Fund Description: Legg Mason International Low Volatility High Dividend ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Legg Mason ETF Equity Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The Legg Mason International Low Volatility High Dividend ETF seeks to provide investment returns that closely correspond to the price and yield performance of the QS International Low Volatility High Dividend Hedged Index. INDEX DESCRIPTION: The QS International Low Volatility High Dividend Hedged Index seeks to provide more stable income through investments in stocks of profitable companies in developed markets outside of the United States with relatively high dividend yields or anticipated dividend yields and lower price and earnings volatility, while mitigating exposure to exchange-rate fluctuations between the U.S. dollar and other international currencies. The Index is composed of equity securities in developed markets outside of the United States across a range of market capitalizations that are included in the MSCI World ex-US IMI Index. Stocks in the Index must have demonstrated profitability over the last four fiscal quarters as a whole. Only stocks that have paid or are anticipated to pay a dividend are included in the Index. FUND STRATEGY: The Fund uses a passive or indexing investment approach to achieve its investment objective. Unlike many investment companies, the fund does not try to outperform its Index and does not seek temporary defensive positions when markets decline or appear overvalued. Indexing may eliminate the chance that the fund will substantially outperform the Index and also may reduce some of the risks of active management, such as poor security selection. Indexing seeks to achieve lower costs and better after-tax performance by keeping portfolio turnover low in comparison to actively managed investment companies. Representative sampling is an indexing strategy that may be used which involves investing in a representative sample of securities that collectively has an investment profile similar to that of the Index. When sampling is used, the securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as return variability, risk, market capitalization and sector exposures) and fundamental characteristics (such as portfolio yield, price/earnings ratios and price/book ratios) similar to those of the Index. The Fund may or may not hold all of the securities in the Index. The Fund may invest up to 20% of its net assets in foreign currency forward contracts and other currency hedging instruments, certain index futures, options, options on index futures, swap contracts or other derivatives (Financial Instruments) related to its Index and its component securities; cash and cash equivalents; other investment companies, including ETFs; exchange-traded notes; and in securities and other instruments not included in its Underlying Index, but which sub-adviser believes will help the fund track its Index. The Fund’s investments will be denominated in foreign currencies, thereby potentially subjecting the fund to fluctuations in exchange rates between such currencies and the U.S. dollar. The Index applies a methodology to effectively create a hedge against such fluctuations. In order to replicate the hedging component of the Index, the fund intends to enter into foreign currency forward contracts designed to offset the fund’s exposure to the currencies in which the fund’s holdings are denominated. FUND MANAGEMENT: Legg Mason Partners Fund Advisor, LLC (LMPFA) serves as the investment manager and QS Investors, LLC (QS) serves as the sub-adviser to the Fund.