Report 
 
      
Registrant:   Franklin ETF Trust — List all N-SARs

Annual Report for the 2nd-half period ended at fiscal year end:  3/31/18
Is this a Transition Report?  Yes

Were there any Answer File errors in the Filing?  None FoundNone Found by SEC InfoNot Checked by the FilerOne or more Found by SEC Info
Was the Answer File completed by the Registrant?  Yes

Is this an Amendment to a previous Report?  No
Is this a change to a previous Report?      No
 
Registrant 
 
 1.
SEC CIK:      1551895
SEC File #:   811-22801

Telephone #:  650-312-2000
 
 2.
Address:      One Franklin Parkway
              San Mateo, CA  94403
 
 3.
Is this the first Form N-SAR filed by the Registrant?  No
 
 4.
Is this the final Form N-SAR filed by the Registrant?  No
 
 
Funds/Series 
↑Top of Form N-SAR 
     
                                                                               
 7.
Is the Registrant a Funds/Series (multiple portfolios) company?  Yes

The number of separate Funds/Series (portfolios) at period end:  1
The number of separate Funds/Series (portfolios) reported here:  1...

N-SAR S#      Fund/Series — Filings for F/S#… ⇒ Symbols 
 
↓Information Common to All 
↓
Series 1:     Franklin Liberty Short Duration US Govt ETF [ now
              Franklin Short Duration U.S. Government ETF ] — S#40579 ⇒ FTSD
 
Investment Company Type 
 
27.
Is the Registrant an “open-end” investment company?  Yes, Open-End
 
Additional Disclosures 
 
77.
Did the Registrant file any additional Exhibits with the filing of this
Report (listed here and filed either herewith — as one of the ‘EX-99.*’
↑Exhibits in this Filing — or separately and incorporated by reference)?  Yes

EX-99.77B:  Accountant’s Report re: Internal Controls?  Yes

EX-99.77C:  Matters Submitted to a Vote of Security Holders?  Yes

EX-99.77Q1: Other Disclosure?  Yes
 
Subsidiaries 
 
78.
Does the Registrant have any wholly-owned investment company
subsidiaries whose operating and financial data are consolidated with
that of the Registrant in this Report?  No
 
 All Series
↑List of Funds/Series Reported Here 

Information Common to All Funds/Series
 
 All: 
Investment Adviser 
 
 8.1
Name:         Franklin Advisers, Inc.
Role:         Adviser
SEC File #:   801-26292
Location:     San Mateo, CA
 
 All: 
Administrator 
 
10.1
Name:         Franklin Templeton Services, LLC
SEC File #:   801-31192
Location:     San Mateo, CA
 
 All: 
Principal Underwriter 
 
11.1
Name:         Franklin Templeton Distributors, Inc.
SEC File #:   008-05889
Location:     San Mateo, CA
 
 All: 
Shareholder Servicing/Transfer Agent 
 
12.1
Name:         The Bank of New York Mellon
SEC File #:   085-05006
Location:     East Syracuse, NY
 
 All: 
Independent Public Accountant 
 
13.1
Name:         Pricewaterhousecoopers LLP
Location:     San Francisco, CA
 
 All: 
Affiliated Broker/Dealer 
 
14.1
Name:         Franklin Templeton Distributors Inc.
SEC File #:   008-05889
 
 All: 
Custodian 
 
15.1
Name:         The Bank of New York Mellon
Role:         Custodian
Location:     New York, NY

Type of custody:  Section 17(f)(1) — Bank
 
15.2
Name:         Franklin Templeton Investor Services LLC
Role:         Custodian
Location:     San Mateo, CA

Type of custody:  Rule 17f-2 — Self
 
 All: 
Brokerage Commissions Paid on Portfolio Transactions 
 
20.
The brokers who received the largest amount of gross brokerage
commissions during the period:
 
20.1
Broker:       JP Morgan Securities LLC
IRS #:        13-4110995
Commissions paid ($000s):  3
 
21.
Total brokerage commissions paid by the Registrant during the period:
  Aggregate paid ($000s):  3
 
 All: 
Portfolio Transactions with Entities Acting as Principals 
 
22.
The entities acting as principals with whom the Registrant did the
largest amount of portfolio transactions, based on total value of
principal, during the period:
 
22.1
Entity:       Wells Fargo Securities, LLC
IRS #:        94-3379992
Registrant’s purchases ($000s):  30,021
Registrant’s sales ($000s):  19,044
 
22.2
Entity:       Goldman, Sachs & Co.
IRS #:        13-5108880
Registrant’s purchases ($000s):  28,976
Registrant’s sales ($000s):  17,662
 
22.3
Entity:       Merrill Lynch, Pierce, Fenner & Smith Inc.
Registrant’s purchases ($000s):  15,825
Registrant’s sales ($000s):  21,440
 
22.4
Entity:       BNP Paribas Securities Corp.
IRS #:        13-3235334
Registrant’s sales ($000s):  17,910
 
22.5
Entity:       JP Morgan Securities LLC
IRS #:        13-4110995
Registrant’s purchases ($000s):  8,341
Registrant’s sales ($000s):  6,243
 
22.6
Entity:       Morgan Stanley & Co. Inc.
IRS #:        13-2655998
Registrant’s purchases ($000s):  4,817
Registrant’s sales ($000s):  9,562
 
22.7
Entity:       Nomura Securities Ltd.
IRS #:        13-2642206
Registrant’s purchases ($000s):  3,479
Registrant’s sales ($000s):  5,478
 
22.8
Entity:       Amherst Securities Group, L.P.
IRS #:        76-0651103
Registrant’s purchases ($000s):  3,435
Registrant’s sales ($000s):  3,466
 
22.9
Entity:       Brean Capital
IRS #:        13-3490212
Registrant’s purchases ($000s):  6,415
 
22.10
Entity:       Barclays Capital Inc.
IRS #:        06-1031656
Registrant’s purchases ($000s):  3,179
 
23.
Total purchase/sale transactions by the Registrant during the period:
   Aggregate purchases ($000s):  119,712
   Aggregate sales ($000s):  104,201
 
 All: 
Considerations which Affected the Participation of Brokers or Dealers 
 
26.
Considerations which affected the participation of brokers or dealers or
other entities in commissions or other compensation paid on portfolio
transactions of the Registrant:

Consideration?
Sales of the Registrant’s/Series’ shares ...............................  No
Receipt of investment research and statistical info ....................  Yes
Receipt of quotations for portfolio valuations .........................  Yes
Ability to execute portfolio transactions to obtain the best price
  and execution ........................................................  Yes
Receipt of telephone line and wire services ............................  No
Broker or Dealer which is an affiliated person .........................  No
An arrangement to return or credit part or all of commissions or
  profits thereon...
    To an Investment Adviser or Principal Underwriter, or to an
      affiliated person of either ......................................  No
    To the Registrant ..................................................  No
Other ..................................................................  No
 
 Series 1
↑Information Common to All Funds/Series  ↑List of Funds/Series 
 
 7.
Name:         Franklin Liberty Short Duration US Govt ETF [ now
              Franklin Short Duration U.S. Government ETF ] — S#40579 ⇒ FTSD

Is this the final Form N-SAR filed for this Fund/Series?  No
 
 S 1: 
Custodian 
 
18.
Does the Registrant’s/Series’ Custodian(s) maintain some or all of the
Registrant’s/Series’ securities in a central depository or book-entry
system pursuant to Rule 17f-4?  Yes
 
 S 1: 
Family of Investment Companies 
 
19.
Is the Registrant/Series part of a “family” of investment companies?  Yes

Total number of registered management investment companies, Series
and portfolios (excluding any Unit Investment Trusts) in the family:  185

The Identification Code of the family for Form N-SAR Filings:  FRNKTEMINV
 
 S 1: 
Holdings of Securities Issued by Registrant’s/Series’ Brokers or Dealers 
 
24.
At period end, did the Registrant/Series hold any securities of the
Registrant’s/Series’ regular brokers or dealers, or of the parents of
such brokers or dealers, that derive more than 15% of gross revenue from
securities-related activities?  No
 
 S 1: 
Sales and Repurchases 
 
28.
Monthly total Net Asset Value (NAV) of sales and repurchases of the
Registrant’s/Series’ shares:
 
1st Month of period:  ($000s)
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 7,188
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 –
2nd Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 7,176
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 –
3rd Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 2,386
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 –
4th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 9,522
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 –
5th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 –
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 –
6th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 –
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 –

Total of all months:  ($000s)
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 26,272
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 –

Total NAV of the Registrant’s/Series’ share sales during the period
subject to a sales load ($000s):  0
 
 S 1: 
Sales Load (Front-End or Deferred) and Fees (Redemption or Maintenance) 
 
29.
Was a front-end sales load deducted from any share sales during the
period?  No
 
34.
Did the Registrant/Series impose a deferred or contingent deferred sales
load during the period?  No
 
37.
Did the Registrant/Series impose a redemption fee other than a deferred
or contingent sales load during the period?  No
 
39.
Were any account maintenance fees or other administrative fees imposed
directly on shareholders during the period?  No
 
 S 1: 
Payment Plan for the Distribution of Fund Shares 
 
40.
During the period, did the Registrant/Series have a plan of distribution
adopted pursuant to Rule 12b-1?  No
 
 S 1: 
Advisory Fee 
 
45.
Did the Registrant/Series have an advisory contract during the period?  Yes
 
46.
Did the Registrant/Series pay more than one Investment Adviser directly
for investment advice during the period?  No
 
47.
Was the Registrant’s/Series’ advisory fee based solely on a percentage
of its assets?  Yes
 
48.
Fee (single rate or step rates) applied to the Registrant’s/Series’
assets based on the advisory contract:
    Single-fee rate:  0.3%
    Step-fee rates:
      For 1st $000s:  0
        Annual rate:  0.0%
 
49.
Was the Registrant’s/Series’ advisory fee during the period based solely
on a percentage of its income?  No
 
50.
Was the Registrant’s/Series’ advisory fee during the period based on
some combined percentage of its income and assets?  No
 
51.
Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on its investment performance?  No
 
52.
Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on the assets, income or performance of other
Registrants?  No
 
53.
Were the expenses of the Registrant/Series limited or reduced at any
time during the period by some agreement or understanding other than by
Blue Sky Laws?  Yes

Was the limitation that applied during the period based on...
    Assets?   Yes
    Income?   No
 
54.
Indicated below are whether services were supplied or paid for wholly or
in substantial part by Investment Adviser(s) or Administrator(s) in
connection with the advisory or administrative contract(s) but for which
the Adviser(s) or Administrator(s) are not reimbursed by the Registrant:

Provided to the Registrant?
Occupancy and office rental ............................................  Yes
Clerical and bookkeeping services ......................................  Yes
Accounting services ....................................................  Yes
Services of independent auditors .......................................  No
Services of outside counsel ............................................  No
Registration and filing fees ...........................................  No
Stationery, supplies and printing ......................................  Yes
Salaries & compensation of Registrant’s interested Directors ...........  Yes
Salaries & compensation of Registrant’s disinterested Directors ........  No
Salaries & compensation of Registrant’s Officers who aren’t Directors ..  Yes
Reports to current shareholders ........................................  No
Determination of offering and redemption prices ........................  Yes
Trading department .....................................................  Yes
Prospectus preparation and printing for current shareholders ...........  No
Other ..................................................................  Yes
 
 S 1: 
Miscellaneous Info 
 
55.
Did the Registrant/Series have any of the following outstanding at any
time during the period which exceeded 1% of aggregate net assets:
    Overdrafts?  No
    Bank loans?  No
 
56.
During the period, did the Registrant’s/Series’ Investment Adviser(s)
have advisory clients other than investment companies?  Yes
 
57.
Did the Registrant/Series adjust the number of its shares outstanding by
means of a stock split or stock dividend?  No
 
 S 1: 
Classification and Asset Allocation 
 
58.
Is the Registrant/Series a Separate Account of an insurance company?  No
 
59.
Is the Registrant/Series a management investment company?  Yes
 
60.
Was the Registrant/Series a diversified investment company at any time
during the period?  Yes

Was the Registrant/Series a diversified investment company at the end of
the period?  Yes
 
61.
The lowest minimum initial investment required by the Registrant/Series
from an investor that is not an employee or otherwise affiliated with
the Registrant/Series, its Investment Adviser, Principal Underwriter or
other affiliated entity:  $0
 
62.
Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities?  Yes

The percentage of net assets in each type at period end:

Debt — Short-Term Maturities
U.S. Treasury ...............................      0.0%
U.S. Government Agency ......................      0.0
Repurchase agreements .......................      0.0
State and Municipal – tax-free ..............      0.0
Bank certificates of deposit – domestic .....      0.0
Bank certificates of deposit – foreign ......      0.0
Bankers acceptances .........................      0.0
Commercial paper – taxable ..................      0.0
Time deposits ...............................      0.0
Options .....................................      0.0
All other ...................................      0.0

Debt — Intermediate & Long-Term Maturities
U.S. Treasury ...............................    17.7%
U.S. Government Agency ......................    69.7
State and Municipal – tax-free ..............      0.0
Corporate ...................................      7.7
All other ...................................      2.7

Non-Debt
Investments other than debt securities ......      0.3%
 
63.
The dollar-weighted average portfolio maturity at period end in days or,
if longer than one year, in years (to one decimal place):
    Days:     0
    Years:    11.6
 
64.
Is the timely payment of principal and interest on any of the
instruments listed in Item 62 insured or guaranteed by an entity other
than the issuer?  No

Is the issuer of any instrument covered in Item 62 delinquent or in
default as to payment of principal or interest at period end?  No
 
66.
Is the Registrant/Series a Fund that usually invests in equity
securities, options & futures on equity securities, indices of equity
securities or securities convertible into equity securities?  No
 
67.
Is the Registrant/Series a “balanced” Fund?  No
 
68.
Does the Registrant/Series have more than 50% of its net assets at
period end invested in the securities of issuers...
    Engaged primarily in production or distribution of precious metals?  No
    Located primarily in countries other than the United States?  No
 
69.
Is the Registrant/Series an index Fund?  No
 
 S 1: 
Investment Practices 
 
70.
Activities that are permitted by the Registrant’s/Series’ investment
policies, and which were engaged in during the period:

Activity                                            Permitted Engaged In
Writing or investing in repurchase agreements?           Yes      No
Writing or investing in options on equities?             No        –
Writing or investing in options on debt securities?      No        –
Writing or investing in options on stock indices?        No        –
Writing or investing in interest rate futures?           Yes to both
Writing or investing in stock index futures?             No        –
Writing or investing in options on futures?              No        –
Writing or investing in options on stock index futures?  No        –
Writing or investing in other commodity futures?         No        –
Investments in restricted securities?                    Yes      No
Investments in shares of other investment companies?     Yes to both
Investments in securities of foreign issuers?            No        –
Currency exchange transactions?                          No        –
Loaning portfolio securities?                            Yes      No
Borrowing of money?                                      Yes      No
Purchases/sales by certain exempted affiliated persons?  No        –
Margin purchases?                                        No        –
Short selling?                                           No        –
 
 S 1: 
Portfolio Turnover 
 
71.
Portfolio turnover rate for the period:
 
Purchases ($000s):  159,531
Sales ($000s):      162,921

Monthly average Value of portfolio ($000s):  154,238

Percent turnover (lesser of Purchases or Sales, divided by Value):  103%
 
 S 1: 
Financial Info — Income and Expenses 
 
72.
The number of months covered by the values in Items 72 and 73:  10

Income  ($000s)
Net interest income ..............................................
 2,149
Net dividend income ..............................................
 23
Account maintenance fees .........................................
 –
Net other income .................................................
 –

Expenses  ($000s)
Advisory fees ....................................................
 376
Administrator fees ...............................................
 –
Salaries and other compensation ..................................
 –
Shareholder Servicing Agent fees .................................
 43
Custodian fees ...................................................
 1
Postage ..........................................................
 –
Printing expenses ................................................
 15
Directors’ fees ..................................................
 6
Registration fees ................................................
 20
Taxes ............................................................
 –
Interest .........................................................
 –
Bookkeeping fees paid to anyone performing this service ..........
 –
Auditing fees ....................................................
 25
Legal fees .......................................................
 93
Marketing/distribution payments, incl. Rule 12b-1 plan payments ..
 –
Amortization of organization expenses ............................
 –
Shareholder meeting expenses .....................................
 –
Other expenses ...................................................
 53
Total expenses ...................................................
 632

Expense reimbursements ($000s):   292

Net investment income ($000s):    1,832

Realized capital gains ($000s):   1,221
Realized capital losses ($000s):  716

Net unrealized appreciation during the period ($000s):  0
Net unrealized depreciation during the period ($000s):  1,883

Total income dividends for which the record date passed during the
period ($000s):  2,918

Total capital gains distributions for which the record date passed
during the period ($000s):  0
 
73.
Distributions per share for which the record date passed during the
period, shown in fractions of a cent, if so declared:

Dividends from net investment income:    $1.8500

Distribution of capital gains:  $0.0000
Other distributions:            $0.0000
 
 S 1: 
Financial Info — Condensed Balance Sheet Data 
 
74.
Assets  ($000s)
Cash .............................................................
 –
Repurchase agreements ............................................
 –
Short-term debt securities, other than repurchase agreements .....
 –
Long-term debt securities, including convertible debt ............
 160,655
Preferred, conv. preferred and adjustable-rate preferred stock ...
 –
Common stock .....................................................
 –
Options on equities ..............................................
 –
Options on all futures ...........................................
 –
Other investments ................................................
 445
Receivables from portfolio instruments sold ......................
 497
Receivables from affiliated persons ..............................
 56
Other receivables ................................................
 7,816
All other assets .................................................
 –
Total assets .....................................................
 169,469

Liabilities  ($000s)
Payables for portfolio instruments purchased .....................
 4,721
Amounts owed to affiliated persons ...............................
 –
Senior long-term debt ............................................
 –
Other liabilities:
  Reverse repurchase agreements ..................................
 –
  Short sales ....................................................
 –
  Written options ................................................
 –
  All other liabilities ..........................................
 469

Equity  ($000s)
Senior equity ....................................................
 –
Net assets of common shareholders ................................
 164,279

Number of shares outstanding (000s):   1,726

Net Asset Value (NAV) per share (to nearest cent):  $95.18

Total number of shareholder accounts:  36

Total value of assets in segregated accounts ($000s):  138
 
75.
Monthly average net assets during the period ($000s):  153,071
 
 S 1: 
Fidelity Bond in Effect at Fiscal Year End 
 
80.
Insurer:      ICI Mutual Insurance Co.
2nd Insurer:  None

Aggregate face amount of coverage for the Registrant/Series on all bonds
on which it is named as an insured ($000s):  100,000
 
81.
Is the bond part of a joint fidelity bond(s) shared with other
investment companies or other entities?  Yes

How many other investment companies or other entities are covered by the
bond (counting each Fund/Series as a separate investment company):  644
 
82.
Does the mandatory coverage of the fidelity bond have a deductible?  No
 
83.
Were any claims with respect to this Registrant/Series filed under the
bond during the period?  No
 
84.
Were any losses incurred with respect to this Registrant/Series that
could have been filed as a claim under the fidelity bond but were not?  No
 
85.
Are the Registrant’s/Series’ Officers and Directors covered as Officers
and Directors of the Registrant/Series under any errors and omissions
insurance policy owned by the Registrant/Series or anyone else?  Yes

Were any claims filed under such policy during the period with respect
to the Registrant/Series?  No
 
 Signature 
 
↑Top of Form N-SAR 
     
                                                                               
/s/      Tisha Wilburn      
Name:   Tisha Wilburn
Title:  Assistant Treasurer