hawaii 0.9%
Hawaii State Highway Revenue, Refunding, Series B, 5.00%, 1/01/29		210,000		253,907

Illinois 1.0%
Illinois State Finance Authority Revenue, Field Museum of Natural History, Refunding, Mandatory Put 9/01/22, 1.575%, 11/01/34		295,000		293,516

Indiana 1.0%
East Allen Multi School Building Corp. Revenue, Allen County, Ad Valorem Property Tax, first mortgage, 5.00%, 1/15/38		250,000		300,758

Kansas 0.4%
Douglas County USD No. 497 GO, Series A, 3.50%, 9/01/32		100,000		109,439

Louisiana 0.6%
Louisiana GO, Series B, 4.00%, 10/01/34		155,000		174,970

Maine 2.4%
Maine Municipal Bond Bank Revenue, Series C, 5.00%, 11/01/31		100,000		124,505
Maine State Housing Authority Mortgage Purchase Revenue, Series F, 3.85%, 11/15/33		500,000		555,855

				680,360

Maryland 0.8%
Maryland State GO, State and Local Facilities Loan, First Series, 5.00%, 3/15/32		100,000		129,484
Prince George’s County GO, Consolidated Public Improvement, Series A, 3.00%, 9/15/32		100,000		107,331

				236,815

Massachusetts 3.4%
Braintree GO, municipal Purpose Loan of 2019, Refunding, 4.00%, 6/01/32		250,000		294,082
Massachusetts Bay Transportation Authority Sales Tax Revenue, Sustainability Bonds, Subordinate, Series A, Subseries A-1, 5.00%, 7/01/33		100,000		122,284
Massachusetts State Development Finance Agency Revenue, Worcester Polytechnic Institute Issue, 4.00%, 9/01/44		400,000		430,892
University of Massachusetts Building Authority Revenue, Refunding, Senior Series A-1, 5.00%, 5/01/31		100,000		127,731

				974,989

Michigan 1.0%
Lansing Board of Water and Light Utility System Revenue, Series A, 5.00%, 7/01/35		225,000		291,454

Minnesota 3.3%
Center City Health Care Facilities Revenue, Hazelden Betty Ford Foundation Project, Refunding, 4.00%, 11/01/34		125,000		139,248
Minnesota State HFAR, State Appropriation Bonds, Housing Infrastructure, Series C, 4.00%, 8/01/34		250,000		287,462
Minnesota State Higher Education Facilities Authority Revenue, Macalester College, Refunding, 3.00%, 3/01/35		150,000		157,047
Northern Municipal Power Agency Electric System Revenue, Refunding, 5.00%, 1/01/36		100,000		118,280
Southern Minnesota Municipal Power Agency Power Supply System Revenue, Series A, 5.00%, 1/01/31		100,000		123,223
University of Minnesota GO, Series A, 5.00%, 9/01/42		100,000		121,163

				946,423



24	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Municipal Bond ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Missouri 2.5%
Missouri State Health and Educational Facilities Authority Health Facilities Revenue, St. Luke’s Episcopal-Presbyterian Hospitals, 4.00%, 12/01/35		525,000	$	599,398
Platte County School District Park Hill GO, Direct Deposit Program, 3.00%, 3/01/33		100,000		106,105

				705,503

Montana 0.4%
Cascade County High School District No. 1 Great Falls GO, School Building, 5.00%, 7/01/25		100,000		118,103

Nevada 2.4%
Clark County School District GO, Building, Refunding, Series A, 5.00%, 6/15/26		100,000		118,431
Las Vegas GO, Limited Tax, Various Purpose, Refunding, Series C, 4.00%, 6/01/32		500,000		574,360

				692,791

New Hampshire 0.4%
New Hampshire State Health and Education Facilities Authority Revenue, University System of New Hampshire Issue, Refunding, Series A, 5.00%, 7/01/27		100,000		124,809

New Jersey 2.7%
New Jersey State Transportation Trust Fund Authority Revenue, Transportation System, Capital Appreciation, Series C, AGMC Insured, zero cpn., 0.01%, 12/15/29		870,000		665,550
Pinelands Regional School District GO, Refunding, AGMC Insured, 3.00%, 8/01/27		100,000		108,045

				773,595

New Mexico 0.4%
Santa Fe Net Wastewater Utility System/ Environmental Services Gross Receipts Tax Improvement Revenue, Climate Bond Certified, Green Bonds, BAM Insured, 4.00%, 6/01/35		100,000		114,556

New York 6.8%
Long Island Power Authority Electric System Revenue, General, Series A, 5.00%, 9/01/28		300,000		372,642
MTA Revenue, Transportation, Green Bonds, Climate Bond Certified, Refunding, Series B, 5.00%, 11/15/28		100,000		111,428
New York City GO, Fiscal 2018, Series B, Subseries B-1, 4.00%, 10/01/36		100,000		112,738
New York City Transitional Finance Authority Revenue, Future Tax Secured, Subordinate, Fiscal 2018, Series B, Subseries B-1, 5.00%, 8/01/34		100,000		121,092
New York State Dormitory Authority Revenues, Rochester Institute of Technology, Series A, 5.00%, 7/01/39		300,000		373,083
New York State Dormitory Authority Revenues, Non-State Supported Debt, School Districts, Financing Program, Refunding, Series G, BAM Insured, 3.00%, 10/01/33		100,000		103,770
New York State Dormitory Authority Sales Tax Revenue, Series A, 5.00%, 3/15/33		600,000		747,972

				1,942,725

North Carolina 0.8%
University of North Carolina at Charlotte Revenue, General, Board of Governors, Refunding, 4.00%, 10/01/34		100,000		113,700
Winston-Salem City Water and Sewer System Revenue, 4.00%, 6/01/33		100,000		115,137

				228,837

Ohio 6.4%
Columbus GO, Series A, 3.00%, 4/01/28		100,000		110,233
Franklin County Hospital Facilities Revenue, Nationwide Children’s Hospital Project, Refunding, Series A, 3.125%, 11/01/33		50,000		52,818
Franklin County Sales Tax Revenue, Various Purpose, 5.00%, 6/01/43		450,000		554,661
Hudson City School District GO, School Improvement, 4.00%, 12/01/31		100,000		113,200
Licking Heights Local School District GO, School Facilities Construction and Improvement, Series B, 5.00%, 10/01/30		100,000		122,620
Northeast Regional Sewer District Revenue, Wastewater Improvement, Refunding, 3.00%, 11/15/35		500,000		542,380
Northeast Regional Sewer District Revenue, Wastewater Improvement, Refunding, 4.00%, 11/15/34		100,000		115,505



franklintempleton.com	Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Municipal Bond ETF (continued)



		Principal Amount*		Value
	Municipal Bonds (continued)
	Ohio (continued)
	Ohio State GO, Highway Capital Improvements, Full Faith and Credit/Highway User Receipts, Series S, 5.00%, 5/01/23		100,000	$	111,742
	Ohio State Water Development Authority Revenue, Community Assistance, Refunding, 4.00%, 12/01/30		100,000		123,182

					1,846,341

	Oklahoma 2.0%
	Oklahoma City GO, 4.00%, 3/01/33		500,000		565,870

	Oregon 1.3%
	Oregon State Housing and Community Services Department Mortgage Revenue, Series D, 3.15%, 7/01/32		95,000		100,127
	Portland Community College District GO, Multnomah Washington Yamhill Clackamas and Columbia Counties, Refunding, 5.00%, 6/15/25		100,000		119,070
	Washington County GO, Full Faith and Credit Obligations, Series B, 5.00%, 3/01/25		125,000		147,286

					366,483

	Pennsylvania 1.5%
	Pennsylvania State Economic Development Financing Authority Revenue, UPMC, Refunding, Series A, 3.375%, 11/15/33		125,000		130,496
	Pennsylvania State University Revenue, Series A, 5.00%, 9/01/38		250,000		313,890

					444,386

	Tennessee 3.9%
	Chattanooga Health Educational and Housing Facility Board Revenue, Commonspirit Health, Refunding, Series A-1, 5.00%, 8/01/25		250,000		284,870
	Kingsport GO, Series B, 3.00%, 3/01/35		130,000		134,437
	Lawrenceburg GO, Refunding, 2.50%, 6/01/27		100,000		102,964
	Metropolitan Government of Nashville and Davidson County GO, Improvement, Refunding, 4.00%, 7/01/29		100,000		116,642
	Metropolitan Government of Nashville and Davidson County Water and Sewer Revenue, Green Bonds, Subordinate, Refunding, Series A, 5.00%, 7/01/36		100,000		121,253
	Tennessee HDA Residential Finance Program Revenue, Issue 2019-2, Refunding, 1.95%, 1/01/26		250,000		251,825
	Tennessee State School Bond Authority Revenue, Higher Educational Facilities Second Program, Series A, 5.00%, 11/01/37		100,000		122,414

					1,134,405

	Texas 7.8%
	El Paso Water and Sewer Revenue, Refunding and Improvement, 4.00%, 3/01/33		100,000		113,868
	Fort Worth Water and Sewer Revenue, System, 5.00%, 2/15/32		265,000		330,927
a	Lamar Consolidated ISD, GO, Fort Bend County, School House, PSF Guarantee, 4.00%, 2/15/30		600,000		730,422
	Pflugerville ISD, GO, Series A, PSF Guarantee, 5.00%, 2/15/29		100,000		126,764
	Round Rock Utility Revenue, Refunding, 2.75%, 8/01/29		100,000		105,565
	Texas A&M University System Board of Regents Revenue, Financing System, Refunding, Series C, 5.00%, 5/15/33		100,000		123,463
	Texas State Water Development Board Revenue, State Water Implementation Fund, Master Trust, Series A, 4.00%, 10/15/33		100,000		116,988
	Water Implementation Fund, Series A, 4.00%, 10/15/35		500,000		581,340

					2,229,337

	Utah 2.7%
	Provo GO, Refunding, 4.00%, 1/01/23		100,000		107,823
	South Jordan Sales Tax Revenue, Refunding, 5.00%, 8/15/38		250,000		316,332
	Utah State Building Ownership Authority Lease Revenue, State Facilities Master Lease Program, 2.50%, 5/15/27		100,000		105,037
	Utah State Water Finance Agency Revenue, Loan Financing Program, Series B, 5.00%, 3/01/38		200,000		251,010

					780,202



26	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Municipal Bond ETF (continued)



	Principal Amount*		Value
Municipal Bonds (continued)
Virginia 3.6%
Arlington County GO, Public Improvement, 4.00%, 6/15/35		500,000	$	595,895
Henrico County Water and Sewer System Revenue, Refunding, 4.00%, 5/01/32		250,000		299,195
Virginia College Building Authority Educational Facilities Revenue, Public Higher Education Financing Program, Series A, 5.00%, 9/01/32		100,000		127,500

				1,022,590

Washington 7.8%
Cascase Schol District No. 228 GO, Chelan County, 5.00%, 12/01/35		455,000		542,210
King and Snohomish Counties School District No 417 Northshore GO, 5.00%, 12/01/31		100,000		126,336
Seattle Drainage and Wastewater Revenue, Refunding, 4.00%, 4/01/31		125,000		141,788
Seattle Municipal Light and Power Revenue, Improvement and Refunding, Series C, 4.00%, 9/01/35		700,000		798,819
Spokane County School District No. 356 Central Valley GO, 5.00%, 12/01/28		310,000		391,418
5.00%, 12/01/26		100,000		123,629
Washington Health Care Facilities Authority Revenue, MultiCare Health System, Refunding, Series B, 5.00%, 8/15/29		100,000		122,337

				2,246,537

Wisconsin 0.4%
Brookfield GO, Waukesha County, Refunding, 3.00%, 12/01/25		100,000		107,931

Total Investments (Cost $27,529,730) 98.9%				28,363,949
Other Assets, less Liabilities 1.1%				310,192

Net Assets 100.0%			$	28,674,141

See Abbreviations on page 37.

*The principal amount is stated in U.S. dollars unless otherwise indicated.

^aSecurity purchased on a when-issued basis. See Note 1(b)



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	27

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2020



	Franklin Liberty Intermediate Municipal Opportunities ETF			Franklin Liberty Municipal Bond ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	10,438,040		$	27,529,730

Value – Unaffiliated issuers	$	10,332,905		$	28,363,949
Cash		2,005,280			897,964
Receivables:
Interest		104,029			260,643
Affiliates		3,234			—

Total assets		12,445,448			29,522,556

Liabilities:
Payables:
Investment securities purchased		—			729,647
Management fees		—			257
Transfer agent fees		14,300			14,300
Distributions to shareholders		24,936			58,399
Custodian fees		1,133			1,134
Professional fees		28,417			28,815
Reports to shareholders		531			395
Registration and filing fees		7,933			9,584
Accrued expenses and other liabilities		5,881			5,884

Total liabilities		83,131			848,415

Net assets, at value	$	12,362,317		$	28,674,141

Net assets consist of:
Paid-in capital	$	12,632,298		$	28,260,188
Total distributable earnings (loss)		(269,981	)		413,953

Net assets, at value	$	12,362,317		$	28,674,141

Shares outstanding		500,000			1,100,000

Net asset value per share	$	24.72		$	26.07



28	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2020



	Franklin Liberty Intermediate Municipal Opportunities ETF			Franklin Liberty Municipal Bond ETF
Investment income:
Interest:
Unaffiliated issuers	$	238,204		$	447,976

Total investment income		238,204			447,976

Expenses:
Management fees (Note 3a)		57,375			135,216
Transfer agent fees		15,600			15,600
Custodian fees		1,236			1,238
Reports to shareholders		8,147			8,260
Registration and filing fees		7,152			8,916
Professional fees		40,281			41,070
Trustee fees (Note 3a)		977			2,171
Other		3,551			3,593

Total expenses		134,319			216,064
Expenses waived/paid by affiliates (Note 3c)		(106,779	)		(151,161	)

Net expenses		27,540			64,903

Net investment income		210,664			383,073

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(14,462	)		(195,163	)

Net realized gain (loss)		(14,462	)		(195,163	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(215,491	)		681,191

Net change in unrealized appreciation (depreciation)		(215,491	)		681,191

Net realized and unrealized gain (loss)		(229,953	)		486,028

Net increase (decrease) in net assets resulting from operations	$	(19,289	)	$	869,101



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	29

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty Intermediate Municipal Opportunities ETF						Franklin Liberty Municipal Bond ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	210,664		$	187,936		$	383,073		$	200,879
Net realized gain (loss)		(14,462	)		(95,411	)		(195,163	)		(68,214	)
Net change in unrealized appreciation (depreciation)		(215,491	)		266,104			681,191			339,144

Net increase (decrease) in net assets resulting from operations		(19,289	)		358,629			869,101			471,809

Distributions to shareholders		(240,496	)		(187,559	)		(528,067	)		(200,714	)

Capital share transactions: (Note 2)		5,132,298			—			19,513,471			1,246,717

Net increase (decrease) in net assets		4,872,513			171,070			19,854,505			1,517,812

Net assets:
Beginning of year		7,489,804			7,318,734			8,819,636			7,301,824

End of year	$	12,362,317		$	7,489,804		$	28,674,141		$	8,819,636



30	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

The following summarizes the Fund’s significant accounting policies.

a. Financial Instrument Valuation

The Funds have procedures to determine the fair value of financial instruments for which market prices are not reliable

or readily available. Under these procedures, the Funds primarily employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.

b. Securities Purchased on a When-Issued Basis

Certain or all Funds purchase securities on a when-issued basis, with payment and delivery scheduled for a future date. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Funds will generally purchase these securities with the intention of holding the securities, they may sell the securities before the settlement date. Sufficient assets have been segregated for these securities.

c. Income Taxes

d. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are



franklintempleton.com	Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

d. Security Transactions, Investment Income, Expenses and Distributions (continued)

determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are

determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

For the year ended March 31, 2019, distributions to shareholders were as follows:


	Franklin Liberty Intermediate Municipal Opportunities ETF			Franklin Liberty Municipal Bond ETF
Distributions from net investment income	$	(187,559	)	$	(200,714	)

e. Insurance

The scheduled payments of interest and principal for each insured municipal security in the Trust are insured by either a new issue insurance policy or a secondary insurance policy. Some municipal securities in the Funds are secured by collateral guaranteed by an agency of the U.S. government. Depending on the type of coverage, premiums for insurance are either added the cost basis of the security or paid by a third party.

Insurance companies typically insure municipal bonds that tend to be of very high quality, with the majority of underlying municipal bonds rated A or better. However, an event involving an insurer could have an adverse effect on the value of the securities insured by that insurance company. There can be no assurance the insurer will be able to fulfill its obligations under the terms of the policy.

f. Accounting Estimates

g. Guarantees and Indemnifications

2. Shares of Beneficial Interest



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)

amounts less than one Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities). For the year ended March 31, 2020, all Creation Unit transactions were made in cash.

At March 31, 2020, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin Liberty Intermediate Municipal Opportunities ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		250,000		$	6,287,252			200,000		$	4,872,980
Shares redeemed		(50,000	)		(1,154,954	)		(200,000	)		(4,872,980	)

Net increase (decrease)		200,000		$	5,132,298			—		$	—



	Franklin Liberty Municipal Bond ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares		Amount
Shares sold		800,000		$	20,827,910			50,000	$	1,246,717
Shares redeemed		(50,000	)		(1,314,439	)		—		—

Net increase (decrease)		750,000		$	19,513,471			50,000	$	1,246,717

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal Underwriter



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

a. Management Fees

The Funds pay an investment management fee to Advisers based on the daily net assets of each of the Funds as follows:



Annualized Fee Rate		Net Assets
0.625%		Up to and including $100 million
0.500%		Over $100 million, up to and including $250 million
0.450%		Over $250 million, up to and including $7.5 billion
0.440%		Over $7.5 billion, up to and including $10 billion
0.430%		Over $10 billion, up to and including $12.5 billion
0.420%		Over $12.5 billion, up to and including $15 billion
0.400%		Over $15 billion, up to and including $17.5 billion
0.380%		Over $17.5 billion, up to and including $20 billion
0.360%		In excess of $20 billion

For the year ended March 31, 2020, each Fund’s gross effective investment management fee rate based on average daily net assets was as follows:


		Annualized Fee Rate
Franklin Liberty Intermediate Municipal Opportunities ETF		0.625%
Franklin Liberty Municipal Bond ETF		0.625%

b. Administrative Fees

c. Waiver and Expense Reimbursements

Advisers have contractually agreed in advance to waive or limit its fees and to assume as their own expense certain expenses otherwise payable by the Funds so that the expenses (including acquired fund fees and expenses) for each of the Funds does not exceed 0.30%, based on the average net assets (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2020. Total expenses waived or paid are not subject to recapture subsequent to the Funds’ fiscal year end.

d. Other Affiliated Transactions

At March 31, 2020, the shares of the Funds were owned by the following entities:



Fund	Shares		Percentage of Outstanding Shares^a
Franklin Liberty Municipal Bond ETF
Franklin Federal Limited-Term		715,000		65.0%

Franklin Liberty Intermediate Municipal Opportunities ETF
Franklin High Yield Tax-Free Income		100,000		20.0%
Franklin Templeton SMACS Series		40,000		8.0%

		140,000		28.0%

^aInvestment activities of significant shareholders could have a material impact on the Funds.



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2020, the capital loss carryforwards were as follows:



	Franklin Liberty Intermediate Municipal Opportunities ETF		Franklin Liberty Municipal Bond ETF
Capital loss carryforwards not subject to expiration:
Short term	$	64,623	$	217,482
Long term		71,840		65,114

Total capital loss carryforwards	$	136,463	$	282,596

The tax character of distributions paid during the year ended March 31, 2020 and 2019 were as follows:



	Franklin Liberty Intermediate Municipal Opportunities ETF				Franklin Liberty Municipal Bond ETF

	2020		2019		2020		2019
Distributions paid from:
Tax exempt income	$	240,496	$	187,559	$	528,067	$	200,714
Ordinary income		—		—		—		—

Distributions paid from ordinary income	$	240,496	$	187,559	$	528,067	$	200,714

At March 31, 2020, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Franklin Liberty Intermediate Municipal Opportunities ETF			Franklin Liberty Municipal Bond ETF
Cost of investments	$	10,450,263		$	27,654,365

Unrealized appreciation	$	255,052		$	831,207
Unrealized depreciation		(372,410	)		(121,623	)

Net unrealized appreciation (depreciation)	$	(117,358	)	$	709,584

Distributions earning- undistrbuted tax except income	$	8,776		$	45,363

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2020, were as follows:



	Franklin Liberty Intermediate Municipal Opportunities ETF		Franklin Liberty Municipal Bond ETF
Purchases	$	6,507,997	$	23,050,171
Sales	$	3,201,283	$	3,611,139



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FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

6. Novel Coronavirus Pandemic

7. Credit Risk and Defaulted Securities

At March 31, 2020, Franklin Liberty Intermediate Municipal Opportunities ETF had 23.79% of its portfolio invested in high yield securities, or other securities rated below investment grade and unrated securities, if any. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.

The Fund may purchase the pre-default or defaulted debt of distressed companies. Distressed companies are financially troubled and could be or are already involved in financial restructuring or bankruptcy. Risks associated with purchasing these securities include the possibility that the bankruptcy or other restructuring process takes longer than expected, or that distributions in restructuring are less than anticipated, either or both of which may result in unfavorable consequences to the Fund. If it becomes probable that the income on debt securities, including those distressed companies, will not be collected, the Fund discontinues accruing income and recognizes an adjustment for uncollectible interest. At March 31, 2020, the aggregate long value of distressed company securities for which interest recognition has been discontinued representing 0.71% of the Fund’s net assets. For information as to specific securities, see the accompanying Statement of Investments.

8. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

At March 31, 2020, all of the Fund’s investments in financial instruments carried at fair value were valued using Level 2 inputs.

9. New Accounting Pronouncement

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, Reference Rate Reform (Topic 848)—Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in the ASU provides optional temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank-offered based reference rates as of the end of 2021. The ASU is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying this ASU.

10. Subsequent Events

The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.



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NOTES TO FINANCIAL STATEMENTS

Abbreviations


Selected Portfolio
AGMC		Assured Guaranty Municipal Corp.
BAM		Build America Mutual Assurance Co.
CDA		Community Development Authority/Agency
CFD		Community Facilities District
EDC		Economic Development Corp.
EDR		Economic Development Revenue
GO		General Obligation
ID		Improvement District
IDA		Industrial Development Authority/Agency
IDAR		Industrial Development Authority Revenue
ISD		Independent School District
MFHR		Multi-Family Housing Revenue
MTA		Metropolitan Transit Authority
PFA		Public Financing Authority
PSF		Permanent School Fund
RDA		Redevelopment Agency/Authority
USD		Unified/Union School District



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FRANKLIN TEMPLETON ETF TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin Liberty Intermediate Municipal Opportunities ETF and Franklin Liberty Municipal Bond ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin Liberty Intermediate Municipal Opportunities ETF and Franklin Liberty Municipal Bond ETF (the “Funds”) as of March 31, 2020, the related statements of operations for the year ended March 31, 2020, the statements of changes in net assets for each of the two years in the period ended March 31, 2020, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2020, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended March 31, 2020 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

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 March 31, 2020 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 opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 19, 2020

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.



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Tax information (unaudited)

Under Section 852(b)(5)(A) of the Internal Revenue Code, the Funds hereby report 100% of the distributions paid from net investment income as exempt-interest dividends for the fiscal year ended March 31, 2020. A portion of the Funds’ exempt-interest dividends may be subject to the federal alternative minimum tax. By mid-February 2021, shareholders will be notified of amounts for use in preparing their 2020 income tax returns.



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FRANKLIN TEMPLETON ETF TRUST

Board Members and Officers

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee and Trustee	Since 2016	44	Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and FlipKart Limited (2019-present) (eCommerce company); formerly, CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since January 2020	44	Fluor Corporation (construction and engineering) (2014-present), IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present) and Focus Financial Partner, LLC (financial services) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	44	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); and formerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).



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Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	49	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, President and Director, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; and formerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Interim Chief Compliance Officer	Since January 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 41 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	Vice President – AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 41 of the investment companies in Franklin Templeton.



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FRANKLIN TEMPLETON ETF TRUST

Interested Board Members and Officers (continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer – Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; and formerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since May 2019	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of two of the investment companies in Franklin Templeton.

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 41 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.

The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request.

Shareholders may call (800) DIAL BEN/342-5236 to request the SAI.



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Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

Premium/Discount Information



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To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2020

LOGO


Franklin FTSE Asia ex Japan ETF		Franklin FTSE Japan ETF
Franklin FTSE Australia ETF		Franklin FTSE Japan Hedged ETF
Franklin FTSE Brazil ETF		Franklin FTSE Latin America ETF
Franklin FTSE Canada ETF		Franklin FTSE Mexico ETF
Franklin FTSE China ETF		Franklin FTSE Russia ETF
Franklin FTSE Europe ETF		Franklin FTSE Saudi Arabia ETF
Franklin FTSE Europe Hedged ETF		Franklin FTSE South Africa ETF
Franklin FTSE France ETF		Franklin FTSE South Korea ETF
Franklin FTSE Germany ETF		Franklin FTSE Switzerland ETF
Franklin FTSE Hong Kong ETF		Franklin FTSE Taiwan ETF
Franklin FTSE India ETF		Franklin FTSE United Kingdom ETF
Franklin FTSE Italy ETF

Franklin Templeton



Contents

Annual Report

Economic and Market Overview			2
Franklin FTSE Asia ex Japan ETF			3
Franklin FTSE Australia ETF			9
Franklin FTSE Brazil ETF			15
Franklin FTSE Canada ETF			21
Franklin FTSE China ETF			27
Franklin FTSE Europe ETF			33
Franklin FTSE Europe Hedged ETF			39
Franklin FTSE France ETF			45
Franklin FTSE Germany ETF			51
Franklin FTSE Hong Kong ETF			57
Franklin FTSE India ETF			63
Franklin FTSE Italy ETF			69
Franklin FTSE Japan ETF			75
Franklin FTSE Japan Hedged ETF			81
Franklin FTSE Latin America ETF			87

Visit franklintempleton.com/investor/investments-and-solutions/investment-options/etfs/ for fund updates and documents.


Franklin FTSE Mexico ETF			93
Franklin FTSE Russia ETF			99
Franklin FTSE Saudi Arabia ETF			105
Franklin FTSE South Africa ETF			111
Franklin FTSE South Korea ETF			117
Franklin FTSE Switzerland ETF			123
Franklin FTSE Taiwan ETF			129
Franklin FTSE United Kingdom ETF			135
Financial Highlights and Statements of Investments			141
Financial Statements			298
Notes to Financial Statements			322
Report of Independent Registered Public Accounting Firm			352
Tax Information			354
Board Members and Officers			356
Shareholder Information			359


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



franklintempleton.com	Not part of the annual report	1

ANNUAL REPORT

Economic and Market Overview

Global developed and emerging market equities, as measured by the FTSE All-World Index, declined significantly during the 12 months under review. Stocks generally rose during the period’s first nine months, but fell sharply in the first three months of 2020 as countries around the world imposed lockdowns and stay-at-home measures, which impacted many businesses, in an effort to slow the spread of the novel coronavirus (COVID-19). Concerns about global supply chain disruptions, business and personal restrictions, and subdued consumer spending drove many investors to sell equity holdings in favor of perceived safe investments such as government bonds and cash.

In the eurozone, economic growth had slowed considerably by the end of 2019, raising concerns that the region was on

the verge of a recession. As the magnitude of the disruption caused by the COVID-19 pandemic became apparent, some analysts forecasted a deep economic contraction in 2020’s first and second quarters. Several European countries were impacted substantially by the pandemic, particularly Italy and Spain. European developed market equities, as measured by the FTSE Developed Europe Index, declined significantly for the period, as gains resulting from easing trade tensions and a Brexit agreement were more than offset by the market downturn in 2020’s first quarter.

Asia Pacific developed and emerging market equities, as measured by the FTSE Asia Pacific Index, also declined significantly during the 12-month period. Before the pandemic, Asian stocks advanced, aided by easing trade tensions and the eventual U.S.-China phase one trade agreement. However, following the onset of the pandemic, economic activity in Asia slowed dramatically as many businesses temporarily halted operations in heavily affected countries and manufacturing activity plummeted in the region’s major economies, notably China, South Korea and Japan. In addition, export-focused Asia Pacific economies were hurt by a contraction in demand from other parts of the world.

Emerging market stocks, as measured by the FTSE Emerging Index, rose for the period’s first nine months, but declined substantially during the rest of the 12-month period in the wake of the COVID-19 pandemic. A sharp decline in prices for oil and other natural resources also hurt emerging market economies reliant on these exports.

1. Source: U.S. Bureau of Labor Statistics.



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Franklin FTSE Asia ex Japan ETF

This annual report for Franklin FTSE Asia ex Japan ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -14.85% based on market price and -13.88% based on net asset value. In comparison, the FTSE Asia ex Japan Capped Index posted a -13.87% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Asia ex Japan Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Banks		12.2%
Internet & Direct Marketing Retail		9.9%
Interactive Media & Services		8.0%
Semiconductors & Semiconductor Equipment		7.0%
Technology Hardware, Storage & Peripherals		6.1%
Insurance		5.9%
Real Estate Management & Development		4.7%
Oil, Gas & Consumable Fuels		3.4%
Electronic Equipment, Instruments & Components		2.6%
Food Products		2.2%

intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

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

2. Source: FactSet.

The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 142.



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FRANKLIN FTSE ASIA EX JAPAN ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Alibaba Group Holding Ltd., ADR Internet & Direct Marketing Retail, China		7.8%
Tencent Holdings Ltd. Interactive Media & Services, China		6.4%
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		4.9%
Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		4.8%
AIA Group Ltd. Insurance, Hong Kong		2.5%
China Construction Bank Corp., A, H Banks, China		1.7%
Ping An Insurance (Group) Co. of China Ltd., H Insurance, China		1.2%
Industrial & Commercial Bank of China Ltd., H Banks, China		1.2%
Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India		1.0%
Meituan Dianping, B, Reg S Internet & Direct Marketing Retail, China		1.0%

Manager’s Discussion

For the fiscal year ended March 31, 2020, the only sector that contributed to the Fund’s absolute performance was information technology. Individual holdings that lifted the Fund’s absolute return included Taiwan Semiconductor Manufacturing, Alibaba Group Holding and Meituan Dianping.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, industrials and real estate. Individual holdings that hindered the Fund’s absolute return included Baidu, Axis Bank and Housing Development Finance.

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


Top 10 Countries

3/31/20

	% of Total Net Assets
China		43.6%
Taiwan		13.3%
South Korea		12.7%
Hong Kong		9.3%
India		9.0%
Singapore		3.4%
Thailand		2.6%
Malaysia		2.4%
Indonesia		1.6%
Philippines		1.0%

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team

CFA^® is a trademark owned by CFA Institute.



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FRANKLIN FTSE ASIA EX JAPAN ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-13.88%		-14.85%		-13.88%		-14.85%
Since Inception (2/6/18)		-18.52%		-19.11%		-9.11%		-9.41%

See page 7 for Performance Summary footnotes.



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FRANKLIN FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

Total return represents the change in value of an investment over the period shown. It includes any applicable maximum sales charge, Fund expenses, account fees and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

2/6/18–3/31/20

LOGO

See page 7 for Performance Summary footnotes.



6	Annual Report	franklintempleton.com

FRANKLIN FTSE ASIA EX JAPAN ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.504588

Total Annual Operating Expenses⁵

0.19%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.

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



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FRANKLIN FTSE ASIA EX JAPAN ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	907.20	$	0.91	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



8	Annual Report	franklintempleton.com

Franklin FTSE Australia ETF

This annual report for Franklin FTSE Australia ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -24.87% based on market price and -26.23% based on net asset value. In comparison, the FTSE Australia Capped Index posted a -26.24% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 11.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Australia Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Banks		22.5%
Metals & Mining		15.4%
Biotechnology		11.1%
Equity Real Estate Investment Trusts (REITs)		5.8%
Food & Staples Retailing		5.4%
Capital Markets		4.3%
Transportation Infrastructure		3.9%
Oil, Gas & Consumable Fuels		3.7%
Insurance		3.7%
Multiline Retail		3.4%

Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 174.



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FRANKLIN FTSE AUSTRALIA ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
CSL Ltd. Biotechnology, Australia		11.1%
Commonwealth Bank of Australia Banks, Australia		9.1%
BHP Group Ltd. Metals & Mining, Australia		7.1%
Westpac Banking Corp. Banks, Australia		4.9%
National Australia Bank Ltd. Banks, Australia		4.1%
Australia & New Zealand Banking Group Ltd. Banks, Australia		4.0%
Woolworths Group Ltd. Food & Staples Retailing, Australia		3.7%
Wesfarmers Ltd. Multiline Retail, Australia		3.2%
Transurban Group Transportation Infrastructure, Australia		2.7%
Rio Tinto Ltd. Metals & Mining, Australia		2.6%

Manager’s Discussion

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, materials and real estate. Individual holdings that hindered the Fund’s absolute return included Westpac Banking, Commonwealth Bank of Australia and Australia & New Zealand Banking Group.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



10	Annual Report	franklintempleton.com

FRANKLIN FTSE AUSTRALIA ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-26.23%		-24,87%		-26.23%		-24.87%
Since Inception (11/2/17)		-24.85%		-23.13%		-11.18%		-10.35%

See page 13 for Performance Summary footnotes.



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FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 13 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN FTSE AUSTRALIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$1.138785

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE AUSTRALIA ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	698.70	$	0.38	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



14	Annual Report	franklintempleton.com

Franklin FTSE Brazil ETF

This annual report for Franklin FTSE Brazil ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -40.94% based on market price and -41.69% based on net asset value. In comparison, the FTSE Brazil Capped Index posted a -41.54% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 17.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Brazil Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Banks		22.3%
Metals & Mining		12.8%
Oil, Gas & Consumable Fuels		10.3%
Capital Markets		5.9%
Electric Utilities		5.9%
Multiline Retail		5.1%
Beverages		3.9%
Road & Rail		3.1%
Food & Staples Retailing		3.0%
Health Care Providers & Services		3.0%

Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 177.



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FRANKLIN FTSE BRAZIL ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Vale SA Metals & Mining, Brazil		11.1%
Itau Unibanco Holding SA Banks, Brazil		9.0%
Petroleo Brasileiro SA Oil, Gas & Consumable Fuels, Brazil		8.8%
Banco Bradesco SA Banks, Brazil		7.7%
B3 SA – Brasil Bolsa Balcao Capital Markets, Brazil		5.3%
Ambev SA Beverages, Brazil		3.9%
Itausa – Investimentos Itau SA Banks, Brazil		2.9%
Suzano SA Paper & Forest Products, Brazil		2.1%
Lojas Renner SA Multiline Retail, Brazil		2.0%
Magazine Luiza SA Multiline Retail, Brazil		1.9%

Manager’s Discussion

For the fiscal year ended March 31, 2020, no sectors contributed to the Fund’s absolute performance. Individual holdings that lifted the Fund’s absolute return included GOL Linhas Aereas Inteligentes, TOTVS and Eneva.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, energy and materials. Individual holdings that hindered the Fund’s absolute return included Petrobras Brasileiro, Banco Bradesco and Itau Unibanco Holding.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



16	Annual Report	franklintempleton.com

FRANKLIN FTSE BRAZIL ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-41.69%		-40.94%		-41.69%		-40.94%
Since Inception (11/3/17)		-35.69%		-35.59%		-16.77%		-16.71%

See page 19 for Performance Summary footnotes.



franklintempleton.com	Annual Report	17

FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/3/17–3/31/20

LOGO

See page 19 for Performance Summary footnotes.



18	Annual Report	franklintempleton.com

FRANKLIN FTSE BRAZIL ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$1.000788

Total Annual Operating Expenses⁵

0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sector, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Brazilian issuers involve risks that are specific to Brazil, including certain legal, regulatory, political and economic risks. The Brazilian economy has experienced in the past, and may continue to experience, periods of high inflation rates and political unrest. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE BRAZIL ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	567.90	$	0.94	$	1,023.80	$	1.21		0.24	%

2. Reflects expenses after fee waivers and expense reimbursements.



20	Annual Report	franklintempleton.com

Franklin FTSE Canada ETF

This annual report for Franklin FTSE Canada ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -16.87% based on market price and -17.25% based on net asset value. In comparison, the FTSE Canada Capped Index posted a -17.45% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 23.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Canada Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Banks		28.3%
Oil, Gas & Consumable Fuels		15.5%
Road & Rail		8.5%
Insurance		7.7%
Metals & Mining		7.5%
IT Services		5.4%
Food & Staples Retailing		4.3%
Capital Markets		4.1%
Electric Utilities		2.3%
Commercial Services & Supplies		2.0%

Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 181.



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FRANKLIN FTSE CANADA ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Royal Bank of Canada Banks, Canada		8.8%
The Toronto-Dominion Bank Banks, Canada		7.6%
Enbridge, Inc. Oil, Gas & Consumable Fuels, Canada		5.7%
Canadian National Railway Co. Road & Rail, Canada		5.5%
Bank of Nova Scotia Banks, Canada		4.9%
Shopify, Inc., A IT Services, Canada		4.1%
TC Energy Corp. Oil, Gas & Consumable Fuels, Canada		4.1%
Brookfield Asset Management, Inc., A Capital Markets, Canada		3.9%
Barrick Gold Corp. Metals & Mining, Canada		3.2%
Bank of Montreal Banks, Canada		3.2%

Manager’s Discussion

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, energy and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Suncor Energy, Royal Bank of Canada and Toronto Dominion Bank.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



22	Annual Report	franklintempleton.com

FRANKLIN FTSE CANADA ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-17.25%		-16.87%		-17.25%		-16.87%
Since Inception (11/2/17)		-17.05%		-16.55%		-7.47%		-7.24%

See page 25 for Performance Summary footnotes.



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FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 25 for Performance Summary footnotes.



24	Annual Report	franklintempleton.com

FRANKLIN FTSE CANADA ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.604562

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE CANADA ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	772.10	$	0.40	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



26	Annual Report	franklintempleton.com

Franklin FTSE China ETF

This annual report for Franklin FTSE China ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -6.55% based on market price and -5.64% based on net asset value. In comparison, the FTSE China Capped Index posted a -5.42% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 29.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE China Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Internet & Direct Marketing Retail		23.2%
Interactive Media & Services		17.2%
Banks		12.5%
Insurance		5.3%
Real Estate Management & Development		5.3%
Oil, Gas & Consumable Fuels		2.6%
Wireless Telecommunication Services		2.1%
Pharmaceuticals		2.1%
Capital Markets		2.0%
Diversified Consumer Services		1.9%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 184.



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FRANKLIN FTSE CHINA ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Alibaba Group Holding Ltd., ADR Internet & Direct Marketing Retail, China		18.1%
Tencent Holdings Ltd. Interactive Media & Services, China		14.8%
China Construction Bank Corp., A, H Banks, China		4.0%
Ping An Insurance (Group) Co. of China Ltd., H Insurance, China		2.9%
Industrial & Commercial Bank of China Ltd., H Banks, China		2.8%
Meituan Dianping, B, Reg S Internet & Direct Marketing Retail, China		2.2%
China Mobile Ltd. Wireless Telecommunication Services, China		2.1%
JD.com Inc., ADR Internet & Direct Marketing Retail, China		1.7%
Bank of China Ltd., A, H Banks, China		1.7%
Baidu Inc., ADR Interactive Media & Services, China		1.5%

Manager’s Discussion

For the fiscal year ended March 31, 2020, the sectors that contributed most to the Fund’s absolute performance were consumer discretionary, health care and consumer staples. Individual holdings that lifted the Fund’s absolute return included Alibaba Group Holding, Meituan Dianping and JD.com.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, communication services and energy. Individual holdings that hindered the Fund’s absolute return included Baidu, China Mobile and CNOOC.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



28	Annual Report	franklintempleton.com

FRANKLIN FTSE CHINA ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-5.64%		-6.55%		-5.64%		-6.55%
Since Inception (11/2/17)		-7.54%		-7.71%		-3.20%		-3.28%

See page 31 for Performance Summary footnotes.



franklintempleton.com	Annual Report	29

FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 31 for Performance Summary footnotes.



30	Annual Report	franklintempleton.com

FRANKLIN FTSE CHINA ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.488601

Total Annual Operating Expenses⁵

0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Chinese issuers involve risks that are specific to China, including certain legal, regulatory, political and economic risks. China may be subject to considerable degrees of economic, political and social instability. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE CHINA ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	1,032.20	$	0.97	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



32	Annual Report	franklintempleton.com

Franklin FTSE Europe ETF

This annual report for Franklin FTSE Europe ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -15.34% based on market price and -15.44% based on net asset value. In comparison, the FTSE Developed Europe Capped Index posted a -15.61% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 35.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation.


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Pharmaceuticals		12.5%
Banks		6.8%
Food Products		5.5%
Oil, Gas & Consumable Fuels		5.5%
Insurance		5.5%
Textiles, Apparel & Luxury Goods		3.9%
Chemicals		3.8%
Electric Utilities		2.7%
Personal Products		2.7%
Capital Markets		2.6%

Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 202.



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FRANKLIN FTSE EUROPE ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		4.1%
Roche Holding AG Pharmaceuticals, Switzerland		3.2%
Novartis AG Pharmaceuticals, Switzerland		2.4%
Royal Dutch Shell PLC, A, B Oil, Gas & Consumable Fuels, United Kingdom		1.9%
AstraZeneca PLC Pharmaceuticals, United Kingdom		1.6%
HSBC Holdings PLC Banks, United Kingdom		1.6%
SAP SE Software, Germany		1.5%
ASML Holding NV Semiconductors & Semiconductor Equipment, Netherlands		1.5%
Novo Nordisk AS, B Pharmaceuticals, Denmark		1.4%
Sanofi Pharmaceuticals, France		1.3%

Manager’s Discussion

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, industrials and energy. Individual holdings that hindered the Fund’s absolute return included Royal Dutch Shell, Airbus and BP.

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


Top 10 Countries

3/31/20

	% of Total Net Assets
United Kingdom		24.3%
Switzerland		17.2%
France		16.1%
Germany		13.3%
Netherlands		5.1%
Sweden		4.5%
Spain		4.1%
Italy		3.6%
Denmark		3.4%
Finland		1.9%

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



34	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-15.44%		-15.34%		-15.44%		-15.34%
Since Inception (11/2/17)		-18.77%		-18.60%		-8.27%		-8.19%

See page 37 for Performance Summary footnotes.



franklintempleton.com	Annual Report	35

FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 37 for Performance Summary footnotes.



36	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.762795

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE EUROPE ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	823.90	$	0.41	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



38	Annual Report	franklintempleton.com

Franklin FTSE Europe Hedged ETF

This annual report for Franklin FTSE Europe Hedged ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -11.43% based on market price and -10.67% based on net asset value. In comparison, the FTSE Developed Europe Capped Hedged Index posted a -10.81% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 41.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe Capped Hedged Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Pharmaceuticals		12.3%
Banks		6.8%
Food Products		5.5%
Oil, Gas & Consumable Fuels		5.4%
Insurance		5.4%
Textiles, Apparel & Luxury Goods		3.8%
Chemicals		3.7%
Electric Utilities		2.7%
Personal Products		2.6%
Capital Markets		2.6%

correlation. Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. We intend to enter into monthly foreign currency forward contracts and/or currency futures contracts designed to offset the Fund’s exposure to the component currencies, in order to replicate the hedge impact incorporated in the calculation of the Underlying Index. The Fund’s exposure to foreign currency forward contracts and currency futures contracts is based on the aggregate

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

2. Source: FactSet. The index is unmanaged and includes reinvestment of any income or distributions (after the deduction of certain withholding taxes). It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index.

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

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



franklintempleton.com	Annual Report	39

FRANKLIN FTSE EUROPE HEDGED ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		4.0%
Roche Holding AG Pharmaceuticals, Switzerland		3.1%
Novartis AG Pharmaceuticals, Switzerland		2.4%
Royal Dutch Shell PLC, A, B Oil, Gas & Consumable Fuels, United Kingdom		1.8%
AstraZeneca PLC Pharmaceuticals, United Kingdom		1.6%
HSBC Holdings PLC Banks, United Kingdom		1.5%
SAP SE Software, Germany		1.5%
ASML Holding NV Semiconductors & Semiconductor Equipment, Netherlands		1.4%
Novo Nordisk AS, B Pharmaceuticals, Denmark		1.3%
Sanofi Pharmaceuticals, France		1.3%

exposure of the Fund to the component currencies. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

What is a currency forward contract?

What is a futures contract?

A futures contract is an agreement between the Fund and a counterparty made through a U.S. or foreign futures exchange to buy or sell an underlying instrument or asset at a specific price on a future date.

Manager’s Discussion

For the fiscal year ended March 31, 2020, the only sector that contributed to the Fund’s absolute performance was health care. Individual holdings that lifted the Fund’s absolute return included Roche Holding, ASML Holding and Nestle. The Fund’s use of currency forward contracts—designed to offset the Fund’s exposure to the component currencies and to replicate the hedge impact incorporated in the calculation of the Underlying Index—also contributed to the Fund’s absolute performance. However, one cannot expect the same result in future periods.


Top 10 Countries

3/31/20

	% of Total Net Assets
United Kingdom		24.0%
Switzerland		17.0%
France		15.9%
Germany		13.2%
Netherlands		5.1%
Sweden		4.5%
Spain		4.1%
Italy		3.5%
Denmark		3.4%
Finland		1.9%

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



40	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE HEDGED ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-10.67%		-11.43%		-10.67%		-11.43%
Since Inception (11/2/17)		-8.84%		-9.72%		-3.77%		-4.16%

See page 43 for Performance Summary footnotes.



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FRANKLIN FTSE EUROPE HEDGED ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 43 for Performance Summary footnotes.



42	Annual Report	franklintempleton.com

FRANKLIN FTSE EUROPE HEDGED ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$1.471139

Total Annual Operating Expenses⁵

0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of European issuers involve risks that are specific to Europe, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio which may result in significant volatility and cause the Fund to participate in losses on an amount that exceeds the Fund’s initial investment. The Fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. While the Fund’s use of foreign currency forward contracts and/or currency futures contracts is designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund’s exposure to the component currencies. The return of these currency hedging instruments will not perfectly offset the actual fluctuations between the component currencies and the U.S. dollar. Currency hedges are sometimes subject to imperfect matching between the derivative instruments and the currencies that the derivative instruments intend to hedge, and there can be no assurance that the Fund’s hedging transactions will be effective. The Fund’s exposure to the component currencies may not be fully hedged at all times. Because the Fund’s currency hedge is generally reset on a monthly basis, currency risk can develop or increase intra-month. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



franklintempleton.com	Annual Report	43

FRANKLIN FTSE EUROPE HEDGED ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	829.00	$	0.41	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



44	Annual Report	franklintempleton.com

Franklin FTSE France ETF

This annual report for Franklin FTSE France ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -18.28% based on market price and -17.08% based on net asset value. In comparison, the FTSE France Capped Index posted a -17.46% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 47.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE France Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Textiles, Apparel & Luxury Goods		15.4%
Pharmaceuticals		8.1%
Oil, Gas & Consumable Fuels		7.7%
Aerospace & Defense		6.2%
Chemicals		5.4%
Personal Products		5.3%
Electrical Equipment		5.2%
Banks		4.5%
Construction & Engineering		4.2%
Food Products		3.2%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 230.



franklintempleton.com	Annual Report	45

FRANKLIN FTSE FRANCE ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Sanofi Pharmaceuticals, France		8.0%
Total SA Oil, Gas & Consumable Fuels, France		7.7%
LVMH Moet Hennessy Louis Vuitton SE Textiles, Apparel & Luxury Goods, France		7.7%
L’Oreal SA Personal Products, France		5.3%
Air Liquide SA Chemicals, France		4.9%
Schneider Electric SE Electrical Equipment, France		3.8%
Kering SA Textiles, Apparel & Luxury Goods, France		3.2%
Vinci SA Construction & Engineering, France		3.2%
Danone SA Food Products, France		3.2%
Airbus SE Aerospace & Defense, France		3.0%

Manager’s Discussion

For the fiscal year ended March 31, 2020, the only sector that contributed to the Fund’s absolute performance was materials. Individual holdings that lifted the Fund’s absolute return included Air Liquide, LVMH Moet Hennessy Louis Vuitton and STMicroelectronics.

For the same period, the sectors that detracted most from the Fund’s absolute performance were industrials, financials and energy. Individual holdings that hindered the Fund’s absolute return included Airbus, Total and BNP Paribas.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



46	Annual Report	franklintempleton.com

FRANKLIN FTSE FRANCE ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-17.08%		-18.28%		-17.08%		-18.28%
Since Inception (11/2/17)		-19.42%		-20.23%		-8.57%		-8.96%

See page 49 for Performance Summary footnotes.



franklintempleton.com	Annual Report	47

FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 49 for Performance Summary footnotes.



48	Annual Report	franklintempleton.com

FRANKLIN FTSE FRANCE ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.574508

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



franklintempleton.com	Annual Report	49

FRANKLIN FTSE FRANCE ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	785.80	$	0.40	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



50	Annual Report	franklintempleton.com

Franklin FTSE Germany ETF

This annual report for Franklin FTSE Germany ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -17.68% based on market price and -17.00% based on net asset value. In comparison, the FTSE Germany Capped Index posted a -17.22% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 53.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Germany Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Software		11.7%
Insurance		11.2%
Automobiles		7.7%
Chemicals		7.3%
Pharmaceuticals		7.1%
Industrial Conglomerates		6.8%
Real Estate Management & Development		5.5%
Textiles, Apparel & Luxury Goods		5.1%
Diversified Telecommunication Services		4.7%
Capital Markets		4.0%

may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 233.



franklintempleton.com	Annual Report	51

FRANKLIN FTSE GERMANY ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
SAP SE Software, Germany		11.1%
Allianz SE Insurance, Germany		7.2%
Siemens AG Industrial Conglomerates, Germany		6.5%
Bayer AG Pharmaceuticals, Germany		5.8%
Adidas AG Textiles, Apparel & Luxury Goods, Germany		4.4%
BASF SE Chemicals, Germany		4.4%
Deutsche Telekom AG Diversified Telecommunication Services, Germany		4.2%
Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen Insurance, Germany		2.9%
Vonovia SE Real Estate Management & Development, Germany		2.7%
Deutsche Post AG Air Freight & Logistics, Germany		2.7%

Manager’s Discussion

For the fiscal year ended March 31, 2020, no sectors contributed to the Fund’s absolute performance. Individual holdings that lifted the Fund’s absolute return included Delivery Hero, Sartorius and Hapag-Lloyd.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer discretionary, materials and financials. Individual holdings that hindered the Fund’s absolute return included Allianz, BASF and Daimler.

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

LOGO

Dina Ting, CFA


		Louis Hsu, CFA

		Hailey Harris

		Portfolio Management Team



52	Annual Report	franklintempleton.com

FRANKLIN FTSE GERMANY ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-17.00%		-17.68%		-17.00%		-17.68%
Since Inception (11/2/17)		-31.05%		-31.55%		-14.31%		-14.57%

See page 55 for Performance Summary footnotes.



franklintempleton.com	Annual Report	53

FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 55 for Performance Summary footnotes.



54	Annual Report	franklintempleton.com

FRANKLIN FTSE GERMANY ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.574544

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



franklintempleton.com	Annual Report	55

FRANKLIN FTSE GERMANY ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	803.10	$	0.41	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



56	Annual Report	franklintempleton.com

Franklin FTSE Hong Kong ETF

This annual report for Franklin FTSE Hong Kong ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -21.56% based on market price and -20.90% based on net asset value. In comparison, the FTSE Hong Kong Capped Index posted a -20.92% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 59.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Hong Kong Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Insurance		21.2%
Real Estate Management & Development		17.4%
Capital Markets		8.4%
Industrial Conglomerates		7.5%
Hotels, Restaurants & Leisure		6.3%
Food Products		6.0%
Electric Utilities		5.7%
Banks		5.5%
Equity Real Estate Investment Trusts (REITs)		4.0%
Gas Utilities		3.6%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 236.



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FRANKLIN FTSE HONG KONG ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
AIA Group Ltd. Insurance, Hong Kong		21.2%
Hong Kong Exchanges and Clearing Ltd. Capital Markets, Hong Kong		8.2%
Sun Hung Kai Properties Ltd. Real Estate Management & Development, Hong Kong		4.1%
CK Hutchison Holdings Ltd. Industrial Conglomerates, Hong Kong		3.9%
Link REIT Equity Real Estate Investment Trusts (REITs), Hong Kong		3.8%
Hong Kong and China Gas Co. Ltd. Gas Utilities, Hong Kong		3.5%
CLP Holdings Ltd. Electric Utilities, Hong Kong		3.3%
CK Asset Holdings Ltd. Real Estate Management & Development, Hong Kong		3.2%
Hang Seng Bank Ltd. Banks, Hong Kong		2.7%
Galaxy Entertainment Group Ltd. Hotels, Restaurants & Leisure, Macau		2.5%

Manager’s Discussion

For the fiscal year ended March 31, 2020, the only sector that contributed to the Fund’s absolute performance was energy. Individual holdings that lifted the Fund’s absolute return included Sun Art Retail Group, Semiconductor Manufacturing International and Xinyi Glass Holdings.

For the same period, the sectors that detracted most from the Fund’s absolute performance were real estate, financials and industrials. Individual holdings that hindered the Fund’s absolute return included CK Hutchison Holdings, AIA Group and CK Asset Holdings.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



58	Annual Report	franklintempleton.com

FRANKLIN FTSE HONG KONG ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-20.90%		-21.56%		-20.90%		-21.56%
Since Inception (11/2/17)		-13.90%		-14.17%		-6.02%		-6.15%

See page 61 for Performance Summary footnotes.



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FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 61 for Performance Summary footnotes.



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FRANKLIN FTSE HONG KONG ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.758828

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE HONG KONG ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	885.00	$	0.42	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



62	Annual Report	franklintempleton.com

Franklin FTSE India ETF

This annual report for Franklin FTSE India ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -31.92% based on market price and -30.98% based on net asset value. In comparison, the FTSE India Capped Index posted a -31.42% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 65.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE India Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
IT Services		17.0%
Oil, Gas & Consumable Fuels		15.3%
Thrifts & Mortgage Finance		9.6%
Banks		6.1%
Household Products		5.4%
Pharmaceuticals		4.6%
Automobiles		4.4%
Chemicals		3.4%
Insurance		3.2%
Construction Materials		2.8%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 240.



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Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Reliance Industries Ltd. Oil, Gas & Consumable Fuels, India		11.5%
Housing Development Finance Corp. Ltd. Thrifts & Mortgage Finance, India		9.3%
Infosys Ltd. IT Services, India		7.9%
Tata Consultancy Services Ltd. IT Services, India		5.5%
Hindustan Unilever Ltd. Household Products, India		5.4%
Bharti Airtel Ltd. Wireless Telecommunication Services, India		2.5%
Axis Bank Ltd. Banks, India		2.5%
Maruti Suzuki India Ltd. Automobiles, India		1.7%
ITC Ltd. Tobacco, India		1.7%
Asian Paints Ltd. Chemicals, India		1.6%

Manager’s Discussion

For the fiscal year ended March 31, 2020, no sectors contributed to the Fund’s absolute performance. Individual holdings that lifted the Fund’s absolute return included Hindustan Unilever, Nestle India and Avenue Supermarts.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, consumer discretionary and energy. Individual holdings that hindered the Fund’s absolute return included Housing Development Finance, Axis Bank and Reliance Industries.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



64	Annual Report	franklintempleton.com

FRANKLIN FTSE INDIA ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-30.98%		-31.92%		-30.98%		-31.92%
Since Inception (2/6/18)		-31.41%		-32.14%		-16.12%		-16.54%

See page 67 for Performance Summary footnotes.



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FRANKLIN FTSE INDIA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

2/6/18–3/31/20

LOGO

See page 67 for Performance Summary footnotes.



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FRANKLIN FTSE INDIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.207681

Total Annual Operating Expenses⁵

0.19%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. Investments in securities of Indian issuers involve risks that are specific to India, including certain legal, regulatory, political and economic risks. There are special risks associated with investments in India, including exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, and exchange control regulations (including currency blockage). Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. As a non-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to a greater risk of loss with respect to its portfolio securities. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE INDIA ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	729.10	$	0.82	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



68	Annual Report	franklintempleton.com

Franklin FTSE Italy ETF

This annual report for Franklin FTSE Italy ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -21.32% based on market price and -20.84% based on net asset value. In comparison, the FTSE Italy Capped Index posted a -21.15% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 71.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Italy Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Electric Utilities		22.1%
Banks		20.4%
Oil, Gas & Consumable Fuels		8.9 %
Insurance		8.2%
Automobiles		7.4%
Gas Utilities		4.6%
Diversified Telecommunication Services		3.6%
Textiles, Apparel & Luxury Goods		3.1%
Diversified Financial Services		2.7%
Transportation Infrastructure		2.4%

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

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 245.



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Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Enel SpA Electric Utilities, Italy		18.8%
Eni SpA Oil, Gas & Consumable Fuels, Italy		8.9%
Intesa Sanpaolo SpA Banks, Italy		8.6%
UniCredit SpA Banks, Italy		6.2%
Assicurazioni Generali SpA Insurance, Italy		6.2%
Ferrari NV Automobiles, Italy		4.8%
Snam SpA Gas Utilities, Italy		3.6%
Terna Rete Elettrica Nazionale SpA Electric Utilities, Italy		3.3%
Moncler SpA Textiles, Apparel & Luxury Goods, Italy		2.8%
Telecom Italia SpA/Milano, di Risp Diversified Telecommunication Services, Italy		2.6%

Manager’s Discussion

For the fiscal year ended March 31, 2020, the only sectors that contributed to the Fund’s absolute performance were utilities and health care. Individual holdings that lifted the Fund’s absolute return included Ferrari, Enel and DiaSorin.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, energy and industrials. Individual holdings that hindered the Fund’s absolute return included ENI, UniCredit and Intesa Sanpaolo.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



70	Annual Report	franklintempleton.com

FRANKLIN FTSE ITALY ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-20.84%		-21.32%		-20.84%		-21.32%
Since Inception (11/2/17)		-26.22%		-26.48%		-11.86%		-11.99%

See page 73 for Performance Summary footnotes.



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FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 73 for Performance Summary footnotes.



72	Annual Report	franklintempleton.com

FRANKLIN FTSE ITALY ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.895572

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE ITALY ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	768.40	$	0.40	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



74	Annual Report	franklintempleton.com

Franklin FTSE Japan ETF

This annual report for Franklin FTSE Japan ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -8.19% based on market price and -7.15% based on net asset value. In comparison, the FTSE Japan Capped Index posted a -7.25% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 77.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Pharmaceuticals		7.2%
Automobiles		6.9%
Electronic Equipment, Instruments & Components		6.0%
Banks		5.0%
Wireless Telecommunication Services		5.0%
Machinery		4.9%
Road & Rail		4.5%
Chemicals		4.3%
Household Durables		3.7%
Trading Companies & Distributors		3.4%

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

2. Source: FactSet.

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

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



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FRANKLIN FTSE JAPAN ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Toyota Motor Corp. Automobiles, Japan		4.5%
Sony Corp. Household Durables, Japan		2.2%
Keyence Corp. Electronic Equipment, Instruments & Components, Japan		1.8%
SoftBank Group Corp. Wireless Telecommunication Services, Japan		1.7%
KDDI Corp. Wireless Telecommunication Services, Japan		1.5%
Takeda Pharmaceutical Co. Ltd. Pharmaceuticals, Japan		1.4%
Mitsubishi UFJ Financial Group Inc. Banks, Japan		1.4%
Daiichi Sankyo Co. Ltd. Pharmaceuticals, Japan		1.3%
Nintendo Co. Ltd. Entertainment, Japan		1.2%
Shin-Etsu Chemical Co. Ltd. Chemicals, Japan		1.2%

Manager’s Discussion

For the fiscal year ended March 31, 2020, the sectors that contributed most to the Fund’s absolute performance were health care, communication services and information technology. Individual holdings that lifted the Fund’s absolute return included Sony, Daiichi Sankyo and KDDI.

For the same period, the sectors that detracted most from the Fund’s absolute performance were industrials, financials and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Softbank Group, Takeda Pharmaceutical and Mitsubishi UFJ Financial Group.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



76	Annual Report	franklintempleton.com

FRANKLIN FTSE JAPAN ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-7.15%		-8.19%		-7.15%		-8.19%
Since Inception (11/2/17)		-12.02%		-12.79%		-5.18%		-5.52%

See page 79 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 79 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.591441

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE JAPAN ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	896.10	$	0.43	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Japan Hedged ETF

This annual report for Franklin FTSE Japan Hedged ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the six-month, the Fund posted cumulative total returns of -8.90% based on market price and -7.66% based on net asset value. In comparison, the FTSE Japan Capped Hedged Index posted a -7.49% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 83.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Hedged Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Pharmaceuticals		7.1%
Automobiles		6.9%
Electronic Equipment, Instruments & Components		5.9%
Banks		5.0%
Wireless Telecommunication Services		5.0%
Machinery		4.8%
Road & Rail		4.5%
Chemicals		4.3%
Household Durables		3.7%
Trading Companies & Distributors		3.4%

the component securities in their respective weightings in the Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, we may use a “representative sampling” strategy whereby we would invest in what we believe to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, we will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. We intend to enter into monthly foreign currency forward contracts and/or currency futures contracts designed to offset the Fund’s exposure to the Japanese yen, in order to replicate the hedge impact incorporated in the calculation of the Underlying Index. The Fund’s exposure to foreign currency forward contracts and currency futures contracts is based on the aggregate exposure of the Fund to the Japanese yen. The Fund will concentrate its investments (i.e., hold 25% or

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 258.



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Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Toyota Motor Corp. Automobiles, Japan		4.5%
Sony Corp. Household Durables, Japan		2.2%
Keyence Corp. Electronic Equipment, Instruments & Components, Japan		1.8%
SoftBank Group Corp. Wireless Telecommunication Services, Japan		1.7%
KDDI Corp. Wireless Telecommunication Services, Japan		1.5%
Takeda Pharmaceutical Co. Ltd. Pharmaceuticals, Japan		1.4%
Mitsubishi UFJ Financial Group Inc. Banks, Japan		1.4%
Daiichi Sankyo Co. Ltd. Pharmaceuticals, Japan		1.3%
Nintendo Co. Ltd. Entertainment, Japan		1.3%
Shin-Etsu Chemical Co. Ltd. Chemicals, Japan		1.2%

more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated.

What is a currency forward contract?

What is a futures contract?

Manager’s Discussion

For the fiscal year ended March 31, 2020, the only sectors that contributed to the Fund’s absolute performance were health care and communication services. Individual holdings that lifted the Fund’s absolute return included Sony, Daiichi Sankyo and KDDI. The Fund’s use of currency forward

contracts—designed to offset the Fund’s exposure to the Japanese yen and to replicate the hedge impact incorporated in the calculation of the Underlying Index—also contributed to the Fund’s absolute performance. However, one cannot expect the same result in future periods.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



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FRANKLIN FTSE JAPAN HEDGED ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-7.66%		-8.90%		-7.66%		-8.90%
Since Inception (11/2/17)		-12.78%		-13.86%		-5.52%		-6.01%

See page 85 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN HEDGED ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 85 for Performance Summary footnotes.



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FRANKLIN FTSE JAPAN HEDGED ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁵

0.09%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. Investments in securities of Japanese issuers involve risks that are specific to Japan, including certain legal, regulatory, political and economic risks. Because the Fund invests its assets primarily in companies in a specific country or region, the Fund may also experience greater volatility than a fund that is more broadly diversified geographically. Derivatives, including currency management strategies, involve costs and can create economic leverage in the portfolio, which may result in significant volatility and cause the Fund to participate in losses on an amount that exceeds the Fund’s initial investment. The Fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. While the Fund’s use of foreign currency forward contracts and/or currency futures contracts is designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund’s exposure to the Japanese yen. The return of these currency hedging instruments will not perfectly offset the actual fluctuations between the Japanese yen and the U.S. dollar. Currency hedges are sometimes subject to imperfect matching between the derivative instruments and the currencies that the derivative instruments intend to hedge, and there can be no assurance that the Fund’s hedging transactions will be effective. The Fund’s exposure to the Japanese yen may not be fully hedged at all times. Because the Fund’s currency hedge is generally reset on a monthly basis, currency risk can develop or increase intra-month. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE JAPAN HEDGED ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	903.90	$	0.43	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Latin America ETF

This annual report for Franklin FTSE Latin America ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -40.01% based on market price and -40.49% based on net asset value. In comparison, the FTSE Latin America Capped Index posted a -40.45% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 89.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Latin America Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Banks		21.3%
Metals & Mining		10.4%
Oil, Gas & Consumable Fuels		7.8%
Beverages		7.1%
Electric Utilities		5.9%
Food & Staples Retailing		5.3%
Wireless Telecommunication Services		4.7%
Capital Markets		3.8%
Multiline Retail		3.8%
Food Products		3.0%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 269.



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Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Vale SA Metals & Mining, Brazil		7.1%
Itau Unibanco Holding SA Banks, Brazil		5.7%
Petroleo Brasileiro SA Oil, Gas & Consumable Fuels, Brazil		5.6%
Banco Bradesco SA Banks, Brazil		4.9%
America Movil SAB de CV, L Wireless Telecommunication Services, Mexico		4.1%
B3 SA - Brasil Bolsa Balcao Capital Markets, Brazil		3.4%
Fomento Economico Mexicano SAB de CV Beverages, Mexico		3.2%
Wal-Mart de Mexico SAB de CV, V Food & Staples Retailing, Mexico		3.0%
Ambev SA Beverages, Brazil		2.5%
Grupo Financiero Banorte SAB de CV Banks, Mexico		1.9%

Manager’s Discussion

For the fiscal year ended March 31, 2020, no sectors contributed to the Fund’s absolute performance. Individual holdings that lifted the Fund’s absolute return included B2W Companhia Digital Temp, TOTVS and GOL Linhas Aereas Inteligentes.

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


Country Composition

3/31/20

	% of Total Net Assets
Brazil		62.8%
Mexico		24.0%
Chile		7.8%
Colombia		3.5%
United States		1.0%
Peru		0.4%

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



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FRANKLIN FTSE LATIN AMERICA ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-40.49%		-40.01%		-40.49%		-40.01%
Since Inception (10/9/18)		-39.65%		-39.30%		-29.01%		-28.73%

See page 91 for Performance Summary footnotes.



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FRANKLIN FTSE LATIN AMERICA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

10/9/18–3/31/20

LOGO

See page 91 for Performance Summary footnotes.



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FRANKLIN FTSE LATIN AMERICA ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.902643

Total Annual Operating Expenses⁵

0.19%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	594.50	$	0.88	$	1,023.90	$	1.11		0.22	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Mexico ETF

This annual report for Franklin FTSE Mexico ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -33.23% based on market price and -33.13% based on net asset value. In comparison, the FTSE Mexico Capped Index posted a -33.16% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 95.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Mexico Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Beverages		17.7%
Wireless Telecommunication Services		15.9%
Banks		15.3%
Food & Staples Retailing		12.0%
Transportation Infrastructure		7.1%
Food Products		6.5%
Metals & Mining		6.1%
Media		3.9%
Construction Materials		3.2%
Equity Real Estate Investment Trusts (REITs)		2.7%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 274.



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Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
America Movil SAB de CV, L Wireless Telecommunication Services, Mexico		15.9%
Fomento Economico Mexicano SAB de CV Beverages, Mexico		12.5%
Wal-Mart de Mexico SAB de CV, V Food & Staples Retailing, Mexico		12.0%
Grupo Financiero Banorte SAB de CV Banks, Mexico		7.7%
Grupo Mexico SAB de CV, B Metals & Mining, Mexico		5.0%
Grupo Bimbo SAB de CV, A Food Products, Mexico		3.7%
Grupo Elektra SAB de CV Banks, Mexico		3.7%
Cemex SAB de CV Construction Materials, Mexico		3.2%
Grupo Televisa SA Media, Mexico		2.9%
Coca-Cola FEMSA SA de CV Beverages, Mexico		2.5%

Manager’s Discussion

For the fiscal year ended March 31, 2020, no sectors contributed to the Fund’s absolute performance. The only holding that lifted the Fund’s absolute return was Telesites.

For the same period, the sectors that detracted most from the Fund’s absolute performance were consumer staples, financials and industrials. Individual holdings that hindered the Fund’s absolute return included Grupo Financiero Banorte, Fomento Economico Mexicano and America Movil.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



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FRANKLIN FTSE MEXICO ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-33.13%		-33.23%		-33.13%		-33.23%
Since Inception (11/3/17)		-38.96%		-39.43%		-18.55%		-18.81%

See page 97 for Performance Summary footnotes.



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PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/3/17–3/31/20

LOGO

See page 97 for Performance Summary footnotes.



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FRANKLIN FTSE MEXICO ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.670892

Total Annual Operating Expenses⁵

0.19%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	671.80	$	0.79	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Russia ETF

This annual report for Franklin FTSE Russia ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -16.03% based on market price and -13.90% based on net asset value. In comparison, the FTSE Russia Capped Index posted a -13.89% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 101.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Russia Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Oil, Gas & Consumable Fuels		49.3%
Banks		17.5%
Metals & Mining		15.5%
Electric Utilities		5.3%
Wireless Telecommunication Services		3.3%
Food & Staples Retailing		2.8%
Capital Markets		2.3%
Chemicals		1.6%
Diversified Telecommunication Services		1.4%
Airlines		0.6%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 276.



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Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
LUKOIL PJSC Oil, Gas & Consumable Fuels, Russia		15.5%
Sberbank of Russia PJSC Banks, Russia		15.2%
Gazprom PJSC Oil, Gas & Consumable Fuels, Russia		15.2%
NovaTek PJSC Oil, Gas & Consumable Fuels, Russia		4.5%
MMC Norilsk Nickel PJSC Metals & Mining, Russia		4.5%
Tatneft PAO Oil, Gas & Consumable Fuels, Russia		4.1%
Surgutneftegas PJSC Oil, Gas & Consumable Fuels, Russia		3.3%
Rosneft PJSC Oil, Gas & Consumable Fuels, Russia		3.0%
Polyus Gold OJSC Metals & Mining, Russia		2.9%
Magnit PJSC Food & Staples Retailing, Russia		2.8%

Manager’s Discussion

For the fiscal year ended March 31, 2020, no sectors contributed to the Fund’s absolute performance. Individual holdings that lifted the Fund’s absolute return included Gazprom, Polyus Gold and MMC Norilsk Nickel.

For the same period, the sectors that detracted most from the Fund’s absolute performance were energy, financials and materials. Individual holdings that hindered the Fund’s absolute return included Lukoil Holdings, Sberbank of Russia and Tatneft.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



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FRANKLIN FTSE RUSSIA ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-13.90%		-16.03%		-13.90%		-16.03%
Since Inception (2/6/18)		-13.22%		-15.12%		-6.40%		-7.36%

See page 103 for Performance Summary footnotes.



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PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

2/6/18–3/31/20

LOGO

See page 103 for Performance Summary footnotes.



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FRANKLIN FTSE RUSSIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$1.750396

Total Annual Operating Expenses⁵

0.19%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	751.30	$	0.83	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Saudi Arabia ETF

This annual report for Franklin FTSE Saudi Arabia ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -25.44% based on market price and -25.51% based on net asset value. In comparison, the FTSE Saudi Arabia Capped Index posted a -25.28% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 107.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Saudi Arabia Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Banks		39.2%
Chemicals		20.5%
Diversified Telecommunication Services		9.6%
Oil, Gas & Consumable Fuels		7.5%
Food Products		4.2%
Metals & Mining		2.7%
Electric Utilities		2.5%
Construction Materials		2.3%
Wireless Telecommunication Services		2.2%
Real Estate Management & Development		2.1%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 278.



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Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Al-Rajhi Bank Banks, Saudi Arabia		11.9%
Saudi Basic Industries Corp. Chemicals, Saudi Arabia		11.4%
Saudi Telecom Co. Diversified Telecommunication Services, Saudi Arabia		9.6%
National Commercial Bank Banks, Saudi Arabia		8.6%
Saudi Aramco, 144A, Reg S Oil, Gas & Consumable Fuels, Saudi Arabia		7.0%
Riyad Bank Banks, Saudi Arabia		4.1%
Samba Financial Group Banks, Saudi Arabia		3.8%
Alinma Bank Banks, Saudi Arabia		3.0%
Banque Saudi Fransi Banks, Saudi Arabia		3.0%
Saudi Arabian Mining Co. Metals & Mining, Saudi Arabia		2.7%

Manager’s Discussion

For the fiscal year ended March 31, 2020, the only sector that contributed to the Fund’s absolute performance was consumer staples. Individual holdings that lifted the Fund’s absolute return included Abdullah Al Othaim Markets, Savola Al-Azizia United and Arab National Bank.

For the same period, the sectors that detracted most from the Fund’s absolute performance were materials, financials and energy. Individual holdings that hindered the Fund’s absolute return included Saudi Arabia Industries, National Commercial Bank and Samba Financial Group.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



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FRANKLIN FTSE SAUDI ARABIA ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-25.51%		-25.44%		-25.51%		-25.44%
Since Inception (10/9/18)		-15.92%		-14.49%		-11.10%		-10.08%

See page 109 for Performance Summary footnotes.



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PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

10/9/18–3/31/20

LOGO

See page 109 for Performance Summary footnotes.



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FRANKLIN FTSE SAUDI ARABIA ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.828404

Total Annual Operating Expenses⁵

0.39%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	798.40	$	1.75	$	1,023.05	$	1.97		0.39	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE South Africa ETF

This annual report for Franklin FTSE South Africa ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -39.46% based on market price and -38.46% based on net asset value. In comparison, the FTSE/JSE South Africa Capped Index posted a -38.36% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 113.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE/JSE South Africa Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation.


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Internet & Direct Marketing Retail		24.7%
Metals & Mining		15.3%
Banks		9.3%
Food & Staples Retailing		9.2%
Diversified Financial Services		8.8%
Insurance		7.9%
Wireless Telecommunication Services		5.5%
Equity Real Estate Investment Trusts (REITs)		3.0%
Specialty Retail		2.4%
Industrial Conglomerates		2.0%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 281.



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Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Naspers Ltd., N Internet & Direct Marketing Retail, South Africa		24.7%
AngloGold Ashanti Ltd. Metals & Mining, South Africa		4.7%
Standard Bank Group Ltd. Banks, South Africa		4.6%
FirstRand Ltd. Diversified Financial Services, South Africa		4.5%
Sanlam Ltd. Insurance, South Africa		3.1%
MTN Group Ltd. Wireless Telecommunication Services, South Africa		3.1%
Gold Fields Ltd. Metals & Mining, South Africa		2.6%
Bid Corp. Ltd. Food & Staples Retailing, South Africa		2.5%
Vodacom Group Ltd. Wireless Telecommunication Services, South Africa		2.5%
Remgro Ltd. Diversified Financial Services, South Africa		2.2%

Manager’s Discussion

For the fiscal year ended March 31, 2020, no sectors contributed to the Fund’s absolute performance. Individual holdings that lifted the Fund’s absolute return included AngloGold Ashanti, Gold Fields and Clicks Group.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, materials and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Sasol, Standard Bank Group and FirstRand.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



112	Annual Report	franklintempleton.com

FRANKLIN FTSE SOUTH AFRICA ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-38.46%		-39.46%		-38.46%		-39.46%
Since Inception (10/10/18)		-32.76%		-33.60%		-23.64%		-24.30%

See page 115 for Performance Summary footnotes.



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PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

10/10/18–3/31/20

LOGO

See page 115 for Performance Summary footnotes.



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FRANKLIN FTSE SOUTH AFRICA ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$2.695010

Total Annual Operating Expenses⁵

0.19%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	658.20	$	0.79	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE South Korea ETF

This annual report for Franklin FTSE South Korea ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -19.60% based on market price and -20.24% based on net asset value. In comparison, the FTSE South Korea Capped Index posted a -20.46% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 119.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE South Korea Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Technology Hardware, Storage & Peripherals		18.9%
Semiconductors & Semiconductor Equipment		8.0%
Banks		7.8%
Interactive Media & Services		5.7%
Biotechnology		4.9%
Automobiles		4.2%
Chemicals		4.2%
Industrial Conglomerates		3.9%
Electronic Equipment, Instruments & Components		3.9%
Personal Products		3.5%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 284.



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Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Samsung Electronics Co. Ltd. Technology Hardware, Storage & Peripherals, South Korea		18.9%
SK Hynix Inc. Semiconductors & Semiconductor Equipment, South Korea		8.0%
Celltrion Inc. Biotechnology, South Korea		4.4%
Naver Corp. Interactive Media & Services, South Korea		4.2%
Hyundai Motor Co. Automobiles, South Korea		2.9%
LG Chem Ltd. Chemicals, South Korea		2.8%
Shinhan Financial Group Co. Ltd. Banks, South Korea		2.5%
KB Financial Group Inc. Banks, South Korea		2.5%
Samsung SDI Co. Ltd. Electronic Equipment, Instruments & Components, South Korea		2.4%
LG Household & Health Care Ltd. Personal Products, South Korea		2.1%

Manager’s Discussion

For the fiscal year ended March 31, 2020, the only sectors that contributed to the Fund’s absolute performance were communication services and health care. Individual holdings that lifted the Fund’s absolute return included Celltrion, Naver and NCSoft.

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, consumer discretionary and industrials. Individual holdings that hindered the Fund’s absolute return included Hyundai Motor, POSCO and Shinhan Financial Group.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



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FRANKLIN FTSE SOUTH KOREA ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹						Average Annual Total Return¹
	Based on NAV²			Based on market price³			Based on NAV²			Based on market price³
1-Year		-20.24	%		-19.60	%		-20.24	%		-19.60	%
Since Inception (11/2/17)		-32.44	%		-32.38	%		-15.03	%		-14.99	%

See page 121 for Performance Summary footnotes.



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FRANKLIN FTSE SOUTH KOREA ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 121 for Performance Summary footnotes.



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FRANKLIN FTSE SOUTH KOREA ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.453814

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE SOUTH KOREA ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	858.70	$	0.42	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



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Franklin FTSE Switzerland ETF

This annual report for Franklin FTSE Switzerland ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +3.06% based on market price and +3.70% based on net asset value. In comparison, the FTSE Switzerland Capped Index posted a +3.06% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 125.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Switzerland Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Pharmaceuticals		28.8%
Food Products		22.2%
Insurance		8.9%
Capital Markets		7.0%
Chemicals		5.8%
Health Care Equipment & Supplies		4.1%
Textiles, Apparel & Luxury Goods		3.4%
Electrical Equipment		3.0%
Life Sciences Tools & Services		3.0%
Professional Services		2.2%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 288.



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FRANKLIN FTSE SWITZERLAND ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Nestle SA Food Products, Switzerland		19.9%
Roche Holding AG Pharmaceuticals, Switzerland		16.0%
Novartis AG Pharmaceuticals, Switzerland		12.2%
Zurich Insurance Group AG Insurance, Switzerland		4.8%
UBS Group AG Capital Markets, Switzerland		3.1%
ABB Ltd. Electrical Equipment, Switzerland		3.0%
Lonza Group AG Life Sciences Tools & Services, Switzerland		3.0%
Givaudan AG Chemicals, Switzerland		2.8%
Cie Financiere Richemont SA Textiles, Apparel & Luxury Goods, Switzerland		2.7%
Alcon Inc. Health Care Equipment & Supplies, Switzerland		2.3%

Manager’s Discussion

For the fiscal year ended March 31, 2020, the sectors that contributed most to the Fund’s absolute performance were health care, consumer staples and materials. Individual holdings that lifted the Fund’s absolute return included Roche Holding, Nestle and Lonza Group.

For the same period, the only sectors that detracted from the Fund’s absolute performance were financials and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Cie Financiere Richemont, Credit Suisse Group and UBS Group.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



124	Annual Report	franklintempleton.com

FRANKLIN FTSE SWITZERLAND ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20

Cumulative Total Return¹

Average Annual Total Return¹

Based on
NAV²

Based on

market price³

Based on
NAV²

Based on

market price³

1-Year

+3.70%

+3.06%

+3.70%

+3.06%

Since Inception (2/6/18)

+7.95%

+7.47%

+3.63%

+3.41%

See page 127 for Performance Summary footnotes.



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FRANKLIN FTSE SWITZERLAND ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

2/6/18–3/31/20

LOGO

See page 127 for Performance Summary footnotes.



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FRANKLIN FTSE SWITZERLAND ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.320080

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE SWITZERLAND ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	953.80	$	0.44	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



128	Annual Report	franklintempleton.com

Franklin FTSE Taiwan ETF

This annual report for Franklin FTSE Taiwan ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -3.48% based on market price and -3.29% based on net asset value. In comparison, the FTSE Taiwan Capped Index posted a -3.26% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 131.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Taiwan Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Semiconductors & Semiconductor Equipment		29.3%
Electronic Equipment, Instruments & Components		14.2%
Banks		14.1%
Technology Hardware, Storage & Peripherals		8.1%
Chemicals		6.9%
Insurance		5.8%
Diversified Telecommunication Services		2.9%
Food Products		2.2%
Diversified Financial Services		2.0%
Construction Materials		2.0%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 291.



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FRANKLIN FTSE TAIWAN ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Taiwan Semiconductor Manufacturing Co. Ltd. Semiconductors & Semiconductor Equipment, Taiwan		19.8%
Hon Hai Precision Industry Co. Ltd. Electronic Equipment, Instruments & Components, Taiwan		5.9%
MediaTek Inc. Semiconductors & Semiconductor Equipment, Taiwan		3.4%
Chunghwa Telecom Co. Ltd. Diversified Telecommunication Services, Taiwan		2.9%
Largan Precision Co. Ltd. Electronic Equipment, Instruments & Components, Taiwan		2.8%
Formosa Plastics Corp. Chemicals, Taiwan		2.6%
CTBC Financial Holding Co. Ltd. Banks, Taiwan		2.3%
Uni-President Enterprises Corp. Food Products, Taiwan		2.3%
Mega Financial Holding Co. Ltd. Banks, Taiwan		2.2%
Nan Ya Plastics Corp. Chemicals, Taiwan		2.2%

Manager’s Discussion

For the fiscal year ended March 31, 2020, the sectors that contributed to the Fund’s absolute performance were information technology and communication services. Individual holdings that lifted the Fund’s absolute return included Taiwan Semiconductor Manufacturing, MediaTek and Hotai Motor.

For the same period, the sectors that detracted most from the Fund’s absolute performance were materials, financials and consumer discretionary. Individual holdings that hindered the Fund’s absolute return included Formosa Plastics, Formosa Chemical & Fibre, and Nan Ya Plastics.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



130	Annual Report	franklintempleton.com

FRANKLIN FTSE TAIWAN ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-3.29%		-3.48%		-3.29%		-3.48%
Since Inception (11/2/17)		-5.58%		-5.73%		-2.36%		-2.42%

See page 133 for Performance Summary footnotes.



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FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 133 for Performance Summary footnotes.



132	Annual Report	franklintempleton.com

FRANKLIN FTSE TAIWAN ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$0.867876

Total Annual Operating Expenses⁵

0.19%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE TAIWAN ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1.2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	928.80	$	0.92	$	1,024.05	$	0.96		0.19	%

2. Reflects expenses after fee waivers and expense reimbursements.



134	Annual Report	franklintempleton.com

Franklin FTSE United Kingdom ETF

This annual report for Franklin FTSE United Kingdom ETF covers the fiscal year ended March 31, 2020.

Your Fund’s Goal and Main Investments

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

Performance Overview

For the 12-month period, the Fund posted cumulative total returns of -23.55% based on market price and -22.42% based on net asset value. In comparison, the FTSE UK Capped Index posted a -22.37% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 137.

Investment Strategy

The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE UK Capped Index. We seek to achieve, over time, a correlation between the Fund’s performance, before fees and expenses, and that of the Underlying Index of 0.95 or better. A figure of 1.00 would indicate perfect correlation. Our intention is to replicate the component securities of the Underlying


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Oil, Gas & Consumable Fuels		11.9%
Pharmaceuticals		11.5%
Banks		9.9%
Metals & Mining		7.3%
Tobacco		5.2%
Insurance		4.5%
Beverages		4.2%
Professional Services		4.1%
Capital Markets		3.7%
Personal Products		3.0%

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

2. Source: FactSet.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 294.



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FRANKLIN FTSE UNITED KINGDOM ETF


Top 10 Holdings

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
Royal Dutch Shell PLC, A, B Oil, Gas & Consumable Fuels, United Kingdom		7.3%
AstraZeneca PLC Pharmaceuticals, United Kingdom		6.3%
HSBC Holdings PLC Banks, United Kingdom		6.2%
GlaxoSmithKline PLC Pharmaceuticals, United Kingdom		5.0%
BP PLC Oil, Gas & Consumable Fuels, United Kingdom		4.6%
British American Tobacco PLC Tobacco, United Kingdom		4.2%
Diageo PLC Beverages, United Kingdom		4.0%
Unilever PLC Personal Products, United Kingdom		3.0%
Rio Tinto PLC Metals & Mining, Australia		2.7%
Reckitt Benckiser Group PLC Household Products, United Kingdom		2.6%

Manager’s Discussion

For the same period, the sectors that detracted most from the Fund’s absolute performance were financials, energy and consumer staples. Individual holdings that hindered the Fund’s absolute return included Royal Dutch Shell, HSBC Holdings and BP.

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

LOGO

Dina Ting, CFA

LOGO

Louis Hsu, CFA


		Hailey Harris

		Portfolio Management Team



136	Annual Report	franklintempleton.com

FRANKLIN FTSE UNITED KINGDOM ETF

Performance Summary as of March 31, 2020

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

Performance as of 3/31/20



	Cumulative Total Return¹				Average Annual Total Return¹
	Based on NAV²		Based on market price³		Based on NAV²		Based on market price³
1-Year		-22.42%		-23.55%		-22.42%		-23.55%
Since Inception (11/2/17)		-21.42%		-22.44%		-9.52%		-10.01%

See page 139 for Performance Summary footnotes.



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FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment

11/2/17–3/31/20

LOGO

See page 139 for Performance Summary footnotes.



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FRANKLIN FTSE UNITED KINGDOM ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$1.090866

Total Annual Operating Expenses⁵

0.09%

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

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

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

3. Assumes reinvestment of distributions based on market price.

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

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



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FRANKLIN FTSE UNITED KINGDOM ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	785.50	$	0.40	$	1,024.55	$	0.46		0.09	%

2. Reflects expenses after fee waivers and expense reimbursements.



140	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Asia ex Japan ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	21.86		$	23.63		$	23.64


Income from investment operations^b:

Net investment income^c		0.49			0.51			0.04

Net realized and unrealized gains (losses)		(3.46	)		(1.82	)		(0.05	)


Total from investment operations		(2.97	)		(1.31	)		(0.01	)


Less distributions from net investment income		(0.50	)		(0.46	)		—


Net asset value, end of year	$	18.39		$	21.86		$	23.63


Total return^d		(13.88)%			(5.34)%			(0.04)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.19%			0.19%			0.19%

Expenses net waiver and payments by affiliates		0.19%			—			—

Net investment income		2.32%			2.34%			1.06%

Supplemental data

Net assets, end of year (000’s)		$14,712			$17,488			$9,451

Portfolio turnover rate^f		11.42%	^g		7.11%			0.96%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 11.42%.



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Statement of Investments, March 31, 2020

Franklin FTSE Asia ex Japan ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 98.8%
	Cambodia 0.0%^†
	NagaCorp Ltd.		Hotels, Restaurants & Leisure		4,000	$	4,082

	China 43.6%
	360 Security Technology Inc., A		Software		600		1,602
a	3SBio Inc.		Biotechnology		4,000		4,165
a	51job Inc., ADR		Professional Services		80		4,911
a	58.com Inc., ADR		Interactive Media & Services		316		15,396
	A-Living Services Co. Ltd., H		Commercial Services & Supplies		1,500		7,296
	AAC Technologies Holdings Inc.		Electronic Equipment, Instruments & Components		2,000		10,373
	AECC Aero-Engine Control Co. Ltd.		Aerospace & Defense		200		337
	Agile Group Holdings Ltd.		Real Estate Management & Development		4,000		4,330
	Agricultural Bank of China Ltd., A		Banks		22,000		10,460
	Agricultural Bank of China Ltd., H		Banks		102,000		40,927
	Aier Eye Hospital Group Co. Ltd.		Health Care Providers & Services		600		3,333
	Air China Ltd., A		Airlines		800		735
	Air China Ltd., H		Airlines		4,000		2,580
a	Alibaba Group Holding Ltd., ADR		Internet & Direct Marketing Retail		5,852		1,138,097
a	Alibaba Health Information Technology Ltd.		Health Care Technology		12,000		20,065
a	Alpha Group		Leisure Equipment & Products		200		205
a	Aluminum Corp. of China Ltd., A		Metals & Mining		1,800		731
a	Aluminum Corp. of China Ltd., H		Metals & Mining		24,000		4,768
	An Hui Wenergy Co. Ltd.		Independent Power and Renewable Electricity Producers		600		327
	Angang Steel Co. Ltd.		Metals & Mining		1,000		379
	Angang Steel Co. Ltd., H		Metals & Mining		5,200		1,369
	Angel Yeast Co. Ltd., A		Food Products		200		993
	Anhui Anke Biotechnology Group Co. Ltd.		Biotechnology		200		389
	Anhui Conch Cement Co. Ltd., A		Construction Materials		800		6,219
	Anhui Conch Cement Co. Ltd., H		Construction Materials		4,000		27,790
	Anhui Gujing Distillery Co. Ltd., B		Beverages		600		4,737
a	Anhui Jianghuai Automobile Group Corp. Ltd., A		Automobiles		400		280
	Anhui Xinhua Media Co. Ltd., A		Distributors		200		134
	Anhui Zhongding Sealing Parts Co. Ltd.		Auto Components		200		262
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		4,000		29,390
a	Anxin Trust Co. Ltd.		Capital Markets		800		282
a	Autohome Inc., ADR		Interactive Media & Services		194		13,778
	Avary Holding Shenzhen Co. Ltd., A		Electronic Equipment, Instruments & Components		200		896
	AVIC Aircraft Co. Ltd.		Aerospace & Defense		400		895
	Avic Capital Co. Ltd., A		Diversified Financial Services		1,200		665
	AVIC Electromechanical Systems Co. Ltd.		Aerospace & Defense		600		610
	Avic Heavy Machinery Co. Ltd., A		Machinery		200		250
	AVIC Jonhon OptronicTechnology Co. Ltd.		Electronic Equipment, Instruments & Components		200		965
a	AVIC Shenyang Aircraft Co. Ltd., A		Aerospace & Defense		200		808
	AviChina Industry & Technology Co. Ltd., H		Aerospace & Defense		12,000		4,629
	BAIC Motor Corp. Ltd., H		Automobiles		8,000		3,179
a	Baidu Inc., ADR		Interactive Media & Services		912		91,920
	Bank of Beijing Co. Ltd., A		Banks		3,200		2,181
	Bank of Changsha Co. Ltd., A		Banks		600		654
	Bank of Chengdu Co. Ltd., A		Banks		200		212
	Bank of China Ltd., A		Banks		13,000		6,382
	Bank of China Ltd., H		Banks		254,000		97,328
	Bank of Communications Co. Ltd., A		Banks		6,000		4,368
	Bank of Communications Co. Ltd., H		Banks		28,000		17,159
	Bank of Guiyang Co. Ltd.		Banks		400		432
	Bank of Hangzhou Co. Ltd.		Banks		400		435
	Bank of Jiangsu Co. Ltd., A		Banks		600		509



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Bank of Nanjing Co. Ltd., A		Banks		1,400	$	1,432
	Bank of Ningbo Co. Ltd., A		Banks		1,200		3,904
	Bank of Qingdao Co. Ltd., A		Banks		200		141
	Bank of Shanghai Co. Ltd., A		Banks		2,180		2,534
	Bank of Zhengzhou Co. Ltd.		Banks		400		221
	Baoshan Iron & Steel Co. Ltd., A		Metals & Mining		2,800		1,924
	BBMG Corp., A		Construction Materials		1,000		463
	BBMG Corp., H		Construction Materials		8,000		2,002
	Beijing Capital Development Co. Ltd., A		Real Estate Management & Development		400		373
	Beijing Capital International Airport Co. Ltd.		Transportation Infrastructure		4,000		2,549
	Beijing Dabeinong Technology Group Co. Ltd.		Food Products		600		732
	Beijing Enlight Media Co. Ltd.		Entertainment		400		503
	Beijing Enterprises Holdings Ltd.		Gas Utilities		2,000		7,341
	Beijing Enterprises Water Group Ltd.		Water Utilities		20,000		7,818
	Beijing Jingneng Clean Energy Co. Ltd., H		Independent Power and Renewable Electricity Producers		4,000		578
a	Beijing Kunlun Tech Co. Ltd.		Entertainment		600		1,507
a	Beijing Lanxum Technology Co. Ltd.		IT Services		200		435
	Beijing New Building Materials PLC		Building Products		200		666
	Beijing North Star Co. Ltd., A		Real Estate Management & Development		400		150
	Beijing North Star Co. Ltd., H		Real Estate Management & Development		4,000		929
	Beijing Orient National Communication Science &Technology Co. Ltd.		Software		200		402
	Beijing Oriental Yuhong Waterproof Technology Co. Ltd.		Construction Materials		600		2,881
	Beijing Originwater Technology Co. Ltd.		Commercial Services & Supplies		400		520
	Beijing Sanju Environmental Protection and New Material Co. Ltd.		Chemicals		200		128
	Beijing Shunxin Agriculture Co. Ltd., A		Beverages		200		1,732
	Beijing SL Pharmaceutical Co. Ltd.		Biotechnology		200		337
	Beijing Tiantan Biological Products Corp. Ltd., A		Biotechnology		200		1,026
	Beijing Tongrentang Co. Ltd., A		Pharmaceuticals		200		715
a	Beijing Ultrapower Software Co. Ltd.		IT Services		400		206
	Beijing Yanjing Brewery Co. Ltd.		Beverages		400		341
	Beijing Zhong Ke San Huan High-Tech Co. Ltd.		Electronic Equipment, Instruments & Components		200		265
	Bengang Steel Plates Co. Ltd., B		Metals & Mining		1,600		334
	Better Life Commercial Chain Share Co. Ltd.		Food & Staples Retailing		200		266
a	Bilibili Inc., ADR		Entertainment		186		4,356
	Bluedon Information Security Technology Co. Ltd.		Software		200		125
	Bluefocus Intelligent Communications Group Co. Ltd.		Media		400		320
	Bluestar Adisseo Co., A		Chemicals		200		330
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		2,800		993
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		5,200		2,722
	Bosideng International Holdings Ltd.		Textiles, Apparel & Luxury Goods		16,000		3,757
	Boya Bio-pharmaceutical Group Co. Ltd.		Biotechnology		400		1,777
	Bright Dairy & Food Co. Ltd., A		Food Products		200		327
	Brilliance China Automotive Holdings Ltd.		Automobiles		8,000		6,585
	BTG Hotels Group Co. Ltd., A		Hotels, Restaurants & Leisure		200		379
a	Budweiser Brewing Co. APAC Ltd.		Beverages		4,000		10,321
	BYD Co. Ltd.		Automobiles		400		3,384
	BYD Co. Ltd., H		Automobiles		2,000		10,450
	BYD Electronic International Co. Ltd.		Communications Equipment		3,000		5,008
	Caitong Securities Co. Ltd., A		Capital Markets		200		285



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Camel Group Co. Ltd., A		Electrical Equipment		200	$	238
a	CAR Inc.		Road & Rail		2,000		1,117
	CECEP Solar Energy Co. Ltd.		Independent Power and Renewable Electricity Producers		800		365
	CECEP Wind-Power Corp.		Independent Power and Renewable Electricity Producers		400		121
	Central China Securities Co. Ltd., A		Capital Markets		600		414
	Central China Securities Co. Ltd., H		Capital Markets		2,000		328
a	CGN Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		2,400		985
	CGN Power Co. Ltd., H		Independent Power and Renewable Electricity Producers		38,000		8,727
	Changjiang Securities Co. Ltd.		Capital Markets		600		541
	Chaozhou Three-Circle Group Co. Ltd.		Electronic Equipment, Instruments & Components		600		1,544
	Chengdu Xingrong Environment Co. Ltd.		Water Utilities		800		516
a	China Aerospace Times Electronics Co. Ltd., A		Aerospace & Defense		400		359
	China Aoyuan Group Ltd.		Real Estate Management & Development		4,000		4,686
	China Avic Avionics Equipment Co. Ltd., A		Aerospace & Defense		200		365
	China Baoan Group Co. Ltd.		Industrial Conglomerates		200		166
a	China Biologic Products Holdings Inc.		Biotechnology		90		9,714
	China Cinda Asset Management Co. Ltd., H		Capital Markets		32,000		6,069
	China CITIC Bank Corp. Ltd., A		Banks		2,200		1,608
	China CITIC Bank Corp. Ltd., H		Banks		30,000		14,824
	China Coal Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		600		338
	China Coal Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		8,000		2,219
	China Communications Construction Co. Ltd., A		Construction & Engineering		800		932
	China Communications Construction Co. Ltd., H		Construction & Engineering		16,000		11,147
	China Communications Services Corp. Ltd.		Construction & Engineering		8,000		5,821
	China Conch Venture Holdings Ltd.		Machinery		5,000		22,320
	China Construction Bank Corp., A		Banks		1,600		1,431
	China Construction Bank Corp., H		Banks		310,000		253,571
a	China COSCO Holdings Co. Ltd., A		Marine		800		464
	China CYTS Tours Holding Co. Ltd., A		Hotels, Restaurants & Leisure		200		273
a,b,c	China East Education Holdings Ltd., 144A, Reg S		Diversified Consumer Services		2,000		3,241
a	China Eastern Airlines Corp. Ltd., A		Airlines		1,200		699
a	China Eastern Airlines Corp. Ltd., H		Airlines		8,000		2,735
	China Enterprise Co. Ltd., A		Real Estate Management & Development		600		361
	China Everbright Bank Co. Ltd., A		Banks		6,200		3,158
	China Everbright Bank Co. Ltd., H		Banks		16,000		6,131
	China Everbright International Ltd.		Commercial Services & Supplies		11,703		6,719
	China Everbright Ltd.		Capital Markets		4,000		5,904
	China Evergrande Group		Real Estate Management & Development		6,000		9,955
	China Film Co. Ltd., A		Entertainment		200		333
	China Foods Ltd.		Food Products		4,000		1,466
	China Fortune Land Development Co. Ltd., A		Real Estate Management & Development		400		1,179
	China Galaxy Securities Co. Ltd., A		Capital Markets		400		536
	China Galaxy Securities Co. Ltd., H		Capital Markets		12,000		5,821
	China Gas Holdings Ltd.		Gas Utilities		6,400		22,294
	China Gezhouba Group Co. Ltd., A		Construction & Engineering		800		788
	China Grand Automotive Services Group Co. Ltd., A		Specialty Retail		600		345
	China Great Wall Securities Co. Ltd., A		Capital Markets		400		683
	China Greatwall Technology Group Co. Ltd.		Technology Hardware, Storage & Peripherals		400		674
	China Hongqiao Group Ltd.		Metals & Mining		9,000		3,832



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	China Huarong Asset Management Co. Ltd., H		Capital Markets		36,000	$	4,552
	China International Capital Corp. Ltd., H		Capital Markets		4,000		6,472
	China International Marine Containers (Group) Co. Ltd., H		Machinery		1,320		1,233
	China International Marine Containers Group Co. Ltd.		Machinery		600		653
	China International Travel Service Corp. Ltd., A		Specialty Retail		400		3,792
	China Jinmao Holdings Group Ltd.		Real Estate Management & Development		16,000		10,363
	China Jushi Co. Ltd., A		Construction Materials		600		669
	China Lesso Group Holdings Ltd.		Building Products		4,000		5,274
	China Life Insurance Co. Ltd., A		Insurance		1,000		3,716
	China Life Insurance Co. Ltd., H		Insurance		24,000		47,004
a	China Literature Ltd.		Media		800		3,179
	China Lodging Group Ltd., ADR		Hotels, Restaurants & Leisure		360		10,343
	China Longyuan Power Group Corp.		Independent Power and Renewable Electricity Producers		12,000		6,595
	China Medical System Holdings Ltd.		Pharmaceuticals		4,000		4,330
	China Meheco Co. Ltd., A		Trading Companies & Distributors		200		424
	China Mengniu Dairy Co. Ltd.		Food Products		8,000		27,816
	China Merchants Bank Co. Ltd., A		Banks		3,200		14,573
	China Merchants Bank Co. Ltd., H		Banks		12,000		54,187
	China Merchants Energy Shipping Co. Ltd., A		Oil, Gas & Consumable Fuels		600		541
	China Merchants Expressway Network & Technology Holdings Co. Ltd.		Transportation Infrastructure		200		196
	China Merchants Port Holdings Co. Ltd.		Transportation Infrastructure		4,000		4,572
	China Merchants Securities Co. Ltd.		Capital Markets		2,800		3,107
	China Merchants Securities Co. Ltd., A		Capital Markets		800		1,932
	China Merchants Shekou Industrial Zone Holdings Co. Ltd., A		Real Estate Management & Development		1,000		2,325
	China Minsheng Banking Corp. Ltd., A		Banks		6,400		5,156
	China Minsheng Banking Corp. Ltd., H		Banks		21,000		15,606
	China Mobile Ltd.		Wireless Telecommunication Services		18,000		133,881
	China Molybdenum Co. Ltd., A		Metals & Mining		1,000		490
	China Molybdenum Co. Ltd., H		Metals & Mining		12,000		3,360
	China National Building Material Co. Ltd., H		Construction Materials		12,000		13,113
	China National Nuclear Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		1,600		993
	China Nonferrous Metal Industry’s Foreign Engineeringand Construction Co. Ltd.		Metals & Mining		400		252
	China Northern Rare Earth Group High-Tech Co. Ltd., A		Metals & Mining		600		761
	China Oilfield Services Ltd., A		Energy Equipment & Services		200		330
	China Oilfield Services Ltd., H		Energy Equipment & Services		4,000		3,091
	China Orient Securities Co. Ltd., A		Capital Markets		1,400		1,801
	China Overseas Land & Investment Ltd.		Real Estate Management & Development		12,000		37,234
	China Pacific Insurance Group Co. Ltd., A		Insurance		1,200		4,778
	China Pacific Insurance Group Co. Ltd., H		Insurance		8,800		26,624
	China Petroleum & Chemical Corp., A		Oil, Gas & Consumable Fuels		6,600		4,125
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		80,000		39,428
	China Power International Development Ltd.		Independent Power and Renewable Electricity Producers		16,000		2,973
	China Railway Construction Corp. Ltd., A		Construction & Engineering		1,600		2,219
	China Railway Construction Corp. Ltd., H		Construction & Engineering		7,000		7,839
	China Railway Group Ltd., H		Construction & Engineering		14,000		7,460
	China Railway Hi-tech Industry Co. Ltd., A		Construction & Engineering		400		537
b	China Railway Signal & Communication Corp. Ltd., H, Reg S		Electronic Equipment, Instruments & Components		6,000		3,027
	China Railway Tielong Container Logistics Co. Ltd., A		Road & Rail		400		269



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	China Reinsurance Group Corp., H		Insurance		22,000	$	2,555
	China Resources Beer Holdings Co. Ltd.		Beverages		6,000		27,403
	China Resources Cement Holdings Ltd.		Construction Materials		8,000		9,547
	China Resources Double Crane Pharmaceutical Co. Ltd., A		Pharmaceuticals		200		357
	China Resources Gas Group Ltd.		Gas Utilities		3,000		15,095
	China Resources Land Ltd.		Real Estate Management & Development		9,000		37,157
	China Resources Pharmaceutical Group Ltd.		Pharmaceuticals		6,000		3,600
	China Resources Power Holdings Co. Ltd.		Independent Power and Renewable Electricity Producers		7,000		7,713
	China Resources Sanjiu Medical & Pharmaceutical Co. Ltd.		Pharmaceuticals		200		786
	China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		1,400		3,208
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		12,000		22,852
	China Shipbuilding Industry Co. Ltd., A		Machinery		3,200		1,901
	China Shipping Container Lines Co. Ltd., A		Marine		600		172
	China Shipping Development Co. Ltd., A		Oil, Gas & Consumable Fuels		400		423
	China South City Holdings Ltd.		Real Estate Management & Development		8,000		774
	China South Publishing & Media Group Co. Ltd., A		Media		400		600
	China Southern Airlines Co. Ltd., A		Airlines		1,200		872
	China Southern Airlines Co. Ltd., H		Airlines		4,000		1,719
	China Spacesat Co. Ltd., A		Aerospace & Defense		200		824
	China State Construction Engineering Corp. Ltd., A		Construction & Engineering		7,200		5,353
	China State Construction International Holdings Ltd.		Construction & Engineering		4,000		2,962
	China Taiping Insurance Holdings Co. Ltd.		Insurance		5,600		9,176
	China Telecom Corp. Ltd., H		Diversified Telecommunication Services		48,000		14,553
b,c	China Tower Corp. Ltd., H, 144A, Reg S		Diversified Telecommunication Services		152,000		34,122
	China Traditional Chinese Medicine Co. Ltd.		Pharmaceuticals		12,000		5,465
	China TransInfo Technology Co. Ltd.		IT Services		600		1,727
	China Travel International Investment Hong Kong Ltd.		Hotels, Restaurants & Leisure		8,000		1,001
	China Unicom (Hong Kong) Ltd.		Diversified Telecommunication Services		16,000		9,227
	China United Network Communications Ltd., A		Wireless Telecommunication Services		5,200		3,829
	China Vanke Co. Ltd., A		Real Estate Management & Development		1,800		6,514
	China Vanke Co. Ltd., H		Real Estate Management & Development		5,200		17,141
	China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		2,600		6,342
	China Zhongwang Holdings Ltd.		Metals & Mining		4,800		1,263
	Chinese Universe Publishing and Media Group Co. Ltd., A		Media		200		340
	Chongqing Changan Automobile Co. Ltd.		Automobiles		600		896
	Chongqing Changan Automobile Co. Ltd., B		Automobiles		2,600		1,265
	Chongqing Dima Industry Co. Ltd., A		Real Estate Management &Development		400		157
	Chongqing Fuling Zhacai Group Co. Ltd., A		Food Products		200		890
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks		8,000		3,282
	Chongqing Water Group Co. Ltd., A		Water Utilities		200		147
	Chongqing Zhifei Biological Products Co. Ltd.		Biotechnology		400		3,803
	CIFI Holdings Group Co. Ltd.		Real Estate Management & Development		12,000		8,670



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Cinda Real Estate Co. Ltd., A		Real Estate Management & Development		400	$	197
a	CITIC Guoan Information Industry Co. Ltd.		Media		400		176
	Citic Pacific Ltd.		Industrial Conglomerates		18,000		18,834
	Citic Pacific Special Steel Group Co. Ltd., A		Metals & Mining		400		1,417
	CITIC Securities Co. Ltd., A		Capital Markets		1,800		5,627
	CITIC Securities Co. Ltd., H		Capital Markets		8,000		14,656
	CMST Development Co. Ltd., A		Air Freight & Logistics		200		128
	CNOOC Ltd.		Oil, Gas & Consumable Fuels		52,000		54,543
	Contemporary Amperex Technology Co. Ltd.		Electrical Equipment		200		3,397
	COSCO SHIPPING Development Co. Ltd., H		Marine		16,000		1,672
	COSCO SHIPPING Energy Transportation Co. Ltd., H		Oil, Gas & Consumable Fuels		4,000		2,152
a	COSCO Shipping Holdings Co. Ltd.		Marine		8,000		2,209
	COSCO SHIPPING Ports Ltd.		Transportation Infrastructure		8,183		3,948
	Country Garden Holdings Co. Ltd.		Real Estate Management & Development		26,000		31,465
	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		4,000		16,256
	CRRC Corp. Ltd., A		Machinery		3,600		3,332
	CRRC Corp. Ltd., H		Machinery		14,000		7,117
	CSC Financial Co. Ltd., A		Capital Markets		200		876
	CSC Financial Co. Ltd., H		Capital Markets		3,000		2,419
	CSG Holding Co. Ltd.		Construction Materials		3,101		856
	CSG Holding Co. Ltd.		Construction Materials		400		248
	CSPC Pharmaceutical Group Ltd.		Pharmaceuticals		14,000		28,033
a	CSSC Offshore and Marine Engineering Group Co. Ltd.		Machinery		2,000		1,195
a	CSSC Offshore and Marine Engineering Group Co. Ltd., A		Machinery		200		398
	Da An Gene Co. Ltd. of Sun Yat-Sen University		Biotechnology		200		489
	Dali Foods Group Co. Ltd.		Food Products		7,000		4,877
	Dalian Port PDA Co. Ltd., A		Transportation Infrastructure		1,400		342
	Daqin Railway Co. Ltd., A		Road & Rail		2,400		2,302
	Datang International Power Generation Co. Ltd., H		Independent Power and Renewable Electricity Producers		16,000		2,147
a	Datong Coal Industry Co. Ltd., A		Oil, Gas & Consumable Fuels		400		199
	Dawning Information Industry Co. Ltd., A		Technology Hardware, Storage & Peripherals		200		1,232
	Dazhong Transportation (Group) Co. Ltd., B		Road & Rail		2,400		859
	Dazhong Transportation Group Co. Ltd., A		Road & Rail		800		389
	DHC Software Co. Ltd.		IT Services		600		1,094
	Digital China Information Service Co. Ltd.		IT Services		200		423
	Dong-E-E-Jiao Co. Ltd., A		Pharmaceuticals		200		726
	Dongfang Electric Corp. Ltd., A		Electrical Equipment		400		476
	Dongfang Electric Corp. Ltd., H		Electrical Equipment		800		395
	Dongfeng Motor Group Co. Ltd., H		Automobiles		8,000		5,274
	Dongxing Securities Co. Ltd., A		Capital Markets		400		616
	East Money Information Co. Ltd.		Capital Markets		1,000		2,264
	ENN Ecological Holdings Co. Ltd., A		Chemicals		200		244
	ENN Energy Holdings Ltd.		Gas Utilities		2,400		23,239
	Eternal Asia Supply Chain Management Ltd.		Commercial Services & Supplies		200		109
a	Eve Energy Co. Ltd.		Electrical Equipment		200		1,640
	Everbright Securities Co. Ltd., A		Capital Markets		600		932
	Everbright Securities Co. Ltd., H		Capital Markets		400		255



franklintempleton.com	Annual Report	147

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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
a	Fangda Carbon New Material Co. Ltd.		Electrical Equipment		400	$	507
	Far East Horizon Ltd.		Diversified Financial Services		8,000		6,451
	FAW CAR Co. Ltd.		Automobiles		200		246
a	FIH Mobile Ltd.		Electronic Equipment, Instruments & Components		10,000		1,122
	Financial Street Holdings Co. Ltd.		Real Estate Management & Development		600		554
	First Capital Securities Co. Ltd.		Capital Markets		200		195
	Focus Media Information Technology Co. Ltd.		Media		2,000		1,247
	Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		200		3,532
	Fosun International Ltd.		Industrial Conglomerates		8,000		9,248
	Founder Securities Co. Ltd., A		Capital Markets		1,200		1,216
	Foxconn Industrial Internet Co. Ltd., A		Electronic Equipment, Instruments & Components		600		1,118
	Fujian Funeng Co. Ltd., A		Independent Power and Renewable Electricity Producers		200		232
	Fujian Longking Co. Ltd., A		Machinery		200		255
	Fujian Sunner Development Co. Ltd.		Food Products		200		667
	Fuyao Group Glass Industries Co. Ltd., H		Auto Components		2,400		5,134
	Ganfeng Lithium Co. Ltd.		Metals & Mining		200		1,136
	Ganfeng Lithium Co. Ltd., H		Metals & Mining		400		1,282
a	GCL System Integration Technology Co. Ltd.		Semiconductors & Semiconductor Equipment		800		342
	GD Power Development Co. Ltd., A		Independent Power and Renewable Electricity Producers		3,800		1,088
a	GDS Holdings Ltd., ADR		IT Services		182		10,551
	Geely Automobile Holdings Ltd.		Automobiles		16,000		23,615
	GEM Co. Ltd.		Metals & Mining		800		525
	Gemdale Corp., A		Real Estate Management & Development		600		1,193
a	Genscript Biotech Corp.		Life Sciences Tools & Services		4,000		6,482
	GF Securities Co. Ltd.		Capital Markets		800		1,544
	GF Securities Co. Ltd., H		Capital Markets		5,200		5,575
	Global Top E-Commerce Co. Ltd.		Internet & Direct Marketing Retail		200		164
	Glodon Co. Ltd.		Software		200		1,204
	GoerTek Inc.		Electronic Equipment, Instruments & Components		1,000		2,315
a	GOME Retail Holdings Ltd.		Specialty Retail		30,000		2,787
	Gosuncn Technology Group Co. Ltd.		Communications Equipment		200		183
	Grandjoy Holdings Group Co. Ltd., A		Real Estate Management & Development		400		304
	Great Wall Motor Co. Ltd., A		Automobiles		400		502
	Great Wall Motor Co. Ltd., H		Automobiles		11,000		7,053
	Greattown Holdings Ltd., A		Real Estate Management & Development		200		198
	Gree Electric Appliances Inc. of Zhuhai, A		Household Durables		1,000		7,364
	Greendland Holdings Corp. Ltd., A		Real Estate Management & Development		600		458
	Greentown China Holdings Ltd.		Real Estate Management & Development		3,000		2,729
	GRG Banking Equipment Co. Ltd.		Technology Hardware, Storage & Peripherals		400		487
a	GSX Techedu Inc., ADR		Diversified Consumer Services		152		6,439
	Guangdong Baolihua New Energy Stock Co. Ltd.		Independent Power and Renewable Electricity Producers		600		440
	Guangdong Electric Power Development Co. Ltd., B		Independent Power and Renewable Electricity Producers		4,000		1,073
	Guangdong Ellington Electronics Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		200		291
a	Guangdong Golden Dragon Development Inc.		Capital Markets		200		358
	Guangdong Haid Group Co. Ltd.		Food Products		200		1,134
	Guangdong HEC Technology Holding Co. Ltd., A		Metals & Mining		400		394
	Guangdong Investment Ltd.		Water Utilities		8,000		15,420
a	Guangdong LY Intelligent Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		1,600		1,855
	Guanghui Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		1,200		437
	Guangshen Railway Co. Ltd., H		Road & Rail		12,000		2,555
	Guangxi Guiguan Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		600		387



148	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Guangxi Liugong Machinery Co. Ltd.		Machinery		800	$	707
	Guangxi Wuzhou Zhongheng Group Co. Ltd., A		Pharmaceuticals		1,000		453
	Guangzhou Automobile Group Co. Ltd., A		Automobiles		200		298
	Guangzhou Automobile Group Co. Ltd., H		Automobiles		12,000		12,061
	Guangzhou Baiyun International Airport Co. Ltd., A		Transportation Infrastructure		200		354
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		600		1,618
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., A		Pharmaceuticals		200		888
	Guangzhou Haige Communications Group Inc. Co.		Communications Equipment		400		637
	Guangzhou R&F Properties Co. Ltd., H		Real Estate Management & Development		3,200		4,178
	Guangzhou Zhujiang Brewery Co. Ltd.		Beverages		200		196
	Guizhou Panjiang Refined Coal Co. Ltd., A		Oil, Gas & Consumable Fuels		800		602
a	Guizhou Xinbang Pharmaceutical Co. Ltd.		Pharmaceuticals		200		131
	Guosen Securities Co. Ltd.		Capital Markets		600		940
a	Guosheng Financial Holding Inc.		Electrical Equipment		200		275
	Guotai Junan Securities Co. Ltd.		Capital Markets		3,200		4,764
	Guotai Junan Securities Co. Ltd., A		Capital Markets		1,000		2,297
	Guoxuan High-Tech Co. Ltd.		Electrical Equipment		200		493
	Guoyuan Securities Co. Ltd.		Capital Markets		400		470
b,c	Haidilao International Holding Ltd., 144A, Reg S		Hotels, Restaurants & Leisure		2,000		7,793
	Haier Electronics Group Co. Ltd.		Household Durables		4,000		10,657
	Haier Smart Home Co. Ltd., A		Household Durables		1,400		2,844
	Haitian International Holdings Ltd.		Machinery		2,000		3,716
	Haitong Securities Co. Ltd., A		Capital Markets		1,800		3,261
	Haitong Securities Co. Ltd., H		Capital Markets		12,800		11,709
	Han’s Laser Technology Industry Group Co. Ltd., A		Machinery		200		795
	Hang Zhou Great Star Industrial Co. Ltd.		Household Durables		200		264
	Hangzhou Binjiang Real Estate Group Co. Ltd.		Real Estate Management & Development		400		235
	Hangzhou Century Co. Ltd.		Electronic Equipment, Instruments & Components		200		319
	Hangzhou Hikvision Digital Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		1,800		7,085
	Hangzhou Oxygen Plant Group Co. Ltd.		Machinery		200		332
	Hangzhou Robam Appliances Co. Ltd., A		Household Durables		200		802
a	Hangzhou Shunwang Technology Co. Ltd.		Entertainment		200		606
	Hangzhou Tigermed Consulting Co. Ltd.		Life Sciences Tools & Services		200		1,807
a	Hansoh Pharmaceutical Group Co. Ltd.		Pharmaceuticals		2,000		6,786
a	Harbin Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		400		227
	Health & Happiness H&H International Holdings Ltd.		Food Products		1,000		3,696
	Heilan Home Co. Ltd., A—SHSC		Specialty Retail		600		536
	Heilongjiang Agriculture Co. Ltd., A		Food Products		400		973
	Henan Senyuan Electric Co. Ltd.		Electrical Equipment		200		167
	Henan Shuanghui Investment & Development Co. Ltd.		Food Products		800		4,436
	Henan Zhongyuan Expressway Co. Ltd., A		Transportation Infrastructure		400		213
	Hengan International Group Co. Ltd.		Personal Products		2,000		15,056
	Hengdian Group DMEGC Magnetics Co. Ltd.		Electronic Equipment, Instruments & Components		400		564
	Hengli Petrochemical Co. Ltd., A		Chemicals		960		1,690
a	HengTen Networks Group Ltd.		Internet & Direct Marketing Retail		48,000		452
	Hesteel Co. Ltd.		Metals & Mining		1,400		421
	Holitech Technology Co. Ltd.		Electronic Equipment, Instruments & Components		400		314
a	Hongta Securities Co. Ltd., A		Capital Markets		400		1,131
	Hopson Development Holdings Ltd.		Real Estate Management & Development		4,000		3,571
	Huaan Securities Co. Ltd., A		Capital Markets		400		436



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Huabao Flavours & Fragrances Co. Ltd.		Chemicals		200	$	890
	Huadian Fuxin Energy Corp. Ltd., H		Independent Power and Renewable Electricity Producers		16,000		2,642
	Huadian Power International Corp. Ltd., A		Independent Power and Renewable Electricity Producers		600		292
	Huadian Power International Corp. Ltd., H		Independent Power and Renewable Electricity Producers		8,000		2,384
	Huadong Medicine Co. Ltd., A		Health Care Providers & Services		200		492
	Huafa Industrial Co. Ltd. Zhuhai, A		Real Estate Management & Development		400		363
	Huagong Tech Co. Ltd.		Electronic Equipment, Instruments & Components		200		557
	Hualan Biological Engineering Inc.		Biotechnology		400		2,704
	Huaneng Power International Inc., A		Independent Power and Renewable Electricity Producers		800		529
	Huaneng Power International Inc., H		Independent Power and Renewable Electricity Producers		16,000		6,007
	Huapont Life Sciences Co. Ltd.		Chemicals		600		412
	Huatai Securities Co. Ltd., A		Capital Markets		1,400		3,403
	Huatai Securities Co. Ltd., H		Capital Markets		6,000		8,918
	Huaxi Securities Co. Ltd.		Capital Markets		400		594
	Huaxia Bank Co. Ltd., A		Banks		2,000		1,826
	Huaxin Cement Co. Ltd., A		Construction Materials		200		657
	Huaxin Cement Co. Ltd., B		Construction Materials		1,000		1,532
	Huayu Automotive Systems Co. Ltd.		Auto Components		800		2,431
	Hubei Biocause Pharmaceutical Co. Ltd.		Insurance		1,400		1,169
	Hubei Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers		800		400
	Hubei Xinyangfeng Fertilizer Co. Ltd.		Chemicals		400		458
	Hunan Gold Corp. Ltd.		Metals & Mining		200		222
a	Hunan Valin Steel Co. Ltd.		Metals & Mining		600		333
	Hundsun Technologies Inc., A		Software		200		2,480
	Huolinhe Opencut Coal Industry Corp. Ltd. of Inner Mongolia		Oil, Gas & Consumable Fuels		200		207
	Hytera Communications Corp. Ltd., A		Communications Equipment		200		164
	HyUnion Holding Co. Ltd.		Auto Components		200		139
	Iflytek Co. Ltd.		Software		400		1,945
	Industrial and Commercial Bank of China Ltd.		Banks		13,200		9,591
	Industrial and Commercial Bank of China Ltd., H		Banks		258,000		176,751
	Industrial Bank Co. Ltd., A		Banks		3,600		8,080
	Industrial Securities Co. Ltd., A		Capital Markets		800		705
	Inner Mongolia BaoTou Steel Union Co. Ltd., A		Metals & Mining		4,200		681
	Inner Mongolia First Machinery Group Co. Ltd., A		Machinery		200		257
	Inner Mongolia MengDian HuaNeng Thermal Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		1,200		437
	Inner Mongolia Yili Industrial Group Co. Ltd., A		Food Products		1,200		5,055
	Inner Mongolia Yitai Coal Co. Ltd., B		Oil, Gas & Consumable Fuels		2,400		1,567
a	Innovent Biologics Inc.		Biotechnology		3,000		12,657
	Inspur Electronic Information Industry Co. Ltd.		Technology Hardware, Storage & Peripherals		424		2,320
a,d	Iqiyi Inc., ADR		Entertainment		714		12,709
a	JD.com Inc., ADR		Internet & Direct Marketing Retail		2,648		107,244
	Jiangsu Expressway Co. Ltd., A		Transportation Infrastructure		200		277
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		4,000		4,464
	Jiangsu Hengrui Medicine Co. Ltd., A		Pharmaceuticals		800		10,387
	Jiangsu King’s Luck Brewery JSC Ltd.		Beverages		200		794
	Jiangsu Linyang Energy Co. Ltd., A		Electrical Equipment		200		146
	Jiangsu Yanghe Brewery JST Co. Ltd., A		Beverages		200		2,366
	Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.		Health Care Equipment & Supplies		200		1,024



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Jiangsu Zhangjiagang Rural Commercial Bank Co. Ltd.		Banks		200	$	155
	Jiangsu Zhongnan Construction Group Co. Ltd.		Real Estate Management & Development		400		437
	Jiangsu Zhongtian Technology Co. Ltd., A		Electrical Equipment		400		542
	Jiangsu Zijin Rural Commercial Bank Co. Ltd., A		Banks		200		119
	Jiangxi Bank Co. Ltd., H		Banks		3,000		1,583
	Jiangxi Copper Co. Ltd., A		Metals & Mining		400		713
	Jiangxi Copper Co. Ltd., H		Metals & Mining		4,000		3,695
a	Jiangxi Special Electric Motor Co. Ltd.		Electrical Equipment		200		61
	Jiangxi Zhengbang Technology Co. Ltd., A		Food Products		400		1,076
	Jiayuan International Group Ltd.		Real Estate Management & Development		4,000		1,626
	Jilin Aodong Pharmaceutical Group Co. Ltd.		Pharmaceuticals		400		890
	Jinduicheng Molybdenum Co. Ltd., A		Metals & Mining		600		512
	Jinke Properties Group Co. Ltd.		Real Estate Management & Development		800		898
a,b,c	Jinxin Fertility Group Ltd., 144A, Reg S		Health Care Providers & Services		4,000		4,438
	Jinyu Bio-Technology Co. Ltd., A		Biotechnology		600		1,805
	Jiuzhitang Co. Ltd.		Pharmaceuticals		200		223
	Jizhong Energy Resources Co. Ltd.		Oil, Gas & Consumable Fuels		1,000		426
	JoInc. Pharmaceutical Group Industry Co. Ltd., A		Pharmaceuticals		400		647
	Jointo Energy Investment Co. Ltd.		Independent Power and Renewable Electricity Producers		200		123
	Jointown Pharmaceutical Group Co. Ltd., A		Health Care Providers & Services		200		480
	Jonjee Hi-Tech Industrial And Commercial Holding Co. Ltd., A		Food Products		200		1,349
	Joyoung Co. Ltd.		Household Durables		200		794
a	JOYY Inc., ADR		Interactive Media & Services		166		8,841
	Kerry Logistics Network Ltd.		Air Freight & Logistics		2,000		2,480
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		3,000		7,029
	Kingdee International Software Group Co. Ltd.		Software		8,000		10,672
a	Kingsoft Corp. Ltd.		Software		2,000		6,528
a	Kuang-Chi Technologies Co. Ltd.		Auto Components		200		207
	Kunlun Energy Co. Ltd.		Gas Utilities		8,000		4,676
	Kweichow Moutai Co. Ltd., A		Beverages		200		31,348
	KWG Group Holdings Ltd.		Real Estate Management & Development		6,000		8,531
	Lao Feng Xiang Co. Ltd., B		Textiles, Apparel & Luxury Goods		600		1,649
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		6,000		3,638
	Legend Holdings Corp., H		Technology Hardware, Storage & Peripherals		1,800		2,222
e	Legend Holdings Corp., rts., 2/20/49		Technology Hardware, Storage & Peripherals		123		—
	Lenovo Group Ltd.		Technology Hardware, Storage & Peripherals		24,000		12,881
	Lens Technology Co. Ltd.		Electronic Equipment, Instruments & Components		200		411
a	Leo Group Co. Ltd.		Media		1,200		623
	Lepu Medical Technology Beijing Co. Ltd.		Health Care Equipment & Supplies		200		1,022
	Leyard Optoelectronic Co. Ltd.		Electronic Equipment, Instruments & Components		200		177
	Li Ning Co. Ltd.		Textiles, Apparel & Luxury Goods		6,000		17,533
a	Liaoning Cheng Da Co. Ltd., A		Distributors		200		512
	Liuzhou Iron & Steel Co. Ltd., A		Metals & Mining		200		139
	Livzon Pharmaceutical Group Inc., H		Pharmaceuticals		780		2,873
	Logan Property Holdings Co. Ltd.		Real Estate Management & Development		4,000		6,172
	Lomon Billions Group Co. Ltd.		Chemicals		200		421
a	Loncin Motor Co. Ltd., A		Automobiles		400		188
b,c	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		5,000		24,352
	LONGi Green Energy Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		600		2,103



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Luolai Lifestyle Technology Co. Ltd.		Textiles, Apparel & Luxury Goods		200	$	251
	Luxi Chemical Group Co. Ltd.		Chemicals		400		460
	Luxshare Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		920		4,953
	Luye Pharma Group Ltd.		Pharmaceuticals		6,000		2,926
	Luzhou Laojiao Co. Ltd., A		Beverages		200		2,078
	Maanshan Iron & Steel Co. Ltd., A		Metals & Mining		800		284
	Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		4,000		1,254
a	Mango Excellent Media Co. Ltd.		Entertainment		340		2,091
	Meinian Onehealth Healthcare Holdings Co. Ltd.		Health Care Providers & Services		520		866
a,b,c	Meitu Inc., 144A, Reg S		Technology Hardware, Storage & Peripherals		7,000		1,337
a,b	Meituan Dianping, B, Reg S		Internet & Direct Marketing Retail		11,400		137,740
	Metallurgical Corp. of China Ltd.		Construction & Engineering		10,000		1,755
	Metallurgical Corp. of China Ltd., A		Construction & Engineering		2,800		1,035
	Minth Group Ltd.		Auto Components		2,000		4,289
a	MMG Ltd.		Metals & Mining		8,000		1,146
	Momo Inc., ADR		Interactive Media & Services		356		7,722
a	Montnets Rongxin Technology Group Co. Ltd.		Software		200		379
	Muyuan Foodstuff Co. Ltd.		Food Products		200		3,448
	MYS Group Co. Ltd.		Containers & Packaging		200		139
a	NanJi E-Commerce Co. Ltd.		Media		400		655
	Nanjing Iron & Steel Co. Ltd., A		Metals & Mining		600		266
	Nanjing Securities Co. Ltd., A		Capital Markets		200		439
	Nari Technology Development Co. Ltd., A		Electrical Equipment		1,000		2,786
	NavInfo Co. Ltd.		Household Durables		200		397
	NetEase Inc., ADR		Entertainment		236		75,747
	New China Life Insurance Co. Ltd., A		Insurance		400		2,246
	New China Life Insurance Co. Ltd., H		Insurance		3,000		9,347
	New Hope Liuhe Co. Ltd.		Food Products		1,000		4,434
a	New Oriental Education & Technology Group Inc., ADR		Diversified Consumer Services		452		48,924
	Newland Digital Technology Co. Ltd.		Software		200		446
	Nexteer Automotive Group Ltd.		Auto Components		6,000		3,011
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		6,000		5,473
	Ninestar Corp.		Technology Hardware, Storage & Peripherals		400		1,514
a	Ningbo Joyson Electronic Corp.		Auto Components		600		1,591
	Ningbo Sanxing Medical Electric Co. Ltd., A		Electrical Equipment		200		208
	Ningbo Zhoushan Port Co. Ltd., A		Transportation Infrastructure		600		300
a,d	NIO Inc., ADR		Automobiles		2,428		6,750
	North Huajin Chemical Industries Co. Ltd.		Chemicals		800		635
	Northeast Securities Co. Ltd.		Capital Markets		400		468
	NSFOCUS Information Technology Co. Ltd.		Software		200		531
	Oceanwide Holdings Co. Ltd.		Real Estate Management & Development		400		223
	Offshore Oil Engineering Co. Ltd., A		Energy Equipment & Services		1,000		690
a	OFILM Group Co. Ltd.		Electronic Equipment, Instruments & Components		400		770
	ORG Technology Co. Ltd.		Containers & Packaging		400		227
	Orient Securities Co. Ltd. of China, H		Capital Markets		3,200		1,680
	Oriental Pearl Group Co. Ltd., A		Media		400		494
a	Ourpalm Co. Ltd.		Entertainment		800		585
a	Pangang Group Vanadium Titanium & Resources Co. Ltd., A		Metals & Mining		1,400		438
	People’s Insurance Co. Group of China Ltd., H		Insurance		28,000		9,248
	Perfect World Co. Ltd.		Entertainment		200		1,342
	PetroChina Co. Ltd., H		Oil, Gas & Consumable Fuels		72,000		26,381
	PICC Property and Casualty Co. Ltd., H		Insurance		20,000		19,353
a	Pinduoduo Inc., ADR		Internet & Direct Marketing Retail		368		13,259
	Ping An Bank Co. Ltd., A		Banks		3,000		5,417



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
a,b	Ping An Healthcare and Technology Co. Ltd., Reg S		Health Care Technology		1,200	$	11,194
	Ping An Insurance (Group) Co. of China Ltd., H		Insurance		18,000		176,844
	Ping An Insurance Group Co. of China Ltd., A		Insurance		1,800		17,565
a	Pingdingshan Tianan Coal Mining Co. Ltd., A		Oil, Gas & Consumable Fuels		600		352
	Poly Developments and Holdings Group Co. Ltd., A		Real Estate Management & Development		2,400		5,035
	Poly Property Group Co. Ltd.		Real Estate Management & Development		4,000		1,357
	Postal Savings Bank of China Co. Ltd., H		Banks		32,000		19,487
	Power Construction Corp. of China Ltd.		Construction & Engineering		2,600		1,445
	Qingdao Port International Co. Ltd., A		Transportation Infrastructure		200		164
b	Qingdao Port International Co. Ltd., H, Reg S		Transportation Infrastructure		4,000		2,188
	Qingdao TGOOD Electric Co. Ltd.		Electrical Equipment		200		551
	Rainbow Department Store Co. Ltd.		Multiline Retail		200		251
	Realcan Pharmaceutical Group Co. Ltd.		Health Care Providers & Services		200		153
	Red Star Macalline Group Corp. Ltd.		Real Estate Management & Development		2,000		1,275
	Red Star Macalline Group Corp. Ltd., A		Real Estate Management & Development		200		263
	RiseSun Real Estate Development Co. Ltd.		Real Estate Management & Development		600		656
	Rongsheng Petro Chemical Co. Ltd.		Chemicals		200		309
	SAIC Motor Corp. Ltd.		Automobiles		1,800		5,206
	Sanan Optoelectronics Co. Ltd., A		Semiconductors & Semiconductor Equipment		1,000		2,702
	Sansteel Minguang Co. Ltd.		Metals & Mining		400		450
	Sany Heavy Industry Co. Ltd., A		Machinery		1,800		4,393
	SDIC Capital Co. Ltd., A		Capital Markets		400		691
	SDIC Power Holdings Co. Ltd., A		Independent Power and Renewable Electricity Producers		1,000		1,120
	Sealand Securities Co. Ltd.		Capital Markets		780		482
	Seazen Group Ltd.		Real Estate Management & Development		8,000		7,225
	Seazen Holdings Co. Ltd., A		Real Estate Management & Development		400		1,765
a	Semiconductor Manufacturing International Corp.		Semiconductors & Semiconductor Equipment		10,000		15,740
	SF Holding Co. Ltd.		Air Freight & Logistics		600		3,999
	Shaan Xi Provincial Natural Gas Co. Ltd.		Gas Utilities		400		327
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		1,000		1,055
	Shaanxi International Trust Co. Ltd.		Capital Markets		400		199
	Shandong Chenming Paper Holdings Ltd.		Paper & Forest Products		1,000		674
	Shandong Chenming Paper Holdings Ltd., B		Paper & Forest Products		2,800		1,011
	Shandong Chenming Paper Holdings Ltd., H		Paper & Forest Products		1,000		359
b,c	Shandong Gold Mining Co. Ltd., 144A, Reg S		Metals & Mining		1,500		3,603
	Shandong Gold Mining Co. Ltd., A		Metals & Mining		400		1,938
	Shandong Hi-speed Co. Ltd., A		Transportation Infrastructure		600		351
	Shandong Hualu Hengsheng Chemical Co. Ltd., A		Chemicals		200		443
a	Shandong Humon Smelting Co. Ltd.		Metals & Mining		200		359
	Shandong Linglong Tyre Co. Ltd., A		Auto Components		200		558
	Shandong Nanshan Aluminum Co. Ltd., A		Metals & Mining		2,800		814
	Shandong Publishing & Media Co. Ltd., A		Media		400		365
	Shandong Sun Paper Industry JSC Ltd.		Paper & Forest Products		400		495
	Shandong Weigao Group Medical Polymer Co. Ltd., H		Health Care Equipment & Supplies		8,000		10,115



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
a	Shandong Xinchao Energy Corp. Ltd., A		Oil, Gas & Consumable Fuels		400	$	99
	Shanghai 2345 Network Holding Group Co. Ltd.		Software		600		235
	Shanghai AJ Group Co. Ltd., A		Diversified Financial Services		200		224
	Shanghai Baosight Software Co. Ltd., A		Software		200		1,122
	Shanghai Baosight Software Co. Ltd., B		Software		1,100		2,227
	Shanghai Chlor-Alkali Chemical Co. Ltd., B		Chemicals		1,800		900
	Shanghai Construction Group Co. Ltd., A		Construction & Engineering		1,400		634
	Shanghai Dazhong Public Utilities Group Co. Ltd., A		Gas Utilities		400		228
	Shanghai Electric Group Co. Ltd., A		Electrical Equipment		1,000		649
	Shanghai Electric Group Co. Ltd., H		Electrical Equipment		16,000		4,232
	Shanghai Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		200		198
	Shanghai Environment Group Co. Ltd., A		Commercial Services & Supplies		200		331
	Shanghai Fosun Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		400		1,854
	Shanghai Fosun Pharmaceutical Group Co. Ltd., H		Pharmaceuticals		2,000		6,580
	Shanghai Huayi Group Co. Ltd., B		Chemicals		1,200		584
	Shanghai Industrial Development Co. Ltd., A		Real Estate Management & Development		200		144
	Shanghai Industrial Holdings Ltd.		Industrial Conglomerates		2,000		3,024
	Shanghai International Airport Co. Ltd., A		Transportation Infrastructure		400		3,432
	Shanghai International Port Group Co. Ltd., A		Transportation Infrastructure		1,400		885
	Shanghai Jinjiang International Hotels Co. Ltd.		Hotels, Restaurants & Leisure		600		851
	Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., B		Real Estate Management & Development		4,280		3,450
	Shanghai Mechanical and Electrical Industry Co. Ltd., A		Machinery		200		383
	Shanghai Pharmaceuticals Holding Co. Ltd., H		Health Care Providers & Services		3,000		5,101
	Shanghai Pudong Development Bank Co. Ltd., A		Banks		4,800		6,873
	Shanghai Putailai New Energy Technology Co. Ltd., A		Chemicals		200		1,693
a	Shanghai RAAS Blood Products Co. Ltd., A		Biotechnology		1,000		1,098
	Shanghai Shibei Hi-Tech Co. Ltd., B		Real Estate Management & Development		1,800		601
	Shanghai Shimao Co. Ltd., A		Real Estate Management & Development		800		460
	Shanghai Tunnel Engineering Co. Ltd., A		Construction & Engineering		800		624
	Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd.		Trading Companies & Distributors		800		751
	Shanghai Yuyuan Tourist Mart Group Co. Ltd., A		Specialty Retail		600		619
	Shanghai Zhangjiang High-Tech Park Development Co. Ltd., A		Real Estate Management & Development		200		342
	Shanghai Zhenhua Port Machinery Co. Ltd., B		Machinery		4,080		1,179
	Shanxi Lanhua Sci-Tech Venture Co. Ltd., A		Oil, Gas & Consumable Fuels		600		442
	Shanxi Lu’an Environmental Energy Development Co. Ltd., A		Oil, Gas & Consumable Fuels		400		329
	Shanxi Securities Co. Ltd.		Capital Markets		400		396
	Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A		Beverages		200		2,545



154	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Shanxi Xishan Coal & Electricity Power Co. Ltd.		Oil, Gas & Consumable Fuels		600	$	411
a	Shanying International Holding Co. Ltd., A		Paper & Forest Products		600		259
	Shenghe Resources Holding Co. Ltd., A		Metals & Mining		200		195
	Shengyi Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		400		1,494
	Shenwan Hongyuan Group Co. Ltd.		Capital Markets		4,400		2,738
a,b,c	Shenwan Hongyuan Group Co. Ltd., 144A, Reg S		Capital Markets		9,600		2,254
	Shenzhen Accord Pharmaceutical Co. Ltd., B		Health Care Providers & Services		800		2,056
	Shenzhen Agricultural Products Group Co. Ltd.		Food & Staples Retailing		200		204
	Shenzhen Airport Co. Ltd.		Transportation Infrastructure		400		431
	Shenzhen Aisidi Co. Ltd.		Electronic Equipment, Instruments & Components		200		163
	Shenzhen Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers		400		304
	Shenzhen Everwin Precision Technology Co. Ltd.		Electronic Equipment, Instruments & Components		600		1,596
	Shenzhen Expressway Co. Ltd., H		Transportation Infrastructure		4,000		4,077
	Shenzhen Gas Corporation Ltd., A		Gas Utilities		600		623
	Shenzhen Grandland Group Co. Ltd.		Construction & Engineering		400		208
	Shenzhen Huaqiang Industry Co. Ltd.		Real Estate Management & Development		200		337
	Shenzhen Inovance Technology Co. Ltd.		Machinery		200		729
	Shenzhen International Holdings Ltd.		Transportation Infrastructure		4,000		7,328
	Shenzhen Investment Ltd.		Real Estate Management & Development		12,000		3,747
	Shenzhen Jinjia Group Co. Ltd.		Containers & Packaging		200		260
	Shenzhen Kaifa Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		200		485
a	Shenzhen Kingdom Sci-Tech Co. Ltd., A		Software		200		474
	Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A		Health Care Equipment & Supplies		200		7,384
a	Shenzhen MTC Co. Ltd.		Household Durables		400		232
	Shenzhen Overseas Chinese Town Co. Ltd.		Hotels, Restaurants & Leisure		1,400		1,262
	Shenzhen Salubris Pharmaceuticals Co. Ltd.		Pharmaceuticals		200		501
a	Shenzhen Sunway Communication Co. Ltd.		Communications Equipment		200		968
	Shenzhen Yan Tian Port Holding Co. Ltd.		Transportation Infrastructure		200		125
	Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd.		Metals & Mining		600		301
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		2,400		25,514
a	Shijiazhuang Changshan BeiMing Technology Co. Ltd.		Textiles, Apparel & Luxury Goods		200		245
	Shijiazhuang Yiling Pharmaceutical Co. Ltd.		Pharmaceuticals		200		633
	Shimao Property Holdings Ltd.		Real Estate Management & Development		4,000		14,089
	Shougang Fushan Resources Group Ltd.		Metals & Mining		12,000		2,183
	Shui On Land Ltd.		Real Estate Management & Development		13,000		2,180
a	Siasun Robot & Automation Co. Ltd.		Machinery		200		385
a	Sichuan Hebang Biotechnology Co. Ltd., A		Chemicals		1,200		245
	Sichuan Kelun Pharmaceutical Co. Ltd.		Pharmaceuticals		600		1,751
	Sichuan Languang Development Co. Ltd., A		Real Estate Management & Development		200		170
	Sichuan Road & Bridge Co. Ltd., A		Construction & Engineering		1,000		543
	Sieyuan Electric Co. Ltd.		Electrical Equipment		200		508



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Sihuan Pharmaceutical Holdings Group Ltd.		Pharmaceuticals		14,000	$	1,409
a	SINA Corp.		Interactive Media & Services		214		6,814
	Sino-Ocean Land Holdings Ltd.		Real Estate Management & Development		10,000		2,542
	Sinochem International Corp., A		Trading Companies & Distributors		600		433
	Sinolink Securities Co. Ltd., A		Capital Markets		400		516
	Sinoma International Engineering Co.		Construction & Engineering		600		511
	Sinoma Science & Technology Co. Ltd.		Chemicals		200		321
	Sinopec Engineering Group Co. Ltd.		Construction & Engineering		5,000		2,103
a	Sinopec Oilfield Service Corp.		Energy Equipment & Services		8,000		609
a	Sinopec Oilfield Service Corp., A		Energy Equipment & Services		600		175
	Sinopec Shanghai Petrochemical Co. Ltd., A		Chemicals		600		329
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		12,000		2,973
	Sinopharm Group Co. Ltd., H		Health Care Providers & Services		4,000		9,000
	Sinotrans Ltd., A		Air Freight & Logistics		800		395
	Sinotrans Ltd., H		Air Freight & Logistics		6,000		1,479
	Sinotruk Hong Kong Ltd.		Machinery		2,000		3,329
	SITC International Holdings Co. Ltd.		Marine		2,000		1,871
	Soho China Ltd.		Real Estate Management & Development		7,000		3,612
	Songcheng Performance Development Co. Ltd.		Hotels, Restaurants & Leisure		200		705
	SooChow Securities Co. Ltd., A		Capital Markets		520		581
	Southwest Securities Co. Ltd., A		Capital Markets		800		510
	STO Express Co. Ltd.		Air Freight & Logistics		200		493
	Sunac China Holdings Ltd.		Real Estate Management & Development		8,000		37,054
	Sungrow Power Supply Co. Ltd.		Electrical Equipment		200		268
	Suning Universal Co. Ltd.		Real Estate Management & Development		1,000		429
	Suning.com Co. Ltd.		Specialty Retail		1,200		1,529
	Sunny Optical Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		2,000		26,939
	Sunwoda Electronic Co. Ltd., A		Electrical Equipment		200		399
	Suofeiya Home Collection Co. Ltd.		Household Durables		200		507
	Suzhou Gold Mantis Construction Decoration Co. Ltd.		Construction & Engineering		400		463
	Tahoe Group Co. Ltd.		Real Estate Management & Development		200		146
a	TAL Education Group, ADR		Diversified Consumer Services		1,130		60,184
	Tangshan Jidong Cement Co. Ltd.		Construction Materials		200		553
	TangShan Port Group Co. Ltd., A		Transportation Infrastructure		800		255
	Tangshan Sanyou Chemical Industries Co. Ltd., A		Chemicals		400		283
	Tasly Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		200		390
	TCL Corp.		Household Durables		2,000		1,168
	Tencent Holdings Ltd.		Interactive Media & Services		19,000		931,995
a	Tencent Music Entertainment Group, ADR		Entertainment		384		3,863
a	The China Pacific Securities Co. Ltd., A		Capital Markets		1,000		468
	Tian Di Science & Technology Co. Ltd., A		Machinery		800		339
	Tianfeng Securities Co. Ltd., A		Capital Markets		1,040		751
	Tianjin Capital Environmental Protection Group Co. Ltd., A		Commercial Services & Supplies		200		202
	Tianjin Chase Sun Pharmaceutical Co. Ltd.		Pharmaceuticals		1,000		694
	Tianjin Zhonghuan Semiconductor Co. Ltd.		Semiconductors & Semiconductor Equipment		400		806
	Tianma Microelectronics Co. Ltd.		Electronic Equipment, Instruments & Components		800		1,504
	Tianqi Lithium Corp.		Chemicals		260		677
	Times China Holdings Ltd.		Real Estate Management & Development		2,000		3,349
a	Times Neighborhood Holdings Ltd.		Commercial Services & Supplies		585		468
	Tingyi Cayman Islands Holding Corp.		Food Products		4,000		6,544
a,b	Tongcheng-Elong Holdings Ltd., Reg S		Internet & Direct Marketing Retail		2,400		3,375
	Tongding Interconnection Information Co. Ltd.		Communications Equipment		200		162
	Tonghua Dongbao Pharmaceutical Co. Ltd.		Pharmaceuticals		400		599
	Tongkun Group Co. Ltd., A		Chemicals		200		331



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Tongling Nonferrous Metals Group Co. Ltd.		Metals & Mining		1,400	$	393
	Tongwei Co. Ltd., A		Food Products		800		1,310
	Towngas China Co. Ltd.		Gas Utilities		4,000		1,982
	TravelSky Technology Ltd., H		IT Services		4,000		7,060
a	Trip.com Group Ltd., ADR		Internet & Direct Marketing Retail		1,498		35,128
	Tsingtao Brewery Co. Ltd., A		Beverages		200		1,290
	Tsingtao Brewery Co. Ltd., H		Beverages		1,400		7,144
	Tunghsu Optoelectronic Technology Co. Ltd.		Electronic Equipment, Instruments & Components		600		254
	Tus-Sound Environmental Resources Co. Ltd.		Commercial Services & Supplies		200		228
	Uni-President China Holdings Ltd.		Food Products		4,000		3,881
	Unisplendour Corp. Ltd.		Electronic Equipment, Instruments & Components		400		1,993
	Universal Scientific Industrial Shanghai Co. Ltd., A		Electronic Equipment, Instruments & Components		600		1,344
	Venustech Group Inc.		Software		200		1,044
a	Vipshop Holdings Ltd., ADR		Internet & Direct Marketing Retail		1,450		22,591
	Walvax Biotechnology Co. Ltd.		Biotechnology		600		2,680
a	Wanda Film Holding Co. Ltd., A		Entertainment		600		1,333
	Wangfujing Group Co. Ltd., A		Multiline Retail		200		343
	Wangsu Science & Technology Co. Ltd.		IT Services		400		440
	Wanhua Chemical Group Co. Ltd., A		Chemicals		600		3,492
	Want Want China Holdings Ltd.		Food Products		18,000		13,051
	Wanxiang Qianchao Co. Ltd.		Auto Components		200		144
a	Weibo Corp., ADR		Interactive Media & Services		182		6,026
	Weichai Power Co. Ltd., A		Machinery		1,000		1,687
	Weichai Power Co. Ltd., H		Machinery		6,000		9,661
	Weifu High-Technology Co. Ltd.,, B		Auto Components		600		928
	Wens Foodstuffs Group Co. Ltd.		Food Products		600		2,734
	Western Securities Co. Ltd.		Capital Markets		600		700
	Westone Information Industry Inc.		Electronic Equipment, Instruments & Components		200		634
a	Wingtech Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		200		2,864
	Winning Health Technology Group Co. Ltd.		Health Care Technology		600		1,775
	Wolong Electric Group Co. Ltd., A		Electrical Equipment		200		291
	Wonders Information Co. Ltd.		IT Services		200		562
	Wuchan Zhongda Group Co. Ltd., A		Distributors		600		406
	Wuhan Guide Infrared Co. Ltd.		Electronic Equipment, Instruments & Components		200		952
	Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd.		Entertainment		200		922
	Wuliangye Yibin Co. Ltd.		Beverages		600		9,751
	WUS Printed Circuit Kunshan Co. Ltd.		Electronic Equipment, Instruments & Components		600		2,004
	WuXi AppTec Co. Ltd., H		Life Sciences Tools & Services		600		7,385
a	Wuxi Biologics Cayman Inc.		Life Sciences Tools & Services		2,500		32,416
	Wuxi Lead Intelligent Equipment Co. Ltd.		Electronic Equipment, Instruments & Components		200		1,057
	XCMG Construction Machinery Co. Ltd.		Machinery		1,400		997
	Xiamen C & D Inc., A		Trading Companies & Distributors		600		648
	Xiamen ITG Group Corp. Ltd., A		Trading Companies & Distributors		400		362
	Xiamen Meiya Pico Information Co. Ltd.		Electronic Equipment, Instruments & Components		200		574
	Xiamen Tungsten Co. Ltd., A		Metals & Mining		200		320
a	Xiaomi Corp., B		Technology Hardware, Storage & Peripherals		35,600		47,951
	Xinhu Zhongbao Co. Ltd., A		Real Estate Management & Development		1,200		511
	Xinhua Winshare Publishing and Media Co. Ltd., H		Distributors		2,000		1,288
	Xinjiang Goldwind Science & Technology Co. Ltd.		Electrical Equipment		600		804
	Xinjiang Goldwind Science & Technology Co. Ltd., H		Electrical Equipment		2,000		1,742
	Xinjiang Zhongtai Chemical Co. Ltd.		Chemicals		200		138
	Xinyi Solar Holdings Ltd.		Semiconductors & Semiconductor Equipment		12,000		6,797
	Yang Quan Coal Industry Group Co. Ltd., A		Oil, Gas & Consumable Fuels		600		389



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Yango Group Co. Ltd.		Real Estate Management & Development		400	$	394
b	Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., H, Reg S		Communications Equipment		1,000		1,814
	Yantai Changyu Pioneer Wine Co. Ltd., B		Beverages		800		1,266
	Yantai Jereh Oilfield Services Group Co. Ltd.		Energy Equipment & Services		200		624
	Yanzhou Coal Mining Co. Ltd., A		Oil, Gas & Consumable Fuels		200		244
	Yanzhou Coal Mining Co. Ltd., H		Oil, Gas & Consumable Fuels		8,000		6,275
	Yifan Pharmaceutical Co. Ltd.		Pharmaceuticals		200		460
	Yihai International Holding Ltd.		Food Products		2,000		15,147
	Yintai Gold Co. Ltd.		Metals & Mining		200		407
	Yonghui Superstores Co. Ltd., A		Food & Staples Retailing		2,000		2,889
	Yonyou Network Technology Co. Ltd., A		Software		600		3,425
	Yotrio Group Co. Ltd.		Leisure Equipment & Products		400		197
	Yuan Longping High-tech Agriculture Co. Ltd.		Food Products		200		511
	Yuexiu Property Co. Ltd.		Real Estate Management & Development		24,000		4,335
a	Yunnan Aluminium Co. Ltd.		Metals & Mining		600		328
	Yunnan Baiyao Group Co. Ltd.		Pharmaceuticals		200		2,414
a	Yunnan Copper Co. Ltd.		Metals & Mining		200		275
	Yunnan Energy New Material Co. Ltd.		Containers & Packaging		200		1,199
a	Yunnan Tin Co. Ltd.		Metals & Mining		200		233
	Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., A		Pharmaceuticals		100		1,754
	Zhaojin Mining Industry Co. Ltd., H		Metals & Mining		3,000		3,011
	Zhefu Holding Group Co. Ltd.		Electrical Equipment		400		204
	Zhejiang Chint Electrics Co. Ltd., A		Electrical Equipment		200		667
	Zhejiang Conba Pharmaceutical Co. Ltd., A		Pharmaceuticals		400		291
	Zhejiang Crystal-Optech Co. Ltd.		Electronic Equipment, Instruments & Components		180		338
	Zhejiang Dahua Technology Co. Ltd.		Electronic Equipment, Instruments & Components		400		912
	Zhejiang Expressway Co. Ltd., H		Transportation Infrastructure		4,000		2,787
	Zhejiang Hailiang Co. Ltd.		Metals & Mining		200		255
	Zhejiang Hisoar Pharmaceutical Co. Ltd.		Pharmaceuticals		200		174
	Zhejiang Huace Film & TV Co. Ltd., A		Entertainment		200		188
a	Zhejiang Huahai Pharmaceutical Co. Ltd., A		Pharmaceuticals		600		2,175
	Zhejiang Huayou Cobalt Co. Ltd., A		Metals & Mining		200		830
	Zhejiang Juhua Co. Ltd., A		Chemicals		400		383
	Zhejiang Longsheng Group Co. Ltd., A		Chemicals		400		672
	Zhejiang Medicine Co. Ltd., A		Pharmaceuticals		200		529
	Zhejiang NHU Co. Ltd.		Pharmaceuticals		800		3,081
	Zhejiang Runtu Co. Ltd.		Chemicals		200		271
	Zhejiang Sanhua Intelligent Controls Co. Ltd.		Machinery		800		1,814
	Zhejiang Semir Garment Co. Ltd.		Textiles, Apparel & Luxury Goods		200		201
	Zhejiang Wanfeng Auto Wheel Co. Ltd.		Auto Components		200		186
	Zhejiang Wanliyang Co. Ltd.		Machinery		200		228
	Zhejiang Weixing New Building Materials Co. Ltd.		Building Products		200		312
	Zhejiang Yasha Decoration Co. Ltd.		Diversified Consumer Services		600		587
	Zhengzhou Coal Mining Machinery Group Co. Ltd., A		Machinery		200		156
	Zhengzhou Yutong Bus Co. Ltd., A		Machinery		400		773
	Zheshang Securities Co. Ltd., A		Capital Markets		200		282
a,b	ZhongAn Online P&C Insurance Co. Ltd., Reg S		Insurance		1,200		3,963
	Zhongjin Gold Corp. Ltd., A		Metals & Mining		400		455
	Zhongshan Public Utilities Group Co. Ltd.		Water Utilities		400		425
	Zhongsheng Group Holdings Ltd.		Specialty Retail		2,000		6,993
	Zhuzhou CRRC Times Electric Co. Ltd., H		Electrical Equipment		1,400		4,145
	Zijin Mining Group Co. Ltd., A		Metals & Mining		4,600		2,395
	Zijin Mining Group Co. Ltd., H		Metals & Mining		16,000		6,028



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	China (continued)
	Zoomlion Heavy Industry Science and Technology Co. Ltd.		Machinery			1,200	$	963
	Zoomlion Heavy Industry Science and Technology Co. Ltd.,, H		Machinery			4,400		3,202
a	ZTE Corp.		Communications Equipment			600		3,623
a	ZTE Corp., H		Communications Equipment			2,400		7,447
a	ZTO Express Cayman Inc., ADR		Air Freight & Logistics			1,290		34,159


								6,413,494

	Hong Kong 9.3%
	AIA Group Ltd.		Insurance			40,000		362,022
a	Alibaba Pictures Group Ltd.		Entertainment			40,000		5,161
	ASM Pacific Technology Ltd.		Semiconductors & Semiconductor Equipment			1,200		11,240
	BOC Hong Kong (Holdings) Ltd.		Banks			12,000		33,209
	Cathay Pacific Airways Ltd.		Airlines			2,000		2,142
	Champion REIT		Equity Real Estate Investment Trusts (REITs	)		8,000		4,830
	Chow Tai Fook Jewellery Co. Ltd.		Specialty Retail			3,600		2,550
	CK Asset Holdings Ltd.		Real Estate Management & Development			9,000		49,291
	CK Hutchison Holdings Ltd.		Industrial Conglomerates			9,000		60,728
	CK Infrastructure Holdings Ltd.		Electric Utilities			2,000		10,631
	CLP Holdings Ltd.		Electric Utilities			5,600		51,659
	Dah Sing Banking Group Ltd.		Banks			3,200		2,787
	Dah Sing Financial Group		Banks			800		2,276
	Dairy Farm International Holdings Ltd.		Food & Staples Retailing			1,000		4,600
	Guotai Junan International holdings Ltd.		Capital Markets			10,000		1,316
	Haitong International Securities Group Ltd.		Capital Markets			12,000		3,065
	Hang Lung Group Ltd.		Real Estate Management & Development			4,000		8,433
	Hang Lung Properties Ltd.		Real Estate Management & Development			6,000		12,184
	Hang Seng Bank Ltd.		Banks			2,400		41,028
	Henderson Land Development Co. Ltd.		Real Estate Management & Development			4,840		18,452
	Hong Kong and China Gas Co. Ltd.		Gas Utilities			32,320		53,291
	Hong Kong Exchanges and Clearing Ltd.		Capital Markets			4,200		126,690
	Hongkong Land Holdings Ltd.		Real Estate Management & Development			3,600		13,500
	Hysan Development Co. Ltd.		Real Estate Management & Development			2,000		6,502
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			740		37,000
	Jardine Strategic Holdings Ltd.		Industrial Conglomerates			600		13,320
	Johnson Electric Holdings Ltd.		Electrical Equipment			1,000		1,574
	Kerry Properties Ltd.		Real Estate Management & Development			2,000		5,277
	Kingboard Laminates Holdings Ltd.		Chemicals			4,000		3,700
	Li & Fung Ltd.		Textiles, Apparel & Luxury Goods			20,000		2,632
	Lifestyle International Holdings Ltd.		Multiline Retail			2,000		1,680
	Link REIT		Equity Real Estate Investment Trusts (REITs	)		6,800		57,640
	Melco International Development Ltd.		Hotels, Restaurants & Leisure			2,000		2,900
	MTR Corp. Ltd.		Road & Rail			5,000		25,836
	New World Development Co. Ltd.		Real Estate Management & Development			18,000		19,368
	NWS Holdings Ltd.		Industrial Conglomerates			4,000		4,113
	PCCW Ltd.		Diversified Telecommunication Services			14,000		7,713
	Power Assets Holdings Ltd.		Electric Utilities			4,500		26,910
	Sa Sa International Holdings Ltd.		Specialty Retail			16,153		2,417
	Samsonite International SA		Textiles, Apparel & Luxury Goods			4,200		3,999
	Shangri-La Asia Ltd.		Hotels, Restaurants & Leisure			4,000		2,709
	Shun Tak Holdings Ltd.		Industrial Conglomerates			4,000		1,368
	Sino Biopharmaceutical Ltd.		Pharmaceuticals			20,000		26,371
	Sino Land Co. Ltd.		Real Estate Management & Development			12,000		15,234
	Sun Art Retail Group Ltd.		Food & Staples Retailing			7,000		10,386
	Sun Hung Kai Properties Ltd.		Real Estate Management & Development			4,500		59,335



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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Hong Kong (continued)
	Swire Pacific Ltd., A		Real Estate Management & Development		2,000	$	12,889
	Swire Pacific Ltd., B		Real Estate Management & Development		2,500		2,558
	Swire Properties Ltd.		Real Estate Management & Development		3,600		10,125
	Techtronic Industries Co. Ltd.		Machinery		4,000		25,958
	Television Broadcasts Ltd.		Media		1,200		1,494
	The Bank of East Asia Ltd.		Banks		3,600		7,747
	The Wharf Holdings Ltd.		Real Estate Management & Development		2,000		3,545
	United Energy Group Ltd.		Oil, Gas & Consumable Fuels		28,000		5,419
	Vitasoy International Holdings Ltd.		Food Products		2,000		6,064
	VTech Holdings Ltd.		Communications Equipment		600		4,339
b	WH Group Ltd., Reg S		Food Products		27,000		25,255
	Wharf Real Estate Investment Co. Ltd.		Real Estate Management & Development		4,000		16,463
	Wheelock and Co. Ltd.		Real Estate Management & Development		2,000		13,650
	Xinyi Glass Holdings Ltd.		Auto Components		8,000		9,186
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods		3,000		4,598


							1,368,359

	India 9.0%
a	3M India Ltd.		Industrial Conglomerates		6		1,493
	ABB India Ltd.		Electrical Equipment		170		2,102
a	ABB Power Products & Systems India Ltd.		Electrical Equipment		34		337
	ACC Ltd.		Construction Materials		144		1,844
	Adani Enterprises Ltd.		Trading Companies & Distributors		1,018		1,852
	Adani Ports And Special Economic Zone Ltd.		Transportation Infrastructure		2,378		7,899
a	Adani Power Ltd.		Independent Power and Renewable Electricity Producers		3,204		1,175
a	Aditya Birla Capital Ltd.		Diversified Financial Services		1,764		983
	Alkem Laboratories Ltd.		Pharmaceuticals		160		4,919
	Ambuja Cements Ltd.		Construction Materials		2,584		5,318
	Ashok Leyland Ltd.		Machinery		4,202		2,391
	Asian Paints Ltd.		Chemicals		936		20,619
	AU Small Finance Bank Ltd.		Banks		470		3,140
	Aurobindo Pharma Ltd.		Pharmaceuticals		926		5,057
a	Avenue Supermarts Ltd.		Food & Staples Retailing		398		11,508
	Axis Bank Ltd.		Banks		6,338		31,752
	Bajaj Auto Ltd.		Automobiles		302		8,073
	Bajaj Finance Ltd.		Consumer Finance		602		17,632
	Bajaj Finserv Ltd.		Insurance		132		8,011
	Bajaj Holdings & Investment Ltd.		Diversified Financial Services		90		2,140
	Bandhan Bank Ltd		Banks		1,966		5,295
a	Bank of Baroda		Banks		2,666		1,887
a	Bank of India		Banks		972		414
	Bata India Ltd.		Textiles, Apparel & Luxury Goods		64		1,042
	Berger Paints India Ltd.		Chemicals		830		5,463
	Bharat Electronics Ltd.		Aerospace & Defense		2,016		1,984
	Bharat Forge Ltd.		Auto Components		668		2,075
	Bharat Heavy Electricals Ltd.		Electrical Equipment		2,868		789
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		3,238		13,564
a	Bharti Airtel Ltd.		Wireless Telecommunication Services		5,802		33,814
	Bharti Infratel Ltd.		Diversified Telecommunication Services		3,012		6,370
	Biocon Ltd.		Biotechnology		984		3,519
	Bosch Ltd.		Auto Components		24		2,981
	Britannia Industries Ltd.		Food Products		202		7,180
	Cadila Healthcare Ltd.		Pharmaceuticals		816		2,883
a	Canara Bank Ltd.		Banks		546		653
	Castrol India Ltd.		Chemicals		1,746		2,295



160	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
	Cholamandalam Investment and Finance Co. Ltd.		Consumer Finance			652	$	1,317
	Cipla Ltd.		Pharmaceuticals			1,130		6,316
	Coal India Ltd.		Oil, Gas & Consumable Fuels			4,968		9,197
	Colgate-Palmolive India Ltd.		Personal Products			242		4,007
	Container Corp. of India Ltd.		Road & Rail			734		3,218
	Cummins India Ltd.		Machinery			256		1,106
	Dabur India Ltd.		Personal Products			1,662		9,887
a	Dalmia Bharat Ltd.		Construction Materials			142		921
	Divi’s Laboratories Ltd.		Life Sciences Tools & Services			282		7,414
	DLF Ltd.		Real Estate Management & Development			2,114		3,841
	Dr Reddy’s Laboratories Ltd.		Pharmaceuticals			266		10,973
	Eicher Motors Ltd.		Automobiles			46		7,963
	Emami Ltd.		Personal Products			420		944
a	Embassy Office Parks REIT		Equity Real Estate Investment Trusts (REITs	)		400		1,855
	Exide Industries Ltd.		Auto Components			786		1,367
	Federal Bank Ltd.		Banks			4,584		2,487
a	Future Retail Ltd.		Multiline Retail			696		720
	GAIL India Ltd.		Gas Utilities			3,600		3,643
	Gillette India Ltd.		Personal Products			28		2,025
	GlaxoSmithKline Consumer Healthcare Ltd.		Food Products			34		4,483
	Glenmark Pharmaceuticals Ltd.		Pharmaceuticals			474		1,290
a	GMR Infrastructure Ltd.		Transportation Infrastructure			5,980		1,292
	Godrej Consumer Products Ltd.		Personal Products			1,284		8,840
	Godrej Industries Ltd.		Industrial Conglomerates			230		861
a	Godrej Properties Ltd.		Real Estate Management & Development			208		1,659
	Grasim Industries Ltd.		Construction Materials			1,106		6,960
	Havell’s India Ltd.		Electrical Equipment			642		4,077
	HCL Technologies Ltd.		IT Services			3,648		21,044
	HDFC Asset Management Co. Ltd.		Capital Markets			134		3,742
a	HDFC Life Insurance Co. Ltd.		Insurance			1,926		11,236
a,e	Hemisphere Properties India Ltd.		Real Estate Management & Development			262		578
	Hero Motocorp Ltd.		Automobiles			342		7,217
	Hindalco Industries Ltd.		Metals & Mining			3,164		4,003
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels			2,108		5,297
	Hindustan Unilever Ltd.		Household Products			2,346		71,278
a	Hindustan Zinc Ltd.		Metals & Mining			690		1,417
	Housing Development Finance Corp. Ltd.		Thrifts & Mortgage Finance			5,680		122,615
	ICICI Bank Ltd.		Banks			2,000		8,559
b,c	ICICI Lombard General Insurance Co. Ltd., 144A, Reg S		Insurance			618		8,836
b	ICICI Prudential Life Insurance Co. Ltd., Reg S		Insurance			1,046		4,918
a	IDFC First Bank Ltd.		Banks			7,850		2,189
	Indiabulls Housing Finance Ltd.		Thrifts & Mortgage Finance			1,154		1,476
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels			6,880		7,426
	Info Edge India Ltd.		Interactive Media & Services			214		5,757
	Infosys Ltd.		IT Services			12,238		103,775
b	InterGlobe Aviation Ltd., Reg S		Airlines			326		4,594
	ITC Ltd.		Tobacco			9,706		22,029
a	Jindal Steel & Power Ltd.		Metals & Mining			1,410		1,532
	JSW Energy Ltd.		Independent Power and Renewable Electricity Producers			1,352		763
	JSW Steel Ltd.		Metals & Mining			4,052		7,833
	Jubilant Foodworks Ltd.		Hotels, Restaurants & Leisure			206		4,007
	Kansai Nerolac Paints Ltd.		Chemicals			428		2,192



franklintempleton.com	Annual Report	161

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
	L&T Finance Holdings Ltd.		Diversified Financial Services		1,686	$	1,143
b	Larsen & Toubro Infotech Ltd., Reg S		IT Services		114		2,153
	Larsen & Toubro Ltd.		Construction & Engineering		1,122		11,991
	LIC Housing Finance Ltd.		Thrifts & Mortgage Finance		886		2,756
	Lupin Ltd.		Pharmaceuticals		772		6,017
	Mahindra & Mahindra Financial Services Ltd.		Consumer Finance		1,052		2,047
	Mahindra & Mahindra Ltd.		Automobiles		1,678		6,320
	Mangalore Refinery and Petrochemicals Ltd.		Oil, Gas & Consumable Fuels		446		136
	Marico Ltd.		Personal Products		1,620		5,886
	Maruti Suzuki India Ltd.		Automobiles		386		21,880
	Motherson Sumi Systems Ltd.		Auto Components		3,296		2,660
	Mphasis Ltd.		IT Services		275		2,415
	MRF Ltd.		Auto Components		4		3,075
	Muthoot Finance Ltd.		Consumer Finance		354		2,869
	Nestle India Ltd.		Food Products		80		17,238
	NHPC Ltd.		Independent Power and Renewable Electricity Producers		4,608		1,215
	Nippon Life India Asset Management Ltd.		Capital Markets		414		1,364
	NMDC Ltd.		Metals & Mining		2,567		2,715
	NTPC Ltd.		Independent Power and Renewable Electricity Producers		7,484		8,330
	Oberoi Realty Ltd.		Real Estate Management & Development		290		1,272
	Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels		9,702		8,759
	Oil India Ltd.		Oil, Gas & Consumable Fuels		1,078		1,178
a	Oracle Financial Services Software Ltd.		Software		76		2,033
	Page Industries Ltd.		Textiles, Apparel & Luxury Goods		12		2,691
	Petronet LNG Ltd.		Oil, Gas & Consumable Fuels		1,380		3,643
	Pidilite Industries Ltd.		Chemicals		426		7,638
	Piramal Enterprises Ltd.		Pharmaceuticals		366		4,545
	Power Finance Corp., Ltd.		Diversified Financial Services		2,200		2,674
	Power Grid Corp. of India Ltd.		Electric Utilities		5,464		11,491
a	Punjab National Bank Ltd.		Banks		3,206		1,371
	Rajesh Exports Ltd.		Textiles, Apparel & Luxury Goods		478		3,460
b	RBL Bank Ltd., Reg S		Banks		1,086		1,945
	REC Ltd.		Diversified Financial Services		2,626		3,081
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		10,288		151,462
	SBI Life Insurance Co. Ltd.		Insurance		1,240		10,507
	Shree Cement Ltd.		Construction Materials		34		7,886
	Shriram Transport Finance Co. Ltd.		Consumer Finance		584		5,100
	Siemens Ltd.		Industrial Conglomerates		294		4,327
a	State Bank of India		Banks		5,990		15,586
	Steel Authority of India Ltd.		Metals & Mining		3,318		1,011
	Sun Pharmaceutical Industries Ltd.		Pharmaceuticals		3,484		16,225
	Sun TV Network Ltd.		Media		194		733
	Tata Communications Ltd.		Diversified Telecommunication Services		50		154
	Tata Consultancy Services Ltd.		IT Services		2,970		71,691
a	Tata Motors Ltd.		Automobiles		3,508		3,295
a	Tata Motors Ltd., A		Automobiles		1,030		421
	Tata Power Co. Ltd.		Electric Utilities		3,270		1,420
	Tata Steel Ltd.		Metals & Mining		946		3,371
	Tech Mahindra Ltd.		IT Services		1,576		11,781
	Titan Co. Ltd.		Textiles, Apparel & Luxury Goods		1,040		12,836
	Torrent Pharmaceuticals Ltd.		Pharmaceuticals		144		3,753
	Torrent Power Ltd.		Electric Utilities		444		1,638
	TVS Motor Co. Ltd.		Automobiles		390		1,534
	UltraTech Cement Ltd.		Construction Materials		356		15,270



162	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	India (continued)
a	Union Bank of India Ltd.		Banks		1,284	$	487
	United Breweries Ltd.		Beverages		234		2,842
a	United Spirits Ltd.		Beverages		1,032		6,611
	UPL Ltd.		Chemicals		1,854		8,002
	Vedanta Ltd.		Metals & Mining		5,832		4,988
a	Vodafone Idea Ltd.		Wireless Telecommunication Services		30,442		1,247
	Voltas Ltd.		Construction & Engineering		384		2,421
	Whirlpool of India Ltd.		Household Durables		102		2,452
	Wipro Ltd.		IT Services		4,706		12,236
	Yes Bank Ltd.		Banks		4,442		1,318
	Zee Entertainment Enterprises Ltd.		Media		2,886		4,729


							1,318,754

	Indonesia 1.6%
	Adaro Energy Tbk PT		Oil, Gas & Consumable Fuels		44,600		2,707
	Astra Agro Lestari Tbk PT		Food Products		1,400		463
	Astra International Tbk PT		Automobiles		67,600		16,164
	Bank Central Asia Tbk PT		Banks		32,200		54,539
e	Bank Danamon Indonesia Tbk PT		Banks		2,400		307
	Bank Mandiri Persero Tbk PT		Banks		60,800		17,446
	Bank Negara Indonesia Persero Tbk PT		Banks		24,000		5,621
	Bank Rakyat Indonesia Persero Tbk PT		Banks		176,400		32,663
	Bukit Asam Tbk PT		Oil, Gas & Consumable Fuels		15,600		2,085
a	Bumi Serpong Damai Tbk PT		Real Estate Management & Development		25,200		1,035
	Charoen Pokphand Indonesia Tbk PT		Food Products		25,200		7,633
	First Pacific Co. Ltd.		Diversified Financial Services		8,000		1,486
	Gudang Garam Tbk PT		Tobacco		1,600		4,032
	Hanjaya Mandala Sampoerna Tbk PT		Tobacco		28,400		2,481
	Indah Kiat Pulp & Paper Corp Tbk PT		Paper & Forest Products		9,000		2,213
	Indocement Tunggal Prakarsa Tbk PT		Construction Materials		4,400		3,372
	Indofood CBP Sukses Makmur Tbk PT		Food Products		7,800		4,890
	Indofood Sukses Makmur Tbk PT		Food Products		15,200		5,918
	Jasa Marga Persero Tbk PT		Transportation Infrastructure		8,000		1,246
	Kalbe Farma Tbk PT		Pharmaceuticals		64,600		4,753
	Matahari Department Store Tbk PT		Multiline Retail		8,600		704
	Media Nusantara Citra Tbk PT		Media		19,000		1,054
	Perusahaan Gas Negara (Persero) Tbk PT		Gas Utilities		37,600		1,787
	Perusahaan Perseroan (Persero) PT TelekomunikasiIndonesia Tbk, B		Diversified Telecommunication Services		155,600		30,147
a	PT Barito Pacific Tbk		Chemicals		63,800		2,836
a	PT XL Axiata Tbk		Wireless Telecommunication Services		12,800		1,570
	Semen Indonesia (Persero) Tbk PT		Construction Materials		10,000		4,675
a	Smartfren Telecom Tbk PT		Wireless Telecommunication Services		130,200		495
	Surya Citra Media Tbk PT		Media		22,000		1,045
	Tower Bersama Infrastructure Tbk PT		Diversified Telecommunication Services		36,000		1,998
	Unilever Indonesia Tbk PT		Household Products		19,000		8,446
	United Tractors Tbk PT		Oil, Gas & Consumable Fuels		5,200		5,388
a	Vale Indonesia Tbk PT		Metals & Mining		7,000		927


							232,126

	Italy 0.1%
	PRADA SpA		Textiles, Apparel & Luxury Goods		1,800		5,272

	Luxembourg 0.0%^†
	L’Occitane International SA		Personal Products		1,500		2,187



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Macau 0.6%
	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure		7,000	$	37,344
a	Macau Legend Development Ltd.		Hotels, Restaurants & Leisure		4,000		454
	MGM China Holdings Ltd.		Hotels, Restaurants & Leisure		4,000		4,092
	Sands China Ltd.		Hotels, Restaurants & Leisure		7,200		26,382
	SJM Holdings Ltd.		Hotels, Restaurants & Leisure		8,000		6,761
	Wynn Macau Ltd.		Hotels, Restaurants & Leisure		4,800		7,295


							82,328

	Malaysia 2.4%
	AirAsia Group Bhd		Airlines		5,800		1,061
	Alliance Bank Malaysia Bhd.		Banks		2,800		1,231
	AMMB Holdings Bhd.		Banks		6,000		4,167
	Astro Malaysia Holdings Bhd.		Media		5,400		1,062
	Axiata Group Bhd.		Wireless Telecommunication Services		15,400		11,693
	British American Tobacco Malaysia Bhd.		Tobacco		400		954
	CIMB Group Holdings Bhd.		Banks		23,200		19,333
	Dialog Group Bhd.		Energy Equipment & Services		15,400		10,837
	Digi.com Bhd.		Wireless Telecommunication Services		12,800		12,889
a	FGV Holdings Bhd.		Food Products		7,200		1,425
	Fraser & Neave Holdings Bhd.		Beverages		200		1,436
	Gamuda Bhd.		Construction & Engineering		7,600		4,979
	Genting Bhd.		Hotels, Restaurants & Leisure		7,400		6,424
	Genting Malaysia Bhd.		Hotels, Restaurants & Leisure		9,800		4,560
	HAP Seng Consolidated Bhd.		Industrial Conglomerates		2,400		4,233
	Hartalega Holdings Bhd.		Health Care Equipment & Supplies		4,400		7,007
	Hong Leong Bank Bhd.		Banks		1,800		5,608
	Hong Leong Financial Group Bhd.		Banks		800		2,533
	IHH Healthcare Bhd.		Health Care Providers & Services		10,000		11,944
	IJM Corp. Bhd.		Construction & Engineering		10,600		3,901
	IOI Corp. Bhd.		Food Products		9,600		8,889
	IOI Properties Group Bhd.		Real Estate Management & Development		6,600		1,459
	Kuala Lumpur Kepong Bhd.		Food Products		1,600		7,689
	Malayan Banking Bhd.		Banks		19,838		34,211
	Malaysia Airports Holdings Bhd.		Transportation Infrastructure		3,200		3,200
	Maxis Bhd.		Wireless Telecommunication Services		9,200		11,394
	MISC Bhd.		Marine		4,800		8,267
	Nestle (Malaysia) Bhd.		Food Products		200		6,329
	Petronas Chemicals Group Bhd.		Chemicals		9,600		11,222
	Petronas Dagangan Bhd.		Oil, Gas & Consumable Fuels		1,000		4,898
	Petronas Gas Bhd.		Gas Utilities		2,200		7,843
	PPB Group Bhd.		Food Products		1,840		6,994
	Press Metal Aluminium Holdings Bhd.		Metals & Mining		6,600		5,026
	Public Bank Bhd.		Banks		10,200		37,542
	QL Resources Bhd.		Food Products		2,600		4,454
	RHB Bank Bhd		Banks		5,000		5,428
	Sime Darby Bhd.		Industrial Conglomerates		12,400		4,851
	Sime Darby Plantation Bhd.		Food Products		12,000		13,722
	Sime Darby Property Bhd.		Real Estate Management & Development		13,600		1,716
	Telekom Malaysia Bhd.		Diversified Telecommunication Services		3,800		3,299
	Tenaga Nasional Bhd.		Electric Utilities		12,800		35,615
	Top Glove Corp. Bhd.		Health Care Equipment & Supplies		5,400		8,062
	Westports Holdings Bhd.		Transportation Infrastructure		3,800		2,973
	Wing Tai Holdings Ltd.		Real Estate Management & Development		3,000		3,266
	YTL Corp. Bhd.		Multi-Utilities		15,400		2,584


							358,210



164	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Pakistan 0.0%^†
	Fauji Fertilizer Co. Ltd.		Chemicals			2,000	$	1,120
	Habib Bank Ltd.		Banks			2,000		1,243
	Oil & Gas Development Co. Ltd.		Oil, Gas & Consumable Fuels			2,000		927
	Pakistan Petroleum Ltd.		Oil, Gas & Consumable Fuels			2,004		866


								4,156

	Philippines 1.0%
	Aboitiz Power Corp.		Independent Power and Renewable Electricity Producers			5,200		2,689
a	Alliance Global Group Inc.		Industrial Conglomerates			15,000		2,059
	Ayala Corp.		Industrial Conglomerates			805		7,398
	Ayala Land Inc.		Real Estate Management & Development			23,200		13,776
	Bank of the Philippine Islands		Banks			6,124		7,441
	BDO Unibank Inc.		Banks			6,720		13,675
	Bloomberry Resorts Corp.		Hotels, Restaurants & Leisure			11,800		1,392
	DMCI Holdings Inc.		Industrial Conglomerates			14,200		1,052
	Globe Telecom Inc.		Wireless Telecommunication Services			100		3,795
	GT Capital Holdings Inc.		Industrial Conglomerates			337		2,697
	International Container Terminal Services Inc.		Transportation Infrastructure			3,700		5,434
	JG Summit Holdings Inc.		Industrial Conglomerates			9,680		9,954
	Jollibee Foods Corp.		Hotels, Restaurants & Leisure			1,420		2,971
	LT Group Inc.		Industrial Conglomerates			9,000		1,469
	Manila Electric Co.		Electric Utilities			920		4,070
	Megaworld Corp.		Real Estate Management & Development			41,000		2,015
	Metro Pacific Investments Corp.		Diversified Financial Services			50,000		2,379
	Metropolitan Bank & Trust Co.		Banks			6,266		4,928
	PLDT Inc.		Wireless Telecommunication Services			400		8,879
	San Miguel Corp.		Industrial Conglomerates			1,240		2,231
	San Miguel Pure Foods Co. Inc.		Food Products			2,200		2,163
	Semirara Mining and Power Corp.		Oil, Gas & Consumable Fuels			4,000		865
	SM Investments Corp.		Industrial Conglomerates			1,620		26,055
	SM Prime Holdings Inc.		Real Estate Management & Development			27,600		15,412
	Universal Robina Corp.		Food Products			3,020		6,175


								150,974

	Singapore 3.4%
	Ascendas REIT		Equity Real Estate Investment Trusts (REITs	)		9,440		18,763
	Ascott Residence Trust		Equity Real Estate Investment Trusts (REITs	)		5,200		2,885
	BOC Aviation Ltd.		Trading Companies & Distributors			400		2,560
	CapitaLand Commercial Trust		Equity Real Estate Investment Trusts (REITs	)		8,800		9,456
	CapitaLand Ltd.		Real Estate Management & Development			8,600		17,214
	CapitaLand Mall Trust		Equity Real Estate Investment Trusts (REITs	)		7,600		9,554
	City Developments Ltd.		Real Estate Management & Development			1,600		8,136
	ComfortDelGro Corp. Ltd.		Road & Rail			7,200		7,686
	DBS Group Holdings Ltd.		Banks			5,800		75,644
	Frasers Property Ltd.		Real Estate Management & Development			600		468
	Genting Singapore Ltd.		Hotels, Restaurants & Leisure			15,800		7,657
	Golden Agri-Resources Ltd.		Food Products			21,200		2,099
	Hutchison Port Holdings Trust		Transportation Infrastructure			18,800		1,936
	Jardine Cycle & Carriage Ltd.		Distributors			400		5,526
	Keppel Corp. Ltd.		Industrial Conglomerates			4,400		16,347
	Keppel REIT		Equity Real Estate Investment Trusts (REITs	)		7,200		4,804
	Mapletree Commercial Trust		Equity Real Estate Investment Trusts (REITs	)		7,068		9,084
b	Mapletree Greater China Commercial Trust, Reg S		Equity Real Estate Investment Trusts (REITs	)		7,800		4,410
	Mapletree Industrial Trust		Equity Real Estate Investment Trusts (REITs	)		5,200		8,875
	Mapletree Logistics Trust		Equity Real Estate Investment Trusts (REITs	)		8,600		9,543



franklintempleton.com	Annual Report	165

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Singapore (continued)
	Olam International Ltd.		Food & Staples Retailing			1,800	$	1,808
	Oversea-Chinese Banking Corp. Ltd.		Banks			11,400		69,176
	SATS Ltd.		Transportation Infrastructure			2,200		4,883
	SembCorp Industries Ltd.		Industrial Conglomerates			3,200		3,483
a	SembCorp Marine Ltd.		Machinery			3,000		1,433
	SIA Engineering Co. Ltd.		Transportation Infrastructure			800		961
	Singapore Airlines Ltd.		Airlines			1,800		7,256
	Singapore Exchange Ltd.		Capital Markets			2,600		16,781
	Singapore Post Ltd.		Air Freight & Logistics			5,200		2,356
	Singapore Press Holdings Ltd.		Media			5,400		6,940
	Singapore Technologies Engineering Ltd.		Aerospace & Defense			5,200		11,394
	Singapore Telecommunications Ltd.		Diversified Telecommunication Services			24,600		43,884
	StarHub Ltd.		Wireless Telecommunication Services			2,200		2,055
	Suntec REIT		Equity Real Estate Investment Trusts (REITs	)		6,800		5,970
	United Overseas Bank Ltd.		Banks			4,200		57,373
	UOL Group Ltd.		Real Estate Management & Development			2,200		10,151
	Venture Corp. Ltd.		Electronic Equipment, Instruments & Components			800		7,624
	Wilmar International Ltd.		Food Products			6,600		14,972
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery			7,200		4,197
	Yanlord Land Group Ltd.		Real Estate Management & Development			2,200		1,522


								496,866

	South Korea 11.9%
	Amorepacific Corp.		Personal Products			100		13,842
	AmorePacific Group		Personal Products			96		4,369
	BGF Retail Co. Ltd.		Food & Staples Retailing			20		2,169
	BNK Financial Group Inc.		Banks			1,120		4,080
a	Celltrion Healthcare Co. Ltd.		Health Care Providers & Services			227		16,726
a	Celltrion Inc.		Biotechnology			338		63,582
	Cheil Worldwide Inc.		Media			246		3,203
	CJ CheilJedang Corp.		Food Products			28		4,968
e	CJ Corp.		Industrial Conglomerates			40		2,119
	CJ ENM Co. Ltd.		Internet & Direct Marketing Retail			34		2,907
a	CJ Logistics Corp.		Road & Rail			24		2,681
	Coway Co. Ltd.		Household Durables			192		9,116
	Daelim Industrial Co. Ltd.		Construction & Engineering			92		5,570
a	Daewoo Engineering & Construction Co. Ltd.		Construction & Engineering			558		1,348
a	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		Machinery			166		1,834
	DB Insurance Co. Ltd.		Insurance			160		4,567
	DGB Financial Group Inc.		Banks			530		1,998
	Dongsuh Cos. Inc.		Food & Staples Retailing			118		1,527
	Doosan Bobcat Inc.		Machinery			86		1,268
e	Doosan Co. Ltd.		Industrial Conglomerates			19		521
a	Doosan Fuel Cell Co. Ltd.		Electrical Equipment			66		283
a	Doosan Heavy Industries and Construction Co. Ltd.		Electrical Equipment			415		1,164
a	Doosan Infracore Co. Ltd.		Machinery			290		749
a	Doosan Solus Co. Ltd.		Electronic Equipment, Instruments & Components			36		546
	E-MART Inc.		Food & Staples Retailing			62		5,424
	Fila Korea Ltd.		Textiles, Apparel & Luxury Goods			180		4,295
	GS Engineering & Construction Corp.		Construction & Engineering			202		3,402
	GS Holdings Corp.		Oil, Gas & Consumable Fuels			154		4,655
	GS Retail Co. Ltd.		Food & Staples Retailing			88		2,234
	Hana Financial Group Inc.		Banks			884		16,775
	Hankook Tire & Technology Co. Ltd.		Auto Components			254		4,037
	Hanmi Pharm Co. Ltd.		Pharmaceuticals			24		5,155



166	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
	Hanmi Science Co. Ltd.		Pharmaceuticals		53	$	1,173
	Hanon Systems		Auto Components		548		3,993
	Hanssem Co. Ltd.		Household Durables		30		1,240
a	Hanwha Aerospace Co. Ltd.		Aerospace & Defense		118		1,992
	Hanwha Corp.		Industrial Conglomerates		120		1,508
	Hanwha Corp.		Industrial Conglomerates		80		610
	Hanwha Life Insurance Co. Ltd.		Insurance		940		1,073
	Hanwha Solutions Corp.		Chemicals		266		2,928
	HDC Hyundai Development Co-Engineering & Construction		Construction & Engineering		153		1,954
a	Helixmith Co. Ltd.		Biotechnology		63		3,555
	Hite Jinro Co. Ltd.		Beverages		116		2,559
a	HLB Inc.		Leisure Equipment & Products		116		8,576
	Hotel Shilla Co. Ltd.		Specialty Retail		108		6,255
	Hyundai Department Store Co. Ltd.		Multiline Retail		40		1,932
	Hyundai Engineering & Construction Co. Ltd.		Construction & Engineering		252		5,682
	Hyundai Glovis Co. Ltd.		Air Freight & Logistics		62		4,614
	Hyundai Heavy Industries Holdings Co. Ltd.		Machinery		36		5,841
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		206		3,833
	Hyundai Mipo Dockyard Co. Ltd.		Machinery		76		1,692
	Hyundai Mobis Co. Ltd.		Auto Components		220		30,632
	Hyundai Motor Co.		Automobiles		458		33,371
	Hyundai Steel Co.		Metals & Mining		250		3,686
	Hyundai Wia Corp.		Auto Components		54		1,189
	Industrial Bank of Korea		Banks		834		5,138
	Kakao Corp.		Interactive Media & Services		172		21,971
	Kangwon Land Inc.		Hotels, Restaurants & Leisure		376		6,100
	KB Financial Group Inc.		Banks		1,300		36,896
	KCC Corp.		Chemicals		16		1,702
a	KCC Glass Corp.		Building Products		15		226
	KEPCO Plant Service and Engineering Co. Ltd.		Commercial Services & Supplies		82		1,957
	Kia Motors Corp.		Automobiles		804		17,172
	Korea Aerospace Industries Ltd.		Aerospace & Defense		220		3,786
a	Korea Electric Power Corp.		Electric Utilities		872		13,789
	Korea Gas Corp.		Gas Utilities		76		1,342
	Korea Investment Holdings Co. Ltd.		Capital Markets		132		5,395
a	Korea Shipbuilding & Offshore Engineering Co. Ltd.		Machinery		148		9,556
	Korea Zinc Co. Ltd.		Metals & Mining		30		8,773
a	Korean Air Lines Co. Ltd.		Airlines		174		2,673
	KT&G Corp.		Tobacco		356		21,845
	Kumho Petrochemical Co. Ltd.		Chemicals		60		3,194
	LG Chem Ltd.		Chemicals		146		36,579
	LG Corp.		Industrial Conglomerates		298		14,443
a	LG Display Co. Ltd.		Electronic Equipment, Instruments & Components		770		7,021
	LG Electronics Inc.		Household Durables		358		14,175
	LG Household & Health Care Ltd.		Personal Products		30		27,601
	LG Uplus Corp.		Diversified Telecommunication Services		672		5,962
	Lotte Chemical Corp.		Chemicals		50		7,927
	Lotte Chilsung Beverage Co. Ltd.		Beverages		12		838
	Lotte Corp.		Industrial Conglomerates		76		1,498
	LOTTE Fine Chemical Co. Ltd.		Chemicals		68		1,734
	Lotte Shopping Co. Ltd.		Multiline Retail		30		1,848
	LS Corp.		Electrical Equipment		44		1,045
	Mando Corp.		Auto Components		114		1,938
	Medy-tox Inc.		Biotechnology		14		2,269



franklintempleton.com	Annual Report	167

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	South Korea (continued)
	Mirae Asset Daewoo Co. Ltd.		Capital Markets		202	$	483
	Mirae Asset Daewoo Co. Ltd.		Capital Markets		1,486		6,433
	Naver Corp.		Interactive Media & Services		438		61,166
	NCsoft Corp.		Entertainment		52		27,851
a	Netmarble Corp.		Entertainment		58		4,440
	NH Investment & Securities Co. Ltd.		Capital Markets		388		2,865
a	NHN Corp.		Entertainment		38		2,138
	Nongshim Co. Ltd.		Food Products		10		2,370
a	OCI Co. Ltd.		Chemicals		66		1,887
	Orion Corp.		Food Products		74		6,991
	Ottogi Corp.		Food Products		4		1,562
	Paradise Co. Ltd.		Hotels, Restaurants & Leisure		174		1,851
	POSCO		Metals & Mining		216		28,567
	POSCO Chemical Co. Ltd.		Construction Materials		76		2,734
	Posco International Corp.		Trading Companies & Distributors		168		1,566
	S-1 Corp.		Commercial Services & Supplies		64		4,206
	S-Oil Corp.		Oil, Gas & Consumable Fuels		140		6,567
a	Samsung Biologics Co. Ltd.		Life Sciences Tools & Services		42		16,630
	Samsung C&T Corp.		Industrial Conglomerates		282		20,756
	Samsung Card Co. Ltd.		Consumer Finance		106		2,604
	Samsung Electro-Mechanics Co. Ltd.		Electronic Equipment, Instruments & Components		186		14,928
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		15,672		614,727
a	Samsung Engineering Co. Ltd.		Construction & Engineering		546		4,552
	Samsung Fire & Marine Insurance Co. Ltd.		Insurance		110		13,916
a	Samsung Heavy Industries Co. Ltd.		Machinery		1,520		4,870
	Samsung Life Insurance Co. Ltd.		Insurance		218		7,700
	Samsung SDI Co. Ltd.		Electronic Equipment, Instruments & Components		176		34,771
	Samsung SDS Co. Ltd.		IT Services		110		13,509
	Samsung Securities Co. Ltd.		Capital Markets		200		4,822
	Shinhan Financial Group Co. Ltd.		Banks		1,562		36,697
	Shinsegae Co. Ltd.		Multiline Retail		24		4,288
a	SillaJen Inc.		Biotechnology		196		2,133
	SK Holdings Co. Ltd.		Industrial Conglomerates		112		15,411
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		1,704		116,600
	SK Innovation Co. Ltd.		Oil, Gas & Consumable Fuels		190		13,579
	SK Networks Co. Ltd.		Trading Companies & Distributors		538		2,011
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		74		10,759
	SKC Co. Ltd.		Chemicals		72		2,200
	Ssangyong Cement Industrial Co. Ltd.		Construction Materials		372		1,378
	Woori Financial Group Inc.		Banks		1,836		11,538
	Yuhan Corp.		Pharmaceuticals		32		6,020


							1,753,471

	Taiwan 13.3%
	Accton Technology Corp.		Communications Equipment		2,000		10,780
	Acer Inc.		Technology Hardware, Storage & Peripherals		10,000		5,159
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		1,000		8,250
	ASE Industrial Holding Co. Ltd.		Semiconductors & Semiconductor Equipment		11,500		22,284
	Asia Cement Corp.		Construction Materials		6,000		7,817
	Asustek Computer Inc.		Technology Hardware, Storage & Peripherals		2,000		13,525
	AU Optronics Corp.		Electronic Equipment, Instruments & Components		30,000		6,289
	Capital Securities Corp.		Capital Markets		2,840		881
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		2,480		16,032
	Cathay Financial Holding Co. Ltd.		Insurance		26,962		31,472
	Chailease Holding Co. Ltd.		Diversified Financial Services		4,120		12,466
	Chang Hwa Commercial Bank Ltd.		Banks		21,337		13,441



168	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Taiwan (continued)
	Cheng Shin Rubber Industry Co. Ltd.		Auto Components		6,000	$	6,111
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		2,010		5,038
	China Airlines Ltd.		Airlines		8,000		1,749
	China Development Financial Holding Corp.		Insurance		44,000		10,796
a	China Life Insurance Co. Ltd.		Insurance		11,550		6,435
e	China Motor Corp.		Automobiles		800		659
	China Steel Corp.		Metals & Mining		42,000		26,318
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		12,000		42,657
	Compal Electronics Inc.		Technology Hardware, Storage & Peripherals		12,000		6,865
	CTBC Financial Holding Co. Ltd.		Banks		62,000		36,698
	Delta Electronics Inc.		Electronic Equipment, Instruments & Components		7,000		27,892
	E.Sun Financial Holding Co. Ltd.		Banks		35,052		28,107
	Eclat Textile Co. Ltd.		Textiles, Apparel & Luxury Goods		700		5,567
	Epistar Corp.		Semiconductors & Semiconductor Equipment		2,000		1,706
	Eternal Materials Co. Ltd.		Chemicals		2,000		1,491
	EVA Airways Corp.		Airlines		7,124		2,094
a	Evergreen Marine Corp. Taiwan Ltd.		Marine		11,243		3,439
	Far Eastern International Bank		Banks		8,212		2,729
	Far Eastern New Century Corp.		Industrial Conglomerates		12,000		8,948
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		6,000		12,559
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		1,100		4,729
	First Financial Holding Co. Ltd.		Banks		34,743		22,575
	FIT Hon Teng Ltd.		Electronic Equipment, Instruments & Components		2,000		428
	Formosa Chemicals & Fibre Corp.		Chemicals		12,000		26,586
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		6,000		16,150
	Formosa Plastics Corp.		Chemicals		16,000		39,734
	Formosa Taffeta Co. Ltd.		Textiles, Apparel & Luxury Goods		2,000		2,037
	Foxconn Technology Co. Ltd.		Electronic Equipment, Instruments & Components		4,000		6,547
	Fubon Financial Holding Co. Ltd.		Insurance		26,000		32,283
	Giant Manufacturing Co. Ltd.		Leisure Equipment & Products		1,000		4,431
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		700		7,893
	Hon Hai Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		38,800		89,682
	Hotai Motor Co. Ltd.		Specialty Retail		1,000		16,236
	HTC Corp.		Technology Hardware, Storage & Peripherals		4,000		3,756
	Hua Nan Financial Holdings Co. Ltd.		Banks		31,153		18,594
	Innolux Corp.		Electronic Equipment, Instruments & Components		30,000		5,188
	Inventec Corp.		Technology Hardware, Storage & Peripherals		10,000		7,705
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		350		44,327
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		6,000		8,194
	MediaTek Inc.		Semiconductors & Semiconductor Equipment		5,000		54,147
	Mega Financial Holding Co. Ltd.		Banks		38,000		35,749
	Nan Ya Plastics Corp.		Chemicals		18,000		32,558
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		2,000		3,551
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		2,000		11,375
	Oriental Union Chemical Corp.		Chemicals		2,000		942
	Pegatron Corp.		Technology Hardware, Storage & Peripherals		6,000		11,507
	Pou Chen Corp.		Textiles, Apparel & Luxury Goods		10,000		8,482
	President Chain Store Corp.		Food & Staples Retailing		2,000		18,716
	Quanta Computer Inc.		Technology Hardware, Storage & Peripherals		10,000		19,906
	Realtek Semiconductor Corp.		Semiconductors & Semiconductor Equipment		2,000		14,450
	Shin Kong Financial Holding Co. Ltd.		Insurance		39,275		9,909
	SinoPac Financial Holdings Co. Ltd.		Banks		36,800		13,446
	Synnex Technology International Corp.		Electronic Equipment, Instruments & Components		4,000		4,914
	Taishin Financial Holding Co. Ltd.		Banks		35,357		13,679
	Taiwan Business Bank		Banks		21,372		6,848
	Taiwan Cement Corp.		Construction Materials		16,479		21,524



franklintempleton.com	Annual Report	169

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STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Taiwan (continued)
	Taiwan Cooperative Financial Holding Co. Ltd.		Banks		32,010	$	19,423
	Taiwan Fertilizer Co. Ltd.		Chemicals		4,000		5,529
	Taiwan Glass Industry Corp.		Building Products		4,000		977
	Taiwan High Speed Rail Corp.		Transportation Infrastructure		8,000		7,605
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		6,000		19,820
	Taiwan Secom Co. Ltd.		Commercial Services & Supplies		1,000		2,708
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		80,000		724,832
	Teco Electric & Machinery Co. Ltd.		Electrical Equipment		6,000		4,782
	The Shanghai Commercial & Savings Bank Ltd.		Banks		10,000		13,012
a	TPK Holding Co. Ltd.		Electronic Equipment, Instruments & Components		2,000		2,292
	U-Ming Marine Transport Corp.		Marine		2,000		1,720
	Uni-President Enterprises Corp.		Food Products		16,000		34,707
	Unimicron Technology Corp.		Electronic Equipment, Instruments & Components		6,000		6,349
	United Microelectronics Corp.		Semiconductors & Semiconductor Equipment		34,000		15,347
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		2,000		3,922
	Walsin Lihwa Corp.		Electrical Equipment		8,000		2,910
	Walsin Technology Corp.		Electronic Equipment, Instruments & Components		2,000		10,648
	Wan Hai Lines Ltd.		Marine		2,000		909
	Win Semiconductors Corp.		Semiconductors & Semiconductor Equipment		1,000		8,713
	Wistron Corp.		Technology Hardware, Storage & Peripherals		10,293		8,339
	Wiwynn Corp.		Technology Hardware, Storage & Peripherals		300		6,964
	Yageo Corp.		Electronic Equipment, Instruments & Components		1,000		9,077
	Yuanta Financial Holding Co. Ltd.		Diversified Financial Services		36,000		18,511
	Yulon Motor Co. Ltd.		Automobiles		2,000		972
	Zhen Ding Technology Holding Ltd.		Electronic Equipment, Instruments & Components		2,000		6,151


							1,961,251

	Thailand 2.6%
	Advanced Info Service PCL		Wireless Telecommunication Services		3,800		23,274
	Airports of Thailand Public Co. Ltd., NVDR		Transportation Infrastructure		14,800		22,887
a	Asset World Corp. PCL		Hotels, Restaurants & Leisure		24,000		2,384
	B Grimm Power PCL, NVDR		Independent Power and Renewable Electricity Producers		2,389		2,894
	Bangkok Bank PCL, fgn.		Banks		1,600		4,973
	Bangkok Dusit Medical Services PCL		Health Care Providers & Services		30,400		17,508
	Bangkok Expressway and Metro PCL, NVDR		Transportation Infrastructure		25,800		6,093
	Bangkok Life Assurance PCL, NVDR		Insurance		1,400		508
	Banpu PCL, NVDR		Oil, Gas & Consumable Fuels		15,200		2,455
	Berli Jucker PCL, NVDR		Food & Staples Retailing		3,400		4,196
	BTS Group Holdings PCL, NVDR		Road & Rail		27,600		7,653
	Bumrungrad Hospital PCL		Health Care Providers & Services		1,200		4,168
	Central Pattana PCL		Real Estate Management & Development		8,600		11,203
	Charoen Pokphand Foods PCL, NVDR		Food Products		12,400		9,182
	CP ALL PCL		Food & Staples Retailing		17,600		32,714
	Delta Electronics Thailand PCL		Electronic Equipment, Instruments & Components		1,400		1,450
	Digital Telecommunications Infrastructure Fund, fgn.		Diversified Financial Services		13,400		6,125
	Electricity Generating PCL		Independent Power and Renewable Electricity Producers		1,000		7,039
	Energy Absolute PCL, NVDR		Independent Power and Renewable Electricity Producers		5,600		5,759
	Global Power Synergy PCL		Independent Power and Renewable Electricity Producers		2,434		4,228
	Gulf Energy Development PCL, NVDR		Independent Power and Renewable Electricity Producers		2,600		11,884
	Home Product Center PCL, NVDR		Specialty Retail		20,000		6,765



170	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Thailand (continued)
	Indorama Ventures PCL, NVDR		Chemicals		6,400	$	4,173
	Intouch Holdings PCL		Wireless Telecommunication Services		7,200		10,970
	IRPC PCL		Oil, Gas & Consumable Fuels		36,400		2,374
	Kasikornbank PCL, fgn.		Banks		4,000		11,092
	Kasikornbank PCL, NVDR		Banks		2,800		7,807
	Krung Thai Bank PCL		Banks		18,000		6,253
	Krungthai Card PCL, NVDR		Consumer Finance		4,644		3,856
	Land and Houses PCL, NVDR		Real Estate Management & Development		22,000		4,491
	Minor International PCL		Hotels, Restaurants & Leisure		12,600		6,450
	Muangthai Capital PCL		Consumer Finance		2,400		2,560
	Osotspa PCL, NVDR		Beverages		4,200		4,575
	PTT Exploration and Production PCL, NVDR		Oil, Gas & Consumable Fuels		4,800		9,873
	PTT Global Chemical PCL, NVDR		Chemicals		6,800		6,320
	PTT PCL		Oil, Gas & Consumable Fuels		48,600		45,538
	Ratch Group PCL, NVDR		Independent Power and Renewable Electricity Producers		2,800		4,863
	Siam City Cement PCL, NVDR		Construction Materials		200		725
	Siam Commercial Bank PCL		Banks		7,600		16,037
	Siam Makro Public Company Ltd.		Food & Staples Retailing		800		804
	Thai Oil PCL		Oil, Gas & Consumable Fuels		3,600		3,373
	Thai Union Group PCL		Food Products		10,000		4,205
	The Siam Cement PCL		Construction Materials		2,600		25,669
	TMB Bank PCL, B544N7906		Banks		128,951		3,458
	Total Access Communication PCL		Wireless Telecommunication Services		2,400		2,980
	True Corporation PCL, NVDR		Diversified Telecommunication Services		36,600		3,502


							387,290

	Total Common Stocks and Other Equity Interests (Cost $18,068,411)						14,538,820

	Preferred Stocks 0.8%
	South Korea 0.8%
f	Amorepacific Corp., 1.686%, pfd.		Personal Products		30		1,469
f	CJ CheilJedang Corp., 4.011%, pfd.		Food Products		4		291
f	Hyundai Motor Co., 7.849%, pfd.		Automobiles		76		3,221
f	Hyundai Motor Co., 7.206%, pfd., 2		Automobiles		124		5,796
f	LG Chem Ltd., 1.385%, pfd.		Chemicals		24		2,918
f	LG Electronics Inc., 4.482%, pfd.		Household Durables		66		968
f	LG Household & Health Care Ltd., 1.727%, pfd.		Personal Products		10		5,257
f	Samsung Electronics Co. Ltd., 2.651%, pfd.		Technology Hardware, Storage & Peripherals		2,752		90,652
f	Samsung Fire & Marine Insurance Co. Ltd., 7.594%, pfd.		Insurance		8		736

	Total Preferred Stocks (Cost $137,287)						111,308

	Warrants (Cost $—) 0.0%^†
	Thailand 0.0%^†
a	BTS Group Holdings PCL, wts., 2/16/2021		Road & Rail		2,760		49

	Total Investments before Short Term Investments (Cost $18,205,698)						14,650,177



franklintempleton.com	Annual Report	171

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Asia ex Japan ETF (continued)

Industry

Shares

Value

Short Term Investments 0.0%^†

Investments from Cash Collateral Received for Loaned Securities 0.0%^†

United States 0.0%^†

g,h

Institutional Fiduciary Trust Portfolio, 0.32%

Money Market Funds

5,040

Total Investments (Cost $18,210,738) 99.6%

14,655,217

Other Assets, less Liabilities 0.4%

56,819

Net Assets 100.0%

14,712,036

See Abbreviations on page 351.

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the aggregate value of these securities was $296,552, representing 2.0% of net assets.

^cSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the aggregate value of these securities was $89,976, representing 0.6% of net assets.

^dA portion or all of the security is on loan at March 31, 2020. See Note 1(d).

^eFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.

^fVariable rate security. The rate shown represents the yield at period end.

^gSee Note 3(c) regarding investments in affiliated management investment companies.

^hThe rate shown is the annualized seven-day effective yield at period end.



172	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Australia ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.63		$	24.67		$	25.23


Income from investment operations^b:

Net investment income^c		1.07			1.29			0.52

Net realized and unrealized gains (losses)		(7.18	)		(0.37	)		(1.03	)


Total from investment operations		(6.11	)		0.92			(0.51	)


Less distributions from net investment income		(1.14	)		(0.96	)		(0.05	)


Net asset value, end of year	$	17.38		$	24.63		$	24.67


Total return^d		(26.23)%			4.00%			(2.05)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		4.28%			5.30%			4.96%

Supplemental data

Net assets, end of year (000’s)		$7,820			$7,389			$2,467

Portfolio turnover rate^f		8.16%	^g		4.56%			1.63%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 8.16%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	173

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Australia ETF



		Industry			Shares		Value
	Common Stocks 99.9%
	Australia 97.6%
	Adelaide Brighton Ltd.		Construction Materials			4,833	$	6,123
a	Afterpay Ltd.		IT Services			2,304		26,511
	AGL Energy Ltd.		Multi-Utilities			6,768		71,207
	ALS Ltd.		Professional Services			5,112		17,396
	Altium Ltd.		Software			1,152		20,158
	Alumina Ltd.		Metals & Mining			26,910		24,047
a	AMP Ltd.		Diversified Financial Services			36,873		30,128
	Ansell Ltd.		Health Care Equipment & Supplies			1,386		23,065
	Apa Group		Gas Utilities			12,519		78,615
	Aristocrat Leisure Ltd.		Hotels, Restaurants & Leisure			6,768		88,439
	Atlas Arteria Ltd.		Transportation Infrastructure			9,405		31,717
	Aurizon Holdings Ltd.		Road & Rail			19,971		51,704
	AusNet Services		Electric Utilities			19,152		20,045
	Australia & New Zealand Banking Group Ltd.		Banks			30,051		311,941
	Australian Stock Exchange Ltd.		Capital Markets			2,061		97,244
	Bank of Queensland Ltd.		Banks			4,824		14,763
	Beach Energy Ltd.		Oil, Gas & Consumable Fuels			18,648		13,126
	Bendigo and Adelaide Bank Ltd.		Banks			5,184		19,894
	BHP Group Ltd.		Metals & Mining			31,248		554,253
	Bluescope Steel Ltd.		Metals & Mining			5,445		28,760
	Boral Ltd.		Construction Materials			12,537		15,730
	Brambles Ltd.		Commercial Services & Supplies			16,389		105,926
	Caltex Australia Ltd.		Oil, Gas & Consumable Fuels			2,646		36,147
	Challenger Ltd.		Diversified Financial Services			6,138		15,027
	Charter Hall Group		Equity Real Estate Investment Trusts (REITs	)		4,914		20,632
	Cimic Group Ltd.		Construction & Engineering			1,026		14,600
	Cleanaway Waste Management Ltd.		Commercial Services & Supplies			14,301		14,836
	Coca-Cola Amatil Ltd.		Beverages			5,427		29,363
	Cochlear Ltd.		Health Care Equipment & Supplies			657		75,377
	Coles Group Ltd.		Food & Staples Retailing			12,717		117,997
	Commonwealth Bank of Australia		Banks			18,783		710,691
	Computershare Ltd.		IT Services			5,130		30,488
	Crown Resorts Ltd.		Hotels, Restaurants & Leisure			3,771		17,541
	CSL Ltd.		Biotechnology			4,797		871,054
	CSR Ltd.		Construction Materials			5,202		10,093
	Dexus		Equity Real Estate Investment Trusts (REITs	)		11,583		64,442
	Domain Holdings Australia Ltd.		Interactive Media & Services			2,439		3,015
	Domino’s Pizza Enterprises Ltd.		Hotels, Restaurants & Leisure			639		19,985
	Downer EDI Ltd.		Commercial Services & Supplies			6,291		11,474
	Evolution Mining Ltd.		Metals & Mining			11,151		26,071
	Flight Centre Travel Group Ltd.		Hotels, Restaurants & Leisure			594		3,603
	Fortescue Metals Group Ltd.		Metals & Mining			16,866		103,228
	Goodman Group		Equity Real Estate Investment Trusts (REITs	)		18,882		139,836
	GPT Group		Equity Real Estate Investment Trusts (REITs	)		20,547		45,650
	Harvey Norman Holdings Ltd.		Multiline Retail			6,282		11,342
	IDP Education Ltd.		Diversified Consumer Services			1,350		9,552
	Iluka Resources Ltd.		Metals & Mining			4,437		18,955
	Incitec Pivot Ltd.		Chemicals			17,271		21,353
	Insurance Australia Group Ltd.		Insurance			24,507		92,997
	IOOF Holdings Ltd.		Capital Markets			3,636		8,145
	James Hardie Industries PLC, CDI		Construction Materials			4,689		53,151
	JB Hi-Fi Ltd.		Specialty Retail			1,197		20,514
	LendLease Group		Real Estate Management & Development			5,994		37,787
	Macquarie Group Ltd.		Capital Markets			3,402		178,548
	Magellan Financial Group Ltd.		Capital Markets			1,449		38,596
	Medibank Private Ltd.		Insurance			29,232		47,591
	Metcash Ltd.		Food & Staples Retailing			9,594		18,497
	Mirvac Group		Equity Real Estate Investment Trusts (REITs	)		41,454		53,027



174	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Australia ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Australia (continued)
	National Australia Bank Ltd.		Banks			31,248	$	319,011
	Newcrest Mining Ltd.		Metals & Mining			8,154		115,035
	Northern Star Resources Ltd.		Metals & Mining			7,533		48,549
a	Nufarm Ltd.		Chemicals			3,375		10,535
	Oil Search Ltd.		Oil, Gas & Consumable Fuels			14,202		20,688
	Orica Ltd.		Chemicals			4,275		40,164
	Origin Energy Ltd.		Oil, Gas & Consumable Fuels			18,630		49,943
	Orora Ltd.		Containers & Packaging			12,780		18,929
	OZ Minerals Ltd.		Metals & Mining			3,357		15,102
	Perpetual Ltd.		Capital Markets			468		7,227
	Platinum Asset Management Ltd.		Capital Markets			3,177		6,475
	Qantas Airways Ltd.		Airlines			6,156		12,170
	QBE Insurance Group Ltd.		Insurance			13,887		73,096
	Qube Logistics Holdings Ltd.		Transportation Infrastructure			13,257		17,445
	Ramsay Health Care Ltd.		Health Care Providers & Services			1,647		57,741
	REA Group Ltd.		Interactive Media & Services			531		25,022
	Rio Tinto Ltd.		Metals & Mining			3,942		204,042
	Santos Ltd.		Oil, Gas & Consumable Fuels			18,891		39,543
	Scentre Group		Equity Real Estate Investment Trusts (REITs	)		55,701		53,354
	Seek Ltd.		Professional Services			3,708		33,656
	Seven Group Holdings Ltd.		Trading Companies & Distributors			1,395		9,597
	Shopping Centres Australasia Property Group		Equity Real Estate Investment Trusts (REITs	)		9,801		13,617
	Sonic Healthcare Ltd.		Health Care Providers & Services			5,022		74,784
	South32 Ltd.		Metals & Mining			52,443		56,653
	Stockland		Equity Real Estate Investment Trusts (REITs	)		25,308		39,189
	Suncorp-Metway Ltd.		Insurance			13,367		74,695
	Sydney Airport		Transportation Infrastructure			11,745		40,184
	Tabcorp Holdings Ltd.		Hotels, Restaurants & Leisure			20,061		31,064
	Telstra Corp. Ltd.		Diversified Telecommunication Services			44,172		82,999
	The Star Entertainment Group Ltd.		Hotels, Restaurants & Leisure			8,739		11,500
	TPG Telecom Ltd.		Diversified Telecommunication Services			3,834		16,168
	Transurban Group		Transportation Infrastructure			28,737		211,765
	Treasury Wine Estates Ltd.		Beverages			7,641		46,907
	Vicinity Centres		Equity Real Estate Investment Trusts (REITs	)		33,498		21,220
a	Vocus Group Ltd.		Diversified Telecommunication Services			6,327		9,604
	Washington H. Soul Pattinson & Co. Ltd.		Oil, Gas & Consumable Fuels			963		10,002
	Wesfarmers Ltd.		Multiline Retail			12,006		251,825
	Westpac Banking Corp.		Banks			38,304		386,826
	Whitehaven Coal Ltd.		Oil, Gas & Consumable Fuels			9,081		10,699
	Wisetech Global Ltd.		Software			873		9,137
	Woodside Petroleum Ltd.		Oil, Gas & Consumable Fuels			9,909		110,440
	Woolworths Group Ltd.		Food & Staples Retailing			13,347		286,733
	Worley Ltd.		Energy Equipment & Services			3,402		12,806


								7,628,138

	New Zealand 0.5%
a	Xero Ltd.		Software			990		41,149

	United States 1.8%
	Amcor PLC, IDR		Containers & Packaging			16,974		135,472
	Sims Ltd.		Metals & Mining			1,773		6,630


								142,102

	Total Investments (Cost $11,774,833) 99.9%							7,811,389
	Other Assets, less Liabilities 0.1%							8,887

	Net Assets 100.0%						$	7,820,276

See Abbreviations on page 351.

^aNon-income producing.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	175

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Brazil ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.72		$	27.87		$	24.37


Income from investment operations^b:

Net investment income^c		1.07			0.80			0.50

Net realized and unrealized gains (losses)		(11.33	)		(2.07	)		3.11


Total from investment operations		(10.26	)		(1.27	)		3.61


Less distributions from net investment income		(1.00	)		(0.88	)		(0.11	)


Net asset value, end of year	$	14.46		$	25.72		$	27.87


Total return^d		(41.69)%			(3.98)%			14.86%

Ratios to average net assets^e

Total expenses		0.23%			0.19%			0.19%

Net investment income		4.26%			3.37%			4.53%

Supplemental data

Net assets, end of year (000’s)		$102,700			$20,579			$44,593

Portfolio turnover rate^f		36.07%	^g		39.76%			4.79%

^aFor the period November 3, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 17.47%.



176	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Brazil ETF



		Industry		Shares		Value
	Common Stocks 70.4%
	Brazil 68.9%
a	Aliansce Sonae Shopping Centers SA		Real Estate Management & Development		49,700	$	254,891
	Ambev SA		Beverages		1,725,320		3,965,182
	Atacadao Distribuicao Comercio e Industria Ltd.		Food & Staples Retailing		134,900		536,573
a	B2W Cia Digital		Internet & Direct Marketing Retail		76,100		704,276
	B3 SA – Brasil Bolsa Balcao		Capital Markets		788,100		5,454,978
	Banco Bradesco SA		Banks		411,800		1,493,456
	Banco BTG Pactual SA		Capital Markets		99,400		637,037
	Banco do Brasil SA		Banks		341,104		1,834,225
	Banco Santander Brasil SA		Banks		163,300		839,704
	BB Seguridade Participacoes SA		Insurance		269,800		1,292,664
	BR Malls Paricipacoes SA		Real Estate Management & Development		298,200		573,793
a	BRF SA		Food Products		227,200		661,020
	CCR SA		Transportation Infrastructure		447,300		1,011,612
	Centrais Eletricas Brasileiras SA		Electric Utilities		184,600		849,218
	Cia Brasileira de Distribuicao		Food & Staples Retailing		63,977		818,308
	Cia de Saneamento do Parana		Water Utilities		78,000		358,674
	Cia Siderurgica Nacional SA		Metals & Mining		241,400		324,870
	Cielo SA		IT Services		440,200		376,834
	Cogna Educacao		Diversified Consumer Services		667,400		514,711
	Companhia de Locacao das Americas		Road & Rail		85,200		172,319
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities		134,900		1,017,225
	Companhia Energetica de Minas Gerais		Electric Utilities		28,400		49,555
	Companhia Paranaense de Energia-Copel		Electric Utilities		7,100		79,917
a	Cosan Logistica SA		Road & Rail		49,700		160,218
	Cosan SA		Oil, Gas & Consumable Fuels		63,900		662,335
	CPFL Energia SA		Electric Utilities		78,100		404,609
	CVC Brasil Operadora e Agencia de Viagens SA		Hotels, Restaurants & Leisure		49,700		106,365
	Cyrela Brazil Realty SA Empreendimentos e Participacoes		Household Durables		99,400		270,798
	Duratex SA		Paper & Forest Products		106,500		191,990
	EDP-Energias do Brasil SA		Electric Utilities		120,700		378,860
a	Embraer SA		Aerospace & Defense		291,100		535,436
	Energisa SA		Electric Utilities		75,180		547,913
a	Eneva SA		Independent Power and Renewable Electricity Producers		28,400		190,279
	Engie Brasil Energia SA		Independent Power and Renewable Electricity Producers		71,000		532,781
	Equatorial Energia SA		Electric Utilities		340,800		1,156,457
	Fleury SA		Health Care Providers & Services		85,200		332,481
	Grendene SA		Textiles, Apparel & Luxury Goods		99,400		144,311
	Guararapes Confeccoes SA		Textiles, Apparel & Luxury Goods		28,400		59,739
b,c	Hapvida Participacoes e Investimentos SA, 144A, Reg S		Health Care Providers & Services		56,800		464,335
	Hypera SA		Pharmaceuticals		156,200		861,018
	IRB Brasil Resseguros SA		Insurance		326,689		609,715
	Itau Unibanco Holding SA		Banks		205,900		876,542
	Klabin SA		Containers & Packaging		227,200		700,445
	Localiza Rent a Car SA		Road & Rail		227,240		1,152,279
	Lojas Americanas SA		Multiline Retail		85,281		237,595
	Lojas Renner SA		Multiline Retail		312,420		2,021,520
	M Dias Branco SA		Food Products		35,500		199,177
	Magazine Luiza SA		Multiline Retail		255,600		1,921,460
	Multiplan Empreendimentos Imobiliarios SA		Real Estate Management & Development		106,500		391,783
	Natura & Co Holding SA		Personal Products		262,700		1,303,725
	Neoenergia SA		Electric Utilities		85,200		282,379



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Brazil ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Brazil (continued)
	Notre Dame Intermedica Participacoes SA		Health Care Providers & Services		177,500	$	1,538,657
	Odontoprev SA		Health Care Providers & Services		106,500		297,328
	Petrobras Distribuidora SA		Specialty Retail		269,800		806,809
	Petroleo Brasileiro SA		Oil, Gas & Consumable Fuels		1,462,640		3,987,531
	Porto Seguro SA		Insurance		35,500		307,458
	Qualicorp Consultoria E Corretora de Seguros SA		Health Care Providers & Services		92,300		419,982
	Raia Drogasil SA		Food & Staples Retailing		89,873		1,764,849
a	Rumo SA		Road & Rail		440,260		1,667,973
	Sao Martinho SA		Food Products		63,900		182,093
	Sul America SA		Insurance		85,200		555,231
	Suzano SA		Paper & Forest Products		319,572		2,205,198
	Telefonica Brasil SA		Diversified Telecommunication Services		14,200		138,534
	Tim Participacoes SA		Wireless Telecommunication Services		312,400		749,288
	Totvs SA		Software		63,900		575,107
	Transmissora Alianca de Energia Eletrica SA		Electric Utilities		85,200		424,308
	Ultrapar Participacoes SA		Oil, Gas & Consumable Fuels		340,800		823,319
	Vale SA		Metals & Mining		1,363,200		11,359,562
a	Via Varejo SA		Specialty Retail		149,100		151,785
	Weg SA		Electrical Equipment		291,100		1,884,130
a	YDUQS PART		Diversified Consumer Services		99,400		424,883

							70,781,612

	United States 1.5%
	JBS SA		Food Products		383,400		1,503,559

	Total Common Stocks (Cost $132,973,072)						72,285,171

	Preferred Stocks 29.3%
	Brazil 29.3%
d	Alpargatas SA, 0.237%, pfd.		Textiles, Apparel & Luxury Goods		78,100		348,744
a	Azul SA, pdf.		Airlines		78,100		264,269
d	Banco Bradesco SA, 10.010%, pfd.		Banks		1,597,580		6,397,589
d	Banco do Estado do Rio Grande do Sul SA, 9.883%, pfd., B		Banks		78,100		179,642
d	Bradespar SA, 4.781%, pfd.		Metals & Mining		92,300		518,927
d	Braskem SA, 4.872%, pfd., A		Chemicals		78,100		259,299
d	Centrais Eletricas Brasileiras SA, 5.651%, pfd., B		Electric Utilities		106,500		534,492
d	Cia de Transmissao de Energia Eletrica Paulista, 7.965%, pfd.		Electric Utilities		71,000		259,683
d	Cia Energetica de Sao Paulo, 3.300%, pfd., B		Independent Power and Renewable Electricity Producers		71,000		367,964
d	Companhia Energetica de Minas Gerais, 8.137%, pfd.		Electric Utilities		369,200		634,244
d	Companhia Paranaense de Energia, 5.320%, pfd., B		Electric Utilities		42,600		439,421
d	Gerdau SA, 2.090%, pfd.		Metals & Mining		411,800		797,939
a	Gol Linhas Aereas Inteligentes SA, pfd.		Airlines		42,600		93,387
d	Itau Unibanco Holding SA, 8.709%, pfd.		Banks		1,874,400		8,344,560
d	Itausa-Investimentos Itau SA, 9.918%, pfd.		Banks		1,732,460		2,929,409
d	Lojas Americanas SA, 1.011%, pfd.		Multiline Retail		298,269		1,035,137
d	Petroleo Brasileiro SA, 6.665%, pfd.		Oil, Gas & Consumable Fuels		1,874,440		5,055,994
d	Telefonica Brasil SA, 6.951%, pfd.		Diversified Telecommunication Services		163,300		1,556,932



178	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE Brazil ETF (continued)



		Industry		Shares		Value
	Preferred Stocks (continued)
	Brazil (continued)
d	Usinas Siderurgicas de Minas Gerais SA Usiminas, 1.626%, pfd., A		Metals & Mining		142,000	$	134,701

	Total Preferred Stocks (Cost $63,850,427)						30,152,333

	Total Investments (Cost $196,823,499) 99.7%						102,437,504
	Other Assets, less Liabilities 0.3%						262,040

	Net Assets 100.0%					$	102,699,544

See Abbreviations on page 351.

^aNon-income producing.

^cSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the value of this security was $464,335, representing 0.5% of net assets.

^dVariable rate security. The rate shown represents the yield at period end.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

Mini Bovespa Index

Long

224,528

4/15/20

(9,433

)

*As of period end.

See Note 8 regarding other derivative information.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Canada ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.13		$	23.77		$	24.80


Income from investment operations^b:

Net investment income^c		0.69			0.67			0.24

Net realized and unrealized gains (losses)		(4.72	)		0.33			(1.25	)


Total from investment operations		(4.03	)		1.00			(1.01	)


Less distributions from net investment income		(0.60	)		(0.64	)		(0.02	)


Net asset value, end of year	$	19.50		$	24.13		$	23.77


Total return^d		(17.25)%			4.48%			(4.06)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		2.73%			2.79%			2.39%

Supplemental data

Net assets, end of year (000’s)		$4,876			$4,827			$2,377

Portfolio turnover rate^f		4.57%	^g		6.95%			1.26%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 4.57%.



180	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Canada ETF



		Industry			Shares		Value
	Common Stocks 99.7%
	Canada 97.2%
	Agnico Eagle Mines Ltd.		Metals & Mining			1,155	$	45,588
	Alimentation Couche-Tard Inc., B		Food & Staples Retailing			4,135		96,305
	Bank of Montreal		Banks			3,100		154,766
	Bank of Nova Scotia		Banks			5,915		238,827
	Barrick Gold Corp.		Metals & Mining			8,545		155,249
	BCE Inc.		Diversified Telecommunication Services			1,455		59,014
	Brookfield Asset Management Inc., A		Capital Markets			4,375		191,740
	Canadian Imperial Bank of Commerce		Banks			2,155		124,151
	Canadian National Railway Co.		Road & Rail			3,460		267,470
	Canadian Natural Resources Ltd.		Oil, Gas & Consumable Fuels			5,630		76,143
	Canadian Pacific Railway Ltd.		Road & Rail			665		145,091
	Canadian Tire Corp. Ltd., A		Multiline Retail			280		16,709
	Canadian Utilities Ltd., A		Multi-Utilities			585		13,826
a	Canopy Growth Corp.		Pharmaceuticals			875		12,578
	Cenovus Energy Inc.		Oil, Gas & Consumable Fuels			4,940		9,857
a	CGI Inc., A		IT Services			1,150		61,558
	Constellation Software Inc.		Software			97		87,164
	Dollarama Inc.		Multiline Retail			1,485		40,731
	Enbridge Inc.		Oil, Gas & Consumable Fuels			9,610		276,684
	Fairfax Financial Holdings Ltd.		Insurance			130		39,404
	Fortis Inc.		Electric Utilities			2,235		85,217
	Franco-Nevada Corp.		Metals & Mining			900		88,909
	George Weston Ltd.		Food & Staples Retailing			345		24,391
	Great-West Lifeco Inc.		Insurance			1,265		21,605
	Husky Energy Inc.		Oil, Gas & Consumable Fuels			1,475		3,668
	Hydro One Ltd.		Electric Utilities			1,520		27,061
	IGM Financial Inc.		Capital Markets			410		6,726
	Imperial Oil Ltd.		Oil, Gas & Consumable Fuels			1,115		12,463
	Intact Financial Corp.		Insurance			690		58,963
	Inter Pipeline Ltd.		Oil, Gas & Consumable Fuels			2,035		12,038
	Loblaw Cos. Ltd.		Food & Staples Retailing			870		44,345
	Magna International Inc.		Auto Components			1,415		44,647
	Manulife Financial Corp.		Insurance			9,420		116,943
	Metro Inc., A		Food & Staples Retailing			1,150		45,981
	National Bank of Canada		Banks			1,625		62,096
	Nutrien Ltd.		Chemicals			2,780		93,965
	Pembina Pipeline Corp.		Oil, Gas & Consumable Fuels			2,650		49,152
	Power Corp. of Canada		Insurance			2,850		45,332
	Restaurant Brands International Inc.		Hotels, Restaurants & Leisure			1,355		53,987
	RioCan REIT		Equity Real Estate Investment Trusts (REITs	)		1,525		17,282
	Rogers Communications Inc., B		Wireless Telecommunication Services			1,700		70,157
	Royal Bank of Canada		Banks			7,010		429,312
	Saputo Inc.		Food Products			1,115		26,509
	Shaw Communications Inc.		Media			2,180		34,966
a	Shopify Inc., A		IT Services			485		200,910
	Sun Life Financial Inc.		Insurance			2,885		91,758
	Suncor Energy Inc.		Oil, Gas & Consumable Fuels			7,485		118,111
	TC Energy Corp.		Oil, Gas & Consumable Fuels			4,525		198,854
	Teck Resources Ltd., B		Metals & Mining			2,335		17,504
	TELUS Corp.		Diversified Telecommunication Services			1,950		30,483
	The Toronto-Dominion Bank		Banks			8,830		371,166
	Thomson Reuters Corp.		Professional Services			955		64,331
	Wheaton Precious Metals Corp.		Metals & Mining			2,165		58,911


								4,740,598



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Canada ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	United States 2.5%
a	Bausch Health Cos.Inc.		Pharmaceuticals		1,675	$	25,666
	Waste Connections Inc.		Commercial Services & Supplies		1,270		97,435


							123,101

	Total Investments (Cost $6,365,137) 99.7%						4,863,699
	Other Assets, less Liabilities 0.3%						12,320

	Net Assets 100.0%					$	4,876,019

See Abbreviations on page 351.

^aNon-income producing.



182	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE China ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.01		$	25.99		$	24.95


Income from investment operations^b:

Net investment income (loss)^c		0.45			0.40			(0.01	)

Net realized and unrealized gains (losses)		(1.78	)		(1.99	)		1.05


Total from investment operations		(1.33	)		(1.59	)		1.04


Less distributions from net investment income		(0.49	)		(0.39	)		—	^d


Net asset value, end of year	$	22.19		$	24.01		$	25.99


Total return^e		(5.64)%			(5.94)%			4.17%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.19%			0.19%			0.19%

Expenses net waiver and payments by affiliates		0.19%			—%			—%

Net investment income (loss)		1.94%			1.70%			(0.12)%

Supplemental data

Net assets, end of year (000’s)		$48,807			$43,220			$31,191

Portfolio turnover rate^g		32.47%	^h		7.21%			2.71%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.01 per share.

^eTotal return is not annualized for periods less than one year. Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption at net asset value on the last day of the period.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 32.47%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	183

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE China ETF



		Industry		Shares		Value
	Common Stocks 100.0%
	China 99.3%
	360 Security Technology Inc., A		Software		2,200	$	5,875
a	3SBio Inc.		Biotechnology		33,000		34,359
a	51job Inc., ADR		Professional Services		671		41,193
a	58.com Inc., ADR		Interactive Media & Services		2,552		124,333
	A-Living Services Co. Ltd., H		Commercial Services & Supplies		8,250		40,128
	ADAMA Ltd.		Chemicals		3,300		4,982
	AECC Aviation Power Co. Ltd., A		Aerospace & Defense		2,200		6,580
	Agile Group Holdings Ltd.		Real Estate Management & Development		44,000		47,628
	Agricultural Bank of China Ltd., A		Banks		170,500		81,062
	Agricultural Bank of China Ltd., H		Banks		803,000		322,199
	Aier Eye Hospital Group Co. Ltd.		Health Care Providers & Services		3,300		18,334
	Air China Ltd., A		Airlines		9,900		9,092
	Air China Ltd., H		Airlines		44,000		28,384
	Aisino Co.Ltd., A		Software		4,400		11,850
a	Alibaba Group Holding Ltd., ADR		Internet & Direct Marketing Retail		45,331		8,815,973
a	Alibaba Health Information Technology Ltd.		Health Care Technology		96,000		160,518
a	Aluminum Corp. of China Ltd., A		Metals & Mining		14,300		5,810
a	Aluminum Corp. of China Ltd., H		Metals & Mining		88,000		17,484
	Angang Steel Co. Ltd., H		Metals & Mining		44,000		11,581
	Anhui Anke Biotechnology Group Co. Ltd.		Biotechnology		1,100		2,142
	Anhui Conch Cement Co. Ltd., A		Construction Materials		4,400		34,203
	Anhui Conch Cement Co. Ltd., H		Construction Materials		31,000		215,375
	Anhui Gujing Distillery Co. Ltd.		Beverages		200		3,223
	Anhui Gujing Distillery Co. Ltd., B		Beverages		3,300		26,052
a	Anhui Jianghuai Automobile Group Corp. Ltd., A		Automobiles		3,300		2,314
	Anta Sports Products Ltd.		Textiles, Apparel & Luxury Goods		31,900		234,386
a	Anxin Trust Co. Ltd.		Capital Markets		7,700		2,716
a	Autohome Inc., ADR		Interactive Media & Services		1,452		103,121
	Avary Holding Shenzhen Co. Ltd., A		Electronic Equipment, Instruments & Components		1,100		4,929
	AVIC Aircraft Co. Ltd.		Aerospace & Defense		4,400		9,845
	Avic Capital Co. Ltd., A		Diversified Financial Services		16,500		9,148
	AVIC Electromechanical Systems Co. Ltd.		Aerospace & Defense		5,500		5,594
	Avic Heavy Machinery Co. Ltd., A		Machinery		3,300		4,120
	AVIC Jonhon OptronicTechnology Co. Ltd.		Electronic Equipment, Instruments & Components		1,100		5,307
a	AVIC Shenyang Aircraft Co. Ltd., A		Aerospace & Defense		2,200		8,886
	AviChina Industry & Technology Co. Ltd., H		Aerospace & Defense		66,000		25,460
	BAIC Motor Corp. Ltd., H		Automobiles		60,500		24,041
a	Baidu Inc., ADR		Interactive Media & Services		7,139		719,540
	Bank of Beijing Co. Ltd., A		Banks		24,200		16,490
	Bank of Changsha Co. Ltd., A		Banks		4,400		4,798
	Bank of China Ltd., A		Banks		94,600		46,444
	Bank of China Ltd., H		Banks		1,958,000		750,269
	Bank of Communications Co. Ltd., A		Banks		42,900		31,230
	Bank of Communications Co. Ltd., H		Banks		187,000		114,600
	Bank of Guiyang Co. Ltd.		Banks		3,300		3,566
	Bank of Jiangsu Co. Ltd., A		Banks		5,500		4,663
	Bank of Nanjing Co. Ltd., A		Banks		8,800		9,001
	Bank of Ningbo Co. Ltd., A		Banks		6,600		21,472
	Bank of Shanghai Co. Ltd., A		Banks		18,700		21,739
	Baoshan Iron & Steel Co. Ltd., A		Metals & Mining		22,000		15,115
	BBMG Corp., A		Construction Materials		13,200		6,108
	BBMG Corp., H		Construction Materials		55,000		13,766
	Beijing Capital Co. Ltd., A		Water Utilities		14,300		6,093
	Beijing Capital International Airport Co. Ltd.		Transportation Infrastructure		44,000		28,043
	Beijing Dabeinong Technology Group Co. Ltd.		Food Products		5,500		6,712
	Beijing Enlight Media Co. Ltd.		Entertainment		3,300		4,148
	Beijing Enterprises Holdings Ltd.		Gas Utilities		11,000		40,376
	Beijing Enterprises Water Group Ltd.		Water Utilities		154,000		60,202



184	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
a	Beijing Jetsen Technology Co. Ltd.		Software		5,500	$	2,716
	Beijing Jingneng Clean Energy Co. Ltd., H		Independent Power and Renewable Electricity Producers		44,000		6,358
a	Beijing Kunlun Tech Co. Ltd.		Entertainment		2,200		5,525
a	Beijing Lanxum Technology Co. Ltd.		IT Services		1,100		2,393
	Beijing New Building Materials PLC		Building Products		2,200		7,325
	Beijing North Star Co. Ltd., H		Real Estate Management & Development		22,000		5,109
	Beijing Orient National Communication Science &Technology Co. Ltd.		Software		2,200		4,423
	Beijing Oriental Yuhong Waterproof Technology Co. Ltd.		Construction Materials		1,100		5,281
	Beijing Originwater Technology Co. Ltd.		Commercial Services & Supplies		4,400		5,723
	Beijing Sanju Environmental Protection and New Material Co. Ltd.		Chemicals		3,300		2,109
	Beijing Shiji Information Technology Co. Ltd.		Software		1,100		4,494
a	Beijing Shougang Co. Ltd.		Metals & Mining		6,600		2,738
	Beijing Tiantan Biological Products Corp. Ltd., A		Biotechnology		1,100		5,646
	Beijing Tongrentang Co. Ltd., A		Pharmaceuticals		2,200		7,868
a	Beijing Ultrapower Software Co. Ltd.		IT Services		6,600		3,399
	Beijing Yanjing Brewery Co. Ltd.		Beverages		8,800		7,499
	Beijing Zhong Ke San Huan High-Tech Co. Ltd.		Electronic Equipment, Instruments & Components		3,300		4,376
	Bengang Steel Plates Co. Ltd., B		Metals & Mining		13,200		2,759
a	Bilibili Inc., ADR		Entertainment		1,331		31,172
	Bluedon Information Security Technology Co. Ltd.		Software		4,400		2,744
	Bluefocus Intelligent Communications Group Co. Ltd.		Media		3,300		2,640
	Bluestar Adisseo Co., A		Chemicals		2,200		3,628
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		46,200		24,181
	BOE Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		23,100		8,196
	Bosideng International Holdings Ltd.		Textiles, Apparel & Luxury Goods		66,000		15,498
	Bright Dairy & Food Co. Ltd., A		Food Products		1,100		1,799
	Brilliance China Automotive Holdings Ltd.		Automobiles		74,000		60,912
	BTG Hotels Group Co. Ltd., A		Hotels, Restaurants & Leisure		1,100		2,087
	BYD Co. Ltd.		Automobiles		2,200		18,613
	BYD Co. Ltd., H		Automobiles		17,500		91,441
	BYD Electronic International Co. Ltd.		Communications Equipment		22,000		36,729
	Caitong Securities Co. Ltd., A		Capital Markets		3,300		4,707
a	CAR Inc.		Road & Rail		11,000		6,145
	CECEP Solar Energy Co. Ltd.		Independent Power and Renewable Electricity Producers		8,800		4,010
	CECEP Wind-Power Corp.		Independent Power and Renewable Electricity Producers		15,400		4,649
	Central China Securities Co. Ltd., A		Capital Markets		4,400		3,035
	Central China Securities Co. Ltd., H		Capital Markets		22,000		3,605
a	CGN Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		11,000		4,516
	CGN Power Co. Ltd., H		Independent Power and Renewable Electricity Producers		297,000		68,206
	Changchun High & New Technology Industry Group Inc.		Pharmaceuticals		200		15,462
	Changjiang Securities Co. Ltd.		Capital Markets		6,600		5,950
	Chaozhou Three-Circle Group Co. Ltd.		Electronic Equipment, Instruments & Components		2,200		5,661
	Chengdu Xingrong Environment Co. Ltd.		Water Utilities		4,400		2,837
a	China Aerospace Times Electronics Co. Ltd., A		Aerospace & Defense		5,500		4,943
	China Aoyuan Group Ltd.		Real Estate Management & Development		33,000		38,659
	China Avic Avionics Equipment Co. Ltd., A		Aerospace & Defense		2,200		4,010
	China Baoan Group Co. Ltd.		Industrial Conglomerates		4,400		3,650
a	China Biologic Products Holdings Inc.		Biotechnology		682		73,608



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	China Bluechemical Ltd.		Chemicals		44,000	$	6,812
	China Cinda Asset Management Co. Ltd., H		Capital Markets		220,000		41,724
	China CITIC Bank Corp. Ltd., A		Banks		15,400		11,254
	China CITIC Bank Corp. Ltd., H		Banks		242,000		119,581
	China Coal Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		55,000		15,256
	China Communications Construction Co. Ltd., A		Construction & Engineering		6,600		7,691
	China Communications Construction Co. Ltd., H		Construction & Engineering		110,000		76,636
	China Communications Services Corp. Ltd.		Construction & Engineering		66,000		48,025
	China Conch Venture Holdings Ltd.		Machinery		44,000		196,416
	China Construction Bank Corp., A		Banks		14,300		12,791
	China Construction Bank Corp., H		Banks		2,387,000		1,952,493
a	China COSCO Holdings Co. Ltd., A		Marine		12,100		7,016
	China CSSC Holdings Ltd., A		Machinery		2,200		5,720
a,b,c	China East Education Holdings Ltd., 144A, Reg S		Diversified Consumer Services		11,000		17,825
a	China Eastern Airlines Corp. Ltd., H		Airlines		44,000		15,043
	China Enterprise Co. Ltd., A		Real Estate Management & Development		11,000		6,611
	China Everbright Bank Co. Ltd., A		Banks		52,800		26,891
	China Everbright Bank Co. Ltd., H		Banks		77,000		29,505
	China Everbright International Ltd.		Commercial Services & Supplies		99,000		56,839
	China Everbright Ltd.		Capital Markets		22,000		32,471
	China Evergrande Group		Real Estate Management & Development		55,000		91,254
	China Film Co. Ltd., A		Entertainment		2,200		3,662
	China Foods Ltd.		Food Products		22,000		8,061
	China Fortune Land Development Co. Ltd., A		Real Estate Management & Development		3,300		9,726
	China Galaxy Securities Co. Ltd., A		Capital Markets		2,200		2,949
	China Galaxy Securities Co. Ltd., H		Capital Markets		93,500		45,357
	China Gas Holdings Ltd.		Gas Utilities		55,000		191,591
	China Gezhouba Group Co. Ltd., A		Construction & Engineering		6,600		6,499
	China Grand Automotive Services Group Co. Ltd., A		Specialty Retail		12,100		6,948
	China Great Wall Securities Co. Ltd., A		Capital Markets		2,200		3,756
	China Greatwall Technology Group Co. Ltd.		Technology Hardware, Storage & Peripherals		3,300		5,559
	China High Speed Railway Technology Co. Ltd.		Road & Rail		7,700		3,411
	China Hongqiao Group Ltd.		Metals & Mining		66,000		28,100
	China Huarong Asset Management Co. Ltd., H		Capital Markets		286,000		36,161
	China International Capital Corp. Ltd., H		Capital Markets		26,400		42,712
	China International Marine Containers (Group) Co. Ltd., H		Machinery		11,000		10,275
	China International Travel Service Corp. Ltd., A		Specialty Retail		2,200		20,857
	China Jinmao Holdings Group Ltd.		Real Estate Management & Development		154,000		99,741
	China Jushi Co. Ltd., A		Construction Materials		4,400		4,904
	China Lesso Group Holdings Ltd.		Building Products		22,000		29,008
	China Life Insurance Co. Ltd., A		Insurance		8,800		32,701
	China Life Insurance Co. Ltd., H		Insurance		187,000		366,236
a	China Literature Ltd.		Media		6,600		26,227
	China Lodging Group Ltd., ADR		Hotels, Restaurants & Leisure		2,651		76,163
	China Longyuan Power Group Corp.		Independent Power and Renewable Electricity Producers		88,000		48,366
	China Machinery Engineering Corp., H		Construction & Engineering		22,000		5,961



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	China Medical System Holdings Ltd.		Pharmaceuticals		33,000	$	35,721
	China Meheco Co. Ltd., A		Trading Companies & Distributors		2,200		4,668
	China Merchants Bank Co. Ltd., A		Banks		25,300		115,217
	China Merchants Bank Co. Ltd., H		Banks		99,000		447,045
	China Merchants Energy Shipping Co. Ltd., A		Oil, Gas & Consumable Fuels		9,900		8,925
	China Merchants Port Holdings Co. Ltd.		Transportation Infrastructure		44,000		50,296
	China Merchants Securities Co. Ltd.		Capital Markets		24,200		26,851
	China Merchants Securities Co. Ltd., A		Capital Markets		6,600		15,941
	China Merchants Shekou Industrial Zone Holdings Co. Ltd., A		Real Estate Management & Development		9,900		23,017
	China Minsheng Banking Corp. Ltd., A		Banks		50,600		40,762
	China Minsheng Banking Corp. Ltd., H		Banks		148,500		110,356
	China Mobile Ltd.		Wireless Telecommunication Services		136,440		1,014,820
	China Molybdenum Co. Ltd., A		Metals & Mining		17,600		8,616
	China Molybdenum Co. Ltd., H		Metals & Mining		99,000		27,717
	China National Building Material Co. Ltd., H		Construction Materials		100,000		109,278
	China National Chemical Engineering Co. Ltd., A		Construction & Engineering		6,600		5,559
	China National Nuclear Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		20,900		12,974
	China National Software & Service Co. Ltd., A		Software		400		4,072
	China Nonferrous Metal Industry’s Foreign Engineeringand Construction Co. Ltd.		Metals & Mining		3,300		2,081
	China Northern Rare Earth Group High-Tech Co. Ltd., A		Metals & Mining		5,500		6,976
	China Oilfield Services Ltd., H		Energy Equipment & Services		44,000		34,004
	China Orient Securities Co. Ltd., A		Capital Markets		6,600		8,492
	China Overseas Land & Investment Ltd.		Real Estate Management & Development		98,000		304,081
	China Pacific Insurance Group Co. Ltd., A		Insurance		9,900		39,415
	China Pacific Insurance Group Co. Ltd., H		Insurance		63,800		193,024
	China Petroleum & Chemical Corp., A		Oil, Gas & Consumable Fuels		57,200		35,749
	China Petroleum & Chemical Corp., H		Oil, Gas & Consumable Fuels		638,000		314,436
	China Power International Development Ltd.		Independent Power and Renewable Electricity Producers		110,000		20,436
	China Railway Construction Corp. Ltd., A		Construction & Engineering		13,200		18,306
	China Railway Construction Corp. Ltd., H		Construction & Engineering		49,500		55,434
	China Railway Group Ltd., H		Construction & Engineering		99,000		52,751
	China Railway Hi-tech Industry Co. Ltd., A		Construction & Engineering		2,200		2,955
b	China Railway Signal & Communication Corp. Ltd., H, Reg S		Electronic Equipment, Instruments & Components		44,000		22,196
	China Reinsurance Group Corp., H		Insurance		176,000		20,436
	China Resources Beer Holdings Co. Ltd.		Beverages		41,800		190,909
	China Resources Cement Holdings Ltd.		Construction Materials		66,000		78,765
	China Resources Double Crane Pharmaceutical Co. Ltd., A		Pharmaceuticals		1,100		1,966
	China Resources Gas Group Ltd.		Gas Utilities		22,000		110,697
	China Resources Land Ltd.		Real Estate Management & Development		73,700		304,274
	China Resources Pharmaceutical Group Ltd.		Pharmaceuticals		44,000		26,397
	China Resources Power Holdings Co. Ltd.		Independent Power and Renewable Electricity Producers		53,900		59,387
	China Resources Sanjiu Medical & Pharmaceutical Co. Ltd.		Pharmaceuticals		1,100		4,322
a	China Satellite Communications Co. Ltd., A		Media		2,200		4,435
	China Shenhua Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		7,700		17,642
	China Shenhua Energy Co. Ltd., H		Oil, Gas & Consumable Fuels		88,000		167,578
	China Shipbuilding Industry Co. Ltd., A		Machinery		26,400		15,680
	China Shipping Development Co. Ltd., A		Oil, Gas & Consumable Fuels		4,400		4,656
	China South City Holdings Ltd.		Real Estate Management & Development		66,000		6,386



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	China South Publishing & Media Group Co. Ltd., A		Media		2,200	$	3,299
	China Southern Airlines Co. Ltd., A		Airlines		16,500		11,988
	China Southern Airlines Co. Ltd., H		Airlines		22,000		9,452
	China Spacesat Co. Ltd., A		Aerospace & Defense		2,200		9,069
	China State Construction Engineering Corp. Ltd., A		Construction & Engineering		53,900		40,074
	China State Construction International Holdings Ltd.		Construction & Engineering		44,000		32,585
	China Taiping Insurance Holdings Co. Ltd.		Insurance		37,400		61,281
	China Telecom Corp. Ltd., H		Diversified Telecommunication Services		352,000		106,723
b,c	China Tower Corp. Ltd., H, 144A, Reg S		Diversified Telecommunication Services		1,210,000		271,633
	China Traditional Chinese Medicine Co. Ltd.		Pharmaceuticals		66,000		30,058
	China TransInfo Technology Co. Ltd.		IT Services		1,100		3,166
	China Unicom (Hong Kong) Ltd.		Diversified Telecommunication Services		154,000		88,813
	China United Network Communications Ltd., A		Wireless Telecommunication Services		30,800		22,682
	China Vanke Co. Ltd., A		Real Estate Management & Development		13,200		47,767
	China Vanke Co. Ltd., H		Real Estate Management & Development		38,500		126,911
	China Yangtze Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		18,700		45,614
	China Zhongwang Holdings Ltd.		Metals & Mining		35,200		9,264
	Chinese Universe Publishing and Media Group Co. Ltd., A		Media		2,200		3,737
	Chongqing Changan Automobile Co. Ltd.		Automobiles		4,400		6,568
	Chongqing Changan Automobile Co. Ltd., B		Automobiles		22,000		10,701
	Chongqing Fuling Zhacai Group Co. Ltd., A		Food Products		1,100		4,895
	Chongqing Rural Commercial Bank Co. Ltd., H		Banks		66,000		27,078
	Chongqing Water Group Co. Ltd., A		Water Utilities		3,300		2,426
	Chongqing Zhifei Biological Products Co. Ltd.		Biotechnology		2,200		20,916
	CIFI Holdings Group Co. Ltd.		Real Estate Management & Development		88,000		63,580
	Cinda Real Estate Co. Ltd., A		Real Estate Management & Development		7,700		3,791
a	CITIC Guoan Information Industry Co. Ltd.		Media		6,600		2,905
	Citic Pacific Ltd.		Industrial Conglomerates		132,000		138,116
	Citic Pacific Special Steel Group Co. Ltd., A		Metals & Mining		4,400		15,587
	CITIC Securities Co. Ltd., A		Capital Markets		14,300		44,706
	CITIC Securities Co. Ltd., H		Capital Markets		55,000		100,762
	CMST Development Co. Ltd., A		Air Freight & Logistics		3,300		2,114
a	CNOOC Energy Technology & Services Ltd.		Energy Equipment & Services		14,300		4,600
	CNOOC Ltd.		Oil, Gas & Consumable Fuels		407,000		426,907
	Contemporary Amperex Technology Co. Ltd.		Electrical Equipment		1,100		18,683
	COSCO SHIPPING Development Co. Ltd., H		Marine		99,000		10,346
	COSCO SHIPPING Energy Transportation Co. Ltd., H		Oil, Gas & Consumable Fuels		34,000		18,292
a	COSCO Shipping Holdings Co. Ltd.		Marine		60,500		16,704
	COSCO SHIPPING Ports Ltd.		Transportation Infrastructure		44,000		21,231
	Country Garden Holdings Co. Ltd.		Real Estate Management & Development		187,000		226,304
	Country Garden Services Holdings Co. Ltd.		Commercial Services & Supplies		33,000		134,113
	CRRC Corp. Ltd., A		Machinery		28,600		26,469



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	CRRC Corp. Ltd., H		Machinery		110,000	$	55,916
	CSC Financial Co. Ltd., A		Capital Markets		2,200		9,631
	CSC Financial Co. Ltd., H		Capital Markets		22,000		17,740
	CSG Holding Co. Ltd.		Construction Materials		20,900		5,770
	CSG Holding Co. Ltd.		Construction Materials		8,800		5,450
	CSPC Pharmaceutical Group Ltd.		Pharmaceuticals		114,000		228,268
a	CSSC Offshore and Marine Engineering Group Co. Ltd.		Machinery		6,000		3,584
	Da An Gene Co. Ltd. of Sun Yat-Sen University		Biotechnology		1,100		2,691
	Dali Foods Group Co. Ltd.		Food Products		55,000		38,318
	Daqin Railway Co. Ltd., A		Road & Rail		22,000		21,105
	Datang International Power Generation Co. Ltd., H		Independent Power and Renewable Electricity Producers		66,000		8,856
	Dawning Information Industry Co. Ltd., A		Technology Hardware, Storage & Peripherals		1,100		6,777
	Dazhong Transportation (Group) Co. Ltd., B		Road & Rail		23,100		8,270
	DHC Software Co. Ltd.		IT Services		4,400		8,020
	Dian Diagnostics Group Co. Ltd.		Health Care Providers & Services		1,100		3,642
	Dongfang Electric Corp. Ltd., H		Electrical Equipment		13,200		6,523
	Dongfeng Motor Group Co. Ltd., H		Automobiles		66,000		43,512
	Dongxing Securities Co. Ltd., A		Capital Markets		3,300		5,079
	East Money Information Co. Ltd.		Capital Markets		9,900		22,417
	ENN Energy Holdings Ltd.		Gas Utilities		19,800		191,718
a	Eve Energy Co. Ltd.		Electrical Equipment		1,100		9,018
	Everbright Securities Co. Ltd., A		Capital Markets		5,500		8,543
	Everbright Securities Co. Ltd., H		Capital Markets		4,400		2,810
a	Fangda Carbon New Material Co. Ltd.		Electrical Equipment		5,500		6,976
	Far East Horizon Ltd.		Diversified Financial Services		55,000		44,350
	FAW CAR Co. Ltd.		Automobiles		2,200		2,706
	Fiberhome Telecommunication Technologies Co. Ltd., A		Communications Equipment		2,200		10,255
	Financial Street Holdings Co. Ltd.		Real Estate Management & Development		4,400		4,060
	First Capital Securities Co. Ltd.		Capital Markets		3,300		3,212
	Focus Media Information Technology Co. Ltd.		Media		17,600		10,975
	Foshan Haitian Flavouring & Food Co. Ltd.		Food Products		1,100		19,425
	Fosun International Ltd.		Industrial Conglomerates		55,000		63,580
	Founder Securities Co. Ltd., A		Capital Markets		12,100		12,257
	Foxconn Industrial Internet Co. Ltd., A		Electronic Equipment, Instruments & Components		6,600		12,300
	Fujian Longking Co. Ltd., A		Machinery		2,200		2,809
	Fujian Sunner Development Co. Ltd.		Food Products		1,100		3,670
	Fuyao Group Glass Industries Co. Ltd., H		Auto Components		13,200		28,236
	Ganfeng Lithium Co. Ltd.		Metals & Mining		2,200		12,493
	Ganfeng Lithium Co. Ltd., H		Metals & Mining		4,400		14,107
a	GCL System Integration Technology Co. Ltd.		Semiconductors & Semiconductor Equipment		6,600		2,821
a	GDS Holdings Ltd., ADR		IT Services		1,364		79,071
	Geely Automobile Holdings Ltd.		Automobiles		132,000		194,826
	GEM Co. Ltd.		Metals & Mining		5,500		3,608
	Gemdale Corp., A		Real Estate Management & Development		6,600		13,120
	Genimous Technology Co. Ltd.		Software		3,300		3,380
a	Genscript Biotech Corp.		Life Sciences Tools & Services		22,000		35,650
	GF Securities Co. Ltd.		Capital Markets		6,600		12,738
	GF Securities Co. Ltd., H		Capital Markets		39,600		42,456
	Gigadevice Semiconductor Beijing Inc., A		Semiconductors & Semiconductor Equipment		300		10,243
	Global Top E-Commerce Co. Ltd.		Internet & Direct Marketing Retail		1,100		900
	Glodon Co. Ltd.		Software		1,100		6,622
	GoerTek Inc.		Electronic Equipment, Instruments & Components		4,400		10,186



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
a	GOME Retail Holdings Ltd.		Specialty Retail		286,000	$	26,567
	Gosuncn Technology Group Co. Ltd.		Communications Equipment		4,400		4,016
	Grandjoy Holdings Group Co. Ltd., A		Real Estate Management & Development		6,600		5,009
	Great Wall Motor Co. Ltd., A		Automobiles		4,400		5,518
	Great Wall Motor Co. Ltd., H		Automobiles		82,500		52,900
	Gree Electric Appliances Inc. of Zhuhai, A		Household Durables		6,600		48,605
	Greendland Holdings Corp. Ltd., A		Real Estate Management & Development		7,700		5,877
	Greentown China Holdings Ltd.		Real Estate Management & Development		16,500		15,008
	GRG Banking Equipment Co. Ltd.		Technology Hardware, Storage & Peripherals		3,300		4,018
a	GSX Techedu Inc., ADR		Diversified Consumer Services		1,067		45,198
	Guangdong Baolihua New Energy Stock Co. Ltd.		Independent Power and Renewable Electricity Producers		3,300		2,421
	Guangdong Electric Power Development Co. Ltd., B		Independent Power and Renewable Electricity Producers		15,400		4,133
a	Guangdong Golden Dragon Development Inc.		Capital Markets		2,200		3,942
	Guangdong Haid Group Co. Ltd.		Food Products		2,200		12,477
	Guangdong HEC Technology Holding Co. Ltd., A		Metals & Mining		3,300		3,254
	Guangdong Investment Ltd.		Water Utilities		74,000		142,636
a	Guangdong LY Intelligent Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		9,900		11,481
	Guanghui Energy Co. Ltd., A		Oil, Gas & Consumable Fuels		8,800		3,203
	Guangshen Railway Co. Ltd., H		Road & Rail		44,000		9,367
	Guangxi Guiguan Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		4,400		2,837
	Guangxi Liugong Machinery Co. Ltd.		Machinery		4,400		3,886
	Guangzhou Automobile Group Co. Ltd., A		Automobiles		3,300		4,912
	Guangzhou Automobile Group Co. Ltd., H		Automobiles		88,000		88,444
	Guangzhou Baiyun International Airport Co. Ltd., A		Transportation Infrastructure		2,200		3,895
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		6,600		17,797
	Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., A		Pharmaceuticals		2,200		9,771
	Guangzhou Haige Communications Group Inc. Co.		Communications Equipment		5,500		8,753
	Guangzhou R&F Properties Co. Ltd., H		Real Estate Management & Development		26,400		34,469
	Guangzhou TInc.i Materials Technology Co. Ltd.		Chemicals		1,100		3,029
	Guizhou Bailing Group Pharmaceutical Co. Ltd.		Pharmaceuticals		3,300		3,883
	Guosen Securities Co. Ltd.		Capital Markets		7,700		12,058
a	Guosheng Financial Holding Inc.		Electrical Equipment		2,200		3,020
	Guotai Junan Securities Co. Ltd.		Capital Markets		19,800		29,479
	Guotai Junan Securities Co. Ltd., A		Capital Markets		11,000		25,265
	Guoxuan High-Tech Co. Ltd.		Electrical Equipment		2,200		5,425
	Guoyuan Securities Co. Ltd.		Capital Markets		4,400		5,171
b,c	Haidilao International Holding Ltd., 144A, Reg S		Hotels, Restaurants & Leisure		11,000		42,860
	Haier Electronics Group Co. Ltd.		Household Durables		33,000		87,919
	Haier Smart Home Co. Ltd., A		Household Durables		8,800		17,878
	Haitian International Holdings Ltd.		Machinery		11,000		20,436
	Haitong Securities Co. Ltd., A		Capital Markets		13,200		23,911
	Haitong Securities Co. Ltd., H		Capital Markets		83,600		76,472
	Han’s Laser Technology Industry Group Co. Ltd., A		Machinery		1,100		4,375
	Hang Zhou Great Star Industrial Co. Ltd.		Household Durables		2,200		2,902
	Hangzhou Binjiang Real Estate Group Co. Ltd.		Real Estate Management & Development		4,400		2,582



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Hangzhou Hikvision Digital Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		12,100	$	47,627
a	Hangzhou Lianluo Interactive Information Technology Co. Ltd.		Internet & Direct Marketing Retail		2,200		807
	Hangzhou Robam Appliances Co. Ltd., A		Household Durables		1,100		4,414
a	Hangzhou Shunwang Technology Co. Ltd.		Entertainment		1,100		3,335
	Hangzhou Tigermed Consulting Co. Ltd.		Life Sciences Tools & Services		1,100		9,940
a	Hansoh Pharmaceutical Group Co. Ltd.		Pharmaceuticals		24,000		81,436
	Harbin Boshi Automation Co. Ltd.		Machinery		2,200		2,818
a	Harbin Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		4,400		2,502
	Health & Happiness H&H International Holdings Ltd.		Food Products		4,400		16,264
	Heilan Home Co. Ltd., A—SHSC		Specialty Retail		4,400		3,929
	Heilongjiang Agriculture Co. Ltd., A		Food Products		3,300		8,031
	Henan Pinggao Electric Co. Ltd., A		Electrical Equipment		2,200		2,526
	Henan Shuanghui Investment & Development Co. Ltd.		Food Products		4,400		24,395
	Hengan International Group Co. Ltd.		Personal Products		18,000		135,507
	Hengdian Group DMEGC Magnetics Co. Ltd.		Electronic Equipment, Instruments & Components		3,300		4,651
	Hengli Petrochemical Co. Ltd., A		Chemicals		5,500		9,684
a	HengTen Networks Group Ltd.		Internet & Direct Marketing Retail		484,000		4,558
	Hengtong Optic-electric Co. Ltd., A		Communications Equipment		3,300		7,533
	Hesteel Co. Ltd.		Metals & Mining		17,600		5,289
	Hithink RoyalFlush Information Network Co. Ltd.		Capital Markets		500		7,661
	Holitech Technology Co. Ltd.		Electronic Equipment, Instruments & Components		4,400		3,451
a	Hongta Securities Co. Ltd., A		Capital Markets		2,200		6,220
	Hopson Development Holdings Ltd.		Real Estate Management & Development		22,000		19,642
	Huaan Securities Co. Ltd., A		Capital Markets		5,500		5,990
	Huadian Fuxin Energy Corp. Ltd., H		Independent Power and Renewable Electricity Producers		66,000		10,899
	Huadian Power International Corp. Ltd., H		Independent Power and Renewable Electricity Producers		44,000		13,113
	Huadong Medicine Co. Ltd., A		Health Care Providers & Services		2,200		5,416
	Huagong Tech Co. Ltd.		Electronic Equipment, Instruments & Components		1,100		3,063
	Huaibei Mining Holdings Co. Ltd., A		Metals & Mining		2,200		2,554
	Hualan Biological Engineering Inc.		Biotechnology		2,200		14,873
	Huaneng Power International Inc., A		Independent Power and Renewable Electricity Producers		8,800		5,823
	Huaneng Power International Inc., H		Independent Power and Renewable Electricity Producers		110,000		41,298
	Huapont Life Sciences Co. Ltd.		Chemicals		6,600		4,535
	Huatai Securities Co. Ltd., A		Capital Markets		8,800		21,391
	Huatai Securities Co. Ltd., H		Capital Markets		44,000		65,396
	Huaxi Securities Co. Ltd.		Capital Markets		4,400		6,530
	Huaxia Bank Co. Ltd., A		Banks		20,900		19,077
	Huaxin Cement Co. Ltd., A		Construction Materials		2,200		7,222
	Huaxin Cement Co. Ltd., B		Construction Materials		7,700		11,796
	Huayu Automotive Systems Co. Ltd.		Auto Components		3,300		10,028
	Hubei Biocause Pharmaceutical Co. Ltd.		Insurance		5,500		4,594
	Hubei Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers		15,400		7,691
a	Hunan Valin Steel Co. Ltd.		Metals & Mining		5,500		3,049
	Hundsun Technologies Inc., A		Software		1,100		13,641
	Huolinhe Opencut Coal Industry Corp. Ltd. of Inner Mongolia		Oil, Gas & Consumable Fuels		4,400		4,544
	HyUnion Holding Co. Ltd.		Auto Components		1,100		762
	Iflytek Co. Ltd.		Software		3,300		16,043
	Industrial & Commercial Bank of China Ltd., H		Banks		1,991,000		1,363,998
	Industrial and Commercial Bank of China Ltd.		Banks		105,600		76,725



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Industrial Bank Co. Ltd., A		Banks		26,400	$	59,257
	Industrial Securities Co. Ltd., A		Capital Markets		12,100		10,669
	Inner Mongolia BaoTou Steel Union Co. Ltd., A		Metals & Mining		46,200		7,496
	Inner Mongolia First Machinery Group Co. Ltd., A		Machinery		2,200		2,828
	Inner Mongolia MengDian HuaNeng Thermal Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		8,800		3,203
	Inner Mongolia Yili Industrial Group Co. Ltd., A		Food Products		8,800		37,071
	Inner Mongolia Yitai Coal Co. Ltd., B		Oil, Gas & Consumable Fuels		27,500		17,957
a	Innovent Biologics Inc.		Biotechnology		30,000		126,566
	Inspur Electronic Information Industry Co. Ltd.		Technology Hardware, Storage & Peripherals		1,208		6,609
a	Iqiyi Inc., ADR		Entertainment		5,753		102,403
a	JD.com Inc., ADR		Internet & Direct Marketing Retail		20,548		832,194
	Jiangsu Eastern Shenghong Co. Ltd.		Chemicals		5,500		3,701
	Jiangsu Expressway Co. Ltd., A		Transportation Infrastructure		8,800		12,192
	Jiangsu Expressway Co. Ltd., H		Transportation Infrastructure		22,000		24,552
	Jiangsu Hengli Hydraulic Co. Ltd., A		Machinery		1,100		9,544
	Jiangsu Hengrui Medicine Co. Ltd., A		Pharmaceuticals		5,500		71,410
	Jiangsu Kanion Pharmaceutical Co. Ltd., A		Pharmaceuticals		3,300		6,257
	Jiangsu King’s Luck Brewery JSC Ltd.		Beverages		2,200		8,737
	Jiangsu Linyang Energy Co. Ltd., A		Electrical Equipment		5,500		4,012
	Jiangsu Yanghe Brewery JST Co. Ltd., A		Beverages		2,200		26,031
	Jiangsu Yuyue Medical Equipment & Supply Co. Ltd.		Health Care Equipment & Supplies		1,100		5,630
	Jiangsu Zhongnan Construction Group Co. Ltd.		Real Estate Management & Development		5,500		6,014
	Jiangsu Zhongtian Technology Co. Ltd., A		Electrical Equipment		5,500		7,457
	Jiangxi Bank Co. Ltd., H		Banks		22,000		11,609
	Jiangxi Copper Co. Ltd., A		Metals & Mining		2,200		3,920
	Jiangxi Copper Co. Ltd., H		Metals & Mining		33,000		30,484
	Jiangxi Zhengbang Technology Co. Ltd., A		Food Products		3,300		8,874
	Jiayuan International Group Ltd.		Real Estate Management & Development		22,000		8,941
	Jilin Aodong Pharmaceutical Group Co. Ltd.		Pharmaceuticals		4,400		9,789
	Jinduicheng Molybdenum Co. Ltd., A		Metals & Mining		5,500		4,694
	Jinke Properties Group Co. Ltd.		Real Estate Management & Development		7,700		8,647
a,b,c	Jinxin Fertility Group Ltd., 144A, Reg S		Health Care Providers & Services		22,000		24,410
	Jinyu Bio-Technology Co. Ltd., A		Biotechnology		1,100		3,309
	Jizhong Energy Resources Co. Ltd.		Oil, Gas & Consumable Fuels		6,600		2,812
	JoInc. Pharmaceutical Group Industry Co. Ltd., A		Pharmaceuticals		2,200		3,557
	Jointown Pharmaceutical Group Co. Ltd., A		Health Care Providers & Services		2,200		5,276
a	JOYY Inc., ADR		Interactive Media & Services		1,397		74,404
	Kingboard Holdings Ltd.		Electronic Equipment, Instruments & Components		16,500		38,659
	Kingdee International Software Group Co. Ltd.		Software		55,000		73,372
a	Kingsoft Corp. Ltd.		Software		22,000		71,811
a	Kuang-Chi Technologies Co. Ltd.		Auto Components		3,300		3,408
	Kunlun Energy Co. Ltd.		Gas Utilities		78,000		45,587
	Kweichow Moutai Co. Ltd., A		Beverages		1,600		250,783
	KWG Group Holdings Ltd.		Real Estate Management & Development		33,000		46,918
	Lao Feng Xiang Co. Ltd., B		Textiles, Apparel & Luxury Goods		5,500		15,114
	Lee & Man Paper Manufacturing Ltd.		Paper & Forest Products		33,000		20,011
	Legend Holdings Corp., H		Technology Hardware, Storage & Peripherals		13,200		16,298
d	Legend Holdings Corp., rts., 2/20/49		Technology Hardware, Storage & Peripherals		830		—



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Lens Technology Co. Ltd.		Electronic Equipment, Instruments & Components		2,200	$	4,519
a	Leo Group Co. Ltd.		Media		9,900		5,140
	Lepu Medical Technology Beijing Co. Ltd.		Health Care Equipment & Supplies		2,200		11,242
	Leyard Optoelectronic Co. Ltd.		Electronic Equipment, Instruments & Components		4,400		3,905
	Li Ning Co. Ltd.		Textiles, Apparel & Luxury Goods		44,000		128,579
	LianChuang Electronic Technology Co. Ltd.		Electronic Equipment, Instruments & Components		2,200		4,178
a	Liaoning Cheng Da Co. Ltd., A		Distributors		2,200		5,633
	Livzon Pharmaceutical Group Inc.		Pharmaceuticals		2,200		12,192
	Livzon Pharmaceutical Group Inc., H		Pharmaceuticals		3,300		12,155
	Logan Property Holdings Co. Ltd.		Real Estate Management & Development		22,000		33,947
	Lomon Billions Group Co. Ltd.		Chemicals		2,200		4,634
b,c	Longfor Group Holdings Ltd., 144A, Reg S		Real Estate Management & Development		44,000		214,298
	LONGi Green Energy Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		4,400		15,419
	Luenmei Quantum Co. Ltd., A		Water Utilities		2,200		4,333
	Luxshare Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		7,700		41,454
	Luye Pharma Group Ltd.		Pharmaceuticals		44,000		21,458
	Luzhou Laojiao Co. Ltd., A		Beverages		2,200		22,859
	Maanshan Iron & Steel Co. Ltd., H		Metals & Mining		22,000		6,897
a	Mango Excellent Media Co. Ltd.		Entertainment		2,230		13,714
	Meinian Onehealth Healthcare Holdings Co. Ltd.		Health Care Providers & Services		6,600		10,997
a,b,c	Meitu Inc., 144A, Reg S		Technology Hardware, Storage & Peripherals		49,500		9,452
a,b	Meituan Dianping, B, Reg S		Internet & Direct Marketing Retail		88,000		1,063,257
	Metallurgical Corp. of China Ltd.		Construction & Engineering		77,000		13,511
	Metallurgical Corp. of China Ltd., A		Construction & Engineering		20,900		7,725
	Momo Inc., ADR		Interactive Media & Services		2,662		57,739
a	Montnets Rongxin Technology Group Co. Ltd.		Software		1,100		2,083
	Muyuan Foodstuff Co. Ltd.		Food Products		2,200		37,931
a	NanJi E-Commerce Co. Ltd.		Media		3,300		5,401
	Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd.		Pharmaceuticals		1,100		7,834
	Nanjing Securities Co. Ltd., A		Capital Markets		2,200		4,826
	Nari Technology Development Co. Ltd., A		Electrical Equipment		5,500		15,325
	NAURA Technology Group Co. Ltd., A		Electronic Equipment, Instruments & Components		400		6,563
	NavInfo Co. Ltd.		Household Durables		2,200		4,367
	NetEase Inc., ADR		Entertainment		1,837		589,604
	New China Life Insurance Co. Ltd., A		Insurance		2,200		12,353
	New China Life Insurance Co. Ltd., H		Insurance		22,000		68,547
	New Hope Liuhe Co. Ltd.		Food Products		5,500		24,388
a	New Oriental Education & Technology Group Inc., ADR		Diversified Consumer Services		3,520		381,005
	Newland Digital Technology Co. Ltd.		Software		2,200		4,907
	Nine Dragons Paper Holdings Ltd.		Paper & Forest Products		44,000		40,135
	Ninestar Corp.		Technology Hardware, Storage & Peripherals		1,100		4,164
a	Ningbo Joyson Electronic Corp.		Auto Components		1,100		2,916
	Ningbo Tuopu Group Co. Ltd., A		Auto Components		2,200		5,047
	Ningbo Zhoushan Port Co. Ltd., A		Transportation Infrastructure		7,700		3,856
	Ningxia Baofeng Energy Group Co. Ltd.		Chemicals		5,500		6,533
a,e	NIO Inc., ADR		Automobiles		19,360		53,821
	Northeast Securities Co. Ltd.		Capital Markets		5,500		6,433
	NSFOCUS Information Technology Co. Ltd.		Software		2,200		5,838
	Oceanwide Holdings Co. Ltd.		Real Estate Management & Development		6,600		3,678
	Offshore Oil Engineering Co. Ltd., A		Energy Equipment & Services		6,600		4,553
a	OFILM Group Co. Ltd.		Electronic Equipment, Instruments & Components		4,400		8,467
	Opple Lighting Co. Ltd., A		Household Products		2,200		7,505
	Orient Securities Co. Ltd. of China, H		Capital Markets		22,000		11,552
	Oriental Pearl Group Co. Ltd., A		Media		6,600		8,147
a	Ourpalm Co. Ltd.		Entertainment		5,500		4,019



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
a	Pangang Group Vanadium Titanium & Resources Co. Ltd., A		Metals & Mining		9,900	$	3,101
	People’s Insurance Co. Group of China Ltd., H		Insurance		220,000		72,663
	Perfect World Co. Ltd.		Entertainment		1,100		7,379
	PetroChina Co. Ltd., H		Oil, Gas & Consumable Fuels		528,000		193,464
	PICC Property and Casualty Co. Ltd., H		Insurance		176,000		170,303
a	Pinduoduo Inc., ADR		Internet & Direct Marketing Retail		2,816		101,460
	Ping An Bank Co. Ltd., A		Banks		23,100		41,714
a,b	Ping An Healthcare and Technology Co. Ltd., Reg S		Health Care Technology		8,800		82,086
	Ping An Insurance (Group) Co. of China Ltd., H		Insurance		143,000		1,404,927
	Ping An Insurance Group Co. of China Ltd., A		Insurance		12,100		118,077
a	Pingdingshan Tianan Coal Mining Co. Ltd., A		Oil, Gas & Consumable Fuels		4,400		2,582
a	Polaris Bay Group Co. Ltd., A		Capital Markets		2,200		3,815
	Poly Developments and Holdings Group Co. Ltd., A		Real Estate Management & Development		15,400		32,307
	Poly Property Group Co. Ltd.		Real Estate Management & Development		44,000		14,930
	Postal Savings Bank of China Co. Ltd., H		Banks		242,000		147,369
	Power Construction Corp. of China Ltd.		Construction & Engineering		16,500		9,172
b	Qingdao Port International Co. Ltd., H, Reg S		Transportation Infrastructure		33,000		18,052
	Qingdao Rural Commercial Bank Corp., A		Banks		4,400		2,706
	Qingdao TGOOD Electric Co. Ltd.		Electrical Equipment		1,100		3,029
	Red Star Macalline Group Corp. Ltd.		Real Estate Management & Development		13,200		8,413
	Red Star Macalline Group Corp. Ltd., A		Real Estate Management & Development		2,200		2,890
	RiseSun Real Estate Development Co. Ltd.		Real Estate Management & Development		4,400		4,811
	Rongsheng Petro Chemical Co. Ltd.		Chemicals		4,400		6,797
	SAIC Motor Corp. Ltd.		Automobiles		12,100		34,995
	Sanan Optoelectronics Co. Ltd., A		Semiconductors & Semiconductor Equipment		6,600		17,831
	Sansteel Minguang Co. Ltd.		Metals & Mining		3,300		3,711
	Sany Heavy Industry Co. Ltd., A		Machinery		12,100		29,532
	SDIC Capital Co. Ltd., A		Capital Markets		3,300		5,703
	SDIC Power Holdings Co. Ltd., A		Independent Power and Renewable Electricity Producers		9,900		11,090
	Sealand Securities Co. Ltd.		Capital Markets		8,340		5,154
	Seazen Group Ltd.		Real Estate Management & Development		44,000		39,737
	Seazen Holdings Co. Ltd., A		Real Estate Management & Development		2,200		9,705
	SF Holding Co. Ltd.		Air Freight & Logistics		3,300		21,993
	Shaanxi Coal Industry Co. Ltd.		Oil, Gas & Consumable Fuels		12,100		12,769
	Shaanxi International Trust Co. Ltd.		Capital Markets		6,600		3,278
	Shandong Chenming Paper Holdings Ltd., B		Paper & Forest Products		18,700		6,755
	Shandong Chenming Paper Holdings Ltd., H		Paper & Forest Products		11,000		3,945
a	Shandong Denghai Seeds Co. Ltd., A		Food Products		2,200		3,752
b,c	Shandong Gold Mining Co. Ltd., 144A, Reg S		Metals & Mining		8,250		19,819
	Shandong Gold Mining Co. Ltd., A		Metals & Mining		3,360		16,278
	Shandong Hualu Hengsheng Chemical Co. Ltd., A		Chemicals		2,200		4,873
	Shandong Nanshan Aluminum Co. Ltd., A		Metals & Mining		19,800		5,754
	Shandong Sun Paper Industry JSC Ltd.		Paper & Forest Products		4,400		5,450
	Shandong Weigao Group Medical Polymer Co. Ltd., H		Health Care Equipment & Supplies		63,400		80,161
a	Shandong Xinchao Energy Corp. Ltd., A		Oil, Gas & Consumable Fuels		13,200		3,278



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Shanghai 2345 Network Holding Group Co. Ltd.		Software		13,200	$	5,177
	Shanghai AJ Group Co. Ltd., A		Diversified Financial Services		4,400		4,935
	Shanghai Bailian Group Co. Ltd., B		Food & Staples Retailing		3,300		2,317
	Shanghai Baosight Software Co. Ltd., B		Software		7,720		15,633
	Shanghai Chlor-Alkali Chemical Co. Ltd., B		Chemicals		11,000		5,500
	Shanghai Construction Group Co. Ltd., A		Construction & Engineering		9,900		4,483
	Shanghai Dazhong Public Utilities Group Co. Ltd., A		Gas Utilities		5,500		3,135
	Shanghai Electric Group Co. Ltd., A		Electrical Equipment		17,600		11,422
	Shanghai Electric Group Co. Ltd., H		Electrical Equipment		66,000		17,456
	Shanghai Electric Power Co. Ltd., A		Independent Power and Renewable Electricity Producers		4,400		4,358
	Shanghai Environment Group Co. Ltd., A		Commercial Services & Supplies		2,200		3,641
	Shanghai Fosun Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		2,200		10,199
	Shanghai Fosun Pharmaceutical Group Co. Ltd., H		Pharmaceuticals		16,500		54,284
	Shanghai Haixin Group Co., B		Pharmaceuticals		9,900		3,524
	Shanghai Huayi Group Co. Ltd., B		Chemicals		7,700		3,750
	Shanghai Industrial Holdings Ltd.		Industrial Conglomerates		11,000		16,633
	Shanghai International Airport Co. Ltd., A		Transportation Infrastructure		2,200		18,874
	Shanghai International Port Group Co. Ltd., A		Transportation Infrastructure		12,100		7,648
	Shanghai Jahwa United Co. Ltd., A		Personal Products		1,100		3,891
	Shanghai Jinjiang International Hotels Co. Ltd.		Hotels, Restaurants & Leisure		4,400		6,244
	Shanghai Jinqiao Export Processing Zone Development, B		Real Estate Management & Development		7,700		6,299
	Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., A		Real Estate Management & Development		2,200		3,442
	Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., B		Real Estate Management & Development		28,600		23,052
	Shanghai M&G Stationery Inc., A		Commercial Services & Supplies		1,100		7,185
	Shanghai Mechanical and Electrical Industry Co. Ltd., B		Machinery		7,700		8,470
	Shanghai Pharmaceuticals Holding Co. Ltd., A		Health Care Providers & Services		2,200		6,055
	Shanghai Pharmaceuticals Holding Co. Ltd., H		Health Care Providers & Services		22,000		37,410
	Shanghai Pudong Development Bank Co. Ltd., A		Banks		37,400		53,555
a	Shanghai RAAS Blood Products Co. Ltd., A		Biotechnology		7,700		8,451
	Shanghai Shibei Hi-Tech Co. Ltd., A		Real Estate Management & Development		2,200		2,160
	Shanghai Shibei Hi-Tech Co. Ltd., B		Real Estate Management & Development		12,100		4,041
	Shanghai Shimao Co. Ltd., A		Real Estate Management & Development		5,500		3,166
	Shanghai Tunnel Engineering Co. Ltd., A		Construction & Engineering		6,600		5,149
	Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd.		Trading Companies & Distributors		6,600		6,197
	Shanghai Yuyuan Tourist Mart Group Co. Ltd., A		Specialty Retail		5,500		5,672
	Shanghai Zhangjiang High-Tech Park Development Co. Ltd., A		Real Estate Management & Development		1,100		1,882
	Shanghai Zhenhua Port Machinery Co. Ltd., B		Machinery		24,200		6,994
	Shanxi Lu’an Environmental Energy Development Co. Ltd., A		Oil, Gas & Consumable Fuels		4,400		3,619
	Shanxi Securities Co. Ltd.		Capital Markets		4,400		4,358
	Shanxi Xinghuacun Fen Wine Factory Co. Ltd., A		Beverages		1,100		13,995



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STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
a	Shanying International Holding Co. Ltd., A		Paper & Forest Products		5,500	$	2,374
	Shenergy Co. Ltd., A		Independent Power and Renewable Electricity Producers		9,900		7,374
	Shengyi Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		3,300		12,323
	Shenwan Hongyuan Group Co. Ltd.		Capital Markets		39,600		24,638
a,b,c	Shenwan Hongyuan Group Co. Ltd., 144A, Reg S		Capital Markets		35,200		8,265
	Shenzhen Accord Pharmaceutical Co. Ltd., B		Health Care Providers & Services		1,100		2,827
	Shenzhen Agricultural Products Group Co. Ltd.		Food & Staples Retailing		4,400		4,494
	Shenzhen Airport Co. Ltd.		Transportation Infrastructure		2,200		2,371
	Shenzhen Energy Group Co. Ltd.		Independent Power and Renewable Electricity Producers		5,500		4,175
	Shenzhen Everwin Precision Technology Co. Ltd.		Electronic Equipment, Instruments & Components		1,100		2,927
	Shenzhen Expressway Co. Ltd., H		Transportation Infrastructure		22,000		22,423
a	Shenzhen Fenda Technology Co. Ltd.		Household Durables		4,400		2,080
	Shenzhen Goodix Technology Co. Ltd., A		Semiconductors & Semiconductor Equipment		100		3,679
	Shenzhen Huaqiang Industry Co. Ltd.		Real Estate Management & Development		2,200		3,703
	Shenzhen Inovance Technology Co. Ltd.		Machinery		2,200		8,023
	Shenzhen International Holdings Ltd.		Transportation Infrastructure		22,000		40,305
	Shenzhen Investment Ltd.		Real Estate Management & Development		88,000		27,476
	Shenzhen Jinjia Group Co. Ltd.		Containers & Packaging		2,200		2,859
	Shenzhen Kaifa Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		2,200		5,338
	Shenzhen Kangtai Biological Products Co. Ltd.		Biotechnology		1,100		17,784
	Shenzhen Mindray Bio-Medical Electronics Co. Ltd., A		Health Care Equipment & Supplies		1,100		40,613
a	Shenzhen MTC Co. Ltd.		Household Durables		6,600		3,827
	Shenzhen Neptunus Bioengineering Co. Ltd.		Health Care Providers & Services		3,300		2,128
	Shenzhen Overseas Chinese Town Co. Ltd.		Hotels, Restaurants & Leisure		9,900		8,925
	Shenzhen Salubris Pharmaceuticals Co. Ltd.		Pharmaceuticals		3,300		8,259
a	Shenzhen Sunway Communication Co. Ltd.		Communications Equipment		1,100		5,326
	Shenzhen Yan Tian Port Holding Co. Ltd.		Transportation Infrastructure		3,300		2,062
	Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd.		Metals & Mining		6,600		3,315
	Shenzhou International Group Holdings Ltd.		Textiles, Apparel & Luxury Goods		18,700		198,800
a	Shijiazhuang Changshan BeiMing Technology Co. Ltd.		Textiles, Apparel & Luxury Goods		2,200		2,694
	Shijiazhuang Yiling Pharmaceutical Co. Ltd.		Pharmaceuticals		2,200		6,968
	Shimao Property Holdings Ltd.		Real Estate Management & Development		33,000		116,232
a	Siasun Robot & Automation Co. Ltd.		Machinery		3,300		6,360
	Sichuan Chuantou Energy Co. Ltd., A		Independent Power and Renewable Electricity Producers		7,700		9,994
	Sichuan Expressway Co. Ltd., A		Transportation Infrastructure		9,900		4,763
	Sichuan Expressway Co. Ltd., H		Transportation Infrastructure		22,000		5,137
a	Sichuan Hebang Biotechnology Co. Ltd., A		Chemicals		17,600		3,600
	Sichuan Kelun Pharmaceutical Co. Ltd.		Pharmaceuticals		1,100		3,211
	Sichuan Road & Bridge Co. Ltd., A		Construction & Engineering		4,400		2,390
	Sieyuan Electric Co. Ltd.		Electrical Equipment		1,100		2,795
	Sihuan Pharmaceutical Holdings Group Ltd.		Pharmaceuticals		110,000		11,070
a	SINA Corp.		Interactive Media & Services		1,595		50,785
	Sino-Ocean Land Holdings Ltd.		Real Estate Management & Development		77,000		19,571



196	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Sinochem International Corp., A		Trading Companies & Distributors		6,600	$	4,767
	Sinolink Securities Co. Ltd., A		Capital Markets		4,400		5,680
	Sinoma Science & Technology Co. Ltd.		Chemicals		2,200		3,526
	Sinopec Engineering Group Co. Ltd.		Construction & Engineering		38,500		16,193
a	Sinopec Oilfield Service Corp.		Energy Equipment & Services		110,000		8,373
	Sinopec Shanghai Petrochemical Co. Ltd., A		Chemicals		9,900		5,433
	Sinopec Shanghai Petrochemical Co. Ltd., H		Chemicals		88,000		21,799
	Sinopharm Group Co. Ltd., H		Health Care Providers & Services		30,800		69,302
	Sinotrans Ltd., H		Air Freight & Logistics		55,000		13,553
	Sinotruk Hong Kong Ltd.		Machinery		16,500		27,461
	Soho China Ltd.		Real Estate Management & Development		49,500		25,545
	Songcheng Performance Development Co. Ltd.		Hotels, Restaurants & Leisure		2,200		7,753
	SooChow Securities Co. Ltd., A		Capital Markets		5,480		6,123
a	Sou Yu Te Group Co. Ltd.		Textiles, Apparel & Luxury Goods		3,300		1,550
	Southwest Securities Co. Ltd., A		Capital Markets		12,100		7,716
	STO Express Co. Ltd.		Air Freight & Logistics		1,100		2,711
	Sunac China Holdings Ltd.		Real Estate Management & Development		66,000		305,694
	Sungrow Power Supply Co. Ltd.		Electrical Equipment		2,200		2,952
	Suning Universal Co. Ltd.		Real Estate Management & Development		7,700		3,302
	Suning.com Co. Ltd.		Specialty Retail		12,100		15,415
	Sunny Optical Technology Group Co. Ltd.		Electronic Equipment, Instruments & Components		16,500		222,245
	Sunwoda Electronic Co. Ltd., A		Electrical Equipment		2,200		4,386
	Suofeiya Home Collection Co. Ltd.		Household Durables		1,100		2,790
	Suzhou Anjie Technology Co. Ltd., A		Electrical Equipment		1,100		2,734
	Suzhou Gold Mantis Construction Decoration Co. Ltd.		Construction & Engineering		4,400		5,096
	Tahoe Group Co. Ltd.		Real Estate Management & Development		3,300		2,407
a	TAL Education Group, ADR		Diversified Consumer Services		8,767		466,930
	Tangshan Jidong Cement Co. Ltd.		Construction Materials		2,200		6,086
	TangShan Port Group Co. Ltd., A		Transportation Infrastructure		14,300		4,559
	Tangshan Sanyou Chemical Industries Co. Ltd., A		Chemicals		4,400		3,116
	Tasly Pharmaceutical Group Co. Ltd., A		Pharmaceuticals		4,400		8,579
	TBEA Co. Ltd., A		Electrical Equipment		6,600		6,797
	TCL Corp.		Household Durables		18,700		10,922
	Tencent Holdings Ltd.		Interactive Media & Services		146,900		7,205,793
a	Tencent Music Entertainment Group, ADR		Entertainment		2,871		28,882
a	The China Pacific Securities Co. Ltd., A		Capital Markets		9,900		4,637
	Tian Di Science & Technology Co. Ltd., A		Machinery		8,800		3,724
	Tianfeng Securities Co. Ltd., A		Capital Markets		6,850		4,948
	Tianjin Capital Environmental Protection Group Co. Ltd., A		Commercial Services & Supplies		5,500		5,548
	Tianjin Chase Sun Pharmaceutical Co. Ltd.		Pharmaceuticals		7,700		5,345
	Tianjin Zhonghuan Semiconductor Co. Ltd.		Semiconductors & Semiconductor Equipment		4,400		8,871
	Tianma Microelectronics Co. Ltd.		Electronic Equipment, Instruments & Components		2,200		4,137
	Tianqi Lithium Corp.		Chemicals		2,680		6,976
	Times China Holdings Ltd.		Real Estate Management & Development		22,000		36,842
a	Times Neighborhood Holdings Ltd.		Commercial Services & Supplies		6,153		4,922
a,b	Tongcheng-Elong Holdings Ltd., Reg S		Internet & Direct Marketing Retail		22,000		30,938
	Tonghua Dongbao Pharmaceutical Co. Ltd.		Pharmaceuticals		2,200		3,293
	Tongkun Group Co. Ltd., A		Chemicals		2,200		3,641
	Tongling Nonferrous Metals Group Co. Ltd.		Metals & Mining		22,000		6,176
	Tongwei Co. Ltd., A		Food Products		4,400		7,207
	TravelSky Technology Ltd., H		IT Services		22,000		38,829
a	Trip.com Group Ltd., ADR		Internet & Direct Marketing Retail		11,594		271,879
	Tsingtao Brewery Co. Ltd., A		Beverages		1,100		7,094
	Tsingtao Brewery Co. Ltd., H		Beverages		9,900		50,516
	Tunghsu Optoelectronic Technology Co. Ltd.		Electronic Equipment, Instruments & Components		7,700		3,259
	Tus-Sound Environmental Resources Co. Ltd.		Commercial Services & Supplies		2,200		2,508



franklintempleton.com	Annual Report	197

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Unigroup Guoxin Microelectronics Co. Ltd.		Semiconductors & Semiconductor Equipment		1,100	$	7,744
	Unisplendour Corp. Ltd.		Electronic Equipment, Instruments & Components		1,100		5,481
	Universal Scientific Industrial Shanghai Co. Ltd., A		Electronic Equipment, Instruments & Components		2,200		4,929
	Valiant Co. Ltd.		Chemicals		2,200		3,932
	Venustech Group Inc.		Software		1,100		5,742
a	Vipshop Holdings Ltd., ADR		Internet & Direct Marketing Retail		11,231		174,979
	Visual China Group Co. Ltd.		Internet & Direct Marketing Retail		1,100		2,409
	Walvax Biotechnology Co. Ltd.		Biotechnology		2,200		9,826
a	Wanda Film Holding Co. Ltd., A		Entertainment		3,300		7,333
	Wangsu Science & Technology Co. Ltd.		IT Services		3,300		3,631
	Wanhua Chemical Group Co. Ltd., A		Chemicals		3,300		19,204
	Wanxiang Qianchao Co. Ltd.		Auto Components		6,600		4,749
a	Weibo Corp., ADR		Interactive Media & Services		1,342		44,434
	Weichai Power Co. Ltd., A		Machinery		11,000		18,560
	Weichai Power Co. Ltd., H		Machinery		44,000		70,846
	Weifu High-Technology Co. Ltd., B		Auto Components		4,400		6,806
	Wens Foodstuffs Group Co. Ltd.		Food Products		2,200		10,025
	Western Securities Co. Ltd.		Capital Markets		4,400		5,134
	Westone Information Industry Inc.		Electronic Equipment, Instruments & Components		2,200		6,977
	Will Semiconductor Ltd.		Semiconductors & Semiconductor Equipment		500		10,997
a	Wingtech Technology Co. Ltd., A		Electronic Equipment, Instruments & Components		1,100		15,752
	Winning Health Technology Group Co. Ltd.		Health Care Technology		2,200		6,509
	Wolong Electric Group Co. Ltd., A		Electrical Equipment		2,200		3,203
	Wonders Information Co. Ltd.		IT Services		2,200		6,186
	Wuchan Zhongda Group Co. Ltd., A		Distributors		6,600		4,469
	Wuhan Guide Infrared Co. Ltd.		Electronic Equipment, Instruments & Components		1,100		5,238
	Wuhu Sanqi Interactive Entertainment NetworkTechnology Group Co. Ltd.		Entertainment		2,200		10,137
	Wuliangye Yibin Co. Ltd.		Beverages		4,400		71,510
	WUS Printed Circuit Kunshan Co. Ltd.		Electronic Equipment, Instruments & Components		2,200		7,350
	WuXi AppTec Co. Ltd., A		Life Sciences Tools & Services		1,100		14,043
	WuXi AppTec Co. Ltd., H		Life Sciences Tools & Services		3,300		40,617
a	Wuxi Biologics Cayman Inc.		Life Sciences Tools & Services		19,000		246,358
	Wuxi Lead Intelligent Equipment Co. Ltd.		Electronic Equipment, Instruments & Components		1,100		5,813
	XCMG Construction Machinery Co. Ltd.		Machinery		9,900		7,053
	Xiamen C & D Inc., A		Trading Companies & Distributors		4,400		4,749
	Xiamen Meiya Pico Information Co. Ltd.		Electronic Equipment, Instruments & Components		2,200		6,310
	Xiamen Tungsten Co. Ltd., A		Metals & Mining		2,200		3,517
a	Xiaomi Corp., B		Technology Hardware, Storage & Peripherals		277,200		373,372
	Xinhu Zhongbao Co. Ltd., A		Real Estate Management & Development		9,900		4,218
	Xinhua Winshare Publishing and Media Co. Ltd., H		Distributors		11,000		7,082
	Xinjiang Goldwind Science & Technology Co. Ltd., H		Electrical Equipment		22,000		19,159
	Xinjiang Zhongtai Chemical Co. Ltd.		Chemicals		3,300		2,281
	Xinxing Ductile Iron Pipes Co. Ltd.		Metals & Mining		7,700		3,737
	Xuji Electric Co. Ltd.		Electrical Equipment		2,200		4,063
	Yango Group Co. Ltd.		Real Estate Management & Development		5,500		5,424
b	Yangtze Optical Fibre and Cable Joint Stock Ltd. Co., H, Reg S		Communications Equipment		5,500		9,977
	Yantai Changyu Pioneer Wine Co. Ltd., B		Beverages		4,400		6,965
	Yanzhou Coal Mining Co. Ltd., H		Oil, Gas & Consumable Fuels		44,000		34,515
	Yealink Network Technology Corp. Ltd.		Communications Equipment		400		4,603
	Yifan Pharmaceutical Co. Ltd.		Pharmaceuticals		2,200		5,059
	Yihai International Holding Ltd.		Food Products		11,000		83,306
	Yintai Gold Co. Ltd.		Metals & Mining		2,200		4,479
	Yonghui Superstores Co. Ltd., A		Food & Staples Retailing		14,300		20,659
	Yonyou Network Technology Co. Ltd., A		Software		3,300		18,837
	Yotrio Group Co. Ltd.		Leisure Equipment & Products		4,400		2,166



198	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	China (continued)
	Youngor Group Co. Ltd., A		Real Estate Management & Development		8,800	$	7,908
a	Youzu Interactive Co. Ltd.		Entertainment		1,100		2,916
	YTO Express Group Co. Ltd., A		Air Freight & Logistics		2,200		3,591
	Yuan Longping High-tech Agriculture Co. Ltd.		Food Products		1,100		2,812
	Yuexiu Property Co. Ltd.		Real Estate Management & Development		154,000		27,816
	Yunda Holding Co. Ltd.		Air Freight & Logistics		1,100		4,781
a	Yunnan Aluminium Co. Ltd.		Metals & Mining		4,400		2,402
	Yunnan Baiyao Group Co. Ltd.		Pharmaceuticals		1,100		13,276
a	Yunnan Copper Co. Ltd.		Metals & Mining		3,300		4,535
	Yunnan Energy New Material Co. Ltd.		Containers & Packaging		1,100		6,595
a	Yunnan Tin Co. Ltd.		Metals & Mining		2,200		2,564
	Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., A		Pharmaceuticals		1,100		19,290
	Zhaojin Mining Industry Co. Ltd., H		Metals & Mining		27,500		27,603
	Zhejiang Chint Electrics Co. Ltd., A		Electrical Equipment		2,200		7,340
	Zhejiang Conba Pharmaceutical Co. Ltd., A		Pharmaceuticals		6,600		4,795
	Zhejiang Crystal-Optech Co. Ltd.		Electronic Equipment, Instruments & Components		2,200		4,128
	Zhejiang Dahua Technology Co. Ltd.		Electronic Equipment, Instruments & Components		3,300		7,528
	Zhejiang Expressway Co. Ltd., H		Transportation Infrastructure		44,000		30,654
	Zhejiang Hailiang Co. Ltd.		Metals & Mining		2,200		2,806
	Zhejiang Huace Film & TV Co. Ltd., A		Entertainment		2,200		2,064
a	Zhejiang Huahai Pharmaceutical Co. Ltd., A		Pharmaceuticals		2,200		7,977
	Zhejiang Huayou Cobalt Co. Ltd., A		Metals & Mining		1,100		4,564
	Zhejiang Juhua Co. Ltd., A		Chemicals		4,400		4,209
	Zhejiang Longsheng Group Co. Ltd., A		Chemicals		4,400		7,393
	Zhejiang Medicine Co. Ltd., A		Pharmaceuticals		1,100		2,910
	Zhejiang NHU Co. Ltd.		Pharmaceuticals		2,200		8,473
	Zhejiang Runtu Co. Ltd.		Chemicals		2,200		2,980
	Zhejiang Sanhua Intelligent Controls Co. Ltd.		Machinery		3,300		7,482
	Zhejiang Satellite Petrochemical Co. Ltd.		Chemicals		2,200		4,047
	Zhejiang Semir Garment Co. Ltd.		Textiles, Apparel & Luxury Goods		1,100		1,105
	Zhejiang Supor Co. Ltd.		Household Durables		400		3,901
	Zhejiang Wanfeng Auto Wheel Co. Ltd.		Auto Components		4,400		4,097
	Zhejiang Weixing New Building Materials Co. Ltd.		Building Products		2,200		3,433
	Zhejiang Yasha Decoration Co. Ltd.		Diversified Consumer Services		3,300		3,226
	Zhejiang Yongtai Technology Co. Ltd.		Chemicals		2,200		3,597
	Zhengzhou Yutong Bus Co. Ltd., A		Machinery		2,200		4,249
	Zheshang Securities Co. Ltd., A		Capital Markets		3,300		4,660
a,b	ZhongAn Online P&C Insurance Co. Ltd., Reg S		Insurance		8,800		29,065
	Zhongjin Gold Corp. Ltd., A		Metals & Mining		4,400		5,009
	Zhongsheng Group Holdings Ltd.		Specialty Retail		16,500		57,690
	Zhuzhou CRRC Times Electric Co. Ltd., H		Electrical Equipment		13,200		39,084
	Zijin Mining Group Co. Ltd., A		Metals & Mining		22,000		11,453
	Zijin Mining Group Co. Ltd., H		Metals & Mining		154,000		58,016
	Zoomlion Heavy Industry Science and Technology Co. Ltd., H		Machinery		39,600		28,815
a	ZTE Corp.		Communications Equipment		4,400		26,568
a	ZTE Corp., H		Communications Equipment		19,800		61,437
a	ZTO Express Cayman Inc., ADR		Air Freight & Logistics		10,021		265,356


							48,469,807

	Hong Kong 0.6%
a	Alibaba Pictures Group Ltd.		Entertainment		330,000		42,575
	Kingboard Laminates Holdings Ltd.		Chemicals		27,500		25,439
	Sino Biopharmaceutical Ltd.		Pharmaceuticals		165,000		217,562


							285,576



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE China ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Singapore 0.1%
	Yangzijiang Shipbuilding Holdings Ltd.		Machinery		56,100	$	32,702
	Yanlord Land Group Ltd.		Real Estate Management & Development		17,600		12,176


							44,878

	Total Investments before Short Term Investments (Cost $51,152,443) 100.0%						48,800,261

	Short Term Investments 0.0%^†
	Investments from Cash Collateral Received for Loaned Securities 0.0%^†
	United States 0.0%^†
^f,g	Institutional Fiduciary Trust Portfolio, 0.32%		Money Market Funds		29,400		29,400

	Total Investments (Cost $51,181,843) 100.0%						48,829,661
	Other Assets, less Liabilities 0.0%^†						(22,542	)

	Net Assets 100.0%					$	48,807,119

See abbreviations on page 351.

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the aggregate value of these securities was $1,864,133, representing 3.8% of net assets.

^dFair valued using significant unobservable inputs. See Note 6 regarding fair value measurements.

^eA portion or all of the security is on loan at March 31, 2020 Note 1(d).

^fSee Note 3(c) regarding investments in affiliated management investment companies.

^gThe rate shown is the annualized seven-day effective yield at period end.



200	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Europe ETF



	Year Ended March 31,

	2020			2019			2018^a
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.24		$	24.98		$	25.05


Income from investment operations^b:

Net investment income^c		0.76			0.86			0.24

Net realized and unrealized gains (losses)		(4.21	)		(1.79	)		(0.30	)


Total from investment operations		(3.45	)		(0.93	)		(0.06	)


Less distributions from net investment income		(0.76	)		(0.81	)		(0.01	)


Net asset value, end of year	$	19.03		$	23.24		$	24.98


Total return^d		(15.44)%			(3.69)%			(0.26)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%

Expenses net waiver and payments by affiliates		0.09%			—%			—%

Net investment income		3.23%			3.61%			2.35%

Supplemental data

Net assets, end of year (000’s)		$91,356			$74,359			$104,911

Portfolio turnover rate^f		4.47%	^g		5.81%			0.96%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 4.47%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	201

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Europe ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 98.6%
	Australia 0.7%
	Rio Tinto PLC		Metals & Mining		13,656	$	629,645

	Austria 0.3%
	Andritz AG		Machinery		888		27,847
	Erste Group Bank AG		Banks		3,600		66,697
	OMV AG		Oil, Gas & Consumable Fuels		1,776		49,030
	Raiffeisen Bank International AG		Banks		1,632		23,951
	Telekom Austria AG		Diversified Telecommunication Services		1,728		12,040
	Verbund AG		Electric Utilities		816		29,565
	Vienna Insurance Group AG Wiener Versicherung Gruppe		Insurance		504		9,478
	Voestalpine AG		Metals & Mining		1,416		28,798


							247,406

	Belgium 1.5%
	Ackermans & van Haaren NV		Diversified Financial Services		288		37,510
	Ageas		Insurance		2,256		93,842
	Anheuser-Busch InBev SA/NV		Beverages		9,600		426,295
	Colruyt SA		Food & Staples Retailing		672		36,329
	Elia Group SA/NV		Electric Utilities		456		44,581
a	Galapagos NV		Biotechnology		624		123,928
	Groupe Bruxelles Lambert SA		Diversified Financial Services		960		75,442
	KBC Groep NV		Banks		3,408		157,131
	Proximus SADP		Diversified Telecommunication Services		1,752		40,120
	Sofina SA		Diversified Financial Services		192		39,143
	Solvay SA		Chemicals		864		62,930
	Telenet Group Holding NV		Media		528		15,897
	UCB SA		Pharmaceuticals		1,512		131,065
	Umicore SA		Chemicals		2,544		88,906


							1,373,119

	China 0.4%
a	Prosus NV		Internet & Direct Marketing Retail		5,352		370,847

	Denmark 3.4%
	A.P. Moeller-Maersk AS, A		Marine		48		39,772
	A.P. Moeller-Maersk AS, B		Marine		72		64,496
	Ambu AS, B		Health Care Equipment & Supplies		2,088		50,720
	Carlsberg AS, B		Beverages		1,296		146,698
	Chr. Hansen Holding AS		Chemicals		1,272		95,164
	Coloplast AS, B		Health Care Equipment & Supplies		1,656		240,238
	Danske Bank AS		Banks		8,448		95,526
	DSV Panalpina A/S		Air Freight & Logistics		2,568		233,434
a	Genmab AS		Biotechnology		720		145,783
	GN Store Nord AS		Health Care Equipment & Supplies		1,680		75,048
	H. Lundbeck AS		Pharmaceuticals		744		22,077
	ISS AS		Commercial Services & Supplies		2,400		32,989
	Novo Nordisk AS, B		Pharmaceuticals		20,568		1,237,413
	Novozymes AS		Chemicals		2,568		116,792
	Orsted AS		Electric Utilities		2,352		230,469
	Pandora AS		Textiles, Apparel & Luxury Goods		1,104		35,859
	Rockwool International AS, B		Building Products		72		13,022
	Tryg AS		Insurance		1,512		37,195
	Vestas Wind Systems AS		Electrical Equipment		2,424		196,962
a	William Demant Holding AS		Health Care Equipment & Supplies		1,344		29,762


							3,139,419

	Finland 2.0%
	Elisa OYJ		Diversified Telecommunication Services		1,752		108,576
b	Fortum OYJ, Reg S		Electric Utilities		5,424		79,601



202	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Finland (continued)
	Huhtamaki OYJ		Containers & Packaging			1,176	$	37,653
	Kesko OYJ		Food & Staples Retailing			840		47,559
	Kone OYJ, B		Machinery			4,872		275,950
	Metso OYJ		Machinery			1,320		31,459
	Neste Oil OYJ		Oil, Gas & Consumable Fuels			5,184		175,479
	Nokia OYJ, A		Communications Equipment			69,864		219,933
	Nokian Renkaat OYJ		Auto Components			1,680		40,683
	Nordea Bank Abp		Banks			40,034		225,479
	Orion OYJ		Pharmaceuticals			1,272		52,032
	Sampo OYJ, A		Insurance			6,096		178,057
	Stora Enso OYJ, R		Paper & Forest Products			7,176		72,802
	UPM-Kymmene OYJ		Paper & Forest Products			6,648		183,020
	Wartsila OYJ ABP		Machinery			6,120		44,924


								1,773,207

	France 16.1%
	Accor SA		Hotels, Restaurants & Leisure			2,424		66,493
a	Adevinta ASA, B		Interactive Media & Services			2,880		25,534
	Aeroports de Paris SA		Transportation Infrastructure			360		34,544
a	Air France-KLM		Airlines			2,400		13,425
	Air Liquide SA		Chemicals			5,760		737,247
	Airbus SE		Aerospace & Defense			6,864		446,921
c	ALD SA, 144A		Road & Rail			1,080		9,480
	Alstom SA		Machinery			2,328		97,425
	Amundi SA		Capital Markets			696		41,125
	ArcelorMittal SA		Metals & Mining			7,632		72,529
	Arkema SA		Chemicals			888		61,385
	Atos SE		IT Services			1,176		79,667
	AXA SA		Insurance			23,976		415,346
	Biomerieux		Health Care Equipment & Supplies			504		56,739
	BNP Paribas SA		Banks			13,488		407,140
	Bollore		Entertainment			12,672		34,900
	Bouygues SA		Construction & Engineering			2,688		78,808
	Bureau Veritas SA		Professional Services			3,408		64,730
	Capgemini SE		IT Services			2,016		170,328
	Carrefour SA		Food & Staples Retailing			7,224		114,261
	Casino Guichard-Perrachon SA		Food & Staples Retailing			696		26,813
	Cie Generale des Etablissements Michelin SCA		Auto Components			2,208		196,386
	CNP Assurances		Insurance			2,016		19,732
	Compagnie de Saint-Gobain		Building Products			6,048		147,091
	Covivio		Equity Real Estate Investment Trusts (REITs	)		552		31,102
	Credit Agricole SA		Banks			14,184		104,119
	Danone SA		Food Products			7,392		475,622
	Dassault Aviation SA		Aerospace & Defense			24		19,724
	Dassault Systemes		Software			1,632		241,746
	Edenred		IT Services			3,048		127,389
	EDF SA		Electric Utilities			6,443		50,802
	Eiffage SA		Construction & Engineering			936		66,243
	Elis SA		Commercial Services & Supplies			2,640		25,028
	Engie SA		Multi-Utilities			20,616		212,908
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods			3,648		393,392
	Eurazeo SE		Diversified Financial Services			558		25,176
	Eutelsat Communications SA		Media			2,328		24,333
	Faurecia SE		Auto Components			936		28,038
	Gecina SA		Equity Real Estate Investment Trusts (REITs	)		648		85,820
	Getlink SE		Transportation Infrastructure			5,688		68,590
	Hermes International		Textiles, Apparel & Luxury Goods			384		264,941



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STATEMENT OF INVESTMENTS

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		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	France (continued)
	ICADE		Equity Real Estate Investment Trusts (REITs	)		384	$	30,400
	Iliad SA		Diversified Telecommunication Services			192		26,050
	Imerys SA		Construction Materials			480		12,072
	Ingenico Group SA		Electronic Equipment, Instruments & Components			756		80,414
	Ipsen SA		Pharmaceuticals			432		22,364
	JCDecaux SA		Media			912		16,511
	Kering SA		Textiles, Apparel & Luxury Goods			912		476,229
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		2,400		46,269
	L’Oreal SA		Personal Products			3,000		786,399
	Legrand SA		Electrical Equipment			3,288		210,982
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods			3,096		1,149,744
	Natixis SA		Capital Markets			10,488		34,144
	Orange SA		Diversified Telecommunication Services			23,856		291,470
	Orpea		Health Care Providers & Services			624		65,216
	Pernod Ricard SA		Beverages			2,616		371,574
	Peugeot SA		Automobiles			6,672		89,058
	Plastic Omnium SA		Auto Components			672		9,449
	Publicis Groupe		Media			2,736		78,414
	Remy Cointreau SA		Beverages			312		34,114
	Renault SA		Automobiles			2,304		44,767
	Rexel SA		Trading Companies & Distributors			3,792		28,210
	Rubis SCA		Gas Utilities			1,157		48,318
	Safran SA		Aerospace & Defense			3,984		350,328
	Sanofi		Pharmaceuticals			13,464		1,183,939
	Sartorius Stedim Biotech		Life Sciences Tools & Services			288		57,829
	Schneider Electric SE		Electrical Equipment			6,504		560,787
	SCOR SE		Insurance			1,920		42,303
	SEB SA		Household Durables			336		41,845
	Societe Generale SA		Banks			9,576		161,266
	Sodexo SA		Hotels, Restaurants & Leisure			1,080		73,045
	Suez		Multi-Utilities			4,560		46,412
	Teleperformance		Professional Services			720		149,946
	Thales SA		Aerospace & Defense			1,296		108,615
	Total SA		Oil, Gas & Consumable Fuels			29,688		1,152,835
a	Ubisoft Entertainment SA		Entertainment			1,128		83,149
	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		1,680		95,045
	Valeo SA		Auto Components			3,000		50,199
	Veolia Environnement SA		Multi-Utilities			6,288		134,368
	Vinci SA		Construction & Engineering			5,784		478,526
	Vivendi SA		Entertainment			10,080		215,952
	Wendel SA		Diversified Financial Services			336		26,840
a,b	Worldline SA, Reg S		IT Services			1,608		94,747


								14,723,166

	Germany 12.6%
	1&1 Drillisch AG		Wireless Telecommunication Services			600		12,509
	Adidas AG		Textiles, Apparel & Luxury Goods			2,400		542,217
	Allianz SE		Insurance			5,136		884,094
	Aroundtown SA		Real Estate Management & Development			14,904		74,474
	BASF SE		Chemicals			11,304		535,141
	Bayer AG		Pharmaceuticals			12,240		709,794
	Bayerische Motoren Werke AG		Automobiles			4,008		207,201
	Bechtle AG		IT Services			336		43,098
	Beiersdorf AG		Personal Products			1,248		126,749
	Brenntag AG		Trading Companies & Distributors			1,944		72,161
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies			456		44,206
	Commerzbank AG		Banks			13,104		47,571



204	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
	Continental AG		Auto Components		1,344	$	96,755
	Covestro AG		Chemicals		2,088		63,852
	CTS Eventim AG & Co. KGaA		Entertainment		744		33,618
	Daimler AG		Automobiles		10,008		302,205
a	Delivery Hero SE		Internet & Direct Marketing Retail		1,752		130,645
	Deutsche Bank AG		Capital Markets		25,440		166,619
	Deutsche Boerse AG		Capital Markets		2,280		312,716
	Deutsche Lufthansa AG		Airlines		2,856		26,831
	Deutsche Post AG		Air Freight & Logistics		12,216		332,084
	Deutsche Telekom AG		Diversified Telecommunication Services		40,248		521,732
	Deutsche Wohnen AG		Real Estate Management & Development		4,464		170,014
c	DWS Group GmbH & Co. KGaA, 144A		Capital Markets		432		10,684
	E.ON SE		Multi-Utilities		27,000		279,697
	Evonik Industries AG		Chemicals		2,352		49,215
	Fielmann AG		Specialty Retail		360		20,995
	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure		432		17,491
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services		2,616		172,799
	Fresenius SE and Co. KGaA		Health Care Providers & Services		5,064		188,531
	Fuchs Petrolub SE		Chemicals		480		15,379
	GEA Group AG		Machinery		2,112		43,393
	Grenkeleasing AG		Consumer Finance		336		19,816
	Hannover Rueck SE		Insurance		744		106,942
	Hapag-Lloyd AG		Marine		336		26,250
	HeidelbergCement AG		Construction Materials		1,872		80,293
	Hella GmbH & Co. KGaA		Auto Components		552		16,087
	Henkel AG & Co. KGaA		Household Products		1,272		94,001
	Hochtief AG		Construction & Engineering		240		15,932
	Hugo Boss AG		Textiles, Apparel & Luxury Goods		840		21,300
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment		15,528		228,822
	KION Group AG		Machinery		888		38,429
	Knorr-Bremse AG		Machinery		600		53,221
	Lanxess AG		Chemicals		1,056		42,200
	LEG Immobilien AG		Real Estate Management & Development		864		97,362
	Merck KGaA		Pharmaceuticals		1,608		165,181
	METRO AG		Food & Staples Retailing		2,136		18,440
	MTU Aero Engines AG		Aerospace & Defense		648		94,814
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance		1,800		363,607
	Nemetschek AG		Software		672		33,387
a	Osram Licht AG		Electrical Equipment		912		32,523
	ProSiebenSat.1 Media SE		Media		2,352		18,659
	Puma SE		Textiles, Apparel & Luxury Goods		984		58,735
	Rational AG		Machinery		48		25,481
	Rheinmetall AG		Industrial Conglomerates		552		38,800
a,c	Rocket Internet SE, 144A		Internet & Direct Marketing Retail		744		15,037
	RWE AG		Multi-Utilities		7,128		187,396
	SAP SE		Software		12,048		1,358,982
b	Scout24 AG, Reg S		Interactive Media & Services		1,320		79,298
	Siemens AG		Industrial Conglomerates		9,432		801,758
	Siemens Healthineers AG		Health Care Equipment & Supplies		1,608		63,597
	Suedzucker AG		Food Products		984		14,112
	Symrise AG		Chemicals		1,560		145,495
a	Talanx AG		Insurance		504		17,121
a	TeamViewer AG		Software		1,224		48,873
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		8,424		20,881
a	thyssenkrupp AG		Metals & Mining		5,856		30,637



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
a	Traton SE		Machinery		600	$	8,387
	TUI AG		Hotels, Restaurants & Leisure		5,472		24,616
	Uniper SE		Independent Power and Renewable Electricity Producers		2,400		59,225
	United Internet AG		Diversified Telecommunication Services		1,368		40,333
a	Varta AG		Electrical Equipment		192		13,841
	Volkswagen AG		Automobiles		408		54,348
	Vonovia SE		Real Estate Management & Development		6,768		333,139
	Wacker Chemie AG		Chemicals		192		9,588
	Wirecard AG		IT Services		1,416		162,595
a	Zalando SE		Internet & Direct Marketing Retail		1,872		71,871


							11,505,882

	Ireland 0.9%
a	AIB Group PLC		Banks		9,456		10,604
	Bank of Ireland Group PLC		Banks		11,664		22,064
	CRH PLC		Construction Materials		9,912		270,143
	Flutter Entertainment PLC		Hotels, Restaurants & Leisure		936		84,584
	Glanbia PLC		Food Products		2,448		26,512
	Kerry Group		Food Products		1,824		210,546
	Kingspan Group PLC		Building Products		1,872		100,032
	Smurfit Kappa Group PLC		Containers & Packaging		2,976		84,503


							808,988

	Italy 3.6%
	A2A SpA		Multi-Utilities		19,392		24,108
	Amplifon SpA		Health Care Providers & Services		1,440		29,578
	Assicurazioni Generali SpA		Insurance		15,984		217,652
	Atlantia SpA		Transportation Infrastructure		6,096		76,453
	Banca Mediolanum SpA		Diversified Financial Services		3,624		18,490
a	Banco BPM SpA		Banks		19,056		25,091
	Buzzi Unicem SpA		Construction Materials		888		16,243
	Buzzi Unicem SpA, di Risp		Construction Materials		528		4,953
	Davide Campari-Milano SpA		Beverages		6,792		48,814
	DiaSorin SpA		Health Care Equipment & Supplies		288		38,142
	Enel SpA		Electric Utilities		96,720		672,733
	Eni SpA		Oil, Gas & Consumable Fuels		31,152		315,154
	Ferrari NV		Automobiles		1,536		238,565
	FinecoBank Banca Fineco SpA		Banks		7,440		67,676
	Hera SpA		Multi-Utilities		9,864		35,371
b	Infrastrutture Wireless Italiane SpA, Reg S		Diversified Telecommunication Services		3,096		33,563
	Intesa Sanpaolo SpA		Banks		186,504		304,589
	Italgas Reti SpA		Gas Utilities		6,072		33,239
	Leonardo SpA		Aerospace & Defense		4,872		32,460
a	Mediaset SpA		Media		4,368		9,298
	Mediobanca Banca di Credito Finanziario SpA		Banks		9,720		53,625
	Moncler SpA		Textiles, Apparel & Luxury Goods		2,424		88,543
a	Nexi SpA		IT Services		3,768		49,026
	Pirelli & C SpA		Auto Components		5,496		19,690
b	Poste Italiane SpA, Reg S		Insurance		5,544		46,962
	Prysmian SpA		Electrical Equipment		3,144		50,366
	Recordati SpA		Pharmaceuticals		1,200		50,746
a	Saipem SpA		Energy Equipment & Services		7,176		17,638
	Salvatore Ferragamo SpA		Textiles, Apparel & Luxury Goods		936		12,427
	Snam SpA		Gas Utilities		28,176		129,971
a	Telecom Italia SpA/Milano		Diversified Telecommunication Services		132,024		53,947
	Telecom Italia SpA/Milano, di Risp		Diversified Telecommunication Services		75,792		29,980



206	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Italy (continued)
	Tenaris SA		Energy Equipment & Services		5,880	$	36,001
	Terna Rete Elettrica Nazionale SpA		Electric Utilities		17,736		112,289
	UniCredit SpA		Banks		27,888		218,699
	Unione di Banche Italiane SpA		Banks		12,096		31,947
	UnipolSai Assicurazioni SpA		Insurance		7,416		18,227


							3,262,256

	Kazakhstan 0.0%^†
	KAZ Minerals PLC		Metals & Mining		2,952		12,855

	Luxembourg 0.1%
	Eurofins Scientific SE		Life Sciences Tools & Services		144		71,260
	RTL Group SA		Media		504		16,989
	SES SA, IDR		Media		4,416		25,913


							114,162

	Netherlands 5.1%
	Aalberts NV		Machinery		1,200		28,493
	ABN AMRO Bank NV, GDR		Banks		5,208		42,767
a	Adyen NV		IT Services		336		284,102
	Aegon NV		Insurance		22,033		55,943
	Akzo Nobel NV		Chemicals		2,424		159,611
a	Altice Europe NV, A		Media		6,792		26,315
a	Altice Europe NV, B		Media		528		2,060
a	Argenx SE		Biotechnology		528		71,260
	ASM International NV		Semiconductors & Semiconductor Equipment		600		60,134
	ASML Holding NV		Semiconductors & Semiconductor Equipment		4,992		1,328,013
	ASR Nederland NV		Insurance		1,680		42,324
	Boskalis Westminster		Construction & Engineering		1,056		19,055
b	Euronext NV, Reg S		Capital Markets		792		58,920
	EXOR NV		Diversified Financial Services		1,296		66,836
	Grandvision NV		Specialty Retail		624		17,076
	Heineken Holding NV		Beverages		1,344		103,008
	Heineken NV		Beverages		2,928		244,683
	ING Groep NV		Banks		48,600		254,980
a,b,c	Just Eat Takeaway, 144A, Reg S		Internet & Direct Marketing Retail		1,344		100,989
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing		13,560		316,693
	Koninklijke DSM NV		Chemicals		2,184		248,027
	Koninklijke KPN NV		Diversified Telecommunication Services		41,424		98,905
	Koninklijke Philips NV		Health Care Equipment & Supplies		11,112		450,091
	Koninklijke Vopak NV		Oil, Gas & Consumable Fuels		792		41,209
	NN Group NV		Insurance		4,104		110,777
a	OCI NV		Chemicals		1,200		14,431
a	QIAGEN NV		Life Sciences Tools & Services		2,784		111,834
	Randstad NV		Professional Services		1,392		49,135
	Signify NV		Electrical Equipment		1,536		29,814
	Wolters Kluwer NV		Professional Services		3,264		229,856


							4,667,341

	Norway 0.9%
	Aker ASA		Diversified Financial Services		312		7,000
	Aker BP ASA		Oil, Gas & Consumable Fuels		1,392		17,577
	DNB ASA		Banks		12,960		144,089
	Equinor ASA		Oil, Gas & Consumable Fuels		12,216		152,569
	Gjensidige Forsikring ASA		Insurance		2,088		35,403
	Leroy Seafood Group ASA		Food Products		3,168		15,428
	Mowi ASA		Food Products		5,280		79,771



franklintempleton.com	Annual Report	207

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STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Norway (continued)
	Norsk Hydro ASA		Metals & Mining		16,752	$	36,085
	Orkla ASA		Food Products		9,432		79,958
	Salmar ASA		Food Products		648		21,438
	Schibsted ASA, A		Media		1,008		19,078
	Schibsted ASA, B		Media		1,200		21,278
	Telenor ASA		Diversified Telecommunication Services		8,016		115,954
	Yara International ASA		Chemicals		2,184		68,488


							814,116

	Poland 0.4%
	Bank Pekao SA		Banks		1,968		26,600
	CD Projekt SA		Entertainment		768		53,456
	Cyfrowy Polsat SA		Media		3,504		20,095
a	Dino Polska SA		Food & Staples Retailing		600		23,417
	Grupa Lotos SA		Oil, Gas & Consumable Fuels		1,248		15,582
a	KGHM Polska Miedz SA		Metals & Mining		1,728		24,887
	LPP SA		Textiles, Apparel & Luxury Goods		7		8,814
a	mBank SA		Banks		216		11,535
a	PGE Polska Grupa Energetyczna SA		Electric Utilities		9,144		8,381
	Polski Koncern Naftowy Orlen SA		Oil, Gas & Consumable Fuels		3,936		52,783
	Polskie Gornictwo Naftowe i Gazownictwo SA		Oil, Gas & Consumable Fuels		21,240		17,591
	Powszechna Kasa Oszczednosci Bank Polski SA		Banks		10,704		58,294
	Powszechny Zaklad Ubezpieczen SA		Insurance		7,080		53,405
	Santander Bank Polska SA		Banks		336		14,036


							388,876

	Portugal 0.3%
	EDP- Energias de Portugal SA		Electric Utilities		31,632		126,963
	Galp Energia SGPS SA, B		Oil, Gas & Consumable Fuels		6,456		73,637
	Jeronimo Martins SGPS SA		Food & Staples Retailing		2,952		53,250


							253,850

	Russia 0.1%
	Evraz PLC		Metals & Mining		6,840		19,643
	Polymetal International PLC		Metals & Mining		4,200		71,841


							91,484

	South Africa 0.0%^†
	Investec PLC		Capital Markets		8,448		15,912

	Spain 4.1%
	Acciona SA		Electric Utilities		264		28,200
	ACS Actividades de Construccion y Servicios SA		Construction & Engineering		3,017		58,975
	Aena SME SA		Transportation Infrastructure		888		96,968
	Amadeus IT Group SA, A		IT Services		5,064		240,040
	Banco Bilbao Vizcaya Argentaria SA		Banks		82,416		263,651
	Banco de Sabadell SA		Banks		68,280		35,138
	Banco Santander SA		Banks		204,336		497,293
	Bankia SA		Banks		15,408		17,211
	Bankinter SA		Banks		8,616		31,614
	CaixaBank SA		Banks		45,168		84,253
	Cellnex Telecom SA		Diversified Telecommunication Services		3,367		153,135
	Corporacion Mapfre SA		Insurance		12,408		21,191
	EDP Renovaveis SA		Independent Power and Renewable Electricity Producers		1,920		23,132
	Enagas SA		Gas Utilities		3,048		60,517



208	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Spain (continued)
	Endesa SA		Electric Utilities			3,984	$	85,112
	Ferrovial SA		Construction & Engineering			5,904		141,677
	Grifols SA		Biotechnology			4,152		141,229
	Iberdrola SA		Electric Utilities			73,800		727,498
	Industria de Diseno Textil SA		Specialty Retail			13,152		341,438
	Inmobiliaria Colonial SA		Equity Real Estate Investment Trusts (REITs	)		4,008		37,975
	Merlin Properties Socimi SA		Equity Real Estate Investment Trusts (REITs	)		4,200		31,660
	Naturgy Energy Group SA		Gas Utilities			3,648		64,505
	Red Electrica Corp. SA		Electric Utilities			5,304		95,241
	Repsol SA		Oil, Gas & Consumable Fuels			17,040		155,785
	Siemens Gamesa Renewable Energy SA		Electrical Equipment			2,808		42,303
	Telefonica SA		Diversified Telecommunication Services			56,544		258,936
	Zardoya Otis SA		Machinery			2,232		15,062


								3,749,739

	Sweden 4.5%
	Alfa Laval AB		Machinery			3,936		68,429
	Assa Abloy AB, B		Building Products			11,472		217,336
	Atlas Copco AB		Machinery			4,680		138,402
	Atlas Copco AB, A		Machinery			7,848		264,486
	Boliden AB		Metals & Mining			3,432		62,802
	Castellum AB		Real Estate Management & Development			3,336		56,567
	Electrolux AB, B		Household Durables			2,976		37,186
a	Electrolux Professional AB, B		Machinery			2,976		8,561
	Elekta AB, B		Health Care Equipment & Supplies			4,536		37,633
	Epiroc AB, A		Machinery			7,848		77,991
	Epiroc AB, B		Machinery			4,752		47,205
a	EQT AB		Capital Markets			2,520		30,140
	Ericsson, B		Communications Equipment			37,056		303,174
	Essity AB, B		Household Products			7,536		232,750
a	Fastighets AB Balder, B		Real Estate Management & Development			1,248		44,969
	Hennes & Mauritz AB, B		Specialty Retail			10,896		140,768
	Hexagon AB, B		Electronic Equipment, Instruments & Components			3,168		135,575
	Hufvudstaden AB, A		Real Estate Management & Development			1,344		18,408
	Husqvarna AB, B		Household Durables			5,160		26,009
	ICA Gruppen AB		Food & Staples Retailing			984		41,505
	Industrivarden AB, A		Diversified Financial Services			2,928		57,214
	Industrivarden AB, C		Diversified Financial Services			1,776		34,757
	Investment AB Latour, B		Industrial Conglomerates			1,512		21,609
	Investor AB, A		Diversified Financial Services			1,680		76,474
	Investor AB, B		Diversified Financial Services			5,616		259,099
	Kinnevik AB, B		Diversified Financial Services			2,952		49,192
	L E Lundbergforetagen AB, B		Diversified Financial Services			912		37,483
	Lundin Petroleum AB		Oil, Gas & Consumable Fuels			2,160		41,531
	Nibe Industrier AB		Building Products			3,792		55,343
	Saab AB, B		Aerospace & Defense			1,152		22,202
	Sandvik AB		Machinery			13,344		190,240
	Securitas AB, B		Commercial Services & Supplies			3,840		41,645
	Skandinaviska Enskilda Banken AB, A		Banks			17,928		121,562
	Skandinaviska Enskilda Banken AB, C		Banks			264		2,017
a	Skanska AB, B		Construction & Engineering			4,464		68,237
	SKF AB, B		Machinery			4,776		65,896
	Svenska Cellulosa AB, A		Paper & Forest Products			144		1,453
	Svenska Cellulosa AB, B		Paper & Forest Products			7,440		75,431
a	Svenska Handelsbanken AB, A		Banks			18,432		154,671
	Svenska Handelsbanken AB, B		Banks			456		4,147
	Swedbank AB, A		Banks			12,408		138,824



franklintempleton.com	Annual Report	209

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Sweden (continued)
	Swedish Match AB		Tobacco		2,040	$	116,952
a	Swedish Orphan Biovitrum AB		Biotechnology		2,232		38,072
	Tele2 AB, B		Wireless Telecommunication Services		6,696		90,157
	Telefonaktiebolaget LM Ericsson, A		Communications Equipment		456		3,728
	Telia Co. AB		Diversified Telecommunication Services		32,688		117,783
	Trelleborg AB, B		Machinery		3,048		33,025
	Volvo AB, B		Machinery		18,672		225,209


							4,133,849

	Switzerland 17.2%
	ABB Ltd.		Electrical Equipment		22,272		391,438
	Adecco Group AG		Professional Services		1,944		76,631
a	Alcon Inc.		Health Care Equipment & Supplies		5,712		291,223
	Baloise Holding AG		Insurance		576		75,546
	Banque Cantonale Vaudoise		Banks		24		19,695
	Barry Callebaut AG		Food Products		31		62,157
	Chocoladefabriken Lindt & Spruengli AG		Food Products		24		202,284
	Cie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		6,360		348,779
	Clariant AG		Chemicals		2,520		42,362
	Coca-Cola HBC AG		Beverages		2,448		52,725
	Credit Suisse Group AG		Capital Markets		30,456		251,820
	DKSH Holding AG		Professional Services		456		22,632
	Dufry AG		Specialty Retail		360		11,192
	EMS-Chemie Holding AG		Chemicals		96		60,375
	Flughafen Zurich AG		Transportation Infrastructure		240		27,037
	Geberit AG		Building Products		432		190,204
	Georg Fischer AG		Machinery		48		33,189
	Givaudan AG		Chemicals		120		371,454
	Glencore PLC		Metals & Mining		135,048		207,307
	Helvetia Holding AG		Insurance		408		35,126
	Julius Baer Group Ltd.		Capital Markets		2,712		92,582
	Kuehne + Nagel International AG		Marine		624		85,679
	LafargeHolcim Ltd., B		Construction Materials		6,312		230,678
	Logitech International SA		Technology Hardware, Storage & Peripherals		1,824		78,876
	Lonza Group AG		Life Sciences Tools & Services		912		379,108
	Nestle SA		Food Products		36,000		3,700,274
	Novartis AG		Pharmaceuticals		26,520		2,188,643
	OC Oerlikon Corp. AG		Machinery		2,520		20,211
	Pargesa Holding SA, B		Diversified Financial Services		480		31,825
	Partners Group Holding AG		Capital Markets		216		149,484
	PSP Swiss Property AG		Real Estate Management & Development		480		59,879
	Roche Holding AG		Pharmaceuticals		336		107,723
	Roche Holding AG		Pharmaceuticals		8,640		2,804,395
	Schindler Holding AG		Machinery		240		50,701
	Schindler Holding AG, PC		Machinery		504		110,640
	SGS SA		Professional Services		72		166,838
	Sika AG		Chemicals		1,704		281,696
	Sonova Holding AG		Health Care Equipment & Supplies		672		121,127
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment		7,872		171,671
	Straumann Holding AG		Health Care Equipment & Supplies		120		89,471
	Sulzer AG		Machinery		216		13,640
	Swatch Group AG		Textiles, Apparel & Luxury Goods		336		67,179
	Swatch Group AG		Textiles, Apparel & Luxury Goods		624		24,559
	Swiss Life Holding AG		Insurance		408		138,903
	Swiss Prime Site AG		Real Estate Management & Development		960		94,011
	Swiss Re AG		Insurance		3,456		266,321
	Swisscom AG		Diversified Telecommunication Services		312		167,746



210	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



	Industry			Shares		Value
Common Stocks and Other Equity Interests (continued)
Switzerland (continued)
Temenos AG		Software			744	$	97,580
UBS Group AG		Capital Markets			42,192		394,469
Vifor Pharma AG		Pharmaceuticals			552		76,306
Zurich Insurance Group AG		Insurance			1,848		655,887


							15,691,278

United Arab Emirates 0.0%^†
NMC Health PLC		Health Care Providers & Services			1,159		1,604

United Kingdom 24.4%
3i Group PLC		Capital Markets			11,712		115,046
Admiral Group PLC		Insurance			2,544		70,344
Anglo American PLC		Metals & Mining			15,312		268,919
Antofagasta PLC		Metals & Mining			4,344		41,636
Ashmore Group PLC		Capital Markets			5,592		24,740
Ashtead Group PLC		Trading Companies & Distributors			5,592		122,416
Associated British Foods PLC		Food Products			4,368		98,248
AstraZeneca PLC		Pharmaceuticals			16,344		1,462,376
Auto Trader Group PLC		Interactive Media & Services			11,088		60,370
Avast PLC		Software			6,696		32,663
AVEVA Group PLC		Software			816		35,352
Aviva PLC		Insurance			48,648		161,962
B&M European Value Retail SA		Multiline Retail			10,032		34,307
Babcock International Group PLC		Commercial Services & Supplies			3,168		15,053
BAE Systems PLC		Aerospace & Defense			39,912		258,233
Barclays PLC		Banks			213,528		249,169
Barratt Developments PLC		Household Durables			12,504		68,374
Bellway PLC		Household Durables			1,608		42,987
BHP Group PLC		Metals & Mining			25,824		400,896
BP PLC		Oil, Gas & Consumable Fuels			248,184		1,059,227
British American Tobacco PLC		Tobacco			28,416		972,118
British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		11,544		48,124
BT Group PLC		Diversified Telecommunication Services			108,648		158,833
Bunzl PLC		Trading Companies & Distributors			4,224		85,346
Burberry Group PLC		Textiles, Apparel & Luxury Goods			5,040		82,773
Centrica PLC		Multi-Utilities			72,960		34,450
Cineworld Group PLC		Entertainment			12,072		7,429
CNH Industrial NV		Machinery			12,216		69,915
Compass Group PLC		Hotels, Restaurants & Leisure			19,704		308,820
ConvaTec Group PLC		Health Care Equipment & Supplies			18,432		42,624
Croda International PLC		Chemicals			1,512		80,092
DCC PLC		Industrial Conglomerates			1,224		77,403
Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		1,248		50,602
Diageo PLC		Beverages			28,704		920,575
Direct Line Insurance Group PLC		Insurance			17,280		63,401
DS Smith PLC		Containers & Packaging			15,768		53,845
easyJet PLC		Airlines			2,472		17,502
Experian PLC		Professional Services			11,280		314,839
Ferguson PLC		Trading Companies & Distributors			2,808		176,039
Fiat Chrysler Automobiles NV		Automobiles			13,704		98,821
Fresnillo PLC		Metals & Mining			2,328		19,248
G4S PLC		Commercial Services & Supplies			19,440		22,249
GlaxoSmithKline PLC		Pharmaceuticals			61,008		1,145,748
GVC Holdings PLC		Hotels, Restaurants & Leisure			7,320		50,919
Halma PLC		Electronic Equipment, Instruments & Components			4,752		113,190
Hargreaves Lansdown PLC		Capital Markets			3,768		64,756
Hikma Pharmaceuticals PLC		Pharmaceuticals			1,752		44,208



franklintempleton.com	Annual Report	211

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Hiscox Ltd.		Insurance			3,528	$	40,464
	HomeServe PLC		Commercial Services & Supplies			3,432		45,023
	Howden Joinery Group PLC		Trading Companies & Distributors			7,128		45,252
	HSBC Holdings PLC		Banks			252,264		1,420,870
	IMI PLC		Machinery			3,360		31,138
	Imperial Brands PLC		Tobacco			11,856		220,042
	Inchcape PLC		Distributors			4,896		26,299
	Informa PLC		Media			15,504		85,086
	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			2,256		98,340
	Intermediate Capital Group PLC		Capital Markets			3,432		38,151
	International Consolidated Airlines Group SA		Airlines			5,640		15,043
	Intertek Group PLC		Professional Services			2,016		118,138
	ITV PLC		Media			46,800		38,311
	J Sainsbury PLC		Food & Staples Retailing			20,232		52,782
	JD Sports Fashion PLC		Specialty Retail			5,328		30,238
	John Wood Group PLC		Energy Equipment & Services			8,400		16,212
	Johnson Matthey PLC		Chemicals			2,376		52,971
	Kingfisher PLC		Specialty Retail			26,544		47,362
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		8,952		61,805
	Legal & General Group PLC		Insurance			73,704		177,158
	Lloyds Banking Group PLC		Banks			871,776		345,907
	London Stock Exchange Group PLC		Capital Markets			3,912		353,130
a	M&G PLC		Diversified Financial Services			32,856		45,873
	Marks & Spencer Group PLC		Multiline Retail			24,338		29,949
	Meggitt PLC		Aerospace & Defense			9,720		34,988
	Melrose Industries PLC		Electrical Equipment			59,880		67,937
	Micro Focus International PLC		Software			4,080		20,236
	Mondi PLC		Paper & Forest Products			6,120		104,797
	National Grid PLC		Multi-Utilities			43,296		508,181
	Next PLC		Multiline Retail			1,560		78,766
a	Ninety One PLC		Capital Markets			4,224		9,056
a	Ocado Group PLC		Internet & Direct Marketing Retail			5,688		86,045
	Pearson PLC		Media			9,552		65,450
	Pennon Group PLC		Water Utilities			5,232		70,421
	Persimmon PLC		Household Durables			3,984		94,674
	Phoenix Group Holdings PLC		Insurance			6,408		49,787
	Prudential PLC		Insurance			32,304		414,773
	Quilter PLC		Capital Markets			22,848		33,430
	Reckitt Benckiser Group PLC		Household Products			7,824		596,634
	RELX PLC		Professional Services			23,400		502,537
	Renishaw PLC		Electronic Equipment, Instruments & Components			432		16,948
	Rentokil Initial PLC		Commercial Services & Supplies			23,112		111,135
	Rightmove PLC		Interactive Media & Services			10,800		65,270
	Rolls-Royce Holdings PLC		Aerospace & Defense			21,504		90,817
	Royal Bank of Scotland Group PLC		Banks			56,424		78,988
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			51,528		906,630
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			46,536		784,636
	RSA Insurance Group PLC		Insurance			12,792		66,681
	Schroders PLC		Capital Markets			1,416		43,613
	Segro PLC		Equity Real Estate Investment Trusts (REITs	)		13,536		128,229
	Severn Trent PLC		Water Utilities			2,976		84,134
	Smith & Nephew PLC		Health Care Equipment & Supplies			10,896		193,808
	Smiths Group PLC		Industrial Conglomerates			4,968		75,522
	Spirax-Sarco Engineering PLC		Machinery			912		92,333
	SSE PLC		Electric Utilities			12,840		207,769
	St. James’s Place Capital PLC		Capital Markets			6,552		61,711



212	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Standard Chartered PLC		Banks		32,736	$	180,955
	Standard Life Aberdeen PLC		Capital Markets		28,584		79,356
	Subsea 7 SA		Energy Equipment & Services		2,976		14,040
	Tate & Lyle PLC		Food Products		5,832		47,438
	Taylor Wimpey PLC		Household Durables		40,800		59,443
	TechnipFMC PLC		Energy Equipment & Services		5,736		39,450
	Tesco PLC		Food & Staples Retailing		120,408		341,598
	The Berkeley Group Holdings PLC		Household Durables		1,464		65,623
	The Sage Group PLC		Software		13,584		99,680
	Travis Perkins PLC		Trading Companies & Distributors		3,168		34,670
	Unilever NV		Personal Products		17,016		836,546
	Unilever PLC		Personal Products		13,560		685,243
	United Utilities Group PLC		Water Utilities		8,568		95,912
a	Virgin Money UK PLC		Banks		15,120		11,624
	Vodafone Group PLC		Wireless Telecommunication Services		333,984		467,960
	Weir Group PLC		Machinery		3,264		29,180
	Whitbread PLC		Hotels, Restaurants & Leisure		1,704		64,020
	William Morrison Supermarkets PLC		Food & Staples Retailing		27,864		61,499
	WPP PLC		Media		14,832		101,408


							22,243,312

	United States 0.0%^†
	Carnival PLC		Hotels, Restaurants & Leisure		1,968		23,948

	Total Common Stocks and Other Equity Interests (Cost $112,999,923)						90,036,261

	Preferred Stocks 0.7%
	Germany 0.7%
d	Bayerische Motoren Werke AG, 8.989%, pfd.		Automobiles		720		30,937
d	Fuchs Petrolub SE, 2.939%, pfd.		Chemicals		816		28,938
d	Henkel AG & Co. KGaA, 2.527%, pfd.		Household Products		2,208		177,344
d	Porsche Automobil Holding SE, 5.714%, pfd.		Automobiles		1,896		80,469
d	Sartorius AG, 0.279%, pfd.		Health Care Equipment & Supplies		432		105,326
d	Volkswagen AG, 4.549%, pfd.		Automobiles		2,256		264,471

	Total Preferred Stocks (Cost $955,523)						687,485

	Total Investments (Cost $113,955,446) 99.3%						90,723,746
	Other Assets, less Liabilities 0.7%						632,488

	Net Assets 100.0%					$	91,356,234

See abbreviations on page 351.

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the aggregate value of these securities was $494,080, representing 0.5% of net assets.

^dVariable rate security. The rate shown represents the yield at period end.



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe ETF (continued)

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).


Futures Contracts

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Equity Contracts
EURO STOXX 50 Index		Long		9	$	271,273		6/19/20	$	25,006
FTSE 100 Index		Long		2		139,755		6/19/20		11,517

Total Futures Contracts									$	36,523

*As of period end.

See note 8 regarding derivative information



214	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Europe Hedged ETF



	Year Ended March 31,

	2020			2019			2018^a
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	22.81		$	23.88		$	25.05


Income from investment operations^b:

Net investment income^c		0.73			0.79			0.25

Net realized and unrealized gains (losses)		(2.92	)		0.62			(1.40	)


Total from investment operations		(2.19	)		1.41			(1.15	)


Less distributions from:

Net investment income		(1.47	)		(0.38	)		(0.02	)

Net realized gains		—			(2.10	)		—	^d


Total distributions		(1.47	)		(2.48	)		(0.02	)


Net asset value, end of year	$	19.15		$	22.81		$	23.88


Total return^e		(10.67)%			6.98%			(4.61)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%

Expenses net waiver and payments by affiliates		0.09%			0.09%			—%

Net investment income		3.10%			3.28%			2.47%

Supplemental data

Net assets, end of year (000’s)		$3,831			$4,563			$33,428

Portfolio turnover rate^g		14.81%	^h		26.81%			5.33%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.001 per share.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 14.81%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	215

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Europe Hedged ETF



		Industry		Shares		Value
	Common Stocks and Other Equity Interests 97.3%
	Australia 0.7%
	Rio Tinto PLC		Metals & Mining		567	$	26,143

	Austria 0.3%
	Andritz AG		Machinery		37		1,160
	Erste Group Bank AG		Banks		147		2,724
	OMV AG		Oil, Gas & Consumable Fuels		71		1,960
	Raiffeisen Bank International AG		Banks		65		954
	Telekom Austria AG		Diversified Telecommunication Services		83		578
	Verbund AG		Electric Utilities		35		1,268
	Vienna Insurance Group AG Wiener Versicherung Gruppe		Insurance		22		414
	Voestalpine AG		Metals & Mining		61		1,241


							10,299

	Belgium 1.5%
	Ackermans & van Haaren NV		Diversified Financial Services		11		1,433
	Ageas		Insurance		95		3,952
	Anheuser-Busch InBev SA/NV		Beverages		401		17,807
	Colruyt SA		Food & Staples Retailing		25		1,351
	Elia Group SA/NV		Electric Utilities		17		1,662
a	Galapagos NV		Biotechnology		25		4,965
	Groupe Bruxelles Lambert SA		Diversified Financial Services		38		2,986
	KBC Groep NV		Banks		141		6,501
	Proximus SADP		Diversified Telecommunication Services		71		1,626
	Sofina SA		Diversified Financial Services		8		1,631
	Solvay SA		Chemicals		36		2,622
	Telenet Group Holding NV		Media		23		692
	UCB SA		Pharmaceuticals		61		5,288
	Umicore SA		Chemicals		108		3,774


							56,290

	China 0.4%
^a	Prosus NV		Internet & Direct Marketing Retail		222		15,383

	Denmark 3.4%
	A.P. Moeller-Maersk AS, A		Marine		2		1,657
	A.P. Moeller-Maersk AS, B		Marine		3		2,687
	Ambu AS, B		Health Care Equipment & Supplies		86		2,089
	Carlsberg AS, B		Beverages		54		6,112
	Chr. Hansen Holding AS		Chemicals		53		3,965
	Coloplast AS, B		Health Care Equipment & Supplies		69		10,010
	Danske Bank AS		Banks		335		3,788
	DSV Panalpina A/S		Air Freight & Logistics		107		9,727
a	Genmab AS		Biotechnology		30		6,074
	GN Store Nord AS		Health Care Equipment & Supplies		68		3,038
	H. Lundbeck AS		Pharmaceuticals		32		950
	ISS AS		Commercial Services & Supplies		98		1,347
	Novo Nordisk AS, B		Pharmaceuticals		854		51,378
	Novozymes AS		Chemicals		105		4,775
	Orsted AS		Electric Utilities		97		9,505
	Pandora AS		Textiles, Apparel & Luxury Goods		47		1,527
	Rockwool International AS, B		Building Products		3		543
	Tryg AS		Insurance		59		1,451
	Vestas Wind Systems AS		Electrical Equipment		102		8,288
a	William Demant Holding AS		Health Care Equipment & Supplies		59		1,307


							130,218

	Finland 1.9%
	Elisa OYJ		Diversified Telecommunication Services		73		4,524
b	Fortum OYJ, Reg S		Electric Utilities		217		3,185



216	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Finland (continued)
	Huhtamaki OYJ		Containers & Packaging			48	$	1,537
	Kesko OYJ		Food & Staples Retailing			35		1,982
	Kone OYJ, B		Machinery			201		11,385
	Metso OYJ		Machinery			56		1,335
	Neste Oil OYJ		Oil, Gas & Consumable Fuels			213		7,210
	Nokia OYJ, A		Communications Equipment			2,905		9,145
	Nokian Renkaat OYJ		Auto Components			65		1,574
	Nordea Bank Abp		Banks			1,653		9,310
	Orion OYJ		Pharmaceuticals			53		2,168
	Sampo OYJ, A		Insurance			251		7,331
	Stora Enso OYJ, R		Paper & Forest Products			292		2,962
	UPM-Kymmene OYJ		Paper & Forest Products			283		7,791
	Wartsila OYJ ABP		Machinery			257		1,886


								73,325

	France 15.9%
	Accor SA		Hotels, Restaurants & Leisure			96		2,633
a	Adevinta ASA, B		Interactive Media & Services			112		993
	Aeroports de Paris SA		Transportation Infrastructure			14		1,343
a	Air France-KLM		Airlines			94		526
	Air Liquide SA		Chemicals			237		30,335
	Airbus SE		Aerospace & Defense			282		18,361
c	ALD SA, 144A		Road & Rail			46		404
	Alstom SA		Machinery			95		3,976
	Amundi SA		Capital Markets			30		1,773
	ArcelorMittal SA		Metals & Mining			305		2,899
	Arkema SA		Chemicals			37		2,558
	Atos SE		IT Services			48		3,252
	AXA SA		Insurance			1,000		17,323
	Biomerieux		Health Care Equipment & Supplies			22		2,477
	BNP Paribas SA		Banks			563		16,994
	Bollore		Entertainment			519		1,429
	Bouygues SA		Construction & Engineering			115		3,372
	Bureau Veritas SA		Professional Services			138		2,621
	Capgemini SE		IT Services			83		7,013
	Carrefour SA		Food & Staples Retailing			309		4,887
	Casino Guichard-Perrachon SA		Food & Staples Retailing			28		1,079
	Cie Generale des Etablissements Michelin SCA		Auto Components			91		8,094
	CNP Assurances		Insurance			86		842
	Compagnie de Saint-Gobain		Building Products			248		6,031
	Covivio		Equity Real Estate Investment Trusts (REITs	)		24		1,352
	Credit Agricole SA		Banks			588		4,316
	Danone SA		Food Products			306		19,689
	Dassault Aviation SA		Aerospace & Defense			1		822
	Dassault Systemes		Software			67		9,925
	Edenred		IT Services			124		5,182
	EDF SA		Electric Utilities			253		1,995
	Eiffage SA		Construction & Engineering			38		2,689
	Elis SA		Commercial Services & Supplies			109		1,033
	Engie SA		Multi-Utilities			853		8,809
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods			151		16,283
	Eurazeo SE		Diversified Financial Services			21		948
	Eutelsat Communications SA		Media			95		993
	Faurecia SE		Auto Components			37		1,108
	Gecina SA		Equity Real Estate Investment Trusts (REITs	)		26		3,443
	Getlink SE		Transportation Infrastructure			235		2,834



franklintempleton.com	Annual Report	217

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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	France (continued)
	Hermes International		Textiles, Apparel & Luxury Goods			16	$	11,039
	ICADE		Equity Real Estate Investment Trusts (REITs	)		16		1,267
	Iliad SA		Diversified Telecommunication Services			8		1,085
	Imerys SA		Construction Materials			19		478
	Ingenico Group SA		Electronic Equipment, Instruments & Components			32		3,404
	Ipsen SA		Pharmaceuticals			18		932
	JCDecaux SA		Media			35		634
	Kering SA		Textiles, Apparel & Luxury Goods			38		19,843
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		96		1,851
	L’Oreal SA		Personal Products			124		32,505
	Legrand SA		Electrical Equipment			138		8,855
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods			128		47,535
	Natixis SA		Capital Markets			452		1,471
	Orange SA		Diversified Telecommunication Services			987		12,059
	Orpea		Health Care Providers & Services			26		2,717
	Pernod Ricard SA		Beverages			107		15,198
	Peugeot SA		Automobiles			301		4,018
	Plastic Omnium SA		Auto Components			29		408
	Publicis Groupe		Media			108		3,095
	Remy Cointreau SA		Beverages			13		1,421
	Renault SA		Automobiles			92		1,788
	Rexel SA		Trading Companies & Distributors			151		1,123
	Rubis SCA		Gas Utilities			47		1,963
	Safran SA		Aerospace & Defense			167		14,685
	Sanofi		Pharmaceuticals			558		49,067
	Sartorius Stedim Biotech		Life Sciences Tools & Services			12		2,410
	Schneider Electric SE		Electrical Equipment			272		23,452
	SCOR SE		Insurance			81		1,785
	SEB SA		Household Durables			13		1,619
	Societe Generale SA		Banks			395		6,652
	Sodexo SA		Hotels, Restaurants & Leisure			44		2,976
	Suez		Multi-Utilities			186		1,893
	Teleperformance		Professional Services			30		6,248
	Thales SA		Aerospace & Defense			52		4,358
	Total SA		Oil, Gas & Consumable Fuels			1,233		47,879
a	Ubisoft Entertainment SA		Entertainment			46		3,391
	Unibail-Rodamco-Westfield		Equity Real Estate Investment Trusts (REITs	)		70		3,960
	Valeo SA		Auto Components			118		1,974
	Veolia Environnement SA		Multi-Utilities			257		5,492
	Vinci SA		Construction & Engineering			242		20,021
	Vivendi SA		Entertainment			418		8,955
	Wendel SA		Diversified Financial Services			14		1,118
a,b	Worldline SA, Reg S		IT Services			67		3,948


								609,208

	Germany 12.4%
	1&1 Drillisch AG		Wireless Telecommunication Services			23		480
	Adidas AG		Textiles, Apparel & Luxury Goods			99		22,366
	Allianz SE		Insurance			215		37,009
	Aroundtown SA		Real Estate Management & Development			600		2,998
	BASF SE		Chemicals			471		22,298
	Bayer AG		Pharmaceuticals			505		29,285
	Bayerische Motoren Werke AG		Automobiles			165		8,530
	Bechtle AG		IT Services			16		2,052
	Beiersdorf AG		Personal Products			53		5,383
	Brenntag AG		Trading Companies & Distributors			86		3,192
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies			19		1,842



218	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
	Commerzbank AG		Banks		521	$	1,891
	Continental AG		Auto Components		55		3,959
	Covestro AG		Chemicals		89		2,722
	CTS Eventim AG & Co. KGaA		Entertainment		30		1,356
	Daimler AG		Automobiles		413		12,471
a	Delivery Hero SE		Internet & Direct Marketing Retail		75		5,593
	Deutsche Bank AG		Capital Markets		1,040		6,811
	Deutsche Boerse AG		Capital Markets		94		12,893
	Deutsche Lufthansa AG		Airlines		127		1,193
	Deutsche Post AG		Air Freight & Logistics		499		13,565
	Deutsche Telekom AG		Diversified Telecommunication Services		1,664		21,570
	Deutsche Wohnen AG		Real Estate Management & Development		186		7,084
c	DWS Group GmbH & Co. KGaA, 144A		Capital Markets		17		420
	E.ON SE		Multi-Utilities		1,114		11,540
	Evonik Industries AG		Chemicals		95		1,988
	Fielmann AG		Specialty Retail		12		700
	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure		19		769
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services		108		7,134
	Fresenius SE and Co. KGaA		Health Care Providers & Services		211		7,855
	Fuchs Petrolub SE		Chemicals		17		545
	GEA Group AG		Machinery		87		1,788
	Grenkeleasing AG		Consumer Finance		14		826
	Hannover Rueck SE		Insurance		32		4,600
	Hapag-Lloyd AG		Marine		14		1,094
	HeidelbergCement AG		Construction Materials		77		3,303
	Hella GmbH & Co. KGaA		Auto Components		24		699
	Henkel AG & Co. KGaA		Household Products		51		3,769
	Hochtief AG		Construction & Engineering		11		730
	Hugo Boss AG		Textiles, Apparel & Luxury Goods		32		811
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment		642		9,461
	KION Group AG		Machinery		37		1,601
	Knorr-Bremse AG		Machinery		25		2,218
	Lanxess AG		Chemicals		43		1,718
	LEG Immobilien AG		Real Estate Management & Development		35		3,944
	Merck KGaA		Pharmaceuticals		67		6,883
	METRO AG		Food & Staples Retailing		86		742
	MTU Aero Engines AG		Aerospace & Defense		27		3,951
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance		74		14,948
	Nemetschek AG		Software		28		1,391
a	Osram Licht AG		Electrical Equipment		38		1,355
	ProSiebenSat.1 Media SE		Media		92		730
	Puma SE		Textiles, Apparel & Luxury Goods		43		2,567
	Rational AG		Machinery		2		1,062
	Rheinmetall AG		Industrial Conglomerates		22		1,546
a,c	Rocket Internet SE, 144A		Internet & Direct Marketing Retail		33		667
	RWE AG		Multi-Utilities		291		7,650
	SAP SE		Software		501		56,511
b	Scout24 AG, Reg S		Interactive Media & Services		56		3,364
	Siemens AG		Industrial Conglomerates		389		33,067
	Siemens Healthineers AG		Health Care Equipment & Supplies		68		2,689
	Suedzucker AG		Food Products		42		602
	Symrise AG		Chemicals		66		6,156
a	Talanx AG		Insurance		17		578
a	TeamViewer AG		Software		47		1,877
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		351		870



franklintempleton.com	Annual Report	219

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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Germany (continued)
a	thyssenkrupp AG		Metals & Mining		245	$	1,282
a	Traton SE		Machinery		29		405
	TUI AG		Hotels, Restaurants & Leisure		216		972
	Uniper SE		Independent Power and Renewable Electricity Producers		102		2,517
	United Internet AG		Diversified Telecommunication Services		59		1,740
a	Varta AG		Electrical Equipment		6		433
	Volkswagen AG		Automobiles		16		2,131
	Vonovia SE		Real Estate Management & Development		279		13,733
	Wacker Chemie AG		Chemicals		8		399
	Wirecard AG		IT Services		59		6,775
a	Zalando SE		Internet & Direct Marketing Retail		77		2,956


							476,605

	Ireland 0.9%
a	AIB Group PLC		Banks		402		451
	Bank of Ireland Group PLC		Banks		447		846
	CRH PLC		Construction Materials		409		11,147
	Flutter Entertainment PLC		Hotels, Restaurants & Leisure		39		3,524
	Glanbia PLC		Food Products		99		1,072
	Kerry Group		Food Products		74		8,542
	Kingspan Group PLC		Building Products		78		4,168
	Smurfit Kappa Group PLC		Containers & Packaging		130		3,691


							33,441

	Italy 3.5%
	A2A SpA		Multi-Utilities		819		1,018
	Amplifon SpA		Health Care Providers & Services		63		1,294
	Assicurazioni Generali SpA		Insurance		676		9,205
	Atlantia SpA		Transportation Infrastructure		253		3,173
	Banca Mediolanum SpA		Diversified Financial Services		155		791
a	Banco BPM SpA		Banks		805		1,060
	Buzzi Unicem SpA		Construction Materials		33		604
	Buzzi Unicem SpA, di Risp		Construction Materials		23		216
	Davide Campari-Milano SpA		Beverages		288		2,070
	DiaSorin SpA		Health Care Equipment & Supplies		12		1,589
	Enel SpA		Electric Utilities		4,001		27,829
	Eni SpA		Oil, Gas & Consumable Fuels		1,283		12,980
	Ferrari NV		Automobiles		64		9,940
	FinecoBank Banca Fineco SpA		Banks		302		2,747
	Hera SpA		Multi-Utilities		420		1,506
b	Infrastrutture Wireless Italiane SpA, Reg S		Diversified Telecommunication Services		124		1,344
	Intesa Sanpaolo SpA		Banks		7,681		12,544
	Italgas Reti SpA		Gas Utilities		241		1,319
	Leonardo SpA		Aerospace & Defense		202		1,346
a	Mediaset SpA		Media		178		379
	Mediobanca Banca di Credito Finanziario SpA		Banks		402		2,218
	Moncler SpA		Textiles, Apparel & Luxury Goods		100		3,653
a	Nexi SpA		IT Services		149		1,939
	Pirelli & C SpA		Auto Components		231		827
b	Poste Italiane SpA, Reg S		Insurance		236		1,999
	Prysmian SpA		Electrical Equipment		130		2,083
	Recordati SpA		Pharmaceuticals		49		2,072
a	Saipem SpA		Energy Equipment & Services		299		735
	Salvatore Ferragamo SpA		Textiles, Apparel & Luxury Goods		40		531
	Snam SpA		Gas Utilities		1,181		5,448
a	Telecom Italia SpA/Milano		Diversified Telecommunication Services		5,604		2,290



220	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Italy (continued)
	Telecom Italia SpA/Milano, di Risp		Diversified Telecommunication Services		3,158	$	1,249
	Tenaris SA		Energy Equipment & Services		238		1,457
	Terna Rete Elettrica Nazionale SpA		Electric Utilities		733		4,641
	UniCredit SpA		Banks		1,144		8,971
	Unione di Banche Italiane SpA		Banks		467		1,233
	UnipolSai Assicurazioni SpA		Insurance		285		700


							135,000

	Kazakhstan 0.0%^†
	KAZ Minerals PLC		Metals & Mining		100		435

	Luxembourg 0.1%
	Eurofins Scientific SE		Life Sciences Tools & Services		6		2,969
	RTL Group SA		Media		19		640
	SES SA, IDR		Media		183		1,074


							4,683

	Netherlands 5.0%
	Aalberts NV		Machinery		49		1,163
	ABN AMRO Bank NV, GDR		Banks		220		1,807
a	Adyen NV		IT Services		14		11,838
	Aegon NV		Insurance		877		2,227
	Akzo Nobel NV		Chemicals		100		6,585
a	Altice Europe NV, A		Media		279		1,081
a	Altice Europe NV, B		Media		78		304
a	Argenx SE		Biotechnology		20		2,699
a	Argenx SE		Biotechnology		2		270
	ASM International NV		Semiconductors & Semiconductor Equipment		26		2,606
	ASML Holding NV		Semiconductors & Semiconductor Equipment		206		54,802
	ASR Nederland NV		Insurance		70		1,763
	Boskalis Westminster		Construction & Engineering		45		812
b	Euronext NV, Reg S		Capital Markets		32		2,381
	EXOR NV		Diversified Financial Services		52		2,682
	Grandvision NV		Specialty Retail		27		739
	Heineken Holding NV		Beverages		53		4,062
	Heineken NV		Beverages		121		10,112
	ING Groep NV		Banks		2,050		10,755
a,b,c	Just Eat Takeaway, 144A, Reg S		Internet & Direct Marketing Retail		57		4,283
	Koninklijke Ahold Delhaize NV		Food & Staples Retailing		561		13,102
	Koninklijke DSM NV		Chemicals		91		10,334
	Koninklijke KPN NV		Diversified Telecommunication Services		1,679		4,009
	Koninklijke Philips NV		Health Care Equipment & Supplies		462		18,713
	Koninklijke Vopak NV		Oil, Gas & Consumable Fuels		33		1,717
	NN Group NV		Insurance		171		4,616
a	OCI NV		Chemicals		50		601
a	QIAGEN NV		Life Sciences Tools & Services		115		4,620
	Randstad NV		Professional Services		56		1,977
	Signify NV		Electrical Equipment		67		1,300
	Wolters Kluwer NV		Professional Services		136		9,577


							193,537

	Norway 0.9%
	Aker ASA		Diversified Financial Services		13		292
	Aker BP ASA		Oil, Gas & Consumable Fuels		55		694
	DNB ASA		Banks		539		5,993
	Equinor ASA		Oil, Gas & Consumable Fuels		499		6,232
	Gjensidige Forsikring ASA		Insurance		84		1,424



franklintempleton.com	Annual Report	221

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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Norway (continued)
	Leroy Seafood Group ASA		Food Products		140	$	682
	Mowi ASA		Food Products		214		3,233
	Norsk Hydro ASA		Metals & Mining		647		1,394
	Orkla ASA		Food Products		386		3,272
	Salmar ASA		Food Products		26		860
	Schibsted ASA, A		Media		41		776
	Schibsted ASA, B		Media		50		887
	Telenor ASA		Diversified Telecommunication Services		331		4,788
	Yara International ASA		Chemicals		96		3,010


							33,537

	Poland 0.4%
	Bank Pekao SA		Banks		82		1,108
	CD Projekt SA		Entertainment		33		2,297
	Cyfrowy Polsat SA		Media		138		792
a	Dino Polska SA		Food & Staples Retailing		24		937
	Grupa Lotos SA		Oil, Gas & Consumable Fuels		52		649
a	KGHM Polska Miedz SA		Metals & Mining		71		1,023
a	mBank SA		Banks		7		374
a	PGE Polska Grupa Energetyczna SA		Electric Utilities		353		324
	Polski Koncern Naftowy Orlen SA		Oil, Gas & Consumable Fuels		159		2,132
	Polskie Gornictwo Naftowe i Gazownictwo SA		Oil, Gas & Consumable Fuels		897		743
	Powszechna Kasa Oszczednosci Bank Polski SA		Banks		442		2,407
	Powszechny Zaklad Ubezpieczen SA		Insurance		288		2,172
	Santander Bank Polska SA		Banks		16		668


							15,626

	Portugal 0.3%
	EDP- Energias de Portugal SA		Electric Utilities		1,369		5,495
	Galp Energia SGPS SA, B		Oil, Gas & Consumable Fuels		259		2,954
	Jeronimo Martins SGPS SA		Food & Staples Retailing		127		2,291


							10,740

	Russia 0.1%
	Evraz PLC		Metals & Mining		281		807
	Polymetal International PLC		Metals & Mining		178		3,045


							3,852

	South Africa 0.0%^†
	Investec PLC		Capital Markets		329		620

	Spain 4.1%
	Acciona SA		Electric Utilities		11		1,175
	ACS Actividades de Construccion y Servicios SA		Construction & Engineering		122		2,385
	Aena SME SA		Transportation Infrastructure		37		4,040
	Amadeus IT Group SA, A		IT Services		209		9,907
	Banco Bilbao Vizcaya Argentaria SA		Banks		3,390		10,845
	Banco de Sabadell SA		Banks		2,986		1,537
	Banco Santander SA		Banks		8,515		20,723
	Bankia SA		Banks		600		670
	Bankinter SA		Banks		353		1,295
	CaixaBank SA		Banks		1,859		3,468
	Cellnex Telecom SA		Diversified Telecommunication Services		141		6,413
	Corporacion Mapfre SA		Insurance		505		862
	EDP Renovaveis SA		Independent Power and Renewable Electricity Producers		81		976
	Enagas SA		Gas Utilities		128		2,541
	Endesa SA		Electric Utilities		162		3,461



222	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Spain (continued)
	Ferrovial SA		Construction & Engineering			244	$	5,855
	Grifols SA		Biotechnology			172		5,851
	Iberdrola SA		Electric Utilities			3,061		30,174
	Industria de Diseno Textil SA		Specialty Retail			538		13,967
	Inmobiliaria Colonial SA		Equity Real Estate Investment Trusts (REITs	)		160		1,516
	Merlin Properties Socimi SA		Equity Real Estate Investment Trusts (REITs	)		168		1,266
	Naturgy Energy Group SA		Gas Utilities			152		2,688
	Red Electrica Corp. SA		Electric Utilities			222		3,986
	Repsol SA		Oil, Gas & Consumable Fuels			720		6,582
	Siemens Gamesa Renewable Energy SA		Electrical Equipment			118		1,778
	Telefonica SA		Diversified Telecommunication Services			2,345		10,739
	Zardoya Otis SA		Machinery			92		621


								155,321

	Sweden 4.5%
	Alfa Laval AB		Machinery			156		2,712
	Assa Abloy AB, B		Building Products			472		8,942
	Atlas Copco AB		Machinery			195		5,767
	Atlas Copco AB, A		Machinery			330		11,121
	Boliden AB		Metals & Mining			145		2,653
	Castellum AB		Real Estate Management & Development			143		2,425
	Electrolux AB, B		Household Durables			126		1,574
a	Electrolux Professional AB, B		Machinery			126		362
	Elekta AB, B		Health Care Equipment & Supplies			176		1,460
	Epiroc AB, A		Machinery			321		3,190
	Epiroc AB, B		Machinery			199		1,977
a	EQT AB		Capital Markets			91		1,088
	Ericsson, B		Communications Equipment			1,544		12,632
	Essity AB, B		Household Products			319		9,852
a	Fastighets AB Balder, B		Real Estate Management & Development			51		1,838
	Hennes & Mauritz AB, B		Specialty Retail			444		5,736
	Hexagon AB, B		Electronic Equipment, Instruments & Components			135		5,777
	Hufvudstaden AB, A		Real Estate Management & Development			56		767
	Husqvarna AB, B		Household Durables			217		1,094
	ICA Gruppen AB		Food & Staples Retailing			40		1,687
	Industrivarden AB, A		Diversified Financial Services			111		2,169
	Industrivarden AB, C		Diversified Financial Services			88		1,722
	Investment AB Latour, B		Industrial Conglomerates			61		872
	Investor AB, A		Diversified Financial Services			68		3,095
	Investor AB, B		Diversified Financial Services			233		10,750
	Kinnevik AB, B		Diversified Financial Services			129		2,150
	L E Lundbergforetagen AB, B		Diversified Financial Services			40		1,644
	Lundin Petroleum AB		Oil, Gas & Consumable Fuels			91		1,750
	Nibe Industrier AB		Building Products			147		2,145
	Saab AB, B		Aerospace & Defense			48		925
	Sandvik AB		Machinery			553		7,884
	Securitas AB, B		Commercial Services & Supplies			183		1,985
	Skandinaviska Enskilda Banken AB, A		Banks			726		4,923
	Skandinaviska Enskilda Banken AB, C		Banks			12		92
a	Skanska AB, B		Construction & Engineering			183		2,797
	SKF AB, B		Machinery			190		2,622
	Svenska Cellulosa AB, A		Paper & Forest Products			12		121
	Svenska Cellulosa AB, B		Paper & Forest Products			297		3,011
a	Svenska Handelsbanken AB, A		Banks			763		6,403
	Svenska Handelsbanken AB, B		Banks			18		164
	Swedbank AB, A		Banks			507		5,672



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STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	Sweden (continued)
	Swedish Match AB		Tobacco		84	$	4,816
a	Swedish Orphan Biovitrum AB		Biotechnology		93		1,586
	Tele2 AB, B		Wireless Telecommunication Services		275		3,703
	Telefonaktiebolaget LM Ericsson, A		Communications Equipment		19		155
	Telia Co. AB		Diversified Telecommunication Services		1,341		4,832
	Trelleborg AB, B		Machinery		123		1,333
	Volvo AB, B		Machinery		775		9,348


							171,323

	Switzerland 17.0%
	ABB Ltd.		Electrical Equipment		913		16,046
	Adecco Group AG		Professional Services		78		3,075
a	Alcon Inc.		Health Care Equipment & Supplies		236		12,032
	Baloise Holding AG		Insurance		24		3,148
	Banque Cantonale Vaudoise		Banks		2		1,641
	Barry Callebaut AG		Food Products		2		4,010
	Chocoladefabriken Lindt & Spruengli AG		Food Products		1		8,429
	Cie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		260		14,258
	Clariant AG		Chemicals		107		1,799
	Coca-Cola HBC AG		Beverages		101		2,175
	Credit Suisse Group AG		Capital Markets		1,265		10,459
	DKSH Holding AG		Professional Services		18		893
	Dufry AG		Specialty Retail		14		435
	EMS-Chemie Holding AG		Chemicals		4		2,516
	Flughafen Zurich AG		Transportation Infrastructure		10		1,127
	Geberit AG		Building Products		18		7,925
	Georg Fischer AG		Machinery		2		1,383
	Givaudan AG		Chemicals		5		15,477
	Glencore PLC		Metals & Mining		5,774		8,863
	Helvetia Holding AG		Insurance		17		1,464
	Julius Baer Group Ltd.		Capital Markets		114		3,892
	Kuehne + Nagel International AG		Marine		28		3,845
	LafargeHolcim Ltd., B		Construction Materials		266		9,721
	Logitech International SA		Technology Hardware, Storage & Peripherals		76		3,286
	Lonza Group AG		Life Sciences Tools & Services		38		15,796
	Nestle SA		Food Products		1,485		152,636
	Novartis AG		Pharmaceuticals		1,097		90,533
	OC Oerlikon Corp. AG		Machinery		103		826
	Pargesa Holding SA, B		Diversified Financial Services		20		1,326
	Partners Group Holding AG		Capital Markets		8		5,536
	PSP Swiss Property AG		Real Estate Management & Development		20		2,495
	Roche Holding AG		Pharmaceuticals		14		4,488
	Roche Holding AG		Pharmaceuticals		358		116,201
	Schindler Holding AG		Machinery		10		2,113
	Schindler Holding AG, PC		Machinery		21		4,610
	SGS SA		Professional Services		3		6,952
	Sika AG		Chemicals		69		11,407
	Sonova Holding AG		Health Care Equipment & Supplies		28		5,047
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment		325		7,088
	Straumann Holding AG		Health Care Equipment & Supplies		5		3,728
	Sulzer AG		Machinery		10		631
	Swatch Group AG		Textiles, Apparel & Luxury Goods		14		2,799
	Swatch Group AG		Textiles, Apparel & Luxury Goods		19		748
	Swiss Life Holding AG		Insurance		17		5,788
	Swiss Prime Site AG		Real Estate Management & Development		39		3,819
	Swiss Re AG		Insurance		143		11,020



224	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



	Industry			Shares		Value
Common Stocks and Other Equity Interests (continued)
Switzerland (continued)
Swisscom AG		Diversified Telecommunication Services			13	$	6,989
Temenos AG		Software			30		3,935
UBS Group AG		Capital Markets			1,750		16,361
Vifor Pharma AG		Pharmaceuticals			24		3,318
Zurich Insurance Group AG		Insurance			75		26,619


							650,708

United Arab Emirates 0.0%^†
NMC Health PLC		Health Care Providers & Services			60		83

United Kingdom 24.0%
3i Group PLC		Capital Markets			484		4,754
Admiral Group PLC		Insurance			107		2,959
Anglo American PLC		Metals & Mining			644		11,310
Antofagasta PLC		Metals & Mining			179		1,716
Ashmore Group PLC		Capital Markets			262		1,159
Ashtead Group PLC		Trading Companies & Distributors			231		5,057
Associated British Foods PLC		Food Products			175		3,936
AstraZeneca PLC		Pharmaceuticals			678		60,664
Auto Trader Group PLC		Interactive Media & Services			472		2,570
Avast PLC		Software			245		1,195
AVEVA Group PLC		Software			33		1,430
Aviva PLC		Insurance			2,027		6,748
B&M European Value Retail SA		Multiline Retail			416		1,423
Babcock International Group PLC		Commercial Services & Supplies			132		627
BAE Systems PLC		Aerospace & Defense			1,653		10,695
Barclays PLC		Banks			8,783		10,249
Barratt Developments PLC		Household Durables			513		2,805
Bellway PLC		Household Durables			64		1,711
BHP Group PLC		Metals & Mining			1,063		16,502
BP PLC		Oil, Gas & Consumable Fuels			10,303		43,972
British American Tobacco PLC		Tobacco			1,173		40,129
British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		475		1,980
BT Group PLC		Diversified Telecommunication Services			4,447		6,501
Bunzl PLC		Trading Companies & Distributors			174		3,516
Burberry Group PLC		Textiles, Apparel & Luxury Goods			212		3,482
Centrica PLC		Multi-Utilities			3,065		1,447
Cineworld Group PLC		Entertainment			531		327
CNH Industrial NV		Machinery			495		2,833
Compass Group PLC		Hotels, Restaurants & Leisure			810		12,695
ConvaTec Group PLC		Health Care Equipment & Supplies			758		1,753
Croda International PLC		Chemicals			64		3,390
DCC PLC		Industrial Conglomerates			49		3,099
Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		52		2,108
Diageo PLC		Beverages			1,183		37,940
Direct Line Insurance Group PLC		Insurance			708		2,598
DS Smith PLC		Containers & Packaging			645		2,203
easyJet PLC		Airlines			96		680
Experian PLC		Professional Services			464		12,951
Ferguson PLC		Trading Companies & Distributors			115		7,210
Fiat Chrysler Automobiles NV		Automobiles			562		4,053
Fresnillo PLC		Metals & Mining			93		769
G4S PLC		Commercial Services & Supplies			821		940
GlaxoSmithKline PLC		Pharmaceuticals			2,534		47,589
GVC Holdings PLC		Hotels, Restaurants & Leisure			292		2,031
Halma PLC		Electronic Equipment, Instruments & Components			191		4,549
Hargreaves Lansdown PLC		Capital Markets			156		2,681



franklintempleton.com	Annual Report	225

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry			Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	Hikma Pharmaceuticals PLC		Pharmaceuticals			73	$	1,842
	Hiscox Ltd.		Insurance			150		1,720
	HomeServe PLC		Commercial Services & Supplies			144		1,889
	Howden Joinery Group PLC		Trading Companies & Distributors			302		1,917
	HSBC Holdings PLC		Banks			10,445		58,831
	IMI PLC		Machinery			136		1,260
	Imperial Brands PLC		Tobacco			484		8,983
	Inchcape PLC		Distributors			212		1,139
	Informa PLC		Media			629		3,452
	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			96		4,185
	Intermediate Capital Group PLC		Capital Markets			145		1,612
	International Consolidated Airlines Group SA		Airlines			271		723
	Intertek Group PLC		Professional Services			81		4,747
	ITV PLC		Media			1,874		1,534
	J Sainsbury PLC		Food & Staples Retailing			821		2,142
	JD Sports Fashion PLC		Specialty Retail			243		1,379
	John Wood Group PLC		Energy Equipment & Services			364		702
	Johnson Matthey PLC		Chemicals			101		2,252
	Kingfisher PLC		Specialty Retail			1,114		1,988
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		368		2,541
	Legal & General Group PLC		Insurance			3,037		7,300
	Lloyds Banking Group PLC		Banks			36,444		14,460
	London Stock Exchange Group PLC		Capital Markets			161		14,533
a	M&G PLC		Diversified Financial Services			1,343		1,875
	Marks & Spencer Group PLC		Multiline Retail			1,033		1,271
	Meggitt PLC		Aerospace & Defense			408		1,469
	Melrose Industries PLC		Electrical Equipment			2,441		2,769
	Micro Focus International PLC		Software			159		789
	Mondi PLC		Paper & Forest Products			244		4,178
	National Grid PLC		Multi-Utilities			1,804		21,174
	Next PLC		Multiline Retail			66		3,332
a	Ninety One PLC		Capital Markets			164		352
a	Ocado Group PLC		Internet & Direct Marketing Retail			227		3,434
	Pearson PLC		Media			389		2,665
	Pennon Group PLC		Water Utilities			218		2,934
	Persimmon PLC		Household Durables			175		4,159
	Phoenix Group Holdings PLC		Insurance			276		2,144
	Prudential PLC		Insurance			1,353		17,372
	Quilter PLC		Capital Markets			989		1,447
	Reckitt Benckiser Group PLC		Household Products			322		24,555
	RELX PLC		Professional Services			975		20,939
	Renishaw PLC		Electronic Equipment, Instruments & Components			19		745
	Rentokil Initial PLC		Commercial Services & Supplies			936		4,501
	Rightmove PLC		Interactive Media & Services			437		2,641
	Rolls-Royce Holdings PLC		Aerospace & Defense			886		3,742
	Royal Bank of Scotland Group PLC		Banks			2,301		3,221
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			2,137		37,600
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			1,925		32,457
	RSA Insurance Group PLC		Insurance			533		2,778
	Schroders PLC		Capital Markets			59		1,817
	Segro PLC		Equity Real Estate Investment Trusts (REITs	)		550		5,210
	Severn Trent PLC		Water Utilities			121		3,421
	Smith & Nephew PLC		Health Care Equipment & Supplies			454		8,075
	Smiths Group PLC		Industrial Conglomerates			201		3,056
	Spirax-Sarco Engineering PLC		Machinery			38		3,847
	SSE PLC		Electric Utilities			537		8,689



226	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks and Other Equity Interests (continued)
	United Kingdom (continued)
	St. James’s Place Capital PLC		Capital Markets		268	$	2,524
	Standard Chartered PLC		Banks		1,391		7,689
	Standard Life Aberdeen PLC		Capital Markets		1,203		3,340
	Subsea 7 SA		Energy Equipment & Services		125		590
	Tate & Lyle PLC		Food Products		235		1,911
	Taylor Wimpey PLC		Household Durables		1,694		2,468
	TechnipFMC PLC		Energy Equipment & Services		239		1,644
	Tesco PLC		Food & Staples Retailing		4,964		14,083
	The Berkeley Group Holdings PLC		Household Durables		62		2,779
	The Sage Group PLC		Software		555		4,073
	Travis Perkins PLC		Trading Companies & Distributors		132		1,445
	Unilever NV		Personal Products		700		34,414
	Unilever PLC		Personal Products		563		28,451
	United Utilities Group PLC		Water Utilities		342		3,828
a	Virgin Money UK PLC		Banks		641		493
	Vodafone Group PLC		Wireless Telecommunication Services		13,928		19,515
	Weir Group PLC		Machinery		137		1,225
	Whitbread PLC		Hotels, Restaurants & Leisure		70		2,630
	William Morrison Supermarkets PLC		Food & Staples Retailing		1,171		2,584
	WPP PLC		Media		626		4,280


							920,691

	United States 0.0%^†
	Carnival PLC		Hotels, Restaurants & Leisure		82		998

	Total Common Stocks and Other Equity Interests (Cost $5,149,046)						3,728,066

	Preferred Stocks 0.8%
	Germany 0.8%
d	Bayerische Motoren Werke AG, 8.989%, pfd.		Automobiles		29		1,246
d	Fuchs Petrolub SE, 2.939%, pfd.		Chemicals		36		1,277
d	Henkel AG & Co. KGaA, 2.527%, pfd.		Household Products		90		7,229
d	Porsche Automobil Holding SE, 5.714%, pfd.		Automobiles		79		3,353
d	Sartorius AG, 0.279%, pfd.		Health Care Equipment & Supplies		18		4,388
d	Volkswagen AG, 4.549%, pfd.		Automobiles		95		11,137
	Total Preferred Stocks (Cost $46,430)						28,630

	Short Term Investments 0.0%^†
	United States 0.0%^†
e,f	Institutional Fiduciary Trust Portfolio, 0.32%		Money Market Funds		1		1

	Total Investments (Cost $5,195,477) 98.1%						3,756,697
	Other Assets, less Liabilities 1.9%						74,288

	Net Assets 100.0%					$	3,830,985

See abbreviations on page 351.

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the aggregate value of these securities was $20,504, representing 0.5% of net assets.

^dVariable rate security. The rate shown represents the yield at period end.



franklintempleton.com	Annual Report	227

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Europe Hedged ETF (continued)

^eSee Note 5 regarding investments in affiliated management investment companies.

^fThe rate shown is the annualized seven-day effective yield at period end.

At March 31, 2020 the Fund had the following forward exchange contracts outstanding. See Note 1(c).


Forward Exchange Contracts

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Danish Krone		BOFA		Buy		926,800	$	136,280		4/02/20	$	—	$	(2	)
Danish Krone		BOFA		Sell		926,800		136,503		4/02/20		225		—
Euro		BOFA		Buy		664,933		729,609		4/02/20		—		(10	)
Euro		HSBK		Buy		664,933		729,611		4/02/20		—		(13	)
Euro		UBSW		Buy		664,933		729,613		4/02/20		—		(14	)
Euro		BOFA		Sell		664,933		731,770		4/02/20		2,171		—
Euro		HSBK		Sell		664,933		731,646		4/02/20		2,048		—
Euro		UBSW		Sell		664,933		731,756		4/02/20		2,158		—
Great British Pound		BOFA		Buy		877,200		1,033,210		4/02/20		54,474		—
Great British Pound		DBAB		Buy		877,200		1,087,684		4/02/20		—		—
Great British Pound		BOFA		Sell		877,200		1,121,385		4/02/20		33,701		—
Great British Pound		DBAB		Sell		877,200		1,033,210		4/02/20		—		(54,474	)
Norwegian Krone		BOFA		Buy		419,200		39,921		4/02/20		—		(1	)
Norwegian Krone		BOFA		Sell		419,200		44,264		4/02/20		4,344		—
Polish Zloty		BOFA		Buy		77,700		18,707		4/02/20		—		—
Polish Zloty		BOFA		Sell		77,700		19,708		4/02/20		1,001		—
Swedish Krona		BOFA		Buy		1,868,100		188,553		4/02/20		—		(3	)
Swedish Krona		BOFA		Sell		1,868,100		192,964		4/02/20		4,413		—
Swiss Franc		MSCO		Buy		640,200		661,688		4/02/20		—		(17	)
Swiss Franc		MSCO		Sell		640,200		662,795		4/02/20		1,123		—
Danish Krone		BOFA		Sell		890,400		131,042		5/04/20		—		(34	)
Great British Pound		DBAB		Sell		759,100		941,880		5/04/20		—		(4	)
Euro		BOFA		Sell		561,700		617,070		5/05/20		—		(38	)
Euro		HSBK		Sell		561,700		617,067		5/05/20		—		(41	)
Euro		UBSW		Sell		561,700		617,117		5/05/20		9		—
Norwegian Krone		BOFA		Sell		364,500		34,711		5/05/20		—		(6	)
Polish Zloty		BOFA		Sell		66,300		15,956		5/05/20		—		(2	)
Swedish Krona		BOFA		Sell		1,676,000		169,268		5/05/20		—		(20	)
Swiss Franc		MSCO		Sell		617,200		638,893		5/05/20		—		(137	)

Total Forward Exchange Contracts											$	105,667	$	(54,816	)

Net unrealized appreciation (depreciation)													$	50,851

^aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

EURO STOXX 50 Index

Long

60,283

6/19/20

3,553

*As of period end.

See note 8 regarding derivative information.



228	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE France ETF



	Year Ended March 31,

	2020			2019			2018^a
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.86		$	25.33		$	25.32


Income from investment operations^b:

Net investment income^c		0.52			0.70			0.08

Net realized and unrealized gains (losses)		(4.47	)		(1.48	)		(0.01	)


Total from investment operations		(3.95	)		(0.78	)		0.07


Less distributions from net investment income		(0.57	)		(0.69	)		(0.06	)


Net asset value, end of year	$	19.34		$	23.86		$	25.33


Total return^d		(17.08)%			(3.07)%			0.26%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		2.14%			2.90%			0.78%

Supplemental data

Net assets, end of year (000’s)		$8,702			$2,386			$2,533

Portfolio turnover rate^f		2.60%	^g		5.80%			1.90%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 2.60%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	229

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE France ETF



		Industry			Shares		Value
	Common Stocks 99.8%
	France 97.4%
	Accor SA		Hotels, Restaurants & Leisure			1,368	$	37,526
	Aeroports de Paris SA		Transportation Infrastructure			207		19,863
a	Air France-KLM		Airlines			1,386		7,753
	Air Liquide SA		Chemicals			3,357		429,677
	Airbus SE		Aerospace & Defense			3,996		260,183
b	ALD SA, 144A		Road & Rail			594		5,214
	Alstom SA		Machinery			1,323		55,366
	Amundi SA		Capital Markets			414		24,462
	Arkema SA		Chemicals			522		36,084
	Atos SE		IT Services			684		46,337
	AXA SA		Insurance			13,950		241,661
	Biomerieux		Health Care Equipment & Supplies			297		33,436
	BNP Paribas SA		Banks			7,857		237,166
	Bollore		Entertainment			7,101		19,557
	Bouygues SA		Construction & Engineering			1,548		45,385
	Bureau Veritas SA		Professional Services			1,989		37,778
	Capgemini SE		IT Services			1,143		96,570
	Carrefour SA		Food & Staples Retailing			4,140		65,482
	Casino Guichard-Perrachon SA		Food & Staples Retailing			396		15,256
	Cie Generale des Etablissements Michelin SCA		Auto Components			1,278		113,669
	CNP Assurances		Insurance			1,143		11,187
	Compagnie de Saint-Gobain		Building Products			3,519		85,584
	Covivio		Equity Real Estate Investment Trusts (REITs	)		333		18,762
	Credit Agricole SA		Banks			8,289		60,846
	Danone SA		Food Products			4,338		279,119
	Dassault Aviation SA		Aerospace & Defense			18		14,793
	Dassault Systemes		Software			954		141,315
	Edenred		IT Services			1,755		73,349
	EDF SA		Electric Utilities			3,726		29,379
	Eiffage SA		Construction & Engineering			540		38,217
	Elis SA		Commercial Services & Supplies			1,584		15,017
	Engie SA		Multi-Utilities			12,024		124,176
	EssilorLuxottica SA		Textiles, Apparel & Luxury Goods			2,133		230,018
	Eurazeo SE		Diversified Financial Services			306		13,806
	Eutelsat Communications SA		Media			1,332		13,923
	Faurecia SE		Auto Components			531		15,906
	Gecina SA		Equity Real Estate Investment Trusts (REITs	)		378		50,062
	Getlink SE		Transportation Infrastructure			3,267		39,396
	Hermes International		Textiles, Apparel & Luxury Goods			225		155,239
	ICADE		Equity Real Estate Investment Trusts (REITs	)		234		18,525
	Iliad SA		Diversified Telecommunication Services			117		15,874
	Imerys SA		Construction Materials			261		6,564
	Ingenico Group SA		Electronic Equipment, Instruments & Components			450		47,865
	Ipsen SA		Pharmaceuticals			252		13,046
	JCDecaux SA		Media			522		9,451
	Kering SA		Textiles, Apparel & Luxury Goods			540		281,978
	Klepierre SA		Equity Real Estate Investment Trusts (REITs	)		1,377		26,547
	L’Oreal SA		Personal Products			1,746		457,684
	Legrand SA		Electrical Equipment			1,935		124,163
	LVMH Moet Hennessy Louis Vuitton SE		Textiles, Apparel & Luxury Goods			1,809		671,798
	Natixis SA		Capital Markets			6,066		19,748
	Orange SA		Diversified Telecommunication Services			13,914		170,000
	Orpea		Health Care Providers & Services			351		36,684
	Pernod Ricard SA		Beverages			1,530		217,320
	Peugeot SA		Automobiles			3,924		52,378
	Plastic Omnium SA		Auto Components			405		5,695
	Publicis Groupe		Media			1,575		45,140
	Remy Cointreau SA		Beverages			180		19,681



230	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE France ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	France (continued)
	Renault SA		Automobiles		1,323	$	25,706
	Rexel SA		Trading Companies & Distributors		2,196		16,337
	Rubis SCA		Gas Utilities		657		27,437
	Safran SA		Aerospace & Defense		2,322		204,182
	Sanofi		Pharmaceuticals		7,875		692,477
	Sartorius Stedim Biotech		Life Sciences Tools & Services		171		34,336
	Schneider Electric SE		Electrical Equipment		3,807		328,247
	SCOR SE		Insurance		1,125		24,787
	SEB SA		Household Durables		198		24,658
	Societe Generale SA		Banks		5,598		94,274
	Sodexo SA		Hotels, Restaurants & Leisure		630		42,610
	Suez		Multi-Utilities		2,709		27,572
	Teleperformance		Professional Services		423		88,093
	Thales SA		Aerospace & Defense		720		60,342
	Total SA		Oil, Gas & Consumable Fuels		17,334		673,108
a	Ubisoft Entertainment SA		Entertainment		657		48,430
	Valeo SA		Auto Components		1,710		28,614
	Veolia Environnement SA		Multi-Utilities		3,627		77,505
	Vinci SA		Construction & Engineering		3,375		279,223
	Vivendi SA		Entertainment		5,850		125,329
	Wendel SA		Diversified Financial Services		198		15,816
a,c	Worldline SA, Reg S		IT Services		945		55,682


							8,473,425

	Luxembourg 0.6%
	Eurofins Scientific SE		Life Sciences Tools & Services		81		40,084
	SES SA, IDR		Media		2,538		14,893


							54,977

	Netherlands 0.4%
c	Euronext NV, Reg S		Capital Markets		441		32,808

	Switzerland 1.1%
	STMicroelectronics NV		Semiconductors & Semiconductor Equipment		4,590		100,098

	United Kingdom 0.3%
	TechnipFMC PLC		Energy Equipment & Services		3,321		22,840

	Total Investments (Cost $11,454,628) 99.8%						8,684,148
	Other Assets, less Liabilities 0.2%						17,361

	Net Assets 100.0%					$	8,701,509

See Abbreviations on page 351.

^aNon-income producing.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the value of this security was $5,214, representing 0.1% of net assets.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the aggregate value of these securities was $88,490, representing 1.0% of net assets.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	231

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Germany ETF



	Year Ended March 31,

	2020			2019			2018^a
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	20.70		$	24.60		$	25.55


Income from investment operations^b:

Net investment income^c		0.52			0.53			0.05

Net realized and unrealized gains (losses)		(3.92	)		(3.83	)		(1.00	)


Total from investment operations		(3.40	)		(3.30	)		(0.95	)


Less distributions from net investment income		(0.57	)		(0.60	)		—


Net asset value, end of year	$	16.73		$	20.70		$	24.60


Total return^d		(17.00)%			(13.72)%			(3.72)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		2.46%			2.44%			0.52%

Supplemental data

Net assets, end of year (000’s)		$4,182			$4,140			$2,460

Portfolio turnover rate^f		5.74%	^g		10.75%			1.75%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 5.74%.



232	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Germany ETF



		Industry		Shares		Value
	Common Stocks 94.3%
	Germany 93.3%
	1&1 Drillisch AG		Wireless Telecommunication Services		200	$	4,170
	Adidas AG		Textiles, Apparel & Luxury Goods		815		184,128
	Allianz SE		Insurance		1,760		302,960
	Aroundtown SA		Real Estate Management & Development		5,095		25,459
	BASF SE		Chemicals		3,880		183,683
	Bayer AG		Pharmaceuticals		4,165		241,527
	Bayerische Motoren Werke AG		Automobiles		1,360		70,308
	Bechtle AG		IT Services		115		14,751
	Beiersdorf AG		Personal Products		420		42,656
	Brenntag AG		Trading Companies & Distributors		655		24,314
	Carl Zeiss Meditec AG		Health Care Equipment & Supplies		155		15,026
	Commerzbank AG		Banks		4,390		15,937
	Continental AG		Auto Components		460		33,116
	Covestro AG		Chemicals		720		22,018
	CTS Eventim AG & Co. KGaA		Entertainment		250		11,296
	Daimler AG		Automobiles		3,415		103,120
a	Delivery Hero SE		Internet & Direct Marketing Retail		595		44,369
	Deutsche Bank AG		Capital Markets		8,660		56,719
	Deutsche Boerse AG		Capital Markets		775		106,296
	Deutsche Lufthansa AG		Airlines		995		9,348
	Deutsche Post AG		Air Freight & Logistics		4,130		112,271
	Deutsche Telekom AG		Diversified Telecommunication Services		13,680		177,333
	Deutsche Wohnen AG		Real Estate Management & Development		1,515		57,700
b	DWS Group GmbH & Co. KGaA, 144A		Capital Markets		150		3,710
	E.ON SE		Multi-Utilities		9,190		95,200
	Evonik Industries AG		Chemicals		805		16,844
	Fielmann AG		Specialty Retail		105		6,123
	Fraport AG Frankfurt Airport Services Worldwide		Transportation Infrastructure		150		6,073
	Fresenius Medical Care AG & Co. KGaA		Health Care Providers & Services		885		58,458
	Fresenius SE and Co. KGaA		Health Care Providers & Services		1,720		64,035
	Fuchs Petrolub SE		Chemicals		145		4,646
	GEA Group AG		Machinery		700		14,382
	Grenkeleasing AG		Consumer Finance		110		6,487
	Hannover Rueck SE		Insurance		255		36,654
	Hapag-Lloyd AG		Marine		115		8,984
	HeidelbergCement AG		Construction Materials		630		27,022
	Hella GmbH & Co. KGaA		Auto Components		190		5,537
	Henkel AG & Co. KGaA		Household Products		430		31,777
	Hochtief AG		Construction & Engineering		85		5,643
	Hugo Boss AG		Textiles, Apparel & Luxury Goods		265		6,720
	Infineon Technologies AG		Semiconductors & Semiconductor Equipment		5,275		77,733
	KION Group AG		Machinery		295		12,766
	Knorr-Bremse AG		Machinery		205		18,184
	Lanxess AG		Chemicals		350		13,987
	LEG Immobilien AG		Real Estate Management & Development		290		32,679
	Merck KGaA		Pharmaceuticals		550		56,498
	METRO AG		Food & Staples Retailing		715		6,173
	MTU Aero Engines AG		Aerospace & Defense		225		32,922
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Insurance		610		123,222
	Nemetschek AG		Software		230		11,427
a	Osram Licht AG		Electrical Equipment		310		11,055
	ProSiebenSat.1 Media SE		Media		825		6,545
	Puma SE		Textiles, Apparel & Luxury Goods		345		20,593
	Rational AG		Machinery		15		7,963
	Rheinmetall AG		Industrial Conglomerates		180		12,652
a,b	Rocket Internet SE, 144A		Internet & Direct Marketing Retail		240		4,851
	RWE AG		Multi-Utilities		2,425		63,754



franklintempleton.com	Annual Report	233

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Germany ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Germany (continued)
	SAP SE		Software		4,100	$	462,469
c	Scout24 AG, Reg S		Interactive Media & Services		455		27,334
	Siemens AG		Industrial Conglomerates		3,205		272,438
	Siemens Healthineers AG		Health Care Equipment & Supplies		550		21,753
	Suedzucker AG		Food Products		335		4,804
	Symrise AG		Chemicals		535		49,897
a	Talanx AG		Insurance		160		5,435
a	TeamViewer AG		Software		410		16,371
	Telefonica Deutschland Holding AG		Diversified Telecommunication Services		2,770		6,866
a	thyssenkrupp AG		Metals & Mining		1,970		10,306
a	Traton SE		Machinery		215		3,005
	Uniper SE		Independent Power and Renewable Electricity Producers		825		20,359
	United Internet AG		Diversified Telecommunication Services		460		13,562
a	Varta AG		Electrical Equipment		60		4,325
	Volkswagen AG		Automobiles		135		17,983
	Vonovia SE		Real Estate Management & Development		2,300		113,212
	Wacker Chemie AG		Chemicals		65		3,246
	Wirecard AG		IT Services		485		55,691
a	Zalando SE		Internet & Direct Marketing Retail		630		24,187


							3,903,047

	Luxembourg 0.1%
	RTL Group SA		Media		165		5,562

	Netherlands 0.9%
a	QIAGEN NV		Life Sciences Tools & Services		930		37,358

	Total Common Stocks (Cost $5,351,524)						3,945,967

	Preferred Stocks 5.6%
	Germany 5.6%
d	Bayerische Motoren Werke AG, 8.989%, pfd.		Automobiles		240		10,313
d	Fuchs Petrolub SE, 2.939%, pfd.		Chemicals		290		10,284
d	Henkel AG & Co. KGaA, 2.527%, pfd.		Household Products		740		59,436
d	Porsche Automobil Holding SE, 5.714%, pfd.		Automobiles		650		27,587
d	Sartorius AG, 0.279%, pfd.		Health Care Equipment & Supplies		145		35,352
d	Volkswagen AG, 4.549%, pfd.		Automobiles		775		90,854

	Total Preferred Stocks (Cost $330,720)						233,826

	Total Investments (Cost $5,682,244) 99.9%						4,179,793
	Other Assets, less Liabilities 0.1%						2,307

	Net Assets 100.0%					$	4,182,100

See Abbreviations on page 351.

^aNon-income producing.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the value of this security was $27,334, representing 0.7% of net assets.

^dVariable rate security. The rate shown represents the yield at period end.



234	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Hong Kong ETF



	Year Ended March 31,

	2020			2019			2018^a
Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	26.82		$	26.17		$	25.30


Income from investment operations^b:

Net investment income^c		0.77			0.66			0.16

Net realized and unrealized gains (losses)		(6.25	)		0.59			0.78


Total from investment operations		(5.48	)		1.25			0.94


Less distributions from net investment income		(0.76	)		(0.60	)		(0.07	)


Net asset value, end of year	$	20.58		$	26.82		$	26.17


Total return^d		(20.90)%			4.97%			3.70%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		3.10%			2.67%			1.49%

Supplemental data

Net assets, end of year (000’s)		$15,433			$20,118			$7,852

Portfolio turnover rate^f		5.99%	^g		5.33%			0.93%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 5.99%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	235

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS, March 31, 2020

Franklin FTSE Hong Kong ETF



		Industry			Shares		Value
	Common Stocks 99.4%
	Cambodia 0.3%
	NagaCorp Ltd.		Hotels, Restaurants & Leisure			50,000	$	51,026

	China 9.0%
	AAC Technologies Holdings Inc.		Electronic Equipment, Instruments & Components			22,500		116,696
a	Budweiser Brewing Co. APAC Ltd.		Beverages			39,500		101,924
	China Mengniu Dairy Co. Ltd.		Food Products			90,000		312,932
	China Travel International Investment Hong Kong Ltd.		Hotels, Restaurants & Leisure			80,000		10,012
a	FIH Mobile Ltd.		Electronic Equipment, Instruments & Components			105,000		11,786
	Kerry Logistics Network Ltd.		Air Freight & Logistics			18,500		22,937
	Lenovo Group Ltd.		Technology Hardware, Storage & Peripherals			250,000		134,178
	Minth Group Ltd.		Auto Components			23,050		49,425
a	MMG Ltd.		Metals & Mining			80,000		11,457
	Nexteer Automotive Group Ltd.		Auto Components			25,000		12,547
a	Semiconductor Manufacturing International Corp.		Semiconductors & Semiconductor Equipment			102,500		161,336
	Shougang Fushan Resources Group Ltd.		Metals & Mining			120,000		21,830
	Shui On Land Ltd.		Real Estate Management & Development			115,000		19,288
	SITC International Holdings Co. Ltd.		Marine			40,000		37,415
	Tingyi Cayman Islands Holding Corp.		Food Products			62,000		101,428
	Towngas China Co. Ltd.		Gas Utilities			35,000		17,340
	Uni-President China Holdings Ltd.		Food Products			40,000		38,808
	Want Want China Holdings Ltd.		Food Products			185,000		134,139
	Xinyi Solar Holdings Ltd.		Semiconductors & Semiconductor Equipment			130,000		73,630


								1,389,108

	Hong Kong 83.8%
	AIA Group Ltd.		Insurance			361,000		3,267,253
	ASM Pacific Technology Ltd.		Semiconductors & Semiconductor Equipment			10,000		93,667
	BOC Hong Kong (Holdings) Ltd.		Banks			120,000		332,090
	Cafe de Coral Holdings Ltd.		Hotels, Restaurants & Leisure			10,000		16,411
	Cathay Pacific Airways Ltd.		Airlines			20,000		21,417
	Champion REIT		Equity Real Estate Investment Trusts (REITs	)		65,000		39,247
	Chow Tai Fook Jewellery Co. Ltd.		Specialty Retail			36,000		25,499
	CK Asset Holdings Ltd.		Real Estate Management & Development			90,000		492,910
	CK Hutchison Holdings Ltd.		Industrial Conglomerates			89,000		600,537
	CK Infrastructure Holdings Ltd.		Electric Utilities			20,500		108,968
	CLP Holdings Ltd.		Electric Utilities			54,500		502,748
	Dah Sing Banking Group Ltd.		Banks			12,000		10,450
	Dah Sing Financial Group		Banks			4,000		11,379
	Dairy Farm International Holdings Ltd.		Food & Staples Retailing			10,000		46,000
	Guotai Junan International holdings Ltd.		Capital Markets			105,000		13,818
	Haitong International Securities Group Ltd.		Capital Markets			85,000		21,714
	Hang Lung Group Ltd.		Real Estate Management & Development			30,000		63,244
	Hang Lung Properties Ltd.		Real Estate Management & Development			67,000		136,059
	Hang Seng Bank Ltd.		Banks			24,000		410,275
	Henderson Land Development Co. Ltd.		Real Estate Management & Development			43,000		163,936
	Hong Kong and China Gas Co. Ltd.		Gas Utilities			327,000		539,171
	Hong Kong Exchanges and Clearing Ltd.		Capital Markets			42,000		1,266,898
	Hongkong Land Holdings Ltd.		Real Estate Management & Development			38,500		144,375
	Huabao International Holdings Ltd.		Chemicals			30,000		10,915
	Hutchison Telecommunications Hong Kong Holdings Ltd.		Wireless Telecommunication Services			40,000		6,606
	Hysan Development Co. Ltd.		Real Estate Management & Development			20,000		65,025
	Jardine Matheson Holdings Ltd.		Industrial Conglomerates			7,000		350,000
	Jardine Strategic Holdings Ltd.		Industrial Conglomerates			6,000		133,200
	Johnson Electric Holdings Ltd.		Electrical Equipment			12,500		19,675
	Kerry Properties Ltd.		Real Estate Management & Development			20,000		52,768
	Li & Fung Ltd.		Textiles, Apparel & Luxury Goods			190,000		25,004



236	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Hong Kong ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Hong Kong (continued)
	Lifestyle International Holdings Ltd.		Multiline Retail			15,000	$	12,599
	Link REIT		Equity Real Estate Investment Trusts (REITs	)		69,000		584,874
	Melco International Development Ltd.		Hotels, Restaurants & Leisure			26,000		37,704
	MTR Corp. Ltd.		Road & Rail			47,500		245,439
	New World Development Co. Ltd.		Real Estate Management & Development			190,000		204,441
	NWS Holdings Ltd.		Industrial Conglomerates			47,000		48,329
	PCCW Ltd.		Diversified Telecommunication Services			140,000		77,127
	Power Assets Holdings Ltd.		Electric Utilities			45,500		272,088
	Sa Sa International Holdings Ltd.		Specialty Retail			40,000		5,986
	Samsonite International SA		Textiles, Apparel & Luxury Goods			43,500		41,418
	Shangri-La Asia Ltd.		Hotels, Restaurants & Leisure			40,000		27,094
	Shun Tak Holdings Ltd.		Industrial Conglomerates			60,000		20,514
	Sino Land Co. Ltd.		Real Estate Management & Development			110,000		139,648
	Sun Art Retail Group Ltd.		Food & Staples Retailing			72,500		107,568
	Sun Hung Kai Properties Ltd.		Real Estate Management & Development			47,500		626,314
	Swire Pacific Ltd., A		Real Estate Management & Development			16,500		106,333
	Swire Pacific Ltd., B		Real Estate Management & Development			30,000		30,693
	Swire Properties Ltd.		Real Estate Management & Development			35,000		98,440
	Techtronic Industries Co. Ltd.		Machinery			41,500		269,317
	Television Broadcasts Ltd.		Media			9,500		11,828
	The Bank of East Asia Ltd.		Banks			42,000		90,384
	The Wharf Holdings Ltd.		Real Estate Management & Development			30,000		53,181
	United Energy Group Ltd.		Oil, Gas & Consumable Fuels			250,000		48,381
	Vitasoy International Holdings Ltd.		Food Products			27,000		81,861
	VTech Holdings Ltd.		Communications Equipment			5,500		39,773
b	WH Group Ltd., Reg S		Food Products			280,000		261,905
	Wharf Real Estate Investment Co. Ltd.		Real Estate Management & Development			35,000		144,048
	Wheelock and Co. Ltd.		Real Estate Management & Development			21,000		143,325
	Xinyi Glass Holdings Ltd.		Auto Components			70,000		80,378
	Yue Yuen Industrial Holdings Ltd.		Textiles, Apparel & Luxury Goods			22,500		34,486


								12,936,735

	Indonesia 0.1%
	First Pacific Co. Ltd.		Diversified Financial Services			80,000		14,863

	Italy 0.3%
	PRADA SpA		Textiles, Apparel & Luxury Goods			17,000		49,788

	Luxembourg 0.1%
	L’Occitane International SA		Personal Products			15,000		21,868

	Macau 5.4%
	Galaxy Entertainment Group Ltd.		Hotels, Restaurants & Leisure			71,000		378,775
a	Macau Legend Development Ltd.		Hotels, Restaurants & Leisure			55,000		6,244
	MGM China Holdings Ltd.		Hotels, Restaurants & Leisure			24,000		24,555
	Sands China Ltd.		Hotels, Restaurants & Leisure			80,000		293,127
	SJM Holdings Ltd.		Hotels, Restaurants & Leisure			60,000		50,704
	Wynn Macau Ltd.		Hotels, Restaurants & Leisure			48,000		72,952


								826,357

	Singapore 0.3%
	BOC Aviation Ltd.		Trading Companies & Distributors			7,000		44,795

	Taiwan 0.1%
	FIT Hon Teng Ltd.		Electronic Equipment, Instruments & Components			35,000		7,496

	Total Investments (Cost $18,647,955) 99.4%						15,342,036
	Other Assets, less Liabilities 0.6%							91,281

	Net Assets 100.0%						$	15,433,317

See Abbreviations on page 351.



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Hong Kong ETF (continued)

^aNon-income producing.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

HKG Mini Hang Seng Index

Long

61,206

4/28/20

5,668

*As	of period end.

See Note 8 regarding other derivative information.



238	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE India ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.36		$	22.74		$	23.72


Income from investment operations^b:

Net investment income^c		0.26			0.29			0.09

Net realized and unrealized gains (losses)		(7.43	)		0.53			(1.07	)


Total from investment operations		(7.17	)		0.82			(0.98	)


Less distributions from net investment income		(0.21	)		(0.20	)		—


Net asset value, end of year	$	15.98		$	23.36		$	22.74


Total return^d		(30.98)%			3.66%			(4.13)%

Ratios to average net assets^e

Total expenses		0.19%			0.19%			0.19%

Net investment income		1.20%			1.33%			2.78%

Supplemental data

Net assets, end of year (000’s)		$8,790			$7,007			$2,274

Portfolio turnover rate^f		36.55%	^g		8.03%			1.59%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 6.83%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	239

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE India ETF



		Industry			Shares		Value
	Common Stocks 99.7%
	India 99.7%
a	3M India Ltd.		Industrial Conglomerates			44	$	10,951
	ABB India Ltd.		Electrical Equipment			1,100		13,601
a	ABB Power Products & Systems India Ltd.		Electrical Equipment			291		2,884
	ACC Ltd.		Construction Materials			990		12,674
	Adani Enterprises Ltd.		Trading Companies & Distributors			5,819		10,584
	Adani Ports And Special Economic Zone Ltd.		Transportation Infrastructure			15,147		50,316
a	Adani Power Ltd.		Independent Power and Renewable Electricity Producers			20,405		7,485
a	Aditya Birla Capital Ltd.		Diversified Financial Services			12,155		6,772
	Alkem Laboratories Ltd.		Pharmaceuticals			891		27,393
	Ambuja Cements Ltd.		Construction Materials			17,050		35,091
	Ashok Leyland Ltd.		Machinery			25,861		14,716
	Asian Paints Ltd.		Chemicals			6,336		139,574
	AU Small Finance Bank Ltd.		Banks			3,278		21,897
	Aurobindo Pharma Ltd.		Pharmaceuticals			5,841		31,899
^a	Avenue Supermarts Ltd.		Food & Staples Retailing			2,684		77,609
	Axis Bank Ltd.		Banks			43,483		217,843
	Bajaj Auto Ltd.		Automobiles			1,914		51,166
	Bajaj Finance Ltd.		Consumer Finance			3,971		116,309
	Bajaj Finserv Ltd.		Insurance			847		51,404
	Bajaj Holdings & Investment Ltd.		Diversified Financial Services			594		14,122
	Bandhan Bank Ltd		Banks			13,838		37,270
a	Bank of Baroda		Banks			20,394		14,436
a	Bank of India		Banks			6,611		2,818
	Bata India Ltd.		Textiles, Apparel & Luxury Goods			682		11,098
	Berger Paints India Ltd.		Chemicals			5,126		33,740
	Bharat Electronics Ltd.		Aerospace & Defense			12,914		12,709
	Bharat Forge Ltd.		Auto Components			4,092		12,709
	Bharat Heavy Electricals Ltd.		Electrical Equipment			18,216		5,008
	Bharat Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels			22,055		92,388
a	Bharti Airtel Ltd.		Wireless Telecommunication Services			38,489		224,316
	Bharti Infratel Ltd.		Diversified Telecommunication Services			19,019		40,225
	Biocon Ltd.		Biotechnology			6,270		22,423
	Bosch Ltd.		Auto Components			154		19,126
	Britannia Industries Ltd.		Food Products			1,276		45,354
	Cadila Healthcare Ltd.		Pharmaceuticals			5,456		19,274
a	Canara Bank Ltd.		Banks			6,424		7,685
	Castrol India Ltd.		Chemicals			10,659		14,012
	Cholamandalam Investment and Finance Co. Ltd.		Consumer Finance			4,279		8,646
	Cipla Ltd.		Pharmaceuticals			7,128		39,842
	Coal India Ltd.		Oil, Gas & Consumable Fuels			32,065		59,361
	Colgate-Palmolive India Ltd.		Personal Products			1,452		24,044
	Container Corp. of India Ltd.		Road & Rail			4,554		19,964
	Cummins India Ltd.		Machinery			1,485		6,413
	Dabur India Ltd.		Personal Products			11,715		69,693
a	Dalmia Bharat Ltd.		Construction Materials			1,023		6,634
	Divi’s Laboratories Ltd.		Life Sciences Tools & Services			1,760		46,275
	DLF Ltd.		Real Estate Management & Development			13,090		23,783
	Dr Reddy’s Laboratories Ltd.		Pharmaceuticals			1,793		73,964
	Eicher Motors Ltd.		Automobiles			297		51,413
	Emami Ltd.		Personal Products			2,376		5,338
a	Embassy Office Parks REIT		Equity Real Estate Investment Trusts (REITs	)		3,600		16,691
	Exide Industries Ltd.		Auto Components			4,543		7,903
	Federal Bank Ltd.		Banks			32,373		17,566
a	Future Retail Ltd.		Multiline Retail			4,774		4,941
	GAIL India Ltd.		Gas Utilities			24,035		24,321
	Gillette India Ltd.		Personal Products			176		12,726



240	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE India ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	India (continued)
	GlaxoSmithKline Consumer Healthcare Ltd.		Food Products		220	$	29,006
	Glenmark Pharmaceuticals Ltd.		Pharmaceuticals		3,025		8,231
a	GMR Infrastructure Ltd.		Transportation Infrastructure		31,856		6,885
	Godrej Consumer Products Ltd.		Personal Products		8,140		56,043
	Godrej Industries Ltd.		Industrial Conglomerates		1,551		5,805
a	Godrej Properties Ltd.		Real Estate Management & Development		1,331		10,614
	Grasim Industries Ltd.		Construction Materials		7,117		44,790
	Havell’s India Ltd.		Electrical Equipment		5,313		33,742
	HCL Technologies Ltd.		IT Services		23,870		137,696
	HDFC Asset Management Co. Ltd.		Capital Markets		957		26,727
a	HDFC Life Insurance Co. Ltd.		Insurance		12,221		71,297
a,b	Hemisphere Properties India Ltd.		Real Estate Management & Development		2,002		4,414
	Hero Motocorp Ltd.		Automobiles		2,167		45,730
	Hindalco Industries Ltd.		Metals & Mining		19,756		24,992
	Hindustan Petroleum Corp. Ltd.		Oil, Gas & Consumable Fuels		13,431		33,750
	Hindustan Unilever Ltd.		Household Products		15,642		475,248
a	Hindustan Zinc Ltd.		Metals & Mining		5,192		10,665
	Housing Development Finance Corp. Ltd.		Thrifts & Mortgage Finance		38,005		820,422
	ICICI Bank Ltd.		Banks		14,212		60,820
c,d	ICICI Lombard General Insurance Co. Ltd., 144A, Reg S		Insurance		4,015		57,406
c	ICICI Prudential Life Insurance Co. Ltd., Reg S		Insurance		6,732		31,653
a	IDFC First Bank Ltd.		Banks		51,568		14,383
	IDFC Ltd.		Diversified Financial Services		5,896		1,157
	Indiabulls Housing Finance Ltd.		Thrifts & Mortgage Finance		7,128		9,116
	Indian Oil Corp. Ltd.		Oil, Gas & Consumable Fuels		46,915		50,635
	Info Edge India Ltd.		Interactive Media & Services		1,353		36,396
	Infosys Ltd.		IT Services		81,708		692,859
c	InterGlobe Aviation Ltd., Reg S		Airlines		2,134		30,074
	ITC Ltd.		Tobacco		65,010		147,548
a	Jindal Steel & Power Ltd.		Metals & Mining		8,943		9,717
	JSW Energy Ltd.		Independent Power and Renewable Electricity Producers		8,569		4,837
	JSW Steel Ltd.		Metals & Mining		26,015		50,293
	Jubilant Foodworks Ltd.		Hotels, Restaurants & Leisure		1,595		31,023
	Kansai Nerolac Paints Ltd.		Chemicals		2,860		14,648
	L&T Finance Holdings Ltd.		Diversified Financial Services		10,538		7,146
c	Larsen & Toubro Infotech Ltd., Reg S		IT Services		627		11,842
	Larsen & Toubro Ltd.		Construction & Engineering		7,447		79,588
	LIC Housing Finance Ltd.		Thrifts & Mortgage Finance		5,434		16,902
	Lupin Ltd.		Pharmaceuticals		4,906		38,239
	Mahindra & Mahindra Financial Services Ltd.		Consumer Finance		6,501		12,649
	Mahindra & Mahindra Ltd.		Automobiles		12,859		48,435
	Mangalore Refinery and Petrochemicals Ltd.		Oil, Gas & Consumable Fuels		4,400		1,346
	Marico Ltd.		Personal Products		9,977		36,248
	Maruti Suzuki India Ltd.		Automobiles		2,673		151,519
	Motherson Sumi Systems Ltd.		Auto Components		20,856		16,831
	Mphasis Ltd.		IT Services		1,617		14,202
	MRF Ltd.		Auto Components		22		16,915
	Muthoot Finance Ltd.		Consumer Finance		2,123		17,207
	Nestle India Ltd.		Food Products		506		109,028
	NHPC Ltd.		Independent Power and Renewable Electricity Producers		53,570		14,127
	Nippon Life India Asset Management Ltd.		Capital Markets		3,234		10,653
	NMDC Ltd.		Metals & Mining		16,280		17,216
	NTPC Ltd.		Independent Power and Renewable Electricity Producers		52,481		58,411
	Oberoi Realty Ltd.		Real Estate Management & Development		1,925		8,442



franklintempleton.com	Annual Report	241

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE India ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	India (continued)
	Oil & Natural Gas Corp. Ltd.		Oil, Gas & Consumable Fuels		66,726	$	60,242
	Oil India Ltd.		Oil, Gas & Consumable Fuels		5,819		6,357
a	Oracle Financial Services Software Ltd.		Software		473		12,653
	Page Industries Ltd.		Textiles, Apparel & Luxury Goods		110		24,666
	Petronet LNG Ltd.		Oil, Gas & Consumable Fuels		11,605		30,634
	Pidilite Industries Ltd.		Chemicals		2,695		48,320
	Piramal Enterprises Ltd.		Pharmaceuticals		2,299		28,551
	Power Finance Corp., Ltd.		Diversified Financial Services		14,025		17,047
	Power Grid Corp. of India Ltd.		Electric Utilities		40,469		85,109
a	Punjab National Bank Ltd.		Banks		21,197		9,064
	Rajesh Exports Ltd.		Textiles, Apparel & Luxury Goods		3,069		22,217
c	RBL Bank Ltd., Reg S		Banks		8,283		14,836
	REC Ltd.		Diversified Financial Services		14,432		16,931
	Reliance Industries Ltd.		Oil, Gas & Consumable Fuels		68,574		1,009,558
	SBI Life Insurance Co. Ltd.		Insurance		8,228		69,717
	Shree Cement Ltd.		Construction Materials		187		43,372
	Shriram Transport Finance Co. Ltd.		Consumer Finance		3,696		32,277
	Siemens Ltd.		Industrial Conglomerates		1,881		27,684
a	State Bank of India		Banks		39,446		102,641
	Steel Authority of India Ltd.		Metals & Mining		22,132		6,743
	Sun Pharmaceutical Industries Ltd.		Pharmaceuticals		24,189		112,646
	Sun TV Network Ltd.		Media		1,870		7,068
	Tata Communications Ltd.		Diversified Telecommunication Services		1,507		4,644
	Tata Consultancy Services Ltd.		IT Services		19,877		479,799
a	Tata Motors Ltd.		Automobiles		23,837		22,387
a	Tata Motors Ltd., A		Automobiles		8,371		3,425
	Tata Power Co. Ltd.		Electric Utilities		20,867		9,061
	Tata Steel Ltd.		Metals & Mining		5,995		21,365
	Tech Mahindra Ltd.		IT Services		10,219		76,388
	Titan Co. Ltd.		Textiles, Apparel & Luxury Goods		6,875		84,852
	Torrent Pharmaceuticals Ltd.		Pharmaceuticals		891		23,223
	Torrent Power Ltd.		Electric Utilities		2,530		9,332
	TVS Motor Co. Ltd.		Automobiles		2,508		9,864
	UltraTech Cement Ltd.		Construction Materials		2,376		101,912
a	Union Bank of India Ltd.		Banks		13,453		5,104
	United Breweries Ltd.		Beverages		1,463		17,769
a	United Spirits Ltd.		Beverages		6,578		42,137
	UPL Ltd.		Chemicals		11,858		51,177
	Vedanta Ltd.		Metals & Mining		36,894		31,553
a	Vodafone Idea Ltd.		Wireless Telecommunication Services		180,103		7,380
	Voltas Ltd.		Construction & Engineering		2,200		13,869
	Whirlpool of India Ltd.		Household Durables		671		16,133
	Wipro Ltd.		IT Services		30,173		78,453
	Yes Bank Ltd.		Banks		31,573		9,369
	Zee Entertainment Enterprises Ltd.		Media		19,745		32,351

	Total Investments (Cost $11,426,059) 99.7%						8,763,847
	Other Assets, less Liabilities 0.3%						26,107

	Net Assets 100.0%					$	8,789,954

See Abbreviations on page 351.

^aNon-income producing.

^bFair valued using significant unobservable inputs. See Note 9 regarding fair value measurements.



242	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE India ETF (continued)

^dSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the value of this security was $57,406, representing 0.7% of net assets.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

SGX Nifty 50

Long

17,141

4/30/20

1,682

*As of period end.

See Note 8 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	243

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Italy ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.13		$	26.27		$	25.51


Income from investment operations^b:

Net investment income^c		0.90			0.46			0.11

Net realized and unrealized gains (losses)		(5.52	)		(2.99	)		0.70


Total from investment operations		(4.62	)		(2.53	)		0.81


Less distributions from net investment income		(0.90	)		(0.61	)		(0.05	)


Net asset value, end of year	$	17.61		$	23.13		$	26.27


Total return^d		(20.84)%			(9.67)%			3.19%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		3.85%			2.05%			1.01%

Supplemental data

Net assets, end of year (000’s)		$2,641			$10,410			$2,627

Portfolio turnover rate^f		9.89%	^g		16.67%			3.09%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 9.89%.



244	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Italy ETF



		Industry		Shares		Value

	Common Stocks 100.0%
	Italy 93.2%
	A2A SpA		Multi-Utilities		15,888	$	19,752
	Amplifon SpA		Health Care Providers & Services		1,224		25,142
	Assicurazioni Generali SpA		Insurance		11,979		163,117
	Atlantia SpA		Transportation Infrastructure		5,073		63,623
	Banca Mediolanum SpA		Diversified Financial Services		2,955		15,077
a	Banco BPM SpA		Banks		15,621		20,568
	Buzzi Unicem SpA		Construction Materials		690		12,621
	Buzzi Unicem SpA, di Risp		Construction Materials		408		3,828
	Davide Campari-Milano SpA		Beverages		5,703		40,987
	DiaSorin SpA		Health Care Equipment & Supplies		231		30,593
	Enel SpA		Electric Utilities		71,442		496,913
	Eni SpA		Oil, Gas & Consumable Fuels		23,286		235,576
	Ferrari NV		Automobiles		825		128,136
	FinecoBank Banca Fineco SpA		Banks		6,264		56,979
	Hera SpA		Multi-Utilities		8,391		30,089
b	Infrastrutture Wireless Italiane SpA, Reg S		Diversified Telecommunication Services		2,466		26,733
	Intesa Sanpaolo SpA		Banks		138,465		226,134
	Italgas Reti SpA		Gas Utilities		5,037		27,573
	Leonardo SpA		Aerospace & Defense		3,987		26,563
a	Mediaset SpA		Media		3,171		6,750
	Mediobanca Banca di Credito Finanziario SpA		Banks		8,256		45,548
	Moncler SpA		Textiles, Apparel & Luxury Goods		1,992		72,763
a	Nexi SpA		IT Services		3,072		39,970
	Pirelli & C SpA		Auto Components		4,443		15,917
b	Poste Italiane SpA, Reg S		Insurance		4,701		39,821
	Prysmian SpA		Electrical Equipment		2,574		41,235
	Recordati SpA		Pharmaceuticals		990		41,865
a	Saipem SpA		Energy Equipment & Services		5,790		14,231
	Salvatore Ferragamo SpA		Textiles, Apparel & Luxury Goods		690		9,161
	Snam SpA		Gas Utilities		20,505		94,586
a	Telecom Italia SpA/Milano		Diversified Telecommunication Services		109,227		44,632
	Telecom Italia SpA/Milano, di Risp		Diversified Telecommunication Services		61,857		24,468
	Tenaris SA		Energy Equipment & Services		4,812		29,462
	Terna Rete Elettrica Nazionale SpA		Electric Utilities		13,638		86,344
	UniCredit SpA		Banks		20,805		163,154
	Unione di Banche Italiane SpA		Banks		9,846		26,004
	UnipolSai Assicurazioni SpA		Insurance		5,958		14,644


							2,460,559

	Netherlands 2.1%
	EXOR NV		Diversified Financial Services		1,074		55,387

	United Kingdom 4.7%
	CNH Industrial NV		Machinery		10,179		58,257
	Fiat Chrysler Automobiles NV		Automobiles		9,177		66,177


							124,434

	Total Investments (Cost $3,522,911) 100.0%						2,640,380
	Other Assets, less Liabilities 0.0%^†						940

	Net Assets 100.0%					$	2,641,320

See Abbreviations on page 351.

†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the aggregate value of these securities was $66,554, representing 2.5% of net assets.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	245

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Japan ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.18		$	26.69		$	25.91


Income from investment operations^b:

Net investment income^c		0.56			0.59			0.44

Net realized and unrealized gains (losses)		(2.22	)		(2.76	)		0.37


Total from investment operations		(1.66	)		(2.17	)		0.81


Less distributions from net investment income		(0.59	)		(0.34	)		(0.03	)


Net asset value, end of year	$	21.93		$	24.18		$	26.69


Total return^d		(7.15)%			(8.10)%			3.11%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%

Expenses net waiver and payments by affiliates		0.09%			0.09%			—%

Net investment income		2.30%			2.39%			4.07%

Supplemental data

Net assets, end of year (000’s)		$315,851			$290,205			$96,082

Portfolio turnover rate^f		4.59%	^g		4.35%			0.93%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 4.51%.



246	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Japan ETF



	Industry		Shares		Value
Common Stocks 98.7%
Japan 98.7%
ABC-Mart Inc.		Specialty Retail		2,400	$	120,272
Acom Co. Ltd.		Consumer Finance		36,000		146,394
Advantest Corp.		Semiconductors & Semiconductor Equipment		19,200		771,877
AEON Co. Ltd.		Food & Staples Retailing		67,200		1,493,333
AEON Financial Service Co. Ltd.		Consumer Finance		12,000		128,720
AEON Mall Co. Ltd.		Real Estate Management & Development		12,000		151,508
AGC Inc.		Building Products		16,800		413,795
Aica Kogyo Co. Ltd.		Building Products		4,800		137,613
AIN Holdings Inc.		Food & Staples Retailing		2,400		141,170
Air Water Inc.		Chemicals		16,800		231,252
Aisin Seiki Co. Ltd.		Auto Components		16,800		414,573
Ajinomoto Co. Inc.		Food Products		48,000		893,928
Alfresa Holdings Corp.		Health Care Providers & Services		16,800		313,419
Alps Alpine Co. Ltd.		Electronic Equipment, Instruments & Components		19,200		186,567
Amada Co. Ltd.		Machinery		31,200		246,525
Amano Corp.		Electronic Equipment, Instruments & Components		7,200		159,200
ANA Holdings Inc.		Airlines		9,600		234,676
Anritsu Corp.		Electronic Equipment, Instruments & Components		12,000		222,982
Aozora Bank Ltd.		Banks		12,000		229,207
Ariake Japan Co. Ltd.		Food Products		1,700		107,397
Asahi Group Holdings Ltd.		Beverages		36,000		1,170,488
Asahi Intecc Co. Ltd.		Health Care Equipment & Supplies		16,800		415,818
Asahi Kasei Corp.		Chemicals		120,000		850,132
Asics Corp.		Textiles, Apparel & Luxury Goods		16,800		155,465
ASKUL Corp.		Internet & Direct Marketing Retail		2,400		71,141
Astellas Pharma Inc.		Pharmaceuticals		177,600		2,749,012
Autobacs Seven Co. Ltd.		Specialty Retail		4,800		55,401
Azbil Corp.		Electronic Equipment, Instruments & Components		12,000		311,685
Bandai Namco Holdings Inc.		Leisure Equipment & Products		19,200		932,122
Benefit One Inc.		Professional Services		4,800		62,693
Benesse Holdings Inc.		Diversified Consumer Services		7,200		183,476
BIC CAMERA Inc.		Specialty Retail		14,400		116,715
Bridgestone Corp.		Auto Components		55,200		1,699,130
Brother Industries Ltd.		Technology Hardware, Storage & Peripherals		21,600		330,938
Calbee Inc.		Food Products		7,200		194,815
CANON Inc.		Technology Hardware, Storage & Peripherals		96,000		2,097,763
Canon Marketing Japan Inc.		Electronic Equipment, Instruments & Components		4,800		95,329
Capcom Co. Ltd.		Entertainment		9,600		301,459
Casio Computer Co. Ltd.		Household Durables		21,600		303,526
Central Japan Railway Co.		Road & Rail		17,300		2,775,564
Chubu Electric Power Co. Inc.		Electric Utilities		67,200		948,973
Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals		20,800		2,408,411
Chuo Mitsui Trust Holdings Inc.		Banks		36,000		1,041,767
Citizen Watch Co. Ltd.		Electronic Equipment, Instruments & Components		26,400		93,906
Coca-Cola Bottlers Japan Holdings Inc.		Beverages		14,400		295,990
COMSYS Holdings Corp.		Construction & Engineering		9,600		247,481
Concordia Financial Group Ltd.		Banks		105,600		308,128
Cosmo Energy Holdings Co. Ltd.		Oil, Gas & Consumable Fuels		7,200		101,442
Cosmos Pharmaceutical Corp.		Food & Staples Retailing		850		202,983
Credit Saison Co. Ltd.		Consumer Finance		14,400		167,536
CyberAgent Inc.		Media		9,600		372,600
Dai Nippon Printing Co. Ltd.		Commercial Services & Supplies		26,400		562,701
Daicel Corp.		Chemicals		26,400		192,947
Daido Steel Co. Ltd.		Metals & Mining		2,400		77,366
Daifuku Co. Ltd.		Machinery		9,600		609,143
Daiichi Sankyo Co. Ltd.		Pharmaceuticals		60,000		4,131,722
Daiichikosho Co. Ltd.		Entertainment		4,800		128,098
Daikin Industries Ltd.		Building Products		25,370		3,095,020
Daishi Hokuetsu Financial Group Inc.		Banks		4,800		105,066



franklintempleton.com	Annual Report	247

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Daito Trust Construction Co. Ltd.		Real Estate Management & Development		6,348	$	591,845
Daiwa House Industry Co. Ltd.		Real Estate Management & Development		62,400		1,547,645
Daiwa Securities Group Inc.		Capital Markets		144,000		559,166
DeNA Co. Ltd.		Entertainment		9,600		105,110
Denka Co. Ltd.		Chemicals		7,200		151,863
Denso Corp.		Auto Components		43,200		1,396,982
Dentsu Group Inc.		Media		21,600		417,574
DIC Corp.		Chemicals		7,200		159,600
Disco Corp.		Semiconductors & Semiconductor Equipment		2,677		529,672
DMG Mori Co. Ltd.		Machinery		9,600		80,211
Dowa Holdings Co. Ltd.		Metals & Mining		4,800		125,786
East Japan Railway Co.		Road & Rail		34,400		2,605,293
EBARA Corp.		Machinery		9,600		182,921
Eisai Co. Ltd.		Pharmaceuticals		25,400		1,866,031
Electric Power Development Co. Ltd.		Independent Power and Renewable Electricity Producers		16,800		338,941
Ezaki Glico Co. Ltd.		Food Products		4,800		201,862
FamilyMart Co. Ltd.		Food & Staples Retailing		21,600		387,762
Fancl Corp.		Personal Products		7,200		161,867
FANUC Corp.		Machinery		18,600		2,524,969
Fast Retailing Co. Ltd.		Specialty Retail		4,900		2,005,752
FP Corp.		Containers & Packaging		2,400		159,400
Fuji Electric Co. Ltd.		Electrical Equipment		12,000		272,225
Fuji Media Holdings Inc.		Media		4,800		47,887
Fuji Oil Holdings Inc.		Food Products		4,800		115,959
Fuji Seal International Inc.		Containers & Packaging		4,800		85,013
FUJIFILM Holdings Corp.		Technology Hardware, Storage & Peripherals		33,600		1,692,839
Fujikura Ltd.		Electrical Equipment		26,400		76,543
Fujitsu General Ltd.		Household Durables		4,800		86,836
Fujitsu Ltd.		IT Services		18,400		1,662,656
Fukuoka Financial Group Inc.		Banks		14,400		190,880
Fukuyama Transporting Co. Ltd.		Road & Rail		2,400		85,925
Furukawa Electric Co. Ltd.		Electrical Equipment		4,800		87,370
Fuyo General Lease Co. Ltd.		Diversified Financial Services		2,400		121,829
Glory Ltd.		Machinery		4,800		110,713
GMO Internet Inc.		IT Services		4,800		80,745
GMO Payment Gateway Inc.		IT Services		3,500		245,751
Goldwin Inc.		Textiles, Apparel & Luxury Goods		3,600		200,750
GS Yuasa Corp.		Electrical Equipment		7,200		96,974
GungHo Online Entertainment Inc.		Entertainment		3,250		45,519
Gunma Bank Ltd.		Banks		38,400		116,671
H2O Retailing Corp.		Multiline Retail		7,200		52,755
Hachijuni Bank Ltd.		Banks		43,200		156,465
Hakuhodo DY Holdings Inc.		Media		21,600		218,091
Hamamatsu Photonics K.K.		Electronic Equipment, Instruments & Components		12,000		491,316
Hankyu Hanshin Holdings Inc.		Road & Rail		21,600		727,303
Haseko Corp.		Household Durables		26,400		282,940
Heiwa Corp.		Leisure Equipment & Products		4,800		89,860
Hikari Tsushin Inc.		Specialty Retail		2,400		403,057
Hino Motors Ltd.		Machinery		26,400		142,081
Hirose Electric Co. Ltd.		Electronic Equipment, Instruments & Components		3,200		331,990
HIS Co. Ltd.		Hotels, Restaurants & Leisure		2,400		31,413
Hisamitsu Pharmaceutical Co. Inc.		Pharmaceuticals		7,200		336,140
Hitachi Capital Corp.		Consumer Finance		4,800		90,571
Hitachi Chemical Co. Ltd.		Chemicals		9,600		408,170
Hitachi Construction Machinery Co. Ltd.		Machinery		9,600		194,659
Hitachi High-Tech Corp.		Electronic Equipment, Instruments & Components		5,900		436,126
Hitachi Ltd.		Electronic Equipment, Instruments & Components		88,800		2,585,322
Hitachi Metals Ltd.		Metals & Mining		19,200		202,573
Hitachi Transport System Ltd.		Road & Rail		4,800		104,444



248	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Hokugin Financial Group Inc.		Banks		12,000	$	107,600
	Hokuriku Electric Power Co.		Electric Utilities		16,800		117,805
	Honda Motor Co. Ltd.		Automobiles		165,600		3,727,553
	HORIBA Ltd.		Electronic Equipment, Instruments & Components		3,500		174,425
	Hoshizaki Corp.		Machinery		4,800		360,595
	House Foods Group Inc.		Food Products		7,200		235,098
	Hoya Corp.		Health Care Equipment & Supplies		36,000		3,067,945
	Ibiden Co. Ltd.		Electronic Equipment, Instruments & Components		9,600		210,843
	Ichigo Inc.		Real Estate Management & Development		19,200		44,463
	Idemitsu Kosan Co. Ltd.		Oil, Gas & Consumable Fuels		21,600		495,807
	IHI Corp.		Machinery		12,000		140,281
	Iida Group Holdings Co. Ltd.		Household Durables		14,400		199,683
	INPEX Corp.		Oil, Gas & Consumable Fuels		86,400		487,243
	Isetan Mitsukoshi Holdings Ltd.		Multiline Retail		33,600		196,082
	Isuzu Motors Ltd.		Automobiles		48,000		318,044
	Ito En Ltd.		Beverages		4,800		254,328
	ITOCHU Corp.		Trading Companies & Distributors		129,600		2,692,122
	ITOCHU Techno-Solutions Corp.		IT Services		9,600		274,337
	Itoham Yonekyu Holdings Inc.		Food Products		12,000		70,807
	Izumi Co. Ltd.		Multiline Retail		4,800		132,500
	J Front Retailing Co. Ltd.		Multiline Retail		24,000		199,639
	Japan Airlines Co. Ltd.		Airlines		12,000		221,203
	Japan Airport Terminal Co. Ltd.		Transportation Infrastructure		4,800		185,633
	Japan Aviatn Elect		Electronic Equipment, Instruments & Components		4,800		57,846
	Japan Exchange Group Inc.		Capital Markets		50,400		889,837
	Japan Petroleum Exploration Co. Ltd.		Oil, Gas & Consumable Fuels		2,400		39,505
	Japan Post Bank Co. Ltd.		Banks		38,400		354,637
	Japan Post Holdings Co. Ltd.		Insurance		127,200		996,462
	Japan Post Insurance Co. Ltd.		Insurance		16,800		208,687
	Japan Tobacco Inc.		Tobacco		112,800		2,085,580
	JCR Pharmaceuticals Co., Ltd.		Pharmaceuticals		1,200		104,710
	JFE Holdings Inc.		Metals & Mining		48,000		312,575
	JGC Holdings Corp.		Construction & Engineering		21,600		173,672
	JSR Corp.		Chemicals		16,800		310,151
	JTEKT Corp.		Auto Components		21,600		147,061
	Justsystems Corp.		Software		2,400		109,268
	JXTG Holdings Inc.		Oil, Gas & Consumable Fuels		288,000		987,611
	K’s Holdings Corp.		Specialty Retail		16,800		159,200
	Kagome Co. Ltd.		Food Products		7,200		187,078
	Kajima Corp.		Construction & Engineering		43,200		443,785
	Kakaku.com Inc.		Interactive Media & Services		12,000		220,647
	Kaken Pharmaceutical Co. Ltd.		Pharmaceuticals		2,400		111,824
	Kamigumi Co. Ltd.		Transportation Infrastructure		9,600		162,557
	Kandenko Co. Ltd.		Construction & Engineering		9,600		76,565
	Kaneka Corp.		Chemicals		4,800		115,159
	Kansai Electric Power Co. Inc.		Electric Utilities		69,600		775,912
	Kansai Mirai Financial Group Inc		Banks		16,800		60,536
	Kansai Paint Co. Ltd.		Chemicals		19,200		366,019
	KAO Corp.		Personal Products		45,174		3,694,932
	Kawasaki Heavy Industries Ltd.		Machinery		14,400		209,287
a	Kawasaki Kisen Kaisha Ltd.		Marine		7,200		54,156
	KDDI Corp.		Wireless Telecommunication Services		163,200		4,822,454
	Keihan Holdings Co. Ltd.		Industrial Conglomerates		9,600		426,845
	Keikyu Corp.		Road & Rail		24,000		403,946
	Keio Corp.		Road & Rail		12,000		710,296
	Keisei Electric Railway Co. Ltd.		Road & Rail		14,400		416,173
	Kewpie Corp.		Food Products		9,600		192,169
	Keyence Corp.		Electronic Equipment, Instruments & Components		17,232		5,559,637
	Kikkoman Corp.		Food Products		16,800		716,632



franklintempleton.com	Annual Report	249

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Kinden Corp.		Construction & Engineering		12,000	$	177,296
	Kintetsu Group Holdings Co. Ltd.		Road & Rail		16,800		778,102
	Kirin Holdings Co. Ltd.		Beverages		76,800		1,520,634
	Kissei Pharmaceutical Co. Ltd.		Pharmaceuticals		2,400		61,826
	Kobayashi Pharmaceutical Co. Ltd.		Personal Products		5,500		509,472
	Kobe Bussan Co Ltd		Food & Staples Retailing		2,600		102,598
	Kobe Steel Ltd.		Metals & Mining		28,800		89,104
	Koei Tecmo Holdings Co. Ltd.		Entertainment		4,800		123,829
	Koito Manufacturing Co. Ltd.		Auto Components		12,000		406,280
	Kokuyo Co. Ltd.		Commercial Services & Supplies		7,200		100,842
	Komatsu Ltd.		Machinery		88,800		1,462,932
	Konami Holdings Corp.		Entertainment		9,600		294,790
	Konica Minolta Inc.		Technology Hardware, Storage & Peripherals		43,200		175,673
	KOSE Corp.		Personal Products		2,400		296,346
	Kotobuki Spirits Co. Ltd.		Food Products		2,400		108,156
	Kubota Corp.		Machinery		105,600		1,351,363
	Kuraray Co. Ltd.		Chemicals		33,600		339,875
	Kurita Water Industries Ltd.		Machinery		9,600		222,137
	Kusuri No Aoki Holdings Co. Ltd.		Food & Staples Retailing		1,000		83,183
	Kyocera Corp.		Electronic Equipment, Instruments & Components		28,800		1,709,512
	Kyoritsu Maintenance Co. Ltd.		Hotels, Restaurants & Leisure		2,400		53,000
	Kyowa Exeo Corp.		Construction & Engineering		9,600		213,956
	Kyowa Kirin Co. Ltd.		Pharmaceuticals		24,000		538,447
	Kyudenko Corp.		Construction & Engineering		4,800		129,965
	Kyushu Electric Power Co. Inc.		Electric Utilities		43,200		347,745
	Kyushu Financial Group Inc.		Banks		36,000		137,724
	Kyushu Railway Co.		Road & Rail		14,400		413,506
	Lasertec Corp.		Semiconductors & Semiconductor Equipment		7,200		337,474
	Lawson Inc.		Food & Staples Retailing		4,800		263,665
a	Line Corp.		Interactive Media & Services		4,800		231,652
	LINTEC Corp.		Chemicals		4,800		101,109
	Lion Corp.		Household Products		24,000		514,214
	LIXIL Group Corp.		Building Products		24,000		299,013
	M3 Inc.		Health Care Technology		40,800		1,207,503
	Mabuchi Motor Co. Ltd.		Electrical Equipment		4,800		143,171
	Maeda Corp.		Construction & Engineering		12,000		88,592
	Maeda Road Construction Co. Ltd.		Construction & Engineering		4,800		89,860
	Makita Corp.		Machinery		24,000		736,974
	Mani Inc.		Health Care Equipment & Supplies		4,800		117,782
	Marubeni Corp.		Trading Companies & Distributors		148,800		742,932
	Maruha Nichiro Corp.		Food Products		2,400		50,199
	Marui Group Co. Ltd.		Multiline Retail		19,200		322,801
	Maruichi Steel Tube Ltd.		Metals & Mining		4,800		115,559
	Matsui Securities Co. Ltd.		Capital Markets		9,600		70,518
	Matsumotokiyoshi Holdings Co. Ltd.		Food & Staples Retailing		7,200		262,109
	Mazda Motor Corp.		Automobiles		55,200		292,477
	Mebuki Financial Group Inc.		Banks		96,000		195,637
	Medipal Holdings Corp.		Health Care Providers & Services		14,400		269,179
	Megmilk Snow Brand Co. Ltd.		Food Products		4,800		109,201
	Meiji Holdings Co. Ltd.		Food Products		12,000		853,689
	Minebea Mitsumi Inc.		Machinery		40,800		609,987
	Miraca Holdings Inc.		Health Care Providers & Services		4,800		101,287
	MISUMI Group Inc.		Machinery		26,400		575,907
	Mitsubishi Chemical Holdings Corp.		Chemicals		122,400		728,810
	Mitsubishi Corp.		Trading Companies & Distributors		115,200		2,445,286
	Mitsubishi Electric Corp.		Electrical Equipment		189,600		2,344,644
	Mitsubishi Estate Co. Ltd.		Real Estate Management & Development		110,400		1,631,124
	Mitsubishi Gas Chemical Co. Inc.		Chemicals		16,800		183,010
	Mitsubishi Heavy Industries Ltd.		Machinery		26,400		668,223



250	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Mitsubishi Logistics Corp.		Transportation Infrastructure		7,200	$	145,527
Mitsubishi Materials Corp.		Metals & Mining		12,000		246,214
Mitsubishi Motors Corp.		Automobiles		60,000		170,071
Mitsubishi Shokuhin Co. Ltd.		Food & Staples Retailing		2,400		61,781
Mitsubishi UFJ Financial Group Inc.		Banks		1,195,200		4,461,726
Mitsubishi UFJ Lease & Finance Co. Ltd.		Diversified Financial Services		40,800		201,062
Mitsui & Co. Ltd.		Trading Companies & Distributors		163,200		2,272,903
Mitsui Chemicals Inc.		Chemicals		16,800		319,177
Mitsui Fudosan Co. Ltd.		Real Estate Management & Development		91,200		1,580,192
Mitsui Mining and Smelting Co. Ltd.		Metals & Mining		4,800		80,345
Mitsui O.S.K. Lines Ltd.		Marine		9,600		155,354
Miura Co. Ltd.		Machinery		9,600		342,810
Mizuho Financial Group Inc.		Banks		2,431,200		2,783,533
Mochida Pharmaceutical Co. Ltd.		Pharmaceuticals		2,400		92,705
Monotaro Co. Ltd.		Trading Companies & Distributors		12,000		318,800
Morinaga & Co. Ltd.		Food Products		4,800		196,526
Morinaga Milk Industry Co. Ltd.		Food Products		4,800		185,855
MS&AD Insurance Group Holdings Inc.		Insurance		45,600		1,277,755
Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		55,200		2,797,966
Nabtesco Corp.		Machinery		12,000		277,338
Nagase & Co. Ltd.		Trading Companies & Distributors		9,600		113,736
Nagoya Railroad Co. Ltd.		Road & Rail		19,200		538,891
Nankai Electric Railway Co. Ltd.		Road & Rail		9,600		218,758
NEC Corp.		IT Services		23,000		840,489
Net One Systems Co. Ltd.		IT Services		7,200		149,929
Nexon Co. Ltd.		Entertainment		38,400		627,817
NGK Insulators Ltd.		Machinery		24,000		315,020
NGK Spark Plug Co. Ltd.		Auto Components		19,200		270,691
NH Foods Ltd.		Food Products		9,600		334,806
NHK Spring Co. Ltd.		Auto Components		14,400		94,439
Nichirei Corp.		Food Products		9,600		271,669
Nidec Corp.		Electrical Equipment		44,600		2,316,449
Nifco Inc.		Auto Components		7,200		129,387
Nihon Kohden Corp.		Health Care Equipment & Supplies		7,200		270,779
Nihon M&A Center Inc.		Professional Services		12,000		328,470
Nihon Unisys Ltd.		IT Services		7,200		192,947
Nikon Corp.		Household Durables		31,200		288,431
Nintendo Co. Ltd.		Entertainment		10,200		3,931,471
Nippo Corp.		Construction & Engineering		4,800		105,822
Nippon Electric Glass Co. Ltd.		Electronic Equipment, Instruments & Components		7,200		96,574
Nippon Express Co. Ltd.		Road & Rail		7,200		352,814
Nippon Kayaku Co. Ltd.		Chemicals		16,800		154,842
Nippon Paint Holdings Co. Ltd.		Chemicals		14,400		754,981
Nippon Paper Industries Co. Ltd.		Paper & Forest Products		9,600		136,857
Nippon Shinyaku Co. Ltd.		Pharmaceuticals		4,800		377,046
Nippon Shobukai Co. Ltd.		Chemicals		2,400		110,046
Nippon Steel Corp.		Metals & Mining		79,200		678,910
Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		115,200		2,748,345
Nippon Television Holdings Inc.		Media		2,400		26,789
Nippon Yusen KK		Marine		14,400		171,538
Nipro Corp.		Health Care Equipment & Supplies		12,000		141,281
Nishi-Nippon Financial Holdings Inc.		Banks		14,400		81,367
Nishi-Nippon Railroad Co. Ltd.		Road & Rail		7,200		177,207
Nissan Chemical Corp.		Chemicals		14,400		525,552
Nissan Motor Co. Ltd.		Automobiles		184,800		610,437
Nissan Shatai Co. Ltd.		Automobiles		4,800		41,751
Nisshin Seifun Group Inc.		Food Products		24,000		400,611
Nisshinbo Holdings Inc.		Industrial Conglomerates		12,000		80,145
Nissin Foods Holdings Co. Ltd.		Food Products		7,200		600,250



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STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Nitori Co. Ltd.		Specialty Retail		7,200	$	972,405
	Nitto Denko Corp.		Chemicals		14,400		643,601
	Noevir Holdings Co. Ltd.		Personal Products		2,400		122,718
	NOF Corp.		Chemicals		7,200		228,762
	NOK Corp.		Auto Components		12,000		132,611
	Nomura Holdings Inc.		Capital Markets		290,400		1,231,486
	Nomura Real Estate Holdings Inc.		Real Estate Management & Development		12,000		195,081
	Nomura Research Institute Ltd.		IT Services		24,000		508,656
	NS Solutions Corp.		IT Services		2,400		58,513
	NSK Ltd.		Machinery		43,200		277,716
	NTN Corp.		Machinery		40,800		71,430
	NTT Data Corp.		IT Services		60,000		578,019
	NTT DOCOMO Inc.		Wireless Telecommunication Services		110,400		3,453,483
	Obayashi Corp.		Construction & Engineering		64,800		555,832
	OBIC Business Consultants Co. Ltd.		Software		2,400		97,374
	OBIC Co. Ltd.		IT Services		6,500		852,577
	Odakyu Electric Railway Co. Ltd.		Road & Rail		28,800		632,797
	Oji Holdings Corp.		Paper & Forest Products		84,000		450,521
	Okuma Corp.		Machinery		2,400		77,477
	Olympus Corp.		Health Care Equipment & Supplies		100,800		1,458,474
	Omron Corp.		Electronic Equipment, Instruments & Components		19,200		1,001,306
	Ono Pharmaceutical Co. Ltd.		Pharmaceuticals		40,800		939,547
	Open House Co. Ltd.		Real Estate Management & Development		4,800		98,930
	Oracle Corp. Japan		Software		3,245		283,755
	Orient Corp.		Consumer Finance		52,800		59,180
	Oriental Land Co. Ltd.		Hotels, Restaurants & Leisure		17,800		2,278,690
	ORIX Corp.		Diversified Financial Services		122,400		1,474,514
	Osaka Gas Co. Ltd.		Gas Utilities		38,400		724,213
	OSG Corp.		Machinery		7,200		96,507
	Otsuka Corp.		IT Services		9,600		410,838
	Otsuka Holdings Co. Ltd.		Pharmaceuticals		40,800		1,599,044
	Paltac Corp.		Distributors		2,400		119,828
	Pan Pacific International Holdings Corp.		Multiline Retail		48,000		911,046
	Panasonic Corp.		Household Durables		204,000		1,558,983
	Park24 Co. Ltd.		Commercial Services & Supplies		9,600		141,481
	Penta-Ocean Construction Co. Ltd.		Construction & Engineering		26,400		139,147
a	PeptiDream Inc.		Biotechnology		7,200		251,438
	Persol Holdings Co. Ltd.		Professional Services		16,800		169,004
	Pigeon Corp.		Household Products		9,600		368,598
	Pilot Corp.		Commercial Services & Supplies		2,400		79,922
	Pola Orbis Holdings Inc.		Personal Products		7,200		133,055
	Rakuten Inc.		Internet & Direct Marketing Retail		76,800		583,354
	Recruit Holdings Co. Ltd.		Professional Services		120,000		3,107,962
	Relo Group Inc.		Real Estate Management & Development		9,600		201,595
a	Renesas Electronics Corp.		Semiconductors & Semiconductor Equipment		67,200		242,145
	Rengo Co. Ltd.		Containers & Packaging		19,200		149,751
	Resona Holdings Inc.		Banks		208,800		628,982
	Resorttrust Inc.		Hotels, Restaurants & Leisure		7,200		70,429
	Ricoh Co. Ltd.		Technology Hardware, Storage & Peripherals		64,800		476,599
	Rinnai Corp.		Household Durables		3,100		219,675
	Rohm Co. Ltd.		Semiconductors & Semiconductor Equipment		8,000		439,442
	Rohto Pharmaceutical Co. Ltd.		Personal Products		9,600		263,221
	Ryohin Keikaku Co. Ltd.		Multiline Retail		21,600		242,901
	Sankyo Co. Ltd.		Leisure Equipment & Products		4,800		139,836
	Sankyu Inc.		Road & Rail		4,800		179,408
	Sanrio Co. Ltd.		Specialty Retail		4,800		63,893
	Santen Pharmaceutical Co. Ltd.		Pharmaceuticals		33,600		578,285
	Sanwa Holdings Corp.		Building Products		19,200		150,107
	Sapporo Holdings Ltd.		Beverages		4,800		88,615



252	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Sawai Pharmaceutical Co. Ltd.		Pharmaceuticals		4,800	$	256,551
	SBI Holdings Inc.		Capital Markets		21,600		315,732
	SCREEN Holdings Co. Ltd.		Semiconductors & Semiconductor Equipment		3,700		137,094
	SCSK Corp.		IT Services		4,800		214,089
	Secom Co. Ltd.		Commercial Services & Supplies		19,200		1,596,043
	Sega Sammy Holdings Inc.		Leisure Equipment & Products		19,200		233,875
	Seibu Holdings Inc.		Road & Rail		21,600		237,699
	Seiko Epson Corp.		Technology Hardware, Storage & Peripherals		26,400		286,119
	Seino Holdings Co. Ltd.		Road & Rail		14,400		156,465
	Sekisui Chemical Co. Ltd.		Household Durables		33,600		446,008
	Sekisui House Ltd.		Household Durables		55,200		912,458
	Seven & i Holdings Co. Ltd.		Food & Staples Retailing		74,400		2,464,494
	Seven Bank Ltd.		Banks		62,400		161,267
	SG Holdings Co. Ltd.		Air Freight & Logistics		19,200		457,613
	Sharp Corp.		Household Durables		14,400		151,396
	Shikoku Electric Power Co. Inc.		Electric Utilities		14,400		113,914
	Shimadzu Corp.		Electronic Equipment, Instruments & Components		26,400		695,734
	Shimamura Co. Ltd.		Specialty Retail		2,400		144,949
	SHIMANO Inc.		Leisure Equipment & Products		7,200		1,029,762
	Shimizu Corp.		Construction & Engineering		52,800		413,283
	Shin-Etsu Chemical Co. Ltd.		Chemicals		38,400		3,816,701
a	Shinsei Bank Ltd.		Banks		19,200		256,462
	Shionogi & Co. Ltd.		Pharmaceuticals		26,400		1,300,253
	Ship Healthcare Holdings Inc.		Health Care Providers & Services		2,400		98,374
	Shiseido Co. Ltd.		Personal Products		37,200		2,199,161
	SHO-BOND Holdings Co. Ltd.		Construction & Engineering		4,800		192,080
	Shochiku Co. Ltd.		Entertainment		845		94,867
	Shoei Co. Ltd.		Real Estate Management & Development		33,600		341,742
	Showa Denko K.K.		Chemicals		14,400		298,391
	Sky Perfect JSAT Holdings Inc.		Media		12,000		42,684
	Skylark Holdings Co. Ltd.		Hotels, Restaurants & Leisure		19,200		284,919
	SMC Corp.		Machinery		5,503		2,332,104
	SMS Co. Ltd.		Professional Services		4,800		93,061
	Softbank Corp.		Wireless Telecommunication Services		153,600		1,955,659
	SoftBank Group Corp.		Wireless Telecommunication Services		156,000		5,473,836
	Sohgo Security Services Co. Ltd.		Commercial Services & Supplies		7,200		350,813
	Sojitz Corp.		Trading Companies & Distributors		117,600		276,693
	Sompo Holdings Inc.		Insurance		33,600		1,040,478
	Sony Corp.		Household Durables		117,600		6,994,670
	Sony Financial Holdings Inc.		Insurance		14,400		243,702
	Sotetsu Holdings Inc.		Road & Rail		7,200		184,944
	Square Enix Holdings Co. Ltd.		Entertainment		7,200		321,801
	Stanley Electric Co. Ltd.		Auto Components		14,400		284,385
	Subaru Corp.		Automobiles		57,600		1,106,328
	Sugi Pharmacy Co. Ltd.		Food & Staples Retailing		2,400		128,276
	Sumco Corp.		Semiconductors & Semiconductor Equipment		21,600		278,716
	Sumitomo Bakelite Co. Ltd.		Chemicals		2,400		51,021
	Sumitomo Chemical Co. Ltd.		Chemicals		144,000		428,178
	Sumitomo Corp.		Trading Companies & Distributors		108,000		1,239,516
	Sumitomo Dainippon Pharma Co. Ltd.		Pharmaceuticals		16,800		218,335
	Sumitomo Electric Industries Ltd.		Auto Components		72,000		758,983
	Sumitomo Forestry Co. Ltd.		Household Durables		12,000		153,953
	Sumitomo Heavy Industries Ltd.		Machinery		9,600		173,495
	Sumitomo Metal Mining Co. Ltd.		Metals & Mining		21,600		443,785
	Sumitomo Mitsui Financial Group Inc.		Banks		124,800		3,032,286
	Sumitomo Osaka Cement Co. Ltd.		Construction Materials		2,400		72,030
	Sumitomo Realty & Development Co. Ltd.		Real Estate Management & Development		38,400		937,279
	Sumitomo Rubber Industries Ltd.		Auto Components		16,800		158,577
	Sundrug Co. Ltd.		Food & Staples Retailing		7,200		230,763



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Suntory Beverage & Food Ltd.		Beverages		12,000	$	454,078
	Sushiro Global Holdings Ltd		Hotels, Restaurants & Leisure		9,600		141,481
	Suzuken Co. Ltd.		Health Care Providers & Services		7,200		262,443
	Suzuki Motor Corp.		Automobiles		43,200		1,034,231
	Sysmex Corp.		Health Care Equipment & Supplies		18,400		1,337,283
	T&D Holdings Inc.		Insurance		52,800		432,358
	Tadano Ltd.		Machinery		12,000		86,036
	Taiheiyo Cement Corp.		Construction Materials		12,000		205,641
	Taisei Corp.		Construction & Engineering		19,200		587,800
	Taisho Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		4,800		295,234
	Taiyo Nippon Sanso Corp.		Chemicals		14,400		213,556
	Taiyo Yuden Co. Ltd.		Electronic Equipment, Instruments & Components		12,000		318,021
	Takara Bio Inc.		Biotechnology		4,800		99,197
	Takara Holdings Inc.		Beverages		16,800		126,053
	Takashimaya Co. Ltd.		Multiline Retail		14,400		129,787
	Takeda Pharmaceutical Co. Ltd.		Pharmaceuticals		146,400		4,486,047
	TDK Corp.		Electronic Equipment, Instruments & Components		12,000		931,499
	TechnoPro Holdings Inc.		Professional Services		2,400		112,714
	Teijin Ltd.		Chemicals		16,800		284,785
	Terumo Corp.		Health Care Equipment & Supplies		62,400		2,150,229
	The 77 Bank Ltd.		Banks		7,200		93,306
	The Bank of Kyoto Ltd.		Banks		7,200		229,429
	The Chiba Bank Ltd.		Banks		57,600		252,372
	The Chugoku Bank Ltd.		Banks		16,800		149,862
	The Chugoku Electric Power Co. Inc.		Electric Utilities		26,400		368,776
	The Dai-ichi Life Holdings Inc.		Insurance		103,200		1,238,438
	The Hiroshima Bank Ltd.		Banks		28,800		120,317
	The Iyo Bank Ltd.		Banks		26,400		133,767
	The Japan Steel Works Ltd.		Machinery		4,800		58,158
	The Shiga Bank Ltd.		Banks		4,800		114,181
	The Shizuoka Bank Ltd.		Banks		48,000		292,122
	THK Co. Ltd.		Machinery		12,000		245,880
	TIS Inc.		IT Services		21,600		357,549
	Tobu Railway Co. Ltd.		Road & Rail		19,200		670,502
	Toda Corp.		Construction & Engineering		21,600		125,852
	Toho Co. Ltd.		Entertainment		12,000		366,820
	Toho Gas Co. Ltd.		Gas Utilities		9,600		435,737
	Tohoku Electric Power Co. Inc.		Electric Utilities		45,600		439,717
	Tokai Carbon Co. Ltd.		Chemicals		19,200		158,644
	Tokai Rika Co. Ltd.		Auto Components		4,800		59,847
	Tokio Marine Holdings Inc.		Insurance		62,400		2,861,192
	Tokuyama Corp.		Chemicals		7,200		139,525
	Tokyo Broadcasting System Holdings Inc.		Media		2,400		33,436
	Tokyo Century Corp.		Diversified Financial Services		4,800		150,507
a	Tokyo Electric Power Co. Holdings Inc.		Electric Utilities		148,800		519,639
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment		14,400		2,715,131
	Tokyo Gas Co. Ltd.		Gas Utilities		40,800		966,002
	Tokyo Tatemono Co. Ltd.		Real Estate Management & Development		19,200		203,996
	TOKYU Corp.		Road & Rail		48,000		755,870
	Tokyu Fudosan Holdings Corp.		Real Estate Management & Development		57,600		276,382
	Topcon Corp.		Electronic Equipment, Instruments & Components		9,600		71,319
	Toppan Printing Co. Ltd.		Commercial Services & Supplies		26,400		404,969
	Toray Industries Inc.		Chemicals		144,000		625,594
	Toshiba Corp.		Industrial Conglomerates		43,200		952,397
	Toshiba Tec Corp.		Technology Hardware, Storage & Peripherals		2,400		75,587
	Tosoh Corp.		Chemicals		26,400		300,792
	TOTO Ltd.		Building Products		14,400		479,533
	Toyo Seikan Group Holdings Ltd.		Containers & Packaging		14,400		164,602
	Toyo Suisan Kaisha Ltd.		Food Products		9,600		464,193



254	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Toyo Tire Corp.		Auto Components		9,600	$	110,268
	Toyobo Co. Ltd.		Chemicals		7,200		76,232
	Toyoda Gosei Co. Ltd.		Auto Components		7,200		123,652
	Toyota Boshoku Corp.		Auto Components		4,800		57,224
	Toyota Industries Corp.		Auto Components		14,400		690,955
	Toyota Motor Corp.		Automobiles		236,240		14,226,263
	Toyota Tsusho Corp.		Trading Companies & Distributors		21,600		509,412
	Trend Micro Inc.		Software		12,000		593,581
	TS TECH Co. Ltd.		Auto Components		4,800		113,736
	Tsumura & Co.		Pharmaceuticals		7,200		183,543
	Tsuruha Holdings Inc.		Food & Staples Retailing		3,500		462,322
	TV Asahi Holdings Corp.		Media		2,400		36,282
	Ube Industries Ltd.		Chemicals		9,600		147,350
	Ulvac Inc.		Semiconductors & Semiconductor Equipment		4,800		115,159
	Unicharm Corp.		Household Products		36,000		1,350,896
	Ushio Inc.		Electrical Equipment		9,600		91,861
	USS Co. Ltd.		Specialty Retail		19,200		264,288
	Wacoal Corp.		Textiles, Apparel & Luxury Goods		4,800		104,355
	Welcia Holdings Co. Ltd.		Food & Staples Retailing		4,800		335,695
	West Japan Railway Co.		Road & Rail		16,800		1,150,968
	Yakult Honsha Co. Ltd.		Food Products		12,000		710,296
	Yamada Denki Co. Ltd.		Specialty Retail		74,400		297,035
	Yamaguchi Financial Group Inc.		Banks		21,600		122,451
	Yamaha Corp.		Leisure Equipment & Products		14,400		562,234
	Yamaha Motor Co. Ltd.		Automobiles		26,400		319,622
	Yamato Holdings Co. Ltd.		Air Freight & Logistics		33,600		528,176
	Yamato Kogyo Co. Ltd.		Metals & Mining		2,400		41,217
	Yamazaki Baking Co. Ltd.		Food Products		12,000		250,882
	Yaoko Co. Ltd.		Food & Staples Retailing		2,400		148,284
	YASKAWA Electric Corp.		Machinery		24,000		661,609
	Yokogawa Electric Corp.		Electronic Equipment, Instruments & Components		24,000		289,676
	Yokohama Rubber Co. Ltd.		Auto Components		9,600		119,428
	Z Holdings Corp.		Interactive Media & Services		249,600		804,602
	Zenkoku Hosho Co. Ltd.		Diversified Financial Services		4,800		150,952
	Zensho Holdings Co. Ltd.		Hotels, Restaurants & Leisure		9,600		183,276
	Zeon Corp.		Chemicals		14,400		108,579
	Zozo Inc.		Internet & Direct Marketing Retail		9,600		129,032

	Total Investments before Short Term Investments (Cost $391,126,755)						311,631,698

	Short Term Investment 0.0%^†
	United States 0.0%^†
b,c	Institutional Fiduciary Trust Portfolio, 0.32%				124,941		124,941

	Total Investments (Cost $391,251,696) 98.7%						311,756,639
	Other Assets, less Liabilities 1.3%						4,094,017

	Net Assets 100.0%					$	315,850,656

See Abbreviations on page 351.

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^bSee Note 3(c) regarding investments in affiliated management investment companies.

^cThe rate shown is the annualized seven-day effective yield at period end.



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan ETF (continued)

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

Nikkei 225 Mini

Long

224

3,925,784

6/11/20

(62,697

)

*As of period end.

See Note 8 regarding other derivative information.



256	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Japan Hedged ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.12		$	25.11		$	25.91


Income from investment operations^b:

Net investment income^c		0.38			0.38			0.32

Net realized and unrealized gains (losses)		(2.15	)		(1.11	)		(1.11	)


Total from investment operations		(1.77	)		(0.73	)		(0.79	)


Less distributions from:

Net investment income		—			(0.01	)		(0.01	)

Net realized gains		—			(1.25	)		—	^d


Total distributions		—			(1.26	)		(0.01	)


Net asset value, end of year	$	21.35		$	23.12		$	25.11


Total return^e		(7.66)%			(2.59)%			(3.04)%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%

Expenses net waiver and payments by affiliates		0.09%			0.09%			—%

Net investment income		1.59%			1.51%			3.10%

Supplemental data

Net assets, end of year (000’s)		$4,269			$13,870			$45,197

Portfolio turnover rate^g		10.06%	^h		19.78%			1.92%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.001 per share.

^fRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

^gPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 10.06%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	257

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Japan Hedged ETF



	Industry		Shares		Value
Common Stocks 98.5%
Japan 98.5%
ABC-Mart Inc.		Specialty Retail		34	$	1,704
Acom Co. Ltd.		Consumer Finance		568		2,310
Advantest Corp.		Semiconductors & Semiconductor Equipment		250		10,051
AEON Co. Ltd.		Food & Staples Retailing		968		21,511
AEON Financial Service Co. Ltd.		Consumer Finance		134		1,437
AEON Mall Co. Ltd.		Real Estate Management & Development		168		2,121
AGC Inc.		Building Products		234		5,764
Aica Kogyo Co. Ltd.		Building Products		18		516
AIN Holdings Inc.		Food & Staples Retailing		34		2,000
Air Water Inc.		Chemicals		200		2,753
Aisin Seiki Co. Ltd.		Auto Components		214		5,281
Ajinomoto Co. Inc.		Food Products		614		11,435
Alfresa Holdings Corp.		Health Care Providers & Services		200		3,731
Alps Alpine Co. Ltd.		Electronic Equipment, Instruments & Components		268		2,604
Amada Co. Ltd.		Machinery		434		3,429
Amano Corp.		Electronic Equipment, Instruments & Components		100		2,211
ANA Holdings Inc.		Airlines		142		3,471
Anritsu Corp.		Electronic Equipment, Instruments & Components		150		2,787
Aozora Bank Ltd.		Banks		168		3,209
Ariake Japan Co. Ltd.		Food Products		24		1,516
Asahi Group Holdings Ltd.		Beverages		481		15,639
Asahi Intecc Co. Ltd.		Health Care Equipment & Supplies		275		6,807
Asahi Kasei Corp.		Chemicals		1,661		11,767
Asics Corp.		Textiles, Apparel & Luxury Goods		200		1,851
ASKUL Corp.		Internet & Direct Marketing Retail		34		1,008
Astellas Pharma Inc.		Pharmaceuticals		2,500		38,697
Autobacs Seven Co. Ltd.		Specialty Retail		68		785
Azbil Corp.		Electronic Equipment, Instruments & Components		168		4,364
Bandai Namco Holdings Inc.		Leisure Equipment & Products		245		11,894
Benefit One Inc.		Professional Services		68		888
Benesse Holdings Inc.		Diversified Consumer Services		100		2,548
BIC CAMERA Inc.		Specialty Retail		168		1,362
Bridgestone Corp.		Auto Components		746		22,963
Brother Industries Ltd.		Technology Hardware, Storage & Peripherals		300		4,596
Calbee Inc.		Food Products		100		2,706
CANON Inc.		Technology Hardware, Storage & Peripherals		1,300		28,407
Canon Marketing Japan Inc.		Electronic Equipment, Instruments & Components		68		1,351
Capcom Co. Ltd.		Entertainment		113		3,548
Casio Computer Co. Ltd.		Household Durables		268		3,766
Central Japan Railway Co.		Road & Rail		243		38,986
Chubu Electric Power Co. Inc.		Electric Utilities		885		12,498
Chugai Pharmaceutical Co. Ltd.		Pharmaceuticals		273		31,610
Chuo Mitsui Trust Holdings Inc.		Banks		468		13,543
Citizen Watch Co. Ltd.		Electronic Equipment, Instruments & Components		534		1,899
Coca-Cola Bottlers Japan Holdings Inc.		Beverages		168		3,453
COMSYS Holdings Corp.		Construction & Engineering		134		3,454
Concordia Financial Group Ltd.		Banks		1,468		4,283
Cosmo Energy Holdings Co. Ltd.		Oil, Gas & Consumable Fuels		80		1,127
Cosmos Pharmaceutical Corp.		Food & Staples Retailing		11		2,627
Credit Saison Co. Ltd.		Consumer Finance		200		2,327
CyberAgent Inc.		Media		124		4,813
Dai Nippon Printing Co. Ltd.		Commercial Services & Supplies		368		7,844
Daicel Corp.		Chemicals		368		2,690
Daido Steel Co. Ltd.		Metals & Mining		42		1,354
Daifuku Co. Ltd.		Machinery		120		7,614
Daiichi Sankyo Co. Ltd.		Pharmaceuticals		828		57,018
Daiichikosho Co. Ltd.		Entertainment		34		907
Daikin Industries Ltd.		Building Products		341		41,600



258	Annual Report	franklintempleton.com

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STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Daishi Hokuetsu Financial Group Inc.		Banks		34	$	744
Daito Trust Construction Co. Ltd.		Real Estate Management & Development		86		8,018
Daiwa House Industry Co. Ltd.		Real Estate Management & Development		818		20,288
Daiwa Securities Group Inc.		Capital Markets		2,034		7,898
DeNA Co. Ltd.		Entertainment		134		1,467
Denka Co. Ltd.		Chemicals		100		2,109
Denso Corp.		Auto Components		624		20,179
Dentsu Group Inc.		Media		275		5,316
DIC Corp.		Chemicals		100		2,217
Disco Corp.		Semiconductors & Semiconductor Equipment		34		6,727
DMG Mori Co. Ltd.		Machinery		134		1,120
Dowa Holdings Co. Ltd.		Metals & Mining		68		1,782
East Japan Railway Co.		Road & Rail		472		35,747
EBARA Corp.		Machinery		134		2,553
Eisai Co. Ltd.		Pharmaceuticals		332		24,391
Electric Power Development Co. Ltd.		Independent Power and Renewable Electricity Producers		200		4,035
Ezaki Glico Co. Ltd.		Food Products		68		2,860
FamilyMart Co. Ltd.		Food & Staples Retailing		286		5,134
Fancl Corp.		Personal Products		83		1,866
FANUC Corp.		Machinery		253		34,345
Fast Retailing Co. Ltd.		Specialty Retail		65		26,607
FP Corp.		Containers & Packaging		34		2,258
Fuji Electric Co. Ltd.		Electrical Equipment		168		3,811
Fuji Media Holdings Inc.		Media		68		678
Fuji Oil Holdings Inc.		Food Products		68		1,643
Fuji Seal International Inc.		Containers & Packaging		68		1,204
FUJIFILM Holdings Corp.		Technology Hardware, Storage & Peripherals		456		22,974
Fujikura Ltd.		Electrical Equipment		434		1,258
Fujitsu General Ltd.		Household Durables		68		1,230
Fujitsu Ltd.		IT Services		240		21,687
Fukuoka Financial Group Inc.		Banks		200		2,651
Fukuyama Transporting Co. Ltd.		Road & Rail		34		1,217
Furukawa Electric Co. Ltd.		Electrical Equipment		78		1,420
Fuyo General Lease Co. Ltd.		Diversified Financial Services		25		1,269
Glory Ltd.		Machinery		68		1,568
GMO Internet Inc.		IT Services		100		1,682
GMO Payment Gateway Inc.		IT Services		52		3,651
Goldwin Inc.		Textiles, Apparel & Luxury Goods		44		2,454
GS Yuasa Corp.		Electrical Equipment		100		1,347
GungHo Online Entertainment Inc.		Entertainment		50		700
Gunma Bank Ltd.		Banks		634		1,926
H2O Retailing Corp.		Multiline Retail		100		733
Hachijuni Bank Ltd.		Banks		568		2,057
Hakuhodo DY Holdings Inc.		Media		300		3,029
Hamamatsu Photonics K.K.		Electronic Equipment, Instruments & Components		168		6,878
Hankyu Hanshin Holdings Inc.		Road & Rail		275		9,260
Haseko Corp.		Household Durables		368		3,944
Heiwa Corp.		Leisure Equipment & Products		68		1,273
Hikari Tsushin Inc.		Specialty Retail		29		4,870
Hino Motors Ltd.		Machinery		368		1,981
Hirose Electric Co. Ltd.		Electronic Equipment, Instruments & Components		42		4,357
HIS Co. Ltd.		Hotels, Restaurants & Leisure		34		445
Hisamitsu Pharmaceutical Co. Inc.		Pharmaceuticals		100		4,669
Hitachi Capital Corp.		Consumer Finance		68		1,283
Hitachi Chemical Co. Ltd.		Chemicals		134		5,697
Hitachi Construction Machinery Co. Ltd.		Machinery		134		2,717
Hitachi High-Tech Corp.		Electronic Equipment, Instruments & Components		80		5,914
Hitachi Ltd.		Electronic Equipment, Instruments & Components		1,200		34,937



franklintempleton.com	Annual Report	259

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STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Hitachi Metals Ltd.		Metals & Mining		268	$	2,828
	Hitachi Transport System Ltd.		Road & Rail		52		1,131
	Hokugin Financial Group Inc.		Banks		134		1,202
	Hokuriku Electric Power Co.		Electric Utilities		200		1,402
	Honda Motor Co. Ltd.		Automobiles		2,256		50,781
	HORIBA Ltd.		Electronic Equipment, Instruments & Components		46		2,292
	Hoshizaki Corp.		Machinery		68		5,108
	House Foods Group Inc.		Food Products		100		3,265
	Hoya Corp.		Health Care Equipment & Supplies		484		41,247
	Ibiden Co. Ltd.		Electronic Equipment, Instruments & Components		134		2,943
	Ichigo Inc.		Real Estate Management & Development		200		463
	Idemitsu Kosan Co. Ltd.		Oil, Gas & Consumable Fuels		297		6,817
	IHI Corp.		Machinery		168		1,964
	Iida Group Holdings Co. Ltd.		Household Durables		168		2,330
	INPEX Corp.		Oil, Gas & Consumable Fuels		1,160		6,542
	Isetan Mitsukoshi Holdings Ltd.		Multiline Retail		534		3,116
	Isuzu Motors Ltd.		Automobiles		634		4,201
	Ito En Ltd.		Beverages		68		3,603
	ITOCHU Corp.		Trading Companies & Distributors		1,738		36,103
	ITOCHU Techno-Solutions Corp.		IT Services		150		4,287
	Itoham Yonekyu Holdings Inc.		Food Products		368		2,171
	Izumi Co. Ltd.		Multiline Retail		52		1,435
	J Front Retailing Co. Ltd.		Multiline Retail		300		2,496
	Japan Airlines Co. Ltd.		Airlines		146		2,691
	Japan Airport Terminal Co. Ltd.		Transportation Infrastructure		68		2,630
	Japan Aviatn Elect		Electronic Equipment, Instruments & Components		68		820
	Japan Exchange Group Inc.		Capital Markets		668		11,794
	Japan Petroleum Exploration Co. Ltd.		Oil, Gas & Consumable Fuels		34		560
	Japan Post Bank Co. Ltd.		Banks		625		5,772
	Japan Post Holdings Co. Ltd.		Insurance		1,634		12,800
	Japan Post Insurance Co. Ltd.		Insurance		249		3,093
	Japan Tobacco Inc.		Tobacco		1,600		29,583
	JCR Pharmaceuticals Co., Ltd.		Pharmaceuticals		25		2,181
	JFE Holdings Inc.		Metals & Mining		653		4,252
	JGC Holdings Corp.		Construction & Engineering		268		2,155
	JSR Corp.		Chemicals		234		4,320
	JTEKT Corp.		Auto Components		300		2,043
	Justsystems Corp.		Software		50		2,276
	JXTG Holdings Inc.		Oil, Gas & Consumable Fuels		4,016		13,772
	K’s Holdings Corp.		Specialty Retail		234		2,217
	Kagome Co. Ltd.		Food Products		100		2,598
	Kajima Corp.		Construction & Engineering		568		5,835
	Kakaku.com Inc.		Interactive Media & Services		168		3,089
	Kaken Pharmaceutical Co. Ltd.		Pharmaceuticals		40		1,864
	Kamigumi Co. Ltd.		Transportation Infrastructure		134		2,269
	Kandenko Co. Ltd.		Construction & Engineering		134		1,069
	Kaneka Corp.		Chemicals		68		1,631
	Kansai Electric Power Co. Inc.		Electric Utilities		920		10,256
	Kansai Mirai Financial Group Inc		Banks		200		721
	Kansai Paint Co. Ltd.		Chemicals		247		4,709
	KAO Corp.		Personal Products		606		49,567
	Kawasaki Heavy Industries Ltd.		Machinery		178		2,587
a	Kawasaki Kisen Kaisha Ltd.		Marine		100		752
	KDDI Corp.		Wireless Telecommunication Services		2,199		64,979
	Keihan Holdings Co. Ltd.		Industrial Conglomerates		123		5,469
	Keikyu Corp.		Road & Rail		300		5,049
	Keio Corp.		Road & Rail		145		8,583
	Keisei Electric Railway Co. Ltd.		Road & Rail		176		5,087



260	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Kewpie Corp.		Food Products		134	$	2,682
	Keyence Corp.		Electronic Equipment, Instruments & Components		234		75,496
	Kikkoman Corp.		Food Products		234		9,982
	Kinden Corp.		Construction & Engineering		168		2,482
	Kintetsu Group Holdings Co. Ltd.		Road & Rail		224		10,375
	Kirin Holdings Co. Ltd.		Beverages		1,016		20,117
	Kissei Pharmaceutical Co. Ltd.		Pharmaceuticals		34		876
	Kobayashi Pharmaceutical Co. Ltd.		Personal Products		76		7,040
	Kobe Bussan Co Ltd		Food & Staples Retailing		50		1,973
	Kobe Steel Ltd.		Metals & Mining		400		1,238
	Koei Tecmo Holdings Co. Ltd.		Entertainment		84		2,167
	Koito Manufacturing Co. Ltd.		Auto Components		142		4,808
	Kokuyo Co. Ltd.		Commercial Services & Supplies		100		1,401
	Komatsu Ltd.		Machinery		1,149		18,929
	Konami Holdings Corp.		Entertainment		119		3,654
	Konica Minolta Inc.		Technology Hardware, Storage & Peripherals		568		2,310
	KOSE Corp.		Personal Products		36		4,445
	Kotobuki Spirits Co. Ltd.		Food Products		25		1,127
	Kubota Corp.		Machinery		1,396		17,865
	Kuraray Co. Ltd.		Chemicals		434		4,390
	Kurita Water Industries Ltd.		Machinery		134		3,101
	Kusuri No Aoki Holdings Co. Ltd.		Food & Staples Retailing		10		832
	Kyocera Corp.		Electronic Equipment, Instruments & Components		386		22,912
	Kyoritsu Maintenance Co. Ltd.		Hotels, Restaurants & Leisure		34		751
	Kyowa Exeo Corp.		Construction & Engineering		134		2,987
	Kyowa Kirin Co. Ltd.		Pharmaceuticals		284		6,372
	Kyudenko Corp.		Construction & Engineering		45		1,218
	Kyushu Electric Power Co. Inc.		Electric Utilities		668		5,377
	Kyushu Financial Group Inc.		Banks		468		1,790
	Kyushu Railway Co.		Road & Rail		200		5,743
	Lasertec Corp.		Semiconductors & Semiconductor Equipment		100		4,687
	Lawson Inc.		Food & Staples Retailing		68		3,735
a	Line Corp.		Interactive Media & Services		68		3,282
	LINTEC Corp.		Chemicals		68		1,432
	Lion Corp.		Household Products		314		6,728
	LIXIL Group Corp.		Building Products		334		4,161
	M3 Inc.		Health Care Technology		527		15,597
	Mabuchi Motor Co. Ltd.		Electrical Equipment		68		2,028
	Maeda Corp.		Construction & Engineering		168		1,240
	Maeda Road Construction Co. Ltd.		Construction & Engineering		68		1,273
	Makita Corp.		Machinery		307		9,427
	Mani Inc.		Health Care Equipment & Supplies		100		2,454
	Marubeni Corp.		Trading Companies & Distributors		2,068		10,325
	Maruha Nichiro Corp.		Food Products		43		899
	Marui Group Co. Ltd.		Multiline Retail		268		4,506
	Maruichi Steel Tube Ltd.		Metals & Mining		78		1,878
	Matsui Securities Co. Ltd.		Capital Markets		134		984
	Matsumotokiyoshi Holdings Co. Ltd.		Food & Staples Retailing		100		3,640
	Mazda Motor Corp.		Automobiles		724		3,836
	Mebuki Financial Group Inc.		Banks		1,168		2,380
	Medipal Holdings Corp.		Health Care Providers & Services		150		2,804
	Megmilk Snow Brand Co. Ltd.		Food Products		46		1,047
	Meiji Holdings Co. Ltd.		Food Products		168		11,952
	Minebea Mitsumi Inc.		Machinery		534		7,984
	Miraca Holdings Inc.		Health Care Providers & Services		68		1,435
	MISUMI Group Inc.		Machinery		395		8,617
	Mitsubishi Chemical Holdings Corp.		Chemicals		1,700		10,122
	Mitsubishi Corp.		Trading Companies & Distributors		1,526		32,392



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STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Mitsubishi Electric Corp.		Electrical Equipment		2,587	$	31,992
Mitsubishi Estate Co. Ltd.		Real Estate Management & Development		1,488		21,985
Mitsubishi Gas Chemical Co. Inc.		Chemicals		234		2,549
Mitsubishi Heavy Industries Ltd.		Machinery		360		9,112
Mitsubishi Logistics Corp.		Transportation Infrastructure		81		1,637
Mitsubishi Materials Corp.		Metals & Mining		168		3,447
Mitsubishi Motors Corp.		Automobiles		1,000		2,835
Mitsubishi Shokuhin Co. Ltd.		Food & Staples Retailing		34		875
Mitsubishi UFJ Financial Group Inc.		Banks		16,000		59,729
Mitsubishi UFJ Lease & Finance Co. Ltd.		Diversified Financial Services		534		2,632
Mitsui & Co. Ltd.		Trading Companies & Distributors		2,237		31,155
Mitsui Chemicals Inc.		Chemicals		234		4,446
Mitsui Fudosan Co. Ltd.		Real Estate Management & Development		1,181		20,463
Mitsui Mining and Smelting Co. Ltd.		Metals & Mining		68		1,138
Mitsui O.S.K. Lines Ltd.		Marine		134		2,169
Miura Co. Ltd.		Machinery		134		4,785
Mizuho Financial Group Inc.		Banks		33,200		38,011
Mochida Pharmaceutical Co. Ltd.		Pharmaceuticals		34		1,313
Monotaro Co. Ltd.		Trading Companies & Distributors		145		3,852
Morinaga & Co. Ltd.		Food Products		51		2,088
Morinaga Milk Industry Co. Ltd.		Food Products		52		2,013
MS&AD Insurance Group Holdings Inc.		Insurance		618		17,317
Murata Manufacturing Co. Ltd.		Electronic Equipment, Instruments & Components		738		37,408
Nabtesco Corp.		Machinery		144		3,328
Nagase & Co. Ltd.		Trading Companies & Distributors		134		1,588
Nagoya Railroad Co. Ltd.		Road & Rail		244		6,848
Nankai Electric Railway Co. Ltd.		Road & Rail		134		3,054
NEC Corp.		IT Services		315		11,511
Net One Systems Co. Ltd.		IT Services		100		2,082
Nexon Co. Ltd.		Entertainment		518		8,469
NGK Insulators Ltd.		Machinery		368		4,830
NGK Spark Plug Co. Ltd.		Auto Components		247		3,482
NH Foods Ltd.		Food Products		134		4,673
NHK Spring Co. Ltd.		Auto Components		200		1,312
Nichirei Corp.		Food Products		134		3,792
Nidec Corp.		Electrical Equipment		600		31,163
Nifco Inc.		Auto Components		100		1,797
Nihon Kohden Corp.		Health Care Equipment & Supplies		100		3,761
Nihon M&A Center Inc.		Professional Services		168		4,599
Nihon Unisys Ltd.		IT Services		78		2,090
Nikon Corp.		Household Durables		534		4,937
Nintendo Co. Ltd.		Entertainment		139		53,576
Nippo Corp.		Construction & Engineering		68		1,499
Nippon Electric Glass Co. Ltd.		Electronic Equipment, Instruments & Components		100		1,341
Nippon Express Co. Ltd.		Road & Rail		100		4,900
Nippon Kayaku Co. Ltd.		Chemicals		200		1,843
Nippon Paint Holdings Co. Ltd.		Chemicals		200		10,486
Nippon Paper Industries Co. Ltd.		Paper & Forest Products		114		1,625
Nippon Shinyaku Co. Ltd.		Pharmaceuticals		64		5,027
Nippon Shobukai Co. Ltd.		Chemicals		39		1,788
Nippon Steel Corp.		Metals & Mining		1,125		9,644
Nippon Telegraph & Telephone Corp.		Diversified Telecommunication Services		1,562		37,265
Nippon Television Holdings Inc.		Media		68		759
Nippon Yusen KK		Marine		200		2,383
Nipro Corp.		Health Care Equipment & Supplies		134		1,578
Nishi-Nippon Financial Holdings Inc.		Banks		200		1,130
Nishi-Nippon Railroad Co. Ltd.		Road & Rail		100		2,461
Nissan Chemical Corp.		Chemicals		168		6,131
Nissan Motor Co. Ltd.		Automobiles		2,546		8,410



262	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Nissan Shatai Co. Ltd.		Automobiles		68	$	591
	Nisshin Seifun Group Inc.		Food Products		316		5,275
	Nisshinbo Holdings Inc.		Industrial Conglomerates		168		1,122
	Nissin Foods Holdings Co. Ltd.		Food Products		88		7,336
	Nitori Co. Ltd.		Specialty Retail		93		12,560
	Nitto Denko Corp.		Chemicals		195		8,715
	Noevir Holdings Co. Ltd.		Personal Products		23		1,176
	NOF Corp.		Chemicals		100		3,177
	NOK Corp.		Auto Components		168		1,857
	Nomura Holdings Inc.		Capital Markets		3,900		16,539
	Nomura Real Estate Holdings Inc.		Real Estate Management & Development		134		2,178
	Nomura Research Institute Ltd.		IT Services		302		6,401
	NS Solutions Corp.		IT Services		34		829
	NSK Ltd.		Machinery		568		3,651
	NTN Corp.		Machinery		634		1,110
	NTT Data Corp.		IT Services		900		8,670
	NTT DOCOMO Inc.		Wireless Telecommunication Services		1,517		47,454
	Obayashi Corp.		Construction & Engineering		968		8,303
	OBIC Business Consultants Co. Ltd.		Software		21		852
	OBIC Co. Ltd.		IT Services		83		10,887
	Odakyu Electric Railway Co. Ltd.		Road & Rail		380		8,349
	Oji Holdings Corp.		Paper & Forest Products		1,200		6,436
	Okuma Corp.		Machinery		34		1,098
	Olympus Corp.		Health Care Equipment & Supplies		1,412		20,430
	Omron Corp.		Electronic Equipment, Instruments & Components		234		12,203
	Ono Pharmaceutical Co. Ltd.		Pharmaceuticals		551		12,689
	Open House Co. Ltd.		Real Estate Management & Development		68		1,402
	Oracle Corp. Japan		Software		40		3,498
	Orient Corp.		Consumer Finance		800		897
	Oriental Land Co. Ltd.		Hotels, Restaurants & Leisure		245		31,364
	ORIX Corp.		Diversified Financial Services		1,617		19,480
	Osaka Gas Co. Ltd.		Gas Utilities		500		9,430
	OSG Corp.		Machinery		100		1,340
	Otsuka Corp.		IT Services		134		5,735
	Otsuka Holdings Co. Ltd.		Pharmaceuticals		526		20,615
	Paltac Corp.		Distributors		40		1,997
	Pan Pacific International Holdings Corp.		Multiline Retail		632		11,995
	Panasonic Corp.		Household Durables		2,700		20,634
	Park24 Co. Ltd.		Commercial Services & Supplies		143		2,108
	Penta-Ocean Construction Co. Ltd.		Construction & Engineering		334		1,760
a	PeptiDream Inc.		Biotechnology		105		3,667
	Persol Holdings Co. Ltd.		Professional Services		210		2,113
	Pigeon Corp.		Household Products		134		5,145
	Pilot Corp.		Commercial Services & Supplies		41		1,365
	Pola Orbis Holdings Inc.		Personal Products		70		1,294
	Rakuten Inc.		Internet & Direct Marketing Retail		993		7,543
	Recruit Holdings Co. Ltd.		Professional Services		1,671		43,278
	Relo Group Inc.		Real Estate Management & Development		134		2,814
a	Renesas Electronics Corp.		Semiconductors & Semiconductor Equipment		1,000		3,603
	Rengo Co. Ltd.		Containers & Packaging		268		2,090
	Resona Holdings Inc.		Banks		2,834		8,537
	Resorttrust Inc.		Hotels, Restaurants & Leisure		68		665
	Ricoh Co. Ltd.		Technology Hardware, Storage & Peripherals		859		6,318
	Rinnai Corp.		Household Durables		44		3,118
	Rohm Co. Ltd.		Semiconductors & Semiconductor Equipment		109		5,987
	Rohto Pharmaceutical Co. Ltd.		Personal Products		134		3,674
	Ryohin Keikaku Co. Ltd.		Multiline Retail		300		3,374
	Sankyo Co. Ltd.		Leisure Equipment & Products		68		1,981



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STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Sankyu Inc.		Road & Rail		68	$	2,542
	Sanrio Co. Ltd.		Specialty Retail		68		905
	Santen Pharmaceutical Co. Ltd.		Pharmaceuticals		448		7,711
	Sanwa Holdings Corp.		Building Products		234		1,829
	Sapporo Holdings Ltd.		Beverages		68		1,255
	Sawai Pharmaceutical Co. Ltd.		Pharmaceuticals		47		2,512
	SBI Holdings Inc.		Capital Markets		278		4,064
	SCREEN Holdings Co. Ltd.		Semiconductors & Semiconductor Equipment		48		1,779
	SCSK Corp.		IT Services		56		2,498
	Secom Co. Ltd.		Commercial Services & Supplies		244		20,283
	Sega Sammy Holdings Inc.		Leisure Equipment & Products		234		2,850
	Seibu Holdings Inc.		Road & Rail		268		2,949
	Seiko Epson Corp.		Technology Hardware, Storage & Peripherals		334		3,620
	Seino Holdings Co. Ltd.		Road & Rail		200		2,173
	Sekisui Chemical Co. Ltd.		Household Durables		468		6,212
	Sekisui House Ltd.		Household Durables		734		12,133
	Seven & i Holdings Co. Ltd.		Food & Staples Retailing		1,008		33,390
	Seven Bank Ltd.		Banks		768		1,985
	SG Holdings Co. Ltd.		Air Freight & Logistics		268		6,388
	Sharp Corp.		Household Durables		200		2,103
	Shikoku Electric Power Co. Inc.		Electric Utilities		200		1,582
	Shimadzu Corp.		Electronic Equipment, Instruments & Components		334		8,802
	Shimamura Co. Ltd.		Specialty Retail		34		2,053
	SHIMANO Inc.		Leisure Equipment & Products		100		14,302
	Shimizu Corp.		Construction & Engineering		734		5,745
	Shin-Etsu Chemical Co. Ltd.		Chemicals		520		51,685
a	Shinsei Bank Ltd.		Banks		300		4,007
	Shionogi & Co. Ltd.		Pharmaceuticals		353		17,386
	Ship Healthcare Holdings Inc.		Health Care Providers & Services		50		2,050
	Shiseido Co. Ltd.		Personal Products		502		29,677
	SHO-BOND Holdings Co. Ltd.		Construction & Engineering		68		2,721
	Shochiku Co. Ltd.		Entertainment		14		1,572
	Shoei Co. Ltd.		Real Estate Management & Development		434		4,414
	Showa Denko K.K.		Chemicals		178		3,688
	Sky Perfect JSAT Holdings Inc.		Media		368		1,309
	Skylark Holdings Co. Ltd.		Hotels, Restaurants & Leisure		234		3,472
	SMC Corp.		Machinery		73		30,937
	SMS Co. Ltd.		Professional Services		100		1,939
	Softbank Corp.		Wireless Telecommunication Services		2,131		27,132
	SoftBank Group Corp.		Wireless Telecommunication Services		2,088		73,265
	Sohgo Security Services Co. Ltd.		Commercial Services & Supplies		82		3,995
	Sojitz Corp.		Trading Companies & Distributors		1,568		3,689
	Sompo Holdings Inc.		Insurance		434		13,440
	Sony Corp.		Household Durables		1,608		95,641
	Sony Financial Holdings Inc.		Insurance		230		3,892
	Sotetsu Holdings Inc.		Road & Rail		100		2,569
	Square Enix Holdings Co. Ltd.		Entertainment		100		4,469
	Stanley Electric Co. Ltd.		Auto Components		179		3,535
	Subaru Corp.		Automobiles		803		15,423
	Sugi Pharmacy Co. Ltd.		Food & Staples Retailing		41		2,191
	Sumco Corp.		Semiconductors & Semiconductor Equipment		350		4,516
	Sumitomo Bakelite Co. Ltd.		Chemicals		34		723
	Sumitomo Chemical Co. Ltd.		Chemicals		2,100		6,244
	Sumitomo Corp.		Trading Companies & Distributors		1,500		17,216
	Sumitomo Dainippon Pharma Co. Ltd.		Pharmaceuticals		200		2,599
	Sumitomo Electric Industries Ltd.		Auto Components		934		9,846
	Sumitomo Forestry Co. Ltd.		Household Durables		168		2,155
	Sumitomo Heavy Industries Ltd.		Machinery		134		2,422



264	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Japan (continued)
	Sumitomo Metal Mining Co. Ltd.		Metals & Mining		300	$	6,164
	Sumitomo Mitsui Financial Group Inc.		Banks		1,672		40,625
	Sumitomo Osaka Cement Co. Ltd.		Construction Materials		41		1,231
	Sumitomo Realty & Development Co. Ltd.		Real Estate Management & Development		495		12,082
	Sumitomo Rubber Industries Ltd.		Auto Components		234		2,209
	Sundrug Co. Ltd.		Food & Staples Retailing		77		2,468
	Suntory Beverage & Food Ltd.		Beverages		183		6,925
	Sushiro Global Holdings Ltd		Hotels, Restaurants & Leisure		140		2,063
	Suzuken Co. Ltd.		Health Care Providers & Services		100		3,645
	Suzuki Motor Corp.		Automobiles		583		13,957
	Sysmex Corp.		Health Care Equipment & Supplies		238		17,298
	T&D Holdings Inc.		Insurance		700		5,732
	Tadano Ltd.		Machinery		134		961
	Taiheiyo Cement Corp.		Construction Materials		145		2,485
	Taisei Corp.		Construction & Engineering		268		8,205
	Taisho Pharmaceutical Holdings Co. Ltd.		Pharmaceuticals		54		3,321
	Taiyo Nippon Sanso Corp.		Chemicals		181		2,684
	Taiyo Yuden Co. Ltd.		Electronic Equipment, Instruments & Components		168		4,452
	Takara Bio Inc.		Biotechnology		68		1,405
	Takara Holdings Inc.		Beverages		200		1,501
	Takashimaya Co. Ltd.		Multiline Retail		168		1,514
	Takeda Pharmaceutical Co. Ltd.		Pharmaceuticals		1,974		60,488
	TDK Corp.		Electronic Equipment, Instruments & Components		155		12,032
	TechnoPro Holdings Inc.		Professional Services		44		2,066
	Teijin Ltd.		Chemicals		234		3,967
	Terumo Corp.		Health Care Equipment & Supplies		814		28,050
	The 77 Bank Ltd.		Banks		84		1,089
	The Bank of Kyoto Ltd.		Banks		100		3,187
	The Chiba Bank Ltd.		Banks		800		3,505
	The Chugoku Bank Ltd.		Banks		200		1,784
	The Chugoku Electric Power Co. Inc.		Electric Utilities		368		5,141
	The Dai-ichi Life Holdings Inc.		Insurance		1,368		16,417
	The Hiroshima Bank Ltd.		Banks		368		1,537
	The Iyo Bank Ltd.		Banks		434		2,199
	The Japan Steel Works Ltd.		Machinery		100		1,212
	The Shiga Bank Ltd.		Banks		68		1,618
	The Shizuoka Bank Ltd.		Banks		634		3,858
	THK Co. Ltd.		Machinery		145		2,971
	TIS Inc.		IT Services		300		4,966
	Tobu Railway Co. Ltd.		Road & Rail		268		9,359
	Toda Corp.		Construction & Engineering		300		1,748
	Toho Co. Ltd.		Entertainment		140		4,280
	Toho Gas Co. Ltd.		Gas Utilities		109		4,947
	Tohoku Electric Power Co. Inc.		Electric Utilities		568		5,477
	Tokai Carbon Co. Ltd.		Chemicals		234		1,933
	Tokai Rika Co. Ltd.		Auto Components		68		848
	Tokio Marine Holdings Inc.		Insurance		832		38,149
	Tokuyama Corp.		Chemicals		100		1,938
	Tokyo Broadcasting System Holdings Inc.		Media		68		947
	Tokyo Century Corp.		Diversified Financial Services		68		2,132
a	Tokyo Electric Power Co. Holdings Inc.		Electric Utilities		2,100		7,334
	Tokyo Electron Ltd.		Semiconductors & Semiconductor Equipment		197		37,145
	Tokyo Gas Co. Ltd.		Gas Utilities		544		12,880
	Tokyo Tatemono Co. Ltd.		Real Estate Management & Development		268		2,847
	TOKYU Corp.		Road & Rail		716		11,275
	Tokyu Fudosan Holdings Corp.		Real Estate Management & Development		868		4,165
	Topcon Corp.		Electronic Equipment, Instruments & Components		134		996
	Toppan Printing Co. Ltd.		Commercial Services & Supplies		334		5,124



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FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)



	Industry		Shares		Value
Common Stocks (continued)
Japan (continued)
Toray Industries Inc.		Chemicals		2,000	$	8,689
Toshiba Corp.		Industrial Conglomerates		591		13,029
Tosoh Corp.		Chemicals		368		4,193
TOTO Ltd.		Building Products		179		5,961
Toyo Seikan Group Holdings Ltd.		Containers & Packaging		200		2,286
Toyo Suisan Kaisha Ltd.		Food Products		111		5,367
Toyo Tire Corp.		Auto Components		134		1,539
Toyobo Co. Ltd.		Chemicals		100		1,059
Toyoda Gosei Co. Ltd.		Auto Components		100		1,717
Toyota Boshoku Corp.		Auto Components		68		811
Toyota Industries Corp.		Auto Components		200		9,597
Toyota Motor Corp.		Automobiles		3,195		192,401
Toyota Tsusho Corp.		Trading Companies & Distributors		300		7,075
Trend Micro Inc.		Software		142		7,024
TS TECH Co. Ltd.		Auto Components		100		2,370
Tsumura & Co.		Pharmaceuticals		100		2,549
Tsuruha Holdings Inc.		Food & Staples Retailing		46		6,076
TV Asahi Holdings Corp.		Media		34		514
Ube Industries Ltd.		Chemicals		134		2,057
Ulvac Inc.		Semiconductors & Semiconductor Equipment		68		1,631
Unicharm Corp.		Household Products		487		18,275
Ushio Inc.		Electrical Equipment		134		1,282
USS Co. Ltd.		Specialty Retail		268		3,689
Wacoal Corp.		Textiles, Apparel & Luxury Goods		68		1,478
Welcia Holdings Co. Ltd.		Food & Staples Retailing		68		4,756
West Japan Railway Co.		Road & Rail		230		15,757
Yakult Honsha Co. Ltd.		Food Products		153		9,056
Yamada Denki Co. Ltd.		Specialty Retail		1,000		3,992
Yamaguchi Financial Group Inc.		Banks		268		1,519
Yamaha Corp.		Leisure Equipment & Products		200		7,809
Yamaha Motor Co. Ltd.		Automobiles		349		4,225
Yamato Holdings Co. Ltd.		Air Freight & Logistics		446		7,011
Yamato Kogyo Co. Ltd.		Metals & Mining		34		584
Yamazaki Baking Co. Ltd.		Food Products		168		3,512
Yaoko Co. Ltd.		Food & Staples Retailing		34		2,101
YASKAWA Electric Corp.		Machinery		300		8,270
Yokogawa Electric Corp.		Electronic Equipment, Instruments & Components		300		3,621
Yokohama Rubber Co. Ltd.		Auto Components		134		1,667
Z Holdings Corp.		Interactive Media & Services		3,434		11,070
Zenkoku Hosho Co. Ltd.		Diversified Financial Services		68		2,139
Zensho Holdings Co. Ltd.		Hotels, Restaurants & Leisure		113		2,157
Zeon Corp.		Chemicals		168		1,267
Zozo Inc.		Internet & Direct Marketing Retail		134		1,801

Total Investments (Cost $5,376,088) 98.5%						4,204,422
Other Assets, less Liabilities 1.5%						64,972

Net Assets 100.0%					$	4,269,394

See Abbreviations on page 351.

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.



266	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Japan Hedged ETF (continued)

At March 31, 2020 the Fund had the following forward exchange contracts outstanding. See Note 1(c).


Forward Exchange Contracts

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Japanese Yen		BOFA		Buy		142,702,000	$	1,317,107		4/02/20	$	4,758	$	—
Japanese Yen		UBSW		Buy		142,702,000		1,321,892		4/02/20		—		(27	)
Japanese Yen		DBAB		Buy		142,702,000		1,321,866		4/02/20		—		—
Japanese Yen		HSBK		Buy		142,702,000		1,321,884		4/02/20		—		(18	)
Japanese Yen		MSCO		Buy		58,378,000		540,776		4/02/20		—		(14	)
Japanese Yen		MSCO		Sell		58,378,000		542,098		4/02/20		1,336		—
Japanese Yen		BOFA		Sell		142,702,000		1,325,187		4/02/20		3,322		—
Japanese Yen		UBSW		Sell		142,702,000		1,325,165		4/02/20		3,299		—
Japanese Yen		DBAB		Sell		142,702,000		1,317,108		4/02/20		—		(4,758	)
Japanese Yen		HSBK		Sell		142,702,000		1,325,014		4/02/20		3,148		—
Japanese Yen		MSCO		Sell		55,706,000		516,809		5/07/20		—		(28	)
Japanese Yen		UBSW		Sell		136,169,000		1,263,390		5/07/20		21		—
Japanese Yen		DBAB		Sell		136,169,000		1,263,333		5/07/20		—		(35	)
Japanese Yen		HSBK		Sell		136,169,000		1,263,298		5/07/20		—		(70	)

Total Forward Exchange Contracts											$	15,884	$	(4,950	)

Net unrealized appreciation (depreciation)													$	10,934

^aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

Nikkei 225 Mini

Long

52,577

6/11/20

(114

)

*As of period end.

See Note 8 regarding other derivative information.



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FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Latin America ETF



	Year Ended March 31,

	2020			2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	26.41		$	26.17


Income from investment operations^b:

Net investment income^c		0.77			0.38

Net realized and unrealized gains (losses)		(11.08	)		(0.02	)


Total from investment operations		(10.31	)		0.36


Less distributions from net investment income		(0.90	)		(0.12	)


Net asset value, end of year	$	15.20		$	26.41


Total return^d		(40.49)%			1.42%

Ratios to average net assets^e

Total expenses		0.21%			0.19%

Net investment income		2.97%			3.08%

Supplemental data

Net assets, end of year (000’s)		$1,520			$2,641

Portfolio turnover rate^f		12.74%	^g		4.08%

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 12.74%.



268	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Latin America ETF



		Industry		Shares		Value
	Common Stocks 79.0%
	Brazil 44.0%
	Aliansce Sonae Shopping Centers SA		Real Estate Management & Development		500	$	2,564
	Ambev SA		Beverages		16,300		37,461
	Atacadao Distribuicao Comercio e Industria Ltd.		Food & Staples Retailing		1,200		4,773
a	B2W Cia Digital		Internet & Direct Marketing Retail		699		6,469
	B3 SA – Brasil Bolsa Balcao		Capital Markets		7,500		51,913
	Banco Bradesco SA		Banks		3,900		14,144
	Banco BTG Pactual SA		Capital Markets		900		5,768
	Banco do Brasil SA		Banks		3,200		17,207
	Banco Santander Brasil SA		Banks		1,500		7,713
	BB Seguridade Participacoes SA		Insurance		2,500		11,978
	BR Malls Paricipacoes SA		Real Estate Management & Development		2,800		5,388
a	BRF SA		Food Products		2,100		6,110
	CCR SA		Transportation Infrastructure		4,200		9,499
	Centrais Eletricas Brasileiras SA		Electric Utilities		1,800		8,281
	Cia Brasileira de Distribuicao		Food & Staples Retailing		600		7,674
	Cia de Saneamento do Parana		Water Utilities		750		3,449
	Cia Siderurgica Nacional SA		Metals & Mining		2,300		3,095
	Cielo SA		IT Services		4,200		3,595
	Cogna Educacao		Diversified Consumer Services		6,300		4,859
	Companhia de Locacao das Americas		Road & Rail		800		1,618
	Companhia de Saneamento Basico do Estado de Sao Paulo		Water Utilities		1,300		9,803
	Companhia Energetica de Minas Gerais		Electric Utilities		300		523
	Companhia Paranaense de Energia-Copel		Electric Utilities		100		1,126
a	Cosan Logistica SA		Road & Rail		500		1,612
	Cosan SA		Oil, Gas & Consumable Fuels		600		6,219
	CPFL Energia SA		Electric Utilities		700		3,626
	CVC Brasil Operadora e Agencia de Viagens SA		Hotels, Restaurants & Leisure		400		856
	Cyrela Brazil Realty SA Empreendimentos e Participacoes		Household Durables		1,000		2,724
	Duratex SA		Paper & Forest Products		1,000		1,803
	EDP-Energias do Brasil SA		Electric Utilities		1,100		3,453
a	Embraer SA		Aerospace & Defense		2,700		4,966
	Energisa SA		Electric Utilities		700		5,102
a	Eneva SA		Independent Power and Renewable Electricity Producers		300		2,010
	Engie Brasil Energia SA		Independent Power and Renewable Electricity Producers		625		4,690
	Equatorial Energia SA		Electric Utilities		3,200		10,859
	Fleury SA		Health Care Providers & Services		800		3,122
	Grendene SA		Textiles, Apparel & Luxury Goods		900		1,307
	Guararapes Confeccoes SA		Textiles, Apparel & Luxury Goods		300		631
b,c	Hapvida Participacoes e Investimentos SA, 144A, Reg S		Health Care Providers & Services		500		4,087
	Hypera SA		Pharmaceuticals		1,500		8,268
	IRB Brasil Resseguros SA		Insurance		3,100		5,786
	Itau Unibanco Holding SA		Banks		1,900		8,089
	Klabin SA		Containers & Packaging		2,100		6,474
	Localiza Rent a Car SA		Road & Rail		2,105		10,674
	Lojas Americanas SA		Multiline Retail		808		2,251
	Lojas Renner SA		Multiline Retail		2,980		19,282
	M Dias Branco SA		Food Products		300		1,683
	Magazine Luiza SA		Multiline Retail		2,428		18,252
	Multiplan Empreendimentos Imobiliarios SA		Real Estate Management & Development		1,000		3,679
	Natura & Co Holding SA		Personal Products		2,500		12,407
	Neoenergia SA		Electric Utilities		800		2,651
	Notre Dame Intermedica Participacoes SA		Health Care Providers & Services		1,700		14,736



franklintempleton.com	Annual Report	269

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Latin America ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Brazil (continued)
	Odontoprev SA		Health Care Providers & Services		1,000	$	2,792
	Petrobras Distribuidora SA		Specialty Retail		2,600		7,775
	Petroleo Brasileiro SA		Oil, Gas & Consumable Fuels		13,900		37,895
	Porto Seguro SA		Insurance		400		3,464
	Qualicorp Consultoria E Corretora de Seguros SA		Health Care Providers & Services		900		4,095
	Raia Drogasil SA		Food & Staples Retailing		860		16,888
a	Rumo SA		Road & Rail		4,200		15,912
	Sao Martinho SA		Food Products		600		1,710
	Sul America SA		Insurance		800		5,213
	Suzano SA		Paper & Forest Products		3,019		20,833
	Telefonica Brasil SA		Diversified Telecommunication Services		100		976
	Tim Participacoes SA		Wireless Telecommunication Services		3,000		7,196
	Totvs SA		Software		600		5,400
	Transmissora Alianca de Energia Eletrica SA		Electric Utilities		800		3,984
	Ultrapar Participacoes SA		Oil, Gas & Consumable Fuels		3,164		7,644
	Vale SA		Metals & Mining		12,900		107,496
a	Via Varejo SA		Specialty Retail		1,400		1,425
	Weg SA		Electrical Equipment		2,800		18,123
	YDUQS PART		Diversified Consumer Services		900		3,847


							668,977

	Chile 7.2%
	AES Gener SA		Independent Power and Renewable Electricity Producers		10,845		1,323
	Aguas Andinas SA, A		Water Utilities		10,590		3,131
	Banco de Chile		Banks		168,619		13,671
	Banco de Credito e Inversiones SA		Banks		166		5,648
	Banco Santander Chile SA		Banks		233,065		9,024
	Cencosud SA		Food & Staples Retailing		5,024		5,247
a	Cencosud Shopping SA		Real Estate Management & Development		1,850		2,995
	Colbun SA		Independent Power and Renewable Electricity Producers		25,700		2,804
	Compania Cervecerias Unidas SA		Beverages		552		3,802
	E CL SA		Electric Utilities		1,869		2,070
a	Empresa Nacional de Telecomunicaciones SA		Wireless Telecommunication Services		529		2,247
	Empresas CMPC SA		Paper & Forest Products		4,197		9,006
	Empresas COPEC SA		Oil, Gas & Consumable Fuels		1,832		10,533
	Enel Americas SA		Electric Utilities		137,507		16,875
	Enel Chile SA		Electric Utilities		101,454		6,904
	Itau CorpBanca		Banks		628,427		1,636
	Latam Airlines Group SA		Airlines		700		1,807
	Parque Arauco SA		Real Estate Management & Development		2,250		3,168
	Plaza SA		Real Estate Management & Development		976		1,248
	S.A.C.I. Falabella		Multiline Retail		2,650		5,864


							109,003

	Colombia 2.5%
	Bancolombia SA		Banks		1,035		6,144
	Cementos Argos SA		Construction Materials		1,972		1,986
a	Corporacion Financiera Colombiana SA		Diversified Financial Services		398		2,527
	Ecopetrol SA		Oil, Gas & Consumable Fuels		17,830		8,344
a	Empresa De Energia De Bogota SA		Gas Utilities		7,046		3,905
	Grupo Agros SA		Construction Materials		1,252		3,799
	Grupo Inversiones Suramericana SA		Diversified Financial Services		949		4,679
	Interconexion Electrica SA ESP		Electric Utilities		1,587		6,051


							37,435



270	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Latin America ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	Mexico 24.0%
	Alfa SAB de CV		Industrial Conglomerates			11,429	$	3,118
	Alpek SAB de CV		Chemicals			1,454		524
a	Alsea de Mexico S.A.B de C.V.		Hotels, Restaurants & Leisure			2,011		1,301
	America Movil SAB de CV, L		Wireless Telecommunication Services			103,187		61,800
	Arca Continental SAB de CV		Beverages			1,462		5,959
	Banco del Bajio SA		Banks			2,599		2,269
	Banco Santander (Mexico), SA, Institucion de Banca Multiple, Grupo Financiero Santander, B		Banks			2,163		1,442
	Becle SA de CV		Beverages			2,126		2,627
	Cemex SAB de CV		Construction Materials			56,956		11,969
	Coca-Cola FEMSA SA de CV		Beverages			1,936		7,894
	Concentradora Fibra Danhos SA de CV		Equity Real Estate Investment Trusts (REITs	)		883		732
	El Puerto de Liverpool SAB de CV		Multiline Retail			757		1,671
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		11,382		9,020
	Fomento Economico Mexicano SAB de CV		Beverages			7,904		48,254
c	GMexico Transportes SAB de CV, 144A		Road & Rail			1,662		1,482
	Gruma SAB de CV		Food Products			750		5,808
	Grupo Aeroportuario del Centro Norte SAB de CV		Transportation Infrastructure			1,209		4,132
	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure			1,327		7,206
	Grupo Aeroportuario del Sureste SAB de CV, B		Transportation Infrastructure			574		5,465
	Grupo Bimbo SAB de CV, A		Food Products			8,857		13,018
	Grupo Carso SAB de CV		Industrial Conglomerates			1,805		3,583
	Grupo Elektra SAB de CV		Banks			243		14,544
	Grupo Financiero Banorte SAB de CV		Banks			10,578		29,309
	Grupo Financiero Inbursa SAB de CV		Banks			8,507		6,179
	Grupo Lala SAB de CV		Food Products			2,214		1,012
	Grupo Mexico SAB de CV, B		Metals & Mining			13,483		25,139
	Grupo Televisa SA		Media			8,132		9,463
	Industrias Bachoco SAB de CV, B		Food Products			620		1,783
	Industrias Penoles SA		Metals & Mining			467		3,143
a	Infraestructura Energetica Nova SAB de CV		Gas Utilities			1,940		6,010
	Kimberly-Clark de Mexico SAB de CV, A		Household Products			3,140		4,808
	Megacable Holdings SAB de CV		Media			1,157		3,200
	Orbia Advance Corp. SAB de CV		Chemicals			3,885		4,321
	Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure			806		5,469
	Regional SAB de CV		Banks			876		2,333
a	Telesites SAB de CV		Diversified Telecommunication Services			4,989		3,247
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			19,403		46,110


								365,344

	Peru 0.4%
	Compania de Minas Buenaventura SA, ADR		Metals & Mining			798		5,817

	United States 0.9%
	JBS SA		Food Products			3,700		14,510

	Total Common Stocks (Cost $1,965,082)							1,201,086

	Preferred Stocks 20.5%
	Brazil 18.8%
d	Alpargatas SA, 0.237%, pfd.		Textiles, Apparel & Luxury Goods			750		3,349
a	Azul SA		Airlines			700		2,368
d	Banco Bradesco SA, 10.010%, pfd.		Banks			15,120		60,549
d	Banco do Estado do Rio Grande do Sul SA, 9.883%, pfd., B		Banks			800		1,840
d	Bradespar SA, 4.781%, pfd.		Metals & Mining			800		4,498
d	Braskem SA, 4.872%, pfd., A		Chemicals			700		2,324
d	Centrais Eletricas Brasileiras SA, 5.651%, pfd., B		Electric Utilities			1,000		5,019



franklintempleton.com	Annual Report	271

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Latin America ETF (continued)



		Industry		Shares		Value
	Preferred Stocks (continued)
	Brazil 18.8% (continued)
d	Cia de Transmissao de Energia Eletrica Paulista, 7.965%, pfd.		Electric Utilities		700	$	2,560
d	Cia Energetica de Sao Paulo, 3.300%, pfd., B		Independent Power and Renewable Electricity Producers		700		3,628
d	Companhia Energetica de Minas Gerais, 8.137%, pfd.		Electric Utilities		3,500		6,012
d	Companhia Paranaense de Energia, 5.320%, pfd., B		Electric Utilities		400		4,126
d	Gerdau SA, 2.090%, pfd.		Metals & Mining		3,900		7,557
a	Gol Linhas Aereas Inteligentes SA, pfd.		Airlines		400		877
d	Itau Unibanco Holding SA, 8.709%, pfd.		Banks		17,700		78,798
d	Itausa-Investimentos Itau SA, 9.918%, pfd.		Banks		16,400		27,731
d	Lojas Americanas SA, 1.011%, pfd.		Multiline Retail		2,828		9,814
d	Petroleo Brasileiro SA, 6.665%, pfd.		Oil, Gas & Consumable Fuels		17,700		47,743
d	Telefonica Brasil SA, 6.951%, pfd.		Diversified Telecommunication Services		1,600		15,255
d	Usinas Siderurgicas de Minas Gerais SA Usiminas, 1.626%, pfd., A		Metals & Mining		1,400		1,328


							285,376

	Chile 0.6%
d	Embotelladora Andina SA, 5.048%, pfd., B		Beverages		760		1,692
d	Sociedad Quimica y Minera de Chile SA, 0.006%, pfd., B		Chemicals		357		8,185

						9,877

	Colombia 1.1%
d	Bancolombia SA, 5.749%, pfd.		Banks		1,690		11,447
d	Grupo Aval Acciones y Valores SA, 6.689%, pfd.		Banks		15,299		3,380
d	Grupo de Inversiones Suramericana SA, 3.278%, pfd.		Diversified Financial Services		291		1,202


							16,029

	Total Preferred Stocks (Cost $590,515)					311,282

	Total Investments (Cost $2,555,597) 99.5%						1,512,368
	Other Assets, less Liabilities 0.5%						8,000

	Net Assets 100.0%					$	1,520,368

See Abbreviations on page 351.

^aNon-income producing.

^dVariable rate security. The rate shown represents the yield at period end.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

Mini Bovespa Index

Long

5,585

4/15/20

(1,305

)

*As of period end.

See Note 8 regarding other derivative information.



272	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Mexico ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	22.11		$	24.98		$	24.90


Income from investment operations^b:

Net investment income^c		0.64			0.51			0.12

Net realized and unrealized gains (losses)		(7.73	)		(2.86	)		0.04


Total from investment operations		(7.09	)		(2.35	)		0.16


Less distributions from net investment income		(0.67	)		(0.52	)		(0.08	)


Net asset value, end of year	$	14.35		$	22.11		$	24.98


Total return^d		(33.13)%			(9.28)%			0.63%

Ratios to average net assets^e

Total expenses		0.19%			0.19%			0.19%

Net investment income		2.93%			2.21%			1.18%

Supplemental data

Net assets, end of year (000’s)		$2,871			$4,422			$2,498

Portfolio turnover rate^f		19.32%	^g		10.31%			9.64%

^aFor the period November 3, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 19.32%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	273

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Mexico ETF



		Industry			Shares		Value
	Common Stocks 99.8%
	Mexico 99.8%
	Alfa SAB de CV		Industrial Conglomerates			105,376	$	28,748
	Alpek SAB de CV		Chemicals			13,152		4,737
a	Alsea de Mexico S.A.B de C.V.		Hotels, Restaurants & Leisure			18,084		11,702
	America Movil SAB de CV, L		Wireless Telecommunication Services			761,144		455,857
	Arca Continental SAB de CV		Beverages			13,484		54,955
	Banco del Bajio SA		Banks			23,960		20,917
	Banco Santander (Mexico), SA, Institucion de Banca Multiple, Grupo Financiero Santander, B		Banks			19,620		13,080
	Becle SA de CV		Beverages			19,044		23,534
	Cemex SAB de CV		Construction Materials			432,164		90,820
	Coca-Cola FEMSA SA de CV		Beverages			17,848		72,771
	Concentradora Fibra Danhos SA de CV		Equity Real Estate Investment Trusts (REITs	)		7,864		6,517
	El Puerto de Liverpool SAB de CV		Multiline Retail			6,860		15,139
	Fibra Uno Administracion SA de CV		Equity Real Estate Investment Trusts (REITs	)		87,968		69,709
	Fomento Economico Mexicano SAB de CV		Beverages			58,644		358,025
b	GMexico Transportes SAB de CV, 144A		Road & Rail			14,964		13,344
	Gruma SAB de CV		Food Products			6,912		53,527
	Grupo Aeroportuario del Centro Norte SAB de CV		Transportation Infrastructure			11,144		38,084
	Grupo Aeroportuario del Pacifico SAB de CV		Transportation Infrastructure			11,880		64,512
	Grupo Aeroportuario del Sureste SAB de CV, B		Transportation Infrastructure			5,296		50,424
	Grupo Bimbo SAB de CV, A		Food Products			73,028		107,335
	Grupo Carso SAB de CV		Industrial Conglomerates			16,644		33,041
	Grupo Elektra SAB de CV		Banks			1,788		107,011
	Grupo Financiero Banorte SAB de CV		Banks			79,244		219,566
	Grupo Financiero Inbursa SAB de CV		Banks			78,432		56,970
	Grupo Lala SAB de CV		Food Products			20,056		9,165
	Grupo Mexico SAB de CV, B		Metals & Mining			77,684		144,843
	Grupo Televisa SA		Media			72,096		83,900
	Industrias Bachoco SAB de CV, B		Food Products			5,576		16,039
	Industrias Penoles SA		Metals & Mining			4,308		28,993
a	Infraestructura Energetica Nova SAB de CV		Gas Utilities			17,892		55,424
	Kimberly-Clark de Mexico SAB de CV, A		Household Products			28,948		44,324
	Megacable Holdings SAB de CV		Media			10,424		28,829
	Orbia Advance Corp. SAB de CV		Chemicals			35,816		39,833
	Promotora y Operadora de Infraestructura SAB de CV		Transportation Infrastructure			7,432		50,432
	Regional SAB de CV		Banks			7,884		21,001
^a	Telesites SAB de CV		Diversified Telecommunication Services			44,712		29,104
	Wal-Mart de Mexico SAB de CV, V		Food & Staples Retailing			144,620		343,684

	Total Investments (Cost $4,447,432) 99.8%							2,865,896
	Other Assets, less Liabilities 0.2%							4,724

	Net Assets 100.0%						$	2,870,620

See Abbreviations on page 351.

^aNon-income producing.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the value of this security was $13,344, representing 0.5% of net assets.



274	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Russia ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.37		$	24.24		$	23.90


Income from investment operations^b:

Net investment income (loss)^c		1.73			1.03			(0.00	)^d

Net realized and unrealized gains (losses)		(4.44	)		(1.26	)		0.34


Total from investment operations		(2.71	)		(0.23	)		0.34


Less distributions from net investment income		(1.75	)		(0.64	)		—


Net asset value, end of year	$	18.91		$	23.37		$	24.24


Total return^e		(13.90)%			(0.63)%			1.42%

Ratios to average net assets^f

Expenses before waiver and payments by affiliates		0.19%			0.19%			0.19%

Expenses net waiver and payments by affiliates		0.19%			—%			—%

Net investment income (loss)		6.49%			4.57%			(0.13)%

Supplemental data

Net assets, end of year (000’s)		$13,240			$11,683			$2,424

Portfolio turnover rate^g		15.74%	^h		31.57%			7.58%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.01 per share.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 15.74%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	275

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Russia ETF



		Industry		Shares		Value
	Common Stocks 94.9%
	Russia 94.9%
	Aeroflot – Russian Airlines PJSC		Airlines		96,852	$	84,762
	Alrosa PJSC		Metals & Mining		356,146		294,411
	Federal Grid Co. Unified Energy System PJSC		Electric Utilities		48,162,730		99,230
	Federal Hydrogenerating Co.		Electric Utilities		21,290,962		165,594
	Gazprom PJSC		Oil, Gas & Consumable Fuels		864,360		2,006,861
	Inter RAO UES PJSC		Electric Utilities		5,084,534		320,330
	LUKOIL PJSC		Oil, Gas & Consumable Fuels		33,908		2,046,186
	Magnit PJSC		Food & Staples Retailing		9,142		374,707
	Magnitogorsk Iron & Steel Works		Metals & Mining		327,768		161,506
	MMC Norilsk Nickel PJSC		Metals & Mining		2,394		598,027
	Mobile TeleSystems PJSC		Wireless Telecommunication Services		92,078		352,479
	Moscow Exchange MICEX		Capital Markets		240,926		299,871
	Mosenergo PAO		Electric Utilities		1,487,402		35,199
	NLMK PJSC		Metals & Mining		191,436		303,813
	NovaTek PJSC		Oil, Gas & Consumable Fuels		51,002		598,966
	PhosAgro PJSC		Chemicals		6,538		207,519
	Polyus Gold OJSC		Metals & Mining		2,814		383,111
	Rosneft PJSC		Oil, Gas & Consumable Fuels		99,568		400,585
	Rosseti PJSC		Electric Utilities		5,448,954		82,236
a	Rostelecom PJSC		Diversified Telecommunication Services		192,150		181,984
a	RussNeft PJSC		Oil, Gas & Consumable Fuels		8,218		49,350
	Sberbank of Russia PJSC		Banks		840,980		2,015,005
	Severstal PJSC		Metals & Mining		27,552		305,586
	Sistema PJSFC		Wireless Telecommunication Services		534,044		89,641
	Surgutneftegas PJSC		Oil, Gas & Consumable Fuels		466,354		202,338
	Tatneft PAO		Oil, Gas & Consumable Fuels		75,894		536,759
	Unipro PJSC		Independent Power and Renewable Electricity Producers		1,914,178		63,060
	VTB Bank PJSC		Banks		713,209,084		297,575

	Total Common Stocks (Cost $14,929,983)						12,556,691

	Preferred Stocks 5.1%
	Russia 5.1%
b	Bashneft PJSC, 9.547%, pfd.		Oil, Gas & Consumable Fuels		3,556		60,531
b	Surgutneftegas PJSC, 20.266%, pfd.		Oil, Gas & Consumable Fuels		502,600		241,864
b	Tatneft PJSC, 18.720%, pfd., 3		Oil, Gas & Consumable Fuels		7,504		49,989
b	Transneft PJSC, 7.246%, pfd.		Oil, Gas & Consumable Fuels		173		327,141

	Total Preferred Stocks (Cost $855,980)						679,525

	Total Investments (Cost $15,785,963) 100.0%						13,236,216
	Other Assets, less Liabilities 0.0%						3,479

	Net Assets 100.0%					$	13,239,695

^aNon-income producing.

^bVariable rate security. The rate shown represents the yield at period end.



276	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Saudi Arabia ETF



	Year Ended March 31,

	2020			2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	27.89		$	24.71


Income from investment operations^b:

Net investment income^c		0.89			0.11

Net realized and unrealized gains (losses)		(7.80	)		3.07


Total from investment operations		(6.91	)		3.18


Less distributions from net investment income		(0.83	)		—


Net asset value, end of year	$	20.15		$	27.89


Total return^d		(25.51)%			12.87%

Ratios to average net assets^e

Total expenses		0.39%			0.39%

Net investment income		3.46%			0.93%

Supplemental data

Net assets, end of year (000’s)		$2,015			$2,789

Portfolio turnover rate^f		32.37%	^g		12.41%

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 32.37%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	277

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Saudi Arabia ETF



		Industry	Shares		Value
	Common Stocks 100.0%
	Saudi Arabia 100.0%
	Abdullah Al Othaim Markets Co.	Food & Staples Retailing		660	$	16,302
	Advanced Petrochemical Co.	Chemicals		1,600		18,951
	Al-Rajhi Bank	Banks		16,778		240,260
	Alinma Bank	Banks		11,020		61,010
	Almarai Co. JSC	Food Products		3,810		47,663
	Arab National Bank	Banks		9,686		47,180
	Arabian Centres Co. Ltd.	Real Estate Management & Development		2,468		13,861
	Bank Al-Jazira	Banks		6,058		18,285
	Bank Albilad	Banks		5,540		30,140
	Banque Saudi Fransi	Banks		8,762		60,287
	Bupa Arabia for Cooperative Insurance Co.	Insurance		938		22,820
	Dallah Healthcare Co.	Health Care Providers & Services		454		5,528
a	Dar Al Arkan Real Estate Development Co.	Real Estate Management & Development		7,978		17,413
a	Emaar Economic City	Real Estate Management & Development		6,236		11,353
a	Etihad Etisalat Co.	Wireless Telecommunication Services		5,682		32,758
a	Fawaz Abdulaziz Al Hokair & Co.	Specialty Retail		974		4,542
	Jarir Marketing Co.	Specialty Retail		888		30,207
a	Mobile Telecommunications Co.	Wireless Telecommunication Services		4,310		10,887
	Mouwasat Medical Services Co.	Health Care Providers & Services		724		16,091
	National Commercial Bank	Banks		18,738		173,066
a	National Industrialization Co.	Chemicals		4,942		12,102
	National Petrochemical Co.	Chemicals		1,798		8,930
a	Rabigh Refining and Petrochemical Co.	Oil, Gas & Consumable Fuels		3,298		9,393
	Riyad Bank	Banks		20,894		83,198
	Sahara International Petrochemical Co.	Chemicals		5,414		17,696
	Samba Financial Group	Banks		14,226		76,185
	Saudi Airlines Catering Co.	Hotels, Restaurants & Leisure		574		11,535
	Saudi Arabian Fertilizer Co.	Chemicals		3,022		49,871
a	Saudi Arabian Mining Co.	Metals & Mining		6,494		53,584
b,c	Saudi Aramco, 144A, Reg S	Oil, Gas & Consumable Fuels		17,652		141,658
	Saudi Basic Industries Corp.	Chemicals		12,364		230,365
	Saudi Cement Co.	Construction Materials		1,132		14,764
	Saudi Electricity Co.	Electric Utilities		11,934		50,569
	Saudi Ground Services Co.	Transportation Infrastructure		1,346		8,219
	Saudi Industrial Investment Group	Chemicals		3,324		13,961
a	Saudi Kayan Petrochemical Co.	Chemicals		11,080		21,381
a	Saudi Research And Marketing Group	Media		492		7,910
	Saudi Telecom Co.	Diversified Telecommunication Services		8,302		193,352
a	Savola Al-Azizia United Co.	Food Products		3,944		37,477
	Seera Group Holding	Hotels, Restaurants & Leisure		2,216		8,199
	Southern Province Cement Co.	Construction Materials		1,036		15,028
a	The Company for Cooperative Insurance	Insurance		922		14,872
	The Qassim Cement	Construction Materials		666		9,377
	Yanbu Cement	Construction Materials		1,156		7,908
	Yanbu National Petrochemical Co.	Chemicals		3,512		38,887

	Total Investments (Cost $2,435,550) 100.0%					2,015,025
	Other Assets, less Liabilities 0.0%^†					52

	Net Assets 100.0%				$	2,015,077



278	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Saudi Arabia ETF (continued)

See Abbreviations on page 351.

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the value of this security was $141,658, representing 7.0% of net assets.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the value of this security was $141,658, representing 7.0% of net assets.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	279

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE South Africa ETF



	Year Ended March 31,

	2020			2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	26.62		$	24.42


Income from investment operations^b:

Net investment income^c		2.65			0.22

Net realized and unrealized gains (losses)		(11.76	)		2.04


Total from investment operations		(9.11	)		2.26


Less distributions from net investment income		(2.70	)		(0.06	)


Net asset value, end of year	$	14.81		$	26.62


Total return^d		(38.46)%			9.26%

Ratios to average net assets^e

Total expenses		0.19%			0.19%

Net investment income		10.42%			1.75%

Supplemental data

Net assets, end of year (000’s)		$1,481			$2,662

Portfolio turnover rate^f		21.44%	^g		7.12%

^aFor the period October 10, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 21.44%.



280	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE South Africa ETF



		Industry	Shares		Value
	Common Stocks 99.8%
	Isle Of Man 0.2%
	MAS Real Estate Inc.	Real Estate Management & Development		3,930	$	2,242

	Romania 0.9%
	NEPI Rockcastle PLC	Real Estate Management & Development		3,354		14,085

	South Africa 98.7%
	Absa Group Ltd.	Banks		6,732		28,270
	African Rainbow Minerals Ltd.	Metals & Mining		970		5,474
	Anglo American Platinum Ltd.	Metals & Mining		562		23,732
	AngloGold Ashanti Ltd.	Metals & Mining		3,864		69,039
a	Aspen Pharmacare Holdings Ltd.	Pharmaceuticals		3,566		18,457
	Assore Ltd.	Metals & Mining		312		5,199
	AVI Ltd.	Food Products		2,908		11,459
	Barloworld Ltd.	Trading Companies & Distributors		2,038		7,389
	Bid Corp. Ltd.	Food & Staples Retailing		3,092		36,820
	Bidvest Group Ltd.	Industrial Conglomerates		3,146		25,753
	Capitec Bank Holdings Ltd.	Banks		494		24,340
	Clicks Group Ltd.	Food & Staples Retailing		2,254		32,523
	Coronation Fund Managers Ltd.	Capital Markets		2,408		4,247
b	Dis-Chem Pharmacies Ltd., Reg S	Food & Staples Retailing		3,656		5,425
	Discovery Ltd.	Insurance		3,374		14,728
	Distell Group Holdings Ltd.	Beverages		748		3,274
	Exxaro Resources Ltd.	Oil, Gas & Consumable Fuels		2,336		12,947
	FirstRand Ltd.	Diversified Financial Services		29,622		66,790
	Fortress REIT Ltd.	Equity Real Estate Investment Trusts (REITs)		8,332		784
	Fortress REIT Ltd., A	Equity Real Estate Investment Trusts (REITs)		10,918		6,174
	Gold Fields Ltd.	Metals & Mining		7,580		39,165
	Growthpoint Properties Ltd.	Equity Real Estate Investment Trusts (REITs)		27,450		19,781
a	Harmony Gold Mining Co. Ltd.	Metals & Mining		4,252		9,416
	Hyprop Investments Ltd.	Equity Real Estate Investment Trusts (REITs)		2,342		2,492
	Impala Platinum Holdings Ltd.	Metals & Mining		6,820		28,922
	Investec Ltd.	Capital Markets		2,804		5,336
	Kumba Iron Ore Ltd.	Metals & Mining		480		7,527
	Liberty Holdings Ltd.	Insurance		1,122		4,165
	Life Healthcare Group Holdings Ltd.	Health Care Providers & Services		13,024		13,462
	Momentum Metropolitan Holdings	Insurance		9,262		8,085
a	Motus Holdings Ltd.	Specialty Retail		1,648		2,510
	Mr. Price Group Ltd.	Specialty Retail		2,330		14,883
	MTN Group Ltd.	Wireless Telecommunication Services		16,768		45,431
a	MultiChoice Group Ltd.	Media		3,972		19,075
	Naspers Ltd., N	Internet & Direct Marketing Retail		2,554		365,183
	Nedbank Group Ltd.	Banks		3,710		17,171
	Netcare Ltd.	Health Care Providers & Services		13,420		11,271
a	Ninety One Ltd.	Capital Markets		1,414		2,720
a	Northam Platinum Ltd.	Metals & Mining		3,262		12,677
	Old Mutual Ltd.	Insurance		42,902		28,465
b,c	Pepkor Holdings Ltd., 144A, Reg S	Specialty Retail		6,578		3,923
	Pick ‘N Pay Stores Ltd.	Food & Staples Retailing		3,180		10,790
	PSG Group Ltd.	Diversified Financial Services		1,528		11,048
	Rand Merchant Investment Holdings Ltd.	Insurance		7,016		8,658
	Redefine Properties Ltd.	Equity Real Estate Investment Trusts (REITs)		52,496		6,966
	Remgro Ltd.	Diversified Financial Services		4,794		32,981
	Resilient REIT Ltd.	Equity Real Estate Investment Trusts (REITs)		2,887		5,173
	Reunert Ltd.	Industrial Conglomerates		1,496		3,630
	RMB Holdings Ltd.	Diversified Financial Services		6,980		19,322
	Sanlam Ltd.	Insurance		16,286		46,587
	Santam Ltd.	Insurance		386		5,792
^a	Sappi Ltd.	Paper & Forest Products		5,096		5,992



franklintempleton.com	Annual Report	281

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE South Africa ETF (continued)



		Industry	Shares		Value
	Common Stocks (continued)
	South Africa (continued)
a	Sasol Ltd.	Chemicals		5,198	$	10,748
	Shoprite Holdings Ltd.	Food & Staples Retailing		4,572		31,999
a	Sibanye Stillwater Ltd.	Metals & Mining		20,152		25,466
	Standard Bank Group Ltd.	Banks		11,932		68,459
	Telkom SA SOC Ltd.	Diversified Telecommunication Services		2,736		3,145
	The Foschini Group Ltd.	Specialty Retail		2,140		8,108
	The SPAR Group Ltd.	Food & Staples Retailing		1,794		18,256
	Tiger Brands Ltd.	Food Products		1,542		15,973
	Truworths International Ltd.	Specialty Retail		3,976		5,561
	Tsogo Sun Gaming Ltd.	Hotels, Restaurants & Leisure		5,002		868
	Vodacom Group Ltd.	Wireless Telecommunication Services		5,556		36,400
	Vukile Property Fund Ltd.	Equity Real Estate Investment Trusts (REITs)		8,218		3,258
	Woolworths Holdings Ltd.	Multiline Retail		8,112		12,536


						1,462,200

	Total Investments (Cost $2,360,764) 99.8%					1,478,527
	Other Assets, less Liabilities 0.2%					2,777

	Net Assets 100.0%				$	1,481,304

See Abbreviations on page 351.

^aNon-income producing.

^bSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the aggregate value of these securities was $9,348, representing 0.6% of net assets.

^cSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the value of this security was $3,923, representing 0.3% of net assets.



282	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE South Korea ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	21.19		$	25.98		$	25.75


Income from investment operations^b:

Net investment income^c		0.36			0.40			0.10

Net realized and unrealized gains (losses)		(4.58	)		(4.81	)		0.40


Total from investment operations		(4.22	)		(4.41	)		0.50


Less distributions from net investment income		(0.45	)		(0.38	)		(0.27	)


Net asset value, end of year	$	16.52		$	21.19		$	25.98


Total return^d		(20.24)%			(16.92)%			1.95%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.09%			0.09%			0.09%

Expenses net waiver and payments by affiliates		0.09%			0.09%			—%

Net investment income		1.78%			1.74%			0.94%

Supplemental data

Net assets, end of year (000’s)		$11,562			$16,948			$25,981

Portfolio turnover rate^f		21.72%	^g		5.21%			3.85%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 8.02%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	283

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS, March 31, 2020

Franklin FTSE South Korea ETF



		Industry		Shares		Value
	Common Stocks 94.4%
	South Korea 94.4%
	Amorepacific Corp.		Personal Products		826	$	114,331
	AmorePacific Group		Personal Products		756		34,405
	BGF Retail Co. Ltd.		Food & Staples Retailing		161		17,458
	BNK Financial Group Inc.		Banks		7,637		27,823
a	Celltrion Healthcare Co. Ltd.		Health Care Providers & Services		1,743		128,432
a	Celltrion Inc.		Biotechnology		2,709		509,600
	Cheil Worldwide Inc.		Media		1,806		23,514
	CJ CheilJedang Corp.		Food Products		210		37,261
	CJ Corp.		Industrial Conglomerates		322		17,061
	CJ ENM Co. Ltd.		Internet & Direct Marketing Retail		252		21,549
a	CJ Logistics Corp.		Road & Rail		196		21,897
	Coway Co. Ltd.		Household Durables		1,463		69,464
	Daelim Industrial Co. Ltd.		Construction & Engineering		714		43,227
a	Daewoo Engineering & Construction Co. Ltd.		Construction & Engineering		4,648		11,225
a	Daewoo Shipbuilding & Marine Engineering Co. Ltd.		Machinery		1,253		13,844
	DB Insurance Co. Ltd.		Insurance		1,225		34,968
	DGB Financial Group Inc.		Banks		4,018		15,150
	Dongsuh Cos. Inc.		Food & Staples Retailing		805		10,415
	Doosan Bobcat Inc.		Machinery		630		9,289
	Doosan Co. Ltd.		Industrial Conglomerates		147		4,033
a	Doosan Fuel Cell Co. Ltd.		Electrical Equipment		543		2,328
a	Doosan Heavy Industries and Construction Co. Ltd.		Electrical Equipment		3,129		8,778
a	Doosan Infracore Co. Ltd.		Machinery		3,479		8,988
a	Doosan Solus Co. Ltd.		Electronic Equipment, Instruments & Components		294		4,456
	E-MART Inc.		Food & Staples Retailing		518		45,317
	Fila Korea Ltd.		Textiles, Apparel & Luxury Goods		1,365		32,573
	GS Engineering & Construction Corp.		Construction & Engineering		1,533		25,816
	GS Holdings Corp.		Oil, Gas & Consumable Fuels		1,337		40,417
	GS Retail Co. Ltd.		Food & Staples Retailing		693		17,590
	Hana Financial Group Inc.		Banks		7,553		143,323
	Hankook Tire & Technology Co. Ltd.		Auto Components		1,960		31,155
	Hanmi Pharm Co. Ltd.		Pharmaceuticals		189		40,599
	Hanmi Science Co. Ltd.		Pharmaceuticals		336		7,438
	Hanon Systems		Auto Components		4,221		30,756
	Hanssem Co. Ltd.		Household Durables		259		10,702
a	Hanwha Aerospace Co. Ltd.		Aerospace & Defense		931		15,716
	Hanwha Corp.		Industrial Conglomerates		1,106		13,901
	Hanwha Corp.		Industrial Conglomerates		595		4,536
	Hanwha Life Insurance Co. Ltd.		Insurance		7,245		8,273
	Hanwha Solutions Corp.		Chemicals		2,128		23,424
	HDC Hyundai Development Co-Engineering & Construction		Construction & Engineering		1,204		15,379
a	Helixmith Co. Ltd.		Biotechnology		476		26,863
	Hite Jinro Co. Ltd.		Beverages		798		17,601
a	HLB Inc.		Leisure Equipment & Products		889		65,725
	Hotel Shilla Co. Ltd.		Specialty Retail		812		47,025
	Hyundai Department Store Co. Ltd.		Multiline Retail		392		18,934
	Hyundai Engineering & Construction Co. Ltd.		Construction & Engineering		1,904		42,933
	Hyundai Glovis Co. Ltd.		Air Freight & Logistics		483		35,947
	Hyundai Heavy Industries Holdings Co. Ltd.		Machinery		273		44,291
	Hyundai Marine & Fire Insurance Co. Ltd.		Insurance		1,582		29,435
	Hyundai Mipo Dockyard Co. Ltd.		Machinery		532		11,843
	Hyundai Mobis Co. Ltd.		Auto Components		1,708		237,817
	Hyundai Motor Co.		Automobiles		3,710		270,322
	Hyundai Steel Co.		Metals & Mining		1,967		29,004
	Hyundai Wia Corp.		Auto Components		420		9,246
	Industrial Bank of Korea		Banks		7,112		43,816



284	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE South Korea ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	South Korea (continued)
	Kakao Corp.		Interactive Media & Services		1,323	$	168,995
	Kangwon Land Inc.		Hotels, Restaurants & Leisure		2,786		45,199
	KB Financial Group Inc.		Banks		10,171		288,666
	KCC Corp.		Chemicals		123		13,085
a	KCC Glass Corp.		Building Products		116		1,749
	KEPCO Plant Service and Engineering Co. Ltd.		Commercial Services & Supplies		553		13,196
	Kia Motors Corp.		Automobiles		6,748		144,123
	Korea Aerospace Industries Ltd.		Aerospace & Defense		1,694		29,153
a	Korea Electric Power Corp.		Electric Utilities		6,685		105,710
	Korea Gas Corp.		Gas Utilities		693		12,239
	Korea Investment Holdings Co. Ltd.		Capital Markets		1,001		40,908
a	Korea Shipbuilding & Offshore Engineering Co. Ltd.		Machinery		1,127		72,766
	Korea Zinc Co. Ltd.		Metals & Mining		259		75,742
a	Korean Air Lines Co. Ltd.		Airlines		1,246		19,140
	KT&G Corp.		Tobacco		2,898		177,829
	Kumho Petrochemical Co. Ltd.		Chemicals		455		24,220
	LG Chem Ltd.		Chemicals		1,197		299,901
	LG Corp.		Industrial Conglomerates		2,359		114,331
a	LG Display Co. Ltd.		Electronic Equipment, Instruments & Components		5,852		53,360
	LG Electronics, Inc.		Household Durables		2,828		111,972
	LG Household & Health Care Ltd.		Personal Products		231		212,527
	LG Uplus Corp.		Diversified Telecommunication Services		5,061		44,900
	Lotte Chemical Corp.		Chemicals		385		61,038
	Lotte Chilsung Beverage Co. Ltd.		Beverages		91		6,354
	Lotte Corp.		Industrial Conglomerates		686		13,524
	LOTTE Fine Chemical Co. Ltd.		Chemicals		455		11,605
	Lotte Shopping Co. Ltd.		Multiline Retail		294		18,113
	LS Corp.		Electrical Equipment		455		10,802
	Mando Corp.		Auto Components		861		14,641
	Medy-tox Inc.		Biotechnology		112		18,152
	Mirae Asset Daewoo Co. Ltd.		Capital Markets		3,815		9,120
	Mirae Asset Daewoo Co. Ltd.		Capital Markets		9,884		42,789
	Naver Corp.		Interactive Media & Services		3,500		488,767
	NCsoft Corp.		Entertainment		441		236,195
a	Netmarble Corp.		Entertainment		448		34,299
	NH Investment & Securities Co. Ltd.		Capital Markets		3,360		24,813
a	NHN Corp.		Entertainment		252		14,180
	Nongshim Co. Ltd.		Food Products		84		19,907
a	OCI Co. Ltd.		Chemicals		476		13,607
	Orion Corp.		Food Products		567		53,563
	Ottogi Corp.		Food Products		35		13,671
	Paradise Co. Ltd.		Hotels, Restaurants & Leisure		1,190		12,659
	POSCO		Metals & Mining		1,785		236,074
	POSCO Chemical Co. Ltd.		Construction Materials		560		20,149
	Posco International Corp.		Trading Companies & Distributors		1,288		12,009
	S-1 Corp.		Commercial Services & Supplies		497		32,661
	S-Oil Corp.		Oil, Gas & Consumable Fuels		1,071		50,235
a	Samsung Biologics Co. Ltd.		Life Sciences Tools & Services		350		138,580
	Samsung C&T Corp.		Industrial Conglomerates		2,198		161,778
	Samsung Card Co. Ltd.		Consumer Finance		791		19,428
	Samsung Electro-Mechanics Co. Ltd.		Electronic Equipment, Instruments & Components		1,456		116,853
	Samsung Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		48,496		1,902,234
a	Samsung Engineering Co. Ltd.		Construction & Engineering		4,130		34,435
	Samsung Fire & Marine Insurance Co. Ltd.		Insurance		861		108,920
a	Samsung Heavy Industries Co. Ltd.		Machinery		11,452		36,689
	Samsung Life Insurance Co. Ltd.		Insurance		1,666		58,847
	Samsung SDI Co. Ltd.		Electronic Equipment, Instruments & Components		1,379		272,436



franklintempleton.com	Annual Report	285

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE South Korea ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	South Korea (continued)
	Samsung SDS Co. Ltd.		IT Services		833	$	102,299
	Samsung Securities Co. Ltd.		Capital Markets		1,652		39,829
	Shinhan Financial Group Co. Ltd.		Banks		12,425		291,909
	Shinsegae Co. Ltd.		Multiline Retail		182		32,517
a	SillaJen Inc.		Biotechnology		1,393		15,162
	SK Holdings Co. Ltd.		Industrial Conglomerates		868		119,432
	SK Hynix Inc.		Semiconductors & Semiconductor Equipment		13,580		929,243
	SK Innovation Co. Ltd.		Oil, Gas & Consumable Fuels		1,498		107,057
	SK Networks Co. Ltd.		Trading Companies & Distributors		3,857		14,416
	SK Telecom Co. Ltd.		Wireless Telecommunication Services		609		88,547
	SKC Co. Ltd.		Chemicals		490		14,974
	Ssangyong Cement Industrial Co. Ltd.		Construction Materials		2,723		10,088
	Woori Financial Group Inc.		Banks		14,182		89,122
	Yuhan Corp.		Pharmaceuticals		238		44,771

	Total Common Stocks (Cost $16,542,969)						10,915,417

	Preferred Stocks 3.8%
	South Korea 3.8%
b	Amorepacific Corp., 1.686%, pfd.		Personal Products		280		13,708
b	CJ CheilJedang Corp., 4.011%, pfd.		Food Products		35		2,544
b	Hyundai Motor Co., 7.206%, pfd., 2		Automobiles		994		46,460
b	Hyundai Motor Co., 7.849%, pfd.		Automobiles		609		25,814
b	LG Chem Ltd., 1.385%, pfd.		Chemicals		203		24,680
b	LG Electronics Inc., 4.482%, pfd.		Household Durables		448		6,569
b	LG Household & Health Care Ltd., 1.727%, pfd.		Personal Products		53		27,864
b	Samsung Electronics Co. Ltd., 2.651%, pfd.		Technology Hardware, Storage & Peripherals		8,498		279,928
b	Samsung Fire & Marine Insurance Co. Ltd., 7.594%, pfd.		Insurance		70		6,440

	Total Preferred Stocks (Cost $580,427)						434,007

	Total Investments (Cost $17,123,396) 98.2%						11,349,424
	Other Assets, less Liabilities 1.8%						212,847

	Net Assets 100.0%					$	11,562,271

See Abbreviations on page 351.

^aNon-income producing.

^bVariable rate security. The rate shown represents the yield at period end.

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

Kospi 200 Mini

Long

213,575

4/09/20

(17,785

)

*As of period end.

See Note 8 regarding other derivative information.



286	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Switzerland ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	23.86		$	23.11		$	23.56


Income from investment operations^b:

Net investment income^c		1.06			0.53			0.22

Net realized and unrealized gains (losses)		(0.16	)		0.83			(0.67	)


Total from investment operations		0.90			1.36			(0.45	)


Less distributions from net investment income		(0.32	)		(0.61	)		—


Net asset value, end of year	$	24.44		$	23.86		$	23.11


Total return^d		3.70%			6.13%			(1.91)%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		4.12%			2.35%			6.54%

Supplemental data

Net assets, end of year (000’s)		$34,213			$2,386			$2,311

Portfolio turnover rate^f		16.25%	^g		14.06%			2.72%

^aFor the period February 6, 2018 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 16.25%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	287

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Switzerland ETF



		Industry		Shares		Value
	Common Stocks 99.1%
	Switzerland 99.1%
	ABB Ltd.		Electrical Equipment		58,702	$	1,031,706
	Adecco Group AG		Professional Services		5,222		205,847
a	Alcon Inc.		Health Care Equipment & Supplies		15,652		798,009
	Baloise Holding AG		Insurance		1,582		207,489
	Banque Cantonale Vaudoise		Banks		98		80,422
	Barry Callebaut AG		Food Products		103		206,522
	Chocoladefabriken Lindt & Spruengli AG		Food Products		69		581,567
	Cie Financiere Richemont SA		Textiles, Apparel & Luxury Goods		16,856		924,375
	Clariant AG		Chemicals		6,818		114,614
	Credit Suisse Group AG		Capital Markets		83,944		694,075
	DKSH Holding AG		Professional Services		1,218		60,450
	Dufry AG		Specialty Retail		1,036		32,208
	EMS-Chemie Holding AG		Chemicals		238		149,680
	Flughafen Zurich AG		Transportation Infrastructure		658		74,127
	Geberit AG		Building Products		1,218		536,270
	Georg Fischer AG		Machinery		140		96,801
	Givaudan AG		Chemicals		308		953,398
	Helvetia Holding AG		Insurance		1,120		96,425
	Julius Baer Group Ltd.		Capital Markets		7,420		253,302
	Kuehne + Nagel International AG		Marine		1,708		234,518
	LafargeHolcim Ltd., B		Construction Materials		17,262		630,856
	Logitech International SA		Technology Hardware, Storage & Peripherals		4,984		215,524
	Lonza Group AG		Life Sciences Tools & Services		2,478		1,030,078
	Nestle SA		Food Products		66,262		6,810,765
	Novartis AG		Pharmaceuticals		50,610		4,176,744
	OC Oerlikon Corp. AG		Machinery		6,958		55,805
	Pargesa Holding SA, B		Diversified Financial Services		1,302		86,324
	Partners Group Holding AG		Capital Markets		560		387,552
	PSP Swiss Property AG		Real Estate Management & Development		1,330		165,915
	Roche Holding AG		Pharmaceuticals		616		197,492
	Roche Holding AG		Pharmaceuticals		16,212		5,262,135
	Schindler Holding AG		Machinery		644		136,048
	Schindler Holding AG, PC		Machinery		1,386		304,260
	SGS SA		Professional Services		203		470,390
	Sika AG		Chemicals		4,732		782,268
	Sonova Holding AG		Health Care Equipment & Supplies		1,820		328,053
	Straumann Holding AG		Health Care Equipment & Supplies		350		260,958
	Sulzer AG		Machinery		630		39,784
	Swatch Group AG		Textiles, Apparel & Luxury Goods		924		184,743
	Swatch Group AG		Textiles, Apparel & Luxury Goods		1,442		56,753
	Swiss Life Holding AG		Insurance		1,134		386,067
	Swiss Prime Site AG		Real Estate Management & Development		2,562		250,891
	Swiss Re AG		Insurance		9,492		731,459
	Swisscom AG		Diversified Telecommunication Services		868		466,677
	Temenos AG		Software		2,044		268,083
	UBS Group AG		Capital Markets		111,916		1,046,346
	Vifor Pharma AG		Pharmaceuticals		1,526		210,948
	Zurich Insurance Group AG		Insurance		4,620		1,639,717

	Total Investments (Cost $38,233,037) 99.1%						33,914,440
	Other Assets, less Liabilities 0.9%						298,093

	Net Assets 100.0%					$	34,212,533

See Abbreviations on page 351.

^aNon-income producing.



288	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Switzerland ETF (continued)

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Index Contracts

Swiss Mid Cap

Long

177,686

6/19/20

18,917

*As of period end.

See Note 8 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	289

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE Taiwan ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.72		$	26.34		$	25.59


Income from investment operations^b:

Net investment income (loss)^c		0.89			0.47			(0.02	)

Net realized and unrealized gains (losses)		(1.56	)		(1.85	)		0.77


Total from investment operations		(0.67	)		(1.38	)		0.75


Less distributions from net investment income		(0.87	)		(0.24	)		(—	)^d


Net asset value, end of year	$	23.18		$	24.72		$	26.34


Total return^e		(3.29)%			(5.15)%			2.93%

Ratios to average net assets^f

Total expenses		0.19%			0.19%			0.19%

Net investment income (loss)		3.39%			1.96%			(0.19)%

Supplemental data

Net assets, end of year (000’s)		$13,906			$14,834			$5,268

Portfolio turnover rate^g		12.57%	^h		8.71%			3.63%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^dAmount rounds to less than $0.001 per share.

^fRatios are annualized for periods less than one year.

^gPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^hPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 12.57%.



290	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE Taiwan ETF



		Industry		Shares		Value
	Common Stocks 99.7%
	Taiwan 99.7%
	Accton Technology Corp.		Communications Equipment		16,000	$	86,239
	Acer Inc.		Technology Hardware, Storage & Peripherals		84,000		43,331
	Advantech Co. Ltd.		Technology Hardware, Storage & Peripherals		11,000		90,753
	ASE Industrial Holding Co. Ltd.		Semiconductors & Semiconductor Equipment		102,000		197,649
	Asia Cement Corp.		Construction Materials		69,000		89,896
	Asustek Computer Inc.		Technology Hardware, Storage & Peripherals		21,000		142,007
	AU Optronics Corp.		Electronic Equipment, Instruments & Components		264,000		55,346
	Capital Securities Corp.		Capital Markets		63,000		19,541
	Catcher Technology Co. Ltd.		Technology Hardware, Storage & Peripherals		22,000		142,222
	Cathay Financial Holding Co. Ltd.		Insurance		249,000		290,650
	Chailease Holding Co. Ltd.		Diversified Financial Services		36,080		109,165
	Chang Hwa Commercial Bank Ltd.		Banks		189,000		119,057
	Cheng Shin Rubber Industry Co. Ltd.		Auto Components		54,000		54,997
	Chicony Electronics Co. Ltd.		Technology Hardware, Storage & Peripherals		18,030		45,192
	China Airlines Ltd.		Airlines		69,000		15,082
	China Development Financial Holding Corp.		Insurance		417,000		102,314
a	China Life Insurance Co. Ltd.		Insurance		87,000		48,475
	China Motor Corp.		Automobiles		9,000		7,410
	China Steel Corp.		Metals & Mining		369,000		231,224
	Chunghwa Telecom Co. Ltd.		Diversified Telecommunication Services		114,000		405,238
	Compal Electronics Inc.		Technology Hardware, Storage & Peripherals		123,000		70,364
	CTBC Financial Holding Co. Ltd.		Banks		546,000		323,178
	Delta Electronics, Inc.		Electronic Equipment, Instruments & Components		66,000		262,983
	E.Sun Financial Holding Co. Ltd.		Banks		330,000		264,620
	Eclat Textile Co. Ltd.		Textiles, Apparel & Luxury Goods		6,000		47,716
	Epistar Corp.		Semiconductors & Semiconductor Equipment		30,000		25,594
	Eternal Materials Co. Ltd.		Chemicals		30,630		22,840
	EVA Airways Corp.		Airlines		69,000		20,284
a	Evergreen Marine Corp. Taiwan Ltd.		Marine		72,035		22,033
	Far Eastern International Bank		Banks		63,000		20,936
	Far Eastern New Century Corp.		Industrial Conglomerates		117,000		87,243
	Far EasTone Telecommunications Co. Ltd.		Wireless Telecommunication Services		48,000		100,471
	Feng Tay Enterprise Co. Ltd.		Textiles, Apparel & Luxury Goods		11,000		47,286
	First Financial Holding Co. Ltd.		Banks		294,000		191,032
	Formosa Chemicals & Fibre Corp.		Chemicals		102,000		225,981
	Formosa Petrochemical Corp.		Oil, Gas & Consumable Fuels		42,000		113,050
	Formosa Plastics Corp.		Chemicals		147,000		365,051
	Formosa Taffeta Co. Ltd.		Textiles, Apparel & Luxury Goods		30,000		30,554
	Foxconn Technology Co. Ltd.		Electronic Equipment, Instruments & Components		33,000		54,015
	Fubon Financial Holding Co. Ltd.		Insurance		222,000		275,651
	Giant Manufacturing Co. Ltd.		Leisure Equipment & Products		9,000		39,879
	Globalwafers Co. Ltd.		Semiconductors & Semiconductor Equipment		6,300		71,038
	Hon Hai Precision Industry Co. Ltd.		Electronic Equipment, Instruments & Components		357,000		825,167
	Hotai Motor Co. Ltd.		Specialty Retail		9,480		153,917
	HTC Corp.		Technology Hardware, Storage & Peripherals		21,000		19,721
	Hua Nan Financial Holdings Co. Ltd.		Banks		273,000		162,943
	Innolux Corp.		Electronic Equipment, Instruments & Components		258,000		44,619
	Inventec Corp.		Technology Hardware, Storage & Peripherals		90,000		69,342
	Largan Precision Co. Ltd.		Electronic Equipment, Instruments & Components		3,060		387,540
	Lite-On Technology Corp.		Technology Hardware, Storage & Peripherals		63,000		86,037
	MediaTek Inc.		Semiconductors & Semiconductor Equipment		44,000		476,498
	Mega Financial Holding Co. Ltd.		Banks		327,000		307,629
	Nan Ya Plastics Corp.		Chemicals		168,000		303,874
	Nanya Technology Corp.		Semiconductors & Semiconductor Equipment		24,000		42,617
	Novatek Microelectronics Corp. Ltd.		Semiconductors & Semiconductor Equipment		17,000		96,688
a	OBI Pharma, Inc.		Biotechnology		4,194		9,625
	Oriental Union Chemical Corp.		Chemicals		21,000		9,895



franklintempleton.com	Annual Report	291

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE Taiwan ETF (continued)



		Industry		Shares		Value
	Common Stocks (continued)
	Taiwan (continued)
	Pegatron Corp.		Technology Hardware, Storage & Peripherals		60,000	$	115,074
	Pou Chen Corp.		Textiles, Apparel & Luxury Goods		78,000		66,157
	President Chain Store Corp.		Food & Staples Retailing		16,600		155,343
	Quanta Computer Inc.		Technology Hardware, Storage & Peripherals		81,000		161,242
	Realtek Semiconductor Corp.		Semiconductors & Semiconductor Equipment		14,000		101,152
	Shin Kong Financial Holding Co. Ltd.		Insurance		342,008		86,289
	SinoPac Financial Holdings Co. Ltd.		Banks		312,040		114,017
	Synnex Technology International Corp.		Electronic Equipment, Instruments & Components		42,000		51,595
	Taishin Financial Holding Co. Ltd.		Banks		303,114		117,270
	Taiwan Business Bank		Banks		141,000		45,179
	Taiwan Cement Corp.		Construction Materials		144,000		188,086
	Taiwan Cooperative Financial Holding Co. Ltd.		Banks		279,000		169,292
	Taiwan Fertilizer Co. Ltd.		Chemicals		21,000		29,026
	Taiwan Glass Industry Corp.		Building Products		51,000		12,463
	Taiwan High Speed Rail Corp.		Transportation Infrastructure		63,000		59,893
	Taiwan Mobile Co. Ltd.		Wireless Telecommunication Services		48,000		158,564
	Taiwan Secom Co. Ltd.		Commercial Services & Supplies		9,000		24,374
	Taiwan Semiconductor Manufacturing Co. Ltd.		Semiconductors & Semiconductor Equipment		304,000		2,754,361
	Teco Electric & Machinery Co. Ltd.		Electrical Equipment		54,000		43,034
	The Shanghai Commercial & Savings Bank Ltd.		Banks		99,000		128,818
a	TPK Holding Co. Ltd.		Electronic Equipment, Instruments & Components		9,000		10,312
	Transcend Information, Inc.		Technology Hardware, Storage & Peripherals		9,000		19,791
	U-Ming Marine Transport Corp.		Marine		12,000		10,317
	Uni-President Enterprises Corp.		Food Products		144,000		312,365
	Unimicron Technology Corp.		Electronic Equipment, Instruments & Components		39,000		41,268
	United Microelectronics Corp.		Semiconductors & Semiconductor Equipment		333,000		150,305
	Vanguard International Semiconductor Corp.		Semiconductors & Semiconductor Equipment		27,000		52,944
	Walsin Lihwa Corp.		Electrical Equipment		93,000		33,828
	Walsin Technology Corp.		Electronic Equipment, Instruments & Components		15,000		79,857
	Wan Hai Lines Ltd.		Marine		24,000		10,912
	Win Semiconductors Corp.		Semiconductors & Semiconductor Equipment		12,000		104,558
	Wistron Corp.		Technology Hardware, Storage & Peripherals		81,000		65,622
	Wiwynn Corp.		Technology Hardware, Storage & Peripherals		2,500		58,033
	Yageo Corp.		Electronic Equipment, Instruments & Components		12,000		108,923
	Yuanta Financial Holding Co. Ltd.		Diversified Financial Services		333,000		171,227
	Yulon Motor Co. Ltd.		Automobiles		27,000		13,124
	Yulon Nissan Motor Co. Ltd.		Automobiles		1,000		7,639
	Zhen Ding Technology Holding Ltd.		Electronic Equipment, Instruments & Components		18,000		55,354

	Total Investments (Cost $14,184,770) 99.7%						13,861,307
	Other Assets, less Liabilities 0.3%						44,523

	Net Assets 100.0%					$	13,905,830

See Abbreviations on page 351.

^aNon-income producing.



292	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin FTSE United Kingdom ETF



	Year Ended March 31,

	2020			2019			2018^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.23		$	25.23		$	24.89


Income from investment operations^b:

Net investment income^c		1.08			1.05			0.38

Net realized and unrealized gains (losses)		(6.30	)		(1.21	)		0.07


Total from investment operations		(5.22	)		(0.16	)		0.45


Less distributions from net investment income		(1.09	)		(0.84	)		(0.11	)


Net asset value, end of year	$	17.92		$	24.23		$	25.23


Total return^d		(22.42)%			(0.51)%			1.80%

Ratios to average net assets^e

Total expenses		0.09%			0.09%			0.09%

Net investment income		4.84%			4.46%			3.68%

Supplemental data

Net assets, end of year (000’s)		$89,624			$29,076			$2,523

Portfolio turnover rate^f		4.41%	^g		10.10%			1.61%

^aFor the period November 2, 2017 (commencement of operations) to March 31, 2018.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year, except for non-recurring expenses, if any.

^fPortfolio turnover rate excludes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 4.41%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	293

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin FTSE United Kingdom ETF



		Industry			Shares		Value
	Common Stocks 99.0%
	Australia 2.7%
	Rio Tinto PLC		Metals & Mining			53,300	$	2,457,532

	Germany 0.1%
	TUI AG		Hotels, Restaurants & Leisure			21,100		94,919

	Ireland 1.9%
	CRH PLC		Construction Materials			38,600		1,052,009
	Flutter Entertainment PLC		Hotels, Restaurants & Leisure			3,700		334,360
	Smurfit Kappa Group PLC		Containers & Packaging			11,500		326,541


								1,712,910

	Kazakhstan 0.1%
	KAZ Minerals PLC		Metals & Mining			10,600		46,160

	Netherlands 0.5%
a,b,c	Just Eat Takeaway, 144A, Reg S		Internet & Direct Marketing Retail			5,300		398,247

	Russia 0.4%
	Evraz PLC		Metals & Mining			26,400		75,814
	Polymetal International PLC		Metals & Mining			16,400		280,524


								356,338

	South Africa 0.1%
	Investec PLC		Capital Markets			32,200		60,648

	Switzerland 1.1%
	Coca-Cola HBC AG		Beverages			9,400		202,456
	Glencore PLC		Metals & Mining			525,200		806,213


								1,008,669

	United Arab Emirates 0.0%^†
	NMC Health PLC		Health Care Providers & Services			3,705		5,128

	United Kingdom 92.0%
	3i Group PLC		Capital Markets			46,200		453,817
	Admiral Group PLC		Insurance			10,000		276,509
	Anglo American PLC		Metals & Mining			59,800		1,050,247
	Antofagasta PLC		Metals & Mining			16,800		161,025
	Ashmore Group PLC		Capital Markets			22,100		97,774
	Ashtead Group PLC		Trading Companies & Distributors			21,800		477,231
	Associated British Foods PLC		Food Products			16,900		380,127
	AstraZeneca PLC		Pharmaceuticals			63,600		5,690,598
	Auto Trader Group PLC		Interactive Media & Services			44,000		239,563
	Avast PLC		Software			26,300		128,291
	AVEVA Group PLC		Software			3,100		134,304
	Aviva PLC		Insurance			189,300		630,230
	B&M European Value Retail SA		Multiline Retail			42,900		146,709
	Babcock International Group PLC		Commercial Services & Supplies			12,300		58,443
	BAE Systems PLC		Aerospace & Defense			155,200		1,004,153
	Barclays PLC		Banks			833,300		972,392
	Barratt Developments PLC		Household Durables			48,900		267,394
	Bellway PLC		Household Durables			6,000		160,400
	BHP Group PLC		Metals & Mining			100,800		1,564,837
	BP PLC		Oil, Gas & Consumable Fuels			965,800		4,121,946
	British American Tobacco PLC		Tobacco			110,700		3,787,072
	British Land Co. PLC		Equity Real Estate Investment Trusts (REITs	)		45,100		188,009
	BT Group PLC		Diversified Telecommunication Services			423,500		619,115
	Bunzl PLC		Trading Companies & Distributors			16,300		329,341
	Burberry Group PLC		Textiles, Apparel & Luxury Goods			19,500		320,251
	Centrica PLC		Multi-Utilities			282,400		133,342
	Cineworld Group PLC		Entertainment			48,500		29,846
	Compass Group PLC		Hotels, Restaurants & Leisure			76,800		1,203,684



294	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE United Kingdom ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	United Kingdom (continued)
	ConvaTec Group PLC		Health Care Equipment & Supplies			70,900	$	163,957
	Croda International PLC		Chemicals			6,000		317,824
	DCC PLC		Industrial Conglomerates			4,800		303,540
	Derwent London PLC		Equity Real Estate Investment Trusts (REITs	)		4,900		198,677
	Diageo PLC		Beverages			111,800		3,585,573
	Direct Line Insurance Group PLC		Insurance			66,700		244,723
	DS Smith PLC		Containers & Packaging			61,800		211,036
	easyJet PLC		Airlines			9,400		66,553
	Experian PLC		Professional Services			44,000		1,228,096
	Ferguson PLC		Trading Companies & Distributors			11,000		689,611
	Fresnillo PLC		Metals & Mining			8,900		73,585
	G4S PLC		Commercial Services & Supplies			75,200		86,065
	GlaxoSmithKline PLC		Pharmaceuticals			237,600		4,462,196
	GVC Holdings PLC		Hotels, Restaurants & Leisure			28,100		195,467
	Halma PLC		Electronic Equipment, Instruments & Components			18,400		438,278
	Hargreaves Lansdown PLC		Capital Markets			14,800		254,349
	Hikma Pharmaceuticals PLC		Pharmaceuticals			6,800		171,584
	Hiscox Ltd.		Insurance			13,500		154,839
	HomeServe PLC		Commercial Services & Supplies			13,200		173,167
	Howden Joinery Group PLC		Trading Companies & Distributors			28,000		177,759
	HSBC Holdings PLC		Banks			981,700		5,529,400
	IMI PLC		Machinery			13,000		120,476
	Imperial Brands PLC		Tobacco			46,200		857,452
	Inchcape PLC		Distributors			19,400		104,206
	Informa PLC		Media			60,400		331,476
	InterContinental Hotels Group PLC		Hotels, Restaurants & Leisure			8,800		383,596
	Intermediate Capital Group PLC		Capital Markets			13,500		150,068
	International Consolidated Airlines Group SA		Airlines			21,700		57,877
	Intertek Group PLC		Professional Services			7,800		457,080
	ITV PLC		Media			180,600		147,842
	J Sainsbury PLC		Food & Staples Retailing			78,700		205,317
	JD Sports Fashion PLC		Specialty Retail			20,800		118,045
	John Wood Group PLC		Energy Equipment & Services			32,100		61,952
	Johnson Matthey PLC		Chemicals			9,200		205,108
	Kingfisher PLC		Specialty Retail			102,300		182,533
	Land Securities Group PLC		Equity Real Estate Investment Trusts (REITs	)		34,500		238,190
	Legal & General Group PLC		Insurance			287,000		689,846
	Lloyds Banking Group PLC		Banks			3,389,900		1,345,058
	London Stock Exchange Group PLC		Capital Markets			15,200		1,372,079
a	M&G PLC		Diversified Financial Services			126,000		175,919
	Marks & Spencer Group PLC		Multiline Retail			94,600		116,408
	Meggitt PLC		Aerospace & Defense			37,600		135,344
	Melrose Industries PLC		Electrical Equipment			233,400		264,805
	Micro Focus International PLC		Software			15,900		78,861
	Mondi PLC		Paper & Forest Products			23,500		402,407
	National Grid PLC		Multi-Utilities			168,600		1,978,920
	Next PLC		Multiline Retail			6,200		313,043
a	Ninety One PLC		Capital Markets			15,952		34,199
a	Ocado Group PLC		Internet & Direct Marketing Retail			21,900		331,290
	Pearson PLC		Media			37,200		254,893
	Pennon Group PLC		Water Utilities			20,300		273,231
	Persimmon PLC		Household Durables			15,400		365,960
	Phoenix Group Holdings PLC		Insurance			25,500		198,123
	Prudential PLC		Insurance			126,000		1,617,800
	Quilter PLC		Capital Markets			90,500		132,414
	Reckitt Benckiser Group PLC		Household Products			30,500		2,325,837
	RELX PLC		Professional Services			91,100		1,956,458
	Renishaw PLC		Electronic Equipment, Instruments & Components			1,700		66,694



franklintempleton.com	Annual Report	295

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE United Kingdom ETF (continued)



		Industry			Shares		Value
	Common Stocks (continued)
	United Kingdom (continued)
	Rentokil Initial PLC		Commercial Services & Supplies			89,700	$	431,325
	Rightmove PLC		Interactive Media & Services			42,400		256,245
	Rolls-Royce Holdings PLC		Aerospace & Defense			83,500		352,643
	Royal Bank of Scotland Group PLC		Banks			220,200		308,259
	Royal Dutch Shell PLC, A		Oil, Gas & Consumable Fuels			200,000		3,518,979
	Royal Dutch Shell PLC, B		Oil, Gas & Consumable Fuels			181,700		3,063,615
	RSA Insurance Group PLC		Insurance			49,900		260,116
	Schroders PLC		Capital Markets			5,400		166,322
	Segro PLC		Equity Real Estate Investment Trusts (REITs	)		52,800		500,186
	Severn Trent PLC		Water Utilities			11,500		325,115
	Smith & Nephew PLC		Health Care Equipment & Supplies			42,400		754,172
	Smiths Group PLC		Industrial Conglomerates			19,200		291,874
	Spirax-Sarco Engineering PLC		Machinery			3,600		364,471
	SSE PLC		Electric Utilities			50,200		812,304
	St. James’s Place Capital PLC		Capital Markets			25,400		239,234
	Standard Chartered PLC		Banks			127,600		705,334
	Standard Life Aberdeen PLC		Capital Markets			112,400		312,050
	Tate & Lyle PLC		Food Products			22,700		184,644
	Taylor Wimpey PLC		Household Durables			157,600		229,614
	Tesco PLC		Food & Staples Retailing			469,000		1,330,556
	The Berkeley Group Holdings PLC		Household Durables			5,700		255,498
	The Sage Group PLC		Software			52,700		386,714
	Travis Perkins PLC		Trading Companies & Distributors			12,200		133,514
	Unilever PLC		Personal Products			52,800		2,668,204
	United Utilities Group PLC		Water Utilities			33,100		370,530
a	Virgin Money UK PLC		Banks			59,900		46,049
	Vodafone Group PLC		Wireless Telecommunication Services			1,301,500		1,823,589
	Weir Group PLC		Machinery			12,600		112,645
	Whitbread PLC		Hotels, Restaurants & Leisure			6,500		244,208
	William Morrison Supermarkets PLC		Food & Staples Retailing			107,000		236,161
	WPP PLC		Media			58,200		397,918


								82,485,824

	United States 0.1%
	Carnival PLC		Hotels,Restaurants & Leisure			7,400		90,050

	Total Investments (Cost $118,603,881) 99.0%							88,716,425

	Other Assets, less Liabilities 1.0%							907,759

	Net Assets 100.0%						$	89,624,184

See Abbreviations on page 351.

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^bSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the value of this security was $398,247, representing 0.4% of net assets.

^cSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. At March 31, 2020, the value of this security was $398,247, representing 0.4% of net assets.



296	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin FTSE United Kingdom ETF (continued)

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).

Futures Contracts

Description

Type

Number of
Contracts

Notional
Amount*

Expiration
Date

Value/Unrealized
Appreciation
(Depreciation)

Equity Contracts

FTSE 100 Index

Long

908,406

6/19/20

77,270

*As of period end.

See Note 8 regarding other derivative information.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	297

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2020



	Franklin FTSE Asia ex Japan ETF			Franklin FTSE Australia ETF			Franklin FTSE Brazil ETF			Franklin FTSE Canada ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	18,205,698		$	11,774,833		$	196,823,499		$	6,365,137
Cost – Non-controlled affiliates (Note 3c)		5,040			—			—			—

Value – Unaffiliated issuers+	$	14,650,177		$	7,811,389		$	102,437,504		$	4,863,699
Value – Non-controlled affiliates (Note 3c)		5,040			—			—			—
Cash		1,555			—			—			807
Foreign currency, at value (cost $13,438, $28,235, $22,297 and $11,787, respectively)		13,394			28,108			22,065			11,880
Receivables:
Dividends and interest		49,342			37,428			696,318			12,232
Deposits with brokers for:
Futures contracts		22			—			39,359			—

Total assets		14,719,530			7,876,925			103,195,246			4,888,618

Liabilities:
Payables:
Investment securities purchased		—			6,044			—			12,182
Management fees		2,454			659			20,322			417
Variation margin on futures contracts		—			—			3,490			—
Funds advanced by custodian		—			49,946			471,890			—
Payable upon return of securities loaned		5,040			—			—			—

Total liabilities		7,494			56,649			495,702			12,599

Net assets, at value	$	14,712,036		$	7,820,276		$	102,699,544		$	4,876,019

Net assets consist of:
Paid-in capital	$	18,898,409		$	11,782,341		$	211,873,922		$	6,459,960
Total distributable earnings (loss)		(4,186,373	)		(3,962,065	)		(109,174,378	)		(1,583,941	)

Net assets, at value	$	14,712,036		$	7,820,276		$	102,699,544		$	4,876,019

Shares outstanding		800,000			450,000			7,100,000			250,000

Net asset value per share	$	18.39		$	17.38		$	14.46		$	19.50


+Includes securities loaned		4,878			—			—			—



298	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2020



	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	51,152,443		$	113,955,446		$	5,195,476		$	11,454,628
Cost – Non-controlled affiliates (Note 3c)		29,400			—			1			—

Value – Unaffiliated issuers+	$	48,800,261		$	90,723,746		$	3,756,696		$	8,684,148
Value – Non-controlled affiliates (Note 3c)		29,400			—			1			—
Cash		4,056			76,190			—			—
Foreign currency, at value (cost $9,609, $171,960, $13,520 and $6,043, respectively)		9,613			173,864			13,667			6,142
Receivables:
Dividends and interest++		336			314,488			38,263			12,171
Variation margin on futures contracts		—			4,871			—			—
Deposits with brokers for:
Futures contracts		—			69,149			11,766			—
Unrealized appreciation on OTC forward exchange contracts		—			—			105,667			—

Total assets		48,843,666			91,362,308			3,926,060			8,702,461

Liabilities:
Cash deposit due to brokers		36			—			—			—
Payables:
Investment securities purchased		—			—			27,364			—
Management fees		7,111			6,074			293			689
Variation margin on futures contracts		—			—			5,566			—
Funds advanced by custodian		—			—			7,036			263
Payable upon return of securities loaned		29,400			—			—			—
Unrealized depreciation on OTC forward exchange contracts		—			—			54,816			—

Total liabilities		36,547			6,074			95,075			952

Net assets, at value	$	48,807,119		$	91,356,234		$	3,830,985		$	8,701,509

Net assets consist of:
Paid-in capital	$	55,669,122		$	115,126,451		$	5,713,922		$	11,504,245
Total distributable earnings (loss)		(6,862,003	)		(23,770,217	)		(1,882,937	)		(2,802,736	)

Net assets, at value	$	48,807,119		$	91,356,234		$	3,830,985		$	8,701,509

Shares outstanding		2,200,000			4,800,000			200,000			450,000

Net asset value per share	$	22.19		$	19.03		$	19.15		$	19.34


+Includes securities loaned		28,455			—			—			—
++Includes European Union tax reclaims	$	—		$	181,241		$	32,327		$	821



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	299

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2020



	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	5,682,244		$	18,647,955		$	11,426,059		$	3,522,911

Value – Unaffiliated issuers	$	4,179,793		$	15,342,036		$	8,763,847		$	2,640,380
Cash		—			11,840			17,699			156
Foreign currency, at value (cost $2,902, $24,521, $7,317 and $843, respectively)		2,940			24,521			7,245			848
Receivables:
Dividends and interest		—			47,596			193			421
Variation margin on futures contracts		—			577			582			—
Deposits with brokers for:
Futures contracts		—			7,976			1,980			8

Total assets		4,182,733			15,434,546			8,791,546			2,641,813

Liabilities:
Payables:
Management fees		328			1,229			1,592			493
Funds advanced by custodian		305			—			—			—

Total liabilities		633			1,229			1,592			493

Net assets, at value	$	4,182,100		$	15,433,317		$	8,789,954		$	2,641,320

Net assets consist of:
Paid-in capital	$	5,794,408		$	18,826,786		$	12,053,336		$	3,728,641
Total distributable earnings (loss)		(1,612,308	)		(3,393,469	)		(3,263,382	)		(1,087,321	)

Net assets, at value	$	4,182,100		$	15,433,317		$	8,789,954		$	2,641,320

Shares outstanding		250,000			750,000			550,000			150,000

Net asset value per share	$	16.73		$	20.58		$	15.98		$	17.61



300	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2020



	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Latin America ETF			Franklin FTSE Mexico ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	391,126,755		$	5,376,088		$	2,555,597		$	4,447,432
Cost – Non-controlled affiliates (Note 3c)		124,941			—			—			—

Value – Unaffiliated issuers	$	311,631,698		$	4,204,422		$	1,512,368		$	2,865,896
Value – Non-controlled affiliates (Note 3c)		124,941			—			—			—
Cash		—			—			—			434
Foreign currency, at value (cost $730,645, $6,801, $8,975 and $4,246, respectively)		738,919			6,935			8,817			4,339
Receivables:
Investment securities sold		34,862			—			—			—
Dividends and interest		3,521,941			47,834			7,740			494
Deposits with brokers for:
Futures contracts		336,140			4,501			984			—
Unrealized appreciation on OTC forward exchange contracts		—			15,884			—			—

Total assets		316,388,501			4,279,576			1,529,909			2,871,163

Liabilities:
Payables:
Investment securities purchased		220			—			—			—
Management fees		24,483			318			293			543
Variation margin on futures contracts		296,304			4,622			87			—
Funds advanced by custodian		216,838			292			9,161			—
Unrealized depreciation on OTC forward exchange contracts		—			4,950			—			—

Total liabilities		537,845			10,182			9,541			543

Net assets, at value	$	315,850,656		$	4,269,394		$	1,520,368		$	2,870,620

Net assets consist of:
Paid-in capital	$	395,966,563		$	6,975,249		$	2,619,441		$	4,836,326
Total distributable earnings (loss)		(80,115,907	)		(2,705,855	)		(1,099,073	)		(1,965,706	)

Net assets, at value	$	315,850,656		$	4,269,394		$	1,520,368		$	2,870,620

Shares outstanding		14,400,000			200,000			100,000			200,000

Net asset value per share	$	21.93		$	21.35		$	15.20		$	14.35



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	301

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2020



	Franklin FTSE Russia ETF			Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	15,785,963		$	2,435,550		$	2,360,764		$	17,123,396

Value – Unaffiliated issuers	$	13,236,216		$	2,015,025		$	1,478,527		$	11,349,424
Cash		3,089			—			—			—
Foreign currency, at value (cost $-, $3,278, $2,284 and $15,401, respectively)		—			3,278			2,529			15,666
Receivables:
Dividends and interest		2,574			16,287			798			196,502
Variation margin on futures contracts		—			—			—			4,431
Deposits with brokers for:
Futures contracts		—			—			—			29,531

Total assets		13,241,879			2,034,590			1,481,854			11,595,554

Liabilities:
Payables:
Management fees		2,184			669			275			898
Funds advanced by custodian		—			18,844			275			32,385

Total liabilities		2,184			19,513			550			33,283

Net assets, at value	$	13,239,695		$	2,015,077		$	1,481,304		$	11,562,271

Net assets consist of:
Paid-in capital	$	16,206,684		$	2,482,525		$	2,441,624		$	21,044,528
Total distributable earnings (loss)		(2,966,989	)		(467,448	)		(960,320	)		(9,482,257	)

Net assets, at value	$	13,239,695		$	2,015,077		$	1,481,304		$	11,562,271

Shares outstanding		700,000			100,000			100,000			700,000

Net asset value per share	$	18.91		$	20.15		$	14.81		$	16.52



302	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities (continued)

March 31, 2020



	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	38,233,037		$	14,184,770		$	118,603,881

Value – Unaffiliated issuers	$	33,914,440		$	13,861,307		$	88,716,425
Cash		—			6,738			84,363
Foreign currency, at value (cost $150,406, $19,548 and $260,485, respectively)		151,963			19,575			261,766
Receivables:
Capital shares sold		—			—			2,694,989
Dividends and interest		154,593			20,572			416,773
Variation margin on futures contracts		10,806			—			13,059
Deposits with brokers for:
Futures contracts		32,559			4			105,308

Total assets		34,264,361			13,908,196			92,292,683

Liabilities:
Payables:
Investment securities purchased		—			—			2,661,336
Management fees		2,648			2,366			7,163
Funds advanced by custodian		49,180			—			—

Total liabilities		51,828			2,366			2,668,499

Net assets, at value	$	34,212,533		$	13,905,830		$	89,624,184

Net assets consist of:
Paid-in capital	$	38,353,403		$	14,383,078		$	119,525,004
Total distributable earnings (loss)		(4,140,870	)		(477,248	)		(29,900,820	)

Net assets, at value	$	34,212,533		$	13,905,830		$	89,624,184

Shares outstanding		1,400,000			600,000			5,000,000

Net asset value per share	$	24.44		$	23.18		$	17.92



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	303

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2020



	Franklin FTSE Asia ex Japan ETF			Franklin FTSE Australia ETF			Franklin FTSE Brazil ETF			Franklin FTSE Canada ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	427,820		$	478,638		$	2,893,711		$	158,016
Interest:
Unaffiliated issuers		—			—			36,809			—
Interest from securities loaned: (Note 1d)
Unaffiliated issuers (net of fees and rebates)		125			—			—			—
Non-Controlled affiliates (Note 3c)		32			—			—			—

Total investment income		427,977			478,638			2,930,520			158,016

Expenses:
Management fees (Note 3a)		32,418			9,862			124,056			5,037
Other		17			—			26,842			—

Total expenses		32,435			9,862			150,898			5,037
Expenses waived/paid by affiliates (Note 3c)		(120	)		—			—			—

Net investment income		395,662			468,776			2,779,622			152,979

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(408,157	)		(133,821	)		(5,569,980	)		(83,607	)
In-kind redemptions		—			339,724			—			118,870
Foreign currency transactions		(2,718	)		(2,860	)		(186,689	)		(742	)
Futures contracts		(2,901	)		—			(779,044	)		—

Net realized gain (loss)		(413,776	)		203,043			(6,535,713	)		34,521

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(2,369,455	)		(3,512,210	)		(95,412,983	)		(1,426,842	)
Translation of other assets and liabilities denominated in foreign currencies		(918	)		(2,616	)		(161,233	)		13
Futures contracts		(519	)		—			(7,118	)		—
Change in deferred taxes on unrealized appreciation		16,641			—			—			—

Net change in unrealized appreciation (depreciation)		(2,354,251	)		(3,514,826	)		(95,581,334	)		(1,426,829	)

Net realized and unrealized gain (loss)		(2,768,027	)		(3,311,783	)		(102,117,047	)		(1,392,308	)

Net increase (decrease) in net assets resulting from operations	$	(2,372,365	)	$	(2,843,007	)	$	(99,337,425	)	$	(1,239,329	)


^aForeign taxes withheld on dividends	$	47,315	$	8,304	$	316,932	$	27,863



304	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2020



	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	863,614		$	2,824,408		$	150,396		$	104,690
Interest:
Unaffiliated issuers		—			—			49			—
Interest from securities loaned: (Note 1d)
Unaffiliated issuers (net of fees and rebates)		100			462			—			—
Non-Controlled affiliates (Note 3c)		46			27			—			—

Total investment income		863,760			2,824,897			150,445			104,690

Expenses:
Management fees (Note 3a)		76,892			76,634			4,245			4,223
Other		—			124			141			—

Total expenses		76,892			76,758			4,386			4,223
Expenses waived/paid by affiliates (Note 3c)		(23	)		(5	)		(107	)		—

Net investment income		786,891			2,748,144			146,166			100,467

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(3,862,227	)		(866,247	)		(84,088	)		(37,186	)
In-kind redemptions		—			2,479,647			—			—
Foreign currency transactions		11,657			(9,711	)		19,141			(124	)
Futures contracts		(1,415	)		(59,156	)		1,517			965
Forwards exchange contracts		—			—			379,425			—

Net realized gain (loss)		(3,851,985	)		1,544,533			315,995			(36,345	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		686,179			(16,721,041	)		(728,926	)		(2,635,072	)
Translation of other assets and liabilities denominated in foreign currencies		74			7,284			1,474			40
Futures contracts		—			30,567			2,646			—
Forward exchange contracts		—			—			(174,949	)		—

Net change in unrealized appreciation (depreciation)		686,253			(16,683,190	)		(899,755	)		(2,635,032	)

Net realized and unrealized gain (loss)		(3,165,732	)		(15,138,657	)		(583,760	)		(2,671,377	)

Net increase (decrease) in net assets resulting from operations	$	(2,378,841	)	$	(12,390,513	)	$	(437,594	)	$	(2,570,910	)


^aForeign taxes withheld on dividends	$	68,724	$	294,928	$	17,605	$	17,738



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	305

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2020



	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	112,365		$	578,087		$	164,987		$	431,940
Interest:
Unaffiliated issuers		—			—			—			28

Total investment income		112,365			578,087			164,987			431,968

Expenses:
Management fees (Note 3a)		3,973			16,321			22,558			9,862
Other		—			—			187			9

Total expenses		3,973			16,321			22,745			9,871

Net investment income		108,392			561,766			142,242			422,097

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(95,313	)		(105,985	)		(523,841	)		(154,859	)
In-kind redemptions		—			464,882			—			(1,529,558	)
Foreign currency transactions		(7	)		447			(56,980	)		(462	)
Futures contracts		—			(12,094	)		(23,933	)		799

Net realized gain (loss)		(95,320	)		347,250			(604,754	)		(1,684,080	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(983,867	)		(5,058,405	)		(2,767,432	)		(1,387,615	)
Translation of other assets and liabilities denominated in foreign currencies		74			67			58			140
Futures contracts		—			5,668			1,262			—
Change in deferred taxes on unrealized appreciation		—			—			38,391			—

Net change in unrealized appreciation (depreciation)		(983,793	)		(5,052,670	)		(2,727,721	)		(1,387,475	)

Net realized and unrealized gain (loss)		(1,079,113	)		(4,705,420	)		(3,332,475	)		(3,071,555	)

Net increase (decrease) in net assets resulting from operations	$	(970,721	)	$	(4,143,654	)	$	(3,190,233	)	$	(2,649,458	)


^aForeign taxes withheld on dividends	$	17,794	$	366	$	9	$	62,109



306	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2020



	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Latin America ETF			Franklin FTSE Mexico ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	6,216,439		$	110,231		$	82,601		$	136,872
Non-controlled affiliates (Note 3c)		2,560			444			—			—
Interest from securities loaned: (Note 1d)
Unaffiliated issuers (net of fees and rebates)		2,971			—			—			—
Non-Controlled affiliates (Note 3c)		1,658			—			—			—

Total investment income		6,223,628			110,675			82,601			136,872

Expenses:
Management fees (Note 3a)		233,888			5,919			4,935			8,320
Other		1,520			74			442			37

Total expenses		235,408			5,993			5,377			8,357
Expenses waived/paid by affiliates (Note 3c)		(760	)		(93	)		—			—

Net investment income		5,988,980			104,775			77,224			128,515

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(2,461,195	)		(124,393	)		(56,809	)		(297,359	)
In-kind redemptions		2,168,597			(1,341,580	)		—			—
Foreign currency transactions		56,393			1,492			(3,142	)		(250	)
Futures contracts		142,382			(6,469	)		(50	)		127
Forwards exchange contracts		—			(128,377	)		—			—

Net realized gain (loss)		(93,823	)		(1,599,327	)		(60,001	)		(297,482	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(46,805,217	)		1,019,595			(1,044,708	)		(1,248,053	)
Translation of other assets and liabilities denominated in foreign currencies		21,284			455			(1,533	)		200
Futures contracts		(56,914	)		1,589			(1,060	)		—
Forward exchange contracts		—			(8,107	)		—			—

Net change in unrealized appreciation (depreciation)		(46,840,847	)		1,013,532			(1,047,301	)		(1,247,853	)

Net realized and unrealized gain (loss)		(46,934,670	)		(585,795	)		(1,107,302	)		(1,545,335	)

Net increase (decrease) in net assets resulting from operations	$	(40,945,690	)	$	(481,020	)	$	(1,030,078	)	$	(1,416,820	)


^aForeign taxes withheld on dividends	$	690,749	$	12,314	$	7,569	$	6,930



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	307

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2020



	Franklin FTSE Russia ETF			Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	1,055,230		$	99,475		$	270,263		$	271,646
Interest from securities loaned: (Note 1d)
Unaffiliated issuers (net of fees and rebates)		(323	)		—			—			3,981
Non-Controlled affiliates (Note 3c)		681			—			—			281

Total investment income		1,055,588			99,475			270,263			275,908

Expenses:
Management fees (Note 3a)		30,030			10,070			4,838			13,293
Other		—			—			—			36

Total expenses		30,030			10,070			4,838			13,329
Expenses waived/paid by affiliates (Note 3c)		(133	)		—			—			(66	)

Net investment income		1,025,691			89,405			265,425			262,645

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(208,625	)		(62,727	)		(84,552	)		(2,042,442	)
Foreign currency transactions		(8,692	)		(75	)		(995	)		17,539
Futures contracts		—			—			—			(6,694	)
Forwards exchange contracts		—			(58	)		—			—

Net realized gain (loss)		(217,317	)		(62,860	)		(85,547	)		(2,031,597	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(3,085,796	)		(717,503	)		(1,090,949	)		(1,639,777	)
Translation of other assets and liabilities denominated in foreign currencies		174			(4	)		79			(3,461	)
Futures contracts		—			—			—			(16,486	)

Net change in unrealized appreciation (depreciation)		(3,085,622	)		(717,507	)		(1,090,870	)		(1,659,724	)

Net realized and unrealized gain (loss)		(3,302,939	)		(780,367	)		(1,176,417	)		(3,691,321	)

Net increase (decrease) in net assets resulting from operations	$	(2,277,248	)	$	(690,962	)	$	(910,992	)	$	(3,428,676	)


^aForeign taxes withheld on dividends	$	118,715	$	3,822	$	11,914	$	53,072



308	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations (continued)

for the year ended March 31, 2020



	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	442,635		$	562,171		$	1,864,275
Interest:
Unaffiliated issuers		7			56			—

Total investment income		442,642			562,227			1,864,275

Expenses:
Management fees (Note 3a)		9,456			29,853			34,029
Other		—			375			128

Total expenses		9,456			30,228			34,157

Net investment income		433,186			531,999			1,830,118

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(200,968	)		(80,205	)		(699,579	)
In-kind redemptions		61,171			—			(870,010	)
Foreign currency transactions		(3,356	)		(573	)		(17,147	)
Futures contracts		(1,942	)		13,729			(222,075	)

Net realized gain (loss)		(145,095	)		(67,049	)		(1,808,811	)

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(4,270,914	)		(872,169	)		(29,710,450	)
Translation of other assets and liabilities denominated in foreign currencies		2,086			159			(1,643	)
Futures contracts		25,928			—			70,468

Net change in unrealized appreciation (depreciation)		(4,242,900	)		(872,010	)		(29,641,625	)

Net realized and unrealized gain (loss)		(4,387,995	)		(939,059	)		(31,450,436	)

Net increase (decrease) in net assets resulting from operations	$	(3,954,809	)	$	(407,060	)	$	(29,620,318	)


^aForeign taxes withheld on dividends	$	77,269	$	150,814	$	25,528



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	309

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin FTSE Asia ex Japan ETF						Franklin FTSE Australia ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	395,662		$	382,992		$	468,776		$	374,062
Net realized gain (loss)		(413,776	)		(215,726	)		203,043			392,801
Net change in unrealized appreciation (depreciation)		(2,354,251	)		(1,187,115	)		(3,514,826	)		(276,343	)

Net increase (decrease) in net assets resulting from operations		(2,372,365	)		(1,019,849	)		(2,843,007	)		490,520

Distributions to shareholders (Note 1f)		(403,670	)		(370,953	)		(500,460	)		(242,641	)

Capital share transactions: (Note 2)		—			9,428,138			3,774,628			4,674,690

Net increase (decrease) in net assets		(2,776,035	)		8,037,336			431,161			4,922,569
Net assets:
Beginning of year		17,488,071			9,450,735			7,389,115			2,466,546

End of year (Note 1f)	$	14,712,036		$	17,488,071		$	7,820,276		$	7,389,115



310	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Brazil ETF						Franklin FTSE Canada ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	2,779,622		$	831,596		$	152,979		$	110,177
Net realized gain (loss)		(6,535,713	)		(9,920,956	)		34,521			(143,008	)
Net change in unrealized appreciation (depreciation)		(95,581,334	)		950,677			(1,426,829	)		91,259

Net increase (decrease) in net assets resulting from operations		(99,337,425	)		(8,138,683	)		(1,239,329	)		58,428

Distributions to shareholders (Note 1f)		(1,076,875	)		(923,263	)		(139,563	)		(95,664	)

Capital share transactions: (Note 2)		182,535,019			(14,952,279	)		1,428,015			2,487,064

Net increase (decrease) in net assets		82,120,719			(24,014,225	)		49,123			2,449,828
Net assets:
Beginning of year		20,578,825			44,593,050			4,826,896			2,377,068

End of year (Note 1f)	$	102,699,544		$	20,578,825		$	4,876,019		$	4,826,896



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	311

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE China ETF						Franklin FTSE Europe ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	786,891		$	576,193		$	2,748,144		$	3,116,118
Net realized gain (loss)		(3,851,985	)		(603,039	)		1,544,533			(1,055,832	)
Net change in unrealized appreciation (depreciation)		686,253			(1,780,744	)		(16,683,190	)		(5,306,884	)

Net increase (decrease) in net assets resulting from operations		(2,378,841	)		(1,807,590	)		(12,390,513	)		(3,246,598	)

Distributions to shareholders (Note 1f)		(787,837	)		(584,365	)		(2,821,950	)		(3,141,008	)

Capital share transactions: (Note 2)		8,753,375			14,421,020			32,209,377			(24,163,732	)

Net increase (decrease) in net assets		5,586,697			12,029,065			16,996,914			(30,551,338	)
Net assets:
Beginning of year		43,220,422			31,191,357			74,359,320			104,910,658

End of year (Note 1f)	$	48,807,119		$	43,220,422		$	91,356,234		$	74,359,320



312	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Europe Hedged ETF						Franklin FTSE France ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	146,166		$	1,007,339		$	100,467		$	70,225
Net realized gain (loss)		315,995			(619,268	)		(36,345	)		(13,591	)
Net change in unrealized appreciation (depreciation)		(899,755	)		581,744			(2,635,032	)		(134,495	)

Net increase (decrease) in net assets resulting from operations		(437,594	)		969,815			(2,570,910	)		(77,861	)

Distributions to shareholders (Note 1f)		(294,228	)		(3,462,145	)		(86,176	)		(68,766	)

Capital share transactions: (Note 2)		—			(26,372,741	)		8,972,173			—

Net increase (decrease) in net assets		(731,822	)		(28,865,071	)		6,315,087			(146,627	)
Net assets:
Beginning of year		4,562,807			33,427,878			2,386,422			2,533,049

End of year (Note 1f)	$	3,830,985		$	4,562,807		$	8,701,509		$	2,386,422



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	313

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Germany ETF						Franklin FTSE Hong Kong ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	108,392		$	74,153		$	561,766		$	329,771
Net realized gain (loss)		(95,320	)		(26,064	)		347,250			(82,452	)
Net change in unrealized appreciation (depreciation)		(983,793	)		(420,241	)		(5,052,670	)		1,512,009

Net increase (decrease) in net assets resulting from operations		(970,721	)		(372,152	)		(4,143,654	)		1,759,328

Distributions to shareholders (Note 1f)		(114,909	)		(59,669	)		(569,121	)		(273,434	)

Capital share transactions: (Note 2)		1,127,565			2,111,997			28,395			10,779,669

Net increase (decrease) in net assets		41,935			1,680,176			(4,684,380	)		12,265,563
Net assets:
Beginning of year		4,140,165			2,459,989			20,117,697			7,852,134

End of year (Note 1f)	$	4,182,100		$	4,140,165		$	15,433,317		$	20,117,697



314	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE India ETF						Franklin FTSE Italy ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	142,242		$	70,302		$	422,097		$	117,532
Net realized gain (loss)		(604,754	)		(78,187	)		(1,684,080	)		(226,842	)
Net change in unrealized appreciation (depreciation)		(2,727,721	)		175,178			(1,387,475	)		433,507

Net increase (decrease) in net assets resulting from operations		(3,190,233	)		167,293			(2,649,458	)		324,197

Distributions to shareholders (Note 1f)		(83,995	)		(47,624	)		(414,228	)		(91,568	)

Capital share transactions: (Note 2)		5,057,008			4,613,517			(4,705,377	)		7,550,898

Net increase (decrease) in net assets		1,782,780			4,733,186			(7,769,063	)		7,783,527
Net assets:
Beginning of year		7,007,174			2,273,988			10,410,383			2,626,856

End of year (Note 1f)	$	8,789,954		$	7,007,174		$	2,641,320		$	10,410,383



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	315

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Japan ETF						Franklin FTSE Japan Hedged ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	5,988,980		$	5,403,894		$	104,775		$	618,951
Net realized gain (loss)		(93,823	)		1,361,394			(1,599,327	)		(379,945	)
Net change in unrealized appreciation (depreciation)		(46,840,847	)		(27,193,949	)		1,013,532			(1,905,925	)

Net increase (decrease) in net assets resulting from operations		(40,945,690	)		(20,428,661	)		(481,020	)		(1,666,919	)

Distributions to shareholders (Note 1f)		(5,496,937	)		(3,317,982	)		—			(2,263,375	)

Capital share transactions: (Note 2)		72,087,879			217,869,864			(9,119,221	)		(27,397,137	)

Net increase (decrease) in net assets		25,645,252			194,123,221			(9,600,241	)		(31,327,431	)
Net assets:
Beginning of year		290,205,404			96,082,183			13,869,635			45,197,066

End of year (Note 1f)	$	315,850,656		$	290,205,404		$	4,269,394		$	13,869,635



316	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Latin America ETF						Franklin FTSE Mexico ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019^a			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	77,224		$	37,946		$	128,515		$	79,171
Net realized gain (loss)		(60,001	)		(5,596	)		(297,482	)		(72,084	)
Net change in unrealized appreciation (depreciation)		(1,047,301	)		834			(1,247,853	)		(350,568	)

Net increase (decrease) in net assets resulting from operations		(1,030,078	)		33,184			(1,416,820	)		(343,481	)

Distributions to shareholders (Note 1f)		(90,264	)		(11,915	)		(134,178	)		(78,632	)

Capital share transactions: (Note 2)		—			2,619,441			—			2,346,009

Net increase (decrease) in net assets		(1,120,342	)		2,640,710			(1,550,998	)		1,923,896
Net assets:
Beginning of year		2,640,710			—			4,421,618			2,497,722

End of year (Note 1f)	$	1,520,368		$	2,640,710		$	2,870,620		$	4,421,618

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	317

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Russia ETF						Franklin FTSE Saudi Arabia ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	1,025,691		$	319,495		$	89,405		$	11,269
Net realized gain (loss)		(217,317	)		(76,440	)		(62,860	)		(1,893	)
Net change in unrealized appreciation (depreciation)		(3,085,622	)		499,491			(717,507	)		296,978

Net increase (decrease) in net assets resulting from operations		(2,277,248	)		742,546			(690,962	)		306,354

Distributions to shareholders (Note 1f)		(1,112,109	)		(307,541	)		(82,840	)		—

Capital share transactions: (Note 2)		4,946,037			8,824,329			—			2,482,525

Net increase (decrease) in net assets		1,556,680			9,259,334			(773,802	)		2,788,879
Net assets:
Beginning of year		11,683,015			2,423,681			2,788,879			—

End of year (Note 1f)	$	13,239,695		$	11,683,015		$	2,015,077		$	2,788,879

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.



318	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE South Africa ETF						Franklin FTSE South Korea ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019^a			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	265,425		$	21,691		$	262,645		$	378,016
Net realized gain (loss)		(85,547	)		(4,371	)		(2,031,597	)		(1,589,948	)
Net change in unrealized appreciation (depreciation)		(1,090,870	)		208,803			(1,659,724	)		(3,252,311	)

Net increase (decrease) in net assets resulting from operations		(910,992	)		226,123			(3,428,676	)		(4,464,243	)

Distributions to shareholders (Note 1f)		(269,501	)		(5,950	)		(322,884	)		(340,269	)

Capital share transactions: (Note 2)		—			2,441,624			(1,634,635	)		(4,227,746	)

Net increase (decrease) in net assets		(1,180,493	)		2,661,797			(5,386,195	)		(9,032,258	)
Net assets:
Beginning of year		2,661,797			—			16,948,466			25,980,724

End of year (Note 1f)	$	1,481,304		$	2,661,797		$	11,562,271		$	16,948,466

^aFor the period October 10, 2018 (commencement of operations) to March 31, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	319

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE Switzerland ETF						Franklin FTSE Taiwan ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019			Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	433,186		$	57,316		$	531,999		$	158,804
Net realized gain (loss)		(145,095	)		(119,463	)		(67,049	)		(103,534	)
Net change in unrealized appreciation (depreciation)		(4,242,900	)		18,957			(872,010	)		400,486

Net increase (decrease) in net assets resulting from operations		(3,954,809	)		(43,190	)		(407,060	)		455,756

Distributions to shareholders (Note 1f)		(65,702	)		(60,937	)		(520,726	)		(144,725	)

Capital share transactions: (Note 2)		35,847,030			179,347			—			9,254,307

Net increase (decrease) in net assets		31,826,519			75,220			(927,786	)		9,565,338
Net assets:
Beginning of year		2,386,014			2,310,794			14,833,616			5,268,278

End of year (Note 1f)	$	34,212,533		$	2,386,014		$	13,905,830		$	14,833,616



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FINANCIAL STATEMENTS

Statements of Changes in Net Assets (continued)



	Franklin FTSE United Kingdom ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019
Increase (decrease) in net assets:
Operations:
Net investment income	$	1,830,118		$	633,075
Net realized gain (loss)		(1,808,811	)		680,822
Net change in unrealized appreciation (depreciation)		(29,641,625	)		(181,708	)

Net increase (decrease) in net assets resulting from operations		(29,620,318	)		1,132,189

Distributions to shareholders (Note 1f)		(1,337,064	)		(324,863	)

Capital share transactions: (Note 2)		91,505,345			25,746,068

Net increase (decrease) in net assets		60,547,963			26,553,394
Net assets:
Beginning of year		29,076,221			2,522,827

End of year (Note 1f)	$	89,624,184		$	29,076,221



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FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of forty-two separate funds, twenty-three of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Each of the Funds are an exchange traded fund (ETF) and seek to provide the investment results that closely correspond, before fees and expenses, to the performance of each Fund’s corresponding underlying index.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

Equity securities and derivative financial instruments listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that



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1. Organization and Significant Accounting Policies (continued)

a. Financial Instrument Valuation (continued)

the Funds’ NAV is not calculated, which could result in differences between the value of the Funds’ portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Funds for financial reporting purposes

b. Foreign Currency Translation

c. Derivative Financial Instruments

Certain or all Funds invested in derivative financial instruments in order to manage risk or gain exposure to various other investments or markets. Derivatives are financial contracts

based on an underlying or notional amount, require no initial investment or an initial net investment that is smaller than would normally be required to have a similar response to changes in market factors, and require or permit net settlement. Derivatives contain various risks including the potential inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statements of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statements of Operations.



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NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

c. Derivative Financial Instruments (continued)

and/or received by the Fund, if any, is held in segregated accounts with the Fund’s custodian/counterparty broker and can be in the form of cash and/or securities. Unrestricted cash may be invested according to the Funds’ investment objectives. To the extent that the amounts due to the Fund from its counterparties are not subject to collateralization or are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance.

See Note 8 regarding other derivative information.

d. Securities Lending

Certain or all Funds participate in an agency based securities lending program to earn additional income. The Fund receives cash collateral against the loaned securities in an amount equal to at least 102% of the fair value of the loaned securities. Collateral is maintained over the life of the loan in an amount not less than 100% of the fair value of loaned securities, as determined at the close of Fund business each day; any additional collateral required due to changes in security values is delivered to the Fund on the next business day. The collateral is deposited into a joint cash account with other funds and is used to invest in a money market fund managed by Franklin Advisers, Inc., an affiliate of the Funds. The Fund may receive income from the investment of cash collateral, in addition to lending fees and rebates paid by the borrower. Income from securities loaned, net of fees paid to the securities lending agent and/or third-party vendor, is reported separately in the Statements of Operations. The Fund bears the market risk with respect to the collateral investment, securities loaned, and the risk that the agent may

default on its obligations to the Fund. If the borrower defaults on its obligation to return the securities loaned, the Fund has the right to repurchase the securities in the open market using the collateral received. The securities lending agent has agreed to indemnify the Fund in the event of default by a third party borrower.

e. Income and Deferred Taxes

f. Security Transactions, Investment Income, Expenses and Distributions



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NOTES TO FINANCIAL STATEMENTS

in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

For the year ended March 31, 2019, distributions to shareholders were as follows:



	Franklin FTSE Asia ex Japan ETF			Franklin FTSE Australia ETF			Franklin FTSE Brazil ETF			Franklin FTSE Canada ETF
Distributions from net investment income:	$	(370,953	)	$	(242,641	)	$	(923,263	)	$	(95,664	)

	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Distributions from net investment income:	$	(584,365	)	$	(3,141,008	)	$	(3,462,145	)	$	(68,766	)

	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF
Distributions from net investment income:	$	(59,669	)	$	(273,434	)	$	(47,624	)		(91,568	)

	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Latin America ETF			Franklin FTSE Mexico ETF
Distributions from net investment income:	$	(3,317,982	)	$	(2,263,375	)	$	(11,915	)	$	(78,632	)

	Franklin FTSE Russia ETF			Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF
Distributions from net investment income:	$	(307,541	)	$	—		$	(5,950	)	$	(340,269	)

	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Distributions from net investment income:	$	(60,937	)	$	(144,725	)	$	(324,863	)

For the year ended March 31, 2019, undistributed net investment income, distributions in excess of net investment income, and accumulated net investment loss included in net assets were as follows:



Fund	Undistributed net investment income		Distribution in excess of net investment income		Accumulated net investment loss
Franklin FTSE Asia ex Japan ETF	$	16,688	$	—	$	—
Franklin FTSE Australia ETF		172,520		—		—
Franklin FTSE Brazil ETF		200,193		—		—
Franklin FTSE Canada ETF		29,245		—		—



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1. Organization and Significant Accounting Policies (continued)

f. Security Transactions, Investment Income, Expenses and Distributions (continued)

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

f. Security Transactions, Investment Income, Expenses and Distributions (continued)



Fund	Undistributed net investment income		Distribution in excess of net investment income			Accumulated net investment loss
Franklin FTSE China ETF	$	—	$	(19,065	)	$	—
Franklin FTSE Europe ETF		589,782		—			—
Franklin FTSE Europe Hedged ETF		—		(103	)		—
Franklin FTSE France ETF		3,535		—			—
Franklin FTSE Germany ETF		18,761		—			—
Franklin FTSE Hong Kong ETF		84,248		—			—
Franklin FTSE India ETF		18,951		—			—
Franklin FTSE Italy ETF		30,969		—			—
Franklin FTSE Japan ETF		2,854,317		—			—
Franklin FTSE Japan Hedged ETF		—		(257,591	)		—
Franklin FTSE Latin America ETF		25,461		—			—
Franklin FTSE Mexico ETF		5,792		—			—
Franklin FTSE Russia ETF		11,613		—			—
Franklin FTSE Saudi Arabia ETF		9,546		—			—
Franklin FTSE South Africa ETF		15,557		—			—
Franklin FTSE South Korea ETF		39,728		—			—
Franklin FTSE Switzerland ETF		18,255		—			—
Franklin FTSE Taiwan ETF		—		(697	)		—
Franklin FTSE United Kingdom ETF		340,278		—			—

g. Accounting Estimates

h. Guarantees and Indemnifications



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest

At March 31, 2020, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:


	Franklin FTSE Asia ex Japan ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			400,000		$	9,428,138

Net increase (decrease)		—		$	—			400,000		$	9,428,138


	Franklin FTSE Australia ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		250,000		$	6,380,606			500,000		$	12,241,732
Shares redeemed		(100,000	)		(2,605,978	)		(300,000	)		(7,567,042	)

Net increase (decrease)		150,000		$	3,774,628			200,000		$	4,674,690


	Franklin FTSE Brazil ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		6,800,000		$	194,991,129			300,000		$	7,431,063
Shares redeemed		(500,000	)		(12,456,110	)		(1,100,000	)		(22,383,342	)

Net increase (decrease)		6,300,000		$	182,535,019			(800,000	)	$	(14,952,279	)



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)


	Franklin FTSE Canada ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		100,000		$	2,645,197			200,000		$	4,802,307
Shares redeemed		(50,000	)		(1,217,182	)		(100,000	)		(2,315,243	)

Net increase (decrease)		50,000		$	1,428,015			100,000		$	2,487,064


	Franklin FTSE China ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		600,000		$	13,290,874			600,000		$	14,421,020
Shares redeemed		(200,000	)		(4,537,499	)		—			—

Net increase (decrease)		400,000		$	8,753,375			600,000		$	14,421,020


	Franklin FTSE Europe ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		3,600,000		$	79,020,679			—		$	—
Shares redeemed		(2,000,000	)		(46,811,302	)		(1,000,000	)		(24,163,732	)

Net increase (decrease)		1,600,000		$	32,209,377			(1,000,000	)	$	(24,163,732	)


	Franklin FTSE Europe Hedged ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares redeemed		—		$	—			(1,200,000	)	$	(26,372,741	)

Net increase (decrease)		—		$	—			(1,200,000	)	$	(26,372,741	)


	Franklin FTSE France ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		350,000		$	8,972,173			—		$	—

Net increase (decrease)		350,000		$	8,972,173			—		$	—


	Franklin FTSE Germany ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		50,000		$	1,127,565			100,000		$	2,111,997

Net increase (decrease)		50,000		$	1,127,565			100,000		$	2,111,997



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)


	Franklin FTSE Hong Kong ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		300,000		$	7,218,089			450,000		$	10,779,669
Shares redeemed		(300,000	)		(7,189,694	)		—			—

Net increase (decrease)				$	28,395			450,000		$	10,779,669


	Franklin FTSE India ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		400,000		$	8,528,590			200,000		$	4,613,517
Shares redeemed		(150,000	)		(3,471,582	)		—			—

Net increase (decrease)		250,000		$	5,057,008			200,000		$	4,613,517


	Franklin FTSE Italy ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		50,000		$	1,118,853			650,000		$	14,664,447
Shares redeemed		(350,000	)		(5,824,230	)		(300,000	)		(7,113,549	)

Net increase (decrease)		(300,000	)	$	(4,705,377	)		350,000		$	7,550,898


	Franklin FTSE Japan ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		7,800,000		$	202,804,002			9,600,000		$	246,910,441
Shares redeemed		(5,400,000	)		(130,716,123	)		(1,200,000	)		(29,040,577	)

Net increase (decrease)		2,400,000		$	72,087,879			8,400,000		$	217,869,864


	Franklin FTSE Japan Hedged ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares redeemed		(400,000	)	$	(9,119,221	)		(1,200,000	)	$	(27,397,137	)

Net increase (decrease)		(400,000	)	$	(9,119,221	)		(1,200,000	)	$	(27,397,137	)


	Franklin FTSE Latin America ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019^a

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			100,000		$	2,619,441

Net increase (decrease)		—		$	—			100,000		$	2,619,441



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)


	Franklin FTSE Mexico ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			100,000		$	2,346,009

Net increase (decrease)		—		$	—			100,000		$	2,346,009


	Franklin FTSE Russia ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		200,000		$	4,946,037			500,000		$	11,087,284
Shares redeemed		—			—			(100,000	)		(2,262,955	)

Net increase (decrease)		200,000		$	4,946,037			400,000		$	8,824,329


	Franklin FTSE Saudi Arabia ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019^a

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			100,000		$	2,482,525

Net increase (decrease)		—		$	—			100,000		$	2,482,525


	Franklin FTSE South Africa ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019^b

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			100,000		$	2,441,624

Net increase (decrease)		—		$	—			100,000		$	2,441,624


	Franklin FTSE South Korea ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		100,000		$	2,002,593			—		$	13,712
Shares redeemed		(200,000	)		(3,637,228	)		(200,000	)		(4,241,458	)

Net increase (decrease)		(100,000	)	$	(1,634,635	)		(200,000	)	$	(4,227,746	)


	Franklin FTSE Switzerland ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		1,400,000		$	37,960,491			100,000		$	2,352,537
Shares redeemed		(100,000	)		(2,113,461	)		(100,000	)		(2,173,190	)

Net increase (decrease)		1,300,000		$	35,847,030					$	179,347



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NOTES TO FINANCIAL STATEMENTS

2. Shares of Beneficial Interest (continued)


	Franklin FTSE Taiwan ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		—		$	—			400,000		$	9,254,307

Net increase (decrease)		—		$	—			400,000		$	9,254,307


	Franklin FTSE United Kingdom ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019

	Shares			Amount			Shares			Amount
Shares sold		4,800,000		$	111,979,995			1,450,000		$	34,027,374
Shares redeemed		(1,000,000	)		(20,474,650	)		(350,000	)		(8,281,306	)

Net increase (decrease)		3,800,000		$	91,505,345			1,100,000		$	25,746,068

^aFor the period October 9, 2018 (commencement of operations) to March 31, 2019.

^bFor the period October 10, 2018 (commencement of operations) to March 31, 2019.

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc (Advisers)		Investment manager
Franklin Advisory Services, LLC (FASL)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter

a. Management Fees

The Funds pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Funds’ acquired fund fee and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other non-routine or extraordinary expenses. The fees are based on the daily net assets of each of the Funds as follows:



		Annualized Fee Rate
Franklin FTSE Asia ex Japan ETF		0.19%
Franklin FTSE Australia ETF		0.09%
Franklin FTSE Brazil ETF		0.19%
Franklin FTSE Canada ETF		0.09%
Franklin FTSE China ETF		0.19%
Franklin FTSE Europe ETF		0.09%
Franklin FTSE Europe Hedged ETF		0.09%



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NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

a. Management Fees (continued)



		Annualized Fee Rate
Franklin FTSE France ETF		0.09%
Franklin FTSE Germany ETF		0.09%
Franklin FTSE Hong Kong ETF		0.09%
Franklin FTSE India ETF		0.19%
Franklin FTSE Italy ETF		0.09%
Franklin FTSE Japan ETF		0.09%
Franklin FTSE Japan Hedged ETF		0.09%
Franklin FTSE Latin America ETF		0.19%
Franklin FTSE Mexico ETF		0.19%
Franklin FTSE Russia ETF		0.19%
Franklin FTSE Saudi Arabia ETF		0.39%
Franklin FTSE South Africa ETF		0.19%
Franklin FTSE South Korea ETF		0.09%
Franklin FTSE Switzerland ETF		0.09%
Franklin FTSE Taiwan ETF		0.19%
Franklin FTSE United Kingdom ETF		0.09%

b. Administrative Fees

c. Investments in Affiliated Management Investment Companies



	Value at Beginning of Year		Purchases		Sales			Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Year		Number of Shares Held at End of Year		Investment Income

Franklin FTSE Asia ex Japan ETF
Non-Controlled Affiliates																	Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	—	$	140,825	$	(135,785	)	$	—	$	—	$	5,040		5,040	$	32

Franklin FTSE China ETF
Non-Controlled Affiliates																Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	—	$	390,240	$	(360,840	)	$	—	$	—	$	29,400		29,400	$	46



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3. Transactions with Affiliates (continued)

c. Investments in Affiliated Management Investment Companies (continued)



	Value at Beginning of Year		Purchases		Sales			Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)		Value at End of Year		Number of Shares Held at End of Year		Investment Income

Franklin FTSE Europe ETF
Non-Controlled Affiliates																	Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	—	$	30,019	$	(30,019	)	$	—	$	—	$	—		—	$	27

Franklin FTSE Europe Hedged ETF
Non-Controlled Affiliates																	Dividend Income

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	38	$	176,222	$	(176,259	)	$	—	$	—	$	1		1	$	—

Franklin FTSE Japan ETF
Non-Controlled Affiliates																	Dividend Income

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	114,341	$	3,704,825	$	(3,694,225	)	$	—	$	—	$	124,941		124,941	$	2,560
Non-Controlled Affiliates																	Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	117,035	$	2,129,861	$	(2,246,896	)	$	—	$	—	$	—		—	$	1,658

Total Affiliated Securities	$	231,376	$	5,834,686	$	(5,941,121	)	$	—	$	—	$	124,941		124,941	$	4,218


Franklin FTSE Japan Hedged ETF
Non-Controlled Affiliates																	Dividend Income

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	28,014	$	133,045	$	(161,059	)	$	—	$	—	$	—		—	$	444

Franklin FTSE Russia ETF
Non-Controlled Affiliates																	Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	—	$	1,728,315	$	(1,728,315	)	$	—	$	—	$	—		—	$	681

Franklin FTSE South Korea ETF
Non-Controlled Affiliates																	Income from securities loaned

Institutional Fiduciary Trust Money Market Portfolio 0.32%	$	—	$	223,950	$	(223,950	)	$	—	$	—	$	—		—	$	281



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3. Transactions with Affiliates (continued)

d. Other Affiliated Transactions

At March 31, 2020, the shares of the Funds were owned by the following entities:



Funds	Shares		Percentage of Outstanding Shares^a

Franklin FTSE Brazil ETF
Franklin Resource Inc.		2,110,000		29.7%


Franklin FTSE Europe ETF
Franklin Conservative Allocation Fund		542,880		11.3%
Franklin Moderate Allocation Fund		1,321,337		27.5%
Franklin Growth Allocation Fund		1,167,000		24.3%
Franklin LifeSmart™ 2020 – 2055 Retirement Target Funds		576,220		12.0%
Franklin 529 Portfolios		901,550		18.8%

Total		4,508,987		93.9%


Franklin FTSE Europe Hedge ETF
Franklin Resource Inc.		110,000		55.0%


Franklin FTSE Japan ETF
Franklin 529 Portfolios		761,136		5.3%


Franklin FTSE Japan Hedge ETF
Franklin Resources Inc.		75,000		37.5%


Franklin FTSE Latin America ETF
Franklin Resource Inc.		46,000		46.0%


Franklin FTSE Russia ETF
Franklin Resources Inc.		80,000		11.4%


Franklin FTSE Saudi Arabia ETF
Franklin Resources Inc.		46,000		46.0%


Franklin FTSE South Africa ETF
Franklin Resources Inc.		31,000		31.0%


Franklin FTSE United Kingdom ETF
Franklin Managed Income Fund		2,000,000		40.0%

^aInvestment activities of significant shareholders could have a material impact on the Funds.

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains. At March 31, 2020, the capital loss carryforwards were as follows:



	Franklin FTSE Asia ex Japan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
Capital loss carryforwards not subject to expiration:
Long term	$	430,651	$	66,544	$	1,261,450	$	74,271
Short term		174,730		28,847		14,433,121		40,746

Total capital loss carryforwards	$	605,381	$	95,391	$	15,694,571	$	115,017



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4. Income Taxes (continued)


	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Capital loss carryforwards not subject to expiration:
Long term	$	3,409,806	$	694,903	$	141,696	$	25,552
Short term		634,115		202,195		275,648		19,947

Total capital loss carryforwards	$	4,043,921	$	897,098	$	417,344	$	45,499


	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Capital loss carryforwards not subject to expiration:
Long term	$	69,418	$	45,269	$	531,381	$	159,490
Short term		27,546		68,066		—		12,639

Total capital loss carryforwards	$	96,964	$	113,335	$	531,381	$	172,129


	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Capital loss carryforwards not subject to expiration:
Long term	$	1,925,069	$	566,970	$	33,641	$	289,134
Short term		1,768,589		923,873		9,886		53,017

Total capital loss carryforwards	$	3,693,658	$	1,490,843	$	43,527	$	342,151


	Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
Capital loss carryforwards not subject to expiration:
Long term	$	158,259	$	42,547	$	63,669	$	1,672,354
Short term		56,094		15,417		25,690		906,331

Total capital loss carryforwards	$	214,353	$	57,964	$	89,359	$	2,578,685


	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Capital loss carryforwards not subject to expiration:
Long term	$	36,215	$	54,844	$	395,355
Short term		163,488		44,305		164,474

Total capital loss carryforwards	$	199,703	$	99,149	$	559,829

For tax purposes, the Funds may elect to defer any portion of late-year ordinary loss to the first day of the following fiscal year. At March 31, 2020, the deferred losses were as follows:



	Franklin FTSE Russia ETF			Franklin FTSE South Korea ETF
Late-year ordinary losses	$	(63,961	)	$	(636	)



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4. Income Taxes (continued)

The tax character of distributions paid during the years ended March 31, 2020 and 2019, were as follows:



	Franklin FTSE Asia ex Japan ETF				Franklin FTSE Australia ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	403,670	$	370,953	$	500,460	$	242,641


	Franklin FTSE Brazil ETF				Franklin FTSE Canada ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	1,076,875	$	923,263	$	139,563	$	95,664


	Franklin FTSE China ETF				Franklin FTSE Europe ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	787,837	$	584,365	$	2,821,950	$	3,141,008


	Franklin FTSE Europe Hedged ETF				Franklin FTSE France ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	294,228	$	1,270,015	$	86,176	$	68,766
Distributions paid from long term gain		—		2,192,130		—		—

Total	$	294,228	$	3,462,145	$	86,176	$	68,766


	Franklin FTSE Germany ETF				Franklin FTSE Hong Kong ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	114,909	$	59,669	$	569,121	$	273,434


	Franklin FTSE India ETF				Franklin FTSE Italy ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	83,995	$	47,624	$	414,228	$	91,568


	Franklin FTSE Japan ETF				Franklin FTSE Japan Hedged ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	5,496,937	$	3,317,982	$	—	$	16,486
Distributions paid from long term gain		—		—		—		2,246,889

Total	$	5,496,937	$	3,317,982	$	—	$	2,263,375


	Franklin FTSE Latin America ETF				Franklin FTSE Mexico ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	90,264	$	11,915	$	134,178	$	78,632



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4. Income Taxes (continued)


	Franklin FTSE Russia ETF				Franklin FTSE Saudi Arabia ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	1,112,109	$	307,541	$	82,840	$	—


	Franklin FTSE South Africa ETF				Franklin FTSE South Korea ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	269,501	$	5,950	$	322,884	$	340,269


	Franklin FTSE Switzerland ETF				Franklin FTSE Taiwan ETF

	2020		2019		2020		2019
Distributions paid from ordinary income	$	65,702	$	60,937	$	520,726	$	144,725


	Franklin FTSE United Kingdom ETF

	2020		2019
Distributions paid from ordinary income	$	1,337,064	$	324,863

At March 31, 2020, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:


	Franklin FTSE Asia ex Japan ETF			Franklin FTSE Australia ETF			Franklin FTSE Brazil ETF			Franklin FTSE Canada ETF
Cost of investments	$	18,260,839		$	11,858,766		$	197,487,074		$	6,374,601

Unrealized appreciation	$	640,351		$	154,956		$	128,055		$	105,657
Unrealized depreciation		(4,251,013	)		(4,202,333	)		(95,177,625	)		(1,616,559	)

Net unrealized appreciation (depreciation)	$	(3,610,662	)	$	(4,047,377	)	$	(95,049,570	)	$	(1,510,902	)

Distribution earnings – undistributed ordinary Income	$	31,087		$	183,194		$	1,731,642		$	41,919


	Franklin FTSE China ETF			Franklin FTSE Europe ETF			Franklin FTSE Europe Hedged ETF			Franklin FTSE France ETF
Cost of investments	$	51,625,135		$	114,148,285		$	5,222,440		$	11,459,054

Unrealized appreciation	$	2,917,404		$	2,221,623		$	183,025		$	15,063
Unrealized depreciation		(5,742,278	)		(25,646,163	)		(1,648,770	)		(2,789,969	)

Net unrealized appreciation (depreciation)	$	(2,824,874	)	$	(23,424,540	)	$	(1,465,745	)	$	(2,774,906	)

Distribution earnings – undistributed ordinary Income	$	6,789		$	549,397		$	—		$	17,702


	Franklin FTSE Germany ETF			Franklin FTSE Hong Kong ETF			Franklin FTSE India ETF			Franklin FTSE Italy ETF
Cost of investments	$	5,707,813		$	18,706,396		$	11,561,265		$	3,593,932

Unrealized appreciation	$	70,325		$	66,632		$	268,310		$	82,197
Unrealized depreciation		(1,598,345	)		(3,430,992	)		(3,065,728	)		(1,035,749	)

Net unrealized appreciation (depreciation)	$	(1,528,020	)	$	(3,364,360	)	$	(2,797,418	)	$	(953,552	)

Distribution earnings – undistributed ordinary Income	$	12,638		$	84,165		$	65,492		$	38,376



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4. Income Taxes (continued)


	Franklin FTSE Japan ETF			Franklin FTSE Japan Hedged ETF			Franklin FTSE Latin America ETF			Franklin FTSE Mexico ETF
Cost of investments	$	391,624,709		$	5,419,566		$	2,578,637		$	4,516,179

Unrealized appreciation	$	5,590,452		$	222,060		$	27,575		$	36,637
Unrealized depreciation		(85,458,522	)		(1,437,204	)		(1,093,844	)		(1,686,920	)

Net unrealized appreciation (depreciation)	$	(79,868,070	)	$	(1,215,144	)	$	(1,066,269	)	$	(1,650,283	)

Distribution earnings – undistributed ordinary Income	$	3,432,053		$	—		$	12,684		$	26,635


	Franklin FTSE Russia ETF			Franklin FTSE Saudi Arabia ETF			Franklin FTSE South Africa ETF			Franklin FTSE South Korea ETF
Cost of investments	$	15,924,279		$	2,440,483		$	2,371,442		$	18,245,203

Unrealized appreciation	$	327,739		$	37,902		$	94,891		$	89,362
Unrealized depreciation		(3,015,802	)		(463,360	)		(987,806	)		(6,985,140	)

Net unrealized appreciation (depreciation)	$	(2,688,063	)	$	(425,458	)	$	(892,915	)	$	(6,895,778	)

Distribution earnings – undistributed ordinary Income	$	—		$	15,978		$	21,784		$	—



	Franklin FTSE Switzerland ETF			Franklin FTSE Taiwan ETF			Franklin FTSE United Kingdom ETF
Cost of investments	$	38,239,695		$	14,252,130		$	118,926,085

Unrealized appreciation	$	117,074		$	1,110,481		$	214,473
Unrealized depreciation		(4,442,329	)		(1,501,304	)		(30,424,134	)

Net unrealized appreciation (depreciation)	$	(4,325,255	)	$	(390,823	)	$	(30,209,661	)

Distribution earnings – undistribution ordinary Income	$	382,447		$	12,565		$	873,349

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatment of foreign currency transactions, financial futures transactions, passive foreign investment company shares and wash sales.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2020, were as follows:



	Franklin FTSE Asia ex Japan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
Purchases	$	1,931,626	$	875,398	$	206,885,163	$	273,752
Sales	$	1,924,352	$	874,185	$	23,922,624	$	256,930

	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Purchases	$	18,295,349	$	4,172,501	$	832,619	$	143,764
Sales	$	13,207,267	$	3,882,303	$	684,886	$	131,597



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5. Investment Transactions (continued)


	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Purchases	$	254,278	$	7,990,527	$	9,334,493	$	1,061,134
Sales	$	250,042	$	1,072,529	$	4,303,761	$	1,041,278

	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Purchases	$	12,555,437	$	724,190	$	324,269	$	825,799
Sales	$	12,038,731	$	680,642	$	337,930	$	829,369

	Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
Purchases	$	2,441,759	$	838,959	$	529,431	$	3,190,838
Sales	$	2,511,953	$	831,211	$	724,152	$	4,803,149

	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Purchases	$	1,832,131	$	1,949,208	$	2,287,677
Sales	$	1,653,334	$	1,971,192	$	1,811,884

In-kind transactions associated with creation and redemptions for the year ended March 31, 2020, were as follows:



	Franklin FTSE Asia ex Japan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
Cost of Securities Received	$	—	$	6,373,954	$	—	$	2,641,653
Value of Securities Delivered^a	$	—	$	2,606,712	$	—	$	1,215,015

	Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
Cost of Securities Received	$	3,693,036	$	78,446,833	$	—	$	8,962,718
Value of Securities Delivered^a	$	—	$	46,582,428	$	157	$	—

	Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
Cost of Securities Received	$	1,127,347	$	328,027	$	—	$	1,115,735
Value of Securities Delivered^a	$	—	$	7,128,363	$	—	$	5,818,687

	Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
Cost of Securities Received	$	200,615,114	$	—	$	—	$	—
Value of Securities Delivered^a	$	128,994,422	$	9,007,028	$	—	$	—



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5. Investment Transactions (continued)


	Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
Cost of Securities Received	$	4,936,458	$	—	$	—	$	—
Value of Securities Delivered^a	$	—	$	—	$	—	$	—

	Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Cost of Securities Received	$	37,861,443	$	—	$	111,248,777
Value of Securities Delivered^a	$	2,091,525	$	—	$	20,255,088

^aRealized gains and losses from in-kind redemptions, as shown on the Statements of Operations, are not recognized by the Funds for tax purposes.

At March 31, 2020, in connection with securities lending transactions, certain or all Funds loaned investments and received cash collateral as follows:



	Franklin FTSE Asia ex Japan ETF		Franklin FTSE China ETF
Securities lending transactions^a:
Equity investments^b	$	5,040	$	29,400

^a The agreements can be terminated at any time.

^b The gross amount of recognized liability for such transactions is included in payable upon return of securities loaned in the Statements of Assets and Liabilities.

6. Concentration of Risk

The United States and other nations have imposed and could impose additional sanctions on certain issuers in Russia due to regional conflicts. These sanctions could result in the devaluation of Russia’s currency, a downgrade in Russian issuers’ credit ratings, or a decline in the value and liquidity of Russian stocks or other securities. Such sanctions could also adversely affect Russia’s economy. Certain or all Funds may be prohibited from investing in securities issued by companies subject to such sanctions. In addition, if the Fund holds the securities of an issuer that is subject to such sanctions, an immediate freeze of that issuer’s securities could result, impairing the ability of the Fund to buy, sell, receive or deliver those securities. There is also the risk that countermeasures could be taken by Russia’s government, which could involve the seizure of the Fund’s assets. These risks could affect the value of the Funds’ portfolio. While the Funds hold securities of certain issuers recently impacted by the sanctions, existing investments do not presently violate the applicable terms and conditions of the sanctions. The sanctions currently do not affect the Funds’ ability to sell these securities. At March 31, 2020, Franklin FTSE Russia ETF had 99.9% of its net assets invested in Russia. The remaining Funds in the Trust did not have significant investment in Russia.

7. Novel Coronavirus Pandemic



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8. Other Derivative Information

At March 31, 2020, the Funds’ investments in derivative contracts are reflected in the Statements of Assets and Liabilities as follows:


	Asset Derivatives				Liability Derivatives

	Statements of Assets and Liabilities Location	Fair Value			Statements of Assets and Liabilities Location	Fair Value
Franklin FTSE Brazil ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	3,490	^a


Totals		$	—			$	3,490

Franklin FTSE Europe ETF

Equity contracts	Variation margin on futures contracts	$	4,871	^a	Variation margin on futures contracts	$	—


Totals		$	4,871			$	—

Franklin FTSE Europe Hedged ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	105,667	^a	Unrealized depreciation on OTC forward exchange contracts	$	54,816	^a

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	5,566	^a


Totals		$	105,667			$	60,382

Franklin FTSE Hong Kong ETF

Equity contracts	Variation margin on futures contracts	$	577	^a	Variation margin on futures contracts	$	—


Totals		$	577			$	—

Franklin FTSE India ETF

Equity contracts	Variation margin on futures contracts	$	582	^a	Variation margin on futures contracts	$	—


Totals		$	582			$	—

Franklin FTSE Japan ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	296,304	^a


Totals		$	—			$	296,304

Franklin FTSE Japan Hedged ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	15,884		Unrealized depreciation on OTC forward exchange contracts	$	4,950

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	4,622	^a


Totals		$	15,884			$	9,572

Franklin FTSE Latin America ETF

Equity contracts	Variation margin on futures contracts	$	—		Variation margin on futures contracts	$	87	^a


Totals		$	—			$	87

Franklin FTSE South Korea ETF

Equity contracts	Variation margin on futures contracts	$	4,431	^a	Variation margin on futures contracts	$	—


Totals		$	4,431			$	—

Franklin FTSE Switzerland ETF

Equity contracts	Variation margin on futures contracts	$	10,806	^a	Variation margin on futures contracts	$	—


Totals		$	10,806			$	—



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8. Other Derivative Information (continued)


	Asset Derivatives				Liability Derivatives

	Statements of Assets and Liabilities Location	Fair Value			Statements of Assets and Liabilities Location	Fair Value
Franklin FTSE United Kingdom ETF

Equity contracts	Variation margin on futures contracts	$	13,059	^a	Variation margin on futures contracts	$	—


Totals		$	13,059			$	—

For the year ended March 31, 2020, the effect of derivative contracts in the Funds’ Statements of Operations was as

follows:



Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period			Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period
Franklin FTSE Asia ex Japan ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(2,901	)	Futures contracts	$	(519	)


Totals		$	(2,901	)		$	(519	)

Franklin FTSE Brazil ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(779,044	)	Futures contracts	$	(7,118	)


Totals		$	(779,044	)		$	(7,118	)

Franklin FTSE China ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(1,415	)	Futures contracts	$	—


Totals		$	(1,415	)		$	—

Franklin FTSE Europe ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(59,156	)	Futures contracts	$	30,567


Totals		$	(59,156	)		$	30,567

Franklin FTSE Europe Hedged ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	1,517		Futures contracts	$	2,646

	Foreign currency transactions	$	379,425		Translation of other assets and liabilities denominated in foreign currencies	$	(174,949	)


Totals		$	380,942			$	(172,303	)



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8. Other Derivative Information (continued)



Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period			Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period
Franklin FTSE France ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	965		Futures contracts	$	—


Totals		$	965			$	—

Franklin FTSE Hong Kong ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(12,094	)	Futures contracts	$	5,668


Totals		$	(12,094	)		$	5,668

Franklin FTSE India ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(23,933	)	Futures contracts	$	1,262


Totals		$	(23,933	)		$	1,262

Franklin FTSE Italy ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	799		Futures contracts	$	—


Totals		$	799			$	—

Franklin FTSE Japan ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	142,382		Futures contracts	$	(56,914	)


Totals		$	142,382			$	(56,914	)

Franklin FTSE Japan Hedged ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(6,469	)	Futures contracts	$	1,589

	Forward exchange contracts	$	(128,377	)	Translation of other assets and liabilities denominated in foreign currencies	$	(8,107	)


Totals		$	(134,846	)		$	(6,518	)

Franklin FTSE Latin America ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(50	)	Futures contracts	$	(1,060	)


Totals		$	(50	)		$	(1,060	)



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NOTES TO FINANCIAL STATEMENTS

8. Other Derivative Information (continued)



Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period			Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period
Franklin FTSE Mexico ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	127		Futures contracts	$	—


Totals		$	127			$	—

Franklin FTSE South Korea ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(6,694	)	Futures contracts	$	(16,486	)


Totals		$	(6,694	)		$	(16,486	)

Franklin FTSE Switzerland ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(1,942	)	Futures contracts	$	25,928


Totals		$	(1,942	)		$	25,928

Franklin FTSE Taiwan ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	13,729		Futures contracts	$	—


Totals		$	13,729			$	—

Franklin FTSE United Kingdom ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Equity contracts	Futures contracts	$	(222,075	)	Futures contracts	$	70,468


Totals		$	(222,075	)		$	70,468

For the year ended March 31, 2020, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts were as follows:



	Franklin FTSE Asia ex Japan ETF		Franklin FTSE Brazil ETF		Franklin FTSE China ETF		Franklin FTSE Europe ETF
Futures contracts	$	43,291	$	408,291	$	51,022	$	417,509
Forward exchange contracts	$	—	$	—	$	—	$	—

	Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF
Futures contracts	$	69,474	$	1,818	$	55,664	$	24,630
Forward exchange contracts	$	16,278,086	$	—	$	—	$	—



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NOTES TO FINANCIAL STATEMENTS

8. Other Derivative Information (continued)


	Franklin FTSE Italy ETF		Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF
Futures contracts	$	14,563	$	1,840,761	$	87,282	$	5,098
Forward exchange contracts	$	—	$	—	$	24,336,187	$	—

	Franklin FTSE South Korea ETF		Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
Futures contracts	$	105,049	$	13,668	$	42,552	$	315,200
Forward exchange contracts	$	—	$	—	$	—	$	—

At March 31, 2020, the Funds’ OTC derivative assets and liabilities are as follows:



	Gross and Net Amounts of Assets and Liabilities Presented in the Statements of Assets and Liabilities

	Assets^a		Liabilities^a
Franklin FTSE Europe Hedged ETF
Forward exchange contracts	$	105,667	$	54,816


Franklin FTSE Japan Hedged ETF
Forward exchange contracts	$	15,884	$	4,950

^aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities.

At March 31, 2020, the Funds’ OTC derivative assets, which may be offset against the Funds’ OTC derivative liabilities and collateral received from the counterparty, are as follows:



			Amounts Not Offset in the Statements of Assets and Liabilities

	Gross and Net Amounts of Assets Presented in the Statements of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Received^a		Cash Collateral Received^a		Net Amount (Not less than zero)
Franklin FTSE Europe Hedged ETF
Counterparty
BOFA	$	100,329	$	(116	)	$	—	$	—	$	100,213
HSBK		2,048		(54	)		—		—		1,994
MSCO		1,123		(154	)		—		—		969
UBSW		2,167		(14	)		—		—		2,153

Total	$	105,667	$	(338	)	$	—	$	—	$	105,329



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8. Other Derivative Information (continued)


			Amounts Not Offset in the Statements of Assets and Liabilities

	Gross and Net Amounts of Assets Presented in the Statements of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Received^a		Cash Collateral Received^a		Net Amount (Not less than zero)
Franklin FTSE Japan Hedged ETF
Counterparty
BOFA	$	8,080	$	—		$	—	$	—	$	8,080
HSBK		3,148		(88	)		—		—		3,060
MSCO		1,336		(42	)		—		—		1,294
UBSW		3,320		(27	)		—		—		3,293

Total	$	15,884	$	(157	)	$	—	$	—	$	15,727

At March 31, 2020, the Funds’ OTC derivative liabilities, which may be offset against the Funds’ OTC derivative assets and collateral pledged to the counterparty, are as follows:



			Amounts Not Offset in the Statements of Assets and Liabilities

	Gross and Net Amounts of Assets Presented in the Statements of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Received^a		Cash Collateral Received^a		Net Amount (Not less than zero)
Franklin FTSE Europe Hedged ETF
Counterparty
BOFA	$	116	$	(116	)	$	—	$	—	$	—
DBAB		54,478		—			—		—		54,478
HSBK		54		(54	)		—		—		—
MSCO		154		(154	)		—		—		—
UBSW		14		(14	)		—		—		—

Total	$	54,816	$	(338	)	$	—	$	—	$	54,478


			Amounts Not Offset in the Statements of Assets and Liabilities
Franklin FTSE Japan Hedged ETF
Counterparty
DBAB	$	4,793	$	—		$	—	$	—	$	4,793
HSBK		88		(88	)		—		—		—
MSCO		42		(42	)		—		—		—
UBSW		27		(27	)		—		—		—

Total	$	4,950	$	(157	)	$	—	$	—	$	4,793

See Note 1(b) regarding derivative financial instruments.



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

A summary of inputs used as of March 31, 2020, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3		Total

Franklin FTSE Asia ex Japan ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
China	$	6,413,212		282	$	—	$	6,413,494
India		1,318,176		—		578^c		1,318,754
Other Equity Investments		6,917,929		—		—		6,917,929
Short-Term Investments		5,040		—		—		5,040

Total Investments in Securities	$	14,654,357	$	282	$	578^c	$	14,655,217


Franklin FTSE Australia ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
Australia	$	7,614,983	$	13,155	$	—	$	7,628,138
Other Equity Investments		183,251		—		—		183,251

Total Investments in Securities	$	7,798,234	$	13,155	$	—	$	7,811,389


Franklin FTSE Brazil ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	102,437,504	$	—	$	—	$	102,437,504


Liabilities:
Other Financial Instruments:
Futures Contracts	$	9,433	$	—	$	—	$	9,433


Franklin FTSE Canada ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	4,863,699	$	—	$	—	$	4,863,699



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin FTSE China ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
China	$	44,359,091	$	2,716	$	—	$	44,361,807
Other Equity Investments		4,438,454		—		—		4,438,454

Total Investments in Securities	$	48,797,545	$	2,716	$	—	$	48,800,261


Franklin FTSE Europe ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
United Arab Emirates	$	—	$	—	$	1,604^c	$	1,604
Other Equity Investments		90,722,142		—		—		90,722,142

Total Investments in Securities	$	90,722,142	$	—	$	1,604^c	$	90,723,746

Other Financial Instruments:
Futures Contracts	$	36,523	$	—	$	—	$	36,523


Franklin FTSE Europe Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
United Arab Emirates	$	—	$	—	$	83^c	$	83
Other Equity Investments		3,756,613		—		—		3,756,613

Total Investments in Securities	$	3,756,613	$	—	$	83^c	$	3,756,696

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	105,667	$	—	$	105,667
Futures Contracts		3,553		—		—		3,553

Total Other Financial Instruments	$	3,553	$	105,667	$	—	$	109,220


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	54,816	$	—	$	54,816


Franklin FTSE France ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	8,684,148	$	—	$	—	$	8,684,148


Franklin FTSE Germany ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	4,179,793	$	—	$	—	$	4,179,793


Franklin FTSE Hong Kong ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	15,342,036	$	—	$	—	$	15,342,036

Other Financial Instruments:
Futures Contracts	$	5,668	$	—	$	—	$	5,668



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin FTSE India ETF

Assets:
Investments in Securities:^a
Equity Investments:^b
India	$	8,759,433	$	—	$	4,414^c	$	8,763,847

Other Financial Instruments:
Futures Contracts	$	1,682	$	—	$	—	$	1,682


Franklin FTSE Italy ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	2,640,380	$	—	$	—	$	2,640,380


Franklin FTSE Japan ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	311,631,698	$	—	$	—	$	311,631,698
Short-Term Investments		124,941		—		—		124,941

Total Investments in Securities	$	311,756,639	$	—	$	—	$	311,756,639


Liabilities:
Other Financial Instruments:
Futures Contracts	$	62,697	$	—	$	—	$	62,697


Franklin FTSE Japan Hedged ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	4,204,422	$	—	$	—	$	4,204,422

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	15,884	$	—	$	15,884


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	4,950	$	—	$	4,950
Futures Contracts		114		—		—		114

Total Other Financial Instruments	$	114	$	4,950	$	—	$	5,064


Franklin FTSE Latin America ETF
Assets:
Investments in Securities:^a
Equity Investments:^b	$	1,512,368	$	—	$	—	$	1,512,368


Liabilities:
Other Financial Instruments:
Futures Contracts	$	1,305	$	—	$	—	$	1,305


Franklin FTSE Mexico ETF
Assets:
Investments in Securities:^a
Equity Investments:^b	$	2,865,896	$	—	$	—	$	2,865,896


Franklin FTSE Russia ETF
Assets:
Investments in Securities:^a
Equity Investments:^b	$	13,236,216	$	—	$	—	$	13,236,216



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NOTES TO FINANCIAL STATEMENTS

9. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin FTSE Saudi Arabia ETF
Assets:
Investments in Securities:^a
Equity Investments:^b	$	2,015,025	$	—	$	—	$	2,015,025


Franklin FTSE South Africa ETF
Assets:
Investments in Securities:^a
Equity Investments:^b	$	1,478,527	$	—	$	—	$	1,478,527


Franklin FTSE South Korea ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	11,349,424	$	—	$	—	$	11,349,424


Liabilities:
Other Financial Instruments:
Futures Contracts	$	17,785	$	—	$	—	$	17,785


Franklin FTSE Switzerland ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	33,914,440	$	—	$	—	$	33,914,440

Other Financial Instruments:
Futures Contracts	$	18,917	$	—	$	—	$	18,917


Franklin FTSE Taiwan ETF

Assets:
Investments in Securities:^a
Equity Investments:^b	$	13,861,307	$	—	$	—	$	13,861,307


Franklin FTSE United Kingdom ETF

Assets:
Investments in Securities:^a
United Arab Emirates	$	—	$	—	$	5,128^c	$	5,128
Equity Investments:^b		88,711,297		—		—		88,711,297

Total Investments in Securities	$	88,711,297	$	—	$	5,128^c	$	88,716,425

Other Financial Instruments:
Futures Contracts	$	77,270	$	—	$	—	$	77,270

^aFor detailed categories, see the accompanying Statement of Investments.

^bIncludes common and convertible preferred stocks, warrants, as well as other equity investments.

^cIncludes securities determined to have no value at March 31, 2020



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NOTES TO FINANCIAL STATEMENTS

9. Subsequent Events

The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.

Abbreviations


Selected Portfolio
ADR		American Depositary Receipt
CDI		Clearing House Electronic Subregister System Depositary Interest
GDR		Global Depositary Receipt
IDR		International Depositary Receipt
NVDR		Non-Voting Depositary Receipt
REIT		Real Estate Investment Trust
SF		Single Family

Counterparty
BOFA		Bank of America Corp.
HSBK		HSBC Bank PLC
MSCO		Morgan Stanley
UBSW		UBS AG



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Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin FTSE Asia ex Japan ETF, Franklin FTSE Australia ETF, Franklin FTSE Brazil ETF, Franklin FTSE Canada ETF, Franklin FTSE China ETF, Franklin FTSE Europe ETF, Franklin FTSE Europe Hedged ETF, Franklin FTSE France ETF, Franklin FTSE Germany ETF, Franklin FTSE Hong Kong ETF, Franklin FTSE India ETF, Franklin FTSE Italy ETF, Franklin FTSE Japan ETF, Franklin FTSE Japan Hedged ETF, Franklin FTSE Latin America ETF, Franklin FTSE Mexico ETF, Franklin FTSE Russia ETF, Franklin FTSE Saudi Arabia ETF, Franklin FTSE South Africa ETF, Franklin FTSE South Korea ETF, Franklin FTSE Switzerland ETF, Franklin FTSE Taiwan ETF, and Franklin FTSE United Kingdom ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin FTSE Asia ex Japan ETF, Franklin FTSE Australia ETF, Franklin FTSE Brazil ETF, Franklin FTSE Canada ETF, Franklin FTSE China ETF, Franklin FTSE Europe ETF, Franklin FTSE Europe Hedged ETF, Franklin FTSE France ETF, Franklin FTSE Germany ETF, Franklin FTSE Hong Kong ETF, Franklin FTSE India ETF, Franklin FTSE Italy ETF, Franklin FTSE Japan ETF, Franklin FTSE Japan Hedged ETF, Franklin FTSE Latin America ETF, Franklin FTSE Mexico ETF, Franklin FTSE Russia ETF, Franklin FTSE Saudi Arabia ETF, Franklin FTSE South Africa ETF, Franklin FTSE South Korea ETF, Franklin FTSE Switzerland ETF, Franklin FTSE Taiwan ETF, and Franklin FTSE United Kingdom ETF (the “Funds”) as of March 31, 2020, the related statements of operations, and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2020, the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below in conformity with accounting principles generally accepted in the United States of America.



Franklin Templeton ETF Trust	Statements of Operations	Statement of changes in net assets	Financial highlights
Franklin FTSE Asia ex Japan ETF Franklin FTSE Australia ETF Franklin FTSE Brazil ETF Franklin FTSE Canada ETF Franklin FTSE China ETF Franklin FTSE Europe ETF Franklin FTSE Europe Hedged ETF Franklin FTSE France ETF Franklin FTSE Germany ETF Franklin FTSE Hong Kong ETF Franklin FTSE India ETF Franklin FTSE Italy ETF Franklin FTSE Japan ETF Franklin FTSE Japan Hedged ETF Franklin FTSE Mexico ETF Franklin FTSE Russia ETF Franklin FTSE South Korea ETF Franklin FTSE Switzerland ETF Franklin FTSE Taiwan ETF Franklin FTSE United Kingdom ETF	For the year ended March 31, 2020	For the years ended March 31, 2020 and March 31, 2019	For each of the periods indicated therein
Franklin FTSE Latin America ETF	For the year ended March 31, 2020	For the year ended March 31, 2020 and for the period October 9, 2018 (commencement of operations) through March 31, 2019
Franklin FTSE Saudi Arabia ETF Franklin FTSE South Africa ETF	For the year ended March 31, 2020	For the year ended March 31, 2020 and for the period October 10, 2018 (commencement of operations) through March 31, 2019



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Basis for Opinions

We conducted our auditsof 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 March 31, 2020 by correspondence with the custodian, transfer agent 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 opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 19, 2020

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.



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Tax information (unaudited)



Franklin FTSE Asia ex Japan ETF		Franklin FTSE Australia ETF		Franklin FTSE Brazil ETF		Franklin FTSE Canada ETF
	$ 219,340		$ 470,450		$—		$180,689


Franklin FTSE China ETF		Franklin FTSE Europe ETF		Franklin FTSE Europe Hedged ETF		Franklin FTSE France ETF
	$ 699,257		$2,922,951		$ 165,018		$122,369


Franklin FTSE Germany ETF		Franklin FTSE Hong Kong ETF		Franklin FTSE India ETF		Franklin FTSE Italy ETF
	$ 125,976		$ 5,268		$ 164,197		$493,587


Franklin FTSE Japan ETF		Franklin FTSE Japan Hedged ETF		Franklin FTSE Latin America ETF		Franklin FTSE Mexico ETF
	$6,408,011		$ 117,576		$ 21,040		$143,715


Franklin FTSE Russia ETF		Franklin FTSE Saudi Arabia ETF		Franklin FTSE South Africa ETF		Franklin FTSE South Korea ETF
	$1,117,191		$—		$ 80,885		$313,994


Franklin FTSE Switzerland ETF		Franklin FTSE Taiwan ETF		Franklin FTSE United Kingdom ETF
	$ 148,021		$—		$1,346,584

At March 31, 2020, more than 50% of the Funds’ total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Funds on these investments. The following Funds elect to treat foreign taxes paid as allowed under Section 853 of the Code. This election will allow shareholders of record as of the June 2020 distribution, to treat their proportionate share of foreign taxes paid by the Funds as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they received the Fund distribution.



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Franklin FTSE Asia ex Japan ETF

Franklin FTSE Australia ETF

Franklin FTSE Brazil ETF

Franklin FTSE Canada ETF

Franklin FTSE China ETF

Franklin FTSE Europe ETF

Franklin FTSE Europe Hedged ETF

Franklin FTSE France ETF

Franklin FTSE Germany ETF

Franklin FTSE Hong Kong ETF

Franklin FTSE Italy ETF

Franklin FTSE India ETF

Franklin FTSE Japan ETF

Franklin FTSE Japan Hedged ETF

Franklin FTSE Latin America ETF

Franklin FTSE Mexico ETF

Franklin FTSE Russia ETF

Franklin FTSE Saudi Arabia ETF

Franklin FTSE South Africa ETF

Franklin FTSE South Korea ETF

Franklin FTSE Switzerland ETF

Franklin FTSE Taiwan ETF

Franklin FTSE United Kingdom ETF



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Board Members and Officers

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee and Trustee	Since 2016	44	Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and FlipKart Limited (2019-present) (eCommerce company); formerly, CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since January 2020	44	Fluor Corporation (construction and engineering) (2014-present), IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present) and Focus Financial Partner, LLC (financial services) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	44	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); and formerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).

Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	49	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, President and Director, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; and formerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).



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Interested Board Members and Officers (continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Interim Chief Compliance Officer	Since January 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 41 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	Vice President – AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer – Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; and formerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).



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FRANKLIN TEMPLETON ETF TRUST



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since May 2019	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of two of the investment companies in Franklin Templeton.

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 41 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.

The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request.

Shareholders may call (800) DIAL BEN/342-5236 to request the SAI.



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FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Proxy Voting Policies and Procedures

Quarterly Statement of Investments

Premium/Discount Information



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To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2020

LOGO


Franklin Liberty High Yield Corporate ETF		Franklin Liberty Senior Loan ETF
Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Systematic Style Premia ETF

Franklin Templeton



Contents

Annual Report

Economic and Market Overview			2
Franklin Liberty High Yield Corporate ETF			3
Franklin Liberty International Aggregate Bond ETF			10
Franklin Liberty Senior Loan ETF			16
Franklin Liberty Systematic Style Premia ETF			23
Financial Highlights and Statements of Investments			29
Financial Statements			61
Notes to Financial Statements			65
Report of Independent Registered Public Accounting Firm			80
Tax Information			81
Board Members and Officers			82
Shareholder Information			85

Visit franklintempleton.com/investor/investments-and-solutions/investment-options/etfs/ for fund updates and documents.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



franklintempleton.com	Not part of the annual report	1

Annual Report

Economic and Market Overview

After reducing the federal funds target rate three times in 2019 to a range of 1.50%-1.75%, the Fed enacted two emergency rate cuts in March 2020 in response to the COVID-19 pandemic, further lowering the federal funds target rate to a range of 0.00%-0.25%. In addition, the Fed announced a plan to purchase government, government-backed and corporate bonds to help keep markets functioning, significantly expanding its balance sheet.

indebtedness. For the 12-month period, investment-grade corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate Bond Index, posted positive returns, while high-yield corporate bonds, as represented by the Bloomberg Barclays U.S. Corporate High Yield Bond Index, posted negative returns due to investor concerns about a potential increase in credit defaults.

The review period began with yields falling in many government bond markets, amid heightened concerns among investors about global economic growth and trade tensions. Many central banks eased monetary policy, with the Fed cutting interest rates in July and September, and the European Central Bank (ECB) responding with a package of easing measures in September, including a rate cut and restarting its bond purchases. Global bond yields then rose steadily over the last quarter of 2019. The Fed lowered interest rates again in October, in light of concerns about U.S.-China trade relations, low inflation and a global downturn. In Europe, benchmark German Bund and French government bond yields both rose over the fourth quarter with the latter moving into positive territory for the first time in several months.

The first quarter of 2020 was dominated by growing concerns about the COVID-19 pandemic and the potential magnitude of its economic and social impact. The Fed lowered interest rates to zero by mid-March and then pledged towards the end of the quarter to purchase government bonds in unlimited amounts, together with a historic decision to buy corporate debt. In this environment, the U.S. Treasury market was extremely volatile, with yields falling to historic lows early in March, then moving sharply higher as investors sought to raise cash, before ending significantly lower for the quarter overall. Despite initial inaction by the ECB, it launched an additional €750 billion of quantitative easing in March, and later suspended the parameters of the Stability and Growth Pact, in order to support eurozone economies. Against this backdrop, yields on benchmark German bunds fell over the first quarter, despite moving slightly higher in March.

1. Source: U.S. Bureau of Labor Statistics



2	Annual Report	franklintempleton.com

Franklin Liberty High Yield Corporate ETF

This annual report for Franklin Liberty High Yield Corporate ETF covers the period ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks a high level of current income with a secondary goal of seeking capital appreciation to the extent it is possible and consistent with the Fund’s principal goal. The Fund invests at least 80% of its net assets in high yield corporate debt securities and investments that provide exposure to high yield corporate debt securities, including fixed or floating-rate corporate loans and corporate debt securities.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -6.06% based on market price and -5.12% based on net asset value (NAV). In comparison, the ICE BofAML U.S. High Yield Constrained Index posted a -7.46% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 6.

Investment Strategy

The Fund may invest up to 100% of its total assets in high yield debt securities. The Fund may buy both rated and unrated debt securities, including securities rated below B by Moody’s or Standard & Poor’s^® (or deemed comparable by the Fund’s investment manager). The Fund may invest in fixed or floating rate corporate loans and corporate debt securities. The Fund may also invest in defaulted debt securities. The Fund may invest in debt securities of any maturity or duration.

The Fund may invest in debt securities of U.S. and foreign issuers, including those in developing or emerging markets. The Fund may enter into certain derivative transactions, principally currency and cross currency forwards; and swap


Portfolio Composition

Based on Total Net Assets as of 3/31/20

LOGO

agreements, including interest rate and credit default swaps (including credit default index swaps). The use of these derivative transactions may allow the Fund to obtain net long or short exposures to select currencies, interest rates, countries, durations or credit risks.

We are research driven, fundamental investors who rely on our team of analysts to provide in-depth industry expertise and use qualitative and quantitative analysis to evaluate companies. As bottom-up investors, we focus primarily on individual securities but consider sectors when choosing investments. In selecting securities, we do not rely principally on the ratings assigned by rating agencies, but perform our own independent investment analysis to evaluate the creditworthiness of the issuer. We consider a variety of factors, including the issuer’s experience and managerial strength, its sensitivity to economic conditions, and its current and prospective financial condition.

What is a currency forward contract?

A currency forward contract, or a currency forward, is an agreement between the Fund and a counterparty to buy or sell a foreign currency in exchange for another currency at a specific exchange rate on a future date.

What is a credit default swap?

A credit default swap, or CDS, is an agreement between two parties whereby the buyer receives credit protection from the seller. The buyer makes periodic payments over the term of the agreement in return for a payment by the seller in the event of a default or other credit event.

1. Source: Morningstar.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 30.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF


Top 10 Sector/Industries

3/31/20

	% of Total Net Assets
Media & Entertainment		17.7%
Materials		14.8%
Health Care Equipment & Services		8.9%
Energy		8.1%
Capital Goods		7.9%
Utilities		6.9%
Pharmaceuticals, Biotechnology & Life Sciences		5.4%
Food, Beverage & Tobacco		5.4%
Telecommunication Services		5.2%
Commercial & Professional Services		4.8%

Manager’s Discussion

Despite posting positive results for much of the period under review, high-yield corporate bonds came under severe pressure in late February and throughout March, and the benchmark ICE BofAML U.S. High Yield Constrained Index returned -7.46%.

Favorable returns gave way to a notable increase in volatility in February as COVID-19 began to spread more rapidly across the globe. As governments took increasingly aggressive actions to try to contain the virus, the short-term outlook for the global economy significantly deteriorated. Ultimately, markets spent most of February and all of March trying to “price in” an event for which there is no readily known precedent. Compounding the situation was the plunge in oil prices in the wake of the collapse in talks between members of the Organization of the Petroleum Exporting Countries and allies including Russia and Mexico, and the subsequent price wars between Russia and Saudi Arabia. This situation weighed particularly heavily on the U.S. high yield corporate bond market, where energy is the largest single sector exposure for the Fund’s benchmark index. The simultaneous, negative shocks to oil demand and supply were key drivers in the high-yield market selloff to end the period, with the benchmark index returning -1.55% and -11.77% in February and March, respectively.

Based on benchmark index data, high-yield spreads ended the period at 877 basis points (bps), representing a widening 472 bps for the period overall. Although most segments of the high yield market posted negative absolute returns for the period, some areas weathered the volatility better than others. Based on benchmark index data, BB rated bonds led the way with a return of -3.60%, which compared to returns of -7.24% and -20.53% for the B and CCC rated segments,


Top 10 Fund Holdings

3/31/20

Company *Sector/Industry*	% of Total Net Assets
CCO Holdings LLC/CCO Holdings Capital Corp., senior bond, 144A, senior bond, 144A, 5.375%, 6/01/2029 Media & Entertainment		2.5%
CSC Holdings LLC, senior bond, 144A, senior note, 144A, 7.50%, 4/01/2028 Media & Entertainment		2.4%
Netflix Inc., senior bond, senior bond, 5.875%, 2/15/2025 Retailing		2.4%
B&G Foods Inc., senior note, 5.25%, 4/01/2025 Food, Beverage & Tobacco		2.3%
Clearway Energy Operating LLC, senior bond, 5.00%, 9/15/2026 Utilities		2.3%
Owens-Brockway Glass Container Inc., senior note, 144A, 5.875%, 8/15/2023 Materials		2.3%
Beacon Roofing Supply Inc., senior note, 144A, 4.875%, 11/01/2025 Capital Goods		2.1%
Centene Corp., senior note, 144A, 4.25%, 12/15/2027 Health Care Equipment & Services		2.1%
Gray Escrow Inc., senior note, 144A, 7.00%, 5/15/2027 Media & Entertainment		2.1%
JBS USA LUX SA/JBS USA Food Co./JBS USA Finance Inc., senior bond, 144A, 5.50%, 1/15/2030 Food, Beverage & Tobacco		2.1%

respectively. From an industry standpoint, energy stood out as a key underperformer, but other sectors more likely to be impacted by a prolonged economic downturn also underperformed, including gaming and leisure. Meanwhile, some sectors managed to provide some form of downside protection over the period. For example, consumer non-cyclical industries such as food and beverage and supermarkets outperformed the broader market. The health care and packaging industries also outperformed relative to the broader market.

The Fund outperformed its benchmark as well as its Morningstar high-yield category average.

Several positive factors contributed to the Fund’s relative outperformance for the period, led by the effects from overall credit quality and industry positioning. As it relates to credit quality, the Fund benefited especially from its bias towards higher-quality segments of the market, which included some exposure to rising stars, which had been upgraded to BBB.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

Even within the CCC ratings category, the Fund benefited from being mostly in the higher end of the category with CCC+ credits, which held up better than the lower end of the category.

The quality theme was also seen in industry sectors, where the Fund benefited significantly from its underweighted position to the energy sector. The Fund’s overweighted positions in the health care and packaging sectors also contributed to relative results, as these groups outperformed other sectors amid the recent increase in market volatility.

In contrast, the Fund’s security selection detracted slightly from relative results overall, led by effects seen in the energy, retail and entertainment sectors. However, the Fund did benefit from positive selection effects across several sectors, most notably from the finance, media and wireless industries, which helped to offset negative selection effects to some extent.

The Fund held mostly cash bonds during the period under review and also held a small position in high yield CDX that was put in place to help manage exposure following a large inflow.

Thank you for your participation in Franklin Liberty High Yield Corporate ETF. We look forward to serving your future investment needs.

LOGO

Glenn I. Voyles, CFA^®


		Patricia O’Connor, CFA

		Portfolio Management Team

CFA^® is a trademark owned by CFA Institute.



franklintempleton.com	Annual Report	5

FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

Performance Summary as of March 31, 2020

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (6/1/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

1-Year

-5.12%

-6.06%

-5.12%

-6.06%

Since Inception (5/30/18)

+1.58%

+0.89%

+0.86%

+0.49%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
6.87%		7.25%		6.82%

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

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

5/30/18–3/31/20

LOGO

See page 8 for Performance Summary footnotes.



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment
Income

$1.560387

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.40%		1.54%

All investments involve risks, including possible loss of principal. Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Distributions to shareholders may decline when prevailing interest rates fall or when the Fund experiences defaults on debt securities it holds. The high-yield corporate debt securities and instruments in which the Fund invests tend to be rated below investment grade. Investing in higher-yielding, lower-rated corporate debt securities and instruments involves greater risk of default, which could result in loss of principal—a risk that may be heightened in a slowing economy. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. The markets for particular securities or types of securities are or may become relatively illiquid. Reduced liquidity will have an adverse impact on the security’s value and on the Fund’s ability to sell such securities when necessary to meet the Fund’s liquidity needs or in response to a specific market event. Investing in derivative securities and the use of foreign currency techniques involve special risks as such may not achieve the anticipated benefits and/or may result in losses to the Fund. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/20.

7. Source: Morningstar. The ICE BofAML U.S. High Yield Constrained Index tracks the performance of U.S. dollar denominated below investment-grade corporate debt publicly issued in the U.S. domestic market.

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



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FRANKLIN LIBERTY HIGH YIELD CORPORATE ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	908.50	$	1.91	$	1,023.00	$	2.02		0.40	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	9

Franklin Liberty International Aggregate Bond ETF

This annual report for Franklin Liberty International Aggregate Bond ETF covers the period ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks total investment return, consisting of a combination of interest income and capital appreciation. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and investments that provide exposure to bonds.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of +4.25% based on market price and +4.05% based on net asset value (NAV). In comparison, the Fund’s new benchmark, the Bloomberg Barclays Global Aggregate ex-USD Index (100% Hedged to USD), posted a +5.00% total return.¹ The Fund’s old benchmark, the Bloomberg Barclays Global Aggregate ex-USD Index posted a +0.74% total return for the same period.¹ We believe the new benchmark’s composition more accurately reflects the Fund’s holdings. You can find more of the Fund’s performance data in the Performance Summary beginning on page 12.

Investment Strategy

The Fund invests predominantly in fixed and floating-rate bonds issued by governments, government agencies and governmental-related or corporate issuers located outside the U.S. The Fund may also invest in securities or structured products that are linked to or derive their value from another security, asset or currency of any nation. In addition, the Fund’s assets are invested in issuers located in at least three countries (excluding the U.S.).

The Fund may invest in debt securities of any maturity or duration, and the average maturity or duration of debt securities in the Fund’s portfolio will fluctuate depending on the


Geographic Composition

Based on Total Net Assets as of 3/31/20

LOGO

investment manager’s outlook on changing market, economic and political conditions.

The Fund is a “non-diversified” fund, which means it generally invests a greater portion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.

What is duration?

Duration is a measure of a bond’s price sensitivity to interest rate changes. In general, a portfolio of securities with a lower duration can be expected to be less sensitive to interest rate changes than a portfolio with a higher duration.

When choosing investments for the Fund, we allocate the Fund’s assets based upon our assessment of changing market, political and economic conditions. We consider various factors, including evaluation of interest rates, currency exchange rate changes and credit risks. We may consider selling a security when we believe the security has become fully valued due to either its price appreciation or changes in the issuer’s fundamentals, or when we believe another security is a more attractive investment opportunity.

1. Source: Morningstar

See www.franklintempletondatasources.com for additional data provider information

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 36.



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

Portfolio Composition

Based on Total Net Assets as of 3/31/20

We seek to hedge substantially all of the Fund’s foreign currency exposure using currency related derivatives, including currency and cross currency forwards and currency futures contracts. We expect to maintain extensive positions in currency related derivative instruments as a hedging technique or to implement a currency investment strategy, which exposes a large amount of the Fund’s assets to obligations under these instruments. The results of such transactions may represent, from time to time, a large component of the Fund’s investment returns. The use of these derivative transactions may allow the fund to obtain net long or net negative (short) exposure to selected currencies. The Fund may also enter into various other transactions involving derivatives, including interest rate/bond futures contracts and interest rate swap agreements. These derivative instruments may be used for hedging purposes. Derivatives that provide exposure to bonds may be used to satisfy the Fund’s 80% policy.

Manager’s Discussion

The Fund’s sector allocation and security selection contributed to relative returns, helped by positioning in Spanish and Italian government bonds. An underweight exposure to corporate investment-grade industrial issues and security selection among corporate investment-grade financial bonds also added relative value.

The Fund’s currency positioning also contributed to relative returns, largely due to positioning in the euro and the South Korean won. However, exposure to the Australian dollar and Polish zloty weighed on relative results.

In addition, the Fund’s duration and yield-curve positioning helped relative results, largely due to duration stances on eurozone and Polish bonds. An underweighted duration position in U.K. issues taken early in the review period contributed to relative performance, although a similar stance in Canadian debt detracted.

In contrast, the Fund’s local market allocation detracted from relative returns, largely as a result of exposure to the Chinese market.

Thank you for your participation in Franklin Liberty International Aggregate Bond ETF. We look forward to serving your future investment needs.

LOGO

John Beck

Co-Lead Portfolio Manager

LOGO

Sonal Desai, Ph.D.

Co-Lead Portfolio Manager


		David Zahn, CFA
		Portfolio Manager


		Patrick Klein, Ph.D.
		Portfolio Manager



franklintempleton.com	Annual Report	11

FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

Performance Summary as of March 31, 2020

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (6/1/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

1-Year

+4.05%

+4.25%

+4.05%

+4.25%

Since Inception (5/30/18)

+4.05%

+4.38%

+2.19%

+2.36%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
2.21%		0.50%		-2.06%

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

See page 14 for Performance Summary footnotes.



12	Annual Report	franklintempleton.com

FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

5/30/18–3/31/20

LOGO

See page 14 for Performance Summary footnotes.



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment

Income

$0.089110

Total Annual Operating Expenses⁸



With Fee Waiver	Without Fee Waiver
0.25%		2.32%

All investments involve risks, including possible loss of principal. Bond prices generally move in the opposite direction of interest rates. As the prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. The Fund’s investments in foreign securities involve certain risks including currency fluctuations, and economic and political uncertainties. Investments in developing markets involve heightened risks related to the same factors, in addition to those associated with their relatively small size and lesser liquidity. Investing in derivative securities and the use of foreign currency techniques involve special risks as such may not achieve the anticipated benefits and/or may result in losses to the Fund. The Fund may not achieve the anticipated benefits, and may realize losses when a counterparty fails to perform as promised. Sovereign debt securities are subject to various risks in addition to those relating to debt securities and foreign securities generally, including, but not limited to, the risk that a governmental entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due because of cash flow problems, insufficient foreign reserves, the relative size of the debt service burden to the economy as a whole, the government’s policy toward principal international lenders such as the International Monetary Fund, or the political considerations to which the government may be subject. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/20.

7. Source: Morningstar. The Bloomberg Barclays Global Aggregate ex-USD Index and the Bloomberg Barclays Global Aggregate ex-USD Index (100% Hedged to USD) are the same index with the latter being 100% hedged to the U.S. dollar. This index measures global investment-grade debt from 24 local currency markets. This multicurrency benchmark includes treasury, government-related, corporate and securitized fixed-rate bonds from both developed and emerging markets issuers.

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



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FRANKLIN LIBERTY INTERNATIONAL AGGREGATE BOND ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	990.80	$	1.24	$	1,023.75	$	1.26		0.25	%

2. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	15

Franklin Liberty Senior Loan ETF

This annual report for Franklin Liberty Senior Loan ETF covers the period ended March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks to provide a high level of current income with a secondary goal of preservation of capital. The Fund invests at least 80% of its net assets in senior loans and investments that provide exposure to senior loans.

Performance Overview

During the 12-month period, the Fund posted cumulative total returns of -5.55% based on market price and -3.92% based on net asset value (NAV). In comparison, the Fund’s primary benchmark, the S&P/LSTA U.S. Leveraged Loan 100 Index, posted a -5.15% total return for the same period.¹ The Fund’s additional benchmark, the Custom Franklin Senior Loan Index, posted a -3.78% total return for the same period.² You can find more of the Fund’s performance data in the Performance Summary beginning on page 19.

Investment Strategy

The Fund invests predominantly in income-producing senior floating interest rate corporate loans made to or issued by U.S. companies, non-U.S. entities and U.S. subsidiaries of non-U.S. entities. Floating interest rates vary with and are periodically adjusted to a generally recognized base interest rate such as the London Interbank Offered Rate (LIBOR) or the Prime Rate. The Fund may invest in companies whose financial condition is troubled or uncertain and that may be involved in bankruptcy proceedings, reorganizations or financial restructurings.

Portfolio Composition

Based on Total Net Assets as of 3/31/20

Senior loans generally have credit ratings below investment grade and may be subject to restrictions on resale. Under normal market conditions, the Fund invests at least 75% of its net assets in senior loans that are rated B- or higher at the time of purchase by a nationally recognized statistical rating organization (NRSRO) or, if unrated, are determined to be of comparable quality by the Fund’s investment manager. Under normal market conditions, the Fund may invest up to 25% of its net assets in senior loans that are rated below B- by an NRSRO or, if unrated, are determined to be of comparable quality by the investment manager.

Manager’s Discussion

Favorable investor sentiment for much of 2019 and demand from new collateralized-loan-obligation securities led to solid returns for the asset class, despite continued outflows from loan retail securities. As the period progressed, many investors expected future rate cuts to be on hold, which led to a significant deceleration in outflows from retail loan securities and investors turned to discounted, lower-rated names in order to put cash to work, particularly towards the end of 2019 and beginning of 2020. However, as fears of the impact of the COVID-19 pandemic on the global economy surfaced, the loan market entered a risk-off mode in March, which recorded some of the worst daily declines since the global financial crisis. The combination of aggressive U.S. Fed interest rate cuts and what we considered an increasing possibility of a global recession resulted in heavy outflows from loan retail securities. While the market partially retraced

1. Source: Morningstar.

2. Source: FactSet. The Custom Franklin Senior Loan Index comprises the Subset Index of Top 50 Obligors in Credit Suisse Leveraged Loan Index, which includes only the top 50 obligors of the Credit Suisse Leveraged Loan Index. Credit Suisse is not responsible for or involved in the calculation or management of the Subset Index of Top 50 Obligors in Credit Suisse Leveraged Loan Index.

The indexes are unmanaged and includes reinvestment of any income or distributions. It does not reflect any fees, expenses or sales charges. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 41.



16	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SENIOR LOAN ETF


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Media		12.0%
Software		8.9%
Hotels Restaurants & Leisure		6.6%
Health Care Providers & Services		5.0%
Pharmaceuticals		4.9%
Specialty Retail		4.9%
Containers & Packaging		4.4%
Communications Equipment		4.1%
Commercial Services & Supplies		3.9%
Diversified Financial Services		3.9%

the worst declines by the end of the period, led by a rebound in higher rated loans, the technical environment remained weak and aggressive credit rating downgrades negatively impacted lower-rated loans.

During the period, the Fund outperformed its primary benchmark, the S&P/LSTA U.S. Leveraged Loan 100 Index, on a NAV basis, but underperformed its additional benchmark, the Custom Franklin Senior Loan Index. The Fund continued to invest in loans from the largest obligors in the loan market, which experienced more severe principal declines during the peak of selling activity as investors looked to sell the largest, most liquid loans to meet heavy outflows. These loans, however, rebounded strongly at the end of the period and higher rated loans recorded the highest returns. Some of the loans that outperformed at the end of the period were more heavily weighted in the custom benchmark, which led to higher returns compared to our primary benchmark, as well as the portfolio. However, compared to the primary benchmark and the broader market, the portfolio’s overweighted position in higher rated loans led to outperformance during the one-year period. Upper-tier loans in the primary benchmark returned -1.46%, middle-tier loans returned -4.40%, and lower-tier loans returned -6.68%. As of period-end, the Fund had approximately 61% of its loan portfolio in the upper tier and 39% in the middle tier, compared to the primary benchmark, which had 38% in the upper tier and 61% in the middle tier.

Among individual issuers, major contributors to performance versus the benchmark were higher rated loans in industries that investors perceived to be more insulated from the impact of COVID-19. CSC Holdings (a broadband services provider), Davita (a provider of kidney dialysis services) and Asurion (a provider of technology protection services) all reported solid results during the period and avoided the worst price declines in a period of severe dislocation. However,


Top 10 Holdings

3/31/20

Company *Sector/Industry*	% of Total Net Assets
DaVita Inc., Tranche B-1 Term Loan, 3.353%, 2.739%, 8/12/2026 Health Care Equipment & Services		2.8%
CommScope Inc., Initial Term Loans, 8.853%, 4.239%, 4/04/2026 Technology Hardware & Equipment		2.8%
Asurion LLC, Replacement B-6 Term Loans, 4.603%, 3.989%, 11/03/2023 Commercial & Professional Services		2.7%
Clarios Global LP (Power Solutions), Initial Dollar Term Loan, 5.103%, 4.441%, 4/30/2026 Auto Components		2.7%
Nexstar Broadcasting Inc., Term B-4 Loan, 4.331%, 4.331%, 9/19/2026 Media		2.7%
CSC Holdings LLC, March 2017 Incremental Term Loans, 2.861%, 2.862%, 7/17/2025 Media		2.6%
Genesee & Wyoming Inc., Initial Term Loan, 3.960%, 3.45%, 12/30/2026 Transportation		2.5%
Go Daddy Operating Co. LLC, Tranche B-2 Term Loan, 3.353%, 2.739%, 2/15/2024 Software		2.5%
1011778 B.C. ULC, Term B-4 Loan, TBD, 2.739%, 11/19/2026 Consumer Services		2.4%
Caesars Resort Collection LLC, Term B Loans, 4.353%, 12/22/24 Hotels Restaurants & Leisure		2.4%

major detractors from performance were in industries that investors believed to be more impacted by COVID-19 shutdowns and travel restrictions. Caesars Resort Collection (a gaming company) declined amid closures of the company’s casinos and American Airlines (a global airline operator) detracted from performance due to a steep fall in travel. Both issuers drew from available credit facilities to support liquidity.

Thank you for your participation in Franklin Liberty Senior loan ETF. We look forward to serving your future investment needs.



franklintempleton.com	Annual Report	17

FRANKLIN LIBERTY SENIOR LOAN ETF

LOGO

Reema Agarwal, CFA

Co-Lead Portfolio Manager

LOGO

Justin Ma, CFA

Co-Lead Portfolio Manager


		Margaret Chiu, CFA, FRM

		Portfolio Management Team



18	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SENIOR LOAN ETF

Performance Summary as of March 31, 2020

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (6/1/18), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹



	Cumulative Total Return²				Average Annual Total Return²
	Based on NAV³		Based on market price⁴		Based on NAV³		Based on market price⁴
1-Year		-3.92%		-5.55%		-3.92%		-5.55%
Since Inception (5/30/18)		-1.58%		-3.10%		-0.86%		-1.70%



	30-Day Standardized Yield⁶
Distribution Rate⁵	(with fee waiver)		(without fee waiver)
4.02%		5.05%		4.47%

See page 21 for Performance Summary footnotes.



franklintempleton.com	Annual Report	19

FRANKLIN LIBERTY SENIOR LOAN ETF

PERFORMANCE SUMMARY

Total Return Index Comparison for a Hypothetical $10,000 Investment¹

Total return is calculated at net asset value and represents the change in value of an investment over the periods shown. It includes any Fund fees and expenses, and reinvested distributions. The unmanaged index includes reinvestment of any income or distributions. It differs from the Fund in composition and does not pay management fees or expenses. One cannot invest directly in an index.

5/30/18–3/31/20

LOGO

See page 21 for Performance Summary footnotes.



20	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SENIOR LOAN ETF

PERFORMANCE SUMMARY

Distributions (4/1/19–3/31/20)

Net Investment

Income

$1.086808

Total Annual Operating Expenses⁹



With Fee Waiver	Without Fee Waiver
0.45%		1.00%

All investments involve risks, including possible loss of principal. Investors should be aware that the Fund’s share price and yield will fluctuate with market conditions. The senior loans and debt securities in which the Fund invests tend to be rated below investment grade. Investing in higher-yielding, lower-rated, senior loans and debt securities involves greater risk of default, which could result in loss of principal—a risk that may be heightened in a slowing economy. Interest earned on senior loans varies with changes in prevailing interest rates. Therefore, while senior loans offer higher interest income when interest rates rise, they will also generate less income when interest rates decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. The markets for particular securities or types of securities are or may become relatively illiquid. Reduced liquidity will have an adverse impact on the security’s value and on the Fund’s ability to sell such securities when necessary to meet the Fund’s liquidity needs or in response to a specific market event. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. Distribution rate is based on an annualization of the March dividend and the NAV per share on 3/31/20.

7. Source: Morningstar. The S&P/LSTA U.S. Leveraged Loan 100 Index reflects the performance of the largest facilities in the leveraged loan market. This rules-based index consists of the 100 largest loan facilities in the benchmark S&P/LSTA Leveraged Loan Index.

8. Source: FactSet. The Custom Franklin Senior Loan Index comprises the Subset Index of Top 50 Obligors in Credit Suisse Leveraged Loan Index includes only the top 50 obligors of the Credit Suisse Leveraged Loan Index. Credit Suisse is not responsible for or involved in the calculation or management of the Subset Index of Top 50 Obligors in Credit Suisse Leveraged Loan Index.

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



franklintempleton.com	Annual Report	21

FRANKLIN LIBERTY SENIOR LOAN ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 10/1/19		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20^1,2		Net Annualized Expense Ratio²
	$1,000.00	$	936.00	$	2.18	$	1,022.75	$	2.28		0.45	%

2. Reflects expenses after fee waivers and expense reimbursements.



22	Annual Report	franklintempleton.com

Franklin Liberty Systematic Style Premia ETF

This annual report for Franklin Liberty Systematic Style Premia ETF covers the period since the Fund’s inception on December 18, 2019, through March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks to provide absolute return by allocating its assets across two underlying alternative investment strategies, which represent top-down and bottom-up approaches to capturing factor-based risk premia. The strategies consist of a top-down risk premia strategy and a bottom-up long/short equity strategy.

What is a futures contract?

A futures contract is an agreement between the Fund and a counterparty made through a U.S. or foreign futures exchange to buy or sell an asset at a specific price on a future date.

What is a total return swap?

A total return swap is a swap agreement in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains.

What is a currency forward contract?

What is a risk premium swap?

A risk premium is the return in excess of the risk-free rate of return an investment is expected to yield. An asset’s risk premium is a form of compensation for investors who tolerate the extra risk, compared to that of a risk-free asset, in a given investment.

Performance Overview

For the period since the Fund’s inception on December 18, 2019, through March 31, 2020, the Fund posted cumulative total returns of -6.98% based on market price and -7.34%

Portfolio Composition

Based on Total Net Assets as of 3/31/20

based on net asset value (NAV). In comparison, the ICE BofAML US 3-Month Treasury Bill Index posted a +0.64% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 26.

Investment Strategy

The Fund’s top-down risk premia strategy focuses on value, momentum and carry factors in taking both long and short positions across equity, fixed income, commodity and currency asset classes.

The Fund’s bottom-up long/short equity strategy focuses on quality, value and momentum factors in determining whether to hold long or short positions in individual equity securities. Long/short equity strategies generally seek to produce returns from investments in the equity markets by taking long and short positions in stocks and stock indices (through the use of derivatives or through a short position in an exchange-traded fund). Long positions benefit from an increase in the price of the underlying instrument, while short positions benefit from a decrease in that price.

1. Source: Factset.

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

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Consolidated Statement of Investments (SOI). The Consolidated SOI begins on page 45.



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FRANKLIN LIBERTY SYSTEMATIC STYLE PREMIA ETF

Under normal market conditions, the top-down risk premia strategy invests primarily in equity, interest rate/bond and commodity index futures; equity and commodity-linked total return swaps; and currency forwards. Under normal market conditions, the bottom-up long/short equity strategy invests primarily in equity securities and equity total return swaps, with equity total return swaps being used to obtain short exposures.

Under normal market conditions, we seek to allocate assets between the two factor-based risk premia alternative investment strategies described above according to each strategy’s estimated risk, as measured by historical returns based risk models. We seek to maintain equal risk contributions between the two strategies.

Through the two strategies, we invest the Fund’s assets based on a systematic investment process for securities selection and asset allocation by utilizing quantitative trading models. By employing these two approaches, we seek to provide positive absolute return over time while maintaining a relatively low correlation with traditional markets. The exposure to individual factors may vary based on the market opportunity of the individual factors.

The Fund may use derivatives for both hedging and non-hedging (investment) purposes. The Fund’s derivative investments may include, among other instruments: (i) futures contracts, including futures on equity, interest rate/bond and commodity indices; (ii) swaps, including equity and commodity-linked total return swaps; and (iii) currency forward contracts. These derivatives may be used to enhance Fund returns, increase liquidity, gain long or short exposure to certain instruments, markets or factors in a more efficient or less expensive way and/or hedge risks associated with its other portfolio investments. The results of such transactions are expected to represent a material component of the Fund’s investment returns.

Manager’s Discussion

At period-end, global equity markets sold off to register the worst drawdowns since the Global Financial Crisis more than a decade ago. Developed markets and emerging markets were both down significantly from their March lows before slightly recovering and closing higher. Broader commodity markets also had a challenging first quarter of 2020. The


Top 10 Sectors/Industries

3/31/20

	% of Total Net Assets
Financials		11.9%
Information Technology		8.5%
Health Care		6.5%
Consumer Discretionary		5.5%
Industrials		5.2%
Consumer Staples		3.9%
Communication Services		3.7%
Materials		3.1%
Energy		1.9%
Utilities		1.4%


Top 10 Long Positions^a

3/31/20

Company *Sector/Industry, Country*	% of Total Net Assets
FLSP Holdings Corp. Diversified Financial Services, Cayman Islands		3.6%
McDonald’s Corp. Hotels, Restaurants & Leisure, United States		0.8%
Total SA Oil, Gas & Consumable Fuels, France		0.8%
Lockheed Martin Corp. Aerospace & Defense, United States		0.8%
Novo Nordisk AS, B Pharmaceuticals, Denmark		0.8%
AbbVie Inc. Biotechnology, United States		0.8%
Medtronic PLC Health Care Equipment & Supplies, United States		0.8%
SAP SE Software, Germany		0.7%
The Home Depot Inc. Specialty Retail, United States		0.7%
Novartis AG Pharmaceuticals, Switzerland		0.7%


Top 10 Short Holdings

3/31/20

Company Sector/Industry, Country	% of Total Net Assets
BeiGene Ltd. Pharmaceuticals, Biotechnology & Life Sciences, China		0.0%
Tapestry Inc. Consumer Durables & Apparel, United States		0.0%
Delta Air Lines Inc. Transportation, United States		0.0%
Lincoln National Corp. Insurance, United States		-0.1%
Targa Resources Corp Energy, United States		-0.1%
Pinterest Inc Media & Entertainment, United States		-0.1%
Apache Corp. Energy, United States		-0.1%
Barratt Developments PLC Consumer Durables & Apparel, United Kingdom		-0.1%
VEREIT Inc. Real Estate, United States		-0.1%
Aramark Consumer Durables & Apparel, United States		-0.1%



24	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SYSTEMATIC STYLE PREMIA ETF

energy heavy S&P GSCI Index and the Bloomberg Commodity Index suffered major declines. 2020’s first quarter was a difficult period for long/short factor strategies (value, carry and momentum) in commodities markets. In our opinion, commodities markets experienced a perfect storm from the combination of demand-shock from the COVID-19 pandemic and an oil price war between Russia and Saudi Arabia in March. Also, West Texas Intermediate, Brent and gasoline futures fell substantially during the quarter.

Fund performance during the short period since inception was negative. The Fund’s strategies, while beta neutral in design, were affected by rapid changes in volatility. We saw similar challenges across the multi-alternative sector, particularly among style premia strategy managers. Under normal conditions, these strategies are expected to deliver strong performance when volatility returns to more normal levels. Looking forward, we believe that volatility in markets will continue to remain elevated over the next few months as the world tackles COVID-19 and its economic fallout. We have reduced risk in the overall portfolio based on our proprietary systematic risk indicator that we run every day. This indicator is strongly signaling that this is a risk-off environment. We will continue to monitor this risk indicator to look for an opportunity to recalibrate risk.

The Fund’s top-down and bottom-up long/short equity components had negative results during the period, with a larger proportion coming from the top-down component.

All asset classes from within the top-down component—commodities, equity indexes, fixed income and foreign currencies—detracted from the Fund’s performance. On a relative basis, commodity strategies and equity index strategies fared more poorly than fixed income and foreign currency strategies within the top-down component during the period.

The commodity carry and commodity value models performed poorly during the period, and accounted for more than 40% of the negative performance coming out of the Fund’s top-down asset class strategies. Detractors included long positions in gasoline and soybeans as well as short positions in lean hogs and natural gas.

The equity indexes value model from our top-down risk premia strategy also hurt Fund performance due to the valuation model’s long positions in EuroStoxx, Italy and Canada. We believe this is a result of rapidly changing outlooks for many sectors in the market (energy being the most relevant example), during the period.

In our bottom-up long/short equity component, the quality and momentum model of our multifactor process contributed to the Fund’s performance and value detracted. Being net long in exposure relative to short exposure hurt Fund results. Realized risk that arose in the market ended up being higher than modeled ex-ante risk in portfolio construction. We have recalibrated the portfolio with updated risk forecasts, while being engaged to value, momentum and quality with respect to positioning going forward.

At period-end, among equity indexes, our largest long positions were EuroStoxx, Spain and Sweden and our largest short positions were Hong Kong, U.K. and NASDAQ.

Among fixed income indexes, our largest long positions were Canada, Italy and France, and our largest short positions were Gilts, German Bunds and U.S. Treasuries.

Among foreign currency exposures, our largest long positions were the Japanese yen, Swedish krona and Turkish lira, and our largest short positions were the Swiss Krone, New Zealand dollar and Swiss Franc. All foreign currency exchange rates are measured against the U.S. dollar.

Among commodity indexes, our largest long positions were sugar, cocoa and gold, and our largest short positions were lean soybeans, natural gas and lean hogs.

Thank you for your participation in Franklin Liberty Systematic Style Premia ETF. We look forward to serving your future investment needs.

LOGO

Chandra Seethamraju, Ph.D.

LOGO

Sundaram Chettiappan, CFA


		Vaneet Chadha, CFA

		Portfolio Management Team



franklintempleton.com	Annual Report	25

FRANKLIN LIBERTY SYSTEMATIC STYLE PREMIA ETF

Performance Summary as of March 31, 2020

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (12/20/19), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on

market price⁴

Since Inception (12/18/19)

-7.34%

-6.98%

-7.34%

-6.98%

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

See page 27 for Performance Summary footnotes.



26	Annual Report	franklintempleton.com

FRANKLIN LIBERTY SYSTEMATIC STYLE PREMIA ETF

PERFORMANCE SUMMARY

Distributions(12/18/19–3/31/20)

Net Investment

Income

$0.005020

Total Annual Operating Expenses⁵



With Fee Waiver	Without Fee Waiver
0.65%		0.92%

All investments involve risks, including possible loss of principal. The Fund is actively managed and could experience losses if the manager’s judgment about particular investments, or its evaluation of the risks, potential returns and correlation properties of the various risk premia in which the Fund invests, prove to be incorrect. The manager’s allocation of Fund assets among different strategies, asset classes and investments may not prove beneficial or produce the desired results. Trading models used by the manager for securities selection and asset allocation may become outdated and the historical patterns upon which the models are based may weaken or disappear. There can be no assurance that the factor-based risk premia investment strategies utilized by the manager will enhance Fund performance, reduce volatility or reduce potential loss. Investments in derivatives involve costs and create economic leverage, which may result in significant volatility and cause the Fund to participate in losses (as well as gains) that significantly exceed the Fund’s initial investment. Certain derivatives have the potential for unlimited loss. Investing in derivatives and the use of foreign currency techniques involve special risks and may not achieve the anticipated benefits and/or may result in losses to the Fund. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument. The Fund may realize losses when a counterparty fails to perform as promised. Currency management strategies could result in losses to the Fund if currencies do not perform as the manager expects. The Fund will incur a loss as a result of a short position if the price of the asset sold short increases in value, which involves the risk of theoretically unlimited losses. Short positions are speculative transactions and involve special risks, including greater reliance on the manager’s ability to accurately anticipate the future value of a security. Taking short positions in securities results in a form of leverage which may cause the Fund to be more volatile. Investing in physical commodities, including through commodity-linked derivative instruments such as commodity-linked total returns swaps and commodity index futures, is speculative and can be extremely volatile. Market prices of commodities may fluctuate rapidly based on numerous factors. The current or “spot” prices of physical commodities may also affect, in a volatile and inconsistent manner, the prices of futures contracts in respect of the relevant commodity. Liquidity risk exists when securities or other investments become more difficult to sell, or are unable to be sold, at the price at which they’ve been valued. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies particular industries or sectors, or general market conditions. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments; investments in emerging markets involve heightened risks related to the same factors. To the extent the Fund focuses on particular countries, regions, industries, sectors or types of investment from time to time, it may be subject to greater risks or adverse developments in such areas of focus than a Fund that invests in a wider variety of countries, regions, industries or sectors or investments. Smaller- and midsize-company stocks have historically experienced more price volatility than larger-company stocks, especially over the short term. The market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly or unpredictably. Bond prices generally move in the opposite direction of interest rates. As the prices of bonds in the Fund adjust to a rise in interest rates, the Fund’s share price may decline. Changes in an issuer’s financial strength or in a security’s credit rating may affect its value. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.

5. Figures are as stated in the Fund’s current prospectus and may differ from the expense ratios disclosed in the Your Fund’s Expenses and Consolidated Financial Highlights sections in this report. In periods of market volatility, assets may decline significantly, causing total annual Fund operating expenses to become higher than the figures shown.



franklintempleton.com	Annual Report	27

FRANKLIN LIBERTY SYSTEMATIC STYLE PREMIA ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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

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


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

Beginning Account Value 12/18/19¹		Ending Account Value 3/31/20		Expenses Paid During Period 12/18/19–3/31/20²^,3		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20²^,3		Net Annualized Expense Ratio³
	$1,000.00	$	926.60	$	1.78	$	1,012.36	$	1.86		0.65	%

1. 12/18/19 for Actual; 12/18/19 for Hypothetical.

2. Expenses are equal to the annualized expense ratio for the six-month period as indicated above—in the far right column—multiplied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period. For Actual expenses, the multiplier is 104/366 to reflect the number of days since commencement of operations.

3. Reflects expenses after fee waivers and expense reimbursements.



28	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty High Yield Corporate ETF



	Year Ended March 31,

	2020			2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year		$25.45			$25.00


Income from investment operations^b

Net investment income^c		1.33			1.21

Net realized and unrealized gains (losses)		(2.51	)		0.49


Total from investment operations		(1.18	)		1.70


Less distributions from:

Net investment income		(1.56	)		(1.23	)

Net realized gains		(0.04	)		(0.02	)


Total Distributions		(1.60	)		(1.25	)


Net asset value, end of year		$22.67			$25.45


Total return^d		(5.12)%			7.07%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.86%			1.54%

Expenses net of waiver and payments by affiliates		0.40%			0.40%

Net investment income		5.29%			5.80%

Supplemental data

Net assets, end of year (000’s)		$130,362			$10,181

Portfolio turnover rate^f		129.98%	^g		23.57%

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 129.98%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	29

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Liberty High Yield Corporate ETF



		Country		Principal Amount*		Value
	Corporate Bonds & Notes 98.2%
	Automobiles & Components 0.9%
a	Adient US LLC, senior secured note, 144A, 7.00%, 5/15/26		United States		1,200,000	$	1,116,746

	Capital Goods 7.9%
a	Beacon Roofing Supply Inc., senior note, 144A, 4.875%, 11/01/25		United States		3,000,000		2,726,265
a	Cloud Crane LLC, secured note, second lien, 144A, 10.125%, 8/01/24		United States		700,000		555,628
a	Harsco Corp., senior note, 144A, 5.75%, 7/31/27		United States		600,000		559,749
	Jeld-Wen Inc.,
	^a senior bond, 144A, 4.875%, 12/15/27		United States		1,600,000		1,425,668
	^a senior note, 144A, 4.625%, 12/15/25		United States		500,000		444,373
a	Manitowoc Co. Inc., secured note, second lien, 144A, 9.00%, 4/01/26		United States		400,000		356,847
a	NCI Building Systems Inc., senior secured note, 144A, 8.00%, 4/15/26		United States		3,000,000		2,602,725
a	Resideo Funding Inc., senior note, 144A, 6.125%, 11/01/26		United States		1,200,000		1,056,090
a	TransDigm Inc., senior secured note, 144A, 6.25%, 3/15/26		United States		600,000		600,373


							10,327,718

	Commercial & Professional Services 4.8%
a	GFL Environmental Inc., senior note, 144A, 5.125%, 12/15/26		Canada		2,200,000		2,161,500
	H&E Equipment Services Inc., senior note, 5.625%, 9/01/25		United States		500,000		466,878
a	Herc Holdings Inc., senior note, 144A, 5.50%, 7/15/27		United States		2,200,000		2,062,665
a	Intrado Corp., senior note, 144A, 8.50%, 10/15/25		United States		200,000		147,440
	United Rentals North America Inc.,
	senior bond, 5.50%, 5/15/27		United States		900,000		884,183
	^a senior note, second lien, 144A, 3.875%, 11/15/27		United States		600,000		570,330


							6,292,996

	Consumer Durables & Apparel 1.9%
a	Ashton Woods USA LLC / Ashton Woods Finance Co., senior note, 144A, 9.875%, 4/01/27		United States		2,400,000		2,420,502

	Consumer Services 1.9%
a	1011778 BC ULC/New Red Finance Inc., secured note, second lien, 144A, 4.375%, 1/15/28		Canada		700,000		650,615
a	24 Hour Holdings III LLC, senior note, 144A, 8.00%, 6/01/22		United States		800,000		86,749
a	Downstream Development Authority of Quapaw Tribe of Oklahoma, secured note, 144A, 10.50%, 2/15/23		United States		100,000		80,874
a	Golden Nugget Inc., senior note, 144A, 6.75%, 10/15/24		United States		400,000		254,944
	Yum! Brands Inc., 7.75%, 4/01/25		United States		1,300,000		1,368,250


							2,441,432

	Diversified Financials 4.1%
a	Five Point Operating Co. LP/Five Point Capital Corp., senior note, 144A, 7.875%, 11/15/25		United States		2,000,000		1,734,940
a	HAT Holdings I LLC/HAT Holdings II LLC, senior note, 144A, 5.25%, 7/15/24		United States		600,000		579,753
	MPT Operating Partnership LP/MPT Finance Corp., senior bond, 5.00%, 10/15/27		United States		1,400,000		1,368,605
	Springleaf Finance Corp.,
	senior bond, 5.375%, 11/15/29		United States		1,100,000		1,013,177
	senior note, 6.625%, 1/15/28		United States		700,000		659,365


							5,355,840

	Energy 8.1%
	Cheniere Energy Partners LP,
	senior secured note, first lien, 5.25%, 10/01/25		United States		600,000		562,482
	^a senior secured note, first lien, senior bond, 144A, 4.50%, 10/01/29		United States		1,500,000		1,343,325
a	Chesapeake Energy Corp., secured note, second lien, 144A, 11.50%, 1/01/25		United States		310,000		52,700



30	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Energy (continued)
	Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.,
	senior note, 5.75%, 4/01/25		United States		600,000	$	348,018
	^a senior note, 144A, 5.625%, 5/01/27		United States		1,600,000		891,656
a	CSI Compressco LP/CSI Compressco Finance Inc., senior secured note, first lien, 144A, 7.50%, 4/01/25		United States		1,100,000		746,631
a	CVR Energy Inc., senior note, 144A, 5.25%, 2/15/25		United States		2,500,000		1,962,500
a	Endeavor Energy Resources LP/EER Finance Inc., senior bond, 144A, 5.75%, 1/30/28		United States		700,000		479,885
	EnLink Midstream LLC, senior bond, 5.375%, 6/01/29		United States		1,100,000		579,664
	EnLink Midstream Partners LP, senior note, 4.15%, 6/01/25		United States		1,900,000		932,814
	Martin Midstream Partners LP/Martin Midstream Finance Corp., senior note, 7.25%, 2/15/21		United States		100,000		54,505
	Murphy Oil USA Inc., senior bond, 4.75%, 9/15/29		United States		500,000		471,525
	Nabors Industries Inc., senior note, 5.10%, 9/15/23		United States		1,200,000		309,000
a	Nabors Industries Ltd., senior note, 144A, 7.25%, 1/15/26		Bermuda		300,000		104,250
	QEP Resources Inc., senior note, 5.625%, 3/01/26		United States		500,000		186,288
a	Tullow Oil PLC, senior note, 144A, 6.25%, 4/15/22		United Kingdom		900,000		228,825
a	Viper Energy Partners LP, senior note, 144A, 5.375%, 11/01/27		United States		200,000		169,110
	WPX Energy Inc., senior bond, 4.50%, 1/15/30		United States		2,100,000		1,148,175


							10,571,353

	Food, Beverage & Tobacco 5.4%
	B&G Foods Inc., senior note, 5.25%, 4/01/25		United States		3,100,000		3,043,936
a	JBS USA LUX SA/JBS USA Food Co./JBS USA Finance Inc., senior bond, 144A, 5.50%, 1/15/30		Free of Tax		2,600,000		2,698,930
a	Post Holdings Inc., senior bond, 144A, 4.625%, 4/15/30		United States		1,300,000		1,254,500


							6,997,366

	Health Care Equipment & Services 8.9%
a	Centene Corp., senior note, 144A, 4.25%, 12/15/27		United States		2,700,000		2,720,115
	CHS/Community Health Systems Inc., senior secured note, first lien, 6.25%, 3/31/23		United States		2,600,000		2,487,875
	HCA Inc., senior bond, 3.50%, 9/01/30		United States		2,300,000		2,096,154
a	MEDNAX Inc., senior note, 144A, 6.25%, 1/15/27		United States		1,500,000		1,215,113
a	MPH Acquisition Holdings LLC, senior note, 144A, 7.125%, 6/01/24		United States		1,400,000		1,228,542
a,b	Polaris Intermediate Corp., senior note, 144A, PIK, 8.50%, 12/01/22		United States		100,000		78,248
a	Tenet Healthcare Corp., senior note, second lien, 144A, 6.25%, 2/01/27		United States		1,800,000		1,761,750


							11,587,797

	Insurance 0.8%
a	Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, senior note, 144A, 6.75%, 10/15/27		United States		1,100,000		1,036,145

	Materials 14.8%
a	Ardagh Packaging Finance PLC/Ardagh Holdings USA Inc., senior note, 144A, 6.00%, 2/15/25		Luxembourg		600,000		606,180
a	Cleveland-Cliffs Inc., senior secured note, 144A, 6.75%, 3/15/26		United States		1,100,000		978,312
a	CSN Resources SA, senior note, 144A, 7.625%, 4/17/26		Luxembourg		1,200,000		788,106
a	Element Solutions Inc., senior note, 144A, 5.875%, 12/01/25		United States		600,000		592,482
a	Gates Global LLC/Gates Corp., senior note, 144A, 6.25%, 1/15/26		United States		2,300,000		2,048,161
a	Kaiser Aluminum Corp., senior note, 144A, 4.625%, 3/01/28		United States		2,700,000		2,411,235
a	Mauser Packaging Solutions Holding Co., senior note, 144A, 7.25%, 4/15/25		United States		1,700,000		1,300,551
a	Neon Holdings Inc., senior note, 144A, 10.125%, 4/01/26		United States		600,000		541,730
a	Novelis Corp., senior bond, 144A, 4.75%, 1/30/30		United States		400,000		358,250
a	Owens-Brockway Glass Container Inc., senior note, 144A, 5.875%, 8/15/23		United States		3,000,000		2,958,765
a	Plastipak Holdings Inc., senior note, 144A, 6.25%, 10/15/25		United States		500,000		451,250



franklintempleton.com	Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Materials (continued)
a	Rain CII Carbon LLC/CII Carbon Corp., senior note, second lien, 144A, 7.25%, 4/01/25		United States		400,000	$	338,988
a	Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA, senior secured note, first lien, 144A, 5.125%, 7/15/23		United States		500,000		499,373
a	Sealed Air Corp., senior bond, 144A, 5.125%, 12/01/24		United States		2,400,000		2,430,000
a	SunCoke Energy Partners LP / SunCoke Energy Partners Finance Corp., senior note, 144A, 7.50%, 6/15/25		United States		500,000		363,735
a	TPC Group Inc., secured note, 144A, 10.50%, 8/01/24		United States		600,000		495,153
a	Trivium Packaging Finance BV, senior secured note, 144A, 5.50%, 8/15/26		Netherlands		2,100,000		2,101,306
a	Univar Solutions USA Inc/Washington, senior note, 144A, 5.125%, 12/01/27		United States		100,000		91,555


							19,355,132

	Media & Entertainment 17.7%
a	Banijay Entertainment SASU, senior note, 144A, 5.375%, 3/01/25		France		1,200,000		1,107,000
	CCO Holdings LLC / CCO Holdings Capital Corp.,
	^a senior bond, 144A, 4.50%, 8/15/30		United States		2,000,000		1,971,250
	^a senior bond, 144A, 5.375%, 6/01/29		United States		1,200,000		1,239,780
a	Clear Channel Worldwide Holdings Inc., senior secured note, first lien, 144A, 5.125%, 8/15/27		United States		1,300,000		1,224,535
	CSC Holdings LLC,
	^a senior bond, 144A, 6.625%, 10/15/25		United States		500,000		529,390
	^a senior note, 144A, 7.50%, 4/01/28		United States		2,400,000		2,573,730
a	Diamond Sports Group LLC/Diamond Sports Finance Co., senior note, 144A, 6.625%, 8/15/27		United States		600,000		404,580
	DISH DBS Corp., senior bond, 5.875%, 7/15/22		United States		2,100,000		2,056,236
a	Gray Escrow Inc., senior note, 144A, 7.00%, 5/15/27		United States		2,700,000		2,701,485
a	LCPR Senior Secured Financing DAC, senior secured note, first lien, 144A, 6.75%, 10/15/27		United States		2,200,000		2,179,210
a	Live Nation Entertainment Inc., senior note, 144A, 4.75%, 10/15/27		United States		100,000		90,055
	Netflix Inc.,
	senior bond, 5.75%, 3/01/24		United States		2,600,000		2,752,763
	senior bond, 5.875%, 2/15/25		United States		300,000		318,677
a	Nexstar Broadcasting Inc., senior note, 144A, 5.625%, 7/15/27		United States		600,000		589,830
a	Scripps Escrow Inc., senior note, 144A, 5.875%, 7/15/27		United States		500,000		442,775
a	Univision Communications Inc., senior secured note, first lien, 144A, 5.125%, 5/15/23		United States		2,700,000		2,409,750
a	WMG Acquisition Corp., secured note, first lien, 144A, 5.00%, 8/01/23		United States		500,000		500,622


							23,091,668

	Pharmaceuticals, Biotechnology & Life Sciences 5.4%
a	Bausch Health Americas Inc., senior note, 144A, 9.25%, 4/01/26		United States		2,000,000		2,098,900
a	Bausch Health Companies Inc., senior note, 144A, 5.00%, 1/30/28		Canada		500,000		477,100
a	Catalent Pharma Solutions Inc., senior note, 144A, 5.00%, 7/15/27		United States		1,400,000		1,365,770
a	Horizon Therapeutics USA Inc., senior note, 144A, 5.50%, 8/01/27		United States		400,000		403,780
a	Par Pharmaceutical Inc., senior secured note, 144A, 7.50%, 4/01/27		United States		1,000,000		1,002,575
	Teva Pharmaceutical Finance Netherlands III BV, senior bond, 3.15%, 10/01/26		Netherlands		2,000,000		1,699,850


							7,047,975

	Retailing 0.9%
a	Lithia Motors Inc., senior note, 144A, 4.625%, 12/15/27		United States		1,300,000		1,179,880
a	Party City Holdings Inc., senior note, 144A, 6.625%, 8/01/26		United States		500,000		52,500


							1,232,380



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF (continued)



		Country		Principal Amount*		Value
	Corporate Bonds & Notes (continued)
	Semiconductors & Semiconductor Equipment 0.5%
a	Amkor Technology Inc., senior note, 144A, 6.625%, 9/15/27		United States		700,000	$	661,885

	Software & Services 0.6%
a	Blackboard Inc., secured note, second lien, 144A, 10.375%, 11/15/24		United States		500,000		458,750
a	Camelot Finance SA, senior note, 144A, 4.50%, 11/01/26		Luxembourg		400,000		390,249


							848,999

	Technology Hardware & Equipment 1.0%
a	CommScope Technologies LLC, senior bond, 144A, 6.00%, 6/15/25		United States		500,000		461,350
a	Presidio Holdings Inc., senior note, 144A, 8.25%, 2/01/28		United States		100,000		88,875
a	Tempo Acquisition LLC / Tempo Acquisition Finance Corp., senior note, 144A, 6.75%, 6/01/25		United States		800,000		738,024


							1,288,249

	Telecommunication Services 5.2%
a	Altice France SA, senior note, first lien, 144A, 8.125%, 2/01/27		France		2,300,000		2,410,515
	Altice France Holding SA,
	^a senior note, 144A, 10.50%, 5/15/27		Luxembourg		2,000,000		2,120,000
	^a senior note, 144A, 6.00%, 2/15/28		Luxembourg		300,000		266,154
a	CommScope Inc., senior note, 144A, 5.00%, 6/15/21		United States		300,000		299,610
	Front Range BidCo Inc.,
	^a senior note, 144A, 6.125%, 3/01/28		United States		500,000		477,813
	^a senior note, 144A, 4.00%, 3/01/27		United States		500,000		481,250
	Sprint Corp., senior note, 7.625%, 2/15/25		United States		700,000		779,905


							6,835,247

	Transportation 0.4%
a	DAE Funding LLC, senior note, 144A, 5.75%, 11/15/23		United States		600,000		560,247

	Utilities 6.9%
	Calpine Corp.,
	^a first lien, 144A, 4.50%, 2/15/28		United States		300,000		291,900
	^a senior note, 144A, 5.125%, 3/15/28		United States		700,000		649,250
	Clearway Energy Operating LLC, senior bond, 5.00%, 9/15/26		United States		3,100,000		3,025,732
a	InterGen NV, secured bond, 144A, 7.00%, 6/30/23		Netherlands		3,000,000		2,655,000
	Talen Energy Supply LLC, senior note, 6.50%, 6/01/25		United States		500,000		328,022
a	Vistra Operations Co. LLC, senior note, 144A, 5.50%, 9/01/26		United States		2,000,000		2,073,935


							9,023,839

	Total Corporate Bonds & Notes (Cost $146,529,672)						128,093,516

	Total Investments before Short Term Investments (Cost $146,529,672)						128,093,516

	Short Term Investments 0.1%
	U.S. Government & Agency Securities (Cost $100,000) 0.1%
c	FHLB, 4/01/20				100,000		100,000

	Total Investments (Cost $146,629,672) 98.3%						128,193,516
	Other Assets, less Liabilities 1.7%						2,168,514

	Net Assets 100.0%					$	130,362,030

See abbreviations on page 79.

*The principal amount is stated in U.S. dollars unless otherwise indicated.

^aSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the aggregate value of these securities was $99,151,437, representing 76.1% of net assets.

^bIncome may be received in additional securities and/or cash.

^cThe security was issued on a discount basis with no stated coupon rate.



franklintempleton.com	Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty High Yield Corporate ETF (continued)

At March 31, 2020, the Fund had the following credit default swap contracts outstanding. See Note 1(c).

Description

Periodic
Payment
Rate
Received
(Paid)

Payment
Frequency

Maturity
Date

Notional
Amount

Value

Unamortized
Upfront
Payments
(Reciepts)

Unrealized
Appreciation
(Depreciation)

Centrally Cleared Swap Contracts

Contracts to Sell Protection^d,e

Long: S3195204 CDS USD R F 5.00000 CDX

Quarterly

12/20/24

3,465,000

(205,481

)

308,039

(513,520

)

^dThe Fund enters contracts to sell protection to create a long credit position.

^ePerformance triggers for settlement of contract include default, bankruptcy or restructuring for single name swaps, and failure to pay or bankruptcy of the underlying securities for traded index swaps.



34	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty International Aggregate Bond ETF



	Year Ended March 31,

	2020			2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.56		$	25.00


Income from investment operations^b:

Net investment income^c		0.22			0.39

Net realized and unrealized gains (losses)		0.78			(0.40	)


Total from investment operations		1.00			(0.01	)


Less distributions from:

Net investment income		(0.09	)		(0.43	)

Net realized gains		(0.52	)		—


Total Distributions		(0.61	)		(0.43	)


Net asset value, end of year		$24.95			$24.56


Total return^d		4.05%			0.00%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		3.23%			2.32%

Expenses net of waiver and payments by affiliates		0.28%			0.35%

Net investment income		0.87%			1.91%

Supplemental data

Net assets, end of year (000’s)		$4,989			$4,912

Portfolio turnover rate^f		66.78%	^g		50.32%

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 66.78%



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	35

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Liberty International Aggregate Bond ETF



		Principal Amount*			Value
	Foreign Government and Agency Securities 82.9%
	Australia 2.1%
a	New South Wales Treasury Corp., senior bond, Reg S, 3.00%, 5/20/27		50,000	AUD	$	34,806
a,b	Queensland Treasury Corp., senior bond, 144A, Reg S, 3.25%, 8/21/29		50,000	AUD		35,902
a	Western Australian Treasury Corp., senior note, 26, Reg S, 3.00%, 10/21/26		50,000	AUD		34,571


						105,279

	Belgium 3.1%
a	Government of Belgium, Reg S, 1.25%, 4/22/33		125,000	EUR		155,947

	Canada 4.8%
	Government of Canada, 2.75%, 6/01/22		320,000	CAD		238,553

	Finland 2.0%
a	Government of Finland, Reg S, 0.375%, 9/15/20		90,000	EUR		99,676

	France 5.7%
	Government of France, ^a Reg S, 1.00%, 11/25/25		200,000	EUR		236,853
	^a,c senior note, Reg S, 0.00% , 5/25/22		40,000	EUR		44,673


						281,526

	Germany 10.4%
	Government of Germany, ^a Reg S, 1.50%, 9/04/22		140,000	EUR		162,826
	^a Reg S, 5.50%, 1/04/31		30,000	EUR		54,888
	^a,c Strip, Reg S, .01%, 10/08/21		80,000	EUR		89,171
	KFW, senior note, 2.05%, 2/16/26		20,000,000	JPY		211,743


						518,628

	Hungary 1.0%
	Government of Hungary, 6.75%, 10/22/28		12,800,000	HUF		51,786

	Indonesia 0.6%
	Indonesia Treasury Bond, senior bond, 8.25%, 5/15/36		500,000,000	IDR		29,869

	Ireland 3.6%
a,b	Government of Ireland, 144A, Reg S, senior bond, 1.50%, 5/15/50		140,000	EUR		180,635

	Italy 7.0%
a,b	Italy Buoni Poliennali Del Tesoro Reg S,144A, senior bond, 2.45%, 9/01/50		95,000	EUR		105,964
	Italy Treasury Bond, senior bond, 1.25%, 12/01/26		150,000	EUR		166,989
	^a,b senior bond, 144A, Reg S, 4.00%, 2/01/37		55,000	EUR		77,198


						350,151

	Japan 16.1%
	Development Bank of Japan, senior bond, 2.30%, 3/19/26		20,000,000	JPY		211,244
	Government of Japan, senior bond, 1.00%, 12/20/35		40,000,000	JPY		412,880
	senior bond, 1.50%, 3/20/33		16,500,000	JPY		178,991


						803,115

	Mexico 0.9%
	Government of Mexico, M, senior bond, 7.50%, 6/03/27		1,000,000d	MXN		42,886

	Netherlands 2.6%
	Government of Netherlands, ^a Reg S, .50%, 7/15/26		70,000	EUR		81,885
	^a,b senior bond, 144A, Reg S, .50%, 1/15/40		40,000	EUR		47,911


						129,796



36	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty International Aggregate Bond ETF (continued)



		Principal Amount*			Value
	Foreign Government and Agency Securities (continued)
	Poland 2.3%
	Government of Poland, 2.50%, 7/25/27		200,000	PLN	$	51,447
	5.75%, 4/25/29		200,000	PLN		64,458


						115,905

	South Africa 0.4%
	Government of South Africa, senior bond, 7.00%, 2/28/31		500,000	ZAR		20,684

	Spain 2.8%
	Government of Spain,
	^a,b senior bond, 144A, Reg S, 1.85%, 7/30/35		100,000	EUR		123,112
	^a,b senior bond, 144A, Reg S, 2.70%, 10/31/48		10,000	EUR		14,080


						137,192

e	Supranational 8.6%
	Asian Development Bank, senior bond, 339-00-1, 2.35%, 6/21/27		20,000,000	JPY		219,947
a	European Investment Bank, senior bond, Reg S, 1.90%, 1/26/26		20,000,000	JPY		209,823


						429,770

	United Kingdom 8.9%
	United Kingdom Treasury Bond,
	^a Reg S, 1.75%, 9/07/37		60,000	GBP		86,942
	^a Reg S, 2.25%, 9/07/23		120,000	GBP		159,789
	^a Reg S, 3.50%, 7/22/68		10,000	GBP		26,922
	^a Reg S, 4.25%, 12/07/46		35,000	GBP		79,194
	^a Reg S, 4.75%, 12/07/30		50,000	GBP		90,751


						443,598

	Total Foreign Government and Agency Securities (Cost $4,138,383)					4,134,996

	Corporate Bonds & Notes 8.7%
	Belgium 1.3%
a	Anheuser Busch Inbev SA/NV , senior note, Reg S, 1.50%, 3/17/25		60,000	EUR		66,550

	Czech Republic 2.1%
a	Energo-Pro AS, senior note, Reg S, 4.00%, 12/07/22		100,000	EUR		105,007

	Denmark 1.0%
a	Nordea Kredit Realkreditaktieselskab, secured bond, Reg S, 1.00%, 10/01/50		177,343	DKK		25,240
a	Nykredit Realkredit A/S secured bond, Reg S, 1.00%, 10/01/50		166,147	DKK		23,686


						48,926

	Germany 2.1%
a	Aroundtown SA, senior note, Reg S, 1.625%, 1/31/28		100,000	EUR		104,403

	Guernsey 2.2%
a	Globalworth Real Estate Investments Ltd., senior note, Reg S, 3.00%, 3/29/25		100,000	EUR		110,678

	Total Corporate Bonds & Notes (Cost $467,391)					435,564

	Total Investments before Short Term Investments (Cost $4,605,774)					4,570,560



franklintempleton.com	Annual Report	37

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty International Aggregate Bond ETF (continued)



		Principal Amount*		Value
	Short Term Investments 2.0%
	U.S. Government & Agency Securities (Cost $100,000) 2.0%
c	FHLB, 4/01/20		100,000	$	100,000

	Total Investments (Cost $4,705,774) 93.6%				4,670,560
	Other Assets, less Liabilities 6.4%				318,601

	Net Assets 100.0%			$	4,989,161

See abbreviations on page 79.

*The principal amount is stated in U.S. dollars unless otherwise indicated.

^aSecurity was purchased pursuant to Regulation S under the Securities Act of 1933, which exempts from registration securities offered and sold outside of the United States. Such a security cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund’s Board of Trustees. At March 31, 2020, the aggregate value of these securities was $2,669,083, representing 53.5% of net assets.

^cThe security was issued on a discount basis with no stated coupon rate.

^dPrincipal amount is stated in 100 Mexican Peso Units.

^eA supranational organization is an entity formed by two or more central governments through international treaties.

At March 31, 2020 the Fund had the following forward exchange contracts outstanding. See Note 1(c).


Forward Exchange Contracts

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Australian Dollar		CITI		Buy		175,000	$	106,241		4/06/20	$	1,185	$	—
Australian Dollar		CITI		Sell		175,000		114,593		4/06/20		7,167		—
Canadian Dollar		CITI		Buy		330,000		234,458		4/06/20		—		(738	)
Canadian Dollar		CITI		Sell		330,000		247,244		4/06/20		13,523		—
Danish Krone		CITI		Buy		700,000		103,215		4/06/20		134		—
Danish Krone		CITI		Sell		700,000		103,808		4/06/20		458		—
Euro		CITI		Buy		53,788		18,300,000		4/06/20		3,367		—
Euro		CITI		Buy		2,200,000		2,426,556		4/06/20		—		(2,649	)
Euro		CITI		Sell		2,200,000		2,439,129		4/06/20		15,221		—
Great British Pound		CITI		Buy		350,000		428,071		4/06/20		7,822		—
Great British Pound		CITI		Sell		350,000		448,746		4/06/20		12,853		—
Hungarian Forint		CITI		Buy		18,300,000		51,611		4/06/20		—		(969	)
Japanese Yen		CITI		Buy		165,000,000		1,519,897		4/06/20		14,522		—
Japanese Yen		CITI		Sell		165,000,000		1,523,083		4/06/20		—		(11,336	)
Mexican Peso		CITI		Buy		1,100,000		47,154		4/06/20		—		(283	)
Mexican Peso		CITI		Sell		1,100,000		56,041		4/06/20		9,170		—
Polish Zloty		CITI		Buy		500,000		121,468		4/06/20		—		(455	)
Polish Zloty		CITI		Sell		500,000		128,173		4/06/20		7,160		—
South African Rand		CITI		Buy		470,000		26,815		4/06/20		—		(391	)
South African Rand		CITI		Sell		470,000		30,149		4/06/20		3,726		—
Australian Dollar		CITI		Sell		175,000		106,158		10/06/20		—		(1,270	)
Canadian Dollar		CITI		Sell		330,000		234,885		10/06/20		891		—
Danish Krone		CITI		Sell		341,000		50,661		10/06/20		—		(6	)
Euro		CITI		Buy		51,506		18,300,000		10/06/20		1,048		—
Euro		CITI		Sell		2,200,000		2,438,931		10/06/20		111		—
Great British Pound		CITI		Sell		350,000		429,097		10/06/20		—		(7,641	)
Japanese Yen		CITI		Sell		165,000,000		1,533,450		10/06/20		—		(11,253	)
Mexican Peso		CITI		Sell		1,100,000		45,831		10/06/20		204		—



38	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty International Aggregate Bond ETF (continued)


Forward Exchange Contracts (continued)

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts (continued)
Polish Zloty		CITI		Sell		500,000	$	121,424		10/06/20	$	381	$	—
South African Rand		CITI		Sell		470,000		26,209		10/06/20		344		—

Total Forward Exchange Contracts											$	99,287	$	(36,991	)

Net unrealized appreciation (depreciation)													$	62,296

^aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	39

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Liberty Senior Loan ETF



	Year Ended March 31,

	2020			2019^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	24.85		$	25.00


Income from investment operations^b:

Net investment income^c		0.99			0.81

Net realized and unrealized gains (losses)		(1.90	)		(0.21	)


Total from investment operations		(0.91	)		0.60


Less distributions from net investment income		(1.09	)		(0.75	)


Net asset value, end of year	$	22.85		$	24.85


Total return^d		(3.92)%			2.44%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		0.97%			1.00%

Expenses net of waiver and payments by affiliates		0.45%			0.45%

Net investment income		4.02%			3.90%

Supplemental data

Net assets, end of year (000’s)		$54,833			$57,165

Portfolio turnover rate^f		51.48%	^g		10.62%

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 51.48%



40	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Liberty Senior Loan ETF



		Country		Principal Amount*		Value
a,b	Senior Floating Rate Interests 85.3%
	Aerospace & Defense 1.3%
	Dynasty Acquisition Co. Inc., Initial Term Loan, 5.212%, 4/04/26		United States		329,075	$	259,311
	Initial Term Loan, 5.212%, 4/04/26		United States		612,080		482,319


							741,630

	Airlines 1.9%
	American Airlines Inc., 2018 Replacement Term Loan, 2.710%, 6/27/25		United States		1,267,200		1,049,875

	Auto Components 2.7%
	Clarios Global LP (Power Solutions), Initial Dollar Term Loan, 5.103%, 4/30/26		United States		1,592,000		1,464,640

	Chemicals 3.7%
	Axalta Coating Systems U.S. Holdings Inc. (DuPont Performance Coatings), Term B-3 Dollar Loan, FRN, 3.694%, 6/01/24		United States		969,960		916,612
	Univar Solutions USA Inc., first lien, Term B-5 Loans, 3.603%, 7/01/26		United States		73,085		66,873
	Univar USA Inc., Term B-3 Loans, 3.853%, 7/01/24		United States		1,098,071		1,029,442


							2,012,927

	Commercial Services & Supplies 3.9%
c	Prime Security Services Borrower LLC, Term B-1 Facility, 4.610%, 9/12/26		United States		1,433,183		1,304,197
	Staples Inc., 2019 Refinancing Term B-1 Loans, 6.515%, 4/16/26		United States		585,807		470,842
	West Corp., Term B Loans, 5.603%, 10/10/24		United States		447,317		344,434


							2,119,473

	Communications Equipment 4.1%
	CommScope Inc., Initial Term Loans, 4.850%, 4/04/26		United States		1,592,000		1,512,400
	Zayo Group Holdings Inc, (Front Range BidCo), Term Loan B, 4.005%, 3/09/27		United States		775,700		727,219


							2,239,619

	Containers & Packaging 4.4%
	Berry Global Inc., Term W Loans, 2.862%, 10/01/22		United States		967,840		934,450
	Term Y Loans, 2.862%, 7/01/26		United States		297,750		281,969
	Reynolds Group Holdings Inc., U.S. Term Loans, 4.353%, 2/05/23		United States		1,258,946		1,200,720


							2,417,139

	Diversified Financial Services 3.9%
	Asurion LLC, Replacement B-6 Term Loans, 4.603%, 11/03/23		United States		1,530,731		1,477,155
c	Trans Union LLC, 2019 Replacement Term B-5 Loans, TBD, 11/16/26		United States		712,104		686,588


							2,163,743

	Electric Utilities 1.3%
c	Brookfield WEC Holdings Inc., Initial Term Loans, TBD, 8/01/25		United States		728,157		694,479

	Food & Staples Retailing 1.2%
	Aramark Corp., U.S. Term B-3 Loan, 3.353%, 3/11/25		United States		697,750		654,722

	Food Products 1.7%
	JBS USA Lux SA, New Term Loans, 3.603%, 5/01/26		United States		967,069		913,190

	Health Care Providers & Services 5.0%
	Air Medical Group Holdings Inc., 2018 New Term Loans, 5.863%, 3/14/25		United States		713,981		644,367
	DaVita Inc., Tranche B-1 Term Loan, 3.353%, 8/12/26		United States		1,592,010		1,521,696
	Gentiva Health Services Inc., Term Loan B, 4.875%, 7/02/25		United States		450,000		425,250
	Mallinckrodt International Finance SA & Mallinckrodt CB LLC, 2017 Term B Loans, 4.694%, 9/24/24		Luxembourg		190,544		130,999


							2,722,312



franklintempleton.com	Annual Report	41

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Senior Loan ETF (continued)



		Country		Principal Amount*		Value
a,b	Senior Floating Rate Interests (continued)
	Hotels Restaurants & Leisure 6.6%
c	1011778 B.C. ULC, Term B-4 Loan, 3.350%, 11/19/26		Canada		1,462,068	$	1,356,068
	Aristocrat Technologies Inc., Term B-3 Loans, 3.576%, 10/19/24		United States		1,073,993		977,334
	Caesars Resort Collection LLC, Term B Loans, 4.353%, 12/22/24		United States		1,603,424		1,317,099


							3,650,501

	Household Products 0.6%
	Reynolds Consumer Products LLC, Initial Term Loans, 3.501%, 2/04/27		United States		338,667		321,522

	Insurance 0.8%
	Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issue, Initial Term Loan, 4.603%, 5/09/25		United States		448,858		417,064

	Leisure Equipment & Products 1.5%
	Playtika Holding Corp., Term B Loans, FRN, 7.603%, 12/10/24		United States		878,875		829,072

	Media 12.0%
	Charter Communications Operating LLC (CCO Safari III LLC), Term B-2 Loan, 3.360%, 2/01/27		United States		1,129,512		1,091,862
	CSC Holdings LLC, March 2017 Incremental Term Loans, 2.861%, 7/17/25		United States		1,467,401		1,423,379
	Diamond Sports Group LLC, Term Loan, 4.180%, 8/24/26		United States		708,193		555,932
	Gray Television Inc., Term C Loan, 4.015%, 1/02/26		United States		254,893		245,972
d	Nexstar Broadcasting Inc., Term B-4 Loan, 4.331%, 9/19/26		United States		1,537,000		1,452,465
	Sinclair Television Group Inc., Tranche B Term Loans, 3.860%, 1/03/24		United States		822,987		790,068
	WideOpenWest Finance LLC, Term B Loan, 4.250%, 8/19/23		United States		1,107,161		1,011,668


							6,571,346

	Oil, Gas & Consumable Fuels 2.0%
	Buckeye Partners LP, Initial Term Loans, 4.265%, 11/01/26		United States		1,200,000		1,116,000

	Personal Products 2.3%
	Sunshine Luxembourg VII SARL (Nestle Skin Health), Facility B1 Commitments, FRN, 9/25/26		Luxembourg		1,396,500		1,277,797

	Pharmaceuticals 4.9%
	Endo Luxembourg Finance Co. I S.A.R.L. and Endo LLC, Initial Term Loans, 5.875%, 4/29/24		United States		323,753		290,569
	Grifols Worldwide Operations USA Inc., Dollar Tranche B Term Loan, 2.683%, 11/15/27		United States		1,290,054		1,236,301
	Valeant Pharmaceuticals International, Initial Term Loans, 3.616%, 6/02/25		United States		1,186,406		1,136,972


							2,663,842

	Professional Services 2.0%
	Nielsen Finance LLC (VNU Inc.), Class B-4 Term Loans, 3.005%, 10/04/23		United States		1,181,620		1,108,753

	Real Estate Management & Development 1.2%
	Cushman & Wakefield U.S. Borrower LLC, Replacement Term Loan, FRN, 4.353%, 8/21/25		United States		732,667		659,400

	Road & Rail 2.5%
	Genesee & Wyoming Inc., Initial Term Loan, 3.960%, 12/30/26		United States		1,430,000		1,385,312

	Software 8.9%
	Finastra USA Inc., Dollar Term Loan, FRN, 5.277%, 6/13/24		United States		905,997		788,217
	Go Daddy Operating Co. LLC, Tranche B-2 Term Loan, 3.353%, 2/15/24		United States		1,422,114		1,363,807
	Hyland Software Inc., Term Loans, 4.850%, 7/01/24		United States		1,065,855		995,687
	Infor (U.S.) Inc. (Lawson), Tranche B-6 Term Loan, 4.694%, 2/01/22		United States		596,923		578,717
c	SS&C European Holdings Sarl, Term B-4 Loan, 3.350%, 4/16/25		Luxembourg		202,380		192,767



42	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Senior Loan ETF (continued)



		Country		Principal Amount*		Value
a,b	Senior Floating Rate Interests (continued)
	Software (continued)
	SS&C Technologies Inc.,
	^c Term B-3 Loans, 3.350%, 4/16/25		United States		283,617	$	270,145
	^c Term B-5 Loan, 3.350%, 4/16/25		United States		295,453		280,828
c	Vertafore Inc., Initial Term Loans, TBD, 7/02/25		United States		448,864		405,099


							4,875,267

	Specialty Retail 4.9%
	Bass Pro Group LLC, Initial Term Loans, TBD, 9/25/24		United States		598,465		508,696
c	EG America LLC, Additional Facility Loan, TBD, 2/07/25		United States		434,843		318,522
	Harbor Freight Tools USA Inc., Refinancing Loans, 4.103%, 8/19/23		United States		912,527		837,243
	Michaels Stores Inc., 2018 New Replacement Term B Loan, 3.916%, 1/28/23		United States		585,563		494,801
	PetSmart Inc., Amended Loan, 5.000%, 3/11/22		United States		574,600		553,771


							2,713,033

	Total Floating Rate Loans (Cost $50,624,120)						46,782,658

	Asset-Backed Securities 9.3%
e,f	AMMC CLO 15 Ltd., 2014-15A, CRR, 144A, 4.131%, 4,01/15/2032		United States		1,000,000		858,800
e,f	Atrium XV, 15A, C, 144A, 4.006%, 4,01/23/2031		United States		1,000,000		848,587
e,f	BlueMountain CLO Ltd., 2018-3A, C, 144A, 3.994%, 4,10/25/2030		United States		1,000,000		844,919
e,f	Dryden 45 Senior Loan Fund, 2016-45A, CR, 144A, 4.031%, 4,10/15/2030		United States		1,000,000		862,655
e,f	Harbor Park CLO Ltd., 1A, C, 144A, 3.919%, 4,01/20/2031		United States		1,000,000		847,564
e,f	LCM XVIII LP, 2018A, CR, 144A, 3.669%, 4,04/20/2031		United States		1,000,000		831,658

	Total Asset-Backed Securities (Cost $5,996,875)						5,094,183

	Total Investments before Short Term Investments (Cost $56,620,995)						51,876,841

	Short Term Investments 0.4%
	U.S. Government & Agency Securities (Cost $235,000) 0.4%
g	FHLB,4/01/20		United States		235,000		235,000

	Total Investments (Cost $56,855,995) 95.0%						52,111,841
	Other Assets, less Liabilities 5.0%						2,721,324

	Net Assets 100.0%					$	54,833,165

See abbreviations on page 79.

*The principal amount is stated in U.S. dollars unless otherwise indicated.

^aThe coupon rate shown represents the rate at period end.

^bSee Note 1(e) regarding senior floating rate interests.

^cA portion or all of the security represents an unsettled loan commitment. The coupon rate is to-be determined (TBD) at the time of settlement and will be based upon a reference index/floor plus a spread.

^dA portion or all of the security purchased on a delayed delivery basis.

^eSecurity was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. At March 31, 2020, the aggregate value of these securities was $5,094,183, representing 9.3% of net assets.

^fThe coupon rate shown represents the rate inclusive of any caps or floors, if applicable, in effect at period end.

^gThe security was issued on a discount basis with no stated coupon rate.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	43

FRANKLIN TEMPLETON ETF TRUST

Consolidated Financial Highlights

Franklin Liberty Systematic Style Premia ETF



	Year Ended March 31, 2020^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.00


Income from investment operations^b:

Net investment income^c		0.11

Net realized and unrealized gains (losses)		(1.94	)


Total from investment operations		(1.83	)


Less distributions from net investment income		(0.01	)


Net asset value, end of year	$	23.16


Total return^d		(7.34)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		1.15%

Expenses net of waiver and payments by affiliates		0.65%

Net investment income		1.67%

Supplemental data

Net assets, end of year (000’s)		$50,948

Portfolio turnover rate^f		60.95%	^g

^aFor the period December 18, 2019 (commencement of operations) to March 31, 2020.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

^fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 60.95%



44	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Consolidated Statement of Investments, March 31, 2020

Franklin Liberty Systematic Style Premia ETF



		Country		Shares		Value
	Common Stocks 49.3%
	Aerospace & Defense 1.3%
	Lockheed Martin Corp.		United States		1,166	$	395,216
	Raytheon Co.		United States		1,500		196,725
a	Teledyne Technologies Inc.		United States		227		67,480

							659,421

	Air Freight & Logistics 0.3%
	Deutsche Post AG		Germany		4,836		131,464

	Auto Components 0.1%
	Magna International Inc.		Canada		1,300		41,018

	Automobiles 0.1%
	Peugeot SA		France		2,868		38,282

	Banks 1.4%
	Banco Bilbao Vizcaya Argentaria SA		Spain		32,209		103,038
	BNP Paribas SA		France		5,881		177,520
	BOC Hong Kong (Holdings) Ltd.		Hong Kong		19,500		53,965
	Canadian Imperial Bank of Commerce		Canada		2,500		144,026
	Hang Seng Bank Ltd.		Hong Kong		4,200		71,798
	Japan Post Bank Co. Ltd.		Japan		2,200		20,318
	National Bank of Canada		Canada		1,700		64,961
	Skandinaviska Enskilda Banken AB, A		Sweden		7,891		53,506

							689,132

	Beverages 0.0%^†
	Suntory Beverage & Food Ltd.		Japan		500		18,920

	Biotechnology 2.0%
	AbbVie Inc.		United States		5,100		388,569
a	Biogen Inc.		United States		1,000		316,380
	CSL Ltd.		Australia		1,842		334,476

							1,039,425

	Building Products 0.3%
	AGC Inc.		Japan		800		19,705
	Geberit AG		Switzerland		182		80,132
	Masco Corp.		United States		1,530		52,892

							152,729

	Capital Markets 3.6%
	3i Group PLC		United Kingdom		4,732		46,482
	Amundi SA		France		296		17,490
	BlackRock Inc.		United States		611		268,822
	Brookfield Asset Management Inc., A		Canada		5,400		236,661
	Deutsche Boerse AG		Germany		915		125,498
	FactSet Research Systems Inc.		United States		41		10,688
	Hargreaves Lansdown PLC		United Kingdom		1,366		23,476
	Moody’s Corp.		United States		900		190,350
	Morgan Stanley		United States		6,900		234,600
	MSCI Inc.		United States		394		113,850
	Partners Group Holding AG		Switzerland		90		62,285
	S&P Global Inc.		United States		1,258		308,273
	SEI Investments Co.		United States		500		23,170
	Singapore Exchange Ltd.		Singapore		3,900		25,172
	T. Rowe Price Group Inc.		United States		1,362		132,999

							1,819,816



franklintempleton.com	Annual Report	45

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Chemicals 1.8%
	Air Liquide SA		France		2,503	$	320,370
	Akzo Nobel NV		Netherlands		892		58,735
	BASF SE		Germany		5,153		243,948
	Croda International PLC		United Kingdom		637		33,742
	EMS-Chemie Holding AG		Switzerland		39		24,527
	Evonik Industries AG		Germany		902		18,874
	Givaudan AG		Switzerland		48		148,581
	Nitto Denko Corp.		Japan		900		40,225
	Novozymes AS		Denmark		1,066		48,482

							937,484

	Commercial Services & Supplies 0.5%
	Cintas Corp.		United States		400		69,288
a	Copart Inc.		United States		1,300		89,076
	Dai Nippon Printing Co. Ltd.		Japan		1,300		27,709
	Secom Co. Ltd.		Japan		900		74,814
	Toppan Printing Co. Ltd.		Japan		1,300		19,942

							280,829

	Communications Equipment 0.2%
	Motorola Solutions Inc.		United States		700		93,044

	Construction & Engineering 0.2%
	Eiffage SA		France		386		27,318
	Obayashi Corp.		Japan		3,100		26,591
a	Skanska AB, B		Sweden		1,673		25,574

							79,483

	Containers & Packaging 0.1%
	Avery Dennison Corp.		United States		400		40,748

	Diversified Financial Services 0.4%
	Investor AB, B		Sweden		2,219		102,375
	Kinnevik AB, B		Sweden		1,166		19,430
a	M&G PLC		United Kingdom		13,311		18,585
	ORIX Corp.		Japan		6,600		79,508

							219,898

	Diversified Telecommunication Services 1.4%
	BCE Inc.		Canada		900		36,503
	BT Group PLC		United Kingdom		41,510		60,683
	Deutsche Telekom AG		Germany		18,090		234,499
	Nippon Telegraph & Telephone Corp.		Japan		6,700		159,843
	Orange SA		France		9,706		118,587
	Swisscom AG		Switzerland		127		68,281
	Telstra Corp. Ltd.		Australia		20,325		38,191

							716,587

	Electric Utilities 0.9%
	Chubu Electric Power Co. Inc.		Japan		2,700		38,128
	CLP Holdings Ltd.		Hong Kong		8,500		78,410
	Endesa SA		Spain		1,547		33,049
	Eversource Energy		United States		1,800		140,778
	NRG Energy Inc.		United States		1,278		34,838
	Power Assets Holdings Ltd.		Hong Kong		6,000		35,880
	Red Electrica Corp. SA		Spain		2,101		37,727
	Terna Rete Elettrica Nazionale SpA		Italy		6,712		42,495
a	Tokyo Electric Power Co. Holdings Inc.		Japan		7,800		27,239

							468,544



46	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Electrical Equipment 0.3%
	Legrand SA		France		1,292	$	82,904
	Vestas Wind Systems AS		Denmark		919		74,673

							157,577

	Electronic Equipment, Instruments & Components 0.4%
	CDW Corp.		United States		660		61,558
	Hitachi High-Tech Corp.		Japan		300		22,176
	Hitachi Ltd.		Japan		4,800		139,747

							223,481

	Entertainment 0.5%
a	Electronic Arts Inc.		United States		1,400		140,238
	Nexon Co. Ltd.		Japan		2,700		44,144
	Vivendi SA		France		4,177		89,487

							273,869

	Equity Real Estate Investment Trusts (REITs) 1.0%
	Dexus		Australia		5,353		29,782
	Equity Lifestyle Properties Inc.		United States		611		35,120
	Gecina SA		France		221		29,269
	Japan Real Estate Investment Corp.		Japan		4		23,454
	Link REIT		Hong Kong		10,900		92,393
	Nippon Building Fund Inc.		Japan		6		40,239
	Public Storage		United States		974		193,446
	Segro PLC		United Kingdom		5,446		51,591

							495,294

	Food & Staples Retailing 0.6%
	Koninklijke Ahold Delhaize NV		Netherlands		5,857		136,790
	Woolworths Group Ltd.		Australia		6,855		147,266

							284,056

	Food Products 0.6%
	Nestle SA		Switzerland		2,572		264,364
b	WH Group Ltd., Reg S		Hong Kong		48,500		45,366

							309,730

	Gas Utilities 0.4%
	Enagas SA		Spain		1,101		21,860
	Hong Kong and China Gas Co. Ltd.		Hong Kong		59,000		97,282
	Naturgy Energy Group SA		Spain		1,448		25,604
	Osaka Gas Co. Ltd.		Japan		1,700		32,061
	Tokyo Gas Co. Ltd.		Japan		1,700		40,250

							217,057

	Health Care Equipment & Supplies 1.7%
a	Align Technology Inc.		United States		380		66,101
	Carl Zeiss Meditec AG		Germany		196		19,001
	Cochlear Ltd.		Australia		348		39,926
	Coloplast AS, B		Denmark		554		80,369
	Hoya Corp.		Japan		2,300		196,008
	Medtronic PLC		United States		4,300		387,774
	Siemens Healthineers AG		Germany		733		28,990
	Sonova Holding AG		Switzerland		271		48,847

							867,016

	Health Care Technology 0.2%
	Cerner Corp.		United States		1,500		94,485



franklintempleton.com	Annual Report	47

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Hotels, Restaurants & Leisure 1.3%
	Compass Group PLC		United Kingdom		7,820	$	122,562
	Domino’s Pizza Inc.		United States		200		64,814
	McDonald’s Corp.		United States		2,400		396,840
	Sands China Ltd.		Macau		12,400		45,435
	Sodexo SA		France		433		29,286

							658,937

	Household Durables 0.2%
	Garmin Ltd.		United States		500		37,480
	Sekisui House Ltd.		Japan		3,100		51,243
	The Berkeley Group Holdings PLC		United Kingdom		607		27,208

							115,931

	Household Products 0.5%
	Henkel AG & Co. KGaA		Germany		507		37,467
	Kimberly-Clark Corp.		United States		1,800		230,166

							267,633

	Industrial Conglomerates 0.1%
	Jardine Matheson Holdings Ltd.		Hong Kong		900		45,000
	Jardine Strategic Holdings Ltd.		Hong Kong		1,100		24,420

							69,420

	Insurance 2.4%
	Admiral Group PLC		United Kingdom		919		25,411
	Allianz SE		Germany		1,943		334,462
	Fidelity National Financial Inc.		United States		1,300		32,344
	Great-West Lifeco Inc.		Canada		1,300		22,203
	Hannover Rueck SE		Germany		296		42,547
	Intact Financial Corp.		Canada		453		38,710
	MS&AD Insurance Group Holdings Inc.		Japan		2,300		64,448
	Muenchener Rueckversicherungs-Gesellschaft Aktiengesellschaft in Muenchen		Germany		740		149,483
	NN Group NV		Netherlands		1,482		40,003
	Power Corp. of Canada		Canada		2,150		34,198
	Sun Life Financial Inc.		Canada		3,100		98,596
	Swiss Life Holding AG		Switzerland		165		56,174
	Zurich Insurance Group AG		Switzerland		751		266,543

							1,205,122

	Interactive Media & Services 1.5%
a	Alphabet Inc. , A		United States		40		46,478
a	Alphabet, Inc., C		United States		304		353,494
	Auto Trader Group PLC		United Kingdom		4,472		24,348
a	Facebook Inc., A		United States		2,151		358,787

							783,107

	Internet & Direct Marketing Retail 0.5%
a	Booking Holdings Inc.		United States		146		196,416
	Expedia Group Inc.		United States		600		33,762
a	Zalando SE		Germany		664		25,493

							255,671

	IT Services 2.3%
	Accenture PLC, A		United States		2,278		371,906
	Atos SE		France		485		32,856
	Capgemini SE		France		759		64,127
a	CGI Inc., A		Canada		1,100		58,881
	Cognizant Technology Solutions Corp., A		United States		2,700		125,469
	Edenred		France		1,158		48,398



48	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	IT Services (continued)
	Fujitsu Ltd.		Japan		900	$	81,325
	Mastercard Inc., A		United States		751		181,411
	NEC Corp.		Japan		1,300		47,506
	Nomura Research Institute Ltd.		Japan		1,700		36,030
a	VeriSign Inc.		United States		618		111,296
	Western Union Co.		United States		2,074		37,602

							1,196,807

	Leisure Equipment & Products 0.2%
	Bandai Namco Holdings Inc.		Japan		900		43,693
	SHIMANO Inc.		Japan		400		57,209

							100,902

	Machinery 0.7%
	Alfa Laval AB		Sweden		1,529		26,582
	Atlas Copco AB		Sweden		1,876		55,479
	Atlas Copco AB, A		Sweden		3,232		108,922
	Epiroc AB, A		Sweden		3,186		31,662
	Epiroc AB, B		Sweden		1,877		18,645
	Schindler Holding AG		Switzerland		101		21,337
	Schindler Holding AG, PC		Switzerland		201		44,124
	SKF AB, B		Sweden		1,842		25,415
	Techtronic Industries Co. Ltd.		Hong Kong		6,500		42,182

							374,348

	Marine 0.1%
	Kuehne + Nagel International AG		Switzerland		270		37,072

	Media 0.1%
	WPP PLC		United Kingdom		6,244		42,691

	Metals & Mining 1.2%
	Barrick Gold Corp.		Canada		8,800		159,882
	BHP Group Ltd.		Australia		14,847		263,345
	Boliden AB		Sweden		1,317		24,100
	Fortescue Metals Group Ltd.		Australia		6,799		41,613
	Franco-Nevada Corp.		Canada		900		88,909
	Kirkland Lake Gold Ltd.		Canada		900		26,209

							604,058

	Multi-Utilities 0.1%
	Algonquin Power & Utilities Corp.		Canada		2,700		35,947

	Multiline Retail 0.1%
	Next PLC		United Kingdom		658		33,223

	Oil, Gas & Consumable Fuels 1.9%
	Cabot Oil & Gas Corp., A		United States		2,300		39,537
	Eni SpA		Italy		12,443		125,882
	HollyFrontier Corp.		United States		478		11,716
	INPEX Corp.		Japan		4,800		27,069
	Neste Oil OYJ		Finland		2,032		68,784
	OMV AG		Austria		722		19,932
	Phillips 66		United States		2,700		144,855
	Repsol SA		Spain		7,275		66,510
	Total SA		France		10,187		395,578
	Valero Energy Corp.		United States		2,000		90,720

							990,583



franklintempleton.com	Annual Report	49

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Personal Products 2.1%
	Beiersdorf AG		Germany		489	$	49,664
	L’Oreal SA		France		1,257		329,501
	Unilever NV		United Kingdom		7,356		361,638
	Unilever PLC		United Kingdom		6,243		315,485

							1,056,288

	Pharmaceuticals 2.6%
	Chugai Pharmaceutical Co. Ltd.		Japan		1,100		127,368
a	Jazz Pharmaceuticals PLC		United States		260		25,932
	Novartis AG		Switzerland		4,531		373,934
	Novo Nordisk AS, B		Denmark		6,530		392,858
	Otsuka Holdings Co. Ltd.		Japan		1,700		66,627
	Roche Holding AG		Switzerland		1,029		333,996

							1,320,715

	Professional Services 0.9%
	Adecco Group AG		Switzerland		758		29,880
	ManpowerGroup Inc.		United States		200		10,598
	Randstad NV		Netherlands		586		20,685
	RELX PLC		United Kingdom		9,316		200,070
	Robert Half International Inc.		United States		500		18,875
	SGS SA		Switzerland		26		60,247
	Wolters Kluwer NV		Netherlands		1,360		95,773

							436,128

	Real Estate Management & Development 1.0%
	Aroundtown SA		Germany		4,498		22,476
	CK Asset Holdings Ltd.		Hong Kong		13,500		73,937
	Daito Trust Construction Co. Ltd.		Japan		300		27,970
	Deutsche Wohnen AG		Germany		1,703		64,860
	Hang Lung Properties Ltd.		Hong Kong		11,000		22,338
	Henderson Land Development Co. Ltd.		Hong Kong		9,000		34,312
	Jones Lang LaSalle Inc.		United States		200		20,196
	New World Development Co. Ltd.		Hong Kong		28,000		30,128
	Sino Land Co. Ltd.		Hong Kong		16,000		20,312
	Sun Hung Kai Properties Ltd.		Hong Kong		8,000		105,485
	Swiss Prime Site AG		Switzerland		369		36,135
	Wheelock and Co. Ltd.		Hong Kong		5,000		34,125

							492,274

	Road & Rail 0.4%
	Kyushu Railway Co.		Japan		900		25,844
	Nagoya Railroad Co. Ltd.		Japan		900		25,261
	Old Dominion Freight Line Inc.		United States		654		85,778
	Tobu Railway Co. Ltd.		Japan		900		31,430
	West Japan Railway Co.		Japan		700		47,957

							216,270

	Semiconductors & Semiconductor Equipment 1.8%
	Intel Corp.		United States		6,800		368,016
	Skyworks Solutions Inc.		United States		800		71,504
	Texas Instruments Inc.		United States		3,368		336,564
	Tokyo Electron Ltd.		Japan		800		150,841

							926,925

	Software 2.7%
a	Adobe Inc.		United States		1,053		335,107
a	Cadence Design Systems Inc.		United States		1,300		85,852
a	Check Point Software Technologies Ltd.		Israel		534		53,688



50	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	Software (continued)
	Citrix Systems Inc.		United States		600	$	84,930
	Intuit Inc.		United States		1,389		319,470
a	Nice Ltd.		Israel		301		44,544
	SAP SE		Germany		3,369		380,014
	The Sage Group PLC		United Kingdom		5,356		39,303
	Trend Micro Inc.		Japan		500		24,733

							1,367,641

	Specialty Retail 1.6%
a	AutoZone Inc.		United States		126		106,596
	Best Buy Co. Inc.		United States		1,100		62,700
	Hennes & Mauritz AB, B		Sweden		3,934		50,824
	Nitori Co. Ltd.		Japan		400		54,023
	Ross Stores Inc.		United States		1,800		156,546
	The Home Depot Inc.		United States		2,020		377,154

							807,843

	Technology Hardware, Storage & Peripherals 0.3%
	HP Inc.		United States		7,700		133,672

	Textiles, Apparel & Luxury Goods 0.7%
	Adidas AG		Germany		921		208,076
	Burberry Group PLC		United Kingdom		2,028		33,306
	Hermes International		France		157		108,322
	Puma SE		Germany		408		24,354

							374,058

	Trading Companies & Distributors 0.4%
	Ferguson PLC		United Kingdom		1,097		68,773
	ITOCHU Corp.		Japan		6,600		137,099

							205,872

	Transportation Infrastructure 0.1%
	Aena SME SA		Spain		335		36,581

	Wireless Telecommunication Services 1.2%
	KDDI Corp.		Japan		8,800		260,034
	NTT DOCOMO Inc.		Japan		7,600		237,740
	Softbank Corp.		Japan		9,500		120,956

							618,730

	Total Common Stocks (Cost $31,308,400)						25,113,838

	Preferred Stocks (Cost $86,946) 0.1%
	Germany 0.2%
c	Henkel AG & Co. KGaA, 2.527%, pfd.		Germany		862		69,235

	Total Investments (Cost $31,395,346) 49.4%						25,183,073
	Other Assets, less Liabilities 50.6%						25,764,992

	Net Assets 100.0%					$	50,948,065

*The principal amount is stated in U.S. dollars unless otherwise indicated.

^†Rounds to less than 0.1% of net assets.

^aNon-income producing.

^cVariable rate security. The rate shown represents the yield at period end.

A supranational organization is an entity formed by two or more central governments through international treaties.



franklintempleton.com	Annual Report	51

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)

At March 31, 2020, the Fund had the following total return swap contracts outstanding. See Note 1(c).

Swaps

Description

Financing Rate

Payment
Frequency

Counterparty

Maturity
Date

Notional
Amount
(000)s

Unrealized
Appreciation
(Depreciation)

OTC Swap Contracts Short

MSFTLSSP

1-month USD LIBOR

At Maturity

MSCS

4/22/20

(19,797

)

—

At March 31, 2020 the Fund had the following forward exchange contracts outstanding. See Note 1(c).


Forward Exchange Contracts

Currency	Counterparty^a		Type		Quantity		Contract Amount		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
OTC Forward Exchange Contracts
Australian Dollar		MSCO		Sell		1,635,000	$	974,071		6/17/20	$	—	$	(26,851	)
Brazilian Real		MSCO		Buy		913,000		192,714		6/17/20		—		(17,534	)
Brazilian Real		MSCO		Sell		938,000		185,416		6/17/20		5,440		—
Brazilian Real		MSCO		Sell		913,000		179,760		6/17/20		4,580		—
Canadian Dollar		MSCO		Buy		1,930,000		1,362,874		6/17/20		—		(6,040	)
Canadian Dollar		MSCO		Sell		1,930,000		1,399,797		6/17/20		42,963		—
Czech Koruna		MSCO		Buy		80,848,000		3,223,107		6/17/20		18,780		—
Czech Koruna		MSCO		Sell		109,197,000		4,651,828		6/17/20		273,188		—
Euro		MSCO		Buy		311,000		341,554		6/17/20		683		—
Euro		MSCO		Buy		9,026,000		9,912,755		6/17/20		19,817		—
Euro		MSCO		Sell		9,026,000		10,121,281		6/17/20		188,709		—
Great British Pound		MSCO		Buy		3,761,000		4,744,916		6/17/20		—		(75,220	)
Great British Pound		MSCO		Sell		2,820,000		3,366,291		6/17/20		—		(135,050	)
Hungarian Forint		MSCO		Buy		242,763,000		804,334		6/17/20		—		(64,472	)
Hungarian Forint		MSCO		Sell		242,763,000		747,571		6/17/20		7,709		—
Israeli Shekel		MSCO		Buy		18,596,000		5,147,689		6/17/20		128,625		—
Israeli Shekel		MSCO		Sell		22,347,000		6,053,235		6/17/20		—		(287,365	)
Japanese Yen		MSCO		Buy		76,692,000		726,050		6/17/20		—		(13,359	)
Japanese Yen		MSCO		Buy		69,039,000		630,863		6/17/20		10,710		—
Mexican Peso		MSCO		Buy		117,076,000		5,352,046		6/17/20		—		(419,124	)
Mexican Peso		MSCO		Sell		99,661,000		4,087,483		6/17/20		—		(111,670	)
New Turkish Lira		MSCO		Buy		21,743,000		3,400,436		6/17/20		—		(173,192	)
New Turkish Lira		MSCO		Sell		12,362,000		1,858,910		6/17/20		24,058		—
New Zealand Dollar		MSCO		Buy		3,527,000		2,067,326		6/17/20		22,369		—
New Zealand Dollar		MSCO		Sell		5,727,000		3,519,997		6/17/20		126,835		—
Norwegian Krone		MSCO		Buy		53,374,000		4,986,777		6/17/20		97,417		—
Norwegian Krone		MSCO		Sell		60,386,000		6,014,771		6/17/20		262,642		—
Russian Ruble		MSCO		Buy		171,346,000		2,321,708		6/17/20		—		(154,420	)
Russian Ruble		MSCO		Sell		133,975,000		1,686,705		6/17/20		—		(7,892	)
South African Rand		MSCO		Buy		26,995,000		1,648,444		6/17/20		—		(152,081	)
South African Rand		MSCO		Sell		16,568,000		936,818		6/17/20		18,435		—
South Korean Won		MSCO		Sell		1,167,172,000		953,122		6/17/20		—		(8,344	)
Swedish Krona		MSCO		Buy		13,554,000		1,369,903		6/17/20		11,829		(11,476	)
Swiss Franc		MSCO		Sell		1,369,000		1,427,296		6/17/20		12,338		(5,101	)

Total Forward Exchange Contracts											$	1,277,127	$	(1,669,191	)

Net unrealized appreciation (depreciation)													$	(392,064	)

^aMay be comprised of multiple contracts with the same counterparty, currency and settlement date.



52	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)

At March 31, 2020, the Fund had the following futures contracts outstanding. See Note 1(c).


Futures Contracts

Description	Type		Number of Contracts		Notional Amount*		Expiration Date		Value/Unrealized Appreciation (Depreciation)
Index Contracts
OMXS30 Index		Long		183	$	2,733,631		4/17/20	$	156,200
Canada 10 Yr. Bond		Long		25		2,584,396		6/19/20		33,872
EURO STOXX 50 Index		Long		59		1,778,347		6/19/20		48,493
Euro-BTP		Long		8		1,241,297		6/08/20		(43,534	)
IBEX 35 Index		Long		15		1,113,204		4/17/20		2,885
Euro-OAT		Long		4		733,885		6/08/20		11,726
SPI 200 Index		Long		9		703,567		6/18/20		(18,057	)
S&P/TSX 60 Index		Long		5		572,031		6/18/20		55,367
Australian 10 Yr. Bond		Long		6		553,088		6/15/20		7,240
FTSE/MIB Index		Long		3		278,548		6/19/20		30,448
U.S. Treasury 10 Yr. Note		Long		1		138,688		6/19/20		6,926
CAC 40 10 Euro		Long		1		48,224		4/17/20		943
Mexican IPC Index		Short		6		90,453		6/19/20		2,410
SGX Nifty 50		Short		7		119,987		4/30/20		(15,097	)
FTSE/JSE Africa Top40 Index		Short		22		505,532		6/18/20		(8,832	)
DAX Index		Short		3		815,326		6/19/20		(83,328	)
Nikkei 225 Mini		Short		6		1,051,549		6/11/20		(14,549	)
Long Gilt		Short		7		1,182,082		6/26/20		(5,040	)
NASDAQ 100 E-Mini		Short		8		1,245,800		6/19/20		(95,067	)
FTSE 100 Index		Short		22		1,537,303		6/19/20		(37,702	)
Hang Seng Index		Short		18		2,754,261		4/28/20		(136,827	)
Euro-Bund		Short		32		6,057,173		6/08/20		18,575
Commodity Contracts
Cocoa, May		Long		58		1,304,420		5/13/20		(243,500	)
Wheat, May		Long		37		1,052,187		5/14/20		10,864
Gold 100 Ounce, June		Long		6		957,960		6/26/20		4,829
Soybean Meal, May		Long		14		450,100		5/14/20		(7,417	)
Live Cattle, June		Long		12		441,960		6/30/20		(24,356	)
Sugar No. 11, April		Long		35		408,464		4/30/20		(134,638	)
Platinum, July		Long		8		291,960		7/29/20		(28,221	)
Gasoline Rbob, May		Long		7		174,254		4/30/20		(117,675	)
Silver, May		Short		1		70,780		5/27/20		21,403
WTI Crude, May		Short		7		143,360		4/21/20		21,543
Brent Crude, June		Short		8		210,800		4/30/20		25,646
Low Sulphur Gas Oil, May		Short		11		324,225		5/12/20		15,381
Cotton No. 2		Short		13		332,345		5/06/20		11,026
Natural Gas, May		Short		24		393,600		4/28/20		74,684
Lean Hogs, June		Short		18		434,340		6/12/20		117,324
Soybean Oil, May		Short		31		502,386		5/14/20		48,915
Soybean, May		Short		12		531,600		5/14/20		6,104
Natural Gas, October		Short		26		538,200		9/28/20		3,648

Total Futures Contracts									$	(277,388	)

*As of period end.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	53

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Liberty Systematic Style Premia ETF

The following table represents the individual short positions and related values of the equity securities underlying the total return swap with Morgan Stanley Capital Services LLC as of March 31, 2020, expiration date 4/22/20:



	Country		Shares			Value
Reference Entity – Short 100.00%
Automobiles & Components 4.83%
Aptiv PLC		United States		(1,779	)	$	(87,598	)
Bayerische Motoren Werke AG		Germany		(2,236	)		(115,594	)
Daimler AGGermany				(5,716	)		(172,602	)
Ferrari NV		Italy		(759	)		(117,885	)
Fiat Chrysler Automobiles NV		United Kingdom		(7,358	)		(53,059	)
General Motors Co		United States		(8,103	)		(168,380	)
Harley-Davidson Inc		United States		(1,300	)		(24,609	)
Renault SA		France		(1,182	)		(22,966	)
Tesla Inc		United States		(55	)		(28,820	)
Valeo SA		France		(1,586	)		(26,539	)
Volkswagen AG		Germany		(1,161	)		(136,104	)


							(954,156	)

Banks 8.13%
Banco de Sabadell SA		Spain		(36,295	)		(18,678	)
Banco Santander SA		Spain		(82,676	)		(201,209	)
Barclays PLC		United Kingdom		(114,753	)		(133,907	)
CaixaBank SA		Spain		(22,551	)		(42,065	)
Commerzbank AG		Germany		(6,918	)		(25,114	)
DBS Group Holdings Ltd		Singapore		(12,100	)		(157,809	)
DNB ASA		Norway		(6,418	)		(71,355	)
East West Bancorp Inc		United States		(1,059	)		(27,259	)
Erste Group Bank AG		Austria		(2,019	)		(37,406	)
FinecoBank Banca Fineco SpA		Italy		(3,851	)		(35,029	)
ING Groep NV		Netherlands		(13,444	)		(70,534	)
Intesa Sanpaolo SpA		Italy		(98,746	)		(161,267	)
KBC Group NV		Belgium		(1,677	)		(77,321	)
Mediobanca Banca di Credito Finanziario SpA		Italy		(3,879	)		(21,400	)
Oversea-Chinese Banking Corp Ltd		Singapore		(21,800	)		(132,284	)
Royal Bank of Scotland Group PLC		United Kingdom		(32,874	)		(46,020	)
Societe Generale SA		France		(5,434	)		(91,512	)
SVB Financial Group		United States		(258	)		(38,979	)
UniCredit SpA		Italy		(12,798	)		(100,363	)
United Overseas Bank Ltd		Singapore		(8,600	)		(117,477	)


							(1,606,988	)

Capital Goods 8.00%
ACS Actividades de Construccion y Servicios SA		Spain		(1,826	)		(35,694	)
Caterpillar Inc		United States		(2,007	)		(232,892	)
Cie de Saint-Gobain		France		(3,278	)		(79,723	)
CK Hutchison Holdings Ltd		Hong Kong		(13,500	)		(91,093	)
CNH Industrial NV		United Kingdom		(6,376	)		(36,491	)
Daifuku Co Ltd		Japan		(700	)		(44,417	)
Ferrovial SA		Spain		(3,276	)		(78,614	)
Flowserve Corp		United States		(939	)		(22,433	)
General Electric Co		United States		(26,222	)		(208,203	)
Kingspan Group PLC		Ireland		(973	)		(51,993	)
Kone Oyj		Finland		(2,067	)		(117,075	)
Leonardo SpA		Italy		(2,548	)		(16,976	)
Melrose Industries PLC		United Kingdom		(30,887	)		(35,043	)
MTU Aero Engines AG		Germany		(120	)		(17,558	)
Prysmian SpA		Italy		(1,492	)		(23,902	)
Schneider Electric SE		France		(2,619	)		(225,815	)
Singapore Technologies Engineering Ltd		Singapore		(10,100	)		(22,132	)



54	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Capital Goods (continued)
TransDigm Group Inc		United States		(200	)	$	(64,038	)
Wartsila OYJ Abp		Finland		(2,719	)		(19,959	)
Westinghouse Air Brake Technologies Corp		United States		(1,300	)		(62,569	)
WSP Global Inc		Canada		(800	)		(44,919	)
Yaskawa Electric Corp		Japan		(1,800	)		(49,621	)


							(1,581,160	)

Commercial & Professional Services 0.59%
Brambles Ltd		Australia		(10,671	)		(68,969	)
Nielsen Holdings PLC		United States		(2,300	)		(28,842	)
SEEK Ltd		Australia		(2,063	)		(18,725	)


							(116,536	)

Consumer Durables & Apparel 1.11%
Barratt Developments PLC		United Kingdom		(2,026	)		(11,079	)
DR Horton Inc		United States		(800	)		(27,200	)
Lennar Corp		United States		(600	)		(22,920	)
Lululemon Athletica Inc		United States		(300	)		(56,865	)
Moncler SpA		Italy		(1,154	)		(42,153	)
Newell Brands Inc		United States		(2,800	)		(37,184	)
PulteGroup Inc		United States		(600	)		(13,392	)
Tapestry Inc		United States		(600	)		(7,770	)


							(218,563	)

Consumer Services 2.29%
Accor SA		France		(1,071	)		(29,379	)
Aramark		United States		(600	)		(11,982	)
Flutter Entertainment PLC		Ireland		(502	)		(45,465	)
Galaxy Entertainment Group Ltd		Macau		(15,000	)		(80,023	)
GVC Holdings PLC		United Kingdom		(3,708	)		(25,793	)
Marriott International Inc/MD		United States		(600	)		(44,886	)
MGM Resorts International		United States		(3,513	)		(41,453	)
Restaurant Brands International Inc		Canada		(1,900	)		(75,701	)
Stars Group Inc/The		Canada		(1,800	)		(36,396	)
Tabcorp Holdings Ltd		Australia		(12,784	)		(19,796	)
Wynn Resorts Ltd		United States		(700	)		(42,133	)


							(453,007	)

Diversified Financials 4.42%
Ameriprise Financial Inc		United States		(300	)		(30,744	)
Charles Schwab Corp/The		United States		(6,993	)		(235,105	)
Credit Suisse Group AG		Switzerland		(4,912	)		(40,614	)
Deutsche Bank AG		Germany		(13,566	)		(88,850	)
EXOR NV		Netherlands		(737	)		(38,008	)
Groupe Bruxelles Lambert SA		Belgium		(502	)		(39,450	)
Hong Kong Exchanges & Clearing Ltd		Hong Kong		(8,200	)		(247,347	)
Standard Life Aberdeen PLC		United Kingdom		(15,006	)		(41,660	)
TD Ameritrade Holding Corp		United States		(2,000	)		(69,320	)
Voya Financial Inc		United States		(1,053	)		(42,699	)


							(873,797	)

Energy 3.86%
Apache Corp		United States		(2,600	)		(10,868	)
BP PLC		United Kingdom		(32,600	)		(139,134	)
Caltex Australia Ltd		Australia		(1,587	)		(21,680	)
Cenovus Energy Inc		Canada		(6,800	)		(13,568	)
Equinor ASA		Norway		(1,961	)		(24,491	)
Galp Energia SGPS SA		Portugal		(3,107	)		(35,438	)



franklintempleton.com	Annual Report	55

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Energy (continued)
Halliburton Co		United States		(6,100	)	$	(41,785	)
Hess Corp		United States		(1,900	)		(63,270	)
Idemitsu Kosan Co Ltd		Japan		(1,300	)		(29,840	)
National Oilwell Varco Inc		United States		(2,700	)		(26,541	)
Noble Energy Inc		United States		(3,400	)		(20,536	)
Occidental Petroleum Corp		Ireland		(6,183	)		(71,599	)
Oil Search Ltd		Australia		(8,713	)		(12,692	)
Royal Dutch Shell PLC		United Kingdom		(4,894	)		(82,517	)
Schlumberger Ltd		United States		(8,517	)		(114,894	)
Suncor Energy Inc		Canada		(1,500	)		(23,670	)
Targa Resources Corp		United States		(1,542	)		(10,655	)
TechnipFMC PLC		United Kingdom		(2,800	)		(18,872	)


							(762,050	)

Food & Staples Retailing 1.05%
Aeon Co Ltd		Japan		(4,400	)		(97,778	)
Carrefour SA		United Kingdom		(3,808	)		(60,231	)
George Weston Ltd		Australia		(700	)		(49,490	)


							(207,499	)

Food, Beverage & Tobacco 4.68%
a2 Milk Co Ltd		New Zealand		(4,736	)		(48,265	)
Anheuser-Busch InBev SA/NV		Belgium		(4,357	)		(193,476	)
Conagra Brands Inc		United States		(3,325	)		(97,556	)
Constellation Brands Inc		United States		(1,031	)		(147,804	)
Davide Campari-Milano SpA		Italy		(3,642	)		(26,175	)
Heineken NV		Netherlands		(1,590	)		(132,871	)
Kerry Group PLC		Ireland		(1,021	)		(117,855	)
Mowi ASA		Norway		(2,835	)		(43,008	)
Orkla ASA		Norway		(4,757	)		(40,326	)
Swedish Match AB		Sweden		(369	)		(21,154	)
Treasury Wine Estates Ltd		Australia		(4,636	)		(28,460	)
Wilmar International Ltd		Singapore		(12,300	)		(27,903	)


							(924,853	)

Health Care Equipment & Services 5.34%
Boston Scientific Corp		United States		(7,424	)		(242,245	)
Cardinal Health Inc		United States		(2,100	)		(100,674	)
Centene Corp		United States		(1,300	)		(77,233	)
DexCom Inc		United States		(533	)		(143,521	)
Fisher & Paykel Healthcare Corp Ltd		New Zealand		(3,637	)		(65,505	)
Fresenius Medical Care AG & Co KGaA		Germany		(1,457	)		(96,241	)
Fresenius SE & Co KGaA		Germany		(2,792	)		(103,945	)
Insulet Corp		United States		(395	)		(65,444	)
Laboratory Corp of America Holdings		United States		(607	)		(76,719	)
Ramsay Health Care Ltd		Australia		(1,096	)		(38,424	)
Sonic Healthcare Ltd		Australia		(3,047	)		(45,373	)


							(1,055,324	)

Household & Personal Products 0.54%
Essity AB		Sweden		(1,361	)		(42,035	)
Estee Lauder Cos Inc/The		United States		(400	)		(63,736	)


							(105,771	)

Insurance 4.97%
Aegon NV		Netherlands		(10,199	)		(25,896	)
Ageas		Belgium		(1,224	)		(50,914	)
AIA Group Ltd		Hong Kong		(34,400	)		(311,339	)



56	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Insurance (continued)
American International Group Inc		United States		(5,553	)	$	(134,660	)
Assicurazioni Generali SpA		Italy		(3,447	)		(46,937	)
Lincoln National Corp		United States		(400	)		(10,528	)
Manulife Financial Corp		Canada		(9,900	)		(122,902	)
Markel Corp		United States		(96	)		(89,077	)
Medibank Pvt Ltd		Australia		(17,246	)		(28,077	)
Poste Italiane SpA		Italy		(3,311	)		(28,047	)
QBE Insurance Group Ltd		Australia		(8,812	)		(46,383	)
Sampo Oyj		Finland		(2,966	)		(86,633	)


							(981,395	)

Materials 5.94%
Agnico Eagle Mines Ltd		Canada		(1,500	)		(59,205	)
Albemarle Corp		United States		(800	)		(45,096	)
ArcelorMittal SA		France		(4,530	)		(43,050	)
CRH PLC		Ireland		(4,906	)		(133,770	)
First Quantum Minerals Ltd		Zambia		(4,600	)		(23,237	)
Freeport-McMoRan Inc		United States		(9,600	)		(64,800	)
Glencore PLC		Switzerland		(73,902	)		(113,444	)
JFE Holdings Inc		Japan		(3,500	)		(22,792	)
Mosaic Co/The		United States		(2,300	)		(24,886	)
Nutrien Ltd		Canada		(4,000	)		(135,202	)
Orica Ltd		Australia		(2,388	)		(22,435	)
Rio Tinto Ltd		Australia		(2,504	)		(129,610	)
Smurfit Kappa Group PLC		Ireland		(1,399	)		(39,482	)
Solvay SA		Belgium		(484	)		(35,252	)
South32 Ltd		Australia		(34,199	)		(36,944	)
Stora Enso Oyj		Finland		(3,702	)		(37,557	)
Teck Resources Ltd		Canada		(4,000	)		(29,986	)
Umicore SA		Belgium		(1,255	)		(43,859	)
UPM-Kymmene Oyj		Finland		(3,570	)		(98,282	)
Yara International ASA		Norway		(1,127	)		(35,342	)


							(1,174,231	)

Media & Entertainment 3.13%
DISH Network Corp		United States		(600	)		(11,994	)
Live Nation Entertainment Inc		United States		(300	)		(13,638	)
Netflix Inc		United States		(618	)		(232,059	)
Pinterest Inc		United States		(700	)		(10,808	)
Roku Inc		United States		(600	)		(52,488	)
Shaw Communications Inc		Canada		(3,200	)		(51,327	)
Snap Inc		United States		(4,900	)		(58,261	)
Twitter Inc		United States		(4,700	)		(115,432	)
Ubisoft Entertainment SA		France		(535	)		(39,437	)
Zillow Group Inc		United States		(900	)		(32,418	)


							(617,862	)

Pharmaceuticals, Biotechnology & Life Sciences 8.96%
Alnylam Pharmaceuticals Inc		United States		(800	)		(87,080	)
Astellas Pharma Inc		Japan		(10,400	)		(160,978	)
Bausch Health Cos Inc		United States		(2,300	)		(35,243	)
BeiGene Ltd		China		(30	)		(3,693	)
BioMarin Pharmaceutical Inc		United States		(1,300	)		(109,850	)
Canopy Growth Corp		Canada		(1,306	)		(18,773	)
Eisai Co Ltd		Japan		(1,800	)		(132,238	)
Elanco Animal Health Inc		United States		(2,600	)		(58,214	)
Exact Sciences Corp		United States		(1,062	)		(61,596	)
Galapagos NV		Belgium		(270	)		(53,623	)



franklintempleton.com	Annual Report	57

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Pharmaceuticals, Biotechnology & Life Sciences (continued)
Grifols SA		Spain		(1,873	)	$	(63,710	)
Illumina Inc		United States		(800	)		(218,496	)
Ionis Pharmaceuticals Inc		United States		(1,000	)		(47,280	)
IQVIA Holdings Inc		United States		(1,083	)		(116,812	)
Perrigo Co PLC		United States		(800	)		(38,472	)
QIAGEN NV		Netherlands		(1,431	)		(57,484	)
Sarepta Therapeutics Inc		United States		(577	)		(56,442	)
Seattle Genetics Inc		United States		(900	)		(103,842	)
Takeda Pharmaceutical Co Ltd		Japan		(8,900	)		(272,717	)
UCB SA		Belgium		(847	)		(73,420	)


							(1,769,963	)

Real Estate 2.49%
Ascendas Real Estate Investment Trust		Singapore		(18,400	)		(36,571	)
CapitaLand Ltd		Singapore		(16,200	)		(32,426	)
CapitaLand Mall Trust		Singapore		(16,700	)		(20,994	)
Hongkong Land Holdings Ltd		Hong Kong		(5,900	)		(22,125	)
Lendlease Group		Australia		(3,503	)		(22,083	)
Omega Healthcare Investors Inc		United States		(500	)		(13,270	)
SBA Communications Corp		United States		(108	)		(29,157	)
Simon Property Group Inc		United States		(600	)		(32,916	)
Stockland		Australia		(11,571	)		(17,918	)
Swire Pacific Ltd		Hong Kong		(3,500	)		(22,555	)
Unibail-Rodamco-Westfield		France		(388	)		(21,951	)
Ventas Inc		United States		(700	)		(18,760	)
VEREIT Inc		United States		(2,400	)		(11,736	)
VICI Properties Inc		United States		(900	)		(14,976	)
Vicinity Centres		Australia		(20,065	)		(12,711	)
Welltower Inc		United States		(1,000	)		(45,780	)
Weyerhaeuser Co		United States		(5,097	)		(86,394	)
Wharf Real Estate Investment Co Ltd		Hong Kong		(7,000	)		(28,810	)


							(491,133	)

Retailing 2.91%
Delivery Hero SE		Germany		(774	)		(57,716	)
Grubhub Inc		United States		(698	)		(28,430	)
Industria de Diseno Textil SA		Spain		(786	)		(20,405	)
MercadoLibre Inc		Argentina		(304	)		(148,528	)
Ocado Group PLC		United Kingdom		(2,963	)		(44,822	)
Prosus NV		China		(2,996	)		(207,597	)
Rakuten Inc		Japan		(5,600	)		(42,536	)
Wayfair Inc		United States		(466	)		(24,903	)


							(574,937	)

Semiconductors & Semiconductor Equipment 5.10%
Advanced Micro Devices Inc		United States		(4,800	)		(218,304	)
ASML Holding NV		Netherlands		(806	)		(214,419	)
Lam Research Corp		United States		(300	)		(72,000	)
Marvell Technology Group Ltd		Bermuda		(4,400	)		(99,572	)
Microchip Technology Inc		United States		(1,662	)		(112,684	)
NVIDIA Corp		United States		(300	)		(79,080	)
NXP Semiconductors NV		Netherlands		(1,900	)		(157,567	)
ON Semiconductor Corp		United States		(2,800	)		(34,832	)
Renesas Electronics Corp		Japan		(5,100	)		(18,377	)


							(1,006,835	)

Software & Services 9.28%
Adyen NV		Netherlands		(65	)		(54,960	)



58	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Software & Services (continued)
Amadeus IT Group SA		Spain		(2,665	)	$	(126,324	)
Autodesk Inc		United States		(1,466	)		(228,843	)
DocuSign Inc		United States		(800	)		(73,920	)
DXC Technology Co		United States		(1,800	)		(23,490	)
GoDaddy Inc		United States		(1,300	)		(74,243	)
Guidewire Software Inc		United States		(588	)		(46,634	)
MongoDB Inc		United States		(246	)		(33,589	)
NortonLifeLock Inc		United States		(4,300	)		(80,453	)
Okta Inc		United States		(700	)		(85,582	)
Paycom Software Inc		United States		(200	)		(40,402	)
PTC Inc		United States		(800	)		(48,968	)
RingCentral Inc		United States		(200	)		(42,382	)
salesforce.com Inc		United States		(1,346	)		(193,797	)
Shopify Inc		Canada		(500	)		(207,124	)
Splunk Inc		United States		(956	)		(120,676	)
Square Inc		United States		(2,359	)		(123,564	)
Temenos AG		Switzerland		(130	)		(17,050	)
Twilio Inc		United States		(800	)		(71,592	)
Workday Inc		United States		(1,081	)		(140,768	)


							(1,834,361	)

Technology Hardware & Equipment 2.24%
Corning Inc		United States		(5,300	)		(108,862	)
Flex Ltd		Singapore		(3,500	)		(29,313	)
IPG Photonics Corp		United States		(242	)		(26,688	)
NetApp Inc		United States		(1,700	)		(70,873	)
Nokia Oyj		Finland		(37,643	)		(118,501	)
Western Digital Corp		United States		(2,100	)		(87,402	)


							(441,639	)

Telecommunication Services 4.13%
Cellnex Telecom SA		Spain		(1,598	)		(72,679	)
Elisa Oyj		Finland		(884	)		(54,784	)
HKT Trust & HKT Ltd		Hong Kong		(26,000	)		(35,423	)
Singapore Telecommunications Ltd		Singapore		(55,300	)		(98,649	)
SoftBank Group Corp		Japan		(6,900	)		(242,112	)
Spark New Zealand Ltd		New Zealand		(11,785	)		(28,541	)
Tele2 AB		Sweden		(1,108	)		(14,918	)
Telecom Italia SpA/Milano		Italy		(57,138	)		(23,347	)
Telefonica SA		Spain		(29,429	)		(134,766	)
Telenor ASA		Norway		(4,879	)		(70,576	)
TELUS Corp		Canada		(2,600	)		(40,644	)


							(816,439	)

Transportation 2.04%
Atlantia SpA		Italy		(3,300	)		(41,387	)
Aurizon Holdings Ltd		Australia		(12,564	)		(32,528	)
Delta Air Lines Inc		United States		(300	)		(8,559	)
FedEx Corp		United States		(1,576	)		(191,106	)
MTR Corp Ltd		Hong Kong		(11,500	)		(59,422	)
Uber Technologies Inc		United States		(1,300	)		(36,296	)
XPO Logistics Inc		United States		(700	)		(34,125	)


							(403,423	)

Utilities 3.99%
AES Corp/VA		United States		(4,500	)		(61,200	)
AGL Energy Ltd		Australia		(4,078	)		(42,905	)
APA Group		Australia		(7,983	)		(50,130	)



franklintempleton.com	Annual Report	59

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Liberty Systematic Style Premia ETF (continued)



	Country		Shares			Value
Reference Entity – Short (continued)
Utilities (continued)
CK Infrastructure Holdings Ltd		Hong Kong		(4,500	)	$	(23,920	)
E.ON SE		Germany		(13,584	)		(140,719	)
EDP – Energias de Portugal SA		Portugal		(17,060	)		(68,474	)
Electricite de France SA		France		(3,836	)		(30,246	)
Essential Utilities Inc		United States		(500	)		(20,350	)
Fortum Oyj		Finland		(2,977	)		(43,690	)
Hydro One Ltd		Canada		(2,300	)		(40,947	)
RWE AG		Germany		(1,276	)		(33,546	)
Snam SpA		Italy		(13,611	)		(62,785	)
Southern Co/The		United States		(2,400	)		(129,936	)
SSE PLC		United Kingdom		(1,418	)		(22,945	)
United Utilities Group PLC		United Kingdom		(1,441	)		(16,131	)


							(787,924	)

Total Value of Reference Entity – Morgan Stanley Capital Services LLC						$	(19,759,844	)



60	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2020



	Franklin Liberty High Yield Corporate ETF			Franklin Liberty International Aggregate Bond ETF			Franklin Liberty Senior Loan ETF			Franklin Liberty Systematic Style Premia ETF^a
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	146,629,672		$	4,705,774		$	56,855,995		$	31,395,346

Value – Unaffiliated issuers	$	128,193,516		$	4,670,560		$	52,111,841		$	25,183,073
Cash		1,425,609			7,176			4,686,556			16,945,721
Foreign currency, at value (cost $–, $280,927, $– and $13,035, respectively)		—			279,284			—			13,003
Receivables:
Investment securities sold		1,054,294			—			1,319,415			—
Interest		2,525,893			28,091			189,233			77,698
Affiliates		—			9,145			—			—
Closed swap contracts		—			—			—			46,057,673
Deposits with brokers for:
Futures contracts		—			—			—			2,747,621
Swap Contracts		288,512			—			—			—
Unrealized appreciation on OTC forward exchange contracts		—			99,287			—			1,277,127

Total assets		133,487,824			5,093,543			58,307,045			92,301,916

Liabilities:
Payables:
Management fees		22,982			—			3,870			20,187
Investment securities purchased		2,221,500			—			3,172,607			—
Transfer agent fees		14,300			14,300			14,300			6,301
Distributions to shareholders		746,293			—			183,562			—
Custodian fees		4,518			5,016			45,792			1,272
Professional fees		36,644			40,454			46,044			22,990
Reports to shareholders		1,163			1,277			1,112			2,740
Closed Swap Contracts		—			—			—			39,542,031
Variation margin on futures contracts		—			—			—			84,293
Variation margin on centrally cleared swap contracts		53,803			—			—			—
Registration and filing fees		18,382			129			353			—
Unrealized depreciation on OTC forward exchange contracts		—			36,991			—			1,669,191
Accrued expenses and other liabilities		6,209			6,215			6,240			4,846

Total liabilities		3,125,794			104,382			3,473,880			41,353,851

Net assets, at value	$	130,362,030		$	4,989,161		$	54,833,165		$	50,948,065

Net assets consist of:
Paid-in capital	$	149,255,775		$	5,005,000		$	60,417,704		$	54,371,205
Total distributable earnings (loss)		(18,893,745	)		(15,839	)		(5,584,539	)		(3,423,140	)

Net assets, at value	$	130,362,030		$	4,989,161		$	54,833,165		$	50,948,065

Shares outstanding		5,750,000			200,000			2,400,000			2,200,000

Net asset value per share	$	22.67		$	24.95		$	22.85		$	23.16

^aConsolidated financial statements. See Note 12.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	61

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2020



	Franklin Liberty High Yield Corporate ETF			Franklin Liberty International Aggregate Bond ETF			Franklin Liberty Senior Loan ETF			Franklin Liberty Systematic Style Premia ETF^b
Investment income:
Dividends:
Unaffiliated issuers	$	—		$	—		$	—		$	183,477

Interest: (net of foreign taxes)^a
Unaffiliated issuers		2,901,939			58,619			2,585,042			—
Total investment income		2,901,939			58,619			2,585,042			183,477
Expenses:
Management fees (Note 3a)		308,939			22,839			375,996			52,570
Transfer agent fees		16,900			16,900			16,900			6,301
Custodian fees		4,803			5,541			50,046			1,272
Reports to shareholders		7,309			7,438			7,405			3,030
Registration and filing fees		22,556			4,175			7,987			317
Professional fees		61,256			94,200			82,449			23,223
Trustee fees and expenses		2,952			628			7,231			46
Other		12,588			12,187			12,850			4,846

Total expenses		437,303			163,908			560,864			91,605
Expenses waived/paid by affiliates (Note 3c)		(233,130	)		(149,552	)		(300,559	)		(40,016	)

Net expenses		204,173			14,356			260,305			51,589

Net investment income		2,697,766			44,263			2,324,737			131,888

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(47,161	)		138,596			(592,448	)		5,359,401
Foreign currency transactions		—			(43,927	)		—			(28,371	)
Forwards exchange contracts		—			602			—			(501,235	)
Futures contracts		—			—			—			(2,873,377	)
Swap contracts		20,467			—			—			—

Net realized gain (loss)		(26,694	)		95,271			(592,448	)		1,956,418

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(18,570,176	)		(4,631	)		(4,015,523	)		(6,212,273	)
Translation of other assets and liabilities denominated in foreign currencies		—			1,653			—			20,127
Futures contracts		—			—			—			(277,388	)
Swap contracts		(513,520	)		—			—			—
Forward exchange contracts		—			62,296			—			(392,064	)

Net change in unrealized appreciation (depreciation)		(19,083,696	)		59,318			(4,015,523	)		(6,861,598	)

Net realized and unrealized gain (loss)		(19,110,390	)		154,589			(4,607,971	)		(4,905,180	)

Net increase (decrease) in net assets resulting from operations	$	(16,412,624	)	$	198,852		$	(2,283,234	)	$	(4,773,292	)


^aForeign taxes withheld on interest	$	—	$	723	$	—	$	—

^bConsolidated financial statements. See Note 12.



62	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty High Yield Corporate ETF						Franklin Liberty International Aggregate Bond ETF

	Year Ended March 31, 2020			Year Ended March 31, 2019^a			Year Ended March 31, 2020			Year Ended March 31, 2019^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	2,697,766		$	484,624		$	44,263		$	77,976
Net realized gain (loss)		(26,694	)		28,881			95,271			(49,575	)
Net change in unrealized appreciation (depreciation)		(19,083,696	)		134,020			59,318			(34,953	)

Net increase (decrease) in net assets resulting from operations		(16,412,624	)		647,525			198,852			(6,552	)

Distributions to shareholders		(3,146,157	)		(501,784	)		(121,439	)		(86,700	)

Capital share transactions: (Note 2)		139,740,070			10,035,000			—			5,005,000

Net increase (decrease) in net assets		120,181,289			10,180,741			77,413			4,911,748
Net assets:
Beginning of year		10,180,741			—			4,911,748			—

End of year	$	130,362,030		$	10,180,741		$	4,989,161		$	4,911,748

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	63

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Liberty Senior Loan ETF						Franklin Liberty Systematic Style Premia ETF^c

	Year Ended March 31, 2020			Year Ended March 31, 2019^a			Year Ended March 31, 2020^b
Increase (decrease) in net assets:
Operations:
Net investment income	$	2,324,737		$	1,318,709		$	131,888
Net realized gain (loss)		(592,448	)		(52,149	)		1,956,418
Net change in unrealized appreciation (depreciation)		(4,015,523	)		(728,631	)		(6,861,598	)

Net increase (decrease) in net assets resulting from operations		(2,283,234	)		537,929			(4,773,292	)

Distributions to shareholders		(2,537,917	)		(1,301,317	)		(2,008	)

Capital share transactions: (Note 2)		2,489,243			57,928,461			55,723,365

Net increase (decrease) in net assets		(2,331,908	)		57,165,073			50,948,065
Net assets:
Beginning of year		57,165,073			—			—

End of year	$	54,833,165		$	57,165,073		$	50,948,065

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^bFor the period December 18, 2019 (commencement of operations) to March 31, 2020.

^cConsolidated financial statements. See Note 12.



64	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

Franklin Templeton ETF Trust (Trust) is registered under the Investment Company Act of 1940 (1940 Act) as an open-end management investment company, consisting of forty-two separate funds, four of which are included in this report (Funds) and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP). Each of the Funds are an exchange traded fund (ETF) and are actively managed, thus they are not designed to track an index. The Trust began offering shares of Franklin Liberty High Yield Corporate ETF, Franklin Liberty International Aggregate Bond ETF, Franklin Liberty Senior Loan ETF and Franklin Liberty Systematic Style Premia ETF.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

The Funds’ investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Funds calculate the net asset value (NAV) per share as of 4 p.m. Eastern time each day the New York Stock Exchange (NYSE) open for trading. Under compliance policies and procedures approved by the Trust’s Board of Trustees (the Board), the Funds’ administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The Funds may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.

ties denominated in a foreign currency are converted into their U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the date that the values of the foreign debt securities are determined.



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1. Organization and Significant Accounting Policies (continued)

an open foreign market are adjusted and reflected by the Funds for financial reporting purposes.

b. Foreign Currency Translation

c. Derivative Financial Instruments

inability of the counterparty to fulfill their obligations under the terms of the contract, the potential for an illiquid secondary market, and/ or the potential for market movements which expose the Fund to gains or losses in excess of the amounts shown in the Statements of Assets and Liabilities. Realized gain and loss and unrealized appreciation and depreciation on these contracts for the period are included in the Statements of Operations.

Termination events applicable to the counterparty include certain deteriorations in the credit quality of the counterparty. Termination events applicable to the Funds include failure of the Funds to maintain certain net asset levels and/or limit the decline in net assets over various periods of time. In the event of default or early termination, the ISDA master agreement gives the non-defaulting party the right to net and closeout all transactions traded, whether or not arising under the ISDA agreement, to one net amount payable by one counterparty to the other. Early termination by the counterparty may result in an immediate payment by the Funds of any net liability owed to that counterparty under the ISDA agreement.

The Funds entered into credit default swap contracts primarily to manage and/or gain exposure to credit risk. A credit default swap is an agreement between the Fund and a counterparty whereby the buyer of the contract receives credit protection and the seller of the contract guarantees the credit worthiness of a referenced debt obligation. These agreements may be privately negotiated in the over-the-counter market (OTC credit default swaps) or may be executed in a multilateral trade facility platform, such as a registered exchange (centrally cleared credit default swaps). The underlying referenced debt obligation may be a single issuer of corporate or sovereign debt, a credit index, a basket of issuers or indices, or a tranche of a credit index or basket of issuers or indices. In the event of a default of the underlying referenced debt obligation, the buyer is entitled to receive the notional amount of the credit default swap contract from the seller in exchange for the referenced debt obligation, a net



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settlement amount equal to the notional amount of the credit default swap less the recovery value of the referenced debt obligation, or other agreed upon amount. For centrally cleared credit default swaps, required initial margins are pledged by the Fund, and the daily change in fair value is accounted for as a variation margin payable or receivable. Over the term of the contract, the buyer pays the seller a periodic stream of payments, provided that no event of default has occurred. Such periodic payments are accrued daily as an unrealized appreciation or depreciation until the payments are made, at which time they are realized. Upfront payments and receipts are reflected in the Statements of Assets and Liabilities and represent compensating factors between stated terms of the credit default swap agreement and prevailing market conditions (credit spreads and other relevant factors). These upfront payments and receipts are amortized over the term of the contract as a realized gain or loss in the Statements of Operations.

See Note 10 regarding other derivative information.

d. Securities Purchased on a Delayed Delivery Basis

Certain or all Funds purchase securities on a delayed delivery basis, with payment and delivery scheduled for a future date. These transactions are subject to market fluctuations and are subject to the risk that the value at delivery may be more or less than the trade date purchase price. Although the Funds will generally purchase these securities with the intention of holding the securities, they may sell the securities before the settlement date. Sufficient assets have been segregated for these securities.

e. Senior Floating Rate Interests

Certain or all Funds invest in senior secured corporate loans that pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or the London InterBank Offered Rate (LIBOR). Senior secured corporate loans often require prepayment of principal from excess cash flows or at the discretion of the borrower. As a result, actual maturity may be substantially less than the stated maturity. Senior secured corporate loans in which the Funds invest are generally readily marketable, but may be subject to certain restrictions on resale. On July 27, 2017, the United Kingdom Financial Conduct Authority announced its intention to cease sustaining LIBOR after 2021. There remains uncertainty regarding the future utilization of LIBOR and the nature of any replacement rate. As such, the potential effect of a transition away from LIBOR on the Fund or the Fund’s investments that use or may use a floating rate based on LIBOR cannot yet be determined.

f. Income and Deferred Taxes



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1. Organization and Significant Accounting Policies (continued)

record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

g. Security Transactions, Investment Income, Expenses and Distributions

Security transactions are accounted for on trade date. Realized gains and losses on security transactions are determined on a specific identification basis. Interest income and estimated expenses are accrued daily. Amortization of premium and accretion of discount on debt securities are included in interest income. Distributions to shareholders are recorded on the ex-dividend date. Distributable earnings are determined according to income tax regulations (tax basis) and may differ from earnings recorded in accordance with U.S. GAAP. These differences may be permanent or temporary. Permanent differences are reclassified among capital accounts to reflect their tax character. These reclassifications have no impact on net assets or the results of operations. Temporary differences are not reclassified, as they may reverse in subsequent periods.

Common expenses incurred by the Trust are allocated among the Funds based on the ratio of net assets of each Fund to the combined net assets of the Trust. Certain Fund specific expenses are allocated directly to the Fund that incurred the expense. These expenses are paid by the Fund or by investment manager, as applicable, according to the terms of the unified management fee agreement.

h. Accounting Estimates

i. Guarantees and Indemnifications

2. Shares of Beneficial Interest



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At March 31, 2020, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin Liberty High Yield Corporate ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019^a

	Shares			Amount			Shares		Amount
Shares sold		6,900,000		$	179,541,274			400,000	$	10,035,000
Shares redeemed		(1,550,000	)		(39,801,204	)		—		—

Net increase (decrease)		5,350,000		$	139,740,070			400,000	$	10,035,000


	Franklin Liberty International Aggregate Bond ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019^a

	Shares			Amount			Shares		Amount
Shares sold		—		$	—			200,000	$	5,005,000

Net increase (decrease)		—		$	—			200,000	$	5,005,000


	Franklin Liberty Senior Loan ETF

	Year Ended March 31, 2020						Year Ended March 31, 2019^a

	Shares			Amount			Shares		Amount
Shares sold		100,000		$	2,489,243			2,300,000	$	57,928,461

Net increase (decrease)		100,000		$	2,489,243			2,300,000	$	57,928,461


	Franklin Liberty Systematic Style Premia ETF

	Year Ended March 31, 2020^b						Year Ended March 31, 2019

	Shares			Amount			Shares		Amount
Shares sold		2,200,001		$	55,723,390			—	$	—
Shares redeemed		(1	)		(25	)		—		—

Net increase (decrease)		2,200,000		$	55,723,365			—	$	—

^aFor the period May 30, 2018 (commencement of operations) to March 31, 2019.

^bFor the period December 18, 2019 (commencement of operations) to March 31, 2020.

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Templeton Investment Management Limited (FTIML)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter



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3. Transactions with Affiliates (continued)

a. Management Fees

Franklin Liberty High Yield Corporate ETF pays an investment management fee to Advisers based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.625%		Up to and including $100 million
0.500%		Over $100 million, up to and including $250 million
0.450%		Over $250 million, up to and including $7.5 billion
0.440%		Over $7.5 billion, up to and including $10 billion
0.430%		Over $10 billion, up to and including $12.5 billion
0.420%		Over $12.5 billion, up to and including $15 billion
0.400%		Over $15 billion, up to and including $17.5 billion
0.380%		Over $17.5 billion, up to and including $20 billion
0.360%		Over $20 billion, up to and including $35 billion
0.355%		Over $35 billion, up to and including $50 billion
0.350%		In excess of $50 billion

Franklin Liberty International Aggregate Bond ETF pays an investment management fee to FTIML based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.450%		Up to and including $1 billion
0.400%		Over $1 billion, up to and including $5 billion
0.350%		Over $5 billion, up to and including $10 billion
0.345%		Over $10 billion, up to and including $15 billion
0.340%		Over $15 billion, up to and including $20 billion
0.335%		In excess of $20 billion

Franklin Liberty Senior Loan ETF pays an investment management fee to Advisers based on the average daily net assets of the fund as follows:



Annualized Fee Rate		Net Assets
0.650%		Up to and including $500 million
0.550%		Over $500 million, up to and including $1 billion
0.500%		Over $1 billion, up to and including $1.5 billion
0.450%		Over $1.5 billion, up to and including $6.5 billion
0.425%		Over $6.5 billion, up to and including $11.5 billion
0.400%		Over $11.5 billion, up to and including $16.5 billion
0.390%		Over $16.5 billion, up to and including $19 billion
0.380%		Over $19 billion, up to and including $21.5 billion
0.370%		In excess of $21.5 billion

Franklin Liberty Systematic Style Premia ETF pays an investment management fees to Advisors based on a fee equal to an annual rate of 0.65% the average daily net assets of the Fund.



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For the period ended March 31, 2020, each Fund’s annualized effective investment management fee rate based on daily net assets was as follows:



		Annualized Fee Rate
Franklin Liberty High Yield Corporate ETF		0.605%
Franklin Liberty International Aggregate Bond ETF		0.450%
Franklin Liberty Senior Loan ETF		0.650%
Franklin Liberty Systematic Style Premia ETF		0.650%

Effective March 1, 2019, under a subadvisory agreement, FTIML, an affiliate of Advisers, provides subadvisory services to Franklin Liberty International Aggregate Bond ETF. The subadvisory fee is paid by Advisers based on the Fund’s average daily net assets, and is not an additional expense of the Fund.

b. Administrative Fees

Under an agreement with Advisers, and FTIML, FT Services provides administrative services to the Funds. The fee is paid by Advisers, and FTIML, based on each of the Funds’ average daily net assets, and is not an additional expense of the Funds.

c. Waiver and Expense Reimbursements

Advisers have contractually agreed in advance to waive or limit its fees and to assume as their own expense certain expenses otherwise payable by Franklin Liberty High Yield Corporate ETF and Franklin Liberty Senior Loan ETF so that the expenses (including acquired fund fees and expenses) for each of the Funds do not exceed 0.40% and 0.45%, respectively, based on the average net assets (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2019. FTIML has contractually agreed in advance to waive or limit its fees and to assume as its own expense certain expenses otherwise payable by Franklin Liberty International Aggregate Bond ETF so that the expenses (including acquired fund fees and expenses) of the Fund do not exceed 0.25% based on the average net assets (other than certain non-routine expenses or costs, including those relating to litigation, indemnification, reorganizations, and liquidations) until July 31, 2020. Prior to August 1, 2019, expenses (including acquired fund fees and expenses) for Franklin Liberty International Aggregate Bond ETF were limited to 0.35% based on the average net assets of the fund. Total expenses waived or paid are not subject to recapture subsequent to the Fund’s fiscal year end. For Franklin Liberty Systematic Style Premia ETF, the investment manager has contractually agreed to waive the management fee it receives from the Fund in an amount equal to the management fee paid by a Cayman Islands-based company that is wholly-owned by the Fund (Subsidiary). The waiver may not be terminated and will remain in effect for as long as the investment manager’s contract with the Subsidiary is in place. Additionally, the investment manager has contractually agreed to waive or assume certain expenses so that total annual Fund operating expenses (including acquired fund fees and expenses, but excluding certain non-routine expenses) for the Fund do not exceed 0.65% until July 31, 2021. Contractual fee waiver and/or expense reimbursement agreements may not be changed or terminated during the time period set forth above.



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3. Transactions with Affiliates (continued)

d. Other Affiliated Transactions

At March 31, 2020, the shares of the Funds were owned by the following entities.



Fund	Shares		Percentage of Outstanding Shares^a

Franklin Liberty High Yield Corporate ETF
Franklin Conservative Allocation Fund		675,064		11.7%
Franklin Moderate Allocation Fund		669,251		11.6%
Franklin Total Return Fund		3,830,000		66.6%

		5,174,315		89.9%


Franklin Liberty International Aggregate Bond ETF
Franklin Resources Inc.		50,000		25.0%


Franklin Liberty Senior Loan ETF
Franklin Total Return Fund		914,900		38.1%
Franklin Floating Rate Master Trust		1,093,000		45.5%

		2,007,900		83.6%


Franklin Liberty Systematic Style Premia ETF
Franklin Conservative Allocation Fund		241,375		11.0%
Franklin Moderate Allocation Fund		385,025		17.5%
Franklin Growth Allocation Fund		255,675		11.6%
Franklin Managed Income Fund		1,175,000		53.4%
Franklin LifeSmart™ 2020 – 2055 Retirement Target Funds		113,500		5.2%

		2,170,575		98.7%

^aInvestment activities of significant shareholders could have a material impact on the Funds.

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2020, the capital loss carryforwards were as follows:



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF		Franklin Liberty Systematic Style Premia ETF
Capital loss carryforwards not subject to expiration:
Long term	$	—	$	—	$	367,180	$	—
Short term		—		—		290,092		—

Total capital loss carryforwards	$	—	$	—	$	657,272	$	—

The tax character of distributions paid during the years ended March 31, 2020 and 2019, were as follows:



	Franklin Liberty High Yield Corporate ETF				Franklin Liberty International Aggregate Bond ETF

	2020		2019		2020		2019
Distributions paid from:
Ordinary income	$	3,077,201	$	501,784	$	100,249	$	86,700
Long-Term Capital Gain		68,956		—		21,190		—

Total Distributions paid	$	3,146,157	$	501,784	$	121,439	$	86,700



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	Franklin Liberty Senior Loan ETF				Franklin Liberty Systematic Style Premia ETF

	2020		2019		2020		2019
Distributions paid from:
Ordinary income	$	2,537,917	$	1,301,317	$	2,008	$	—
Long-Term Capital Gain		—		—		—		—

Total Distributions paid	$	2,537,917	$	1,301,317	$	2,008	$	—

For tax purposes, the Funds may elect to defer any portion of a Post October Capital loss to the first day of the following fiscal year. At March 31, 2020, Franklin Liberty High Yield Corporate ETF deferred Post October Capital loss of $271,097

At March 31, 2020, the cost of investments, net unrealized appreciation (depreciation) and undistributed ordinary income for income tax purposes were as follows:



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF			Franklin Liberty Senior Loan ETF			Franklin Liberty Systematic Style Premia ETF
Cost of investments	$	146,866,732	$	4,762,819		$	56,866,775		$	32,120,395

Unrealized appreciation	$	414,165	$	116,421		$	—		$	81,908
Unrealized depreciation		19,087,382		(208,679	)		(4,754,934	)		(7,019,230	)

Net unrealized appreciation (depreciation)	$	18,673,217	$	(92,258	)	$	(4,754,934	)	$	(6,937,322	)

Distributable earnings – undistributed ordinary income	$	791,086	$	78,062		$	11,229		$	3,688,495

Differences between income and/or capital gains as determined on a book basis and a tax basis are primarily due to differing treatments of bond discounts and premiums.

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2020, were as follows:



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF		Franklin Liberty Systematic Style Premia ETF
Purchases	$	199,124,714	$	3,595,425	$	31,482,587	$	46,741,402
Sales	$	62,158,927	$	3,146,310	$	28,073,873	$	12,294,222

6. Credit Risk

At March 31, 2020, Franklin Liberty High Yield ETF, Franklin Liberty International Aggregate Bond ETF and Franklin Liberty Senior Loan ETF had 96.48%, 2.69%, and 84.15%, respectively, of their portfolio invested in high yield securities, senior secured floating rate notes, or other securities rated below investment grade and unrated securities, if any. These securities may be more sensitive to economic conditions causing greater price volatility and are potentially subject to a greater risk of loss due to default than higher rated securities.

7. Global Credit Facility

The Funds, except for Franklin Liberty International Aggregate Bond Fund ETF, together with other U.S. registered and foreign investment funds (collectively, Borrowers), managed by Franklin Templeton, are borrowers in a joint syndicated senior



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7. Global Credit Facility (continued)

unsecured credit facility totaling $2 billion (Global Credit Facility) which the Funds entered into on February 8, 2019 and matures on February 7, 2020. This Global Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the ability to meet future unanticipated or unusually large redemption requests.

Under the terms of the Global Credit Facility, the Funds shall, in addition to interest charged on any borrowings made by the Funds and other costs incurred by the Funds, pay their share of fees and expenses incurred in connection with the implementation and maintenance of the Global Credit Facility, based upon their relative share of the aggregate net assets of all of the Borrowers, including an annual commitment fee of 0.15% based upon the unused portion of the Global Credit Facility. These fees are reflected in other expenses in the Statement of Operations. During the year ended March 31, 2020, the Fund did not use the Global Credit Facility.

8. Concentration of Risk

9. Novel Coronavirus Pandemic

10. Other Derivative Information

At March 31, 2020, the Funds’ investments in derivative contracts are reflected in the Statements of Assets and Liabilities as follows:



	Asset Derivatives			Liability Derivatives

	Statements of Assets and Liabilities Location	Fair Value		Statements of Assets and Liabilities Location	Fair Value
Franklin Liberty High Yield Corporate ETF

Swap Contracts	Variation margin on centrally cleared swap contracts	$	—	Variation margin on centrally cleared swap contracts	$	53,803	^a

Totals		$	—		$	53,803

Franklin Liberty International Aggregate Bond ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	99,287	Unrealized depreciation on OTC forward exchange contracts	$	36,991

Totals		$	99,287		$	36,991

Franklin Liberty Systematic Style Premia ETF

Foreign exchange contracts	Unrealized appreciation on OTC forward exchange contracts	$	1,277,127	Unrealized depreciation on OTC forward exchange contracts	$	1,699,191

Equity contracts	Variation margin on futures contracts		—	Variation margin on futures contracts		84,293	^a

Totals		$	1,277,127		$	1,783,484

^aThis amount reflects the cumulative appreciation (depreciation) of futures contracts as reported in the Statement of Investments. Only the variation margin receivable/payable



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For the year ended March 31, 2020, the effect of derivative contracts in the Funds’ Statements of Operations was as follows:



Derivative Contracts Not Accounted for as Hedging Instruments	Statements of Operations Locations	Net Realized Gain (Loss) for the Period			Statements of Operations Locations	Net Change in Unrealized Appreciation (Depreciation) for the Period
Franklin Liberty High Yield Corporate ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Swap Contracts	Swap Contracts	$	20,467		Swap Contracts	$	(513,520	)

Totals		$	20,467			$	(513,520	)

Franklin Liberty International Aggregate Bond ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Foreign exchange contracts	Foreign currency transactions	$	602		Translation of other assets and liabilities denominated in foreign currencies	$	62,296

Totals		$	602			$	62,296

Franklin Liberty Systematic Style Premia ETF
	Net realized gain (loss) from:				Net change in unrealized appreciation (depreciation) on:

Index contracts	Futures contracts	$	(2,873,377	)	Futures contracts	$	(277,388	)

Foreign exchange contracts	Forward exchange Contract		(501,235	)	Forward exchange Contract		(392,064	)

Totals		$	(3,374,612	)		$	(669,452	)

For the year ended March 31, 2020, the average month end notional amount of futures contracts and average month end contract value for forward exchange contracts were as follows:



	Franklin Liberty High Yield Corporate ETF		Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Systematic Style Premia ETF
Credit default swap contracts	$	533,077	$	—	$	—
Futures contracts	$	—	$	—	$	42,907,508
Foreign exchange contracts	$	—	$	1,241,133	$	53,210,627
Interest rate contracts	$	—	$	—	$	13,999,172

At March 31, 2020, the Funds’ OTC derivative assets and liabilities are as follows:



	Gross and Net Amounts of Assets and Liabilities Presented in the Statements of Assets and Liabilities

	Assets^a		Liabilities^a
Franklin Liberty International Aggregate Bond ETF
Foreign exchange contracts	$	99,287	$	36,991


Franklin Liberty Systematic Style Premia ETF
Foreign exchange contracts	$	1,277,127	$	1,669,191

^aAbsent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities.



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10. Other Derivative Information (continued)

At March 31, 2020, the Funds’ OTC derivative assets, which may be offset against the Funds’ OTC derivative liabilities and collateral received from the counterparty, are as follows:



			Amounts Not Offset in the Statements of Assets and Liabilities

	Gross and Net Amounts of Assets Presented in the Statements of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Received^a		Cash Collateral Received^a		Net Amount (Not less than zero)
Franklin Liberty International Aggregate Bond ETF
Counterparty
CITI	$	99,287	$	(36,991	)	$	—	$	—	$	62,296

^aIn some instances, the collateral amounts disclosed in the table above were adjusted due to the requirement to limit collateral amounts to avoid the effect of overcollateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein.



			Amounts Not Offset in the Statements of Assets and Liabilities

	Gross and Net Amounts of Assets Presented in the Statements of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Received^a		Cash Collateral Received^a		Net Amount (Not less than zero)
Franklin Liberty Systematic Style Premia ETF
Counterparty
MSCO	$	1,277,127	$	(1,277,127	)	$	—	$	—	$	—

At March 31, 2020, the Funds’ OTC derivative liabilities, which may be offset against the Funds’ OTC derivative assets and collateral pledged to the counterparty, are as follows:



			Amounts Not Offset in the Statements of Assets and Liabilities

	Gross and Net Amounts of Liabilities Presented in the Statements of Assets and Liabilities		Financial Instruments Available for Offset			Financial Instruments Collateral Pledged^a		Cash Collateral Pledged^a		Net Amount (Not less than zero)
Franklin Liberty International Aggregate Bond ETF
Counterparty
CITI	$	36,991	$	(36,991	)	$	—	$	—	$	—


Franklin Liberty Systematic Style Premia ETF
Counterparty
MSCO	$	1,669,191	$	(1,277,127	)	$	—	$	—	$	392,064



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11. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

A summary of inputs used as of March 31, 2020, in valuing the Funds’ assets and liabilities carried at fair value, is as follows:



	Level 1		Level 2		Level 3		Total

Franklin Liberty High Yield Corporate ETF

Assets:
Investments in Securities:^a
Foreign Government and Agency Securities	$	—	$	128,093,516	$	—	$	128,093,516
Short-Term Investments		—		100,000		—		100,000

Total Investments in Securities	$	—	$	128,193,516	$	—	$	128,193,516


Liabilities:
Other Financial Instruments:
Credit Default Swap Contracts	$	—	$	513,520	$	—	$	513,520


Franklin Liberty International Aggregate Bond ETF

Assets:
Investments in Securities:^a
Foreign Government and Agency Securities	$	—	$	4,570,560	$	—	$	4,570,560
Short-Term Investments		—		100,000		—		100,000

Total Investments in Securities	$	—	$	4,670,560	$	—	$	4,670,560

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	99,287	$	—	$	99,287


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	36,991	$	—	$	36,991


Franklin Liberty Senior Loan ETF

Assets:
Investments in Securities:^a
Senior Floating Rate Interests	$	—	$	46,782,658	$	—	$	46,782,658
Asset-Backed Securities		—		5,094,183		—		5,094,183
Short-Term Investments		—		235,000		—		235,000

Total Investments in Securities	$	—	$	52,111,841	$	—	$	52,111,841



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NOTES TO FINANCIAL STATEMENTS

11. Fair Value Measurements (continued)



	Level 1		Level 2		Level 3		Total

Franklin Liberty Systematic Style Premia ETF

Assets:
Investments in Securities:^a
Total Investments in Securities	$	25,183,073	$	—	$	—	$	25,183,073

Other Financial Instruments:
Forward Exchange Contracts	$	—	$	1,277,127	$	—	$	1,277,127
Futures Contracts		736,452		—		—		736,452

Total Other Financial Instruments	$	736,452	$	1,277,127	$	—	$	2,013,579


Liabilities:
Other Financial Instruments:
Forward Exchange Contracts	$	—	$	1,669,191	$	—	$	1,669,191
Futures Contracts		1,013,840		—		—		1,013,840

Total Other Financial Instruments	$	1,013,840	$	1,669,191	$	—	$	2,683,031

^aFor detailed categories, see the accompanying Statement of Investments.

^bIncludes common and convertible preferred stocks, warrants, as well as other equity investments.

12. Investments in FLSP Holdings Corporation

Franklin Liberty Systematic Style Premia ETF, (the “Fund”), invests in certain financial instruments and commodities/or commodity-linked derivative investments. The FLSP Holdings Corporation is a Cayman Islands exempted company with limited liability, is a wholly-owned subsidiary of the Fund, and is able to invest in certain financial instruments and/or commodity-linked derivative investments consistent with the investment objective of the Fund. At March 31, 2020, the Franklin Liberty Systematic Style Premia ETF investment(s) FLSP Holdings Corporation is reflected in the Fund’s Consolidated Statement of Investments. At March 31, 2020, the net assets of the FLSP Holdings Corporation were $1,847,400, representing 3.63% of the fund’s consolidated net assets. The Fund’s investment (s) in the FLSP Holdings Corporation is limited to 25% of consolidated assets.

13. New Accounting Pronouncements

14. Subsequent Events

The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.



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NOTES TO FINANCIAL STATEMENTS

Abbreviations


Selected Portfolio		Currency
FHLB	Federal Home Loan Bank Rate	AUD	Australian Dollar
NCI	National Median Cost of Funds Index	CAD	Canadian Dollar
PIK	Payment-In-Kind	DKK	Danish Krone
USD	Unified/Union School District	EUR	Euro
CAC	Cotation Assistée en Continu	HUF	Hungary
FRN	Floating Rate Note	IDR	Indonesian Rupiah
TBD	To be determined	JPY	Japanese Yen
		MXN	Mexican Peso
		USD	United States Dollar



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FRANKLIN TEMPLETON ETF TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin Liberty High Yield Corporate ETF, Franklin Liberty International Aggregate Bond ETF, Franklin Liberty Senior Loan ETF, and Franklin Liberty Systematic Style Risk Premia ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Franklin Liberty High Yield Corporate ETF, Franklin Liberty International Aggregate Bond ETF, Franklin Liberty Senior Loan ETF, and Franklin Liberty Systematic Style Risk Premia ETF (the “Funds”) as of March 31, 2020, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and each of the financial highlights for each periods indicated in the table below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2020, and the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for each of the periods indicated in the table below in conformity with accounting principles generally accepted in the United States of America.



Franklin Templeton ETF Trust	Statements of Operations	Statement of changes in net assets, and financial highlights
Franklin Liberty High Yield Corporate ETF Franklin Liberty International Aggregate Bond ETF Franklin Liberty Senior Loan ETF	For the year ended March 31, 2020	For the year ended March 31, 2020 and for the period May 30, 2018 (commencement of operations) through March 31, 2019
Franklin Liberty Systematic Style Risk Premia ETF	For the period December 18, 2019 (commencement of operations) through March 31, 2020

Basis for Opinions

We conducted our auditsof 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 March 31, 2020 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 opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 19, 2020

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.



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Tax information (unaudited)



Franklin Liberty High Yield Corporate ETF	Franklin Liberty International Aggregate Bond ETF
$68,955		$21,190



Franklin Liberty Systematic Style Premia ETF
	$47,316



Franklin Liberty High Yield Corporate ETF	Franklin Liberty International Aggregate Bond ETF
$50,686		$73,869



Franklin Liberty High Yield Corporate ETF	Franklin Liberty International Aggregate Bond ETF		Franklin Liberty Senior Loan ETF
$2,641,973		$1,579		$2,020,165

At March 31, 2020, more than 50% of the Franklin Liberty International Aggregate Bond ETF’s total assets were invested in securities of foreign issuers. In most instances, foreign taxes were withheld from income paid to the Fund on these investments. The Fund elects to treat foreign taxes paid as allowed under Section 853 of the Internal Revenue Code. This election will allow shareholders of record as of the April 2020 distribution to treat their proportionate share of foreign taxes paid by the Fund as having been paid directly by them. The shareholder shall consider these amounts as foreign taxes paid in the tax year in which they receive the Fund distribution.



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FRANKLIN TEMPLETON ETF TRUST

Board Members and Officers

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee and Trustee	Since 2016	44	Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and FlipKart Limited (2019-present) (eCommerce company); formerly, CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since January 2020	44	Fluor Corporation (construction and engineering) (2014-present), IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present) and Focus Financial Partner, LLC (financial services) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	44	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); and formerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).



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Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	49	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, President and Director, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; and formerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Interim Chief Compliance Officer	Since January 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 41 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	Vice President – AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer – Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; and formerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).



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FRANKLIN TEMPLETON ETF TRUST

Interested Board Members and Officers (continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since May 2019	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of two of the investment companies in Franklin Templeton.

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 41 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.

The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request. Shareholders may call (800) DIAL BEN/342-5236 to request the SAI.



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FRANKLIN TEMPLETON ETF TRUST

Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin Liberty Systematic Style Premia ETF

(Fund)

At an in-person meeting held on May 29, 2019 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved an investment management agreement between Franklin Advisers, Inc. (Manager) and the Trust, on behalf of the Fund (Management Agreement) for an initial two-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve the Management Agreement.

In considering the approval of the Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting, in memoranda dated February 21, 2019 and May 20, 2019 and throughout the year at meetings of the Board and its committees. The Board reviewed and considered all of the factors it deemed relevant in approving the Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services to be provided by the Manager; (ii) the costs of the services to be provided by the Manager and the profits realized/expected to be realized by the Manager and its affiliates from the relationship with the Fund; and (iii) the extent to which economies of scale may be realized as the Fund grows. The Board also reviewed and considered the form of Management Agreement and the terms of the Management Agreement which were explained at the Meeting, noting that the form of Management Agreement was substantially the same as the standard forms of investment management agreement (that include administration services) for the other actively managed exchange-traded funds that are series of the Trust.

In approving the Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of the Management Agreement are fair and reasonable and that such Management Agreement is in the interests of the Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.

NATURE, EXTENT AND QUALITY OF SERVICES. The Board reviewed and considered information regarding the

nature, extent and quality of investment management services to be provided by the Manager and its affiliates to the Fund and its shareholders. This information included, among other things, the Fund’s proposed investment goals and the Manager’s proposed investment strategies and ability to implement such investment strategies; the qualifications, background and experience of the investment personnel that will be responsible for the day-to-day portfolio management of the Fund; the Manager’s experience as the manager of other funds and accounts, including other series of the Trust and other funds in the Franklin Templeton family of funds; the Manager’s strength and reputation within the industry; the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of the Manager; and the Manager’s compliance capabilities, as demonstrated by, among other things, its policies and procedures designed to prevent violations of the Federal Securities Laws (as defined in Rule 38a-1 of the Investment Company Act of 1940). Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by the Manager and its affiliates to the Fund and its shareholders.

FUND PERFORMANCE. The Board noted that, as the Fund had not yet commenced investment operations, there was no investment performance for the Fund. The Board considered the proposed performance benchmark for the Fund and how such benchmark would be utilized to measure performance of the Manager.

COMPARATIVE FEES AND EXPENSES. The Board reviewed and considered information regarding the Fund’s proposed total expense ratio and its various components, including, as applicable, management fees; transfer agent expenses; underlying fund expenses; Rule 12b-1 and non-Rule 12b-1 service fees; and other non-management fees. The Board considered the proposed total expense ratio and, separately, the proposed contractual management fee rate, without the effect of fee waivers, if any (Management Rate) of the Fund in comparison to the median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure proposed for the Fund (Expense Group) as selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent organization. Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report (excluding the Fund), which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact



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FRANKLIN TEMPLETON ETF TRUST

SHAREHOLDER INFORMATION

that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in the Expense Group.

The Expense Group for the Fund was comprised of actively managed exchange-traded funds, which included the Fund, five other alternative multi-strategy funds, three alternative global macro funds, and five absolute-return funds. The Board noted that the proposed Management Rate and proposed total expense ratio were below the medians of its Expense Group. The Board concluded that the Management Rate to be charged to the Fund is reasonable. In doing so, the Board noted that the Fund’s proposed total expense ratio reflected a fee waiver from management.

PROFITABILITY. The Board then noted that the Manager (and its affiliates) could not report any financial results from their relationships with the Fund because the Fund has not yet commenced investment operations, and thus, the Board could not evaluate the Manager’s (or its affiliates’) profitability with respect to the Fund.

ECONOMIES OF SCALE. The Board considered the extent to which the Manager and its affiliates may realize economies of scale, if any, and whether the Fund’s proposed investment management fee structure reflects any economies of scale for the benefit of shareholders. The Board noted that the Manager (and its affiliates) could not report on any potential economies of scale at this time as the Fund had not yet commenced operations and it is not anticipated that the Fund will generate significant, if any, profit for the Manager and/or its affiliates for some time.

CONCLUSION. Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved the Management Agreement for the Fund for an initial two-year period.

Proxy Voting Policies and Procedures

copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Trust’s proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Statement of Investments

Premium/Discount Information



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To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

ANNUAL REPORT

FRANKLIN TEMPLETON

ETF TRUST

March 31, 2020

LOGO


Franklin Disruptive Commerce ETF		Franklin Intelligent Machines ETF
Franklin Genomic Advancements ETF

Franklin Templeton



Contents

Annual Report

Economic and Market Overview			2
Franklin Disruptive Commerce ETF			3
Franklin Genomic Advancements ETF			8
Franklin Intelligent Machines ETF			13
Financial Highlights and Statements of Investments			18
Financial Statements			27
Notes to Financial Statements			30
Report of Independent Registered Public Accounting Firm			36
Board Members and Officers			37
Shareholder Information			40

Visit franklintempleton.com/investor/investments-and-solutions/investment-options/etfs/ for fund updates and documents.


Not FDIC Insured		\|		May Lose Value		\|		No Bank Guarantee



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ANNUAL REPORT

Economic and Market Overview

U.S. equities, as measured by the Standard & Poor’s^® 500 Index (S&P 500^®), declined significantly during the period since the Fund’s inception on February 25, 2020, through March 31, 2020. A sharp selloff began in late February amid fears of a global economic slowdown due to the novel coronavirus (COVID-19) pandemic. Concerns about global supply chain disruptions, business and personal restrictions, and subdued consumer spending drove many investors to sell equity holdings in favor of perceived safe investments such as government bonds and cash.

U.S. economic activity weakened considerably as the COVID-19 pandemic spread across the U.S. and many state and local governments issued stay-at-home orders, which included business closures and restrictions. Weekly unemployment claims surged near period-end, reflecting layoffs in many industries, particularly retail, restaurants and hospitality. As a result, the unemployment rate jumped from a 50-year low of 3.5% in February 2020 to 4.4% at period-end, and the economy contracted in the first quarter, following an expansion that lasted more than a decade.¹

Market volatility persisted at a heightened level throughout March 2020, as social distancing measures intended to mitigate the pandemic severely weakened the economy. In an effort to boost the U.S. economy and aid businesses and individuals directly impacted by the pandemic, the federal government passed an unprecedented $2 trillion stimulus package. Furthermore, the U.S. Federal Reserve cut the federal funds target rate to a range of 0.00%–0.25% and announced sweeping quantitative easing measures aimed at stimulating lending and credit availability. Many investors were encouraged by policymakers’ swift and decisive fiscal and stimulus measures. U.S. stocks, as measured by the S&P 500, bounced from multi-year lows, but still finished the reporting period with negative returns.

1. Source: Bureau of Labor Statistics



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Franklin Disruptive Commerce ETF

This inaugural annual report for Franklin Disruptive Commerce ETF covers the period since the Fund’s inception on February 25, 2020, through March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks capital appreciation. The Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of disruptive commerce. These companies include those that are focused on or stand to benefit from electronic commerce, the sharing economy, electronic payments, significant decreases in shipping costs and other activities or developments outlined in more detail in the Prospectus.

Performance Overview

During the period from February 25, 2020, through March 31, 2020, the Fund posted cumulative total returns of -14.40% based on market price and -14.72% based on net asset value (NAV). In comparison, the Russell 3000^® Index posted a -18.62% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 5.

Investment Strategy

We use fundamental, bottom-up research analysis to identify companies positioned to capitalize on disruptive innovation or are enabling the further development of the disruptive commerce themes in the markets in which they operate. We evaluate market segments, products, services and business models position to benefit significantly from disruptive innova-


Portfolio Composition
Based on Total Net Assets as of 3/31/20

LOGO

tions in commerce relative to broad securities markets, and seek to identify the primary beneficiaries of new trends or developments in commerce. We may invest in companies in any economic sector or of any market capitalization and may invest in companies both inside and outside of the U.S. Although we search for investments across a large number of sectors, we expect to concentrate our investments in consumer discretionary-related industries.

1. Source: FactSet. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company.

The index is unmanaged and include reinvestment of any income or distributions. They do not reflect any fees, expenses or sales charges. One cannot invest directly in an index, and an index is not representative of the Fund’s portfolio.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 19.



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FRANKLIN DISRUPTIVE COMMERCE ETF

Manager’s Discussion

During the reporting period, the sectors that detracted the most from the Fund’s absolute performance were industrials, consumer discretionary and information technology (IT).²In industrials, commercial real estate analytics firm CoStar Group and ride-share application provider Uber detracted from absolute results. In consumer discretionary, online marketplace Mercado Libre and online used car retailer Carvana hurt performance. In IT, financial technology companies Mastercard, Square and Afterpay hindered performance.

In contrast, the health care sector helped absolute performance due to the contribution of telemedicine technology company Teledoc.³ Elsewhere, online pet products retailer Chewy and electronic signatures platform provider Docusign helped performance as well.

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

LOGO

Matthew J. Moberg, CPA


		Joyce Lin, CFA

		Portfolio Management Team


Top 10 Holdings

3/31/20

Company *Sector/Industry*	% of Total Net Assets
Amazon.com Inc. Internet & Direct Marketing Retail		7.0%
Alibaba Group Holding Ltd., ADR Internet & Direct Marketing Retail		6.5%
Shopify Inc., A IT Services		4.7%
Sea Ltd., ADR Entertainment		4.0%
Visa Inc., A IT Services		3.5%
Tencent Holdings Ltd. Interactive Media & Services		3.4%
Mastercard Inc., A IT Services		3.3%
Coupa Software Inc. Software		3.2%
PayPal Holdings Inc. IT Services		3.2%
MercadoLibre Inc. Internet & Direct Marketing Retail		3.2%



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CFA^® is a trademark owned by CFA Institute.

2. The industrials sector comprises aerospace and defense, air freight and logistics, professional services, and road and rail in the SOI. The consumer discretionary sector comprises diversified consumer services; internet and direct marketing retail; leisure equipment and products; specialty retail; and textiles, apparel and luxury goods in the SOI. The IT sector comprises IT services and software in the SOI.

3. The health care sector comprises health care technology in the SOI.

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

FRANKLIN DISRUPTIVE COMMERCE ETF

Performance Summary as of March 31, 2020

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/27/20), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on

market price⁴

Based on
NAV³

Based on
market price⁴

Since Inception (2/25/20)

-14.72%

-14.40%

-14.72%

-14.40%

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

See page 6 for Performance Summary footnotes.



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FRANKLIN DISRUPTIVE COMMERCE ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁵



With Fee Waiver	Without Fee Waiver
0.50%		0.77%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. The Fund’s investment strategies incorporate the identification of thematic investment opportunities and its performance may be negatively impacted if the investment manager does not correctly identify such opportunities or if the theme develops in an unexpected manner. By focusing its investments in consumer discretionary related industries, the Fund carries much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries. Companies operating within consumer discretionary related industries could be affected by, among other things, overall economic conditions, interest rates, disposable income, fluctuating consumer confidence and consumer demand. Many of these companies compete aggressively on price, potentially affecting their long run profitability. Companies within consumer discretionary related industries may have extensive online operations, which could make these companies particularly vulnerable to cyber security risk. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. As a non-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.



6	Annual Report	franklintempleton.com

FRANKLIN DISRUPTIVE COMMERCE ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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

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


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

Beginning Account Value 2/25/20¹		Ending Account Value 3/31/20		Expenses Paid During Period 2/25/20–3/31/20^2,3		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20²^,3		Net Annualized Expense Ratio³
	$1,000.00	$	852.80	$	0.44	$	1,004.30	$	0.48		0.50	%

1. 2/25/20 for Actual; 2/25/20 for Hypothetical

2. Expenses are equal to annualized expense ratio for the six-month period as indicated above—in the far right column—multipied by the simple average account value over the period indicated, and then multiplied by 183/366 to reflect the one-half year period. For Actual expenses, the multiplier is 35/366 to reflect the number of days since commencement of operations.

3. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	7

Franklin Genomic Advancements ETF

This inaugural annual report for Franklin Genomic Advancements ETF covers the period since the Fund’s inception on February 25, 2020, through March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks capital appreciation. The Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of genomic advancements. These companies are focused on, or stand to benefit from, extending and enhancing the quality of human and animal life through technological or scientific advancements in such areas as genetic engineering, gene therapy, DNA analysis and other uses outlined in more detail in the Prospectus.

Performance Overview

During the period from February 25, 2020, through March 31, 2020, the Fund posted cumulative total returns of -10.52% based on market price and -9.68% based on net asset value (NAV). In comparison, the Russell 3000^® Index posted a -18.62% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 10.

Investment Strategy

We use fundamental, bottom-up research analysis to identify companies positioned to capitalize on disruptive innovation or are enabling the further development of the genomic advancements theme in the markets in which they operate. We evaluate market segments, products, services and business models position to benefit significantly from advancements in genomics relative to broad securities

Portfolio Composition

Based on Total Net Assets as of 3/31/20

markets, and seek to identify the primary beneficiaries of new trends or developments in genomics. We may invest in companies in any economic sector or of any market capitalization and may invest in companies both inside and outside of the U.S. Although we search for investments across a large number of sectors, we expect to concentrate our investments in health care-related industries.

Manager’s Discussion

During the reporting period, the health care and information technology (IT) sectors detracted from absolute performance.² In health care, detractors included clinical research company Medpace Holdings, clinical research and health technology solutions provider IQVIA Holdings, and biopharmaceutical development technology platform company Wuxi Biologics Cayman. In IT, revenue management software company Model N hindered results.

No sectors helped absolute performance. Individual holdings that contributed included telemedicine technology company Teledoc, biopharmaceutical immunotherapy developer

1. Source: FactSet. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company.

2. The health care sector comprises biotechnology, health care equipment and supplies, health care providers and services, health care technology, life sciences tools and services, and pharmaceuticals in the SOI. The IT sector comprises semiconductors and semiconductor equipment and software.

See www.franklintempletondatasources.com for additional data provider information

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 22.



8	Annual Report	franklintempleton.com

FRANKLIN GENOMIC ADVANCEMENTS ETF

BionTech, and medical and pharmaceutical technology company Quiagen.

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

LOGO

Matthew J. Moberg, CPA


		Joyce Lin, CFA

		Portfolio Management Team

Top 10 Holdings



3/31/20

Company *Sector/Industry*	% of Total Net Assets
Wuxi Biologics Cayman Inc. Life Sciences Tools & Services		4.6%
Lonza Group AG Life Sciences Tools & Services		4.5%
Illumina Inc. Life Sciences Tools & Services		4.4%
Repligen Corp. Life Sciences Tools & Services		4.2%
QIAGEN N.V. Life Sciences Tools & Services		3.6%
Veeva Systems Inc. Health Care Technology		3.5%
Vertex Pharmaceuticals Inc. Biotechnology		3.4%
Medpace Holdings Inc. Life Sciences Tools & Services		3.2%
IQVIA Holdings Inc. Life Sciences Tools & Services		3.2%
Agilent Technologies Inc. Life Sciences Tools & Services		3.0%



franklintempleton.com	Annual Report	9

FRANKLIN GENOMIC ADVANCEMENTS ETF

Performance Summary as of March 31, 2020

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/27/20), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

Since Inception (2/25/20)

-9.68%

-10.52%

-9.68%

-10.52%

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

See page 11 for Performance Summary footnotes.



10	Annual Report	franklintempleton.com

FRANKLIN GENOMIC ADVANCEMENTS ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁵



With Fee Waiver	Without Fee Waiver
0.50%		0.77%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. The Fund’s investment strategies incorporate the identification of thematic investment opportunities and its performance may be negatively impacted if the investment manager does not correctly identify such opportunities or if the theme develops in an unexpected manner. By focusing its investments in health care related industries, the Fund carries much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries. Companies operating within health care related industries face intense competition and potentially rapid product obsolescence. These companies are also heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. These companies typically engage in significant amounts of spending on research and development, and there is no guarantee that the products or services produced by these companies will be successful, or that competitors will not develop technology that is substantially similar or superior to such companies’ technology. The field of genomic science could face increasing regulatory scrutiny in the future, which may limit the development of this technology and impede the growth of companies that develop and/or utilize this technology. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. As a non-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.



franklintempleton.com	Annual Report	11

FRANKLIN GENOMIC ADVANCEMENTS ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 2/25/20¹		Ending Account Value 3/31/20		Expenses Paid During Period 2/25/20–3/31/20^2,3		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20²^,3		Net Annualized Expense Ratio³
	$1,000.00	$	903.20	$	0.46	$	1,004.30	$	0.48		0.50	%

1. 2/25/20 for Actual; 2/25/20 for Hypothetical

3. Reflects expenses after fee waivers and expense reimbursements.



12	Annual Report	franklintempleton.com

Franklin Intelligent Machines ETF

This inaugural annual report for Franklin Intelligent Machines ETF covers the period since the Fund’s inception on February 25, 2020, through March 31, 2020.

Your Fund’s Goal and Main Investments

The Fund seeks capital appreciation. The Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of intelligent machines. These companies include those that are focused on, or stand to benefit from, the ongoing technology-driven transformation of products and processes such as software, systems, manufacturing and logistics, including through developments in artificial intelligence. More details can be found in the Prospectus.

Performance Overview

During the period from February 25, 2020, through March 31, 2020, the Fund posted cumulative total returns of -17.52% based on market price and -17.32% based on net asset value (NAV). In comparison, the Russell 3000^® Index posted a -18.62% total return for the same period.¹ You can find more of the Fund’s performance data in the Performance Summary beginning on page 15.

Investment Strategy

We use fundamental, bottom-up research analysis to identify companies positioned to capitalize on disruptive innovation in or are enabling the further development of the intelligent machines theme in the markets in which they operate. We evaluate market segments, products, services and business


Portfolio Composition

Based on Total Net Assets as of 3/31/20

LOGO

models positioned to benefit significantly from disruptive innovations in intelligent products, design, manufacturing and/or predictive maintenance relative to broad securities markets, and seek to identify the primary beneficiaries of new trends or developments in physical applications of these innovations. We may invest in companies in any economic sector or of any market capitalization and may invest in companies both inside and outside of the U.S. Although we search for investments across a large number of sectors, we expect to have significant investments in particular sectors, including technology.

1. Source: FactSet. Frank Russell Company is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell^® is a trademark of Frank Russell Company.

The dollar value, number of shares or principal amount, and names of all portfolio holdings are listed in the Fund’s Statement of Investments (SOI). The SOI begins on page 25.



franklintempleton.com	Annual Report	13

FRANKLIN INTELLIGENT MACHINES ETF

Manager’s Discussion

During the reporting period, the sectors that detracted the most from the Fund’s absolute performance included information technology (IT), industrials and health care.²

In IT, detractors included semiconductor manufacturer Infineon Technologies, logistical technology software provider Descartes Systems Group, and software company PTC. In industrials, home and business security company Allegion hurt results. In health care, sleep apnea technology treatment developer Inspire Medical Systems and robotic surgical device maker Intuitive Surgical detracted. Elsewhere, electric car maker Tesla also hurt absolute results.

No sectors contributed to absolute performance. Individual contributors included graphic processing unit designer Nvidia, drone manufacturer Aeroenvironment and digital health care company iRhythm.

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

LOGO

Matthew J. Moberg, CPA


		Joyce Lin, CFA

		Portfolio Management Team


Top 10 Holdings

3/31/20

Company *Sector/Industry*	% of Total Net Assets
Intuitive Surgical Inc. Health Care Equipment & Services		5.3%
Tesla Inc. Automobiles & Components		4.2%
Dassault Systemes Software & Services		4.2%
Apple Inc. Technology Hardware & Equipment		3.8%
ANSYS Inc. Software & Services		3.8%
Autodesk Inc. Software & Services		3.7%
iRhythm Technologies Inc. Health Care Equipment & Services		3.6%
Axon Enterprise Inc. Aerospace & Defense		3.2%
Zebra Technologies Corp., A Electronic Equipment, Instruments & Components		2.9%
NVIDIA Corp. Semiconductors & Semiconductor Equipment		2.8%

2. The IT sector comprises electronic equipment, instruments and components; semiconductors and semiconductor equipment; software; and technology hardware, storage and peripherals in the SOI. The industrials sector comprises aerospace and defense, air freight and logistics, electrical equipment, industrial conglomerates and machinery. The health care sector comprises health care equipment and supplies and health care technology in the SOI.

See www.franklintempletondatasources.com for additional data provider information



14	Annual Report	franklintempleton.com

FRANKLIN INTELLIGENT MACHINES ETF

Performance Summary as of March 31, 2020

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

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. The price used to calculate market return (Market Price) is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of the Fund did not trade in the secondary market until after the Fund’s inception, for the period from inception to the first day of secondary trading (2/27/20), the NAV of the Fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV.

Performance as of 3/31/20¹

Cumulative Total Return²

Average Annual Total Return²

Based on
NAV³

Based on
market price⁴

Based on
NAV³

Based on
market price⁴

Since Inception (2/25/20)

-17.32%

-17.52%

-17.32%

-17.52%

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

See page 16 for Performance Summary footnotes.



franklintempleton.com	Annual Report	15

FRANKLIN INTELLIGENT MACHINES ETF

PERFORMANCE SUMMARY

Total Annual Operating Expenses⁵



With Fee Waiver	Without Fee Waiver
0.50%		0.77%

All investments involve risks, including possible loss of principal. Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions. The Fund’s investment strategies incorporate the identification of thematic investment opportunities and its performance may be negatively impacted if the investment manager does not correctly identify such opportunities or if the theme develops in an unexpected manner. The Fund has significant exposure to the technology sector. Companies operating within the technology sector may be affected by worldwide technological developments, the success of their products and services (which may be outdated quickly), anticipated products or services that are delayed or cancelled, and investor perception of the company and/or its products or services. In addition, companies operating within the technology sector may develop and/or utilize artificial intelligence. Artificial intelligence technology could face increasing regulatory scrutiny in the future, which may limit the development of this technology and impede the growth of companies that develop and/or utilize this technology. Special risks are associated with foreign investing, including currency fluctuations, economic instability and political developments. As a non-diversified fund, the Fund may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. Unexpected events and their aftermaths, such as the spread of deadly diseases; natural, environmental or man-made disasters; financial, political or social disruptions; terrorism and war; and other tragedies or catastrophes, can cause investor fear and panic, which can adversely affect the economies of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen. The Fund’s prospectus also includes a description of the main investment risks.

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

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

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

4. Assumes reinvestment of distributions based on market price.



16	Annual Report	franklintempleton.com

FRANKLIN INTELLIGENT MACHINES ETF

Your Fund’s Expenses

Actual Fund Expenses

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

Hypothetical Example for Comparison with Other Funds

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


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

Beginning Account Value 2/25/20¹		Ending Account Value 3/31/20		Expenses Paid During Period 2/25/20–3/31/20^2,3		Ending Account Value 3/31/20		Expenses Paid During Period 10/1/19–3/31/20²^,3		Net Annualized Expense Ratio³
	$1,000.00	$	826.80	$	0.44	$	1,004.30	$	0.48		0.50	%

1. 2/25/20 for Actual; 2/25/20 for Hypothetical

3. Reflects expenses after fee waivers and expense reimbursements.



franklintempleton.com	Annual Report	17

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Disruptive Commerce ETF



	Year Ended March 31, 2020^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.00


Income from investment operations^b:

Net investment loss^c		(0.01	)

Net realized and unrealized gains (losses)		(3.67	)


Total from investment operations		(3.68	)


Net asset value, end of year	$	21.32


Total return^d		(14.72)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		12.59%

Expenses net of waiver and payments by affiliates		0.50%

Net investment loss		(0.32)%

Supplemental data

Net assets, end of year (000’s)		$2,132

Portfolio turnover rate^f		0.94%	^g

^aFor the period February 25, 2020 (commencement of operations) to March 31, 2020.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 0.94%.



18	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Disruptive Commerce ETF

Country

Shares

Value

Common Stocks 99.1%

Aerospace & Defense 1.0%

Kratos Defence & Security Solutions Inc.

United States

1,542

21,341

Air Freight & Logistics 0.4%

XPO Logistics Inc.

United States

169

8,239

Capital Markets 0.3%

XP Inc., A

Brazil

344

6,636

Consumer Finance 0.4%

LendingClub Corp.

United States

1,198

9,404

Diversified Consumer Services 3.3%

Bright Horizons Family Solutions Inc.

United States

161

16,422

Chegg Inc.

United States

955

34,170

New Oriental Education & Technology Group Inc., ADR

China

188

20,349

70,941

Entertainment 6.4%

Activision Blizzard Inc.

United States

420

24,982

Netflix Inc.

United States

24,783

Sea Ltd., ADR

Taiwan

1,929

85,474

135,239

Equity Real Estate Investment Trusts (REITs) 0.5%

Prologis Inc.

United States

136

10,930

Health Care Technology 2.2%

Teladoc Inc.

United States

304

47,123

Interactive Media & Services 7.5%

Facebook Inc., A

United States

396

66,053

Match Group Inc.

United States

332

21,925

Tencent Holdings Ltd.

China

1,461

71,665

159,643

Internet & Direct Marketing Retail 27.0%

Alibaba Group Holding Ltd., ADR

China

717

139,442

Amazon.com Inc.

United States

150,128

boohoo Group PLC

United Kingdom

3,191

7,549

Chewy Inc., A

United States

812

30,442

Delivery Hero SE

Germany

159

11,857

Etsy Inc.

United States

492

18,912

Fiverr International Ltd.

Israel

759

19,104

JD.com Inc., ADR

China

1,251

50,666

^a,b

Meituan Dianping, B, Reg S

China

1,908

23,053

MercadoLibre Inc.

Argentina

138

67,424

Pinduoduo Inc., ADR

China

723

26,050

Zalando SE

Germany

506

19,427

Zozo Inc.

Japan

900

12,097

576,151

IT Services 24.5%

Adyen NV, ADR

Netherlands

2,761

47,296

Afterpay Ltd.

Australia

1,055

12,140

FleetCor Technologies Inc.

United States

16,229

Jack Henry & Associates Inc.

United States

11,954

Mastercard Inc., A

United States

293

70,777

Network International Holdings Ltd.

United Arab Emirates

1,666

8,046

Okta Inc., A

United States

195

23,841

PagSeguro Digital Ltd., A

Brazil

361

6,978

PayPal Holdings Inc.

United States

714

68,358

Shopify Inc., A

Canada

238

99,229



franklintempleton.com	Annual Report	19

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Disruptive Commerce ETF (continued)



		Country		Shares		Value
	Common Stocks (continued)
	IT Services (continued)

^a	Square Inc., A		United States		639	$	33,471
^a	StoneCo. Ltd., A		Brazil		300		6,531
^a	Tyro Payments Ltd.		Australia		4,997		5,780
	Visa Inc., A		United States		468		75,404
^a	Wix.com Ltd.		Israel		356		35,892


							521,926

	Leisure Equipment & Products 0.6%
^a	Peloton Interactive Inc., A		United States		478		12,691

	Professional Services 3.2%
^a	CoStar Group Inc.		United States		86		50,500
	TransUnion		United States		265		17,538


							68,038

	Real Estate Management & Development 0.6%
^a	Redfin Corp.		United States		853		13,153

	Road & Rail 3.2%
^a	Lyft Inc., A		United States		629		16,889
^a	Uber Technologies Inc.		United States		1,834		51,205


							68,094

	Software 14.9%
^a	Avalara Inc.		United States		903		67,364
^a	Bill.Com Holdings Inc.		United States		434		14,843
^a	Coupa Software Inc.		United States		495		69,166
^a	DocuSign Inc.		United States		597		55,163
^a	Lightspeed POS Inc.		Canada		998		13,350
^a	Manhattan Associates Inc.		United States		368		18,334
^a	Q2 Holdings Inc.		United States		332		19,608
^a	salesforce.com Inc.		United States		288		41,466
^a	Zendesk Inc.		United States		300		19,203


							318,497

	Specialty Retail 1.2%
^a	Carvana Co.		United States		444		24,460

	Textiles, Apparel & Luxury Goods 1.9%
	NIKE Inc., B		United States		486		40,212

	Total Investments (Cost $2,475,790) 99.1%						2,112,718
	Other Assets, less Liabilities 0.9%						19,255

	Net Assets 100.0%					$	2,131,973

See Abbreviations on page 36.

^aNon-income producing.



20	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Genomic Advancements ETF



	Year Ended March 31, 2020^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.00


Income from investment operations^b:

Net investment loss^c		(0.01	)

Net realized and unrealized gains (losses)		(2.41	)


Total from investment operations		(2.42	)


Net asset value, end of year	$	22.58


Total return^d		(9.68)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		12.22%

Expenses net of waiver and payments by affiliates		0.50%

Net investment loss		(0.37)%

Supplemental data

Net assets, end of year (000’s)		$ 2,258

Portfolio turnover rate^f		2.20%	^g

^aFor the period February 25, 2020 (commencement of operations) to March 31, 2020.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 2.20%.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	21

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Genomic Advancements ETF



		Country		Shares		Value

	Common Stocks 99.1%
	Biotechnology 33.3%
^a	Alnylam Pharmaceuticals Inc.		United States		210	$	22,859
^a	Amicus Therapeutics Inc.		United States		2,527		23,350
^a	Arrowhead Pharmaceuticals Inc.		United States		345		9,926
^a	Beam Therapeutics Inc.		United States		509		9,162
^a	BioNTech SE, ADR		Germany		378		22,075
^a	Bluebird Bio Inc.		United States		684		31,437
^a	Cellectis SA, ADR		France		1,487		13,680
^a	CRISPR Therapeutics AG		Switzerland		1,467		62,215
^a	Editas Medicine Inc.		United States		2,221		44,042
^a	Exact Sciences Corp.		United States		308		17,864
^a	Fate Therapeutics Inc.		United States		788		17,501
^a	Homology Medicines Inc.		United States		1,550		24,087
^a	Intellia Therapeutics Inc.		United States		4,049		49,519
^a	Ionis Pharmaceuticals Inc.		United States		888		41,985
^a	Iovance Biotherapeutics Inc.		United States		739		22,122
^a	Krystal Biotech Inc.		United States		452		19,544
^a	Natera Inc.		United States		1,431		42,730
^a	Precision BioSciences Inc.		United States		3,088		18,621
^a	Prevail Therapeutics Inc.		United States		1,536		18,724
^a	REGENXBIO Inc.		United States		262		8,484
^a	Rocket Pharmaceuticals Inc.		United States		1,226		17,103
^a	Sarepta Therapeutics Inc.		United States		109		10,662
^a	Ultragenyx Pharmaceutical Inc.		United States		223		9,908
^a	uniQure N.V.		Netherlands		1,394		66,145
^a	Veracyte Inc.		United States		2,140		52,023
^a	Vertex Pharmaceuticals Inc.		United States		321		76,382


							752,150

	Health Care Equipment & Supplies 1.1%
^a	CryoPort Inc.		United States		1,475		25,178

	Health Care Providers & Services 1.9%
^a	Guardant Health Inc.		United States		610		42,456

	Health Care Technology 7.7%
^a	Livongo Health Inc.		United States		978		27,903
^a	Teladoc Inc.		United States		426		66,034
^a	Veeva Systems Inc.		United States		506		79,123


							173,060

	Life Sciences Tools & Services 48.1%
^a	10X Genomics Inc., A		United States		331		20,628
	Agilent Technologies Inc.		United States		956		68,468
	Bruker Corp.		United States		1,077		38,621
^a	Charles River Laboratories International Inc.		United States		463		58,435
^a	Compugen Ltd.		Israel		3,208		23,878
^a	Evotec SE		Germany		2,989		67,004
^a	ICON PLC		Ireland		311		42,296
^a	Illumina Inc.		United States		362		98,869
^a	IQVIA Holdings Inc.		United States		666		71,835
	Lonza Group AG		Switzerland		242		100,597
^a	Medpace Holdings Inc.		United States		990		72,646
^a	NanoString Technologies Inc.		United States		759		18,254
^a	Pacific Biosciences of California Inc.		United States		7,364		22,534
^a	PRA Health Sciences Inc.		United States		456		37,866
^a	QIAGEN N.V.		Netherlands		1,958		81,453
^a	Repligen Corp.		United States		994		95,961
	Thermo Fisher Scientific Inc.		United States		218		61,825
^a	Wuxi Biologics Cayman Inc.		China		8,000		103,730


							1,084,900



22	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Genomic Advancements ETF (continued)



		Country		Shares		Value

	Pharmaceuticals 3.6%
	Bayer AG		Germany		304	$	17,629
^a	Catalent Inc.		United States		1,242		64,522


							82,151

	Semiconductors & Semiconductor Equipment 1.9%
	NVIDIA Corp.		United States		166		43,758

	Software 1.5%
^a	Model N Inc.		United States		1,512		33,581

	Total Investments (Cost $2,476,736) 99.1%						2,237,234
	Other Assets, less Liabilities 0.9%						20,954

	Net Assets 100.0%					$	2,258,188

See Abbreviations on page 36.

^aNon-income producing.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	23

FRANKLIN TEMPLETON ETF TRUST

Financial Highlights

Franklin Intelligent Machines ETF



	Year Ended March 31, 2020^a

Per share operating performance (for a share outstanding throughout the year)

Net asset value, beginning of year	$	25.00


Income from investment operations^b:

Net investment income^c		—

Net realized and unrealized gains (losses)		(4.33	)


Total from investment operations		(4.33	)


Net asset value, end of year	$	20.67


Total return^d		(17.32)%

Ratios to average net assets^e

Expenses before waiver and payments by affiliates		12.91%

Expenses net of waiver and payments by affiliates		0.50%

Net investment income		0.20%

Supplemental data

Net assets, end of year (000’s)		$2,067

Portfolio turnover rate^f		—%	^g

^aFor the period February 25, 2020 (commencement of operations) to March 31, 2020.

^cBased on average daily shares outstanding.

^eRatios are annualized for periods less than one year.

fPortfolio turnover rate includes portfolio transactions that are executed as a result of the Fund offering and redeeming Creation Units solely for cash (“Cash creations”).

^gPortfolio turnover rate excluding cash creations for the year ended March 31, 2020 was as follows: 0.0%.



24	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

Statement of Investments, March 31, 2020

Franklin Intelligent Machines ETF



		Country		Shares		Value

	Common Stocks 99.7%
	Aerospace & Defense 6.4%
^a	Aerovironment Inc.		United States		382	$	23,287
^a	Axon Enterprise Inc.		United States		934		66,099
	Hexcel Corp.		United States		354		13,165
^a	Kratos Defence & Security Solutions Inc.		United States		1,543		21,355
	United Technologies Corp.		United States		90		8,490


							132,396

	Air Freight & Logistics 0.7%
^a	XPO Logistics Inc.		United States		300		14,625

	Auto Components 0.7%
	Aptiv PLC		United States		308		15,166

	Automobiles 4.3%
^a	Tesla Inc.		United States		167		87,508

	Building Products 2.6%
	Allegion PLC		United States		404		37,176
	Johnson Controls International PLC		United States		635		17,120


							54,296

	Electrical Equipment 4.6%
	Eaton Corp., PLC		United States		517		40,166
	Emerson Electric Co.		United States		187		8,911
	Rockwell Automation Inc.		United States		64		9,658
	Schneider Electric SE		France		234		20,176
^a	Sensata Technologies Holding PLC		United States		579		16,750


							95,661

	Electronic Equipment, Instruments & Components 9.5%
	Amphenol Corp. , A		United States		261		19,022
	Cognex Corp.		United States		267		11,273
	Keyence Corp.		Japan		142		45,814
^a	Keysight Technologies Inc.		United States		512		42,844
	TE Connectivity Ltd.		Switzerland		289		18,201
^a	Zebra Technologies Corp., A		United States		321		58,935


							196,089

	Health Care Equipment & Supplies 18.7%
^a	Align Technology Inc.		United States		109		18,961
^a	DexCom Inc.		United States		179		48,199
^a	Insulet Corp.		United States		277		45,893
^a	Intuitive Surgical Inc.		United States		223		110,432
^a	iRhythm Technologies Inc.		United States		924		75,167
^a	Nevro Corp.		United States		359		35,893
	ResMed Inc.		United States		150		22,094
^a	SmileDirectClub Inc., A		United States		2,030		9,480
	Stryker Corp.		United States		126		20,978


							387,097

	Health Care Technology 2.7%
^a	Inspire Medical Systems Inc.		United States		927		55,879

	Industrial Conglomerates 1.5%
	Honeywell International Inc.		United States		74		9,900
	Roper Technologies Inc.		United States		34		10,602
	Siemens AG		Germany		115		9,775


							30,277



franklintempleton.com	Annual Report	25

FRANKLIN TEMPLETON ETF TRUST

STATEMENT OF INVESTMENTS

Franklin Intelligent Machines ETF (continued)



		Country		Shares		Value

	Machinery 3.7%
	Fortive Corp.		United States		176	$	9,713
	Harmonic Drive Systems Inc.		Japan		300		13,130
^a	Proto Labs Inc.		United States		558		42,481
	YASKAWA Electric Corp.		Japan		400		11,027


							76,351

	Semiconductors & Semiconductor Equipment 16.0%
	Analog Devices Inc.		United States		217		19,454
	Applied Materials Inc.		United States		417		19,107
	ASML Holding N.V.		Netherlands		87		22,763
	Brooks Automation Inc.		United States		714		21,777
	Entegris Inc.		United States		471		21,087
	Infineon Technologies AG		Germany		3,321		48,939
	KLA Corp.		United States		169		24,292
	Lam Research Corp.		United States		84		20,160
	MKS Instruments Inc.		United States		121		9,855
	NVIDIA Corp.		United States		220		57,992
	Teradyne Inc.		United States		813		44,040
	Texas Instruments Inc.		United States		210		20,985


							330,451

	Software 23.9%
^a	Altair Engineering Inc.		United States		1,435		38,028
^a	ANSYS Inc.		United States		340		79,040
^a	Aspen Technology Inc.		United States		227		21,581
^a	Autodesk Inc.		United States		484		75,552
^a	Cadence Design Systems Inc.		United States		654		43,190
	Dassault Systemes		France		582		86,211
^a	PTC Inc.		United States		826		50,560
^a	Synopsys Inc.		United States		351		45,205
^a	The Descartes Systems Group Inc.		Canada		1,624		55,234


							494,601

	Technology Hardware, Storage & Peripherals 4.4%
	Apple Inc.		United States		312		79,339
^a	Stratasys Ltd.		United States		716		11,420


							90,759

	Total Investments (Cost $2,494,762) 99.7%						2,061,156
	Other Assets, less Liabilities 0.3%						5,672

	Net Assets 100.0%					$	2,066,828

See Abbreviations on page 36.

^aNon-income producing.



26	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Assets and Liabilities

March 31, 2020



	Franklin Disruptive Commerce ETF			Franklin Genomic Advancements ETF			Franklin Intelligent Machines ETF
Assets:
Investments in securities:
Cost – Unaffiliated issuers	$	2,475,790		$	2,476,736		$	2,494,762

Value – Unaffiliated issuers	$	2,112,718		$	2,237,234		$	2,061,156
Cash		22,837			24,603			8,852
Receivables:
Dividends		254			220			629
Affiliates		21,676			21,643			21,702

Total assets		2,157,485			2,283,700			2,092,339

Liabilities:
Payables:
Transfer agent fees		1,492			1,492			1,492
Trustees’ fees and expenses		216			216			216
Custodian fees		127			127			127
Professional fees		21,478			21,478			21,478
Reports to shareholders		574			574			574
Registration and filing fees		478			478			477
Accrued expenses and other liabilities		1,147			1,147			1,147

Total liabilities		25,512			25,512			25,511

Net assets, at value	$	2,131,973		$	2,258,188		$	2,066,828

Net assets consist of:
Paid-in capital	$	2,499,277		$	2,499,274		$	2,500,000
Total distributable earnings (loss)		(367,304	)		(241,086	)		(433,172	)

Net assets, at value	$	2,131,973		$	2,258,188		$	2,066,828

Shares outstanding		100,000			100,000			100,000

Net asset value per share	$	21.32		$	22.58		$	20.67



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	27

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Operations

for the year ended March 31, 2020



	Franklin Disruptive Commerce ETF			Franklin Genomic Advancements ETF			Franklin Intelligent Machines ETF
Investment income:
Dividends: (net of foreign taxes)^a
Unaffiliated issuers	$	383		$	290		$	1,440

Total investment income		383			290			1,440

Expenses:
Management fees (Note 3a)		1,055			1,088			1,028
Transfer agent fees		1,492			1,492			1,492
Custodian fees		127			127			127
Reports to shareholders		574			574			574
Registration and filing fees		478			478			478
Professional fees		21,478			21,478			21,478
Trustee fees and expenses (Note 3a)		216			215			215
Other		1,147			1,147			1,147

Total expenses		26,567			26,599			26,539
Expenses waived/paid by affiliates (Note 3c)		(25,512	)		(25,511	)		(25,512	)

Net expenses		1,055			1,088			1,027

Net investment income		(672	)		(798	)		413

Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments:
Unaffiliated issuers		(4,232	)		(1,584	)		—
Foreign currency transactions		(51	)		72			19

Net realized gain (loss)		(4,283	)		(1,512	)		19

Net change in unrealized appreciation (depreciation) on:
Investments:
Unaffiliated issuers		(363,072	)		(239,502	)		(433,606	)
Translation of other assets and liabilities denominated in foreign currencies		—			—			2

Net change in unrealized appreciation (depreciation)		(363,072	)		(239,502	)		(433,604	)

Net realized and unrealized gain (loss)		(367,355	)		(241,014	)		(433,585	)

Net increase (decrease) in net assets resulting from operations	$	(368,027	)	$	(241,812	)	$	(433,172	)


^aForeign taxes withheld on dividends	$15	$—	$25



28	Annual Report \| The accompanying notes are an integral part of these financial statements.	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

FINANCIAL STATEMENTS

Statements of Changes in Net Assets



	Franklin Disruptive Commerce ETF			Franklin Genomic Advancements ETF			Franklin Intelligent Machines ETF

	Year Ended March 31, 2020^a
Increase (decrease) in net assets:
Operations:
Net investment income	$	(672	)	$	(798	)	$	413
Net realized gain (loss)		(4,283	)		(1,512	)		19
Net change in unrealized appreciation (depreciation)		(363,072	)		(239,502	)		(433,604	)

Net increase (decrease) in net assets resulting from operations (Note 1e)		(368,027	)		(241,812	)		(433,172	)

Capital share transactions: (Note 2)		2,500,000			2,500,000			2,500,000

Net increase (decrease) in net assets		2,131,973			2,258,188			2,066,828
Net assets:
Beginning of year		—			—			—

End of year (Note 1e)	$	2,131,973		$	2,258,188		$	2,066,828

^aFor the period February 25, 2020 (commencement of operations) to March 31, 2020.



franklintempleton.com	The accompanying notes are an integral part of these financial statements. \| Annual Report	29

FRANKLIN TEMPLETON ETF TRUST

Notes to Financial Statements

1. Organization and Significant Accounting Policies

The Funds commenced operations on February 25, 2020.

The following summarizes the Funds’ significant accounting policies.

a. Financial Instrument Valuation

Equity securities listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. London time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.

Investments in open-end mutual funds are valued at the closing NAV.



30	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

b. Foreign Currency Translation

c. Income and Deferred Taxes

to apply, certain or all Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.

d. Security Transactions, Investment Income, Expenses and Distributions

e. Accounting Estimates



franklintempleton.com	Annual Report	31

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

1. Organization and Significant Accounting Policies (continued)

f. Guarantees and Indemnifications

2. Shares of Beneficial Interest

Creation Unit. The market price of the Funds’ shares will be based on the price in the secondary market which may be at, above or below the most recent NAV. Creation Units may be issued and redeemed in exchange for a designated portfolio of securities and/or cash (which may include cash in lieu of certain securities).

At March 31, 2020, there were an unlimited number of shares authorized (without par value). Transactions in the Funds’ shares were as follows:



	Franklin Disruptive Commerce ETF						Franklin Genomic Advancements ETF

	Year Ended March 31, 2020^a						Year Ended March 31, 2020^a

	Shares			Amount			Shares			Amount
Shares sold		100,001		$	2,500,025			100,001		$	2,500,025
Shares redeemed		(1	)		(25	)		(1	)		(25	)

Net increase (decrease)		100,000		$	2,500,000			100,000		$	2,500,000



	Franklin Intelligent Machines ETF

	Year Ended March 31, 2020^a

	Shares			Amount
Shares sold		100,001		$	2,500,025
Shares redeemed		(1	)		(25	)

Net increase (decrease)		100,000		$	2,500,000

^a For the period February 25, 2020 (commencement of operations) to March 31, 2020.



32	Annual Report	franklintempleton.com

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates



Subsidiary		Affiliation
Franklin Advisers, Inc. (Advisers)		Investment manager
Franklin Advisory Services, LLC (FASL)		Investment manager
Franklin Templeton Services, LLC (FT Services)		Administrative manager
Franklin Templeton Distributors, Inc. (Distributors)		Principal underwriter

a. Management Fees

The Funds pay a unified management fee to Advisers whereby Advisers has agreed to reimburse the Funds’ acquired fund fee and expenses (if any) and pay all of the ordinary operating expenses of the Funds, including custody, transfer agency, and Trustee fees and expenses, among others, but excluding payments under the Funds’ Rule 12b-1 plan (if any), brokerage expenses (including any costs incidental to transactions in portfolio securities or instruments), taxes, interest (including borrowing costs and dividend expenses on securities sold short and overdraft charges), litigation expenses (including litigation to which the Trust or a Fund may be a party and indemnification of the Trustees and officers with respect thereto), and other nonroutine or extraordinary expenses. The fees are based on the average daily net assets of each of the Funds as follows:



	Annualized Fee Rate
Franklin Disruptive Commerce ETF		0.50%
Franklin Genomic Advancements ETF		0.50%
Franklin Intelligent Machines ETF		0.50%

b. Administrative Fees

c. Waiver and Expense Reimbursements

The Adviser has contractually agreed to waive or assume certain expenses so that total annual Fund operating

expenses (including acquired fund fees and expenses, but excluding certain non-routine expenses) for the Fund do not exceed

0.50% until July 31, 2021. Contractual fee waiver and/or expense reimbursement agreements may not be changed or terminated during the time period set forth above.

d. Investments in Affiliated Management Investment Companies

Certain or all Funds invest in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. Management fees paid by the Funds are waived on assets invested in the affiliated management investment companies, as noted in the Statements of Operations, in an amount not to exceed the management and administrative fees paid directly or indirectly by each affiliate. During the period ended March 31, 2020, investments in affiliated management investment companies were as follows:



franklintempleton.com	Annual Report	33

FRANKLIN TEMPLETON ETF TRUST

NOTES TO FINANCIAL STATEMENTS

3. Transactions with Affiliates (continued)

e. Other Affiliated Transactions

At March 31, 2020, the shares of Franklin Disruptive Commerce ETF, Franklin Genomic Advancements ETF and Franklin Intelligent Machines ETF were owned by the following entities:



Fund	Shares		Percentage of Outstanding Shares^a
Franklin Disruptive Commerce ETF
Franklin Resources Inc.		70,000.00		70.0%
Franklin Genomic Advancements ETF
Franklin Resources Inc.		75,000.00		75.0%
Franklin Intelligent Machines ETF
Franklin Resources Inc.		85,000.00		85.0%

^aInvestment activities of significant shareholders could have a material impact on the Funds.

4. Income Taxes

For tax purposes, capital losses may be carried over to offset future capital gains, if any. At March 31, 2020, the capital loss carryforwards were as follows:



	Franklin Disruptive Commerce ETF		Franklin Genomic Advancements ETF		Franklin Intelligent Machines ETF
Capital loss carryforwards not subject to expiration:
Short term	$	4,232	$	1,584	$	—

Total capital loss carryforwards	$	4,232	$	1,584	$	—

At March 31, 2020, the cost of investments and net unrealized appreciation (depreciation) for income tax purposes were as follows:



	Franklin Disruptive Commerce ETF			Franklin Genomic Advancements ETF			Franklin Intelligent Machines ETF
Cost of investments	$	2,475,790		$	2,476,736		$	2,494,762

Unrealized appreciation	$	26,122		$	60,259		$	588
Unrealized depreciation		(389,194	)		(299,761	)		(434,194	)

Net unrealized appreciation (depreciation)	$	(363,072	)	$	(239,502	)	$	(433,606	)

Distributable earnings—undistributed ordinary income	$	—		$	—		$	432

5. Investment Transactions

Purchases and sales of investments (excluding short term securities and in-kind transactions, if any) for the year ended March 31, 2020, were as follows:



	Franklin Disruptive Commerce ETF		Franklin Genomic Advancements ETF		Franklin Intelligent Machines ETF
Purchases	$	2,500,926	$	2,530,160	$	2,494,762
Sales	$	20,903	$	51,841	$	—



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NOTES TO FINANCIAL STATEMENTS

In-kind transactions associated with creation and redemptions for the year ended March 31, 2020, were as follows:



	Franklin Disruptive Commerce ETF		Franklin Genomic Advancements ETF		Franklin Intelligent Machines ETF
Cost of Securities Received	$	2,188,098	$	2,206,196	$	2,270,560
Value of Securities Delivered^a	$	—	$	—	$	—

aRealized gains and losses from in-kind redemptions, as shown on the Statement of Operations, are not recognized by the Funds for tax purposes.

6. Concentration of Risk

7. Novel Coronavirus Pandemic

8. Fair Value Measurements

•

Level 1 – quoted prices in active markets for identical financial instruments

•

Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.)

•

Level 3 – significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of financial instruments)

The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.

At March 31, 2020, all of the Funds’ investments in financial instruments carried at fair value were valued using Level 1 inputs.

9. Subsequent Events

The Funds have evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure.

Abbreviations


Selected Portfolio
ADR		American Depositary Receipt
REIT		Real Estate Investment Trust



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FRANKLIN TEMPLETON ETF TRUST

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of Franklin Templeton ETF Trust and Shareholders of Franklin Disruptive Commerce ETF, Franklin Genomic Advancements ETF, and Franklin Intelligent Machines ETF

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities, including the statements of investments, of Shareholders of Franklin Disruptive Commerce ETF, Franklin Genomic Advancements ETF, and Franklin Intelligent Machines ETF (the “Funds”) as of March 31, 2020, the related statements of operations and of changes in net assets, including the related notes, and the financial highlights for the period February 25, 2020 (commencement of operations) through March 31, 2020. In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2020, and the results of each of their operations, the changes in each of their net assets, and each of the financial highlights for the period February 25, 2020 (commencement of operations) through March 31, 2020 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinions

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 March 31, 2020 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinions.

PricewaterhouseCoopers LLP

San Francisco, California

May 19, 2020

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.



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Board Members and Officers

Independent Board Members



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Rohit Bhagat (1964) One Franklin Parkway San Mateo, CA 94403-1906	Lead Independent Trustee and Trustee	Since 2016	44	Axis Bank (2013-present), AssetMark Financial Holdings, Inc. (investment solutions) (2018-present) and FlipKart Limited (2019-present) (eCommerce company); formerly, CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).

Principal Occupation During at Least the Past 5 Years:
Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015-present); and formerly, Chairman, Asia Pacific, BlackRock (2009-2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).

Deborah D. McWhinney (1955) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since January 2020	44	Fluor Corporation (construction and engineering) (2014-present), IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present) and Focus Financial Partner, LLC (financial services) (2018-present).

Principal Occupation During at Least the Past 5 Years:
Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011-2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi’s Personal Banking and Wealth Management (2009-2011).

Anantha K. Pradeep (1963) One Franklin Parkway San Mateo, CA 94403-1906	Trustee	Since 2016	44	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009-present); and formerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).



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Interested Board Members and Officers



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

**Jennifer M. Johnson (1964) One Franklin Parkway San Mateo, CA 94403-1906	Trustee and Chairperson of the Board	Since 2016	49	None

Principal Occupation During at Least the Past 5 Years:
Chief Executive Officer, President and Director, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of four of the investment companies in Franklin Templeton; and formerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).

Alison E. Baur (1964) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Breda M. Beckerle (1958) 280 Park Avenue New York, NY 10017	Interim Chief Compliance Officer	Since January 2020	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Chief Compliance Officer, Fiduciary Investment Management International, Inc., Franklin Advisers, Inc., Franklin Advisory Services, LLC, Franklin Mutual Advisers, LLC, Franklin Templeton Institutional, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Steven J. Gray (1955) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Matthew T. Hinkle (1971) One Franklin Parkway San Mateo, CA 94403-1906	Chief Executive Officer – Finance and Administration	Since 2017	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Vice President, Franklin Templeton Services, LLC; officer of 41 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).

Robert Lim (1948) One Franklin Parkway San Mateo, CA 94403-1906	Vice President – AML Compliance	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Vice President, Franklin Templeton Companies, LLC; Chief Compliance Officer, Franklin Templeton Distributors, Inc. and Franklin Templeton Investor Services, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Patrick O’Connor (1967) One Franklin Parkway San Mateo, CA 94403-1906	President and Chief Executive Officer – Investment Management	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of two of the investment companies in Franklin Templeton; and formerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).



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Interested Board Members and Officers (continued)



Name, Year of Birth and Address	Position	Length of Time Served	Number of Portfolios in Fund Complex Overseen by Board Member*	Other Directorships Held During at Least the Past 5 Years

Vivek Pai (1970) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Treasurer, Chief Financial Officer and Chief Accounting Officer	Since May 2019	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Treasurer, U.S. Fund Administration & Reporting and officer of two of the investment companies in Franklin Templeton.

Navid J. Tofigh (1972) One Franklin Parkway San Mateo, CA 94403-1906	Vice President and Secretary	Since 2015	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Associate General Counsel and officer of 41 of the investment companies in Franklin Templeton.

Craig S. Tyle (1960) One Franklin Parkway San Mateo, CA 94403-1906	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 41 of the investment companies in Franklin Templeton.

Lori A. Weber (1964) 300 S.E. 2nd Street Fort Lauderdale, FL 33301-1923	Vice President	Since 2016	Not Applicable	Not Applicable

Principal Occupation During at Least the Past 5 Years:
Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 41 of the investment companies in Franklin Templeton.

Note 2: Officer information is current as of the date of this report. It is possible that after this date, information about officers may change.

The Statement of Additional Information (SAI) includes additional information about the board members and is available, without charge, upon request.

Shareholders may call (800) DIAL BEN/342-5236 to request the SAI.



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Shareholder Information

Board Approval of Investment Management Agreements

FRANKLIN TEMPLETON ETF TRUST

Franklin Disruptive Commerce ETF

Franklin Genomic Advancements ETF

Franklin Intelligent Machines ETF

(each a Fund)

At an in-person meeting held on November 21, 2019 (Meeting), the Board of Trustees (Board) of Franklin Templeton ETF Trust (Trust), including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act of 1940 (Independent Trustees), reviewed and approved an investment management agreement between Franklin Advisers, Inc. (Manager) and the Trust, on behalf of each Fund (each a Management Agreement) for an initial two-year period. The Independent Trustees received advice from and met separately with Independent Trustee counsel in considering whether to approve each Management Agreement. Although the Management Agreements for the Funds were considered at the same Board meeting, the Board considered the information provided to it about the Funds together and with respect to each Fund separately as the Board deemed appropriate.

In considering the approval of each Management Agreement, the Board reviewed and considered information provided by the Manager at the Meeting and throughout the year at meetings of the Board and its committees. The Board reviewed and considered all of the factors it deemed relevant in approving each Management Agreement, including, but not limited to: (i) the nature, extent and quality of the services to be provided by the Manager; (ii) the costs of the services to be provided by the Manager; and (iii) the extent to which economies of scale may be realized as each Fund grows. The Board also reviewed and considered the form of Management Agreement and the terms of each Management Agreement which were explained at the Meeting, noting that the form of Management Agreement was substantially the same as the standard forms of investment management agreement (that include administration services) for the other funds in the Franklin Templeton family of funds, including other series of the Trust.

In approving each Management Agreement, the Board, including a majority of the Independent Trustees, determined that the terms of each proposed Management Agreement are fair and reasonable and that such Management Agreement is

in the best interests of the respective Fund and its shareholders. While attention was given to all information furnished, the following discusses some primary factors relevant to the Board’s determination.

Nature, Extent and Quality of Services

The Board reviewed and considered information regarding the nature, extent and quality of investment management services to be provided by the Manager and its affiliates to each Fund and its shareholders. This information included, among other things, each Fund’s proposed investment strategies and the ability of the Manager to implement such investment strategies; the qualifications, background and experience of the investment personnel that will be responsible for the day-to-day portfolio management of each Fund; the Manager’s experience as the manager of other funds and accounts, including other series of the Trust and other funds in the Franklin Templeton family of funds; the Manager’s strength and reputation within the industry; the personnel, operations, financial condition, and investment management capabilities, methodologies and resources of the Manager; and the Manager’s compliance capabilities, as demonstrated by, among other things, its policies and procedures reasonably designed to prevent violations of the Federal Securities Laws (as defined in Rule 38a-1 of the Investment Company Act of 1940). Following consideration of such information, the Board was satisfied with the nature, extent and quality of services to be provided by the Manager and its affiliates to each Fund and its shareholders.

Fund Performance

The Board noted that, as each Fund had not yet commenced investment operations, there was no investment performance for the Funds. The Board also considered the proposed performance benchmark for each Fund and how such benchmark would be utilized to measure performance of the Manager.

Comparative Fees and Expenses

The Board reviewed and considered information regarding each Fund’s proposed total expense ratio and its various components, including, as applicable, management fees; transfer agent expenses; underlying fund expenses; Rule 12b-1 and non-Rule 12b-1 service fees; and other non-management fees. The Board considered the proposed total expense ratio and, separately, the proposed contractual management fee rate, without the effect of fee waivers, if any (Management Rate) of each Fund in comparison to the



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median expense ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with a similar expense structure as the Fund (Expense Group) as selected by Broadridge Financial Solutions, Inc. (Broadridge), an independent organization. Broadridge fee and expense data is based upon information taken from each fund’s most recent annual report (excluding each Fund), which reflects historical asset levels that may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.

The Expense Group for the Franklin Disruptive Commerce ETF was comprised of institutional funds and actively managed exchange-traded funds, which included the Fund and three financial services funds. The Expense Group for the Franklin Genomic Advancements ETF was comprised of institutional funds and actively managed exchange-traded funds, which included the Fund and two other global health/biotechnology funds. The Expense Group for the Franklin Intelligent Machines ETF was comprised of institutional funds and actively managed exchange-traded funds, which included the Fund, one global health/biotechnology fund and two science & technology funds. The Board noted that the proposed Management Rate and proposed total expense ratio for each Fund were below the medians of its respective Expense Group. The Board concluded that the Management Rate to be charged to each Fund is reasonable. In doing so, the Board noted the small size of each Fund’s Expense Group and that each Fund’s proposed total expense ratio reflected a fee waiver from management.

Profitability

The Board then noted that the Manager (and its affiliates) could not report any financial results from their relationships with any Fund because the Funds have not yet commenced investment operations, and thus, the Board could not evaluate the Manager’s (or its affiliates’) profitability with respect to the Funds.

Economies of Scale

The Board reviewed and considered the extent to which the Manager may realize economies of scale, if any, as each Fund grows larger and whether each Fund’s management fee structure reflects any economies of scale for the benefit of shareholders. With respect to possible economies of scale in the future, the Board noted that it is not anticipated that any Fund will generate significant, if any, profit for the Manager and/or its affiliates for some time.

Conclusion

Based on its review, consideration and evaluation of all factors it believed relevant, including the above-described factors and conclusions, the Board unanimously approved each Management Agreement for the respective Fund for an initial two-year period.

Proxy Voting Policies and Procedures

The Trust’s investment manager has established Proxy Voting Policies and Procedures (Policies) that the Trust uses to determine how to vote proxies relating to portfolio securities. Shareholders may view the Trust’s complete Policies online at libertyshares.com. Alternatively, shareholders may request copies of the Policies free of charge by calling the Proxy Group collect at (954) 527-7678 or by sending a written request to: Franklin Templeton Companies, LLC, 300 S.E. 2nd Street, Fort Lauderdale, FL 33301, Attention: Proxy Group. Copies of the Trust’s proxy voting records are also made available online at franklintempleton.com and posted on the U.S. Securities and Exchange Commission’s website at sec.gov and reflect the most recent 12-month period ended June 30.

Quarterly Statement of Investments



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Premium/Discount Information



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To help ensure we provide you with quality service, all calls to and from our service areas are monitored and/or recorded.

Item 2.

Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3.

Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Rohit Baghat and he is “independent” as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.

(a) Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $914,721 for the fiscal year ended March 31, 2020 and $827,925 for the fiscal year ended March 31, 2019.

(b) Audit-Related Fees

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of Item 4.

There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.

There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $232,351 for the fiscal year ended March 31, 2020 and $204,500 for the fiscal year ended March 31, 2019. The services for which these fees were paid included tax compliance services related to year-end, professional fees in connection with tax treatment of equipment lease transactions, professional fees in connection with an Indonesia withholding tax refund claim and tax consulting services related to the operating agreement and term sheet for the launch of a new fund.

(d) All Other Fees

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $1,038 for the fiscal year ended March 31, 2020 and $0 for the fiscal year ended March 31, 2019. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.

The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $208,155 for the fiscal year ended March 31, 2020 and $66,500 for the fiscal year ended March 31, 2019. The services for which these fees were paid included compliance examination for Investment Advisor Act rule 204-2 and 206(4)-2, professional fees in connection with determining the feasibility of a U.S. direct lending structure, valuation services related to a fair value engagement, the issuance of an Auditor’s Certificate for South Korean regulatory shareholders disclosures, account maintenance project and assets under management certification.

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:

(i) pre-approval of all audit and audit related services;

(ii) pre-approval of all non-audit related services to be provided to the Fund by the auditors;

(iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and

(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

(f) No disclosures are required by this Item 4(f).

(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $441,544 for the fiscal year ended March 31, 2020 and $271,000 for the fiscal year ended March 31, 2019.

(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered 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 registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5.

Audit Committee of Listed Registrants. N/A

Item 6.

Schedule of Investments. N/A

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A

Item 8.

Portfolio Managers of Closed-End Management Investment Companies. N/A

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. N/A

Item 10.

Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.

Item 11.

Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12.

Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A

Item 13.

Exhibits.

(a) (1) Code of Ethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer—Finance and Administration, and Vivek Pai, Chief Financial Officer and Chief Accounting Officer

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer—Finance and Administration, and Vivek Pai, Chief Financial Officer and Chief Accounting Officer

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, thereunto duly authorized.


FRANKLIN TEMPLETON ETF TRUST

By		S\MATTHEW T. HINKLE
		Matthew T. Hinkle
		Chief Executive Officer – Finance and Administration
Date		May 29, 2020

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\MATTHEW T. HINKLE
		Matthew T. Hinkle
		Chief Executive Officer – Finance and Administration
Date		May 29, 2020


By		S\VIVEK PAI
		Vivek Pai
		Chief Financial Officer and Chief Accounting Officer
Date		May 29, 2020