Fund Description: Franklin LibertyQ Emerging Markets ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Franklin Templeton ETF Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The Franklin LibertyQ Emerging Markets ETF seeks to provide investment results that will closely correspond, before fees and expenses, generally to the price and yield performance of the LibertyQ Emerging Markets Index. INDEX DESCRIPTION: The LibertyQ Emerging Markets Index is a systematic, rules-based proprietary index that is owned and calculated by MSCI Inc. (MSCI). The Index is based on the MSCI Emerging Markets Index using a methodology developed with Franklin Templeton to reflect Franklin Templeton’s desired investment strategy. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of emerging markets. The Emerging Markets Underlying Index includes stocks from emerging market countries that have favorable exposure to multiple investment style factors. The Emerging Markets Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the MSCI Emerging Markets Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the MSCI Emerging Markets Index that have exposure to four investment style factors; quality, value, momentum and low volatility. The quality factor incorporates descriptors such as return on equity, earnings variability, cash return on assets and leverage. The value factor incorporates descriptors such as price to earnings, price to forward earnings, price to book value and dividend yield. The momentum factor incorporates descriptors such as 6-month risk adjusted price momentum and 12-month risk-adjusted price momentum. The low volatility factor incorporates descriptors such as historical beta (i.e., a measure of the volatility of a security relative to the total market). The Emerging Markets Underlying Index may include large- and mid-capitalization companies. FUND STRATEGY: Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Index and in depositary receipts representing such securities. The Fund, using a passive or indexing investment approach, seeks investment results that closely correspond to the performance of the Index. The Fund’s intention is to replicate the component securities of the Index as closely as possible. However, under various circumstances, it may not be possible or practicable to purchase all of the component securities in their respective weightings in the 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 Index, but may not track the Index with the same degree of accuracy as would an investment vehicle replicating the entire Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the Index, including securities that resemble those included in the Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund’s portfolio is reconstituted semi-annually following the semi-annual reconstitution of the Index. FUND MANAGEMENT: Franklin Advisers, Inc. serves as the investment adviser to the Fund.