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SUMMARY PROSPECTUS
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Franklin Liberty
International Opportunities ETF
Franklin Templeton ETF Trust
August 1, 2019
as amended February 19, 2020
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Ticker:
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Exchange:
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FLIO
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NYSE Arca, Inc.
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Before you invest, you may want to review the Fund's prospectus, which contains more information about the Fund and its risks.
You can find the Funds prospectus, statement of additional information, reports to shareholders and other information
about the Fund online at www.franklintempleton.com/prospectus. You can also get this information at no cost by calling (800)
DIAL BEN/342-5236 or by sending an e-mail request to prospectus@franklintempleton.com. The Fund's prospectus and statement of additional information, both dated August 1, 2019, as may be supplemented, are all incorporated by reference into this Summary Prospectus.
Internet Delivery of Fund Reports Unless You Request Paper Copies: Effective January 1, 2021, as permitted by the SEC, paper copies of the Funds shareholder reports will no longer be
sent by mail, unless you specifically request them from your financial intermediary. Instead, the reports will be made available
on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the
report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need
not take any action. If you have not signed up for electronic delivery, we would encourage you to join fellow shareholders
who have. You may elect to receive shareholder reports and other communications electronically by contacting your financial
intermediary.
You may elect to continue to receive paper copies of all your future shareholder reports free of charge by contacting your
financial intermediary to let the financial intermediary know of your request. Your election to receive reports in paper will
apply to all funds held with your financial intermediary.
Franklin Liberty International Opportunities ETF
On February 18, 2020, the Board of Trustees of Franklin Templeton ETF Trust, on behalf of the Fund, approved a proposal to
liquidate and dissolve the Fund. The liquidation is anticipated to occur on or about March 23, 2020.
After the close of business on February 20, 2020, the Fund will no longer accept creation orders. Trading in the Fund on NYSE
Arca, Inc. (NYSE Arca) will be halted prior to market open on March 17, 2020. Proceeds of the liquidation are currently scheduled
to be sent to shareholders on or about March 23, 2020.
When the Fund is in the process of liquidating its portfolio, which is anticipated to commence prior to March 17, 2020, the
Fund will hold cash and securities that may not be consistent with the Funds investment goal and strategies.
Shareholders may sell their shares of the Fund on NYSE Arca until the market close on March 16, 2020 and may incur the usual
and customary brokerage commissions associated with the sale of Fund shares. The Funds shares will no longer trade on
NYSE Arca after market close on March 16, 2020, and the shares will be subsequently delisted. At the time the liquidation
of the Fund is complete, shares of the Fund will be individually redeemed. Shareholders who do not sell their shares of the
Fund before market close on March 16, 2020 will receive cash equal to the amount of the net asset value of their shares, which
will include any capital gains and dividends, on or about March 23, 2020.
For those shareholders with taxable accounts and for Federal, state and local income tax purposes: (a) any liquidation proceeds
paid to such shareholder should generally be treated as received by such shareholder in exchange for the shareholders
shares and the shareholder will therefore generally recognize a taxable gain or loss; and (b) in connection with the liquidation,
the Fund may declare taxable distributions of its income and/or capital gain. Shareholders should consult their tax advisers
regarding the effect of the Funds liquidation in light of their individual circumstances.
Investment Goal
Long-term capital appreciation.
Fees and Expenses of the Fund
The following table describes the fees and expenses that you will incur if you own shares of the Fund. You may also incur
usual and customary brokerage commissions when buying or selling shares of the Fund, which are not reflected in the Example
that follows.
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
Management fees
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0.60%
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Distribution and service (12b-1) fees
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None
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Other expenses
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1.74%
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Total annual Fund operating expenses
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2.34%
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Fee waiver and/or expense reimbursement1
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-1.74%
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Total annual Fund operating expenses after fee waiver and/or expense reimbursement1
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0.60%
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1. The investment manager has contractually agreed to waive or assume certain expenses so that total annual Fund operating expenses
(including acquired fund fees and expenses, but excluding certain non-routine expenses) for the Fund do not exceed 0.60% until
July 31, 2020. Contractual fee waiver and/or expense reimbursement agreements may not be changed or terminated during the
time period set forth above.
Example
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds.
The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at
the end of the period. The Example also assumes that your investment has a 5% return each year and that the Fund's operating
expenses remain the same. The Example reflects adjustments made to the Funds operating expenses due to the fee waivers
and/or expense reimbursements by management for the 1 Year numbers only. Although your actual costs may be higher or lower,
based on these assumptions your costs would be:
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1 Year
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3 Years
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5 Years
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10 Years
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$ 61
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$ 563
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$ 1,092
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$ 2,542
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A
higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held
in a taxable account. These costs, which are not reflected in annual Fund operating expenses or in the Example, affect the
Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 20.83% of the average value of its portfolio.
Principal Investment Strategies
Under normal market conditions, the Fund invests predominantly in equity securities of international companies in developed,
developing and frontier markets outside of the U.S. across the entire market capitalization spectrum, including small and
mid-capitalization companies. The Funds individual country and sector weightings may vary significantly from its benchmark
index, and investments will not necessarily be in the securities that comprise its benchmark index. The Funds exposure
to various regions and markets will vary from time to time according to the investment managers opinions as to the prevailing
conditions and prospects for these markets. In seeking to outperform the relevant market of each region, the investment manager
consults with various local asset managers based in certain regions around the world (Sub-Advisors). Although the Sub-Advisors
assist the investment manager in the selection of local securities, the investment manager retains the sole discretion with
respect to portfolio security selection.
The Fund considers international companies to be companies:
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whose securities are listed or traded principally on a recognized stock exchange or over-the-counter market outside of the
U.S.;
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that derive 50% or more of their total revenue from either goods or services produced or sales made in markets outside the
U.S.;
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that have 50% or more of their assets outside the U.S.; or
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that are organized under the laws of, or with principal offices in, a country other than the U.S.
The Fund invests in equity securities of international companies in regions/countries that may include, but are not limited
to, Africa; Australia; Canada; Mexico; Latin America; South America; Europe (including the United Kingdom); Asia (including
Japan, South Korea, China, India and Russia); and the Middle East. The Fund may invest in developed or developing market countries,
including those considered to be frontier market countries (i.e., those that are smaller, less developed and less
accessible developing market countries). Under normal market conditions, the Fund will provide exposure to investments that
are economically tied to at least three different countries. The equity securities in which the Fund invests are principally
common stocks and preferred stocks. The Fund also may invest in exchange-traded funds (ETFs) to obtain exposure to equity
investments in local markets. The Fund may, from time to time, have significant positions in particular sectors.
The Fund may enter into certain derivative transactions, principally currency forward contracts; currency futures contracts
and options thereon; equity futures contracts (including equity index futures contracts); and options, including options on
currencies and equity options (including equity index options). The use of these derivative transactions may allow the Fund
to obtain net long or short exposures to select instruments, currencies or countries. These derivatives may be used to enhance
Fund returns, increase liquidity, gain exposure to certain instruments or markets in a more efficient or less expensive way
and/or hedge risks associated with its other portfolio investments.
When choosing equity investments for the Fund, the investment manager applies a research driven, bottom up, fundamental
long-term approach, focusing on the market price of a companys securities relative to the investment managers
evaluation of the companys long-term earnings, asset value and cash flow potential. The Fund seeks to invest in companies
that the investment manager considers to be financially strong with favorable growth potential and sustainable competitive
advantages. The investment manager may also consider, among other factors, a companys price/earnings ratio, profit margins
and liquidation value. The investment manager may seek to sell a security if: (i) the security reaches its valuation target;
(ii) the security reaches its position size limit in the Funds portfolio; (iii) the securitys fundamentals deteriorate;
(iv) there are adverse policy changes that could affect the securitys outlook; or (v) better investment opportunities
become available.
The Fund is an actively managed ETF that does not seek to replicate the performance of a specified index.
Principal Risks
You could lose money by investing in the Fund. ETF shares are not deposits or obligations of, or guaranteed or endorsed by,
any bank, and are not insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency
of the U.S. government. The Fund is subject to the principal risks noted below, any of which may adversely affect the Funds
net asset value (NAV), trading price, yield, total return and ability to meet its investment goal. Unlike many ETFs, the Fund
is not an index-based ETF.
Market The market values of securities or other investments owned by the Fund will go up or down, sometimes rapidly or unpredictably.
The market value of a security or other investment may be reduced by market activity or other results of supply and demand
unrelated to the issuer. This is a basic risk associated with all investments. When there are more sellers than buyers, prices
tend to fall. Likewise, when there are more buyers than sellers, prices tend to rise.
Stock prices tend to go up and down more dramatically than those of debt securities. A slower-growth or recessionary economic
environment could have an adverse effect on the prices of the various stocks held by the Fund.
Foreign Securities (non-U.S.) Investing in foreign securities typically involves more risks than investing in U.S. securities, and includes risks associated
with: (i) internal and external political and economic developments e.g., the political, economic and social policies
and structures of some foreign countries may be less stable and more volatile than those in the U.S. or some foreign countries
may be subject to trading restrictions or economic sanctions; (ii) trading practices e.g., government supervision and
regulation of foreign securities and currency markets, trading systems and brokers may be less than in the U.S.; (iii) availability
of information e.g., foreign issuers may not be subject to the same disclosure, accounting and financial reporting
standards and practices as U.S. issuers; (iv) limited markets e.g., the securities of certain foreign issuers may be
less liquid (harder to sell) and more volatile; and (v) currency exchange rate fluctuations and policies (e.g., fluctuations
may negatively affect investments denominated in foreign currencies and any income received or expenses paid by the Fund in
that foreign currency). The risks of foreign investments may be greater in developing or emerging market countries.
Regional Focus Because the Fund may invest at least a significant portion of its assets in companies in a specific region, including Europe,
the Fund is subject to greater risks of adverse developments in that region and/or the surrounding regions than a fund that
is more broadly diversified geographically. Political, social or economic disruptions in the region, even in countries in
which the Fund is not invested, may adversely affect the value of investments held by the Fund. Current political uncertainty
surrounding the European Union (EU) and its membership, including the 2016 referendum in which the United Kingdom voted to
exit the EU, may increase market volatility. The financial instability of some countries in the EU together with the risk
of such instability impacting other more stable countries may increase the economic risk of investing in companies in Europe.
Developing Market Countries The Funds investments in securities of issuers in developing market countries are subject to all of the risks of foreign
investing generally, and have additional heightened risks due to a lack of established legal, political, business and social
frameworks to support securities markets, including: delays in settling portfolio securities transactions; currency and capital
controls; greater sensitivity to interest rate changes; pervasiveness of corruption and crime; currency exchange rate volatility;
and inflation, deflation or currency devaluation. The risks of investing in developing market countries are magnified in frontier
market countries.
Smaller and Midsize Companies Securities issued by smaller and midsize companies may be more volatile in price than those of larger companies, involve substantial
risks and should be considered speculative. Such risks may include greater sensitivity to economic conditions, less certain
growth prospects, lack of depth of management and funds for growth and development, and limited or less developed product
lines and markets. In addition, smaller and midsize companies may be particularly affected by interest rate increases, as
they may find it more difficult to borrow money to continue or expand operations, or may have difficulty in repaying any loans.
Currency Management Strategies Currency management strategies may substantially change the Funds exposure to currency exchange rates and could result
in losses to the Fund if currencies do not perform as the investment manager expects. In addition, currency management strategies,
to the extent that they reduce the Funds exposure to currency risks, may also reduce the Funds ability to benefit
from favorable changes in currency exchange rates. Using currency management strategies for purposes other than hedging further
increases the Funds exposure to foreign investment losses. Currency markets generally are not as regulated as securities
markets. In addition, currency rates may fluctuate significantly over short periods of time, and can reduce returns.
Derivative Instruments The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency,
security or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks.
Derivatives involve costs and can create economic leverage in the Fund's portfolio which may result in significant volatility
and cause the Fund to participate in losses (as well as gains) in an amount that exceeds the Fund's initial investment. Certain
derivatives have the potential for unlimited loss, regardless of the size of the initial investment. Other risks include illiquidity,
mispricing or improper valuation of the derivative instrument, and imperfect correlation between the value of the derivative
and the underlying instrument so that the Fund may not realize the intended benefits. When a derivative is used for hedging,
the change in value of the derivative may also not correlate specifically with the currency, security, index or other risk
being hedged. With over-the-counter derivatives, there is the risk that the other party to the transaction will fail to perform.
Focus To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investment from time
to time, the Fund may be subject to greater risks of adverse developments in such areas of focus than a fund that invests
in a wider variety of countries, regions, industries, sectors or investments.
Management The Fund is subject to management risk because it is an actively managed investment portfolio. The Fund's investment manager
applies investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee
that these decisions will produce the desired results.
Market Trading The Fund faces numerous market trading risks, including the potential lack of an active market for Fund shares, losses from
trading in secondary markets, periods of high volatility and disruption in the creation/redemption process of the Fund. Any
of these factors, among others, may lead to the Funds shares trading at a premium or discount to NAV. Thus, you may
pay more (or less) than NAV when you buy shares of the Fund in the secondary market, and you may receive less (or more) than
NAV when you sell those shares in the secondary market. The investment manager cannot predict whether shares will trade above
(premium), below (discount) or at NAV.
International Closed Market Trading To the extent that the underlying securities held by the Fund trade on an exchange that is closed when the securities exchange
on which the Fund shares list and trade is open, there may be market uncertainty about the stale security pricing (i.e., the
last quote from its closed foreign market) resulting in premiums or discounts to NAV that may be greater than those experienced
by other ETFs.
Authorized Participant Concentration Only an authorized participant (Authorized Participant) may engage in creation or redemption transactions directly with the
Fund. The Fund has a limited number of institutions that act as Authorized Participants. To the extent that these institutions
exit the business or are unable to proceed with creation and/or redemption orders with respect to the Fund and no other Authorized
Participant is able to step forward to create or redeem Creation Units (as defined below), Fund shares may trade at a discount
to NAV and possibly face trading halts and/or delisting. This risk may be more pronounced in volatile markets, potentially
where there are significant redemptions in ETFs generally.
Small Fund When the Fund's size is small, the Fund may experience low trading volume and wide bid/ask spreads. In addition, the Fund
may face the risk of being delisted if the Fund does not meet certain conditions of the listing exchange. If the Fund were
to be required to delist from the listing exchange, the value of the Fund may rapidly decline and performance may be negatively
impacted. In addition, any resulting liquidation of the Fund could cause the Fund to incur elevated transaction costs for
the Fund and negative tax consequences for its shareholders.
Large Shareholder Certain shareholders, including other funds or accounts advised by the investment manager or an affiliate of the investment
manager, may from time to time own a substantial amount of the Fund's shares. In addition, a third party investor, the investment
manager or an affiliate of the investment manager, an authorized participant, a lead market maker, or another entity may invest
in the Fund and hold its investment for a limited period of time solely to facilitate commencement of the Fund or to facilitate
the Fund's achieving a specified size or scale. There can be no assurance that any large shareholder would not redeem its
investment, that the size of the Fund would be maintained at such levels or that the Fund would continue to meet applicable
listing requirements. Redemptions by large shareholders could have a significant negative impact on the Fund. In addition,
transactions by large shareholders may account for a large percentage of the trading volume on the listing exchange and may,
therefore, have a material upward or downward effect on the market price of the shares.
Performance
The following bar chart and table provide some indication of the risks of an investment in the Fund by comparing the Fund's
performance with a broad measure of market performance. The bar chart shows the Fund's performance for the most recent calendar
year. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the
future. You can obtain updated performance information at franklintempleton.com or by calling (800) DIAL BEN/342-5236.
Annual Total Returns
Best Quarter:
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Q3'18
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0.07%
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Worst Quarter:
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Q4'18
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-13.24%
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As of June 30, 2019, the Fund's year-to-date return was 14.58%.
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Average Annual Total Returns
For the periods ended December 31, 2018
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1 Year
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Since Inception
1/25/2017
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Franklin Liberty International Opportunities ETF
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Return Before Taxes
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-16.16%
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2.23%
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Return After Taxes on Distributions
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-16.59%
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1.08%
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Return After Taxes on Distributions and Sale of Fund Shares
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-9.42%
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1.30%
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MSCI All Country World ex-US Index (index reflects no deduction for fees, expenses or taxes)
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-13.78%
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2.98%
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The after-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ
from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements,
such as 401(k) plans or individual retirement accounts.
Investment Manager
Franklin Advisers, Inc. (Advisers)
Sub-Advisors
Franklin Templeton Investimentos (Brasil) Ltda. (FTI Brasil), Franklin Templeton Investments Corp. (FTIC), Franklin Templeton
Investment Management Limited (FTIML), Franklin Templeton Investments (ME) Limited (FTIME), and Templeton Asset Management
Ltd. (TAML).
Portfolio Manager
Purav A. Jhaveri, CFA, FRM Portfolio Manager of Advisers and portfolio manager of the Fund since inception (2017).
Purchase and Sale of Fund Shares
The Fund is an ETF. Fund shares may only be purchased and sold on a national securities exchange through a broker-dealer.
The price of Fund shares is based on market price, and because ETF shares trade at market prices rather than NAV, shares may
trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund issues or redeems shares that have been
aggregated into blocks of 50,000 shares or multiples thereof (Creation Units) to Authorized Participants who have entered
into agreements with the Funds distributor, Franklin Templeton Distributors, Inc. The Fund will generally issue or redeem
Creation Units in return for a basket of securities (and an amount of cash) that the Fund specifies each day.
Taxes
The Funds distributions are generally taxable to you as ordinary income, capital gains, or some combination of both,
unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in
which case your distributions would generally be taxed when withdrawn from the tax-deferred account.
Payments to Broker-Dealers and
Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the investment
manager or other related companies may pay the intermediary for certain Fund-related activities, including those that are
designed to make the intermediary more knowledgeable about exchange traded products, such as the Fund, as well as for marketing,
education or other initiatives related to the sale or promotion of Fund shares. These payments may create a conflict of interest
by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment.
Ask your salesperson or visit your financial intermediarys website for more information.
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Franklin Templeton Distributors, Inc.
One Franklin Parkway
San Mateo, CA 94403-1906
franklintempleton.com
Franklin Liberty
International Opportunities ETF
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Investment Company Act file #811-23124
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© 2020 Franklin Templeton. All rights reserved.
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FLIO PSUM 02/20
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00202245
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