Fund Description: Franklin FTSE China 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 FTSE China ETF seeks to provide investment results that will closely correspond, before fees and expenses, generally to the price and yield performance of the FTSE China Capped Index. INDEX DESCRIPTION: 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 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 (securities of companies incorporated in the People’s Republic of China (PRC) that are denominated in Hong Kong dollars and listed on the Hong Kong Exchange) and B-Shares (securities of companies incorporated in the PRC and listed for foreign investment on either the Shanghai or Shenzhen stock exchanges). The Index also includes certain securities listed outside of the PRC known as N-Shares (issued by companies incorporated in certain foreign jurisdictions, which are controlled, directly or indirectly, by entities, companies or individuals in the PRC, derive substantial revenues or allocate substantial assets in the PRC and are listed on the NYSE, NASDAQ or the NYSE MKT), Red-Chips (issued by companies incorporated in certain foreign jurisdictions, which are controlled, directly or indirectly, by entities owned by the national government or local governments in the PRC, derive substantial revenues or allocate substantial assets in the PRC and are listed on the Hong Kong Exchange), P-Chips (issued by companies incorporated in certain foreign jurisdictions, which are controlled, directly or indirectly, by individuals in the PRC, derive substantial revenues or allocate substantial assets in the PRC and are listed on the Hong Kong Exchange) and S-Chips (issued by companies incorporated in certain foreign jurisdictions, which are controlled, directly or indirectly, by entities, companies or individuals in the PRC, derive substantial revenues or allocate substantial assets in the PRC and are listed on the Singapore Exchange). FTSE Russell determines eligible securities for the FTSE China Capped Index based on measures such as the company’s place of incorporation, quality of investor protection, tax domicile, location of headquarters/factors of production and currency of denomination. 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 replicate 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 is non-diversified. FUND MANAGEMENT: Franklin Advisers, Inc. serves as the investment adviser to the Fund.