Fund Description: Franklin Liberty U.S. Low Volatility ETF is an actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of the Franklin Templeton ETF Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The Franklin Liberty U.S. Low Volatility ETF seeks capital appreciation with an emphasis on lower volatility than the broader equity market, as measured by the Russell 1000 Index. The Fund is an actively managed ETF and thus, does not seek to replicate the performance of a specific index, but rather uses an active investment strategy to meet its investment objective, however, an actively managed ETF may have an index-based benchmark. Accordingly, the ETF’s investment advisor has discretion on a daily basis to actively manage the Fund’s portfolio in accordance with the Fund’s investment objective and investment policies. FUND STRATEGY: Under normal market conditions, the Fund invests at least 80% of its net assets in U.S. investments. The Fund invests primarily in equity securities (principally common stocks) of U.S. companies. Volatility is a statistical measurement of the frequency and level of up and down fluctuations of a fund’s returns over time. Therefore in seeking to provide a lower level of volatility than the broader equity market means that the Fund seeks returns that fluctuate less than the returns of the Russell 1000 Index. The investment manager seeks to accomplish its investment goal through its security selection process. The investment manager applies a fundamentally driven, bottom-up research process to create a starting universe of eligible securities across a large number of sectors derived from the holdings of a number of Franklin Templeton equity funds. The investment manager screens that universe on a quarterly basis in order to identify those securities with the lowest realized volatility relative to their corresponding sectors. The Fund’s sector weightings generally are based on the current sector weightings within the Russell 1000 Index. Individual securities in the Fund’s portfolio are generally weighted equally within each sector. The Fund may invest up to 20% of its net assets in foreign securities. The Fund may also invest a portion of its assets in small- and mid-capitalization companies. FUND MANAGEMENT: Franklin Advisers, Inc. serves as the Investment Manager (Adviser) to the Fund.