0001655589 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:InvestmentStyleFactors2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:LargeCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:Informationtechnologycompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:Russell3000Index31Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:Russell3000Index31Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:Russell3000Index31Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:Russell1000Index32Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:Russell1000Index32Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:Russell1000Index32Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:LibertyQUSLargeCapEquityIndex33Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:LibertyQUSLargeCapEquityIndex33Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:LibertyQUSLargeCapEquityIndex33Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:InvestmentStyleFactors2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:Russell3000Index34Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:Russell3000Index34Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:Russell3000Index34Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:RussellMidcapIndex35Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:RussellMidcapIndex35Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:RussellMidcapIndex35Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:LibertyQUSMidCapEquityIndex36Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057201Member cik0001655589:LibertyQUSMidCapEquityIndex36Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:LibertyQUSMidCapEquityIndex36Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:InvestmentStyleFactors2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:SmallCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:Russell3000Index37Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:Russell3000Index37Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:Russell3000Index37Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:Russell2000Index38Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:Russell2000Index38Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:Russell2000Index38Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:LibertyQUSSmallCapEquityIndex39Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057202Member cik0001655589:LibertyQUSSmallCapEquityIndex39Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:LibertyQUSSmallCapEquityIndex39Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000089400Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:C000255929Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:Regional2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:Dividend-OrientedCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:Financialservicescompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:LargeCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089400Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:C000255930Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:Dividend-OrientedCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:LargeCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000089401Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:Regional2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:Dividend-OrientedCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:Financialservicescompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:LargeCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2017-12-31 2017-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:MorningstarDevelopedMarketsex-NorthAmericaTargetMarketExposureIndex-NR310Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:MorningstarDevelopedMarketsex-NorthAmericaTargetMarketExposureIndex-NR310Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:MorningstarDevelopedMarketsex-NorthAmericaTargetMarketExposureIndex-NR310Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:LinkedMorningstarDevelopedMarketsex-NorthAmericaTargetMarketExposureIndex-NR311Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:LinkedMorningstarDevelopedMarketsex-NorthAmericaTargetMarketExposureIndex-NR311Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:LinkedMorningstarDevelopedMarketsex-NorthAmericaTargetMarketExposureIndex-NR311Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:MorningstarDevelopedMarketsex-NorthAmericaDividendEnhancedSelectIndex-NR312Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:MorningstarDevelopedMarketsex-NorthAmericaDividendEnhancedSelectIndex-NR312Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:LinkedMorningstarDevelopedMarketsex-NorthAmericaDividendEnhancedSelectIndex-NR313Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053151Member cik0001655589:LinkedMorningstarDevelopedMarketsex-NorthAmericaDividendEnhancedSelectIndex-NR313Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:LinkedMorningstarDevelopedMarketsex-NorthAmericaDividendEnhancedSelectIndex-NR313Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:generallyandhaveadditionalheightenedrisksduetoalackofestablishedlegalpoliticalbusinessandsocialframeworkstosupportsecuritiesmarketsincluding2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:Regional2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:Chinesesecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:Dividend-OrientedCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:Semiconductorsandsemiconductorequipmentcompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:LargeCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2017-12-31 2017-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:MorningstarEmergingMarketsTargetMarketExposureIndex-NR314Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:MorningstarEmergingMarketsTargetMarketExposureIndex-NR314Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:MorningstarEmergingMarketsTargetMarketExposureIndex-NR314Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:LinkedMorningstarEmergingMarketsTargetMarketExposureIndex-NR315Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:LinkedMorningstarEmergingMarketsTargetMarketExposureIndex-NR315Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:LinkedMorningstarEmergingMarketsTargetMarketExposureIndex-NR315Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:MorningstarEmergingMarketsDividendEnhancedSelectIndex-NR316Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:MorningstarEmergingMarketsDividendEnhancedSelectIndex-NR316Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:LinkedMorningstarEmergingMarketsDividendEnhancedSelectIndex-NR317Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053152Member cik0001655589:LinkedMorningstarEmergingMarketsDividendEnhancedSelectIndex-NR317Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:LinkedMorningstarEmergingMarketsDividendEnhancedSelectIndex-NR317Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:Dividend-OrientedCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:Informationtechnologycompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:LargeCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2017-12-31 2017-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:MorningstarUSTargetMarketExposureIndex318Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:MorningstarUSTargetMarketExposureIndex318Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:MorningstarUSTargetMarketExposureIndex318Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:LinkedMorningstarUSTargetMarketExposureIndex319Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:LinkedMorningstarUSTargetMarketExposureIndex319Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:LinkedMorningstarUSTargetMarketExposureIndex319Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:MorningstarUSDividendEnhancedSelectIndex320Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:MorningstarUSDividendEnhancedSelectIndex320Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:LinkedMorningstarUSDividendEnhancedSelectIndex321Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053153Member cik0001655589:LinkedMorningstarUSDividendEnhancedSelectIndex321Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:LinkedMorningstarUSDividendEnhancedSelectIndex321Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000080763Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:C000243296Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:MortgageSecuritiesandAsset-BackedSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:When-IssuedandDelayedDeliveryTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:Liquidity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:VariableRateSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:CollateralizedLoanObligationsCLOs2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:Models2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:CashCashEquivalents2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:PortfolioTurnover2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:C000243296Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000080763Member cik0001655589:C000243296Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000080763Member cik0001655589:C000243296Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080763Member cik0001655589:C000243296Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:C000243296Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080763Member cik0001655589:C000243296Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:C000243296Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080763Member cik0001655589:BloombergUSAggregateIndex322Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080763Member cik0001655589:BloombergUSAggregateIndex322Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:ValueStyleInvesting2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:QuantitativeModels2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:Financialservicescompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:LargeCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:PortfolioTurnover2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2016-12-31 2016-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2017-12-31 2017-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member 2016-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member oef:AfterTaxesOnDistributionsMember 2016-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:C000235080Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:Russell3000Index323Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:Russell3000Index323Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:Russell3000Index323Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:Russell3000Index323Member 2016-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:Russell1000ValueIndex324Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:Russell1000ValueIndex324Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:Russell1000ValueIndex324Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:Russell1000ValueIndex324Member 2016-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:SP500Index325Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000075788Member cik0001655589:SP500Index325Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:SP500Index325Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000075788Member cik0001655589:SP500Index325Member 2016-01-01 2025-12-31 0001655589 cik0001655589:S000067392Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:ThematicInvesting2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:Consumerdiscretionarycompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:SmallandMidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:DevelopingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:Non-Diversification2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:Russell3000Index326Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067392Member cik0001655589:Russell3000Index326Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:Russell3000Index326Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000067393Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:ThematicInvesting2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:Healthcarecompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:SmallandMidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:DevelopingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:Non-Diversification2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:Russell3000Index327Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067393Member cik0001655589:Russell3000Index327Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:Russell3000Index327Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000067394Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:ThematicInvesting2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:Informationtechnologycompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:Semiconductorsandsemiconductorequipmentcompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:SmallandMidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:DevelopingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:Non-Diversification2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:Russell3000Index328Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000067394Member cik0001655589:Russell3000Index328Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:Russell3000Index328Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000070439Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:ThematicInvesting2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:Informationtechnologycompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:SmallandMidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:DevelopingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:Non-Diversification2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:REITs2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000070439Member cik0001655589:Russell3000Index329Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000070439Member cik0001655589:Russell3000Index329Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:Dividend-OrientedCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:Equity-LinkedNotesELNs2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:Strategy2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:ConvertibleSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:ValueStyleInvesting2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2017-12-31 2017-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:Russell3000Index330Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:Russell3000Index330Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:Russell3000Index330Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:MSCIUSAHighDividendYieldIndex331Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:MSCIUSAHighDividendYieldIndex331Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:MSCIUSAHighDividendYieldIndex331Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:SP500Index332Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053774Member cik0001655589:SP500Index332Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:SP500Index332Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053775Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:Extension2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:CollateralizedDebtObligationsCDOs2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:ConvertibleSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:QuantitativeModels2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:CashCashEquivalents2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2017-12-31 2017-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:BloombergUSAggregateIndex333Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:BloombergUSAggregateIndex333Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:BloombergUSAggregateIndex333Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:BloombergUSCorporate-InvestmentGradeIndex334Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053775Member cik0001655589:BloombergUSCorporate-InvestmentGradeIndex334Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:BloombergUSCorporate-InvestmentGradeIndex334Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057879Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:Liquidity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:TaxLegislativeandPoliticalChanges2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:Tax-ExemptSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:High-YieldDebtInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:States2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:MunicipalProjectFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:Prepayment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:Inflation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:ZeroCouponandDeferredInterestSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:BondInsurers2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:UnratedDebtSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:MunicipalLeaseObligations2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:BloombergMunicipalBondIndex335Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:BloombergMunicipalBondIndex335Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:BloombergMunicipalBondIndex335Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:BloombergMunicipal1-15YearIndex336Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057879Member cik0001655589:BloombergMunicipal1-15YearIndex336Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:BloombergMunicipal1-15YearIndex336Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057880Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:Liquidity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:TaxLegislativeandPoliticalChanges2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:Tax-ExemptSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:StatesandUSTerritories2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:GreenBonds2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:MunicipalProjectFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:Prepayment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:Inflation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:High-YieldDebtInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:ZeroCouponandDeferredInterestSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:BondInsurers2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:UnratedDebtSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:MunicipalLeaseObligations2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:BloombergMunicipalBondIndex337Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057880Member cik0001655589:BloombergMunicipalBondIndex337Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:BloombergMunicipalBondIndex337Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061946Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:High-YieldDebtInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:Liquidity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:CurrencyManagementStrategies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:Prepayment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:ConvertibleSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:FloatingRateCorporateInvestments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:QuantitativeModels2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:BloombergUSAggregateIndex338Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:BloombergUSAggregateIndex338Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:BloombergUSAggregateIndex338Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:ICEBofAUSHighYieldConstrainedIndex339Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061946Member cik0001655589:ICEBofAUSHighYieldConstrainedIndex339Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:ICEBofAUSHighYieldConstrainedIndex339Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061947Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:SovereignDebtSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:CurrencyManagementStrategies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Regional2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Europeansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Asiansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:MortgageSecuritiesandAsset-BackedSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:DevelopingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Chinesesecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:High-YieldDebtInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:CollateralizedDebtObligationsCDOs2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:ConvertibleSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:FloatingRateCorporateInvestments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Credit-LinkedSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:VariableRateSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:MortgageDollarRolls2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Liquidity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Prepayment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Extension2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Non-Diversification2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:CashCashEquivalents2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:QuantitativeModels2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:BloombergGlobalAggregateIndex340Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:BloombergGlobalAggregateIndex340Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:BloombergGlobalAggregateIndex340Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:BloombergGlobalAggregateex-USDIndexHedgedUSD341Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061947Member cik0001655589:BloombergGlobalAggregateex-USDIndexHedgedUSD341Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:BloombergGlobalAggregateex-USDIndexHedgedUSD341Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061948Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:FloatingRateCorporateInvestments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:conditionsthatarenotspecificallyrelatedtoaparticularissuersuchas2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:High-YieldDebtInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:ImpairmentofCollateral2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:Liquidity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:Prepayment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:VariableRateSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:CollateralizedLoanObligationsCLOs2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:CashCashEquivalents2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:BloombergUSAggregateIndex342Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:BloombergUSAggregateIndex342Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:BloombergUSAggregateIndex342Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:MorningstarLSTAUSLeveragedLoan100Index343Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000061948Member cik0001655589:MorningstarLSTAUSLeveragedLoan100Index343Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:MorningstarLSTAUSLeveragedLoan100Index343Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000066377Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:MortgageSecuritiesandAsset-BackedSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:CollateralizedDebtObligationsCDOs2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:Prepayment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:Extension2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:MortgageDollarRolls2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:When-IssuedandDelayedDeliveryTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:QuantitativeModels2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:BloombergUSAggregateIndex344Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066377Member cik0001655589:BloombergUSAggregateIndex344Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:BloombergUSAggregateIndex344Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000068596Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:MortgageSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:Inflation-IndexedSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:Prepayment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:Extension2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:When-IssuedandDelayedDeliveryTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:QuantitativeModels2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:PortfolioTurnover2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:BloombergUSAggregateIndex345Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:BloombergUSAggregateIndex345Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:BloombergUSAggregateIndex345Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:BloombergUSTreasuryIndex346Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068596Member cik0001655589:BloombergUSTreasuryIndex346Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:BloombergUSTreasuryIndex346Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000068139Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:VariableRateSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:Financialservicescompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:SovereignDebtSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:QuantitativeModels2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:CashCashEquivalents2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:BloombergUSAggregateIndex347Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:BloombergUSAggregateIndex347Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:BloombergUSAggregateIndex347Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:ICEBofAUS3-MonthTreasuryBillIndex348Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000068139Member cik0001655589:ICEBofAUS3-MonthTreasuryBillIndex348Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:ICEBofAUS3-MonthTreasuryBillIndex348Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:ManagementandAssetAllocation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:UseofLeverage2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:Liquidity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:QuantitativeModels2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:Commodities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:CurrencyManagementStrategies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:ShortPositions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:SmallandMidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:PortfolioTurnover2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:Russell3000Index349Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:Russell3000Index349Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:Russell3000Index349Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:BloombergUSAggregateIndex350Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:BloombergUSAggregateIndex350Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:BloombergUSAggregateIndex350Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:ICEBofAUS3-MonthTreasuryBillIndex351Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000066719Member cik0001655589:ICEBofAUS3-MonthTreasuryBillIndex351Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:ICEBofAUS3-MonthTreasuryBillIndex351Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000094832Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:C000263376Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:Dividend-OrientedCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:LargeCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:Technologycompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:Financialservicescompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:Healthcarecompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:SmallandMidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094832Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:Informationtechnologycompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:GrowthStyleInvesting2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:SmallandMidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:Non-Diversification2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2017-12-31 2017-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:Russell3000Index352Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:Russell3000Index352Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:Russell3000Index352Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:Russell1000GrowthIndex353Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080151Member cik0001655589:Russell1000GrowthIndex353Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:Russell1000GrowthIndex353Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000080465Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:C000242870Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Dividend-OrientedCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:High-YieldDebtInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Equity-LinkedNotesELNs2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:ConvertibleSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:LargeCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:MortgageSecuritiesandAsset-BackedSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:DevelopingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Liquidity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Prepayment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:ValueStyleInvesting2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:C000242870Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:C000242870Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:C000242870Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:C000242870Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:C000242870Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:C000242870Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:C000242870Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:Russell3000Index354Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Russell3000Index354Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:BloombergUSAggregateIndex355Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:BloombergUSAggregateIndex355Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:Blended50MSCIUSAHighDividendYieldIndex25BloombergHighYieldVeryLiquidIndex25BloombergUSAggregateIndex356Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000080465Member cik0001655589:Blended50MSCIUSAHighDividendYieldIndex25BloombergHighYieldVeryLiquidIndex25BloombergUSAggregateIndex356Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053154Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:Informationtechnologycompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:LargeCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2017-12-31 2017-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:MorningstarUSTargetMarketExposureIndex357Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:MorningstarUSTargetMarketExposureIndex357Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:MorningstarUSTargetMarketExposureIndex357Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:LinkedMorningstarUSTargetMarketExposureIndex358Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000053154Member cik0001655589:LinkedMorningstarUSTargetMarketExposureIndex358Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:LinkedMorningstarUSTargetMarketExposureIndex358Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000098522Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:C000268200Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:CurrencyInvestmentStrategies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:CurrencyManagementStrategies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:SovereignDebtSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:Regional2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:Liquidity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:VariableRateSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:High-YieldDebtInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:UnratedDebtSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:Non-Diversification2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:CashCashEquivalents2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:QuantitativeModels2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000098522Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:Australiansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:Bankingcompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:Metalsandminingcompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:FTSEAustraliaIndex-NR359Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:FTSEAustraliaIndex-NR359Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:FTSEAustraliaIndex-NR359Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:FTSEAustraliaCappedIndex-NR360Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059508Member cik0001655589:FTSEAustraliaCappedIndex-NR360Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:FTSEAustraliaCappedIndex-NR360Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059501Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:Braziliansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:PreferredSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:Financialservicescompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:FTSEBrazilIndex-NR361Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:FTSEBrazilIndex-NR361Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:FTSEBrazilIndex-NR361Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:FTSEBrazilCappedIndex-NR362Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059501Member cik0001655589:FTSEBrazilCappedIndex-NR362Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:FTSEBrazilCappedIndex-NR362Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059509Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:Canadiansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:Bankingcompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:FTSECanadaIndex-NR363Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:FTSECanadaIndex-NR363Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:FTSECanadaIndex-NR363Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:FTSECanadaCappedIndex-NR364Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059509Member cik0001655589:FTSECanadaCappedIndex-NR364Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:FTSECanadaCappedIndex-NR364Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059502Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:Chinesesecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:FTSEChinaIndex-NR365Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:FTSEChinaIndex-NR365Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:FTSEChinaIndex-NR365Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:FTSEChinaCappedIndex-NR366Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059502Member cik0001655589:FTSEChinaCappedIndex-NR366Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:FTSEChinaCappedIndex-NR366Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059511Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:Germansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:Industrialscompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:FTSEGermanyIndex-NR367Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:FTSEGermanyIndex-NR367Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:FTSEGermanyIndex-NR367Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:FTSEGermanyCappedIndex-NR368Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059511Member cik0001655589:FTSEGermanyCappedIndex-NR368Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:FTSEGermanyCappedIndex-NR368Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059503Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:Indiansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:Financialservicescompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:FTSEIndiaIndex-NR369Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:FTSEIndiaIndex-NR369Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:FTSEIndiaIndex-NR369Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:FTSEIndiaCappedIndex-NR370Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059503Member cik0001655589:FTSEIndiaCappedIndex-NR370Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:FTSEIndiaCappedIndex-NR370Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059514Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:Japanesesecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:Industrialscompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:FTSEJapanIndex-NRUSD371Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:FTSEJapanIndex-NRUSD371Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:FTSEJapanIndex-NRUSD371Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:FTSEJapanCappedIndex-NR372Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059514Member cik0001655589:FTSEJapanCappedIndex-NR372Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:FTSEJapanCappedIndex-NR372Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000063035Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:LatinAmericansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:Braziliansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:Mexicansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:PreferredSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:Financialservicescompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:FTSELatinAmericaIndex373Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:FTSELatinAmericaIndex373Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:FTSELatinAmericaIndex373Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:FTSELatinAmericaCappedIndex-NR374Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063035Member cik0001655589:FTSELatinAmericaCappedIndex-NR374Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:FTSELatinAmericaCappedIndex-NR374Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059504Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:Mexicansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:Consumerstaplescompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:FTSEMexicoIndex-NR375Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:FTSEMexicoIndex-NR375Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:FTSEMexicoIndex-NR375Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:FTSEMexicoCappedIndex-NR376Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059504Member cik0001655589:FTSEMexicoCappedIndex-NR376Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:FTSEMexicoCappedIndex-NR376Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000063031Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:SaudiArabiansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:Bankingcompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:FTSEAllWorldIndex-NR377Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:FTSEAllWorldIndex-NR377Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:FTSEAllWorldIndex-NR377Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:FTSESaudiArabiaCappedIndex-NR378Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000063031Member cik0001655589:FTSESaudiArabiaCappedIndex-NR378Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:FTSESaudiArabiaCappedIndex-NR378Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059497Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:SouthKoreansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:Semiconductorsandsemiconductorequipmentcompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:FTSESouthKoreaIndex-NR379Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:FTSESouthKoreaIndex-NR379Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:FTSESouthKoreaIndex-NR379Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:FTSESouthKoreaCappedIndex-NR380Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059497Member cik0001655589:FTSESouthKoreaCappedIndex-NR380Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:FTSESouthKoreaCappedIndex-NR380Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059498Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:Swisssecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:Pharmaceuticalcompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:FTSESwitzerlandIndex-NR381Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:FTSESwitzerlandIndex-NR381Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:FTSESwitzerlandIndex-NR381Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:FTSESwitzerlandCappedIndex-NR382Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059498Member cik0001655589:FTSESwitzerlandCappedIndex-NR382Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:FTSESwitzerlandCappedIndex-NR382Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059507Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:Taiwanesesecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:Semiconductorsandsemiconductorequipmentcompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:Electronicequipmentinstrumentsandcomponentscompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:FTSETaiwanIndex-NR383Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:FTSETaiwanIndex-NR383Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:FTSETaiwanIndex-NR383Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:FTSETaiwanCappedIndex-NR384Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059507Member cik0001655589:FTSETaiwanCappedIndex-NR384Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:FTSETaiwanCappedIndex-NR384Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059499Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:UnitedKingdomsecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:Financialservicescompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:FTSEUKIndex-NR385Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:FTSEUKIndex-NR385Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:FTSEUKIndex-NR385Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:FTSEUKCappedIndex-NR386Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059499Member cik0001655589:FTSEUKCappedIndex-NR386Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:FTSEUKCappedIndex-NR386Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059500Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:Regional2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:Asiansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:Chinesesecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:Semiconductorsandsemiconductorequipmentcompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:FTSEAsiaPacificexJapanAustraliaandNewZealandIndex-NR387Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:FTSEAsiaPacificexJapanAustraliaandNewZealandIndex-NR387Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:FTSEAsiaPacificexJapanAustraliaandNewZealandIndex-NR387Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:FTSEAsiaexJapanCappedIndex-NR388Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059500Member cik0001655589:FTSEAsiaexJapanCappedIndex-NR388Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:FTSEAsiaexJapanCappedIndex-NR388Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059495Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:Regional2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:Europeansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:FTSEDevelopedEuropeIndex-NR389Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:FTSEDevelopedEuropeIndex-NR389Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:FTSEDevelopedEuropeIndex-NR389Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:FTSEDevelopedEuropeCappedIndex-NR390Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059495Member cik0001655589:FTSEDevelopedEuropeCappedIndex-NR390Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:FTSEDevelopedEuropeCappedIndex-NR390Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059506Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:Regional2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:Europeansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:Financialservicescompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:FTSEDevelopedEurozoneIndex-NR391Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:FTSEDevelopedEurozoneIndex-NR391Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:LinkedFTSEDevelopedEurozoneIndex-NR392Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059506Member cik0001655589:LinkedFTSEDevelopedEurozoneIndex-NR392Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:LinkedFTSEDevelopedEurozoneIndex-NR392Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059496Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:CurrencyHedging2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:Japanesesecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:CalculationMethodology2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:Index-Related2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:Non-Correlation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:TrackingError2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:Industrialscompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:ChangeinDiversificationStatus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:PassiveInvestment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2018-12-31 2018-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:FTSEJapanIndex-NRJPY393Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:FTSEJapanIndex-NRJPY393Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:FTSEJapanIndex-NRJPY393Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:FTSEJapanCappedHedgedIndex-NR394Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059496Member cik0001655589:FTSEJapanCappedHedgedIndex-NR394Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:FTSEJapanCappedHedgedIndex-NR394Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000094328Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:C000262830Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:High-YieldDebtInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:MortgageSecuritiesandAsset-BackedSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:DevelopingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:SovereignDebtSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:Prepayment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:Extension2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:CollateralizedDebtObligationsCDOs2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:Inflation-IndexedSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:FloatingRateCorporateInvestments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:VariableRateSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:When-IssuedandDelayedDeliveryTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:MortgageDollarRolls2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:Inflation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:Liquidity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:CashCashEquivalents2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:UnratedDebtSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000094328Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:RisksRelatedtoRussiasInvasionofUkraine2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:IlliquidInvestments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:GeographicFocus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:Valuation2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:Concentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:Non-Diversification2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member 2019-12-31 2019-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member 2020-12-31 2020-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member 2021-12-31 2021-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member 2022-12-31 2022-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member 2023-12-31 2023-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member oef:AfterTaxesOnDistributionsMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-01 2025-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:FTSERussiaCappedIndex-NR395Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000059505Member cik0001655589:FTSERussiaCappedIndex-NR395Member 2021-01-01 2025-12-31 0001655589 cik0001655589:S000095581Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:C000264308Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:DevelopingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:MidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:LargeCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:InvestmentCompanySecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:Equity-LinkedNotesELNs2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:Non-Diversification2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095581Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:C000264307Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:Regional2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:Europeansecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:DevelopingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:SmallandMidCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:Non-Diversification2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000095580Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:C000243867Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:InterestRate2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:Credit2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:MortgageSecuritiesandAsset-BackedSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:Income2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:Prepayment2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:Extension2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:EmergingMarketCountries2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:FloatingRateCorporateInvestments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:ImpairmentofCollateral2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:High-YieldDebtInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:When-IssuedandDelayedDeliveryTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:Credit-LinkedSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:VariableRateSecurities2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:CashCashEquivalents2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:PortfolioTurnover2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:CashTransactions2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:C000243867Member 2024-12-31 2024-12-31 0001655589 cik0001655589:S000081195Member cik0001655589:C000243867Member 2025-12-31 2025-12-31 0001655589 cik0001655589:S000081195Member cik0001655589:C000243867Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000081195Member cik0001655589:C000243867Member oef:AfterTaxesOnDistributionsMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:C000243867Member oef:AfterTaxesOnDistributionsMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000081195Member cik0001655589:C000243867Member oef:AfterTaxesOnDistributionsAndSalesMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:C000243867Member oef:AfterTaxesOnDistributionsAndSalesMember 2025-01-01 2025-12-31 0001655589 cik0001655589:S000081195Member cik0001655589:BloombergUSAggregateIndex396Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000081195Member cik0001655589:BloombergUSAggregateIndex396Member 2025-01-01 2025-12-31 0001655589 cik0001655589:S000097279Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:C000266461Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:PrincipalRisks2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member oef:RiskLoseMoneyMember 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:Market2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:Multi-FactorStockSelectionProcess2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:Qualityfactor2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:Valuefactor2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:Sentimentfactor2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:Alternativefactor2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:Convictionfactor2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:SmallCapitalizationCompanies2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:Focus2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:DerivativeInstruments2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:ForeignSecuritiesnon-US2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:Management2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:QuantitativeModels2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:Cybersecurity2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:DepositaryReceipts2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:MarketTrading2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:AuthorizedParticipantConcentration2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:SmallFund2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000097279Member cik0001655589:LargeShareholder2Member 2026-03-31 2026-03-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member oef:AfterTaxesOnDistributionsMember 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:C000181968Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:Russell3000Index31Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:Russell1000Index32Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057200Member cik0001655589:LibertyQUSLargeCapEquityIndex33Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member oef:AfterTaxesOnDistributionsMember 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:C000181969Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:Russell3000Index34Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:RussellMidcapIndex35Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057201Member cik0001655589:LibertyQUSMidCapEquityIndex36Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member oef:AfterTaxesOnDistributionsMember 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:C000181970Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:Russell3000Index37Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:Russell2000Index38Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000057202Member cik0001655589:LibertyQUSSmallCapEquityIndex39Member 2017-04-26 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member oef:AfterTaxesOnDistributionsMember 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:C000167258Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:LinkedMorningstarDevelopedMarketsex-NorthAmericaTargetMarketExposureIndex-NR311Member 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053151Member cik0001655589:LinkedMorningstarDevelopedMarketsex-NorthAmericaDividendEnhancedSelectIndex-NR313Member 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member oef:AfterTaxesOnDistributionsMember 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:C000167259Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:LinkedMorningstarEmergingMarketsTargetMarketExposureIndex-NR315Member 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053152Member cik0001655589:LinkedMorningstarEmergingMarketsDividendEnhancedSelectIndex-NR317Member 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member oef:AfterTaxesOnDistributionsMember 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:C000167260Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:LinkedMorningstarUSTargetMarketExposureIndex319Member 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053153Member cik0001655589:LinkedMorningstarUSDividendEnhancedSelectIndex321Member 2016-06-01 2025-12-31 0001655589 cik0001655589:S000080763Member cik0001655589:C000243296Member 2023-07-25 2025-12-31 0001655589 cik0001655589:S000080763Member cik0001655589:C000243296Member oef:AfterTaxesOnDistributionsMember 2023-07-25 2025-12-31 0001655589 cik0001655589:S000080763Member cik0001655589:C000243296Member oef:AfterTaxesOnDistributionsAndSalesMember 2023-07-25 2025-12-31 0001655589 cik0001655589:S000080763Member cik0001655589:BloombergUSAggregateIndex322Member 2023-07-25 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member 2020-02-25 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member oef:AfterTaxesOnDistributionsMember 2020-02-25 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:C000216719Member oef:AfterTaxesOnDistributionsAndSalesMember 2020-02-25 2025-12-31 0001655589 cik0001655589:S000067392Member cik0001655589:Russell3000Index326Member 2020-02-25 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member 2020-02-25 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member oef:AfterTaxesOnDistributionsMember 2020-02-25 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:C000216720Member oef:AfterTaxesOnDistributionsAndSalesMember 2020-02-25 2025-12-31 0001655589 cik0001655589:S000067393Member cik0001655589:Russell3000Index327Member 2020-02-25 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member 2020-02-25 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member oef:AfterTaxesOnDistributionsMember 2020-02-25 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:C000216721Member oef:AfterTaxesOnDistributionsAndSalesMember 2020-02-25 2025-12-31 0001655589 cik0001655589:S000067394Member cik0001655589:Russell3000Index328Member 2020-02-25 2025-12-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member 2021-01-12 2025-12-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member oef:AfterTaxesOnDistributionsMember 2021-01-12 2025-12-31 0001655589 cik0001655589:S000070439Member cik0001655589:C000223928Member oef:AfterTaxesOnDistributionsAndSalesMember 2021-01-12 2025-12-31 0001655589 cik0001655589:S000070439Member cik0001655589:Russell3000Index329Member 2021-01-12 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member 2016-09-20 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member oef:AfterTaxesOnDistributionsMember 2016-09-20 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:C000169124Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-09-20 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:Russell3000Index330Member 2016-09-20 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:MSCIUSAHighDividendYieldIndex331Member 2016-09-20 2025-12-31 0001655589 cik0001655589:S000053774Member cik0001655589:SP500Index332Member 2016-09-20 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member 2016-10-03 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member oef:AfterTaxesOnDistributionsMember 2016-10-03 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:C000169125Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-10-03 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:BloombergUSAggregateIndex333Member 2016-10-03 2025-12-31 0001655589 cik0001655589:S000053775Member cik0001655589:BloombergUSCorporate-InvestmentGradeIndex334Member 2016-10-03 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member 2017-08-31 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member oef:AfterTaxesOnDistributionsMember 2017-08-31 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:C000187842Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-08-31 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:BloombergMunicipalBondIndex335Member 2017-08-31 2025-12-31 0001655589 cik0001655589:S000057879Member cik0001655589:BloombergMunicipal1-15YearIndex336Member 2017-08-31 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member 2017-08-31 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member oef:AfterTaxesOnDistributionsMember 2017-08-31 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:C000187843Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-08-31 2025-12-31 0001655589 cik0001655589:S000057880Member cik0001655589:BloombergMunicipalBondIndex337Member 2017-08-31 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member oef:AfterTaxesOnDistributionsMember 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:C000200689Member oef:AfterTaxesOnDistributionsAndSalesMember 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:BloombergUSAggregateIndex338Member 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061946Member cik0001655589:ICEBofAUSHighYieldConstrainedIndex339Member 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member oef:AfterTaxesOnDistributionsMember 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:C000200690Member oef:AfterTaxesOnDistributionsAndSalesMember 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:BloombergGlobalAggregateIndex340Member 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061947Member cik0001655589:BloombergGlobalAggregateex-USDIndexHedgedUSD341Member 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member oef:AfterTaxesOnDistributionsMember 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:C000200691Member oef:AfterTaxesOnDistributionsAndSalesMember 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:BloombergUSAggregateIndex342Member 2018-05-30 2025-12-31 0001655589 cik0001655589:S000061948Member cik0001655589:MorningstarLSTAUSLeveragedLoan100Index343Member 2018-05-30 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member 2019-09-17 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member oef:AfterTaxesOnDistributionsMember 2019-09-17 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:C000214198Member oef:AfterTaxesOnDistributionsAndSalesMember 2019-09-17 2025-12-31 0001655589 cik0001655589:S000066377Member cik0001655589:BloombergUSAggregateIndex344Member 2019-09-17 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member 2020-06-09 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member oef:AfterTaxesOnDistributionsMember 2020-06-09 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:C000219501Member oef:AfterTaxesOnDistributionsAndSalesMember 2020-06-09 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:BloombergUSAggregateIndex345Member 2020-06-09 2025-12-31 0001655589 cik0001655589:S000068596Member cik0001655589:BloombergUSTreasuryIndex346Member 2020-06-09 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member 2020-07-14 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member oef:AfterTaxesOnDistributionsMember 2020-07-14 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:C000218231Member oef:AfterTaxesOnDistributionsAndSalesMember 2020-07-14 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:BloombergUSAggregateIndex347Member 2020-07-14 2025-12-31 0001655589 cik0001655589:S000068139Member cik0001655589:ICEBofAUS3-MonthTreasuryBillIndex348Member 2020-07-14 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member 2019-12-18 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member oef:AfterTaxesOnDistributionsMember 2019-12-18 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:C000215016Member oef:AfterTaxesOnDistributionsAndSalesMember 2019-12-18 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:Russell3000Index349Member 2019-12-18 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:BloombergUSAggregateIndex350Member 2019-12-18 2025-12-31 0001655589 cik0001655589:S000066719Member cik0001655589:ICEBofAUS3-MonthTreasuryBillIndex351Member 2019-12-18 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member 2016-04-13 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member oef:AfterTaxesOnDistributionsMember 2016-04-13 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:C000241824Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-04-13 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:Russell3000Index352Member 2016-04-13 2025-12-31 0001655589 cik0001655589:S000080151Member cik0001655589:Russell1000GrowthIndex353Member 2016-04-13 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:C000242870Member 2023-06-06 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:C000242870Member oef:AfterTaxesOnDistributionsMember 2023-06-06 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:C000242870Member oef:AfterTaxesOnDistributionsAndSalesMember 2023-06-06 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:Russell3000Index354Member 2023-06-06 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:BloombergUSAggregateIndex355Member 2023-06-06 2025-12-31 0001655589 cik0001655589:S000080465Member cik0001655589:Blended50MSCIUSAHighDividendYieldIndex25BloombergHighYieldVeryLiquidIndex25BloombergUSAggregateIndex356Member 2023-06-06 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member oef:AfterTaxesOnDistributionsMember 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:C000167261Member oef:AfterTaxesOnDistributionsAndSalesMember 2016-06-01 2025-12-31 0001655589 cik0001655589:S000053154Member cik0001655589:LinkedMorningstarUSTargetMarketExposureIndex358Member 2016-06-01 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member oef:AfterTaxesOnDistributionsMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:C000194942Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:FTSEAustraliaIndex-NR359Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059508Member cik0001655589:FTSEAustraliaCappedIndex-NR360Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member 2017-11-03 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member oef:AfterTaxesOnDistributionsMember 2017-11-03 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:C000194935Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-03 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:FTSEBrazilIndex-NR361Member 2017-11-03 2025-12-31 0001655589 cik0001655589:S000059501Member cik0001655589:FTSEBrazilCappedIndex-NR362Member 2017-11-03 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member oef:AfterTaxesOnDistributionsMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:C000194943Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:FTSECanadaIndex-NR363Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059509Member cik0001655589:FTSECanadaCappedIndex-NR364Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member oef:AfterTaxesOnDistributionsMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:C000194936Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:FTSEChinaIndex-NR365Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059502Member cik0001655589:FTSEChinaCappedIndex-NR366Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member oef:AfterTaxesOnDistributionsMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:C000194945Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:FTSEGermanyIndex-NR367Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059511Member cik0001655589:FTSEGermanyCappedIndex-NR368Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member oef:AfterTaxesOnDistributionsMember 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:C000194937Member oef:AfterTaxesOnDistributionsAndSalesMember 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:FTSEIndiaIndex-NR369Member 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059503Member cik0001655589:FTSEIndiaCappedIndex-NR370Member 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member oef:AfterTaxesOnDistributionsMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:C000194948Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:FTSEJapanIndex-NRUSD371Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059514Member cik0001655589:FTSEJapanCappedIndex-NR372Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member 2018-10-09 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member oef:AfterTaxesOnDistributionsMember 2018-10-09 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:C000204491Member oef:AfterTaxesOnDistributionsAndSalesMember 2018-10-09 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:FTSELatinAmericaIndex373Member 2018-10-09 2025-12-31 0001655589 cik0001655589:S000063035Member cik0001655589:FTSELatinAmericaCappedIndex-NR374Member 2018-10-09 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member 2017-11-03 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member oef:AfterTaxesOnDistributionsMember 2017-11-03 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:C000194938Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-03 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:FTSEMexicoIndex-NR375Member 2017-11-03 2025-12-31 0001655589 cik0001655589:S000059504Member cik0001655589:FTSEMexicoCappedIndex-NR376Member 2017-11-03 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member 2018-10-09 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member oef:AfterTaxesOnDistributionsMember 2018-10-09 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:C000204487Member oef:AfterTaxesOnDistributionsAndSalesMember 2018-10-09 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:FTSEAllWorldIndex-NR377Member 2018-10-09 2025-12-31 0001655589 cik0001655589:S000063031Member cik0001655589:FTSESaudiArabiaCappedIndex-NR378Member 2018-10-09 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member oef:AfterTaxesOnDistributionsMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:C000194931Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:FTSESouthKoreaIndex-NR379Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059497Member cik0001655589:FTSESouthKoreaCappedIndex-NR380Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member oef:AfterTaxesOnDistributionsMember 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:C000194932Member oef:AfterTaxesOnDistributionsAndSalesMember 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:FTSESwitzerlandIndex-NR381Member 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059498Member cik0001655589:FTSESwitzerlandCappedIndex-NR382Member 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member oef:AfterTaxesOnDistributionsMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:C000194941Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:FTSETaiwanIndex-NR383Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059507Member cik0001655589:FTSETaiwanCappedIndex-NR384Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member oef:AfterTaxesOnDistributionsMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:C000194933Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:FTSEUKIndex-NR385Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059499Member cik0001655589:FTSEUKCappedIndex-NR386Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member oef:AfterTaxesOnDistributionsMember 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:C000194934Member oef:AfterTaxesOnDistributionsAndSalesMember 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:FTSEAsiaPacificexJapanAustraliaandNewZealandIndex-NR387Member 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059500Member cik0001655589:FTSEAsiaexJapanCappedIndex-NR388Member 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member oef:AfterTaxesOnDistributionsMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:C000194929Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:FTSEDevelopedEuropeIndex-NR389Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059495Member cik0001655589:FTSEDevelopedEuropeCappedIndex-NR390Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member oef:AfterTaxesOnDistributionsMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:C000194940Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:FTSEDevelopedEurozoneIndex-NR391Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059506Member cik0001655589:LinkedFTSEDevelopedEurozoneIndex-NR392Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member oef:AfterTaxesOnDistributionsMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:C000194930Member oef:AfterTaxesOnDistributionsAndSalesMember 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:FTSEJapanIndex-NRJPY393Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059496Member cik0001655589:FTSEJapanCappedHedgedIndex-NR394Member 2017-11-02 2025-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member oef:AfterTaxesOnDistributionsMember 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:C000194939Member oef:AfterTaxesOnDistributionsAndSalesMember 2018-02-06 2025-12-31 0001655589 cik0001655589:S000059505Member cik0001655589:FTSERussiaCappedIndex-NR395Member 2018-02-06 2025-12-31 0001655589 cik0001655589:S000081195Member cik0001655589:C000243867Member 2023-09-19 2025-12-31 0001655589 cik0001655589:S000081195Member cik0001655589:C000243867Member oef:AfterTaxesOnDistributionsMember 2023-09-19 2025-12-31 0001655589 cik0001655589:S000081195Member cik0001655589:C000243867Member oef:AfterTaxesOnDistributionsAndSalesMember 2023-09-19 2025-12-31 0001655589 cik0001655589:S000081195Member cik0001655589:BloombergUSAggregateIndex396Member 2023-09-19 2025-12-31 iso4217:USD pure N-1A Franklin Templeton ETF Trust 2026-08-01 Franklin U.S. Large Cap Multifactor Index ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Large Cap Equity Index (the U.S. Large Cap Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0015 0 0.0000 0.0015 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 15 48 85 191 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 52% of the average value of its portfolio.</p> 0.52 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the U.S. Large Cap Underlying Index. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the U.S. Large Cap Underlying Index are included in the Fund’s 80% basket. The U.S. Large Cap Underlying Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell. The U.S. Large Cap Underlying Index is based on the Russell 1000^® Index (Parent Index) and is constructed by applying a multi-factor methodology to the Parent Index. The Parent Index is a subset of the Russell 3000^® Index and is designed to measure the performance of large capitalization stocks in the United States. It includes approximately 1,000 of the largest issuers based on a combination of their market cap and current index membership. As of May 31, 2026, the Parent Index represented approximately 95% of the total market capitalization of the Russell 3000^® Index. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The U.S. Large Cap Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Parent Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Parent Index that have favorable exposure to three investment style factors – quality, value and momentum. The “quality” factor incorporates measurements such as return on equity, earnings variability, cash return on assets, return on assets, operating cash flow to sales, and leverage. The “value” factor incorporates measurements such as price to book value, dividend yield, earnings yield, and forward earnings yield. The “momentum” factor incorporates measurements such as 6-month risk adjusted price momentum and 12-month risk adjusted price momentum. Factors are common characteristics that relate to a group of issuers or securities that are important in explaining the returns and risks of those issuers’ securities. In constructing the U.S. Large Cap Underlying Index, each security in the Parent Index with a weight of 1% or greater is selected for inclusion. The aggregate weight of these securities in the U.S. Large Cap Underlying Index will represent the same total weight as the sum of their benchmark weights. The remaining constituents of the Parent Index (i.e., securities </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">with a weight of less than 1% of the benchmark) are assigned a composite factor score and the top 20% of such securities with the highest factor scores are also selected for inclusion. The final weighting of all securities selected for inclusion in the U.S. Large Cap Underlying Index is determined based upon their benchmark weight multiplied by their composite factor score, subject to preestablished minimum and maximum weight constraints. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">At the time of each quarterly reconstitution of the U.S. Large Cap Underlying Index, the maximum and minimum weight of each security included in the U.S. Large Cap Underlying Index will be capped at a limit based on the weight of the particular security in the Parent Index. The U.S. Large Cap Underlying Index is also constrained in its construction to limit turnover of constituent securities at each quarterly reconstitution. As of May 31, 2026, the U.S. Large Cap Underlying Index was comprised of 211 securities with capitalizations ranging from $1.89 billion to $3.42 trillion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the U.S. Large Cap Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the U.S. Large Cap Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the U.S. Large Cap Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the U.S. Large Cap Underlying 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 U.S. Large Cap Underlying Index, but may not track the U.S. Large Cap Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire U.S. Large Cap Underlying Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the U.S. Large Cap Underlying Index, including securities that resemble those included in the U.S. Large Cap Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund’s portfolio is reconstituted quarterly following the quarterly reconstitution of the U.S. Large Cap Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income (i.e., gain equity market exposure and maintain liquidity until the Fund invests in individual securities), simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the U.S. Large Cap Underlying Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the U.S. Large Cap Underlying Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the U.S. Large Cap Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the U.S. Large Cap Underlying Index is concentrated. As of May 31, 2026, the U.S. Large Cap Underlying Index was concentrated in the information technology sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the U.S. Large Cap Underlying Index. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the U.S. Large Cap Underlying Index The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the U.S. Large Cap Underlying Index are included in the Fund’s 80% basket. The U.S. Large Cap Underlying Index is a systematic, rules-based proprietary index maintained and calculated by FTSE Russell. The U.S. Large Cap Underlying Index is based on the Russell 1000^® Index (Parent Index) and is constructed by applying a multi-factor methodology to the Parent Index. The Parent Index is a subset of the Russell 3000^® Index and is designed to measure the performance of large capitalization stocks in the United States. It includes approximately 1,000 of the largest issuers based on a combination of their market cap and current index membership. As of May 31, 2026, the Parent Index represented approximately 95% of the total market capitalization of the Russell 3000^® Index. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Investment Style Factors:</span><span style="font-size:10.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">There can be no assurance that the multi-factor stock selection process of the U.S. Large Cap Underlying Index will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies may fall out of favor with investors based on market and economic conditions. Large capitalization companies may underperform relative to small and mid capitalization companies because they may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The U.S. Large Cap Underlying Index relies on various sources of information to assess the criteria of issuers included in the U.S. Large Cap Underlying Index (or the FTSE Russell index on which it is based), including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that the U.S. Large Cap Underlying Index's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the U.S. Large Cap Underlying Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the U.S. Large Cap Underlying Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the U.S. Large Cap Underlying Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the U.S. Large Cap Underlying Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the U.S. Large Cap Underlying Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the U.S. Large Cap Underlying Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the U.S. Large Cap Underlying Index. In addition, the Fund’s NAV may deviate from the U.S. Large Cap Underlying Index if the Fund fair values a portfolio security at a price other than the price used by the U.S. Large Cap Underlying Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the U.S. Large Cap Underlying Index as well as it would have if the Fund held all of the securities in the U.S. Large Cap Underlying Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the U.S. Large Cap Underlying Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the U.S. Large Cap Underlying Index, pricing differences, transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the U.S. Large Cap Underlying Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the U.S. Large Cap Underlying Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Information technology companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies in the information technology sector have historically been volatile due to the rapid pace of product change and development within the sector. For example, their products and services may not </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">prove commercially successful or may become obsolete quickly. In addition, delays in or cancellation of the release of anticipated products or services may also affect the price of an information technology company’s stock. Information technology companies are subject to significant competitive pressures, such as new market entrants, aggressive pricing and tight profit margins. The activities of these companies may also be adversely affected by changes in government regulations, worldwide technological developments (including the development of artificial intelligence and machine learning) or investor perception of a company and/or its products or services. The stock prices of companies operating within this sector may be subject to abrupt or erratic movements.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying security, interest rate or index, and such derivatives often have risks similar to the 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 significantly exceeds the Fund’s initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not realize the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the U.S. Large Cap Underlying Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the U.S. Large Cap Underlying Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the U.S. Large Cap Underlying Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">trading volume on the listing exchange and may, therefore, have a material upward or downward effect on the market price of the shares.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance, an additional index and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">16.80%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-20.81%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 13.67%.</p></td></tr></table> Best Quarter 2020-06-30 0.1680 Worst Quarter 2020-03-31 -0.2081 As of June 30, 2026, the Fund’s year-to-date return was 13.67%. 2026-06-30 0.1367 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.1977 0.1467 0.1421 Return after taxes on distributions 0.1944 0.1424 0.1363 Return after taxes on distributions and sale of Fund shares 0.1192 0.1170 0.1160 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.1315 0.1412 Russell 1000® Index 0.1737 0.1359 0.1452 LibertyQ U.S. Large Cap Equity Index 0.1996 0.1484 0.1440 Franklin U.S. Mid Cap Multifactor Index ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Mid Cap Equity Index (the U.S. Mid Cap Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0030 0 0.0000 0.0030 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 31 97 169 380 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 25% of the average value of its portfolio.</p> 0.25 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the U.S. Mid Cap Underlying Index. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the U.S. Mid Cap Underlying Index are included in the Fund’s 80% basket. The U.S. Mid Cap Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell. The U.S. Mid Cap Underlying Index is based on the Russell Midcap^® Index (Parent Index) and is constructed by applying a multi-factor methodology to the Parent Index. The Parent Index is a subset of the Russell 1000^® Index and is designed to measure the performance of mid-capitalization stocks in the United States. It includes approximately 800 of the smallest issuers in the Russell 1000^® Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The U.S. Mid Cap Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Parent Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Parent Index that have favorable exposure to four investment style factors – quality, value, momentum and low volatility. Factors are common characteristics that relate to a group of issuers or securities that are important in explaining the returns and risks of those issuers’ securities. The “quality” factor incorporates measurements such as return on equity, gross profit over assets, cash return on assets, gross margin sustainability, and return on asset sustainability. The “value” factor incorporates measurements such as forward earnings yield, EBITDA to enterprise value, price to book value and dividend yield. The “momentum” factor incorporates measurements such as 6-month risk adjusted price momentum and 12-month risk-adjusted price momentum. The “low volatility” factor incorporates measurements such as historical beta (i.e., a measure of the volatility of a security relative to the total market).</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">At the time of each semi-annual reconstitution of the U.S. Mid Cap Underlying Index, no company shall comprise more than 1% of the U.S. Mid Cap Underlying Index. The U.S. Mid Cap Underlying Index is also constrained in its construction to limit turnover of constituent securities at each semi-annual reconstitution. As of </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">May 31, 2026, the U.S. Mid Cap Underlying Index was comprised of 201 securities with capitalizations ranging from $911 million to $56.93 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the U.S. Mid Cap Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the U.S. Mid Cap Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the U.S. Mid Cap Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the U.S. Mid Cap Underlying 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 U.S. Mid Cap Underlying Index, but may not track the U.S. Mid Cap Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire U.S. Mid Cap Underlying Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the U.S. Mid Cap Underlying Index, including securities that resemble those included in the U.S. Mid Cap Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund’s portfolio is reconstituted semi-annually following the semi-annual reconstitution of the U.S. Mid Cap Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income (i.e., gain equity market exposure and maintain liquidity until the Fund invests in individual securities), simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the U.S. Mid Cap Underlying Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the U.S. Mid Cap Underlying Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the U.S. Mid Cap Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the U.S. Mid Cap Underlying Index is concentrated.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the U.S. Mid Cap Underlying Index. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the U.S. Mid Cap Underlying Index The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the U.S. Mid Cap Underlying Index are included in the Fund’s 80% basket. The U.S. Mid Cap Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell. The U.S. Mid Cap Underlying Index is based on the Russell Midcap^® Index (Parent Index) and is constructed by applying a multi-factor methodology to the Parent Index. The Parent Index is a subset of the Russell 1000^® Index and is designed to measure the performance of mid-capitalization stocks in the United States. It includes approximately 800 of the smallest issuers in the Russell 1000^® Index. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Investment Style Factors:</span><span style="font-size:10.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">There can be no assurance that the multi-factor stock selection process of the U.S. Mid Cap Underlying Index will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. Such risks may include greater sensitivity to economic </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The U.S. Mid Cap Underlying Index relies on various sources of information to assess the criteria of issuers included in the U.S. Mid Cap Underlying Index (or the FTSE Russell index on which it is based), including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that the U.S. Mid Cap Underlying Index's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the U.S. Mid Cap Underlying Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the U.S. Mid Cap Underlying Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the U.S. Mid Cap Underlying Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the U.S. Mid Cap Underlying Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the U.S. Mid Cap Underlying Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the U.S. Mid Cap Underlying Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the U.S. Mid Cap Underlying Index. In addition, the Fund’s NAV may deviate from the U.S. Mid Cap Underlying Index if the Fund fair values a portfolio security at a price other than the price used by the U.S. Mid Cap Underlying Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the U.S. Mid Cap Underlying Index as well as it would have if the Fund held all of the securities in the U.S. Mid Cap Underlying Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the U.S. Mid Cap Underlying Index. Tracking error may occur because of </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">differences between the securities held in the Fund’s portfolio and those included in the U.S. Mid Cap Underlying Index, pricing differences, transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the U.S. Mid Cap Underlying Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the U.S. Mid Cap Underlying Index does not.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying security, interest rate or index, and such derivatives often have risks similar to the 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 significantly exceeds the Fund’s initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not realize the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the U.S. Mid Cap Underlying Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the U.S. Mid Cap Underlying Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the U.S. Mid Cap Underlying Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance, an additional index and the Fund's underlying index. The Fund's past performance (before and after taxes) is not necessarily an </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">indication of how the Fund will perform in the future. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">22.55%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-24.92%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 3.75%.</p></td></tr></table> Best Quarter 2020-06-30 0.2255 Worst Quarter 2020-03-31 -0.2492 As of June 30, 2026, the Fund’s year-to-date return was 3.75%. 2026-06-30 0.0375 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0536 0.0963 0.1105 Return after taxes on distributions 0.0497 0.0927 0.1060 Return after taxes on distributions and sale of Fund shares 0.0342 0.0758 0.0891 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.1315 0.1412 Russell Midcap Index 0.1060 0.0868 0.1029 LibertyQ U.S. Mid Cap Equity Index 0.0568 0.0995 0.1137 Franklin U.S. Small Cap Multifactor Index ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the LibertyQ U.S. Small Cap Equity Index (the U.S. Small Cap Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0035 0 0.0000 0.0035 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 36 112 196 443 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 23% of the average value of its portfolio.</p> 0.23 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the U.S. Small Cap Underlying Index. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the U.S. Small Cap Underlying Index are included in the Fund’s 80% basket. The U.S. Small Cap Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell. The U.S. Small Cap Underlying Index is based on the Russell 2000^® Index (Parent Index) and is constructed by applying a multi-factor methodology to the Parent Index. The Parent Index is a subset of the Russell 3000^® Index and is designed to measure the performance of small capitalization stocks in the United States. It includes approximately 2000 of the smallest issuers in the Russell 3000^® Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The U.S. Small Cap Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Parent Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Parent Index that have favorable exposure to four investment style factors – quality, value, momentum and low volatility. Factors are common characteristics that relate to a group of issuers or securities that are important in explaining the returns and risks of those issuers’ securities. The “quality” factor incorporates measurements such as return on equity, gross profit over assets, cash return on assets, gross margin sustainability, and return on asset sustainability. The “value” factor incorporates measurements such as forward earnings yield, EBITDA to enterprise value, price to book value and dividend yield. The “momentum” factor incorporates measurements such as 6-month risk adjusted price momentum and 12-month risk-adjusted price momentum. The “low volatility” factor incorporates measurements such as historical beta (i.e., a measure of the volatility of a security relative to the total market).</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">At the time of each semi-annual reconstitution of the U.S. Small Cap Underlying Index, no company shall comprise more than 1% of the U.S. Small Cap Underlying Index. The U.S. Small Cap Underlying Index is also constrained in its construction to limit turnover of constituent securities at each semi-annual reconstitution. As of </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">May 31, 2026, the U.S. Small Cap Underlying Index was comprised of 473 securities with capitalizations ranging from $21 million to $16.97 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the U.S. Small Cap Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the U.S. Small Cap Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the U.S. Small Cap Underlying Index). However, under various circumstances, it may not be possible or practicable to replicate the U.S. Small Cap Underlying 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 U.S. Small Cap Underlying Index, but may not track the U.S. Small Cap Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire U.S. Small Cap Underlying Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the U.S. Small Cap Underlying Index, including securities that resemble those included in the U.S. Small Cap Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund’s portfolio is reconstituted semi-annually following the semi-annual reconstitution of the U.S. Small Cap Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income (i.e., gain equity market exposure and maintain liquidity until the Fund invests in individual securities), simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the U.S. Small Cap Underlying Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the U.S. Small Cap Underlying Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the U.S. Small Cap Underlying Index.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the U.S. Small Cap Underlying Index is concentrated.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the U.S. Small Cap Underlying Index. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the U.S. Small Cap Underlying Index The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the U.S. Small Cap Underlying Index are included in the Fund’s 80% basket. The U.S. Small Cap Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by FTSE Russell. The U.S. Small Cap Underlying Index is based on the Russell 2000^® Index (Parent Index) and is constructed by applying a multi-factor methodology to the Parent Index. The Parent Index is a subset of the Russell 3000^® Index and is designed to measure the performance of small capitalization stocks in the United States. It includes approximately 2000 of the smallest issuers in the Russell 3000^® Index. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Investment Style Factors:</span><span style="font-size:10.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">There can be no assurance that the multi-factor stock selection process of the U.S. Small Cap Underlying Index will enhance </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by small capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, small capitalization 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. The markets for securities issued by small capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The U.S. Small Cap Underlying Index relies on various sources of information to assess the criteria of issuers included in the U.S. Small Cap Underlying Index (or the FTSE Russell index on which it is based), including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that the U.S. Small Cap Underlying Index's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the U.S. Small Cap Underlying Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the U.S. Small Cap Underlying Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the U.S. Small Cap Underlying Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the U.S. Small Cap Underlying Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the U.S. Small Cap Underlying Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the U.S. Small Cap Underlying Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the U.S. Small Cap Underlying Index. In addition, the Fund’s NAV may deviate from the U.S. Small Cap Underlying Index if the Fund fair values a portfolio security at a price other than the price used by the U.S. Small Cap Underlying Index for that security. To the extent that the investment manager uses </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">a representative sampling strategy, the Fund may not track the return of the U.S. Small Cap Underlying Index as well as it would have if the Fund held all of the securities in the U.S. Small Cap Underlying Index.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the U.S. Small Cap Underlying Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the U.S. Small Cap Underlying Index, pricing differences, transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the U.S. Small Cap Underlying Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the U.S. Small Cap Underlying Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying security, interest rate or index, and such derivatives often have risks similar to the 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 significantly exceeds the Fund’s initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not realize the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the U.S. Small Cap Underlying Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the U.S. Small Cap Underlying Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the U.S. Small Cap Underlying Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance, an additional index and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">24.14%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-29.82%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 13.88%.</p></td></tr></table> Best Quarter 2020-12-31 0.2414 Worst Quarter 2020-03-31 -0.2982 As of June 30, 2026, the Fund’s year-to-date return was 13.88%. 2026-06-30 0.1388 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0498 0.0771 0.0775 Return after taxes on distributions 0.0468 0.0737 0.0733 Return after taxes on distributions and sale of Fund shares 0.0314 0.0602 0.0611 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.1315 0.1412 Russell 2000® Index 0.1281 0.0609 0.0810 LibertyQ U.S. Small Cap Equity Index 0.0537 0.0807 0.0810 2026-08-01 Franklin International Dividend Booster Index ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of an index that aims to deliver excess (or “boosted”) dividend yield relative to the large/mid cap international equity market balanced against volatility.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0019 0 0.0000 0.0019 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 19 60 105 241 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 66% of the average value of its portfolio.</p> 0.66 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the VettaFi New Frontier International Dividend Select Index (the International Dividend Booster Underlying Index) and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the International Dividend Booster Underlying Index are included in the Fund’s 80% basket. The International Dividend Booster Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by VettaFi LLC (VettaFi or Index Provider). The International Dividend Booster Underlying Index is based on the </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">VettaFi Developed World ex United States Index </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">(Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver excess (or “boosted”) dividend yield balanced against volatility relative to the broad market as represented by the Parent Index (i.e., to provide a high dividend yield relative to the Parent Index balanced against volatility through the selection and weighting of securities from the Parent Index), as described in greater detail below. The Parent Index includes large- and mid-capitalization stocks representing the top 85% of the investable universe (i.e., developed equity markets excluding the United States) by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization). The International Dividend Booster Underlying Index is reconstituted semiannually.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Eligible stocks (i.e., those included in the Parent Index) are analyzed via an optimization process that selects and weights stocks in a manner that seeks to maximize the portfolio’s dividend yield, subject to several constraints, such as those for individual stock, sector and country weightings, to try to limit volatility relative to the Parent Index and portfolio turnover. At each semiannual reconstitution of the International Dividend Booster Underlying Index: (i) individual stock weightings are capped at 2.5%; (ii) sector weightings are constrained to a maximum of 30% of or 1.5 times their weightings in the Parent Index; (iii) country weightings are constrained to a maximum of 30% of or 2.0 times the weighting in </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">the Parent Index, and a minimum country weight of 2.5%; and (iv) the one-way turnover of the International Dividend Booster Underlying Index is capped at 20% (this portfolio turnover constraint may be relaxed if an optimal portfolio solution is not feasible).</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The International Dividend Booster Underlying Index may include large- and mid-capitalization companies. As of May 31, 2026, the International Dividend Booster Underlying Index was comprised of 87 securities with capitalizations ranging from $6.49 billion to $335.31 billion. As of May 31, 2026, the International Dividend Booster Underlying Index included issuers from the following countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the International Dividend Booster Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the International Dividend Booster Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the International Dividend Booster Underlying Index). However, it may not be possible or practicable to replicate the International Dividend Booster Underlying Index. In these circumstances, the Fund may use a representative sampling strategy whereby the Fund will invest in what it believes to be a representative sample of the component securities of the International Dividend Booster Underlying Index, but may not track the International Dividend Booster Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire International Dividend Booster Underlying Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the International Dividend Booster Underlying Index, including securities that resemble those included in the International Dividend Booster Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund’s portfolio is generally reconstituted semiannually following the semiannual reconstitution of the International Dividend Booster Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the International Dividend Booster Underlying Index, such as to equitize cash and accrued income (i.e., gain equity market exposure and maintain liquidity until the Fund invests in individual securities), simulate investments in the International Dividend Booster Underlying Index, facilitate trading or minimize transaction costs. </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the International Dividend Booster Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the International Dividend Booster Underlying Index is concentrated. As of May 31, 2026, the International Dividend Booster Underlying Index was concentrated in the financial services sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the VettaFi New Frontier International Dividend Select Index (the International Dividend Booster Underlying Index) and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the VettaFi New Frontier International Dividend Select Index (the International Dividend Booster Underlying Index) and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the International Dividend Booster Underlying Index are included in the Fund’s 80% basket. The International Dividend Booster Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by VettaFi LLC (VettaFi or Index Provider). The International Dividend Booster Underlying Index is based on the <span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">VettaFi Developed World ex United States Index </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">(Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver excess (or “boosted”) dividend yield balanced against volatility relative to the broad market as represented by the Parent Index (i.e., to provide a high dividend yield relative to the Parent Index balanced against volatility through the selection and weighting of securities from the Parent Index), as described in greater detail below. The Parent Index includes large- and mid-capitalization stocks representing the top 85% of the investable universe (i.e., developed equity markets excluding the United States) by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization). The International Dividend Booster Underlying Index is reconstituted semiannually.</span> <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Regional:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund invests a significant portion of its assets in a specific geographic region or a particular country, the Fund will generally have more exposure to the specific regional or country risks. In the event of economic or political turmoil or a deterioration of diplomatic relations in a region or country where a substantial portion of the Fund’s assets are invested, the Fund may experience substantial illiquidity or reduction in the value of the Fund’s investments. Adverse conditions in a certain region or country can adversely affect securities of issuers in other countries whose economies appear to be unrelated. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Dividend-Oriented Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer's stock and less available income for the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The International Dividend Booster Underlying Index relies on various sources of information to assess the criteria of issuers included in the International Dividend Booster Underlying Index (or the Parent Index), including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that the International Dividend Booster Underlying Index's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the International Dividend Booster Underlying Index will be determined, composed or calculated accurately. While the Index Provider provides descriptions of what the International Dividend Booster Underlying Index is designed to achieve, the Index Provider does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the International Dividend Booster Underlying Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the International Dividend Booster Underlying Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the International Dividend Booster Underlying Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the International Dividend Booster Underlying Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the International Dividend Booster Underlying Index. In addition, the Fund’s NAV may deviate from the International Dividend Booster Underlying Index if the Fund fair values a portfolio security at a price other than the price used by the International Dividend Booster Underlying Index for that security. To the extent that the investment manager uses a representative sampling </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">strategy, the Fund may not track the return of the International Dividend Booster Underlying Index as well as it would have if the Fund held all of the securities in the International Dividend Booster Underlying Index.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the International Dividend Booster Underlying Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the International Dividend Booster Underlying Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the International Dividend Booster Underlying Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the International Dividend Booster Underlying Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Financial services companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Financial services companies are subject to extensive government regulation that may affect their profitability in many ways, </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">including by limiting the amount and types of loans and other commitments they can make, and the interest rates and fees they can charge. A financial services company's profitability, and therefore its stock prices, may be adversely affected in certain market cycles, including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Changing regulations, continuing consolidations, and development of new products and structures all are likely to have a significant impact on financial services companies.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies may fall out of favor with investors based on market and economic conditions. Large capitalization companies may underperform relative to small and mid capitalization companies because they may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly exceeds the Fund’s initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not realize the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the International Dividend Booster Underlying Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">trading volume on the listing exchange and may, therefore, have a material upward or downward effect on the market price of the shares.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </p> Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Franklin U.S. Dividend Booster Index ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of an index that aims to deliver excess (or “boosted”) dividend yield relative to the U.S. large cap equity market balanced against volatility.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 65% of the average value of its portfolio.</p> 0.65 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the VettaFi New Frontier U.S. Dividend Select Index (the U.S. Dividend Booster Underlying Index). The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the U.S. Dividend Booster Underlying Index are included in the Fund’s 80% basket. The U.S. Dividend Booster Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by VettaFi LLC (VettaFi or Index Provider). The U.S. Dividend Booster Underlying Index is based on the </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">VettaFi US Equity Large-Cap 500 Index </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">(Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver excess (or “boosted”) dividend yield balanced against volatility relative to the broad market as represented by the Parent Index (i.e., to provide a high dividend yield relative to the Parent Index balanced against volatility through the selection and weighting of securities from the Parent Index), as described in greater detail below. The Parent Index includes large capitalization stocks representing approximately 88% of the investable universe (i.e., the U.S. equity market) by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization). The U.S. Dividend Booster Underlying Index is reconstituted quarterly.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Eligible stocks (i.e., those included in the Parent Index) are analyzed via an optimization process that selects and weights stocks in a manner that seeks to maximize the portfolio’s dividend yield, subject to several constraints, such as those for individual stock and sector weightings, to try to limit volatility relative to the Parent Index, and portfolio turnover. At each quarterly reconstitution of the U.S. Dividend Booster Underlying Index: (i) individual stock weightings are capped at 5%; (ii) sector weightings are constrained to a maximum of 30% of or 1.5 times their weightings in the Parent Index; and (iii) the one-way turnover of the U.S. Dividend Booster Underlying Index is capped at 15% (this portfolio turnover constraint may be relaxed if an optimal portfolio solution is not feasible).</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The U.S. Dividend Booster Underlying Index is comprised of large capitalization companies. As of May 31, 2026, the U.S. Dividend Booster Underlying Index was comprised of 97 securities with capitalizations ranging from $11.8 billion to $1.1 trilllion. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the U.S. Dividend Booster Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the U.S. Dividend Booster Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the U.S. Dividend Booster Underlying Index). However, it may not be possible or practicable to replicate the U.S. Dividend Booster Underlying Index. In these circumstances, the Fund may use a representative sampling strategy whereby the Fund will invest in what it believes to be a representative sample of the component securities of the U.S. Dividend Booster Underlying Index, but may not track the U.S. Dividend Booster Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire U.S. Dividend Booster Underlying Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the U.S. Dividend Booster Underlying Index, including securities that resemble those included in the U.S. Dividend Booster Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund’s portfolio is generally reconstituted quarterly following the quarterly reconstitution of the U.S. Dividend Booster Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the U.S. Dividend Booster Underlying Index, such as to equitize cash and accrued income (i.e., gain equity market exposure and maintain liquidity until the Fund invests in individual securities), simulate investments in the U.S. Dividend Booster Underlying Index, facilitate trading or minimize transaction costs. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the U.S. Dividend Booster Underlying Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the U.S. Dividend Booster Underlying Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the U.S. Dividend Booster Underlying Index.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the U.S. Dividend Booster Underlying Index is concentrated.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the VettaFi New Frontier U.S. Dividend Select Index (the U. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the VettaFi New Frontier U.S. Dividend Select Index (the U S. Dividend Booster Underlying Index). The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the U.S. Dividend Booster Underlying Index are included in the Fund’s 80% basket. The U.S. Dividend Booster Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by VettaFi LLC (VettaFi or Index Provider). The U.S. Dividend Booster Underlying Index is based on the <span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">VettaFi US Equity Large-Cap 500 Index </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">(Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver excess (or “boosted”) dividend yield balanced against volatility relative to the broad market as represented by the Parent Index (i.e., to provide a high dividend yield relative to the Parent Index balanced against volatility through the selection and weighting of securities from the Parent Index), as described in greater detail below. The Parent Index includes large capitalization stocks representing approximately 88% of the investable universe (i.e., the U.S. equity market) by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization). The U.S. Dividend Booster Underlying Index is reconstituted quarterly.</span> <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Dividend-Oriented Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer's stock and less available income for the Fund. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The U.S. Dividend Booster Underlying Index relies on various sources of information to assess the criteria of issuers included in the U.S. Dividend Booster Underlying Index (or the Parent Index), including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that the U.S. Dividend Booster Underlying Index's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the U.S. Dividend Booster Underlying Index will be determined, composed or calculated accurately. While the Index Provider provides descriptions of what the U.S. Dividend Booster Underlying Index is designed to achieve, the Index Provider does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the U.S. Dividend Booster Underlying Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the U.S. Dividend Booster Underlying Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the U.S. Dividend Booster Underlying Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the U.S. Dividend Booster Underlying Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the U.S. Dividend Booster Underlying Index. In addition, the Fund’s NAV may deviate from the U.S. Dividend Booster Underlying Index if the Fund fair values a portfolio security at a price other than the price used by the U.S. Dividend Booster Underlying Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the U.S. Dividend Booster Underlying Index as well as it would have if the Fund held all of the securities in the U.S. Dividend Booster Underlying Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the U.S. Dividend Booster Underlying Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the U.S. Dividend Booster Underlying Index, pricing differences, transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the U.S. Dividend Booster Underlying Index or the need to meet various new or existing regulatory </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the U.S. Dividend Booster Underlying Index does not.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies may fall out of favor with investors based on market and economic conditions. Large capitalization companies may underperform relative to small and mid capitalization companies because they may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying security, interest rate or index, and such derivatives often have risks similar to the 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 significantly exceeds the Fund’s initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">manner, especially in unusual or extreme market conditions, the Fund may not realize the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the U.S. Dividend Booster Underlying Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the U.S. Dividend Booster Underlying Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the U.S. Dividend Booster Underlying Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </p> Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. 2026-08-01 Franklin International Core Dividend Tilt Index ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the Morningstar</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Developed Markets ex-North America Dividend Enhanced Select Index</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^SM</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> (the Underlying Index).</span></p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 27% of the average value of its portfolio.</p> 0.27 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the Underlying Index are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc. (Morningstar or Index Provider). The Underlying Index is based on the Morningstar</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Developed Markets ex-North America Target Market Exposure Index (Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index (i.e., to provide a “dividend tilt” through the selection and weighting of securities from the Parent Index), as described in greater detail below. The Parent Index includes large- and mid-capitalization stocks representing the top 85% of the investable universe (i.e., developed markets equity markets excluding North America) by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization). The Underlying Index is governed by published, objective rules for security selection, exclusion, rebalancing and adjustments for corporate actions. The Underlying Index is reconstituted quarterly.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In particular, the construction process for the Underlying Index includes a security selection and weighting process that aims to deliver a higher dividend yield than the Parent Index (with “dividend yield” calculated based on trailing twelve-month dividend yield) while limiting expected tracking error to the Parent Index through an optimization process that is applied at each quarterly reconstitution of the Underlying Index. Eligible stocks (i.e., those included in the Parent Index) are fed into an “optimizer” that selects and weights stocks in a manner that seeks to maximize the portfolio’s dividend yield (calculated as described above), subject to several constraints, such as those for individual stock, sector and country weightings, to try to limit expected tracking error relative to the Parent Index, and portfolio turnover. At each quarterly reconstitution of the Underlying Index: (i) </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">individual stock weightings are capped at the lesser of (a) three times their weighting in the Parent Index or (b) their weighting in the Parent Index plus 0.5%; (ii) after the optimization process is applied, stocks must have a minimum weighting of 0.005% to be included in the Underlying Index; (iii) sector weightings are kept within 5% of their weightings in the Parent Index; (iv) country weightings are kept within 5% of their weightings in the Parent Index and are capped at 3 times the country weight of the Parent Index; and (v) the one-way turnover of the Underlying Index is capped at 10% (this portfolio turnover constraint may be relaxed if an optimal portfolio solution is not feasible).</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As the Underlying Index is a “Core Dividend Tilt Index” that is designed to provide a “dividend tilt” by seeking to deliver a higher dividend yield than the Parent Index while at the same time providing “core” exposure to the developed markets equity markets excluding North America through the tracking error and other constraints described above, the Underlying Index includes certain stocks that do not currently pay dividends (in other words, the application of the tracking error and other constraints as part of the index methodology security selection process results in certain non-dividend paying stocks being included in the Underlying Index). The Underlying Index may include large- and mid-capitalization companies. As of May 31, 2026, the Underlying Index was comprised of 427 securities with capitalizations ranging from $2.24 billion to $622.83 billion. As of May 31, 2026, the Underlying Index included issuers from the following countries: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Israel, Italy, Japan, the Netherlands, Norway, Poland, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a representative sampling strategy whereby the Fund will invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund’s portfolio is generally </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">reconstituted quarterly following the quarterly reconstitution of the Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income (i.e., gain equity market exposure and maintain liquidity until the Fund invests in individual securities), simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the Underlying Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of its Underlying Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. As of May 31, 2026, the Underlying Index was concentrated in the financial services sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the Underlying Index are included in the Fund’s 80% basket. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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, </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">when there are more buyers than sellers, prices tend to rise. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Regional:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund invests a significant portion of its assets in a specific geographic region or a particular country, the Fund will generally have </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">more exposure to the specific regional or country risks. In the event of economic or political turmoil or a deterioration of diplomatic relations in a region or country where a substantial portion of the Fund’s assets are invested, the Fund may experience substantial illiquidity or reduction in the value of the Fund’s investments. Adverse conditions in a certain region or country can adversely affect securities of issuers in other countries whose economies appear to be unrelated. </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Dividend-Oriented Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer's stock and less available income for the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Index Provider relies on various sources of information to assess the criteria of issuers included in the Underlying Index (or the Parent Index), including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that the Underlying Index's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the Underlying Index will be determined, composed or calculated accurately. While the Index Provider provides descriptions of what the Underlying Index is designed to achieve, the Index Provider does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the Underlying Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the Underlying Index in accordance with its </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the Underlying Index may therefore be borne by the Fund and its shareholders.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the Underlying Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the Underlying Index. In addition, the Fund’s NAV may deviate from the Underlying Index if the Fund fair values a portfolio security at a price other than the price used by the Underlying Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the Underlying Index as well as it would have if the Fund held all of the securities in the Underlying Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the Underlying Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the Underlying Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the Underlying Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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., </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Financial services companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Financial services companies are subject to extensive government regulation that may affect their profitability in many ways, including by limiting the amount and types of loans and other commitments they can make, and the interest rates and fees they can charge. A financial services company's profitability, and therefore its stock prices, may be adversely affected in certain market cycles, including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Changing regulations, continuing consolidations, and development of new products and structures all are likely to have a significant impact on financial services companies.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies may fall out of favor with investors based on market and economic conditions. Large capitalization companies may underperform relative to small and mid capitalization companies because they may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying currency, security, interest rate or index, and such derivatives often have risks similar to the underlying instrument, in addition to other risks. Derivatives involve costs and can create economic leverage in the Fund’s portfolio which may result in </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">significant volatility and cause the Fund to participate in losses (as well as gains) in an amount that significantly exceeds the Fund’s initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not realize the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track its Underlying Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the Underlying Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the Underlying Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">face trading halts and/or delisting. This risk may be more pronounced in volatile markets, potentially where there are significant redemptions in ETFs generally.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's Underlying Index. On August 1, 2022, the Fund's underlying index was changed from the LibertyQ International Equity Hedged Index to the Morningstar</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Developed Markets ex-North America Dividend Enhanced Select Index</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^SM</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">. Fund performance prior to that date reflects the Fund seeking to track the performance of the LibertyQ International Equity Hedged Index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</span></p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">18.77%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-16.51%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 11.38%.</p></td></tr></table> Best Quarter 2022-12-31 0.1877 Worst Quarter 2020-03-31 -0.1651 As of June 30, 2026, the Fund’s year-to-date return was 11.38%. 2026-06-30 0.1138 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.3451 0.1359 0.1037 Return after taxes on distributions 0.3314 0.1245 0.0865 Return after taxes on distributions and sale of Fund shares 0.2110 0.1060 0.0771 Morningstar® Developed Markets ex-North America Target Market Exposure Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.3161 0.0900 Linked Morningstar® Developed Markets ex-North America Target Market Exposure Index-NR 0.3161 0.1299 0.1120 Morningstar® Developed Markets ex-North America Dividend Enhanced Select Index℠-NR 0.3432 Linked Morningstar® Developed Markets ex-North America Dividend Enhanced Select Index℠-NR 0.3432 0.1364 0.1064 Franklin Emerging Market Core Dividend Tilt Index ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the Morningstar</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Emerging Markets Dividend Enhanced Select Index</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^SM</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> (the Underlying Index).</span></p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0019 0 0.0000 0.0019 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 19 60 105 241 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 61% of the average value of its portfolio.</p> 0.61 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the Underlying Index are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc. (Morningstar or Index Provider). The Underlying Index is based on the Morningstar</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Emerging Markets Target Market Exposure Index (Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index (i.e., to provide a “dividend tilt” through the selection and weighting of securities from the Parent Index), as described in greater detail below. The Parent Index includes large- and mid-capitalization stocks representing the top 85% of the investable universe (i.e., emerging markets equity markets) by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization). The Underlying Index is governed by published, objective rules for security selection, exclusion, rebalancing and adjustments for corporate actions. The Underlying Index is reconstituted quarterly.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In particular, the construction process for the Underlying Index includes a security selection and weighting process that aims to deliver a higher dividend yield than the Parent Index (with “dividend yield” calculated based on trailing twelve-month dividend yield) while limiting expected tracking error to the Parent Index through an optimization process that is applied at each quarterly reconstitution of the Underlying Index. Eligible stocks (i.e., those included in the Parent Index) are fed into an “optimizer” that selects and weights stocks in a manner that seeks to maximize the portfolio’s dividend yield (calculated as described above), subject to several constraints, such as those for individual stock, sector and country weightings, to try to limit expected tracking error relative to the Parent Index, and portfolio turnover. At each quarterly reconstitution of the Underlying Index: (i) </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">individual stock weightings are capped at the lesser of (a) three times their weighting in the Parent Index or (b) their weighting in the Parent Index plus 0.5%; (ii) after the optimization process is applied, stocks must have a minimum weighting of 0.005% to be included in the Underlying Index; (iii) sector weightings are kept within 5% of their weightings in the Parent Index; (iv) country weightings are kept within 5% of their weightings in the Parent Index and are capped at 3 times the country weight of the Parent Index; and (v) the one-way turnover of the Underlying Index is capped at 20% (this portfolio turnover constraint may be relaxed if an optimal portfolio solution is not feasible). </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As the Underlying Index is a “Core Dividend Tilt Index” that is designed to provide a “dividend tilt” by seeking to deliver a higher dividend yield than the Parent Index while at the same time providing “core” exposure to the emerging markets equity markets through the tracking error and other constraints described above, the Underlying Index includes certain stocks that do not currently pay dividends (in other words, the application of the tracking error and other constraints as part of the index methodology security selection process results in certain non-dividend paying stocks being included in the Underlying Index). The Underlying Index may include large- and mid-capitalization companies. As of May 31, 2026, the Underlying Index was comprised of 573 securities with capitalizations ranging from $1.86 billion to $1.95 trillion. As of May 31, 2026, the Underlying Index included issuers from the following countries: Brazil, Chile, China, Colombia, Czech Republic, Greece, Hungary, India, Indonesia, Kuwait, Malaysia, Mexico, Philippines, Qatar, Saudi Arabia, South Africa, South Korea, Taiwan, Thailand, Turkey, and United Arab Emirates.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a representative sampling strategy whereby the Fund will invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund’s portfolio is generally </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">reconstituted quarterly following the quarterly reconstitution of the Underlying Index. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income (i.e., gain equity market exposure and maintain liquidity until the Fund invests in individual securities), simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the Underlying Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of its Underlying Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. As of May 31, 2026, the Underlying Index was concentrated in the semiconductors and semiconductor equipment industry.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the Underlying Index are included in the Fund’s 80% basket. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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, </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">when there are more buyers than sellers, prices tend to rise. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging market countries are subject to all of the risks of foreign investing </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Regional:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund invests a significant portion of its assets in a specific geographic region or a particular country, the Fund will generally have more exposure to the specific regional or country risks. In the event of economic or political turmoil or a deterioration of diplomatic relations in a region or country where a substantial portion of the Fund’s assets are invested, the Fund may experience substantial illiquidity or reduction in the value of the Fund’s investments. Adverse conditions in a certain region or country can adversely affect securities of issuers in other countries whose economies appear to be unrelated. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Chinese securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There are special risks associated with investments in China, including exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization and exchange control regulations (including currency blockage). Inflation and rapid fluctuations in inflation and interest rates have had, and may continue to have, negative effects on the economy and securities markets of China. China is deemed by the investment manager to be an emerging markets country, which means an investment in this country has more heightened risks than general foreign investing due to a lack of established legal, political, business and social frameworks and accounting standards or auditor oversight in the country to support securities markets as well as the possibility for more widespread corruption and fraud. In addition, the standards for environmental, social and corporate governance matters in China also tend to be lower than such standards in more developed economies. Also, certain securities issued by companies located or operating in China, such as China A-Shares, are subject to trading restrictions, quota limitations, and clearing and settlement risks. In addition, there may be significant obstacles to obtaining information necessary for investigations into or litigation against companies located in or operating in China and shareholders may have limited legal remedies. The Fund is not actively managed and does not select investments based on investor protection considerations.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Trade disputes and the imposition of tariffs on goods and services can affect the Chinese economy, particularly in light of China's large export sector, as well as the global economy. Trade disputes can result in increased costs of production and reduced profitability for non-export-dependent companies that rely on imports to the extent China engages in retaliatory tariffs. Trade disputes may also lead to increased currency exchange rate volatility.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Certain investments in Chinese companies are made through a special structure known as a variable interest entity (“VIE”). In a VIE structure, foreign investors, </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">such as the Fund, will only own stock in a shell company rather than directly in the VIE, which must be owned by Chinese nationals (and/or Chinese companies) to obtain the licenses and/or assets required to operate in a restricted or prohibited sector in China. The value of the shell company is derived from its ability to consolidate the VIE into its financials pursuant to contractual arrangements that allow the shell company to exert a degree of control over, and obtain economic benefits arising from, the VIE without formal legal ownership. While VIEs are a longstanding industry practice and are well known by Chinese officials and regulators, the structure historically has not been formally recognized under Chinese law and it is uncertain whether Chinese officials or regulators will withdraw their implicit acceptance of the structure. It is also uncertain whether the contractual arrangements, which may be subject to conflicts of interest between the legal owners of the VIE and foreign investors, would be enforced by Chinese courts or arbitration bodies. Prohibitions of these structures by the Chinese government, or the inability to enforce such contracts, from which the shell company derives its value, would likely cause the VIE-structured holding(s) to suffer significant, detrimental, and possibly permanent and even total losses in value, and in turn, adversely affect the Fund’s returns and net asset value. </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Dividend-Oriented Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer's stock and less available income for the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Index Provider relies on various sources of information to assess the criteria of issuers included in the Underlying Index (or the </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Parent Index), including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that the Underlying Index's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the Underlying Index will be determined, composed or calculated accurately. While the Index Provider provides descriptions of what the Underlying Index is designed to achieve, the Index Provider does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the Underlying Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the Underlying Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the Underlying Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the Underlying Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the Underlying Index. In addition, the Fund’s NAV may deviate from the Underlying Index if the Fund fair values a portfolio security at a price other than the price used by the Underlying Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the Underlying Index as well as it would have if the Fund held all of the securities in the Underlying Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the Underlying Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the Underlying Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the Underlying Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:italic; font-weight:normal; text-decoration:none;">Semiconductors and semiconductor equipment companies</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">: The risks inherent in the semiconductors industry include competitive pressures, intense competition, aggressive pricing, technological developments, changing demand, research and development costs, availability and price of components and product obsolescence. Semiconductor design and process methodologies are subject to rapid technological change requiring large expenditures for research and development in order to improve product performance and increase manufacturing yields. The success of semiconductor companies largely depends on their ability to obtain and maintain protection of certain proprietary technologies used in their principal products. Semiconductor companies rely on a combination of patents, trade secret laws and contractual provisions to protect their technologies. In addition, the semiconductors industry in general is characterized by frequent litigation regarding patent and other intellectual property rights.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies may fall out of favor with investors based on market and economic conditions. Large capitalization companies may underperform relative to small and mid capitalization companies because they may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly exceeds the Fund’s initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not realize the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track its Underlying Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the Underlying Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the Underlying Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions partially for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">trading volume on the listing exchange and may, therefore, have a material upward or downward effect on the market price of the shares.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's Underlying Index. On August 1, 2022, the Fund's underlying index was changed from the LibertyQ Emerging Markets Index to the Morningstar</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Emerging Markets Dividend Enhanced Select Index</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^SM</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">. Fund performance prior to that date reflects the Fund seeking to track the performance of the LibertyQ Emerging Markets Index. The Fund's past performance (before and after taxes) is not necessarily an indication of how the </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fund will perform in the future. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">17.24%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-25.58%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 29.37%.</p></td></tr></table> Best Quarter 2020-12-31 0.1724 Worst Quarter 2020-03-31 -0.2558 As of June 30, 2026, the Fund’s year-to-date return was 29.37%. 2026-06-30 0.2937 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.2883 0.0733 0.0702 Return after taxes on distributions 0.2797 0.0642 0.0645 Return after taxes on distributions and sale of Fund shares 0.1777 0.0572 0.0584 Morningstar® Emerging Markets Target Market Exposure Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.3162 0.0454 Linked Morningstar® Emerging Markets Target Market Exposure Index-NR 0.3162 0.0405 0.0846 Morningstar® Emerging Markets Dividend Enhanced Select Index℠-NR 0.2935 Linked Morningstar® Emerging Markets Dividend Enhanced Select Index℠-NR 0.2935 0.0794 0.0764 Franklin U.S. Core Dividend Tilt Index ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the Morningstar</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> US Dividend Enhanced Select Index</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^SM</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> (the Underlying Index).</span></p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0006 0 0.0000 0.0006 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 6 19 33 76 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 24% of the average value of its portfolio.</p> 0.24 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the Underlying Index are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc. (Morningstar or Index Provider). The Underlying Index is based on the Morningstar</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> US Target Market Exposure Index (Parent Index) and is constructed by applying an optimization process to the Parent Index that aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index (i.e., to provide a “dividend tilt” through the selection and weighting of securities from the Parent Index), as described in greater detail below. The Parent Index includes large- and mid-capitalization stocks representing the top 85% of the investable universe (i.e., U.S. equity market) by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization). The Underlying Index is governed by published, objective rules for security selection, exclusion, rebalancing and adjustments for corporate actions. The Underlying Index is reconstituted quarterly.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In particular, the construction process for the Underlying Index includes a security selection and weighting process that aims to deliver a higher dividend yield than the Parent Index (with “dividend yield” calculated based on trailing twelve-month dividend yield) while limiting expected tracking error to the Parent Index through an optimization process that is applied at each quarterly reconstitution of the Underlying Index. Eligible stocks (i.e., those included in the Parent Index) are fed into an “optimizer” that selects and weights stocks in a manner that seeks to maximize the portfolio’s dividend yield (calculated as described above), subject to several constraints, such as those for individual stock and sector weightings, to try to limit expected tracking error relative to the Parent Index, and portfolio turnover. At each quarterly reconstitution of the Underlying Index: (i) individual stock weightings are capped at the lesser of (a) three times their weighting in the Parent </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Index or (b) their weighting in the Parent Index plus 0.5%; (ii) after the optimization process is applied, stocks must have a minimum weighting of 0.005% to be included in the Underlying Index; (iii) sector weightings are kept within 5% of their weightings in the Parent Index; and (iv) the one-way turnover of the Underlying Index is capped at 10% (this portfolio turnover constraint may be relaxed if an optimal portfolio solution is not feasible).</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As the Underlying Index is a “Core Dividend Tilt Index” that is designed to provide a “dividend tilt” by seeking to deliver a higher dividend yield than the Parent Index while at the same time providing “core” exposure to the U.S. equity market through the tracking error and other constraints described above, the Underlying Index includes certain stocks that do not currently pay dividends (in other words, the application of the tracking error and other constraints as part of the index methodology security selection process results in certain non-dividend paying stocks being included in the Underlying Index). The Underlying Index may include large- and mid-capitalization companies. As of May 31, 2026, the Underlying Index was comprised of 288 securities with capitalizations ranging from $9.91 billion to $5.11 trillion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a representative sampling strategy whereby the Fund will invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund’s portfolio is generally reconstituted quarterly following the quarterly reconstitution of the Underlying Index. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income (i.e., gain equity market exposure and maintain liquidity until the </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fund invests in individual securities), simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the Underlying Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of its Underlying Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. As of May 31, 2026, the Underlying Index was concentrated in the information technology sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the Underlying Index are included in the Fund’s 80% basket. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Dividend-Oriented Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer's stock and less available income for the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Index Provider relies on various sources of information to assess the criteria of issuers included in the Underlying Index (or the Parent Index), including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that the Underlying Index's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the Underlying Index will be determined, composed or calculated accurately. While the Index Provider provides descriptions of what the Underlying Index is designed to achieve, the Index Provider does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the Underlying Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the Underlying Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the Underlying Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the Underlying Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the Underlying Index. In addition, the Fund’s NAV may deviate from the Underlying Index if the Fund fair values a portfolio security at a price other than the price used by the Underlying Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">return of the Underlying Index as well as it would have if the Fund held all of the securities in the Underlying Index.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the Underlying Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the Underlying Index, pricing differences, transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the Underlying Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the Underlying Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Information technology companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies in the information technology sector have historically been volatile due to the rapid pace of product change and development within the sector. For example, their products and services may not prove commercially successful or may become obsolete quickly. In addition, delays in or cancellation of the release of anticipated products or services may also affect the price of an information technology company’s stock. Information technology companies are subject to significant competitive pressures, such as new market entrants, aggressive pricing and tight profit margins. The activities of these companies may also be adversely affected by changes in government regulations, worldwide technological developments (including the development of artificial intelligence and machine learning) or investor perception of a company and/or its products or services. The stock prices of companies operating within this sector may be subject to abrupt or erratic movements.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies may fall out of favor with investors based on market and economic conditions. Large capitalization companies may underperform relative to small and mid capitalization companies because they may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying security, interest rate or index, and such derivatives often have risks similar to the 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 significantly exceeds the Fund’s initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not realize the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track its Underlying Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the Underlying Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the Underlying Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">trading volume on the listing exchange and may, therefore, have a material upward or downward effect on the market price of the shares.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's Underlying Index. On August 1, 2022, the Fund's underlying index was changed from the LibertyQ Global Dividend Index to the Morningstar</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> US Dividend Enhanced Select Index</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^SM</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">. Fund performance prior to that date reflects the Fund seeking to track the performance of the LibertyQ Global Dividend Index. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">14.57%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-23.91%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 14.01%.</p></td></tr></table> Best Quarter 2020-12-31 0.1457 Worst Quarter 2020-03-31 -0.2391 As of June 30, 2026, the Fund’s year-to-date return was 14.01%. 2026-06-30 0.1401 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.1888 0.1364 0.1112 Return after taxes on distributions 0.1840 0.1300 0.1023 Return after taxes on distributions and sale of Fund shares 0.1145 0.1078 0.0879 Morningstar® US Target Market Exposure Index (index reflects no deduction for fees, expenses or taxes) 0.1780 0.1388 Linked Morningstar® US Target Market Exposure Index 0.1780 0.1203 0.1260 Morningstar® US Dividend Enhanced Select Index℠ 0.1897 Linked Morningstar® US Dividend Enhanced Select Index℠ 0.1897 0.1371 0.1115 BRANDYWINEGLOBAL – U.S. FIXED INCOME ETF 2026-08-01 Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Total return.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0039 0 0.0000 0.0039 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 40 126 220 494 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 199% of the average value of its portfolio.</p> 1.99 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in U.S. fixed income securities, and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to U.S. fixed income securities. U.S. fixed income securities include debt securities issued or guaranteed by the U.S. government, its agencies or instrumentalities and political sub-divisions (including inflation index linked securities and municipal bonds); U.S. corporate debt securities, including debentures, bonds (including zero coupon bonds), bankers acceptances (issued by industrial, utility, finance, commercial banking or bank holding company organizations), convertible and non-convertible notes, commercial paper, certificates of deposits, and freely transferable promissory notes; mortgage-backed securities; and asset-backed securities. U.S. fixed income securities also include securities included in the Bloomberg U.S. Aggregate Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The Fund invests in U.S. dollar denominated investment grade fixed income securities. Investment grade fixed income securities are securities that are rated at the time of purchase in the top four ratings categories by one or more independent rating organizations such as S&amp;P</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Global Ratings (S&amp;P</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">) (rated BBB- or better) or Moody’s Ratings (Moody’s) (rated Baa3 or higher) or, if unrated, are determined to be of comparable quality by the sub-advisor. The Fund may invest in variable and floating rate securities. The Fund may also invest a portion of its assets in cash or cash equivalents.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The sub-advisor intends to take an active approach to duration management and does not track the duration of the Fund’s benchmark index. The Fund may invest in securities of any maturity or duration. Under normal conditions, the portfolio managers typically seek to maintain a dollar-weighted average effective duration for the Fund’s portfolio, including derivatives, of 1 to 10 years. The dollar-weighted average effective duration of the Fund’s portfolio may, however, exceed this range materially from time to time depending on the sub-advisor’s valuation analysis and macro-economic outlook. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">A mortgage-backed security is an interest in a pool of mortgage loans made by and packaged or “pooled” together by banks, mortgage lenders, various governmental agencies and other financial institutions for sale to investors to finance purchases of homes, commercial buildings and other real estate. The Fund’s investments in mortgage-backed securities include securities that are issued or guaranteed by the U.S. government, its agencies or instrumentalities, which include mortgage pass-through securities representing interests in “pools” of mortgage loans issued or guaranteed by the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac). Securities issued by different government </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">agencies or instrumentalities have different levels of credit support. The Fund may also invest in other types of mortgage securities that may be issued or guaranteed by private issuers including commercial mortgage-backed securities (CMBS) and collateralized mortgage obligations (CMOs). </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may purchase or sell mortgage-backed securities on a delayed delivery or forward commitment basis through the “to-be-announced” (TBA) market. With TBA transactions, the particular securities to be delivered must meet specified terms and conditions. The Fund may also invest in restricted securities including Rule 144A securities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">An asset-backed security is a security backed by loans, leases, and other receivables. The Fund may invest in collateralized loan obligations (CLOs).</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">For purposes of pursuing its investment goal, the Fund may enter into various interest rate and credit-related derivatives, principally U.S. Treasury futures and credit default swaps (including credit default index swaps). The use of these derivative transactions may allow the Fund to obtain exposures to select interest rates, durations or credit risks. 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. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The portfolio managers’ investment process is top-down, macro-economic driven and value oriented. Their buy discipline is highlighted by patience and conviction. The portfolio managers develop a viewpoint on the business cycle in conjunction with a value-based analysis of U.S. dollar-denominated, investment-grade fixed income securities to determine the Fund’s strategy duration, sector and quality exposures over time. Security selection is determined through analysis of both top-down, macroeconomic conditions as well as bottom-up, fundamental analysis within the context of their value-oriented framework. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In analyzing macroeconomic conditions, the portfolio managers take into account things such as geopolitical and demographic factors that might impact the overall economy. This framework informs the broad investment themes of the portfolio and helps the portfolio managers determine duration and sector allocations. Bottom-up, fundamental analysis is utilized to help identify specific securities or issues that might be invested in or should be avoided. The portfolio managers focus their investments on a limited number of securities that they believe represent attractive value, rather than invest the portfolio across a large spectrum of securities in attempt to replicate an index-like distribution. If they do not find value in a particular </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">sector, industry or security, they will not invest in it. The portfolio managers utilize both qualitative and quantitative criteria (including proprietary quantitative models) as part of the portfolio construction process, including in determining that an investment represents an attractive value. An investment offers an attractive value if the portfolio managers, through their analysis, have determined that the investment is mispriced and trading below what current or expected economic conditions warrant. Quantitative models are proprietary systems that rely on mathematical computations to identify investment opportunities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The portfolio managers sell fixed income securities or sectors when they no longer meet their value criteria. This could be due to the impact of the business cycle or fundamental changes affecting yield, spread or price. For example, they typically sell corporate bonds and mortgage-backed securities when spreads narrow significantly or when changing fundamentals introduce risks outweighing potential rewards. In some cases, they may modify the characteristics or risk profile of a sector instead of completely eliminating exposure, such as by shortening duration.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund anticipates engaging in active and frequent trading to achieve its investment goal.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in U.S. fixed income securities, and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to U. Under normal market conditions, the Fund invests at least 80% of its net assets in U.S. fixed income securities, and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to U S. fixed income securities. U.S. fixed income securities include debt securities issued or guaranteed by the U.S. government, its agencies or instrumentalities and political sub-divisions (including inflation index linked securities and municipal bonds); U.S. corporate debt securities, including debentures, bonds (including zero coupon bonds), bankers acceptances (issued by industrial, utility, finance, commercial banking or bank holding company organizations), convertible and non-convertible notes, commercial paper, certificates of deposits, and freely transferable promissory notes; mortgage-backed securities; and asset-backed securities. U.S. fixed income securities also include securities included in the Bloomberg U.S. Aggregate Index. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x5"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. Mortgage-backed securities that are not issued by U.S. government agencies may have a greater risk of default because neither the U.S. government nor an agency or instrumentality have guaranteed or provided credit support to them. The credit quality of most asset-backed securities depends primarily on the credit quality of the underlying assets and the amount of credit support (if any) provided to the securities. While securities issued by Ginnie Mae are backed by the full faith and credit of the U.S. government, not all securities of the various U.S. government agencies are, including those of Fannie Mae and Freddie Mac. Also, guarantees of principal and interest payments do not apply to market prices, yields or the Fund’s share price. While the U.S. government has, in the past, provided financial support to Fannie Mae and Freddie Mac, the U.S. government is not obligated by law to do so and no assurance can be given that the U.S. government will do so in the future.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mortgage Securities and Asset-Backed Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Mortgage securities differ from conventional debt securities because principal is paid back periodically over the life of the security rather than at maturity. The Fund may receive unscheduled payments of principal due to voluntary prepayments, refinancings or foreclosures on the underlying mortgage loans. Because of prepayments, mortgage securities may be less effective than some other types of debt securities as a means of "locking in" long-term interest rates and may have less potential for capital appreciation during periods of falling interest rates. A reduction in the anticipated rate of principal prepayments, especially during periods of rising interest rates, may increase or extend the effective maturity and duration of mortgage securities, making them more sensitive to interest rate changes, subject to greater price volatility, and more susceptible than some other debt securities to a decline in market value when interest rates rise.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Issuers of asset-backed securities may have limited ability to enforce the security interest in the underlying assets, and credit enhancements provided to support the securities, if any, may be inadequate to protect investors in the event of default. Like mortgage securities, asset-backed securities are subject to prepayment and extension risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. 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, interest rate, 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.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Credit default swap contracts involve heightened risks and may result in losses to the Fund. When the Fund sells credit protection via a credit default swap, credit risk increases since the Fund has exposure to both the issuer whose credit is the subject of the swap and the counterparty to the swap.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">When-Issued and Delayed Delivery Transactions</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Mortgage-backed securities may be issued on a when-issued or delayed delivery basis, where payment and delivery take place at a future date. Because the market price of the security may fluctuate during the time before payment and delivery, the Fund assumes the risk that the value of the security at delivery may be more or less than the purchase price.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Liquidity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  The trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs or in response to a specific economic event and will also generally lower the value of a security or other investments. Market prices for such securities or other investments may be volatile.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Variable Rate Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because changes in interest rates on variable rate securities (including floating rate securities) may lag behind changes in market rates, the value of such securities may decline during periods of rising interest rates until their interest rates reset to market rates. During periods of declining interest rates, because the interest rates on variable rate securities generally reset downward, their market value is unlikely to rise to the same extent as the value of comparable fixed rate securities.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Collateralized Loan Obligations (CLOs):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The risks of an investment in a CLO depend largely on the type of collateral held by the special purpose entity (SPE) and the tranche of the CLO in which the Fund invests. CLOs may be deemed to be illiquid and subject to the Fund’s restrictions on investments in illiquid investments. In addition to the normal risks associated with debt securities and loans (e.g., interest rate risk, credit risk and default risk), CLOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or quality or go into default or be downgraded; (iii) the Fund may invest in tranches of a CLO that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. The Fund's sub-advisor 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Models</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The models that may be used by the sub-advisor as part of the Fund’s portfolio construction process to evaluate investment opportunities have been tested on historical price data. These models are based on the assumption that price movements in most markets continue to display similar patterns as those observed in the past. There is the risk that market behavior will change and that the patterns upon which the forecasts in the models are based will weaken or disappear, which would reduce the success of the models. Further, as market dynamics shift over time, a previously highly successful model may become outdated, perhaps without the sub-advisor recognizing that fact before substantial losses are incurred. Successful operation of a model is also reliant upon the information technology systems of the sub-advisor and its ability to ensure those systems remain operational and that appropriate disaster recovery procedures are in place. There can be no assurance that the sub-advisor will be successful in maintaining effective and operational models and the related hardware and software systems.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash/Cash Equivalents: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To the extent the Fund holds cash or cash equivalents rather than securities in which it primarily invests or uses to manage risk, the Fund may not achieve its investment objectives and may underperform.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund effects redemptions partly or entirely for cash, rather than for in-kind securities, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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 sub-advisor cannot predict whether shares will trade above (premium), below (discount) or at NAV. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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, </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Portfolio Turnover:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Active and frequent trading may increase a shareholder’s tax liability and the Fund’s transaction costs, which could detract from Fund performance.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, the sub-advisor, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager and the sub-advisor have limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund, the investment manager or the sub-advisor. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, the sub-advisor, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2024, Q3</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">7.27%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2024, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-3.64%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 1.49%.</p></td></tr></table> Best Quarter 2024-09-30 0.0727 Worst Quarter 2024-12-31 -0.0364 As of June 30, 2026, the Fund’s year-to-date return was 1.49%. 2026-06-30 0.0149 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0686 0.0396 Return after taxes on distributions 0.0493 0.0207 Return after taxes on distributions and sale of Fund shares 0.0403 0.0220 Bloomberg U.S. Aggregate Index (index reflects no deduction for fees, expenses or taxes) 0.0730 0.0477 BRANDYWINEGLOBAL – DYNAMIC US LARGE CAP VALUE ETF 2026-08-01 Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Long-term capital appreciation by quantitatively investing in U.S. equities.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0049 0 0.0000 0.0049 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 50 157 274 615 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">fiscal year, the Fund's portfolio turnover rate was 80% of the average value of its portfolio.</p> 0.80 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The portfolio managers use proprietary quantitative models to identify investments for the Fund. To identify investments, the models evaluate multiple quantitative characteristics for each potential stock investment and apply specific rules to select stocks for investment based on these characteristics. The sub-advisor’s quantitative models seek to identify stocks that appear to have upside potential and relatively low downside risk relative to the Russell 1000 Value Index. The quantitative models analyze factors regarding a stock’s valuation and quality, as well as market sentiment toward a stock, to select stocks that may have the potential to outperform the Russell 1000 Value Index. The Fund seeks to do this by purchasing stocks that the sub-advisor’s proprietary quantitative models identify as having low valuations and appropriate quantitative characteristics for the market environment. The quantitative factors are selected and weighted using the sub-advisor’s proprietary quantitative market evaluation and Dynamic Shifting Tool, which shifts between a broad value and deep value model based on prevailing market conditions. Stock selection factors include, among other things, earnings quality and profitability, investor sentiment, and management’s utilization of capital.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will typically invest in a stock when it meets the large capitalization threshold and its historical price-to-earnings or price-to-book ratios relative to the large-cap segment of the U.S. equity market indicate a potentially attractive valuation and the quantitative models rank it with a high multi-factor score. The Fund will typically sell a stock when its multi-factor score reaches a sell target set by the quantitative models, its historical price-to-earnings and price-to-book ratios relative to the large-cap segment of the U.S. equity market exceed the upper thresholds, or its market capitalization falls below the Fund's large capitalization definition.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will only invest in U.S. traded companies, which may include companies incorporated outside the U.S. which conduct a significant portion of their activities in the U.S. and are considered U.S. companies in the Russell U.S. indices. Under normal market conditions, the Fund invests at least 80% of its net assets in large capitalization value companies domiciled, or having their principal activities, in the United States or other instruments with similar economic characteristics. For purposes of this investment policy, the sub-advisor considers various investment criteria in determining whether a company is undervalued, including, but not limited to: </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Lower price/earnings ratio than the broader equity market; or</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Lower price/book value than the broader equity market</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In addition, a company identified as a “value company” by an independent third party index or investment data provider will be considered a “value company” for purposes of this investment policy.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies are those companies with market capitalizations similar to companies in the Russell 1000</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Index (the “Index”). The size of the companies in the Index changes with market conditions and the composition of the Index. As of May 31, 2026, the median market capitalization of a company in the Index was approximately $17.11 billion and the dollar-weighted average market capitalization of the companies in the Index was approximately $1.5 trillion.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may have significant positions in particular sectors from time to time. As of May 31, 2026, the top sector represented by the Fund’s investments was financial services. These sectors may change over time. In addition, the Fund may engage in active and frequent trading to achieve its investment goal.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in large capitalization value companies domiciled, or having their principal activities, in the United States or other instruments with similar economic characteristics. Under normal market conditions, the Fund invests at least 80% of its net assets in large capitalization value companies domiciled, or having their principal activities, in the United States or other instruments with similar economic characteristics For purposes of this investment policy, the sub-advisor considers various investment criteria in determining whether a company is undervalued, including, but not limited to: <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x6"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Value Style Investing:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> A value stock may not increase in price as anticipated by the sub-advisor if other investors fail to recognize the company's value and bid up the price, the markets favor faster-growing companies, or the factors that the sub-advisor believes will increase the price of the security do not occur or do not have the anticipated effect.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Quantitative Models</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The quantitative models that may be used by the sub-advisor as part of the Fund’s portfolio construction process to evaluate investment opportunities have been tested on historical price data. These models are based on the assumption that price movements in most markets continue to display similar patterns as those observed in the past. There is the risk that market behavior will change and that the patterns upon which the forecasts in the models are based will weaken or disappear, which would reduce the success of the models. Further, as market dynamics shift over time, a previously highly successful model may become outdated, perhaps without the sub-advisor recognizing that fact before substantial losses are incurred. Successful operation of a model is also reliant upon the information technology systems of the sub-advisor and its ability to ensure those systems remain operational and that appropriate disaster recovery procedures are in place. There can be no assurance that the sub-advisor will be successful in maintaining effective and operational quantitative models and the related hardware and software systems.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Financial services companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Financial services companies are subject to extensive government regulation that may affect their profitability in many ways, including by limiting the amount and types of loans and other commitments they can make, and the interest rates and fees they can charge. A financial services company's profitability, and therefore its stock prices, may be adversely affected in certain market cycles, including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and declining economic conditions, </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">which may cause credit losses due to financial difficulties of borrowers. Changing regulations, continuing consolidations, and development of new products and structures all are likely to have a significant impact on financial services companies.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies may fall out of favor with investors based on market and economic conditions. Large capitalization companies may underperform relative to small and mid capitalization companies because they may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Portfolio Turnover:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Active and frequent trading may increase a shareholder’s tax liability and the Fund’s transaction costs, which could detract from Fund performance.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. The Fund's sub-advisor 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, the sub-advisor, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager and the sub-advisor have limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund, the investment manager or the sub-advisor. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, the sub-advisor, and their </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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 sub-advisor cannot predict whether shares will trade above (premium), below (discount) or at NAV. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">trading volume on the listing exchange and may, therefore, have a material upward or downward effect on the market price of the shares.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The Fund adopted the performance of the BrandywineGLOBAL—Dynamic US Large Cap Value Fund (the “predecessor mutual fund”) as the result of a reorganization of the predecessor mutual fund into the Fund that was effective after the market close on October 28, 2022 (the “Reorganization”). Prior to the Reorganization, the Fund had not yet commenced operations. The returns shown for periods ending on or prior to October 28, 2022 are those of the predecessor mutual fund. The bar chart shows changes in the Fund’s (and the predecessor mutual fund’s) performance from year to year (predecessor mutual fund performance is represented by the performance of the predecessor mutual fund’s Class IS Shares). The table shows how the Fund’s (and the predecessor mutual fund’s) average annual returns (in the case of the predecessor mutual fund, the average annual returns of the predecessor mutual fund’s Class IS Shares) for 1 year, 5 years and 10 years compared with those of a broad measure of market performance and additional indexes with characteristics relevant to the Fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Had the predecessor mutual fund been structured as an ETF, its performance may have differed. The Fund’s (and the predecessor mutual 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund’s (and the predecessor mutual fund’s) past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">18.39%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-25.83%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 8.97%.</p></td></tr></table> Best Quarter 2020-06-30 0.1839 Worst Quarter 2020-03-31 -0.2583 As of June 30, 2026, the Fund’s year-to-date return was 8.97%. 2026-06-30 0.0897 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0888 0.1002 0.1044 Return after taxes on distributions 0.0801 0.0775 0.0859 Return after taxes on distributions and sale of Fund shares 0.0526 0.0713 0.0787 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.1315 0.1429 Russell 1000® Value Index 0.1591 0.1133 0.1053 S&P 500® Index 0.1788 0.1442 0.1482 2026-08-01 Franklin Disruptive Commerce ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Capital appreciation.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0050 0 0.0000 0.0050 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 51 160 279 629 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 34% of the average value of its portfolio.</p> 0.34 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of disruptive commerce. The Fund invests predominantly in common stock.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Companies relevant to the Fund’s investment theme of disruptive commerce are those that the investment manager believes are substantially focused on and/or are expected to substantially benefit from electronic commerce (or “e-commerce”), auctions, the sharing economy, electronic payment capabilities ("e-payments"), drop shipping, direct marketing or significant decreases in transport and delivery costs, all of which provide the customer with a more customized, secure and time efficient buying process. These companies may include retailers, payment companies, logistics and delivery companies, software companies that focus on multi-channel capabilities, as well as companies utilizing innovative marketing methods. Developments relevant to the disruptive commerce theme can extend from benefits to the consumer to benefits for businesses and business commerce.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In pursuing the Fund’s investment theme, the investment manager may invest in companies in any economic sector or of any market capitalization and may invest in companies both inside and outside of the United States, including those in developing or emerging markets. Although the Fund may invest across economic sectors, the Fund concentrates its investments in consumer discretionary related industries. The Fund is a “non-diversified” fund, which means it generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In selecting companies that the investment manager believes are relevant to the Fund’s investment theme of disruptive commerce, the investment manager seeks to identify, using its own fundamental, “bottom-up” research and analysis, companies positioned to capitalize on disruptive innovation in or that are enabling the further development of the disruptive commerce theme in the markets in which they operate. The investment manager’s internal research and analysis leverages insights from diverse sources, including external research, to develop and refine its investment theme and identify and take advantage of trends that have ramifications for individual companies or entire industries. The investment manager also evaluates market segments, products, services and business models positioned to benefit significantly from disruptive innovations in commerce relative to broad securities markets, and seeks to identify the primary beneficiaries of new trends or developments in commerce to select investments for the Fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s portfolio; (iii) the security’s fundamentals deteriorate; (iv) there are adverse policy changes that could affect the security’s outlook; or (v) better investment opportunities become available.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of disruptive commerce. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of disruptive commerce The Fund invests predominantly in common stock. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Thematic Investing:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investment strategies incorporate the identification of thematic investment opportunities and its performance may be negatively impacted if the investment manager does not correctly identify such opportunities or if the theme develops in an unexpected manner. Performance may also be negatively impacted if the securities selected for the Fund’s portfolios do not benefit from the development of the Fund’s investment theme. Securities selected pursuant to the Fund’s investment theme may be impacted by factors unrelated to the theme, particularly with respect to companies that may have multiple lines of business, and may underperform. Adverse developments and risks unrelated to the Fund’s investment theme affecting companies in which the Fund invests may negatively impact the Fund’s performance.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund’s thematic investments will also subject the Fund to growth style investing risks. Growth stock prices reflect projections of future earnings or revenues, and can, therefore, fall dramatically if the company fails to meet those projections. Growth stocks may be more expensive relative to their current earnings or assets compared to value or other stocks, and if earnings growth expectations moderate, their valuations may return to more typical norms, causing their stock prices to fall. Prices of these companies’ securities may be more volatile than other securities, particularly over the short term.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> By focusing its investments in consumer discretionary related industries, the Fund carries much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries. Because the Fund concentrates in a specific industry or group of industries there is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Consumer discretionary companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Companies operating within consumer discretionary related industries could be affected by, among other things, overall economic conditions, interest rates and disposable income. These companies typically face intense competition and are subject to fluctuating consumer confidence and consumer demand. Many of these companies compete aggressively on price, potentially affecting their long run profitability. Companies within consumer discretionary related industries may have extensive online operations. The online nature of these companies and their involvement in processing, storing and transmitting large amounts of data make these companies particularly vulnerable to cyber security risk. This includes threats to operational software and hardware, as well as theft of personal and transaction records and other customer data. In the event of a cyberattack, these companies could suffer serious adverse reputational and operational consequences, including liability and litigation. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyberattacks and exacerbate the risks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small and Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by small and mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, small and mid capitalization 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. The markets for securities issued by small and mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Developing Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s 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: </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Diversification:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2025, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">19.06%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-32.22%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was -15.09%.</p></td></tr></table> Best Quarter 2025-06-30 0.1906 Worst Quarter 2022-06-30 -0.3222 As of June 30, 2026, the Fund’s year-to-date return was -15.09%. 2026-06-30 -0.1509 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0864 -0.0476 0.0857 Return after taxes on distributions 0.0864 -0.0482 0.0851 Return after taxes on distributions and sale of Fund shares 0.0512 -0.0356 0.0679 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.1315 0.1536 Franklin Genomic Advancements ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Capital appreciation.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0050 0 0.0000 0.0050 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 51 160 279 629 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 29% of the average value of its portfolio.</p> 0.29 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of genomic advancements. The Fund invests predominantly in common stock.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Companies relevant to the Fund’s investment theme of genomic advancements are those that the investment manager believes are substantially focused on and/or are expected to substantially benefit from extending and enhancing the quality of human and other life (e.g., animals) by incorporating technological and scientific developments, improvements and advancements in the field of genomics into their business, such as by offering new products or services that rely on genetic engineering, gene therapy, genome analysis, DNA sequencing, synthesis or instrumentation. These companies may include those that research, develop, produce, manufacture or significantly rely on or enable bionic devices, bio-inspired computing, bioinformatics, molecular medicine and diagnostics, pharmaceuticals and agricultural applications of genomics, and related equipment, techniques and processes.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In pursuing the Fund’s investment theme, the investment manager may invest in companies in any economic sector or of any market capitalization and may invest in companies both inside and outside of the United States, including those in developing or emerging markets. Although the Fund may invest across economic sectors, the Fund concentrates its investments in health care related industries. The Fund is a “non-diversified” fund, which means it generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In selecting companies that the investment manager believes are relevant to the Fund’s investment theme of genomic advancements, the investment manager seeks to identify, using its own fundamental, “bottom-up” research and analysis, companies positioned to capitalize on disruptive innovation in or that are enabling the further development of the genomic advancements theme in the markets in which they operate. The investment manager’s internal research and analysis leverages insights from diverse sources, including external research, to develop and refine its investment theme and identify and take advantage of trends that have ramifications for individual companies or entire industries. The investment manager also evaluates market segments, products, services and business models positioned to benefit significantly from advancements in genomics relative to broad </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">securities markets, and seeks to identify the primary beneficiaries of new trends or developments in genomics to select investments for the Fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s portfolio; (iii) the security’s fundamentals deteriorate; (iv) there are adverse policy changes that could affect the security’s outlook; or (v) better investment opportunities become available.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of genomic advancements. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of genomic advancements The Fund invests predominantly in common stock. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Thematic Investing:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investment strategies incorporate the identification of thematic investment opportunities and its performance may be negatively impacted if the investment manager does not correctly identify such opportunities or if the theme develops in an unexpected manner. Performance may also be negatively impacted if the securities selected for the Fund’s portfolios do not benefit from the development of the Fund’s investment theme. Securities selected pursuant to the Fund’s investment theme may be impacted by factors unrelated to the theme, particularly with respect to companies that may have multiple lines of business, and may underperform. Adverse developments and risks unrelated to the Fund’s investment theme affecting companies in which the Fund invests may negatively impact the Fund’s performance.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund’s thematic investments will also subject the Fund to growth style investing risks. Growth stock prices reflect projections of future earnings or revenues, and can, therefore, fall dramatically if the company fails to meet those projections. Growth stocks may be more expensive relative to their current earnings or assets compared to value or other stocks, and if earnings growth expectations moderate, their valuations may return to more typical norms, causing their stock prices to fall. Prices of these companies’ securities may be more volatile than other securities, particularly over the short term.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> By focusing its investments in health care related industries, the Fund carries much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries. Because the Fund concentrates in a specific industry or group of industries there is also the risk </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">that the Fund will perform poorly during a slump in demand for securities of companies in such industries.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Healthcare companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Companies operating within health care related industries face intense competition and potentially rapid product obsolescence. These companies are also heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. There can be no assurance these companies will be able to successfully protect their intellectual property to prevent the misappropriation of their technology, or that competitors will not develop technology that is substantially similar or superior to such companies’ technology. Companies in the life sciences tools and services industry work to develop technologies and instruments to facilitate scientific and medical research; therefore, this industry, in particular, may be negatively affected by a company’s failure to develop new or improved products that integrate technological advances. These companies typically engage in significant amounts of spending on research and development, and there is no guarantee that the products or services produced by these companies will be successful. The market values of investments in the biotechnology industry are often based upon speculation and expectations about future products, research progress, and new product filings with regulatory authorities. In addition, compared to more developed industries, there may be a thin trading market in biotechnology securities. In addition, the field of genomic science could face increasing regulatory scrutiny in the future, which may limit the development of this technology and impede the growth of companies that develop and/or utilize this technology. The customers and/or suppliers of these companies may be concentrated in a particular country, region or industry. Any adverse event affecting one of these countries, regions or industries could have a negative impact on such companies. The activities of companies operating within health care related industries may also be funded or subsidized by federal and state governments. If government funding and subsidies are reduced or discontinued, the profitability of these companies could be adversely affected. These companies may also be affected by government policies, regulatory approval for new drugs and medical products, and similar matters. They are also subject to legislative risk, i.e., the risks associated with the reform of the health care system through legislation.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small and Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by small and mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, small and mid capitalization 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. The markets for securities issued by small and mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Developing Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Diversification:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2021, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">19.63%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-23.66%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 9.98%.</p></td></tr></table> Best Quarter 2021-06-30 0.1963 Worst Quarter 2022-03-31 -0.2366 As of June 30, 2026, the Fund’s year-to-date return was 9.98%. 2026-06-30 0.0998 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.2589 -0.0379 0.0672 Return after taxes on distributions 0.2577 -0.0383 0.0668 Return after taxes on distributions and sale of Fund shares 0.1541 -0.0284 0.0529 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.1315 0.1536 Franklin Intelligent Machines ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Capital appreciation.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0050 0 0.0000 0.0050 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 51 160 279 629 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 33% of the average value of its portfolio.</p> 0.33 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of intelligent machines. The Fund invests predominantly in common stock.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Companies relevant to the Fund’s investment theme of intelligent machines are those that the investment manager believes are substantially focused on and/or are expected to substantially benefit from the ongoing technology-driven transformation of products, software, systems and machinery as well as product design, manufacture, logistics, distribution and maintenance, including through developments in artificial intelligence. These companies may include those that develop, produce, manufacture, design, maintain and deliver products or services with new capabilities previously unavailable in the marketplace.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund's investment theme of intelligent machines is intended to capture companies that the investment manager believes represent the next phase of technological evolution, including companies that provide new systems, logistics solutions, methods, processes, products or services based on physical applications of new technologies and technological innovation. Such companies include those the investment manager believes are well-positioned to benefit from intelligent design (e.g., simulation software and computer-aided design or "CAD" software), intelligent production (e.g., advancements in manufacturing or factory automation capabilities), intelligent products (e.g., robotic-assisted technologies, tools and services) and intelligent predictive maintenance (e.g., industrial software solutions and services).</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In pursuing the Fund’s investment theme, the investment manager may invest in companies in any economic sector or of any market capitalization and may invest in companies both inside and outside of the United States, including those in developing or emerging markets. Although the Fund may invest across economic sectors, it expects to have significant positions in particular sectors including information technology. The Fund is a “non-diversified” fund, which means it generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In selecting companies that the investment manager believes are relevant to the Fund’s investment theme of intelligent machines, the investment manager seeks to identify, using its own fundamental, “bottom-up” research and analysis, companies positioned to capitalize on disruptive innovation in or that are enabling the further development of the intelligent machines theme in the markets in which they operate. The investment manager’s internal research and analysis leverages insights from diverse sources, including external research, to develop and refine its investment theme and identify and take advantage of trends that have ramifications for individual companies or entire industries. The investment manager also evaluates market segments, products, services and business models positioned to benefit significantly from disruptive innovations in intelligent products, design, manufacturing and/or predictive maintenance relative to broad securities markets, and seeks to identify the primary beneficiaries of new trends or developments in physical applications of these innovations to select investments for the Fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s portfolio; (iii) the security’s fundamentals deteriorate; (iv) there are adverse policy changes that could affect the security’s outlook; or (v) better investment opportunities become available.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of intelligent machines. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund’s investment theme of intelligent machines The Fund invests predominantly in common stock. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Thematic Investing:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investment strategies incorporate the identification of thematic investment opportunities and its performance may be negatively impacted if the investment manager does not correctly identify such opportunities or if the theme develops in an unexpected manner. Performance may also be negatively impacted if the securities selected for the Fund’s portfolios do </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">not benefit from the development of the Fund’s investment theme. Securities selected pursuant to the Fund’s investment theme may be impacted by factors unrelated to the theme, particularly with respect to companies that may have multiple lines of business, and may underperform. Adverse developments and risks unrelated to the Fund’s investment theme affecting companies in which the Fund invests may negatively impact the Fund’s performance.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund’s thematic investments will also subject the Fund to growth style investing risks. Growth stock prices reflect projections of future earnings or revenues, and can, therefore, fall dramatically if the company fails to meet those projections. Growth stocks may be more expensive relative to their current earnings or assets compared to value or other stocks, and if earnings growth expectations moderate, their valuations may return to more typical norms, causing their stock prices to fall. Prices of these companies’ securities may be more volatile than other securities, particularly over the short term.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Information technology companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  Companies operating within information technology related industries may be affected by worldwide technological developments (including the development of artificial intelligence and machine learning), the success of their products and services (which may be outdated quickly), anticipated products or services that are delayed or cancelled, and investor perception of the company and/or its products or services. These companies typically face intense competition and potentially rapid product obsolescence. They may also have limited product lines, markets, financial resources or personnel. Information technology companies are also heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. There can be no assurance these companies will be able to successfully protect their intellectual property to prevent the misappropriation of their technology, or that competitors will not develop technology that is substantially similar or superior to such companies’ technology. These companies typically engage in significant amounts of spending on research and development, and there is no guarantee that the products or services produced by these companies will be successful. Information technology companies are also potential targets for cyberattacks, which can have a materially adverse impact on the performance of these companies. In addition, companies operating within the information technology sector may develop and/or utilize artificial intelligence. Artificial intelligence technology could face increasing regulatory scrutiny in the future, which may limit the development of this technology and impede the growth of companies that develop and/or utilize this technology. Similarly, the collection of data from consumers and other sources could face increased scrutiny as regulators consider how the data is collected, stored, safeguarded and used. The customers and/or suppliers of information technology companies may be concentrated in a particular country, region or industry. Any adverse event affecting one of these countries, regions or industries could have a negative impact on these companies.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:italic; font-weight:normal; text-decoration:none;">Semiconductors and semiconductor equipment companies</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">: The risks inherent in the semiconductors industry include competitive pressures, intense competition, aggressive pricing, technological developments, changing demand, research and development costs, availability and price of components and product obsolescence. Semiconductor design and process methodologies are subject to rapid technological change requiring large expenditures for research and development in order to improve product performance and increase manufacturing yields. The success of semiconductor companies largely depends on their ability to </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">obtain and maintain protection of certain proprietary technologies used in their principal products. Semiconductor companies rely on a combination of patents, trade secret laws and contractual provisions to protect their technologies. In addition, the semiconductors industry in general is characterized by frequent litigation regarding patent and other intellectual property rights.</p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small and Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by small and mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, small and mid capitalization 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. The markets for securities issued by small and mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Developing Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s 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: </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Diversification:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2025, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">31.84%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-25.77%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 41.82%.</p></td></tr></table> Best Quarter 2025-06-30 0.3184 Worst Quarter 2022-06-30 -0.2577 As of June 30, 2026, the Fund’s year-to-date return was 41.82%. 2026-06-30 0.4182 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.3062 0.1507 0.2388 Return after taxes on distributions 0.3062 0.1506 0.2387 Return after taxes on distributions and sale of Fund shares 0.1813 0.1216 0.1999 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.1315 0.1536 Franklin Exponential Data ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Capital appreciation.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0050 0 0.0000 0.0050 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 51 160 279 629 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 31% of the average value of its portfolio.</p> 0.31 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund's investment theme of exponential data. The Fund invests predominantly in common stock. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Companies relevant to the Fund’s investment theme of exponential data are those that the investment manager believes are substantially focused on and/or are expected to substantially benefit from the use of large data sets and/or the growth of data, including systems, services, hardware, software and other digital and physical infrastructure related to data creation, amplification, collection, cleaning, recording, analysis, processing, transmission, delivery, storage, encryption and security. These companies may include companies benefitting from or facilitating the application or development of cloud computing technologies and services, data supporting infrastructure and data analytics solutions, including companies providing hardware and software technologies supporting data applications as well as those utilizing data analysis systems to provide or improve goods and services (e.g., software-as-a-service and personalized advertising and health care services). These companies may also include companies the investment manager believes represent new and innovative use cases for data, such as those benefitting from or facilitating artificial intelligence, machine learning, and augmented and virtual reality. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund also may invest in real estate investment trusts (REITs).</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In pursuing the Fund’s investment theme, the investment manager may invest in companies in any economic sector or of any market capitalization and may invest in companies both inside and outside of the United States, including those in developing or emerging markets. Although the Fund may invest across economic sectors, the Fund concentrates its investments in information technology related industries. The Fund is a “non-diversified” fund, which means it generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In selecting companies that the investment manager believes are relevant to the Fund’s investment theme of exponential data, the investment manager seeks to identify, using its own fundamental, “bottom-up” research and analysis, companies positioned to capitalize on innovations in or that are enabling the further development of the exponential data theme in the markets in which they operate. The investment manager’s internal research and analysis leverages insights from </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">diverse sources, including external research, to develop and refine its investment theme and identify and take advantage of trends that have ramifications for individual companies or entire industries. In analyzing investment opportunities for the Fund, the investment manager also evaluates market segments, products, services and business models positioned to benefit significantly from innovations in data products or services or the commercialization of data relative to the broad equities market, and seeks to identify the primary beneficiaries of new trends or developments in exponential data to select investments for the Fund. The Fund’s thematic investment process is designed to construct a portfolio of companies the investment manager believes are substantially focused on and/or are expected to substantially benefit from the exponential data theme based on a determination that exposure to the theme is driving or, in the investment manager’s opinion, will in the future drive an issuer’s growth or competitive positioning, including companies that either currently monetize data or have the potential in the future to monetize data. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s portfolio; (iii) the security’s fundamentals deteriorate; (iv) there are adverse policy changes that could affect the security’s outlook; or (v) better investment opportunities become available. </p> Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund's investment theme of exponential data. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities of companies that are relevant to the Fund's investment theme of exponential data The Fund invests predominantly in common stock. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Thematic Investing:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investment strategies incorporate the identification of thematic investment opportunities and its performance may be negatively impacted if the investment manager does not correctly identify such opportunities or if the theme develops in an unexpected manner. Performance may also be negatively impacted if the securities selected for the Fund’s portfolios do not benefit from the development of the Fund’s investment theme. Securities selected pursuant to the Fund’s investment theme may be impacted by factors unrelated to the theme, particularly with respect to companies that may have multiple lines of business, and may underperform. Adverse developments and risks unrelated to the Fund’s investment theme affecting companies in which the Fund invests may negatively impact the Fund’s performance.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund’s thematic investments will also subject the Fund to growth style investing risks. Growth stock prices reflect projections of future earnings or </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">revenues, and can, therefore, fall dramatically if the company fails to meet those projections. Growth stocks may be more expensive relative to their current earnings or assets compared to value or other stocks, and if earnings growth expectations moderate, their valuations may return to more typical norms, causing their stock prices to fall. Prices of these companies’ securities may be more volatile than other securities, particularly over the short term.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> By focusing its investments in information technology related industries, the Fund carries much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries. Because the Fund concentrates in a specific industry or group of industries there is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Information technology companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  Companies operating within information technology related industries may be affected by worldwide technological developments (including the development of artificial intelligence and machine learning), the success of their products and services (which may be outdated quickly), anticipated products or services that are delayed or cancelled, and investor perception of the company and/or its products or services. These companies typically face intense competition and potentially rapid product obsolescence. They may also have limited product lines, markets, financial resources or personnel. Information technology companies are also heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. There can be no assurance these companies will be able to successfully protect their intellectual property to prevent the misappropriation of their technology, or that competitors will not develop technology that is substantially similar or superior to such companies’ technology. These companies typically engage in significant amounts of spending on research and development, and there is no guarantee that the products or services produced by these companies will be successful. Information technology companies are also potential targets for cyberattacks, which can have a materially adverse impact on the performance of these companies. Companies in the software industry may be adversely affected by, among other things, the decline or fluctuation of subscription renewal rates for their products and services and actual or perceived vulnerabilities in their products or services. In addition, companies operating within the information technology sector may develop and/or utilize artificial intelligence. Artificial intelligence technology could face increasing regulatory scrutiny in the future, which may limit the development of this technology and impede the growth of companies that develop and/or utilize this technology. Similarly, the collection of data from consumers and other sources could face increased scrutiny as regulators consider how the data is collected, stored, safeguarded and used. The customers and/or suppliers of information technology companies may be concentrated in a </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">particular country, region or industry. Any adverse event affecting one of these countries, regions or industries could have a negative impact on these companies.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small and Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by small and mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, small and mid capitalization 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">repaying any loans. The markets for securities issued by small and mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Developing Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Diversification:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">REITs:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">A REIT’s performance depends on the types, values and locations </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">of the properties</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">and</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">companies</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">it</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">owns</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">and</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">how</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">well</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">those</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">properties</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">and</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">companies</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">are</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">managed. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">A</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">decline</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">in</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">rental</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">income</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">may</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">occur</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">because</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">of</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">extended</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">vacancies,</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">increased competition from other properties, tenants’ failure to pay rent or poor management.</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Because a REIT may be invested in a limited number of projects or in a particular</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">market segment, it may be more susceptible to adverse developments affecting a</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">single</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">project</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">or</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">market</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">segment</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">than</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">more</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">broadly</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">diversified</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">investments.</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Loss of status as a qualified REIT</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">under</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">U.S.</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">federal</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">tax</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">laws</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">could</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">adversely</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">affect</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">value</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">of</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">a</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">particular</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">REIT</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">or</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">market</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">for</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">REITs</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">as</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">a</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">whole.</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">These</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">risks</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">may</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">also</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">apply</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">to</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">securities</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">of</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">REIT-like</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">entities</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">domiciled</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">outside</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">U.S.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">of the Fund. Any of these factors, among others, may lead to the Fund’s 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. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2025, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">21.87%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-28.05%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was -3.41%.</p></td></tr></table> Best Quarter 2025-06-30 0.2187 Worst Quarter 2022-06-30 -0.2805 As of June 30, 2026, the Fund’s year-to-date return was -3.41%. 2026-06-30 -0.0341 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0173 0.0069 Return after taxes on distributions 0.0173 0.0069 Return after taxes on distributions and sale of Fund shares 0.0103 0.0053 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.1279 Franklin Income Equity Focus ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Income and capital appreciation with an emphasis on lower volatility.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0029 0 0.0000 0.0029 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 30 94 164 369 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 69% of the average value of its portfolio.</p> 0.69 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities, and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to equity securities. Equity securities include common stocks, preferred stocks, and securities convertible into common stocks, as well as equity-related instruments and other investments with similar economic characteristics. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The Fund focuses on seeking income by investing in equity securities and equity-related instruments, including common stocks with dividend yields that the investment manager believes are attractive, while seeking capital appreciation and a lower level of volatility than the broader equity market as measured by the </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">S&amp;P 500</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Index</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">. “Volatility” is a statistical measurement of the frequency and level of up and down fluctuations of a fund’s returns over time. Therefore, in this context, 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 </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">S&amp;P 500</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Index</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">. The Fund may seek under certain circumstances, to provide monthly distributions at a relatively stable level.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The Fund may invest up to 50% of its assets in equity-linked notes (ELNs). ELNs are hybrid instruments that are specially designed to combine the characteristics of one or more reference securities (</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">usually a common stock or broad market equity index)</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> and a related equity derivative, such as a put or call option, in a single note form. The Fund may also invest up to 25% of its assets in foreign securities, either directly or through depositary receipts.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund maintains the flexibility to invest in securities of companies from a variety of sectors, but from time to time, based on economic conditions, the Fund may have significant investments in particular sectors.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may, from time to time, use a variety of equity-related derivatives and complex equity securities, which may include purchasing or selling call and put options on equity securities and equity security indices, futures on equity securities and equity indices, and options on equity index futures and equity volatility futures for various purposes including enhancing Fund returns, increasing liquidity, gaining exposure to particular instruments in more efficient or less expensive ways and/or hedging risks relating to changes in certain equity markets. The Fund also may, from time to time, use currency-related derivatives, such as forward foreign currency exchange contracts and currency futures contracts to hedge currency </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">risks. The use of such derivative transactions may allow the Fund to obtain net long or net short exposures to selected markets. The investment manager considers various factors, such as availability and cost, in deciding whether to use a particular derivative instrument or strategy. Moreover, investors should bear in mind that the Fund is not obligated to actively engage in any derivative transactions. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund’s investment manager searches for undervalued or out-of-favor securities it believes offer opportunities for current income and significant growth potential. In analyzing equity securities, the investment manager considers a variety of factors, including: </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">a security’s relative value based on such factors as anticipated cash flow, interest or dividend coverage, asset coverage, and earnings prospects; </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the experience and strength of the company’s management; </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the company’s changing financial condition and market recognition of the change; </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the company’s sensitivity to changes in interest rates and business conditions; and </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the company’s debt maturity schedules and borrowing requirements.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:11.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">When choosing investments for the Fund, the investment manager applies a fundamental, income-oriented approach, focusing on the market price of a company’s securities relative to the investment manager’s evaluation of the company’s long-term earnings, asset value and cash flow potential. The investment manager also considers a company’s price/earnings ratio, profit margins and liquidation value. </span></p> Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities, and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to equity securities. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities, and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to equity securities Equity securities include common stocks, preferred stocks, and securities convertible into common stocks, as well as equity-related instruments and other investments with similar economic characteristics. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Dividend-Oriented Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer's stock and less available income for the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Equity-Linked Notes (ELNs):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in ELNs often have risks similar to their underlying securities or index, which could include management risk, market risk and, as applicable, foreign securities and currency risks. In addition, since ELNs are in note form, ELNs are also subject to certain debt securities risks, such as interest rate and credit risks. Should the prices of the underlying securities or index move in an unexpected manner, the Fund may not achieve the anticipated benefits of an investment in an ELN, and may realize losses, which could be significant and could include the Fund’s entire principal investment. An investment in an ELN is also subject to counterparty risk, which is the risk that the issuer of the ELN will default or become bankrupt and the Fund will have difficulty being repaid, or fail to be repaid, the principal amount of, or income from, its investment. Investments in ELNs are also subject to liquidity risk, which may make ELNs difficult to sell and value. In addition, ELNs may exhibit price behavior that does not correlate with their underlying securities, index or a fixed-income investment.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. 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, interest rate, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Strategy:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There can be no guarantee that the investment manager will be successful in managing the Fund with an income oriented approach and a lower level of volatility than the broader equity market as measured by the S&amp;P 500^® Index; moreover, achieving the Fund’s strategy does not mean the Fund will achieve a positive or competitive return. Although the Fund is designed to have less volatility than the broader equity market as measured by the S&amp;P 500^® Index, the actual volatility that the Fund experiences could be higher than the volatility of the broader equity market and/or the S&amp;P 500^® Index. The Fund’s strategy can be expected to limit the Fund’s participation in market price appreciation when compared to similar funds that do not attempt this strategy. In cases of extreme market conditions during which there is price dislocation for certain securities or in the event of systemic market dislocation, the Fund’s strategy may cause the Fund to be significantly over- or under-exposed to specific securities, which may cause the Fund to lose significantly more than it would have lost had the strategy not been used.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Convertible Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Convertible securities are subject to the risks of stocks when the underlying stock price is high relative to the conversion price (because more of the security's value resides in the conversion feature) and debt securities when the underlying stock price is low relative to the conversion price (because the conversion feature is less valuable). The value of convertible securities may rise and fall with the market value of the underlying stock or, like a debt security, vary with changes in interest rates and the credit quality of the issuer. A convertible </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">security is not as sensitive to interest rate changes as a similar non-convertible debt security, and generally has less potential for gain or loss than the underlying stock.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Value Style Investing:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> A value stock may not increase in price as anticipated by the investment manager if other investors fail to recognize the company's value and bid up the price, the markets favor faster-growing companies, or the factors that the investment manager believes will increase the price of the security do not occur or do not have the anticipated effect.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">market. The investment manager cannot predict whether shares will trade above (premium), below (discount) or at NAV. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">10 years or since inception, as applicable, compared with those of a broad measure of market performance and additional indexes with characteristics relevant to the Fund. On May 31, 2024, the Fund changed its principal investment strategies to reflect the Fund's focus on investing principally in equity securities and equity-related instruments and the performance for periods prior to that date is attributable to the Fund's performance before the strategy change. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">17.41%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-18.84%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 11.85%.</p></td></tr></table> Best Quarter 2020-06-30 0.1741 Worst Quarter 2020-03-31 -0.1884 As of June 30, 2026, the Fund’s year-to-date return was 11.85%. 2026-06-30 0.1185 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.1542 0.1049 0.1256 Return after taxes on distributions 0.1357 0.0966 0.1180 Return after taxes on distributions and sale of Fund shares 0.0948 0.0809 0.1015 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.1315 0.1468 MSCI USA High Dividend Yield Index 0.1197 0.0941 0.0976 S&P 500® Index 0.1788 0.1443 0.1529 Franklin Investment Grade Corporate ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">A high level of current income as is consistent with prudent investing, while seeking preservation of capital.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0035 0 0.0000 0.0035 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 36 112 196 443 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 32% of the average value of its portfolio.</p> 0.32 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in investment grade corporate debt securities and investments. Investment grade debt securities are securities that are rated in the top four ratings categories by one or more independent rating organizations such as S&amp;P Global Ratings (S&amp;P^®) (rated BBB- or better) or Moody’s Ratings (Moody’s) (rated Baa3 or higher) or, if unrated, are determined to be of comparable quality by the Fund’s investment manager. Corporate issuers may include corporate or other business entities in which a sovereign or governmental agency or entity may have, indirectly or directly, an interest, including a majority or greater ownership interest. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund invests primarily in U.S. dollar denominated corporate debt securities issued by U.S. and foreign companies. The Fund may invest in debt securities of any maturity or duration. The Fund’s focus on the credit quality of its portfolio is intended to reduce credit risk and help to preserve the Fund’s capital.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may also invest a portion of its assets in convertible securities, preferred securities (including preferred stock) and U.S. Treasury securities, and generally expects to invest a portion of its assets in cash, cash equivalents and high quality money market securities, including short-term U.S. government securities, commercial paper, repurchase agreements and affiliated or unaffiliated money market funds.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest up to 40% of its net assets in foreign securities, including those in developing markets, and up to 15% of its net assets in non-U.S. dollar denominated securities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into certain derivative transactions, principally currency forwards; interest rate and U.S. Treasury futures contracts; and swap agreements, including interest rate, fixed income total return, currency and credit default swaps (including credit default index swaps). The use of these derivative transactions may allow the Fund to obtain net long or short exposures to select currencies, interest rates, countries, durations or credit risks. These derivatives may be used to enhance Fund returns, increase liquidity, gain exposure to certain instruments or </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">markets in a more efficient or less expensive way and/or hedge risks associated with its other portfolio investments. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest up to 15% of its net assets in collateralized debt obligations (“CDOs”), including collateralized loan obligations (“CLOs”).</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In choosing investments, the Fund’s investment manager selects securities in various market sectors based on the investment manager’s assessment of changing economic, market, industry and issuer conditions. The investment manager uses a “top-down” analysis of macroeconomic trends, combined with a “bottom-up” fundamental analysis of market sectors, industries and issuers, to try to take advantage of varying sector reactions to economic events. The Fund’s portfolio is constructed by taking into account the investment manager’s desired duration and yield curve exposure, total return potential, as well as diversification and risk profile at the issue, company and industry level as deemed appropriate. The investment manager may utilize quantitative models to evaluate investment opportunities as part of the portfolio construction process for the Fund. Quantitative models are proprietary systems that rely on mathematical computations to identify investment opportunities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The investment manager may seek to sell a security if: (i) the security has moved beyond the investment manager’s fair value target and there has been no meaningful positive change in the company’s fundamental outlook; (ii) there has been a negative fundamental change in the issuer’s credit outlook that changes the investment manager’s view of the appropriate valuation; or (iii) the investment manager’s views on macroeconomic or sector trends or valuations have changed, making that particular issuer (or that issuer’s industry) less attractive for the Fund’s portfolio. In addition, the investment manager may sell a security that still meets the investment manager’s buy criteria if another security becomes available in the new issue or secondary market that the investment manager believes has better return potential or improves the Fund’s risk profile.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in investment grade corporate debt securities and investments. Under normal market conditions, the Fund invests at least 80% of its net assets in investment grade corporate debt securities and investments Investment grade debt securities are securities that are rated in the top four ratings categories by one or more independent rating organizations such as S&amp;P Global Ratings (S&amp;P^®) (rated BBB- or better) or Moody’s Ratings (Moody’s) (rated Baa3 or higher) or, if unrated, are determined to be of comparable quality by the Fund’s investment manager. Corporate issuers may include corporate or other business entities in which a sovereign or governmental agency or entity may have, indirectly or directly, an interest, including a majority or greater ownership interest. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">supranational entities; terrorism; and war; (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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Extension:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Some debt securities are subject to the risk that the debt security’s effective maturity is extended because calls or prepayments are less or slower than anticipated, particularly when interest rates rise. The market value of such security may then decline and become more interest rate sensitive. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. 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, interest rate 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Collateralized Debt Obligations (CDOs):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The risks of an investment in a CDO, a type of asset backed security, and which includes collateralized loan obligations, depend largely on the type of collateral held by the special purpose entity (SPE) and the tranche of the CDO in which the Fund invests and may be affected by the performance of a CDO's collateral manager. CDOs may be deemed to be illiquid and subject to the Fund’s restrictions on investments in illiquid investments. In addition to the normal risks associated with debt securities and asset backed securities (e.g., interest rate risk, credit risk and default risk), CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or quality or go into default or be downgraded; (iii) the Fund may invest in tranches of a CDO that are subordinate to other </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">classes; and (iv) the complex structure of the security may not be fully understood at the time of investment. These risks are amplified in tranches of CDOs that are subordinate to other tranches.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Convertible Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Convertible securities are subject to the risks of stocks when the underlying stock price is high relative to the conversion price (because more of the security's value resides in the conversion feature) and debt securities when the underlying stock price is low relative to the conversion price (because the conversion feature is less valuable). The value of convertible securities may rise and fall with the market value of the underlying stock or, like a debt security, vary with changes in interest rates and the credit quality of the issuer. A convertible security is not as sensitive to interest rate changes as a similar non-convertible debt security, and generally has less potential for gain or loss than the underlying stock.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Quantitative Models</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The quantitative models that may be used by the investment manager as part of the Fund’s portfolio construction process to evaluate investment opportunities have been tested on historical price data. These models are based on the assumption that price movements in most markets continue to display similar patterns as those observed in the past. There is the risk that market behavior will change and that the patterns upon which the forecasts in the models are based will weaken or disappear, which would reduce the success of the models. Further, as market dynamics shift over time, a previously highly successful model may become outdated, perhaps without the investment manager recognizing that fact before substantial losses are incurred. Successful operation of a model is also reliant upon the information technology systems of the investment manager and its ability to ensure those systems remain operational and that appropriate disaster recovery procedures are in place. There can be no assurance that the investment manager will be successful in maintaining effective and operational quantitative models and the related hardware and software systems.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash/Cash Equivalents: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To the extent the Fund holds cash or cash equivalents rather than securities in which it primarily invests or uses to manage risk, the Fund may not achieve its investment objectives and may underperform.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and an additional index with characteristics relevant to the Fund. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">10.30%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-7.83%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 0.94%.</p></td></tr></table> Best Quarter 2020-06-30 0.1030 Worst Quarter 2022-06-30 -0.0783 As of June 30, 2026, the Fund’s year-to-date return was 0.94%. 2026-06-30 0.0094 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0741 -0.0053 0.0223 Return after taxes on distributions 0.0541 -0.0210 0.0067 Return after taxes on distributions and sale of Fund shares 0.0436 -0.0108 0.0103 Bloomberg U.S. Aggregate Index (index reflects no deduction for fees, expenses or taxes) 0.0730 -0.0036 0.0156 Bloomberg U.S. Corporate - Investment Grade Index 0.0777 -0.0009 0.0256 Franklin Dynamic Municipal Bond ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">A high level of current income that is exempt from federal income taxes.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0030 0 0.0000 0.0030 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 31 97 169 380 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 34% of the average value of its portfolio.</p> 0.34 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax. Although the Fund tries to invest all of its assets in tax-free securities, it is possible that up to 20% of the Fund’s net assets may be in securities that pay interest that may be subject to the federal alternative minimum tax and in securities that pay interest subject to other federal or state income taxes. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in debt and fixed income securities of any maturity. Under normal market conditions, the Fund seeks to maintain an average effective duration of two to eight years. Effective duration seeks to measure the expected sensitivity of market price to changes in interest rates, taking into account the anticipated effects of structural complexities (for example, some bonds can be prepaid by the issuer). The Fund may invest in municipal securities that are issued on a when-issued or delayed delivery basis.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in municipal securities rated in any rating category by U.S. nationally recognized rating services (or unrated or short-term rated securities deemed to be of comparable quality), including below investment grade (also known as "junk bonds") and defaulted securities. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund also may invest in insured municipal securities, municipal lease obligations, variable and floating rate securities (primarily variable rate demand notes), zero coupon securities and deferred interest securities. Insured municipal securities are covered by insurance policies that guarantee the timely payment of principal and interest.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Although the investment manager will search for investments across a large number of municipal securities that finance different types of projects, from time to time, based on economic conditions, the Fund may have significant positions in municipal securities that finance similar types of projects. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The investment manager selects securities that it believes will provide the best balance between risk and return within the Fund's range of allowable investments and typically invests with a long-term time horizon. This means it generally holds securities in the Fund's portfolio for income purposes, although the investment manager may sell a security at any time if it believes it could help the Fund meet its goal. With a focus on income, individual securities are considered for purchase or sale based on various factors and considerations, including credit profile, risk, </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">structure, pricing, portfolio impact, duration management, restructuring, opportunistic trading and tax loss harvesting opportunities.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax. Under normal market conditions, the Fund invests at least 80% of its net assets in municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax Under normal market conditions, the Fund invests at least 80% of its net assets in municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fixed rate debt securities generally are more sensitive to interest rate changes than variable rate securities. For example, variable rate securities generally will not increase in market value if interest rates decline and their market value may not decline when prevailing interest rates rise.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. A change in the credit rating of a municipal bond insurer that insures securities in the Fund’s portfolio may affect the value of the securities it insures, the Fund’s share price and Fund performance. The Fund might also be adversely impacted by the inability of an insurer to meet its insurance obligations.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Liquidity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs, which may arise or increase in response to a specific economic event or because the investment manager wishes to purchase particular investments or believes that a higher level of liquidity would be advantageous. Reduced liquidity will also generally lower the value of such securities or other investments. Market prices for such securities or other investments may be relatively volatile.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The municipal securities market, in particular, can be susceptible to increases in volatility and decreases in liquidity. The secondary market for certain municipal securities tends to be less well developed or liquid than many other securities </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">markets, which may adversely affect the Fund's ability to sell such municipal securities at attractive prices. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening. In addition, there may be less publicly available information about the financial condition of municipal security issuers than for issuers of other types of securities, making the securities more difficult to value. The price the Fund could receive upon the sale of a portfolio investment may differ from the Fund's valuation of the investment, particularly for investments that trade in thin or volatile markets or that are valued using a fair value methodology.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tax Legislative and Political Changes:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The municipal securities market could be significantly affected by adverse political and legislative changes or litigation at the federal or state level. The value of municipal bonds is closely tied to the benefits of tax-exempt income to investors. Significant revisions of federal income tax laws or regulations revising income tax rates or the tax-exempt character of municipal bonds, or even proposed changes and deliberations on this topic by the federal government, could cause municipal bond prices to fall. For example, lower federal income tax rates would reduce certain relative advantages of owning municipal bonds, and lower state income tax rates could have similar effects. In addition, the application of corporate minimum tax rates to financial statement income may have the effect of reducing demand for municipal bonds among corporate investors, which may in turn impact municipal bond prices.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tax-Exempt Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">High-Yield Debt Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Issuers of lower-rated or “high-yield” debt instruments (also known as “junk bonds”) are not as strong financially as those issuing higher credit quality debt instruments. High-yield debt instruments are generally considered predominantly speculative by the applicable rating agencies as their issuers are more likely to encounter financial difficulties because they may be more highly leveraged, or because of other considerations. In addition, high yield debt instruments generally are more vulnerable to changes in the relevant economy, such as a recession or a sustained period of rising interest rates, that could affect their ability to make interest and principal payments when due. The prices of high-yield debt instruments generally fluctuate more than those of higher credit quality. High-yield debt instruments are generally more illiquid (harder to sell) and harder to value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">States:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s portfolio is generally widely diversified among issuers of municipal securities. However, to the extent that the Fund has exposure from time to time to the municipal securities of a particular state, events in that state may affect the Fund’s investments and performance. These events may include economic or political policy changes, tax base erosion, unfunded pension and healthcare liabilities, constitutional limits on tax increases, budget deficits and other financial difficulties, and changes in the credit ratings assigned to municipal issuers of the state. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Municipal Project Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  The Fund may invest more than 25% of its assets in municipal securities that finance similar types of projects, such as utilities, hospitals, higher education and transportation. A change that affects one project, such as proposed legislation on the financing of the project, a shortage of the materials needed for the project, or a declining need for the project, would likely affect all similar projects, thereby increasing market risk.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Prepayment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Inflation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The market price of debt securities generally falls as inflation increases because the purchasing power of the future income and repaid principal is expected to be worth less when received by the Fund. Debt securities that pay a fixed rather than variable interest rate are especially vulnerable to inflation risk because variable-rate debt securities may be able to participate, over the long term, in rising interest rates which have historically corresponded with long-term inflationary trends.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Zero Coupon and Deferred Interest Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> These bonds tend to react more sharply to changes in interest rates than traditional bonds. The discount on these securities typically increases as interest rates rise, the market becomes less liquid or the creditworthiness of the issuer deteriorates. Because investors receive no cash prior to the maturity or cash payment date, an investment in debt securities issued at a discount generally has a greater potential for complete loss of principal and/or return than an investment in debt securities that make periodic interest payments.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Bond Insurers:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Market conditions or changes to ratings criteria could adversely impact the ratings of municipal bond insurance companies. Downgrades and withdrawal of ratings from municipal bond insurers have substantially limited the availability of insurance sought by municipal bond issuers thereby reducing the supply of insured municipal securities.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because of the consolidation among municipal bond insurers the Fund is subject to additional risks including the risk that credit risk may be concentrated among fewer insurers and the risk that events involving one or more municipal bond insurers could have a significant adverse effect on the value of the securities insured by an insurer and on the municipal markets as a whole.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Unrated Debt Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain unrated debt securities determined by the investment manager to be of comparable credit quality to rated securities which the Fund may purchase may pay a higher interest rate than such rated debt securities and be subject to a greater risk of illiquidity or price changes. Less public information and independent credit analysis are typically available about unrated securities or issuers, and therefore they may be subject to greater risk of default.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Municipal Lease Obligations: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Municipal lease obligations differ from other municipal securities because the relevant legislative body must appropriate the money each year to make the lease payments. If the money is not appropriated, the lease may be cancelled without penalty and investors who own the lease obligations may not be paid.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and an additional index with characteristics relevant to the Fund. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2023, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">6.93%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-6.98%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 2.88%.</p></td></tr></table> Best Quarter 2023-12-31 0.0693 Worst Quarter 2022-03-31 -0.0698 As of June 30, 2026, the Fund’s year-to-date return was 2.88%. 2026-06-30 0.0288 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0587 0.0228 0.0295 Return after taxes on distributions 0.0580 0.0224 0.0293 Return after taxes on distributions and sale of Fund shares 0.0505 0.0248 0.0293 Bloomberg Municipal Bond Index (index reflects no deduction for fees, expenses or taxes) 0.0425 0.0080 0.0217 Bloomberg Municipal 1-15 Year Index 0.0518 0.0116 0.0217 Franklin Municipal Green Bond ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To maximize income exempt from federal income taxes to the extent consistent with prudent investing and the preservation of shareholders’ capital.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0030 0 0.0000 0.0030 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 31 97 169 380 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 24% of the average value of its portfolio.</p> 0.24 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax. Although the Fund tries to invest all of its assets in tax-free securities, it is possible that up to 20% of the Fund’s net assets may be invested in securities that pay interest that may be subject to the federal alternative minimum tax and in securities that pay interest subject to other federal or state income taxes. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In addition, the Fund invests at least 80% of its net assets in municipal green bonds. Municipal “green bonds” are bonds that promote environmental sustainability. The proceeds of green bonds are typically used for one or more of the following purposes: renewable energy, energy efficiency, pollution prevention and control, environmentally sustainable management of living natural resources and land use, terrestrial and aquatic biodiversity conservation, clean transportation, sustainable water and wastewater management, climate change adaptation, eco-efficient and/or circular economy adapted products, production technologies and processes or green buildings that meet regional, national or internationally recognized standards or certifications. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">A municipal bond issuer can choose to assign a “green bond” or similar label to its bonds in its offering documents: however, there is no regulation of green bonds as a class and no universal framework for issuing green bonds. In order to determine a green bond’s authenticity, the investment manager completes due diligence on each bond to be purchased to determine whether it meets the “green bond” definition above. After reviewing offering documents and issuer websites, and, if necessary, conferring with the underwriter and issuer, the investment manager places prospective green bonds into one of the following three categories:</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Eligible for investment based exclusively on an internal evaluation of the bond. The investment manager determines that bond proceeds are being issued for environmentally-friendly projects or programs and that the issuer has adequate internal controls and disclosure practices.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Eligible for investment based on an internal evaluation of the bond as well as an external evaluation by an independent party. The due diligence process is identical, but the investment manager also leverages an independent </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; margin-left:18.0pt; text-decoration:none;">evaluation that some issuers engage to verify that the green bond label has been used appropriately to make its determination of authenticity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Not eligible for investment. The investment manager places bonds in this category if bond proceeds are not clearly used to promote environmental sustainability, project descriptions are inadequate, or disclosure practices and internal controls are weak.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The investment manager screens all labeled green bonds and bonds with similar labels, but it also will consider bonds with no label for investment by the Fund. The due diligence process and categorization of non-labeled green bonds and labeled green bonds is identical.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in securities of any maturity or duration. In addition, the Fund may invest in municipal securities issued by U.S. Territories. The Fund does not necessarily focus its investments in a particular state or territory. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund buys predominately municipal securities rated, at the time of purchase, in one of the top four ratings categories by one or more U.S. nationally recognized rating services (or comparable unrated or short-term rated securities). The Fund may hold up to 20% of its net assets in municipal securities rated below investment grade (or comparable unrated or short-term rated securities).</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund also may invest in insured municipal securities, municipal lease obligations, variable and floating rate securities (primarily variable rate demand notes), zero coupon securities and deferred interest securities. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Although the investment manager searches for investments across a large number of municipal securities that finance different types of projects, from time to time, based on economic conditions, the Fund may have significant positions in municipal securities that finance similar types of projects.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The investment manager selects securities that it believes will provide the best balance between risk and return within the Fund's range of allowable investments and typically invests with a long-term time horizon. This means it generally holds securities in the Fund's portfolio for income purposes, although the investment manager may sell a security at any time if it believes it could help the Fund meet its goal. With a focus on income, individual securities are considered for purchase or sale based on various factors and considerations, including credit profile, risk, structure, pricing, portfolio impact, duration management, restructuring, opportunistic trading and tax loss harvesting opportunities.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax. Under normal market conditions, the Fund invests at least 80% of its net assets in municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax Under normal market conditions, the Fund invests at least 80% of its net assets in municipal securities whose interest is free from federal income taxes, including the federal alternative minimum tax <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">agency of the U.S. government. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fixed rate debt securities generally are more sensitive to interest rate changes than variable rate securities. For example, variable rate securities generally will not increase in market value if interest rates decline and their market value may not decline when prevailing interest rates rise.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. A change in the credit rating of a municipal bond insurer that insures securities in the Fund’s portfolio may affect the value of the securities it insures, the Fund’s share price and Fund performance. The Fund might also be adversely impacted by the inability of an insurer to meet its insurance obligations.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Liquidity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs, which may arise or increase in response to a specific economic event or because the investment manager wishes to purchase particular investments or believes that a higher level of liquidity would be advantageous. Reduced liquidity will also generally lower the value of such securities or other investments. Market prices for such securities or other investments may be relatively volatile.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The municipal securities market, in particular, can be susceptible to increases in volatility and decreases in liquidity. The secondary market for certain municipal securities tends to be less well developed or liquid than many other securities markets, which may adversely affect the Fund's ability to sell such municipal securities at attractive prices. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening. In addition, there may be less publicly available information about the financial condition of municipal security issuers than for issuers of other types of securities, making the securities more difficult to value. The price the Fund could receive upon the sale of a portfolio investment may differ from the Fund's valuation of the investment, particularly for </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">investments that trade in thin or volatile markets or that are valued using a fair value methodology.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tax Legislative and Political Changes:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The municipal securities market could be significantly affected by adverse political and legislative changes or litigation at the federal or state level. The value of municipal bonds is closely tied to the benefits of tax-exempt income to investors. Significant revisions of federal income tax laws or regulations revising income tax rates or the tax-exempt character of municipal bonds, or even proposed changes and deliberations on this topic by the federal government, could cause municipal bond prices to fall. For example, lower federal income tax rates would reduce certain relative advantages of owning municipal bonds, and lower state income tax rates could have similar effects. In addition, the application of corporate minimum tax rates to financial statement income may have the effect of reducing demand for municipal bonds among corporate investors, which may in turn impact municipal bond prices.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tax-Exempt Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Failure of a municipal security issuer to comply with applicable tax requirements may make income paid thereon taxable, resulting in a decline in the security’s value. In addition, there could be changes in applicable tax laws or tax treatments that reduce or eliminate the current federal income tax exemption on municipal securities or otherwise adversely affect the current federal or state tax status of municipal securities.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">States and U.S. Territories:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s portfolio is generally widely diversified among issuers of municipal securities. However, to the extent that the Fund has exposure from time to time to the municipal securities of a particular state, events in that state may affect the Fund’s investments and performance. These events may include economic or political policy changes, tax base erosion, unfunded pension and healthcare liabilities, constitutional limits on tax increases, budget deficits and other financial difficulties, and changes in the credit ratings assigned to municipal issuers of the state. The same is true of events in U.S. territories, to the extent that the Fund has exposure to any particular territory at a given time.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Green Bonds:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund invests in issuers financing projects that are intended or expected to have a positive environmental impact. Certain sectors may be more likely to issue green bonds, and events or factors impacting these sectors may have a greater effect on the Fund than they would on a fund that does not invest in issuers with a common purpose. The Fund’s focus on green bonds may limit the investment opportunities available to the Fund. The Fund is subject to the risk that the Fund’s focus on green bonds may, at times, cause the Fund to underperform strategies that do not include similar considerations or investment criteria. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Municipal Project Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  The Fund may invest more than 25% of its assets in municipal securities that finance similar types of projects, such as utilities, hospitals, higher education and transportation. A change that affects one project, such as proposed legislation on the financing of the project, a shortage of the materials needed for the project, or a declining need for the project, would likely affect all similar projects, thereby increasing market risk.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Prepayment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Inflation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The market price of debt securities generally falls as inflation increases because the purchasing power of the future income and repaid principal is expected to be worth less when received by the Fund. Debt securities that pay a fixed rather than variable interest rate are especially vulnerable to inflation risk because variable-rate debt securities may be able to participate, over the long </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">term, in rising interest rates which have historically corresponded with long-term inflationary trends.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">High-Yield Debt Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Issuers of lower-rated or “high-yield” debt instruments (also known as “junk bonds”) are not as strong financially as those issuing higher credit quality debt instruments. High-yield debt instruments are generally considered predominantly speculative by the applicable rating agencies as their issuers are more likely to encounter financial difficulties because they may be more highly leveraged, or because of other considerations. In addition, high yield debt instruments generally are more vulnerable to changes in the relevant economy, such as a recession or a sustained period of rising interest rates, that could affect their ability to make interest and principal payments when due. The prices of high-yield debt instruments generally fluctuate more than those of higher credit quality. High-yield debt instruments are generally more illiquid (harder to sell) and harder to value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Zero Coupon and Deferred Interest Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> These bonds tend to react more sharply to changes in interest rates than traditional bonds. The discount on these securities typically increases as interest rates rise, the market becomes less liquid or the creditworthiness of the issuer deteriorates. Because investors receive no cash prior to the maturity or cash payment date, an investment in debt securities issued at a discount generally has a greater potential for complete loss of principal and/or return than an investment in debt securities that make periodic interest payments.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Bond Insurers:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Market conditions or changes to ratings criteria could adversely impact the ratings of municipal bond insurance companies. Downgrades and withdrawal of ratings from municipal bond insurers have substantially limited the availability of insurance sought by municipal bond issuers thereby reducing the supply of insured municipal securities.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because of the consolidation among municipal bond insurers the Fund is subject to additional risks including the risk that credit risk may be concentrated among fewer insurers and the risk that events involving one or more municipal bond insurers could have a significant adverse effect on the value of the securities insured by an insurer and on the municipal markets as a whole.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Unrated Debt Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain unrated debt securities determined by the investment manager to be of comparable credit quality to rated securities which the Fund may purchase may pay a higher interest rate than such rated debt securities and be subject to a greater risk of illiquidity or price changes. Less public information and independent credit analysis are typically available about unrated securities or issuers, and therefore they may be subject to greater risk of default.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Municipal Lease Obligations: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Municipal lease obligations differ from other municipal securities because the relevant legislative body must appropriate the </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">money each year to make the lease payments. If the money is not appropriated, the lease may be cancelled without penalty and investors who own the lease obligations may not be paid.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. The Fund'sinvestment 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">market. The investment manager cannot predict whether shares will trade above (premium), below (discount) or at NAV. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund effects redemptions partly or entirely for cash, rather than for in-kind securities, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. On May 3, 2022, the Fund changed its principal investment strategies to reflect the Fund's focus on investing principally in municipal bonds that promote environmental sustainability and the performance for periods prior to that date is attributable to the Fund's performance before the strategy change. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2023, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">8.61%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-7.57%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 2.78%.</p></td></tr></table> Best Quarter 2023-12-31 0.0861 Worst Quarter 2022-03-31 -0.0757 As of June 30, 2026, the Fund’s year-to-date return was 2.78%. 2026-06-30 0.0278 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0383 0.0031 0.0224 Return after taxes on distributions 0.0381 0.0030 0.0223 Return after taxes on distributions and sale of Fund shares 0.0385 0.0092 0.0237 Bloomberg Municipal Bond Index (index reflects no deduction for fees, expenses or taxes) 0.0425 0.0080 0.0217 Franklin High Yield Corporate ETF Investment Goals <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To earn a high level of current income. Its secondary goal is to seek capital appreciation to the extent it is possible and consistent with the Fund’s principal goal.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0040 0 0.0000 0.0040 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 41 129 225 506 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 36% of the average value of its portfolio.</p> 0.36 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in high yield corporate debt securities and investments that provide exposure to high yield corporate debt securities. High yield debt securities are those that are rated below investment grade, also known as “junk bonds.” High yield debt securities are rated below the top four ratings categories by at least one independent rating agency such as S&amp;P Global Ratings (S&amp;P^®) (rated BB+ and lower) and Moody’s Ratings (Moody’s) (rated Ba1 and lower) or, if unrated, are determined to be of comparable quality by the Fund’s investment manager. Corporate issuers may include corporate or other business entities in which a sovereign or governmental agency or entity may have, indirectly or directly, an interest, including a majority or greater ownership interest. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Lower-rated securities generally pay higher yields than more highly rated securities to compensate investors for the higher risk. These securities include bonds; notes; debentures; convertible securities; bank loans and corporate loans; and senior and subordinated debt securities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest up to 100% of its total assets in high yield debt securities. The Fund may buy both rated and unrated debt securities, including securities rated below B by Moody’s or S&amp;P^® (or, if unrated, deemed comparable by the Fund’s investment manager). The Fund may invest in fixed or floating rate corporate loans and corporate debt securities, including covenant lite loans. The Fund may also invest in defaulted debt securities. The Fund may invest in debt securities of any maturity or duration.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in debt securities of U.S. and foreign issuers, including those in developing or emerging markets. These securities may be U.S. dollar or non-U.S. dollar denominated.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may purchase or receive equity securities, including in connection with restructurings. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into certain derivative transactions, principally currency and cross currency forwards; and swap agreements, including interest rate and credit default swaps (including credit default index swaps). The use of these derivative transactions may allow the Fund to obtain net long or short exposures to select currencies, interest rates, countries, durations or credit risks. 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 used for hedging purposes, a forward contract could be used to protect against possible decline in a currency’s value when a security held or to be purchased by the Fund is denominated in that currency. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund’s investment manager is a research driven, fundamental investor that relies on a team of analysts to provide in-depth industry expertise and uses both qualitative and quantitative analysis to evaluate issuers. As a “bottom-up” investor, the investment manager focuses primarily on individual securities. The investment manager also considers sectors when choosing investments. The investment manager may utilize quantitative models to evaluate investment opportunities as part of the portfolio construction process for the Fund. Quantitative models are proprietary systems that rely on mathematical computations to identify investment opportunities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In selecting securities for the Fund’s investment portfolio, the investment manager does not rely principally on the ratings assigned by rating agencies, but performs its own independent investment analysis to evaluate the creditworthiness of the issuer. The investment manager considers a variety of factors, including the issuer’s experience and managerial strength, its sensitivity to economic conditions, and its current and prospective financial condition.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The investment manager may seek to sell a security if: (i) the security has moved beyond the investment manager’s fair value target and there has been no meaningful positive change in the company’s fundamental outlook; (ii) there has been a negative fundamental change in the issuer’s credit outlook that changes the investment manager’s view of the appropriate valuation; or (iii) the investment manager’s views on macroeconomic or sector trends or valuations have changed, making that particular issuer (or that issuer’s industry) less attractive for the Fund’s portfolio. In addition, the investment manager may sell a security that still meets the investment manager’s buy criteria if another security becomes available in the new issue or secondary market that the investment manager believes has better return potential or improves the Fund’s risk profile.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in high yield corporate debt securities and investments that provide exposure to high yield corporate debt securities. Under normal market conditions, the Fund invests at least 80% of its net assets in high yield corporate debt securities and investments that provide exposure to high yield corporate debt securities High yield debt securities are those that are rated below investment grade, also known as “junk bonds.” High yield debt securities are rated below the top four ratings categories by at least one independent rating agency such as S&amp;P Global Ratings (S&amp;P^®) (rated BB+ and lower) and Moody’s Ratings (Moody’s) (rated Ba1 and lower) or, if unrated, are determined to be of comparable quality by the Fund’s investment manager. Corporate issuers may include corporate or other business entities in which a sovereign or governmental agency or entity may have, indirectly or directly, an interest, including a majority or greater ownership interest. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goals. Unlike many ETFs, the Fund is not an index-based ETF.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">High-Yield Debt Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Issuers of lower-rated or “high-yield” debt instruments (also known as “junk bonds”) are not as strong financially as those issuing higher credit quality debt instruments. High-yield debt instruments are generally considered predominantly speculative by the applicable rating agencies as their issuers are more likely to encounter financial difficulties because they may be more highly leveraged, or because of other considerations. In addition, high yield debt instruments generally are more vulnerable to changes in the relevant economy, such as a recession or a sustained period of rising interest rates, that could affect their ability to make interest and principal payments when due. The prices of high-yield debt instruments generally fluctuate more than those of higher credit quality. High-yield debt instruments are generally more illiquid (harder to sell) and harder to value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fixed rate debt securities generally are more sensitive to interest rate changes than variable rate securities. For example, variable rate securities generally will not increase in market value if interest rates decline and their market value may not decline when prevailing interest rates rise.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Liquidity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  The trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">securities or other investments when necessary to meet the Fund’s liquidity needs or in response to a specific economic event and will also generally lower the value of a security or other investments. Market prices for such securities or other investments may be volatile.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">supranational entities; terrorism; and war; (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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Currency Management Strategies: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Currency management strategies may substantially change the Fund’s 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 Fund’s exposure to currency risks, also reduce the Fund’s ability to benefit from favorable changes in currency exchange rates. Using currency management strategies for purposes other than hedging further increases the Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Prepayment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. 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, interest rate 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Convertible Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Convertible securities are subject to the risks of stocks when the underlying stock price is high relative to the conversion price (because more of the security's value resides in the conversion feature) and debt securities when the underlying stock price is low relative to the conversion price (because the conversion feature is less valuable). The value of convertible securities may rise and fall with the market value of the underlying stock or, like a debt security, vary with changes in interest rates and the credit quality of the issuer. A convertible security is not as sensitive to interest rate changes as a similar non-convertible debt security, and generally has less potential for gain or loss than the underlying stock.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Floating Rate Corporate Investments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Floating rate corporate loans and corporate debt securities generally have credit ratings below investment grade and may be subject to resale restrictions. They are often issued in connection with highly leveraged transactions, and may be subject to greater credit risks than other investments including the possibility of default or bankruptcy. In addition, a secondary market in corporate loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods, which may impair the ability to accurately value existing and prospective investments and to realize in a timely fashion the full value upon the sale of a corporate loan. A significant portion of floating rate investments may be “covenant lite” loans that may contain fewer or less restrictive constraints on the borrower or other borrower-friendly characteristics.</span></p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Quantitative Models: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The quantitative models that may be used by the investment manager as part of the Fund’s portfolio construction process to evaluate investment opportunities have been tested on historical price data. These models are based on the assumption that price movements in most markets continue to display similar patterns as those observed in the past. There is the risk that market behavior will change and that the patterns upon which the forecasts in the models are based will weaken or disappear, which would reduce the success of the models. Further, as market dynamics shift over time, a previously highly successful model may become outdated, perhaps without the investment manager recognizing that fact before substantial losses are incurred. Successful operation of a model is also reliant upon the information technology systems of the investment manager and its ability to ensure those systems remain operational and that appropriate disaster recovery procedures are in place. There can be no assurance that the investment manager will be successful in maintaining effective and operational quantitative models and the related hardware and software systems.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and an additional index with characteristics relevant to the Fund. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">9.93%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-11.86%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 2.02%.</p></td></tr></table> Best Quarter 2020-06-30 0.0993 Worst Quarter 2020-03-31 -0.1186 As of June 30, 2026, the Fund’s year-to-date return was 2.02%. 2026-06-30 0.0202 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0924 0.0478 0.0607 Return after taxes on distributions 0.0634 0.0215 0.0343 Return after taxes on distributions and sale of Fund shares 0.0540 0.0247 0.0348 Bloomberg U.S. Aggregate Index (index reflects no deduction for fees, expenses or taxes) 0.0730 -0.0036 0.0205 ICE BofA U.S. High Yield Constrained Index 0.0850 0.0450 0.0533 Franklin International Aggregate Bond ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Total investment return, consistent with prudent investing, consisting of a combination of interest income and capital appreciation.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0025 0 0.0000 0.0025 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 26 81 141 318 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 32% of the average value of its portfolio.</p> 0.32 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and investments that provide exposure to bonds. Bonds include debt obligations of any maturity, such as bonds, notes, bills and debentures. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund aggregates its investments primarily in a diversified portfolio of fixed and floating-rate bonds issued by governments, government agencies and governmental-related or corporate issuers located outside the U.S. Bonds may be denominated and issued in the local currency or in another currency. The Fund may also invest in securities or structured products that are linked to or derive their value from another security, asset or currency of any nation. In addition, the Fund’s assets are invested in issuers located in at least three countries (excluding the U.S.). The Fund may invest without limit in developing or emerging markets.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in mortgage and asset-backed securities, including collateralized debt obligations and mortgage dollar rolls. The Fund may invest in debt securities of any maturity or duration, and the average maturity or duration of debt securities in the Fund’s portfolio will fluctuate depending on the investment manager’s outlook on changing market, economic, and political conditions. The Fund may invest a portion of its assets in convertible securities and preferred securities (including preferred stock). The Fund may also invest a portion of its assets in cash or cash equivalents.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund is a “non-diversified” fund, which means it generally invests a greater portion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Although the Fund may buy bonds rated in any category, including securities in default, it focuses on “investment grade” bonds. These are issues rated in the top four rating categories at the time of purchase by at least one independent rating agency, such as S&amp;P Global Ratings (S&amp;P^®) or Moody’s Investors Service (Moody’s) or, if unrated, determined by the Fund’s investment manager to be of comparable quality. The Fund may invest up to 20% of its total assets in bonds that are rated below investment grade or, if unrated, determined by the investment </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">manager to be of comparable quality. Generally, lower rated securities pay higher yields than more highly rated securities to compensate investors for the higher risk.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">For purposes of pursuing its investment goal, the investment manager generally seeks to hedge the Fund’s foreign currency exposure using currency related derivatives, including currency and cross currency forwards, currency options, currency swaps and currency futures contracts. The Fund expects to maintain extensive positions in currency related derivative instruments as a hedging technique or to implement a currency investment strategy, which exposes a large amount of the Fund’s assets to obligations under these instruments. The results of such transactions may represent, from time to time, a large component of the Fund’s investment returns. The use of these derivative transactions may allow the fund to obtain net long or net negative (short) exposure to selected currencies. The Fund may also enter into various other transactions involving derivatives, including interest rate/bond futures contracts and interest rate swap agreements. These derivative instruments may be used for hedging purposes, to enhance Fund returns, increase liquidity, and gain or manage exposure to certain instruments or markets in a more efficient or less expensive manner. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">When choosing investments for the Fund, the investment manager allocates the Fund’s assets based upon its assessment of changing market, political and economic conditions. It considers various factors, including evaluation of interest rates, currency exchange rate changes and credit risks. The investment manager may utilize quantitative models to evaluate investment opportunities as part of the portfolio construction process for the Fund. Quantitative models are proprietary systems that rely on mathematical computations to identify investment opportunities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The investment manager may consider selling a security when it believes the security has become fully valued due to either its price appreciation or changes in the issuer’s fundamentals, or when the investment manager believes another security is a more attractive investment opportunity.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and investments that provide exposure to bonds. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and investments that provide exposure to bonds Bonds include debt obligations of any maturity, such as bonds, notes, bills and debentures. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different risks than investing in U.S. securities, and includes risks associated with: </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">(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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Sovereign Debt Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Sovereign debt securities are subject to various risks in addition to those relating to debt securities and foreign investments generally, including, but not limited to, the risk that a governmental entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due because of cash flow problems, insufficient foreign reserves, the relative size of the debt service burden to the economy as a whole, the government’s policy towards principal international lenders such as the International Monetary Fund, or the political considerations to which the government may be subject. If a sovereign debtor defaults (or threatens to default) on its sovereign debt obligations, the indebtedness may be restructured. Some sovereign debtors have in the past been able to restructure their debt payments without the approval of some or all debt holders or to declare moratoria on payments. In the event of a default on sovereign debt, the Fund may also have limited legal recourse against the defaulting government entity.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Currency Management Strategies: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Currency management strategies may substantially change the Fund’s 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 Fund’s exposure to currency risks, also reduce the Fund’s ability to benefit from favorable changes in currency exchange rates. Using currency management strategies for purposes other than hedging further increases the Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">While currency hedging techniques are designed to minimize the impact of currency fluctuations on Fund returns, hedging may not necessarily eliminate the Fund’s exposure to the currencies. The return of the currency related derivatives will not perfectly offset the actual fluctuations between the currencies and the U.S. dollar. In addition, the Fund will incur transaction costs in hedging its foreign currency exposure. The Fund’s exposure to the currencies may not be hedged at all times and the Fund may seek investment exposure to select currencies. To the extent the Fund seeks to hedge against currency fluctuations, it is possible that a degree of currency exposure may remain even at the time a hedging transaction is implemented. Increased volatility of the U.S. dollar relative to the currencies being hedged will generally reduce the effectiveness of currency hedging strategies, measured on an aggregate basis. Significant differences between U.S. dollar interest rates and foreign currency interest rates may impact the effectiveness of currency hedging strategies.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Regional:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund invests a significant portion of its assets in a specific geographic region or a particular country, the Fund will generally have more exposure to the specific regional or country risks. In the event of economic or political turmoil or a deterioration of diplomatic relations in a region or country where a substantial portion of the Fund’s assets are invested, the Fund may experience substantial illiquidity or reduction in the value of the Fund’s investments. Adverse conditions in a certain region or country can adversely affect securities of issuers in other countries whose economies appear to be unrelated. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">European securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in securities of European issuers involve risks that are specific to Europe, including certain legal, regulatory, political and economic risks. Political uncertainty surrounding the European Union (EU) and its membership 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. One or more EU member states might exit the EU, placing the European currency and banking system in jeopardy. Efforts of the EU to further unify the economic and monetary policies of its members may increase the potential interdependence of the economies of the EU members and thereby increase the risk that adverse developments in one country will adversely affect the securities of issuers located in other countries.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Current uncertainty concerning the ultimate economic consequences and geopolitical effects of Russia’s military invasion of Ukraine in February 2022 and concerns regarding potential escalation in the region have resulted in increased market volatility.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Asian securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in securities of issuers in Asian countries involve risks that are specific to Asia, including certain legal, regulatory, political, security and economic risks. Certain Asian countries have experienced currency fluctuations, less liquidity, expropriation and/or nationalization of assets, confiscatory taxation, political instability, armed conflict and social instability as a result of religious, ethnic, socio-economic and/or political unrest. An adverse economic or political event in one Asian country may negatively affect countries throughout the region. Additionally, certain Asian economies have been and </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">continue to be subject, to some extent, to over-extension of credit, high unemployment, high inflation, decreased exports, and economic recessions. Some economies in this region are dependent on a range of commodities, and are strongly affected by international commodity prices and particularly vulnerable to price changes for these products. The market for securities in this region may also be directly influenced by the flow of international capital, and by the economic and market conditions of neighboring countries. Many Asian economies have experienced rapid growth and industrialization, and there is no assurance that this growth rate will be maintained. Some Asian economies are highly dependent on trade and economic conditions in other countries can impact these economies.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mortgage Securities and Asset-Backed Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Mortgage securities differ from conventional debt securities because principal is paid back periodically over the life of the security rather than at maturity. The Fund may receive unscheduled payments of principal due to voluntary prepayments, refinancings or foreclosures on the underlying mortgage loans. Because of prepayments, mortgage securities may be less effective than some other types of debt securities as a means of "locking in" long-term interest rates and may have less potential for capital appreciation during periods of falling interest rates. A reduction in the anticipated rate of principal prepayments, especially during periods of rising interest rates, may increase or extend the effective maturity and duration of mortgage securities, making them more sensitive to interest rate changes, subject to greater price volatility, and more susceptible than some other debt securities to a decline in market value when interest rates rise.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Issuers of asset-backed securities may have limited ability to enforce the security interest in the underlying assets, and credit enhancements provided to support the securities, if any, may be inadequate to protect investors in the event of default. Like mortgage securities, asset-backed securities are subject to prepayment and extension risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Developing Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Chinese securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There are special risks associated with investments in China, including exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization and exchange control regulations (including currency blockage). Inflation and rapid fluctuations in inflation and interest rates have had, and may continue to have, negative effects on the economy and securities markets of China. China is deemed by the investment manager to be a </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">developing or an emerging markets country, which means an investment in this country has more heightened risks than general foreign investing due to a lack of established legal, political, business and social frameworks and accounting standards or auditor oversight in the country to support securities markets as well as the possibility for more widespread corruption and fraud. In addition, the standards for environmental, social and corporate governance matters in China also tend to be lower than such standards in more developed economies. Also, certain securities issued by companies located or operating in China, such as China A-Shares, are subject to trading restrictions, quota limitations, and clearing and settlement risks. In addition, there may be significant obstacles to obtaining information necessary for investigations into or litigation against companies located in or operating in China and shareholders may have limited legal remedies.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Trade disputes and the imposition of tariffs on goods and services can affect the Chinese economy, particularly in light of China's large export sector, as well as the global economy. Trade disputes can result in increased costs of production and reduced profitability for non-export-dependent companies that rely on imports to the extent China engages in retaliatory tariffs. Trade disputes may also lead to increased currency exchange rate volatility.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">High-Yield Debt Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Issuers of lower-rated or “high-yield” debt instruments (also known as “junk bonds”) are not as strong financially as those issuing higher credit quality debt instruments. High-yield debt instruments are generally considered predominantly speculative by the applicable rating agencies as their issuers are more likely to encounter financial difficulties because they may be more highly leveraged, or because of other considerations. In addition, high yield debt instruments generally are more vulnerable to changes in the relevant economy, such as a recession or a sustained period of rising interest rates, that could affect their ability to make interest and principal payments when due. The prices of high-yield debt instruments generally fluctuate more than those of higher credit quality. High-yield debt instruments are generally more illiquid (harder to sell) and harder to value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">with the currency, security, interest rate 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.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Collateralized Debt Obligations (CDOs):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The risks of an investment in a CDO, a type of asset backed security, and which includes collateralized loan obligations, depend largely on the type of collateral held by the special purpose entity (SPE) and the tranche of the CDO in which the Fund invests and may be affected by the performance of a CDO's collateral manager. CDOs may be deemed to be illiquid and subject to the Fund’s restrictions on investments in illiquid investments. In addition to the normal risks associated with debt securities and asset backed securities (e.g., interest rate risk, credit risk and default risk), CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or quality or go into default or be downgraded; (iii) the Fund may invest in tranches of a CDO that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment. These risks are amplified in tranches of CDOs that are subordinate to other tranches.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Convertible Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Convertible securities are subject to the risks of stocks when the underlying stock price is high relative to the conversion price (because more of the security's value resides in the conversion feature) and debt securities when the underlying stock price is low relative to the conversion price (because the conversion feature is less valuable). The value of convertible securities may rise and fall with the market value of the underlying stock or, like a debt security, vary with changes in interest rates and the credit quality of the issuer. A convertible security is not as sensitive to interest rate changes as a similar non-convertible debt security, and generally has less potential for gain or loss than the underlying stock.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Floating Rate Corporate Investments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Floating rate corporate loans and corporate debt securities generally have credit ratings below investment grade and may be subject to resale restrictions. They are often issued in connection with highly leveraged transactions, and may be subject to greater credit risks than other investments including the possibility of default or bankruptcy. In addition, a secondary market in corporate loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods, which may impair the ability to accurately value existing and prospective investments and to realize in a </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">timely fashion the full value upon the sale of a corporate loan. A significant portion of floating rate investments may be “covenant lite” loans that may contain fewer or less restrictive constraints on the borrower or other borrower-friendly characteristics.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit-Linked Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Credit-linked securities, which may be considered to be a type of structured debt investment, represent an interest in a pool of, or are otherwise collateralized by, one or more reference securities such as corporate debt obligations or credit default swaps thereon or bank loan obligations. The Fund may lose money investing in credit-linked securities if a credit event (for example, a bankruptcy or failure to pay interest or principal or a restructuring) occurs with respect to a reference security, if the underlying securities otherwise perform poorly, or if certain counterparties fail to satisfy their obligations. The market for credit-linked securities may suddenly become illiquid, making it difficult for the Fund to sell such securities promptly at an acceptable price.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Variable Rate Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because changes in interest rates on variable rate securities (including floating rate securities) may lag behind changes in market rates, the value of such securities may decline during periods of rising interest rates until their interest rates reset to market rates. During periods of declining interest rates, because the interest rates on variable rate securities generally reset downward, their market value is unlikely to rise to the same extent as the value of comparable fixed rate securities.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mortgage Dollar Rolls:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In a mortgage dollar roll, the Fund takes the risk that: the market price of the mortgage-backed securities will drop below their future repurchase price; the securities that it repurchases at a later date will have less favorable market characteristics; the other party to the agreement will not be able to perform; the roll adds leverage to the Fund's portfolio; and, it increases the Fund's sensitivity to interest rate changes. In addition, investment in mortgage dollar rolls may increase the portfolio turnover rate for the Fund.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Liquidity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  The trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs or in response to a specific economic event and will also generally lower the value of a security or other investments. Market prices for such securities or other investments may be volatile.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Prepayment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Extension:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Some debt securities are subject to the risk that the debt security’s effective maturity is extended because calls or prepayments are less or slower than anticipated, particularly when interest rates rise. The market value of such security may then decline and become more interest rate sensitive. </span></p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Diversification:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash/Cash Equivalents: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To the extent the Fund holds cash or cash equivalents rather than securities in which it primarily invests or uses to manage risk, the Fund may not achieve its investment objectives and may underperform.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Quantitative Models: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The quantitative models that may be used by the investment manager as part of the Fund’s portfolio construction process to evaluate investment opportunities have been tested on historical price data. These models are based on the assumption that price movements in most markets continue to display similar patterns as those observed in the past. There is the risk that market behavior will change and that the patterns upon which the forecasts in the models are based will weaken or disappear, which would reduce the success of the models. Further, as market dynamics shift over time, a previously highly successful model may become outdated, perhaps without the investment manager recognizing that fact before substantial losses are incurred. Successful operation of a model is also reliant upon the information technology systems of the investment manager and its ability to ensure those systems remain operational and that appropriate disaster recovery procedures are in place. There can be no assurance that the investment manager will be successful in maintaining effective and operational quantitative models and the related hardware and software systems.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. The Fund has a limited number of institutions that act as Authorized </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions entirely for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and an additional index with characteristics relevant to the Fund. On March 1, 2020, the Fund changed its investment strategies to seek to hedge substantially all of the Fund's foreign currency exposure and the performance for periods prior to that date is attributable to the Fund's performance before the strategy change. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2023, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">5.42%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-3.31%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 1.73%.</p></td></tr></table> Best Quarter 2023-12-31 0.0542 Worst Quarter 2022-03-31 -0.0331 As of June 30, 2026, the Fund’s year-to-date return was 1.73%. 2026-06-30 0.0173 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0238 0.0035 0.0111 Return after taxes on distributions 0.0131 -0.0164 -0.0044 Return after taxes on distributions and sale of Fund shares 0.0141 -0.0060 0.0019 Bloomberg Global Aggregate Index (index reflects no deduction for fees, expenses or taxes) 0.0817 -0.0215 0.0062 Bloomberg Global Aggregate ex-USD Index Hedged USD 0.0280 0.0079 0.0232 Franklin Senior Loan ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">High level of current income. A secondary goal is preservation of capital.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0045 0 0.0000 0.0045 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 46 144 252 567 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 37% of the average value of its portfolio.</p> 0.37 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in senior loans and investments that provide exposure to senior loans. Senior loans include loans referred to as leveraged loans, bank loans and/or floating rate loans. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund invests predominantly in income-producing senior floating interest rate corporate loans made to or issued by U.S. companies, non-U.S. entities and U.S. subsidiaries of non-U.S. entities. Floating interest rates vary with and are periodically adjusted to a generally recognized base interest rate such as the Secured Overnight Financing Rate (SOFR) or the Prime Rate. The Fund may invest in companies whose financial condition is troubled or uncertain and that may be involved in bankruptcy proceedings, reorganizations or financial restructurings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Senior loans generally have credit ratings below investment grade and may be subject to restrictions on resale. Under normal market conditions, the Fund invests at least 75% of its net assets in senior loans that are rated B- or higher at the time of purchase by a nationally recognized statistical rating organization (NRSRO) or, if unrated, are determined to be of comparable quality by the Fund’s investment manager. Under normal market conditions, the Fund may invest up to 25% of its net assets in senior loans that are rated below B- by an NRSRO or, if unrated, are determined to be of comparable quality by the investment manager.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund’s senior loans typically hold the most senior position in the capitalization structure of a company and are generally secured by specific collateral. Such senior position means that, in case the company becomes insolvent, the lenders or security holders in a senior position like the Fund’s position will typically be paid before other unsecured or subordinated creditors of the company from the assets of the company.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund typically invests in a corporate loan if the investment manager judges that the borrower can meet the scheduled payments on the obligation and the risk adjusted return meets the portfolio criteria. The investment manager performs its own independent credit analysis of each borrower/issuer and of the collateral structure securing the Fund’s investment.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in “covenant lite” loans. Certain financial institutions may define “covenant lite” loans differently. Covenant lite loans may have tranches that contain fewer or no restrictive covenants. The tranche of the covenant lite loan that has fewer restrictions typically does not include the legal clauses which allow an investor to proactively enforce financial tests or prevent or restrict undesired actions taken by the company or sponsor. Covenant lite loans also generally give the borrower/issuer more flexibility if they have met certain loan terms and provide fewer investor protections if certain criteria are breached. The Fund may experience relatively greater realized or unrealized losses or delays in enforcing its rights on its holdings of certain covenant lite loans than its holdings of loans with the usual covenants.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund currently limits its investments in debt obligations of non-U.S. entities to no more than 25% of its total assets. The Fund currently invests predominantly in debt obligations that are U.S. dollar-denominated or otherwise provide for payment in U.S. dollars.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund currently does not intend to invest more than 25% of its net assets in the obligations of borrowers in any single industry, except that, under normal market conditions, the Fund invests more than 25% of its net assets in debt obligations of companies operating in the industry group consisting of financial institutions and their holding companies, including commercial banks, thrift institutions, insurance companies and finance companies. These firms, or “agent banks,” may serve as administrators of corporate loans issued by other companies. For purposes of this restriction, the Fund currently considers such companies to include the borrower, the agent bank and any intermediate participant. The Fund may invest up to 100% of its net assets in loans where firms in such industry group are borrowers, agent banks or intermediate participants.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in structured fixed income securities, including collateralized loan obligations (CLOs). The Fund considers the CLOs that it holds "loans" for purposes of its 80% policy. The Fund may also invest a portion of its assets in cash or cash equivalents.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To pursue its investment goals, the Fund may enter into certain derivative transactions, principally high yield credit default index swaps. The Fund may use credit default index swaps to obtain net long or net short exposures to selected credit risks or durations, for the purposes of enhancing Fund returns, increasing liquidity and/or gaining exposure to particular instruments in more efficient or less expensive ways, and to hedge risks related to changes in credit risks and other market factors. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In addition to the Fund's main investments, the Fund may invest up to 20% of its net assets in certain other types of debt obligations and equity or debt securities, including, but not limited to, other secured, second lien, subordinated or unsecured </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">corporate loans and corporate debt securities, fixed rate obligations of U.S. companies, non-U.S. entities and U.S. subsidiaries of non-U.S. entities and equity securities (including convertible securities, warrants and rights) to the extent that they are acquired in connection with or incidental to the Fund's other investment activities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The investment manager may consider selling a security when it believes the security has become fully valued due to either its price appreciation or changes in the issuer’s fundamentals, or when the investment manager believes another security is a more attractive investment opportunity.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in senior loans and investments that provide exposure to senior loans. Under normal market conditions, the Fund invests at least 80% of its net assets in senior loans and investments that provide exposure to senior loans Senior loans include loans referred to as leveraged loans, bank loans and/or floating rate loans. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goals. Unlike many ETFs, the Fund is not an index-based ETF.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Floating Rate Corporate Investments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Floating rate corporate loans and corporate debt securities generally have credit ratings below investment grade and may be subject to resale restrictions. They are often issued in connection with highly leveraged transactions, and may be subject to greater credit risks than other investments including the possibility of default or bankruptcy. In addition, a secondary market in corporate loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods, which may impair the ability to accurately value existing and prospective investments and to realize in a timely fashion the full value upon the sale of a corporate loan. A significant portion of floating rate investments may be “covenant lite” loans that may contain fewer or less restrictive constraints on the borrower or other borrower-friendly characteristics.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">High-Yield Debt Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Issuers of lower-rated or “high-yield” debt instruments (also known as “junk bonds”) are not as strong financially as those issuing higher credit quality debt instruments. High-yield debt instruments are generally considered predominantly speculative by the applicable rating agencies as their issuers are more likely to encounter financial difficulties because they may be more highly leveraged, or because of other considerations. In addition, high yield debt instruments generally are more vulnerable to changes in the relevant economy, such as a recession or a sustained period of rising interest rates, that could affect their ability to make interest and principal payments when due. The prices of high-yield debt instruments generally fluctuate more than those of higher credit quality. High-yield debt instruments are generally more illiquid (harder to sell) and harder to value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Impairment of Collateral:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The value of collateral securing a loan or other corporate debt security may decline after the Fund invests and there is a risk that the value of the collateral may not be sufficient to cover the amount owed to the Fund, or the collateral securing a loan may be found invalid, may be used to pay other outstanding obligations of the borrower under applicable law or may be difficult to sell.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Liquidity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  The trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs or in response to a specific economic event and will also generally lower the value of a security or other investments. Market prices for such securities or other investments may be volatile.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Prepayment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Variable Rate Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because changes in interest rates on variable rate securities (including floating rate securities) may lag behind changes in market rates, the value of such securities may decline during periods of rising interest rates until their interest rates reset to market rates. During periods of declining interest rates, because the interest rates on variable rate securities generally reset downward, their market value is unlikely to rise to the same extent as the value of comparable fixed rate securities.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. 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, interest rate 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Collateralized Loan Obligations (CLOs):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The risks of an investment in a CLO depend largely on the type of collateral held by the special purpose entity (SPE) and the tranche of the CLO in which the Fund invests. CLOs may be deemed to be illiquid and subject to the Fund’s restrictions on investments in illiquid investments. In addition to the normal risks associated with debt securities and loans (e.g., interest rate risk, credit risk and default risk), CLOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">may decline in value or quality or go into default or be downgraded; (iii) the Fund may invest in tranches of a CLO that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> By focusing its investments in the industry group consisting of financial institutions and their holding companies including commercial banks, thrift institutions, insurance companies and finance companies, the Fund carries much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries. Because the Fund concentrates in a specific industry or group of industries there is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash/Cash Equivalents: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To the extent the Fund holds cash or cash equivalents rather than securities in which it primarily invests or uses to manage risk, the Fund may not achieve its investment objectives and may underperform.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund effects redemptions partly or entirely for cash, rather than for in-kind securities, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and an additional index with characteristics relevant to the Fund. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">4.15%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-7.60%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 0.47%.</p></td></tr></table> Best Quarter 2020-06-30 0.0415 Worst Quarter 2020-03-31 -0.0760 As of June 30, 2026, the Fund’s year-to-date return was 0.47%. 2026-06-30 0.0047 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0423 0.0560 0.0483 Return after taxes on distributions 0.0127 0.0284 0.0249 Return after taxes on distributions and sale of Fund shares 0.0248 0.0308 0.0267 Bloomberg U.S. Aggregate Index (index reflects no deduction for fees, expenses or taxes) 0.0730 -0.0036 0.0205 Morningstar® LSTA U.S. Leveraged Loan 100 Index 0.0724 0.0630 0.0556 Franklin U.S. Core Bond ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Total return.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0015 0 0.0000 0.0015 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 15 48 85 191 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 42% of the average value of its portfolio.</p> 0.42 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in bonds of U.S. issuers, including government, corporate debt, mortgage-backed and asset-backed securities. Bonds include debt obligations of any maturity, such as bonds, notes, bills and debentures. “U.S. issuers” include entities:</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">whose securities are listed or traded principally on a recognized stock exchange or over-the-counter market in the U.S.;</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">that derive 50% or more of their total revenue from either goods or services produced or sales made in the U.S.;</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">that have 50% or more of their assets in the U.S.; or</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">that are organized under the laws of, or with principal offices in, the U.S.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">“Bonds of U.S. issuers” also include: (i) securities included in the Bloomberg U.S. Aggregate Index; and (ii) bonds denominated in U.S. dollars issued by foreign banks and corporations, and registered with the SEC for sale in the U.S., such as Yankee bonds. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The Fund’s core bond strategy provides broad, diversified exposure to high quality U.S. fixed income markets by investing predominantly in investment grade debt securities and, under normal market conditions, is generally expected to have sector, credit and duration exposures comparable to the Bloomberg U.S. Aggregate Index, the Fund’s benchmark index. However, the investment manager makes investment decisions based upon its own fundamental analysis, which affects the Fund’s sector, credit and duration exposures so that they may vary from the benchmark index. Investment grade debt securities are securities that are rated at the time of purchase in the top four ratings categories by one or more independent rating organizations such as S&amp;P</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Global Ratings (S&amp;P</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">) (rated BBB- or better) or Moody’s Ratings (Moody’s) (rated Baa3 or higher) or, if unrated, are determined to be of comparable quality by the Fund’s investment manager.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">An asset-backed security is a security backed by loans, leases, and other receivables. A mortgage-backed security is an interest in a pool of mortgage loans made by and packaged or “pooled” together by banks, mortgage lenders, various governmental agencies and other financial institutions for sale to investors to finance purchases of homes, commercial buildings and other real estate. The </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fund’s investments in mortgage-backed securities include securities that are issued or guaranteed by the U.S. government, its agencies or instrumentalities, which include mortgage pass-through securities representing interests in “pools” of mortgage loans issued or guaranteed by the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac). Securities issued by different government agencies or instrumentalities have different levels of credit support. The Fund also invests in other types of mortgage securities that may be issued or guaranteed by private issuers including commercial mortgage-backed securities (CMBS). The Fund may also invest in mortgage dollar rolls.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may purchase or sell mortgage-backed securities on a delayed delivery or forward commitment basis through the “to-be-announced” (TBA) market. With TBA transactions, the particular securities to be delivered must meet specified terms and conditions.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in collateralized debt obligations (CDOs).</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">For purposes of pursuing its investment goal, the Fund may enter into various interest rate and credit-related derivatives, principally U.S. Treasury futures, interest rate swaps and credit default swaps. The use of these derivative transactions may allow the Fund to obtain net long or short exposures to select interest rates, durations or credit risks. 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. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In choosing investments for the Fund, the investment manager selects securities in various market sectors based on its assessment of changing economic, market, industry and issuer conditions. The investment manager uses a “top-down” analysis of macroeconomic trends, combined with a “bottom-up” fundamental analysis of market sectors, industries and issuers, to try to take advantage of varying sector reactions to economic events. The investment manager may utilize quantitative models to evaluate investment opportunities as part of the portfolio construction process for the Fund. Quantitative models are proprietary systems that rely on mathematical computations to identify investment opportunities. The investment manager may consider selling a security when it believes the security has become fully valued due to either its price appreciation or changes in the issuer’s fundamentals, or when the investment manager believes another security is a more attractive investment opportunity.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in bonds of U.S. issuers, including government, corporate debt, mortgage-backed and asset-backed securities. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds of U.S. issuers, including government, corporate debt, mortgage-backed and asset-backed securities Bonds include debt obligations of any maturity, such as bonds, notes, bills and debentures. “U.S. issuers” include entities: <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. Mortgage-backed securities that are not issued by U.S. government agencies may have a greater risk of default because neither the U.S. government nor an agency or instrumentality have guaranteed or provided credit support to them. The credit quality of most asset-backed securities depends primarily on the credit quality of the underlying assets and the amount of credit support (if any) provided to the </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">securities. While securities issued by Ginnie Mae are backed by the full faith and credit of the U.S. government, not all securities of the various U.S. government agencies are, including those of Fannie Mae and Freddie Mac. Also, guarantees of principal and interest payments do not apply to market prices, yields or the Fund’s share price. While the U.S. government has, in the past, provided financial support to Fannie Mae and Freddie Mac, the U.S. government is not obligated by law to do so and no assurance can be given that the U.S. government will do so in the future.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mortgage Securities and Asset-Backed Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Mortgage securities differ from conventional debt securities because principal is paid back periodically over the life of the security rather than at maturity. The Fund may receive unscheduled payments of principal due to voluntary prepayments, refinancings or foreclosures on the underlying mortgage loans. Because of prepayments, mortgage securities may be less effective than some other types of debt securities as a means of "locking in" long-term interest rates and may have less potential for capital appreciation during periods of falling interest rates. A reduction in the anticipated rate of principal prepayments, especially during periods of rising interest rates, may increase or extend the effective maturity and duration of mortgage securities, making them more sensitive to interest rate changes, subject to greater price volatility, and more susceptible than some other debt securities to a decline in market value when interest rates rise.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Issuers of asset-backed securities may have limited ability to enforce the security interest in the underlying assets, and credit enhancements provided to support the securities, if any, may be inadequate to protect investors in the event of default. Like mortgage securities, asset-backed securities are subject to prepayment and extension risks.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Collateralized Debt Obligations (CDOs):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The risks of an investment in a CDO, a type of asset backed security, and which includes collateralized loan obligations, depend largely on the type of collateral held by the special purpose entity (SPE) and the tranche of the CDO in which the Fund invests and may be affected by the performance of a CDO's collateral manager. CDOs may be deemed to be illiquid and subject to the Fund’s restrictions on investments in illiquid investments. In addition to the normal risks associated with debt securities and asset backed securities (e.g., interest rate risk, credit risk and default risk), CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or quality or go into default or be downgraded; (iii) the Fund may invest in tranches of a CDO that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment. These risks are amplified in tranches of CDOs that are subordinate to other tranches.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. 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 security, interest rate 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Prepayment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Extension:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Some debt securities, particularly mortgage-backed securities, are subject to the risk that the debt security’s effective maturity is extended because calls or prepayments are less or slower than anticipated, particularly when interest rates rise. The market value of such security may then decline and become more interest rate sensitive. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mortgage Dollar Rolls:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In a mortgage dollar roll, the Fund takes the risk that: the market price of the mortgage-backed securities will drop below their future repurchase price; the securities that it repurchases at a later date will have less favorable market characteristics; the other party to the agreement will not be able to perform; the roll adds leverage to the Fund's portfolio; and, it increases the Fund's sensitivity to interest rate changes. In addition, investment in mortgage dollar rolls may increase the portfolio turnover rate for the Fund.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">When-Issued and Delayed Delivery Transactions</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Mortgage-backed securities may be issued on a when-issued or delayed delivery basis, where payment and delivery take place at a future date. Because the market price of the security may fluctuate during the time before payment and delivery, the Fund assumes the risk that the value of the security at delivery may be more or less than the purchase price.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Quantitative Models: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The quantitative models that may be used by the investment manager as part of the Fund’s portfolio construction process to evaluate investment opportunities have been tested on historical price data. These models are based on the assumption that price movements in most markets continue to display similar patterns as those observed in the past. There is the risk that market behavior will change and that the patterns upon which the forecasts in the models are based will weaken or disappear, which would reduce the success of the models. Further, as market dynamics shift over time, a previously highly successful model may become outdated, perhaps without the investment manager recognizing that fact before substantial losses are incurred. Successful operation of a model is </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">also reliant upon the information technology systems of the investment manager and its ability to ensure those systems remain operational and that appropriate disaster recovery procedures are in place. There can be no assurance that the investment manager will be successful in maintaining effective and operational quantitative models and the related hardware and software systems.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions entirely for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2023, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">6.67%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-6.21%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 0.76%.</p></td></tr></table> Best Quarter 2023-12-31 0.0667 Worst Quarter 2022-03-31 -0.0621 As of June 30, 2026, the Fund’s year-to-date return was 0.76%. 2026-06-30 0.0076 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0708 -0.0049 0.0096 Return after taxes on distributions 0.0525 -0.0181 -0.0037 Return after taxes on distributions and sale of Fund shares 0.0416 -0.0093 0.0017 Bloomberg U.S. Aggregate Index (index reflects no deduction for fees, expenses or taxes) 0.0730 -0.0036 0.0103 Franklin U.S. Treasury Bond ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Income.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 24% of the average value of its portfolio.</p> 0.24 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in direct obligations of the U.S. Treasury, including Treasury bonds, bills, notes and Treasury Inflation-Protected Securities (TIPS), and investments that provide exposure to direct obligations of the U.S. Treasury. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in U.S. Treasury securities of any maturity and intends to primarily focus on U.S. Treasury securities with a remaining maturity of between 1-30 years. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may also invest in securities issued or guaranteed by the U.S. government, its agencies, or instrumentalities, including government sponsored entities and mortgage-backed securities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">A mortgage-backed security is an interest in a pool of mortgage loans made and packaged or “pooled” together by banks, mortgage lenders, various governmental agencies and other financial institutions for sale to investors to finance purchases of homes, commercial buildings and other real estate. The Fund’s investments in mortgage-backed securities include securities that are issued or guaranteed by the U.S. government, its agencies or instrumentalities, which include mortgage pass-through securities representing interests in “pools” of mortgage loans issued or guaranteed by the Government National Mortgage Association (Ginnie Mae), the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac). The mortgage securities the Fund invests in may be fixed-rate or adjustable-rate mortgage-backed securities (ARMS).</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may also purchase or sell mortgage securities on a delayed delivery or forward commitment basis through the “to-be-announced” (TBA) market. With TBA transactions, the particular securities to be delivered must meet specified terms and conditions.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To pursue its investment goal, the Fund may enter into certain interest rate-related derivative transactions, principally interest rate/bond and U.S. Treasury futures contracts and interest rate swaps. The use of these derivative transactions may allow the Fund to obtain net long or short exposures to select interest rates or durations. These derivatives may be used to enhance Fund returns, increase </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The investment manager generally invests in high quality fixed income securities. Using this straightforward approach, the investment manager seeks to produce current income with a high degree of credit safety from a conservatively managed portfolio of U.S. Treasury securities. The investment manager may utilize quantitative models to evaluate investment opportunities as part of the portfolio construction process for the Fund. Quantitative models are proprietary systems that rely on mathematical computations to identify investment opportunities. The investment manager may consider selling a security when it believes the security has become fully valued due to either its price appreciation or changes in the fundamentals, or when the investment manager believes another security is a more attractive investment opportunity.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in direct obligations of the U.S. Treasury, including Treasury bonds, bills, notes and Treasury Inflation-Protected Securities (TIPS), and investments that provide exposure to direct obligations of the U. Under normal market conditions, the Fund invests at least 80% of its net assets in direct obligations of the U.S. Treasury, including Treasury bonds, bills, notes and Treasury Inflation-Protected Securities (TIPS), and investments that provide exposure to direct obligations of the U S. Treasury. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mortgage Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Mortgage securities differ from conventional debt securities because principal is paid back periodically over the life of the security rather than at maturity. The Fund may receive unscheduled payments of principal due to voluntary prepayments, refinancings or foreclosures on the underlying mortgage loans. Because of prepayments, mortgage securities may be less effective than some other types of debt securities as a means of "locking in" long-term interest rates and may have less potential for capital appreciation during periods of falling interest rates. A reduction in the anticipated rate of principal prepayments, especially during periods of rising interest rates, may increase or extend the effective maturity and duration of mortgage securities, making them more sensitive to interest rate changes, subject to greater price volatility, and more susceptible than some other debt securities to a decline in market value when interest rates rise.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Inflation-Indexed Securities</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Inflation-indexed securities have a tendency to react to changes in real interest rates. Real interest rates represent nominal (stated) interest rates lowered by the anticipated effect of inflation. In general, the price of an inflation-indexed security decreases when real interest rates increase, and increases when real interest rates decrease. Interest payments on inflation-indexed securities will fluctuate as the principal and/or interest is adjusted for inflation and can be unpredictable. Any increase in the principal amount of an inflation-protected debt security will be considered taxable ordinary income, even though investors, such as the Fund, do not receive their principal until maturity.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. While securities issued by Ginnie Mae are backed by the full faith and credit of the U.S. government, not all securities of the various U.S. government agencies are, including those of Fannie Mae and Freddie Mac. Also, guarantees of principal and </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">interest payments do not apply to market prices, yields or the Fund’s share price. While the U.S. government has, in the past, provided financial support to Fannie Mae and Freddie Mac, the U.S. government is not obligated by law to do so and no assurance can be given that the U.S. government will do so in the future.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Prepayment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Extension:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Some debt securities, particularly mortgage-backed securities, are subject to the risk that the debt security’s effective maturity is extended because calls or prepayments are less or slower than anticipated, particularly when interest rates rise. The market value of such security may then decline and become more interest rate sensitive. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">When-Issued and Delayed Delivery Transactions: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Mortgage-backed securities may be issued on a when-issued or delayed delivery basis, where payment and delivery take place at a future date. Because the market price of the security may fluctuate during the time before payment and delivery, the Fund assumes the risk that the value of the security at delivery may be more or less than the purchase price.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. 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 security, interest rate 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.</span></p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">(including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Quantitative Models: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The quantitative models that may be used by the investment manager as part of the Fund’s portfolio construction process to evaluate investment opportunities have been tested on historical price data. These models are based on the assumption that price movements in most markets continue to display similar patterns as those observed in the past. There is the risk that market behavior will change and that the patterns upon which the forecasts in the models are based will weaken or disappear, which would reduce the success of the models. Further, as market dynamics shift over time, a previously highly successful model may become outdated, perhaps without the investment manager recognizing that fact before substantial losses are incurred. Successful operation of a model is also reliant upon the information technology systems of the investment manager and its ability to ensure those systems remain operational and that appropriate disaster recovery procedures are in place. There can be no assurance that the investment manager will be successful in maintaining effective and operational quantitative models and the related hardware and software systems.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Portfolio Turnover:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Active and frequent trading may increase a shareholder’s tax liability and the Fund’s transaction costs, which could detract from Fund performance.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions entirely for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and an additional index with characteristics relevant to the Fund. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2023, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">5.43%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-5.02%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 0.48%.</p></td></tr></table> Best Quarter 2023-12-31 0.0543 Worst Quarter 2022-03-31 -0.0502 As of June 30, 2026, the Fund’s year-to-date return was 0.48%. 2026-06-30 0.0048 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0638 -0.0075 -0.0056 Return after taxes on distributions 0.0463 -0.0200 -0.0177 Return after taxes on distributions and sale of Fund shares 0.0376 -0.0110 -0.0094 Bloomberg U.S. Aggregate Index (index reflects no deduction for fees, expenses or taxes) 0.0730 -0.0036 0.0003 Bloomberg U.S. Treasury Index 0.0632 -0.0099 -0.0082 Franklin Ultra Short Bond ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">A high level of current income as is consistent with prudent investing, while seeking preservation of capital.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0015 0 0.0000 0.0015 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 15 48 85 191 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 34% of the average value of its portfolio.</p> 0.34 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and investments that provide exposure to bonds. Bonds include, but are not limited to, a variety of fixed and variable rate debt obligations, including government and corporate debt securities; money market instruments; and municipal securities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund targets an estimated average portfolio duration of one (1) year or less. Duration is a measure of the expected price volatility of a debt instrument as a result of changes in market rates of interest, based on the weighted average timing of the instrument’s expected principal and interest payments and other factors. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund invests predominantly in U.S. dollar denominated, investment grade debt securities and investments. Investment grade debt securities are securities that are rated at the time of purchase in the top four ratings categories by one or more independent rating organizations such as S&amp;P^® Global Ratings (S&amp;P^®) (rated BBB- or better) or Moody’s Ratings (Moody’s) (rated Baa3 or higher) or, if unrated, are determined to be of comparable quality by the Fund’s investment manager. The Fund’s focus on the credit quality of its portfolio is intended to reduce credit risk and help to preserve the Fund’s capital. The Fund is not a money market fund and does not seek to maintain a stable net asset value of $1.00 per share.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund generally expects to invest a substantial portion of its assets in cash, cash equivalents and high quality money market securities, including commercial paper, certificates of deposit, repurchase agreements and affiliated or unaffiliated money market funds.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in securities issued or guaranteed by the U.S. government or by non-U.S. governments or their respective agencies or instrumentalities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in U.S. dollar denominated foreign securities, including emerging market securities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Although the Fund may invest across economic sectors, the Fund concentrates its investments in financials related industries.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In choosing investments for the Fund, the investment manager selects securities in various market sectors based on its assessment of changing economic, market, industry and issuer conditions. The investment manager uses a “top-down” analysis of macroeconomic trends, combined with a “bottom-up” fundamental analysis of market sectors, industries and issuers, to try to take advantage of </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">varying sector reactions to economic events. The investment manager may utilize quantitative models to evaluate investment opportunities as part of the portfolio construction process for the Fund. Quantitative models are proprietary systems that rely on mathematical computations to identify investment opportunities. The investment manager may consider selling a security when it believes the security has become fully valued due to either its price appreciation or changes in the issuer’s fundamentals, or when the investment manager believes another security is a more attractive investment opportunity.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and investments that provide exposure to bonds. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds and investments that provide exposure to bonds Bonds include, but are not limited to, a variety of fixed and variable rate debt obligations, including government and corporate debt securities; money market instruments; and municipal securities. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Variable Rate Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because changes in interest rates on variable rate securities (including floating rate securities) may lag behind changes in market rates, the value of such securities may decline during periods of rising interest rates until their interest rates reset to market rates. During periods of declining interest rates, because the interest rates on variable rate securities generally reset downward, their market value is unlikely to rise to the same extent as the value of comparable fixed rate securities.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> By focusing its investments in financials related industries, the Fund carries much greater risks of adverse developments and price movements in such industries than a fund that invests in a wider variety of industries. Because the Fund concentrates in a specific industry or group of industries there is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Financial services companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Financial services companies are subject to extensive government regulation that may affect their profitability in many ways, including by limiting the amount and types of loans and other commitments they can make, and the interest rates and fees they can charge. A financial services company's profitability, and therefore its stock prices, may be adversely affected in certain market cycles, including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Changing regulations, continuing consolidations, and development of new products and structures all are likely to have a significant impact on financial services companies.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Sovereign Debt Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Sovereign debt securities are subject to various risks in addition to those relating to debt securities and foreign investments generally, including, but not limited to, the risk that a governmental entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due because of cash flow problems, insufficient foreign reserves, the relative size of the debt service burden to the economy as a whole, the government’s policy towards principal international lenders such as the International Monetary Fund, or the political considerations to which the government may be subject. If a sovereign debtor defaults (or threatens to default) on its sovereign debt obligations, the indebtedness may be restructured. Some sovereign debtors have in the past been able to restructure their debt payments without the approval of some or all debt holders or to declare moratoria on payments. In the event of a default on sovereign debt, the Fund may also have limited legal recourse against the defaulting government entity.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Quantitative Models: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The quantitative models that may be used by the investment manager as part of the Fund’s portfolio construction process to evaluate investment opportunities have been tested on historical price data. These models are based on the assumption that price movements in most markets continue to display similar patterns as those observed in the past. There is the risk that market behavior will change and that the patterns upon which the forecasts in the models are based will weaken or disappear, which would reduce the success of the models. Further, as market dynamics shift over time, a previously highly successful model may become outdated, perhaps without the investment manager recognizing that fact before substantial losses are incurred. Successful operation of a model is also reliant upon the information technology systems of the investment manager and its ability to ensure those systems remain operational and that appropriate disaster recovery procedures are in place. There can be no assurance that the investment manager will be successful in maintaining effective and operational quantitative models and the related hardware and software systems.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash/Cash Equivalents: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To the extent the Fund holds cash or cash equivalents rather than securities in which it primarily invests or uses to manage risk, the Fund may not achieve its investment objectives and may underperform.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s shares trading at a premium or discount to NAV. Thus, you may pay more (or less) than </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund effects redemptions partly or entirely for cash, rather than for in-kind securities, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and an additional index with characteristics relevant to the Fund. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2023, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">1.68%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-0.80%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 1.78%.</p></td></tr></table> Best Quarter 2023-12-31 0.0168 Worst Quarter 2022-03-31 -0.0080 As of June 30, 2026, the Fund’s year-to-date return was 1.78%. 2026-06-30 0.0178 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0512 0.0337 0.0322 Return after taxes on distributions 0.0320 0.0199 0.0189 Return after taxes on distributions and sale of Fund shares 0.0300 0.0198 0.0189 Bloomberg U.S. Aggregate Index (index reflects no deduction for fees, expenses or taxes) 0.0730 -0.0036 -0.0022 ICE BofA U.S. 3-Month Treasury Bill Index 0.0418 0.0317 0.0291 Franklin Systematic Style Premia ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Absolute return.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0065 0 0.0000 0.0065 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 66 207 361 808 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 68% of the average value of its portfolio.</p> 0.68 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund seeks to achieve its investment goal by allocating its assets across two underlying “alternative” investment strategies, which represent top-down and bottom-up approaches to capturing factor-based risk premia. A “risk premium” is the economic concept that an investor should receive a premium (that is, a higher expected return) for bearing risk. In other words, risk premium refers to the return that is expected for assuming a particular market risk. The strategies consist of a top-down risk premia strategy and a bottom-up long/short equity strategy, each of which is described below.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:italic; font-weight:normal; text-decoration:none;">Top-down risk premia strategy.</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The top-down risk premia strategy focuses on value, momentum and carry factors in taking both long and short positions across equity, fixed income, commodity and currency asset classes. The exposure to the commodity and currency asset classes is obtained indirectly through the use of derivatives, while the exposure to the equity and fixed income asset classes is primarily obtained indirectly through the use of derivatives, but may also be achieved through direct investment. Under normal market conditions, the top-down risk premia strategy invests primarily in equity, interest rate/bond and commodity index futures; equity and commodity-linked total return swaps; risk premia total return swaps, including total return swaps referencing proprietary or third-party indices designed to capture systematic factor exposures across equity, fixed income, commodity and currency asset classes; and currency forwards.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:italic; font-weight:normal; text-decoration:none;">Value</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> – Value strategies favor investments that appear cheap over those that appear expensive based on fundamental measures related to price, seeking to capture the tendency for relatively cheap assets to outperform relatively expensive assets. The investment manager seeks to buy assets that are “cheap” and sell or short those that are “expensive.” For purposes of the top-down risk premia strategy, examples of value measures include using price to earnings, price to forward earnings, price to book value and dividend yield.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:italic; font-weight:normal; text-decoration:none;">Momentum</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> – Momentum strategies favor investments that have performed relatively well over those that have underperformed over the medium-term (i.e., one year or less), seeking to capture the tendency that an asset’s recent relative performance will continue in the near future. The investment manager seeks to buy assets that recently outperformed their peers and sell or short those that recently underperformed. For purposes of the top-down risk premia strategy, examples of momentum measures </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; margin-left:36.0pt; text-decoration:none;">include simple price momentum (measured over the prior twelve months with the most recent month removed) for selecting stocks and price- and yield-based momentum for selecting bonds.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:italic; font-weight:normal; text-decoration:none;">Carry</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> – An asset’s “carry” is its expected return assuming market conditions, including its price, stay the same. Carry strategies favor investments with higher yields over those with lower yields, seeking to capture the tendency for higher-yielding assets to provide higher returns than lower-yielding assets. The investment manager seeks to take long positions in high-yielding assets and sell or take short positions in low-yielding assets. An example of carry measures includes selecting currencies and bonds based on interest rates.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:italic; font-weight:normal; text-decoration:none;">Bottom-up long/short equity strategy.</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The bottom-up long/short equity strategy focuses on quality, value and momentum factors in determining whether to hold long or short positions in individual equity securities. Under normal market conditions, the bottom-up long/short equity strategy invests primarily in equity securities and derivative instruments, including equity index futures and equity total return swaps, with equity index futures and equity total return swaps being used to obtain short exposures. The Fund also utilizes risk premia total return swaps to obtain long or short equity index exposures or take long or short positions in individual equities. Long/short equity strategies generally seek to produce returns from investments in the equity markets by taking long and short positions in stocks and stock indices (through the use of derivatives or through a short position in an exchange-traded fund (ETF)). Long positions benefit from an increase in the price of the underlying instrument, while short positions benefit from a decrease in that price.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:italic; font-weight:normal; text-decoration:none;">Quality – </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Quality strategies favor investments that exhibit relatively higher quality characteristics. Examples of quality measures include return on equity, earnings variability, cash return on assets and leverage.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:italic; font-weight:normal; text-decoration:none;">Value</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> – For the bottom-up long/short equity strategy, the value factor is used to identify cheapness by using earnings, book value, sales and cash flow ratios relative to market capitalization, and enterprise value compared against a peer group. For purposes of the bottom-up long/short equity strategy, examples of value measures include earnings yield; earnings before interest, tax, depreciation and amortization (EBITDA) to enterprise value; and dividend yield.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:36.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:italic; font-weight:normal; text-decoration:none;">Momentum</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> – For the bottom-up long/short equity strategy, the momentum factor is used to identify investment trends by looking at historical price movements that are believed to persist and forward-looking information from analyst estimates. For purposes of the bottom-up long/short equity strategy, examples of momentum measures include 12-month return with </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; margin-left:36.0pt; text-decoration:none;">the most recent month removed (simple price momentum) and analyst earnings-per-share forecasts for growth acceleration.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the investment manager seeks to allocate assets between the two factor-based risk premia alternative investment strategies described above according to each strategy’s estimated risk, as measured by historical returns based risk models. The allocation to each strategy is driven by the estimated risk contribution of each individual strategy to the Fund's overall investment strategy, which the investment manager seeks to keep within certain pre-determined bounds.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Through the two strategies, the investment manager invests the Fund’s assets based on a systematic investment process for securities selection and asset allocation by utilizing quantitative models. Quantitative models are proprietary systems that rely on mathematical computations to evaluate investment opportunities. By employing these two approaches, the investment manager seeks to provide positive absolute return over time while maintaining a relatively low correlation with traditional markets. The exposure to individual factors may vary based on the market opportunity of the individual factors.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Through the two strategies, the Fund may invest in or obtain exposure to: (i) equity securities (which may include common stocks and preferred stocks), (ii) debt securities (which may include bonds, notes, debentures, banker’s acceptances and commercial paper), (iii) commodity-linked derivative instruments and (iv) currency-related derivative instruments. The Fund may invest in or obtain exposure to securities of U.S. and foreign companies of any capitalization size, including those located in emerging markets. The debt securities may include securities of the U.S. government, its agencies and instrumentalities and sovereign, quasi-sovereign and corporate bonds. In addition, the debt securities in which the Fund may invest or obtain exposure to may be of any maturity or duration. The Fund also may, from time to time, hold significant amounts of cash or cash equivalents, including money market instruments and affiliated or unaffiliated money market funds, due to its investments in derivative instruments. The Fund may engage in active and frequent trading as part of its investment strategies.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may use derivatives for both hedging and non-hedging (investment) purposes. The Fund’s derivative investments may include, among other instruments: (i) futures contracts, including futures on equity, interest rate/bond and commodity indices; (ii) swaps, including equity and commodity-linked total return swaps, and risk premia total return swaps referencing proprietary or third-party indices designed to capture systematic factor exposures across equity, fixed income, commodity and currency asset classes; and (iii) currency forward contracts. These derivatives may be used to enhance Fund returns, increase liquidity, gain long or short exposure to certain instruments, markets or factors in a more efficient or less expensive way and/or hedge risks associated with its other </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">portfolio investments. The results of such transactions are expected to represent a material component of the Fund’s investment returns. As a result of the Fund’s use of derivatives, the Fund may have economic leverage, which means the sum of the Fund’s investment exposures through its use of derivatives may significantly exceed the amount of assets invested in the Fund, although these exposures may vary over time.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will hold its commodity-linked derivative instruments indirectly through a wholly-owned subsidiary established in the Cayman Islands (Subsidiary).</p> <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management and Asset Allocation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  The Fund is actively managed and could experience losses if the investment manager's judgment and decisions about markets, future volatility, interest rates, industries, sectors and regions or the attractiveness, relative values, liquidity, effectiveness or potential appreciation of particular investments made for the Fund’s portfolio prove to be incorrect. The investment manager's allocation of Fund assets among different strategies, asset classes and investments may not prove beneficial in light of subsequent market events. There can be no guarantee that these techniques or the investment manager's investment decisions will produce the desired results.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund's ability to achieve its investment goal depends largely upon the investment manager's successful evaluation of the risks, potential returns and correlation properties with respect to the various risk premia in which the Fund invests. There can be no assurance that the factor-based risk premia investment strategies utilized by the investment manager will enhance performance, reduce volatility or reduce potential loss. Exposure to such factors may detract from performance in some market environments, perhaps for extended periods. There is also the risk that the Fund's investments will correlate with the performance of the broader securities markets to a greater degree than anticipated, particularly during volatile market conditions. The Fund may have investments that appreciate or decrease significantly in value over short periods of time. Significant short-term price movements could adversely impact the performance of the Fund and cause substantial losses.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Use of Leverage:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Subject to applicable regulatory requirements, the investment manager generally may use leverage as part of its investment strategies. This will result in the Fund’s market exposure being higher than its NAV. The Fund will generally gain leverage through derivative instruments that have embedded leverage. For example, the low margin deposits normally required in futures trading permit a high degree of leverage. Accordingly, a relatively small price movement in an underlying reference asset to a derivatives instrument may result in immediate and substantial loss or gain to the Fund.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a commodity, currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the commodity, currency, security, interest rate or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Liquidity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  The trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs or in response to a specific economic event and will also generally lower the value of a security or other investments. Market prices for such securities or other investments may be volatile.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Quantitative Models: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The quantitative models that may be used by the investment manager as part of the Fund’s portfolio construction process to evaluate investment opportunities have been tested on historical price data. These models are based on the assumption that price movements in most markets continue to display similar patterns as those observed in the past. There is the risk that market behavior will change and that the patterns upon which the forecasts in the models are based will weaken or disappear, which would reduce the success of the models. Further, as market dynamics shift over time, a previously highly successful model may become outdated, perhaps without the investment manager recognizing that fact before substantial losses are incurred. Successful operation of a model is also reliant upon the information technology systems of the investment manager and its ability to ensure those systems remain operational and that appropriate disaster recovery procedures are in place. There can be no assurance that the </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">investment manager will be successful in maintaining effective and operational quantitative models and the related hardware and software systems.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Commodities</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#000000; font-weight:normal; text-decoration:none;">The Fund’s exposure to investments in physical commodities presents unique risks. Investing in physical commodities, including through commodity-linked derivative instruments such as commodity-linked total return swaps and commodity index futures, is speculative and can be extremely volatile. Market prices of commodities may fluctuate rapidly based on numerous factors, including: changes in supply and demand relationships (whether actual, perceived, anticipated, unanticipated or unrealized); weather; agriculture; trade; domestic and foreign political and economic events and policies; diseases; pestilence; technological developments; currency exchange rate fluctuations; and monetary and other governmental policies, action and inaction. The current or “spot” prices of physical commodities may also affect, in a volatile and inconsistent manner, the prices of futures contracts in respect of the relevant commodity. Certain commodities are used primarily in one industry, and fluctuations in levels of activity in (or the availability of alternative resources to) one industry may have a disproportionate effect on global demand for a particular commodity. Moreover, recent growth in industrial production and gross domestic product has made China and other developing nations oversized users of commodities and has increased the extent to which certain commodities prices are influenced by those markets.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Currency Management Strategies: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Currency management strategies may substantially change the Fund’s 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 Fund’s exposure to currency risks, also reduce the Fund’s ability to benefit from favorable changes in currency exchange rates. Using currency management strategies for purposes other than hedging further increases the Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Short Positions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund will incur a loss as a result of a short position if the price of the asset sold short increases in value. Because the Fund’s loss on a short position arises from increases in the value of the asset sold short, such loss, like the price of the asset sold short, is theoretically unlimited. Short positions are speculative transactions and involve special risks, including greater reliance on the investment manager’s ability to accurately anticipate the future value of a security. Furthermore, taking short positions in securities results in a form of leverage which may cause the Fund to be more volatile.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small and Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by small and mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">product lines and markets. In addition, small and mid capitalization 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. The markets for securities issued by small and mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Portfolio Turnover:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Active and frequent trading may increase a shareholder’s tax liability and the Fund’s transaction costs, which could detract from Fund performance.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s shares trading at a premium or discount to NAV. Thus, you may pay more (or less) than </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions entirely for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and additional indexes with characteristics relevant to the Fund. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2024, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">9.68%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-6.76%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 2.51%.</p></td></tr></table> Best Quarter 2024-03-31 0.0968 Worst Quarter 2020-03-31 -0.0676 As of June 30, 2026, the Fund’s year-to-date return was 2.51%. 2026-06-30 0.0251 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.1527 0.0818 0.0383 Return after taxes on distributions 0.1420 0.0761 0.0285 Return after taxes on distributions and sale of Fund shares 0.0919 0.0625 0.0255 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.1315 0.1454 Bloomberg U.S. Aggregate Index 0.0730 -0.0036 0.0094 ICE BofA U.S. 3-Month Treasury Bill Index 0.0418 0.0317 0.0274 2026-08-01 Franklin Dividend Growth ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide long-term capital appreciation.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0049 0 0.0000 0.0049 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 50 157 274 615 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 period from August 28, 2025 (commencement of operations) to March 31, 2026, the Fund's portfolio turnover rate was 10% of the average value of its portfolio.</p> 0.10 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal circumstances, the Fund invests at least 80% of its net assets in “dividend growth” companies. For this purpose, dividend growth companies include companies (or securities issued by such companies) with a history of paying consistent or increasing dividends or that the investment manager believes have the potential to increase future dividend payments based on dividend growth rate estimates from third-party and internal sources.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund invests predominantly in equity securities, primarily common stock. Equity securities include common stocks, preferred stocks, depositary receipts, and securities convertible into common stocks, as well as equity-related instruments. The Fund may invest in companies of any size, across the entire market capitalization spectrum. The Fund may invest up to 25% of its total assets in foreign securities (typically through the purchase of depositary receipts).</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">When choosing investments for the Fund, the investment manager applies a research-driven, “bottom up” fundamental approach. As a “bottom-up” investor focusing primarily on individual securities, the investment manager looks for companies that it believes meet the criteria for dividend growth above and are fundamentally sound and attempts to acquire them at attractive prices. In constructing the Fund’s portfolio, the investment manager does not necessarily focus on companies whose securities pay a high dividend rate but rather seeks to identify companies that have historically increased or the investment manager believes have the potential to increase their dividend payments.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund maintains the flexibility to invest in securities of companies from a variety of sectors, but from time to time, based on economic conditions, the Fund may have significant positions in particular sectors, such as technology, financial services or healthcare.</p> Under normal circumstances, the Fund invests at least 80% of its net assets in “dividend growth” companies For this purpose, dividend growth companies include companies (or securities issued by such companies) with a history of paying consistent or increasing dividends or that the investment manager believes have the potential to increase future dividend payments based on dividend growth rate estimates from third-party and internal sources. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x8"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Dividend-Oriented Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer's stock and less available income for the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies may fall out of favor with investors based on market and economic conditions. Large capitalization companies may underperform relative to small and mid capitalization companies because they may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. </span></p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments from time to time, the Fund may be subject to greater risks of adverse developments in such areas of focus than a fund </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">that invests in a wider variety of countries, regions, industries, sectors or investments.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Technology companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies in the technology sector have historically been volatile due to the rapid pace of product change and development within the sector. For example, their products and services may not prove commercially successful or may become obsolete quickly. In addition, delays in or cancellation of the release of anticipated products or services may also affect the price of a technology company’s stock. Technology companies are subject to significant competitive pressures, such as new market entrants, aggressive pricing and tight profit margins. The activities of these companies may also be adversely affected by changes in government regulations, worldwide technological developments (including the development of artificial intelligence and machine learning) or investor perception of a company and/or its products or services. The stock prices of companies operating within this sector may be subject to abrupt or erratic movements.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Financial services companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Financial services companies are subject to extensive government regulation that may affect their profitability in many ways, including by limiting the amount and types of loans and other commitments they can make, and the interest rates and fees they can charge. A financial services company's profitability, and therefore its stock prices, may be adversely affected in certain market cycles, including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Changing regulations, continuing consolidations, and development of new products and structures all are likely to have a significant impact on financial services companies.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Healthcare companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The activities of healthcare companies may be funded or subsidized by federal and state governments. If government funding and subsidies are reduced or discontinued, the profitability of these companies could be adversely affected. Healthcare companies may also be affected by government policies on healthcare reimbursements, regulatory approval for new drugs and medical products, and similar matters. They are also subject to legislative risk, i.e., the risks associated with the reform of the healthcare system through legislation.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small and Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by small and mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, small and mid capitalization 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. The markets for securities issued by small and mid </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. The Fund's investment manager applies investment techniques and </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">risk analyses in making investment decisions for the Fund, but there can be no guarantee that these decisions will produce the desired results.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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., </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </p> franklintempleton.com (800) DIAL BEN/342-5236 The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. FRANKLIN FOCUSED DYNAMIC GROWTH ETF 2026-08-01 Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Capital appreciation.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0041 0 0.0000 0.0041 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 42 132 230 517 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 37% of the average value of its portfolio.</p> 0.37 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in the equity securities of companies that are expected by the investment manager to demonstrate positive future growth. For this Fund, growth companies include companies (or securities issued by such companies) that the investment manager believes have the potential for sustainable long-term sales or earnings growth based on sales and/or earnings growth estimates from third-party and internal sources. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests predominantly in equity securities of companies that the investment manager believes offer compelling growth opportunities. In selecting securities, the investment manager considers many factors, including historical and potential growth in revenues and earnings, assessment of strength and quality of management, and determination of a company’s strategic positioning within its industry and in the dynamically changing global economy. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The equity securities in which the Fund invests are predominantly common stock. The Fund may invest in companies of any size, including small and medium capitalization companies. In addition to the Fund’s main investments, the Fund may invest a portion (up to 25%) of its net assets in foreign equity securities, including those located in emerging markets. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund generally seeks to maintain a portfolio that focuses on securities of approximately 20-50 companies and may focus its investments in particular issuers. Although the Fund seeks investments across a number of sectors, from time to time, based on economic conditions, the Fund may have significant positions in particular sectors such as information technology. The Fund is a “non-diversified” fund, which means it generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The investment manager is a research-driven, “bottom-up” fundamental investor. The investment manager’s investment approach for the Fund focuses on identifying companies that offer, in its opinion, a compelling trade-off between growth opportunity, business and financial risk and valuation. Key valuation metrics include discounted-cash-flow, absolute and relative price-to-earnings, enterprise value, and sum of the parts, among others. </p> Under normal market conditions, the Fund invests at least 80% of its net assets in the equity securities of companies that are expected by the investment manager to demonstrate positive future growth. Under normal market conditions, the Fund invests at least 80% of its net assets in the equity securities of companies that are expected by the investment manager to demonstrate positive future growth For this Fund, growth companies include companies (or securities issued by such companies) that the investment manager believes have the potential for sustainable long-term sales or earnings growth based on sales and/or earnings growth estimates from third-party and internal sources. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x9"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Information technology companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  Companies operating within information technology related industries may be affected by worldwide technological </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">developments (including the development of artificial intelligence and machine learning), the success of their products and services (which may be outdated quickly), anticipated products or services that are delayed or cancelled, and investor perception of the company and/or its products or services. These companies typically face intense competition and potentially rapid product obsolescence. They may also have limited product lines, markets, financial resources or personnel. Information technology companies are also heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. There can be no assurance these companies will be able to successfully protect their intellectual property to prevent the misappropriation of their technology, or that competitors will not develop technology that is substantially similar or superior to such companies’ technology. These companies typically engage in significant amounts of spending on research and development, and there is no guarantee that the products or services produced by these companies will be successful. Information technology companies are also potential targets for cyberattacks, which can have a materially adverse impact on the performance of these companies. The customers and/or suppliers of information technology companies may be concentrated in a particular country, region or industry. Any adverse event affecting one of these countries, regions or industries could have a negative impact on these companies.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Growth Style Investing:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Growth stock prices reflect projections of future earnings or revenues, and can, therefore, fall dramatically if the company fails to meet those projections. Growth stocks may be more expensive relative to their current earnings or assets compared to value or other stocks, and if earnings growth expectations moderate, their valuations may return to more typical norms, causing their stock prices to fall. Prices of these companies’ securities may be more volatile than other securities, particularly over the short term. In addition, investment styles can go in and out of favor, which could cause additional volatility in the prices of the Fund’s portfolio holdings.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small and Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by small and mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, small and mid capitalization 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. The markets for securities issued by small and mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Diversification:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The Fund adopted the performance of the Franklin Focused Growth Fund (the “predecessor mutual fund”) as the result of a reorganization of the predecessor mutual fund into the Fund that was effective after the market close on November 3, 2023 (the “Reorganization”). Prior to the Reorganization, the Fund had not yet commenced operations. The returns shown for the periods ending on or prior to November 3, 2023 are those of the predecessor mutual fund. The bar chart shows changes in the Fund’s (and the predecessor mutual fund’s) performance from year to year (the predecessor mutual fund’s performance is represented by the performance of the predecessor mutual fund’s Advisor Class Shares). The table shows how the Fund’s (and the predecessor mutual fund’s) average annual returns (in the case of the predecessor mutual fund, the average annual returns of the predecessor mutual fund’s Advisor Class Shares) for 1 year, 5 years and since inception compared with those of a broad measure of market performance and an additional index with characteristics relevant to the Fund. Performance for the predecessor mutual fund shown below has not been adjusted to reflect the Fund’s shares’ lower expenses than those of the predecessor mutual fund’s Advisor Class Shares. Had the predecessor mutual fund been structured as an ETF, its performance may have differed. The Fund’s (and the predecessor mutual 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund’s (and the predecessor mutual fund’s) past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">32.09%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-25.01%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 10.22%.</p></td></tr></table> Best Quarter 2020-06-30 0.3209 Worst Quarter 2022-06-30 -0.2501 As of June 30, 2026, the Fund’s year-to-date return was 10.22%. 2026-06-30 0.1022 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.1699 0.1106 0.1819 Return after taxes on distributions 0.1699 0.1103 0.1796 Return after taxes on distributions and sale of Fund shares 0.1006 0.0881 0.1551 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.1315 0.1447 Russell 1000® Growth Index 0.1856 0.1532 0.1847 FRANKLIN INCOME FOCUS ETF 2026-08-01 Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek high current income while maintaining prospects for capital appreciation.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0038 0 0.0000 0.0038 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 39 123 215 482 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 42% of the average value of its portfolio.</p> 0.42 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests in a diversified portfolio of debt and equity securities. The Fund may dynamically shift its investments from one asset class to another based on the investment manager's analysis of the most attractive opportunities for the Fund’s portfolio in a given market. “Income Focus” in the Fund’s name refers to the Fund’s strategy of seeking to maximize income over a full market cycle by investing opportunistically across different asset classes, markets and sectors and utilizing income generation strategies. The equity securities in which the Fund invests consist primarily of common stocks, including those with dividend yields the investment manager believes are attractive, and convertible preferred securities. Debt securities include all varieties of fixed, floating and variable rate instruments, including secured and unsecured bonds, senior floating rate and term loans, mortgage-backed securities and other asset-backed securities, debentures, and shorter-term instruments. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest up to 40% of its assets in equity-linked notes (ELNs). ELNs are hybrid instruments that are specially designed to combine the characteristics of one or more reference securities (usually a common stock or broad market equity index) and a related equity derivative, such as a put or call option, in a single note form.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest up to 25% of its total assets in debt securities that are rated below investment grade (also known as “junk bonds”), including a portion in defaulted securities. The Fund may also invest up to 25% of its assets in foreign securities, including developing or emerging markets, either directly or through depositary receipts. The Fund’s investments in bonds may include U.S. and foreign corporate debt, U.S. Treasuries and foreign government bonds. Bonds may be denominated and issued in the local currency or in another currency. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund maintains the flexibility to invest in securities of companies from a variety of sectors, but from time to time, based on economic conditions, the Fund may have significant investments in particular sectors.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may, from time to time, use a variety of equity-related derivatives and complex equity securities, which may include purchasing or selling call and put options on equity securities and equity security indices, for various purposes including enhancing Fund returns, increasing liquidity, gaining exposure to particular instruments in more efficient or less expensive ways and/or hedging risks relating to changes in certain equity markets. In addition, the Fund may use interest rate-related derivatives, including interest rate and/or bond futures contracts (including U.S. Treasury futures contracts) for various purposes including enhancing Fund returns, increasing liquidity, gaining exposure to particular instruments in more efficient or less expensive ways and/or hedging risks relating to changes in interest rates. The Fund also may, from time to time, use currency-</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">related derivatives, such as forward foreign currency exchange contracts and currency futures contracts to hedge currency risks, and credit-related derivatives, to hedge credit risks. The use of such derivative transactions may allow the Fund to obtain net long or net short exposures to selected markets, interest rates, countries or durations.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund's investment manager searches for undervalued or out-of-favor securities it believes offer opportunities for current income and significant growth potential. In analyzing both corporate debt and equity securities, the investment manager considers a variety of factors, including:</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">a security’s relative value based on such factors as anticipated cash flow, interest or dividend coverage, asset coverage, and earnings prospects;</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the experience and strength of the company's management;</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the company's changing financial condition and market recognition of the change;</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the company's sensitivity to changes in interest rates and business conditions; and</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; text-indent:-18.0pt; font-weight:normal; margin-left:18.0pt; font-style:normal;"><span style="font-size:9.0pt; font-family:Symbol; font-style:normal; font-weight:normal; text-decoration:none;">·</span><span style="word-spacing:10.0pt;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">the company's debt maturity schedules and borrowing requirements.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">When choosing investments for the Fund, the investment manager applies a "bottom-up," value oriented, long-term approach, focusing on the market price of a company's securities relative to the investment manager's evaluation of the company's long-term earnings, asset value and cash flow potential. The investment manager also considers a company's price/earnings ratio, profit margins and liquidation value. It generally performs independent analysis of the debt securities being considered for the Fund's portfolio, rather than relying principally on the ratings assigned by rating organizations.</p> Under normal market conditions, the Fund invests in a diversified portfolio of debt and equity securities. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x10"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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, </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">when there are more buyers than sellers, prices tend to rise. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fixed rate debt securities generally are more sensitive to interest rate changes than variable rate securities. For example, variable rate securities generally will not increase in market value if interest rates decline and their market value may not decline when prevailing interest rates rise.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Dividend-Oriented Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies that have historically paid regular dividends to shareholders may decrease or eliminate dividend payments in the </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">future. A decrease in dividend payments by an issuer may result in a decrease in the value of the issuer's stock and less available income for the Fund. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">High-Yield Debt Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Issuers of lower-rated or “high-yield” debt instruments (also known as “junk bonds”) are not as strong financially as those issuing higher credit quality debt instruments. High-yield debt instruments are generally considered predominantly speculative by the applicable rating agencies as their issuers are more likely to encounter financial difficulties because they may be more highly leveraged, or because of other considerations. In addition, high yield debt instruments generally are more vulnerable to changes in the relevant economy, such as a recession or a sustained period of rising interest rates, that could affect their ability to make interest and principal payments when due. The prices of high-yield debt instruments generally fluctuate more than those of higher credit quality. High-yield debt instruments are generally more illiquid (harder to sell) and harder to value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Equity-Linked Notes (ELNs):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in ELNs often have risks similar to their underlying securities or index, which could include management risk, market risk and, as applicable, foreign securities and currency risks. In addition, since ELNs are in note form, ELNs are also subject to certain debt securities risks, such as interest rate and credit risks. Should the prices of the underlying securities or index move in an unexpected manner, the Fund may not achieve the anticipated benefits of an investment in an ELN, and may realize losses, which could be significant and could include the Fund’s entire principal investment. An investment in an ELN is also subject to counterparty risk, which is the risk that the issuer of the ELN will default or become bankrupt and the Fund will have difficulty being repaid, or fail to be repaid, the principal amount of, or income from, its investment. Investments in ELNs are also subject to liquidity risk, which may make ELNs difficult to sell and value. In addition, ELNs may exhibit price behavior that does not correlate with their underlying securities, index or a fixed-income investment.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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 – </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Convertible Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Convertible securities are subject to the risks of stocks when the underlying stock price is high relative to the conversion price (because more of the security's value resides in the conversion feature) and debt securities when the underlying stock price is low relative to the conversion price (because the conversion feature is less valuable). The value of convertible securities may rise and fall with the market value of the underlying stock or, like a debt security, vary with changes in interest rates and the credit quality of the issuer. A convertible security is not as sensitive to interest rate changes as a similar non-convertible debt security, and generally has less potential for gain or loss than the underlying stock.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies may fall out of favor with investors based on market and economic conditions. Large capitalization companies may underperform relative to small and mid capitalization companies because they may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mortgage Securities and Asset-Backed Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Mortgage securities differ from conventional debt securities because principal is paid back periodically over the life of the security rather than at maturity. The Fund may receive unscheduled payments of principal due to voluntary prepayments, refinancings or foreclosures on the underlying mortgage loans. Because of prepayments, mortgage securities may be less effective than some other types of debt securities as a means of "locking in" long-term interest rates and may have less potential for capital appreciation during periods of falling interest rates. A reduction in the anticipated rate of principal prepayments, especially during periods of rising interest rates, may increase or extend the effective maturity and duration of mortgage securities, making them more sensitive to interest rate changes, subject to greater price volatility, and more susceptible than some other debt securities to a decline in market value when interest rates rise.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such instruments often have risks similar to </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">their underlying instrument, in addition to other risks. Derivative instruments 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. 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, interest rate, 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.</p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Developing Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Liquidity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs, which may arise or increase in response to a specific economic event or because the investment manager wishes to purchase particular investments or believes that a higher level of liquidity would be advantageous. Reduced liquidity will also generally lower the value of such securities or other investments. Market prices for such securities or other investments may be relatively volatile.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Prepayment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Value Style Investing:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> A value stock may not increase in price as anticipated by the investment manager if other investors fail to recognize the company's value and bid up the price, the markets favor faster-growing companies, or the factors that the investment manager believes will increase the price of the security do not occur or do not have the anticipated effect.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and an additional index with characteristics relevant to the Fund, which is a blended benchmark, comprised of 50% MSCI USA High Dividend Yield Index, 25% Bloomberg High Yield Very Liquid Index and 25% Bloomberg U.S. Aggregate Index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2024, Q3</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">6.43%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2024, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-2.51%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 5.91%.</p></td></tr></table> Best Quarter 2024-09-30 0.0643 Worst Quarter 2024-12-31 -0.0251 As of June 30, 2026, the Fund’s year-to-date return was 5.91%. 2026-06-30 0.0591 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.1283 0.1005 Return after taxes on distributions 0.1074 0.0794 Return after taxes on distributions and sale of Fund shares 0.0776 0.0689 Russell 3000® Index (index reflects no deduction for fees, expenses or taxes) 0.1715 0.2101 Bloomberg U.S. Aggregate Index 0.0730 0.0454 Blended 50% MSCI USA High Dividend Yield Index + 25% Bloomberg High Yield Very Liquid Index + 25% Bloomberg U.S. Aggregate Index 0.1007 0.1018 FRANKLIN U.S. EQUITY INDEX ETF 2026-08-01 Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the Morningstar</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> US Target Market Exposure Index</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^SM</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> (the Underlying Index).</span></p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0003 0 0.0000 0.0003 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 3 9 17 39 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">fiscal year, the Fund's portfolio turnover rate was 3% of the average value of its portfolio.</p> 0.03 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. The Fund's investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the Underlying Index are included in the Fund's 80% basket. The Underlying Index is a free float-adjusted market capitalization weighted index that is maintained and calculated by Morningstar, Inc. (Morningstar or Index Provider). The Underlying Index includes large- and mid-capitalization stocks representing the top 85% of the investable universe (i.e., U.S. equity market) by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization). The Underlying Index is governed by published, objective rules for security selection, exclusion, rebalancing and adjustments for corporate actions. The Underlying Index is rebalanced quarterly and reconstituted semi-annually. As of May 31, 2026, the Underlying Index was comprised of 506 securities with capitalizations ranging from $8.02 billion to $5.11 trillion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the Underlying Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the Underlying Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the Underlying Index). However, it may not be possible or practicable to replicate the Underlying Index. In these circumstances, the Fund may use a representative sampling strategy whereby the Fund will invest in what it believes to be a representative sample of the component securities of the Underlying Index, but may not track the Underlying Index with the same degree of accuracy as would an investment vehicle replicating the entire Underlying Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the Underlying Index, including securities that resemble those included in the Underlying Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund generally rebalances and reconstitutes its portfolio in accordance with the Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">T</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">he Fund may invest in equity futures (including equity ind</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">ex futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income (i.e., gain equity market exposure and maintain liquidity until the </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fund invests in individual securities), simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the Underlying Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Underlying Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the Underlying Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the Underlying Index is concentrated. As of May 31, 2026, the Underlying Index was concentrated in the information technology sector. </p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the Underlying Index The Fund's investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the Underlying Index are included in the Fund's 80% basket. The Underlying Index is a free float-adjusted market capitalization weighted index that is maintained and calculated by Morningstar, Inc. (Morningstar or Index Provider). The Underlying Index includes large- and mid-capitalization stocks representing the top 85% of the investable universe (i.e., U.S. equity market) by float-adjusted market capitalization (“float-adjusted” means that only shares that are estimated to be publicly available to investors are included in the calculation of market capitalization). The Underlying Index is governed by published, objective rules for security selection, exclusion, rebalancing and adjustments for corporate actions. The Underlying Index is rebalanced quarterly and reconstituted semi-annually. As of May 31, 2026, the Underlying Index was comprised of 506 securities with capitalizations ranging from $8.02 billion to $5.11 trillion. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x11"></a><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Index Provider relies on various sources of information to assess the criteria of issuers included in the Underlying Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that the Underlying Index's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the Underlying Index will be determined, composed or calculated accurately. While the Index Provider provides descriptions of what the Underlying Index is designed to achieve, the Index Provider does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the Underlying Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the Underlying Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the Underlying Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the Underlying Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the Underlying Index. In addition, the Fund’s NAV may deviate from the Underlying Index if the Fund fair values a portfolio security at a price other than the price used by the Underlying Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the Underlying Index as well as it would have if the Fund held all of the securities in the Underlying Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the Underlying Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Underlying Index, pricing differences, transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the Underlying Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the Underlying Index does not.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Information technology companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies in the information technology sector have historically been volatile due to the rapid pace of product change and development within the sector. For example, their products and services may not prove commercially successful or may become obsolete quickly. In addition, delays in or cancellation of the release of anticipated products or services may also affect the price of an information technology company’s stock. Information technology companies are subject to significant competitive pressures, such as new market entrants, aggressive pricing and tight profit margins. The activities of these companies may also be adversely affected by changes in government regulations, worldwide technological developments (including the development of artificial intelligence and machine learning) or investor perception of a company and/or its products or services. The stock prices of companies operating within this sector may be subject to abrupt or erratic movements.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying security, interest rate or index, and such derivatives often have risks similar to the 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">participate in losses (as well as gains) in an amount that significantly exceeds the Fund’s initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not realize the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track its Underlying Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the Underlying Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies may fall out of favor with investors based on market and economic conditions. Large capitalization companies may underperform relative to small and mid capitalization companies because they may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">the high growth rate of successful smaller companies, especially during extended periods of economic expansion. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the Underlying Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with the Fund's Underlying Index. On August 1, 2022, the Fund's underlying index was changed from the LibertyQ Global Equity Index to the Morningstar</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> US Target Market Exposure Index</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^SM</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">. Fund performance prior to that date reflects the Fund seeking to track the performance of the LibertyQ Global Equity Index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</span></p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">16.15%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-20.45%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 9.83%.</p></td></tr></table> Best Quarter 2020-06-30 0.1615 Worst Quarter 2020-03-31 -0.2045 As of June 30, 2026, the Fund’s year-to-date return was 9.83%. 2026-06-30 0.0983 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.1772 0.1262 0.1196 Return after taxes on distributions 0.1740 0.1215 0.1115 Return after taxes on distributions and sale of Fund shares 0.1068 0.0997 0.0953 Morningstar® US Target Market Exposure Index (index reflects no deduction for fees, expenses or taxes) 0.1780 0.1388 Linked Morningstar® US Target Market Exposure Index 0.1780 0.1268 0.1198 2026-08-01 Templeton Emerging Markets Debt ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:10.0pt; font-family:Sans-Serif; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Total return consisting of a combination of interest income and capital appreciation.</span></p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0045 0 0.0000 0.0045 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 46 144 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 period from January 20, 2026 (commencement of operations) to March 31, 2026, the Fund's portfolio turnover rate was 0% of the average value of its portfolio.</p> 0 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in emerging market debt securities and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to emerging market debt securities. Emerging market debt securities include (i) fixed and floating-rate debt securities and obligations issued by government and government-related issuers in emerging market countries and (ii) debt obligations denominated in emerging market currencies issued by supranational entities organized or supported by several national governments, such as the International Bank for Reconstruction and Development or the European Investment Bank. Debt securities may be U.S. dollar denominated or denominated in the local currency or in another currency. “Emerging market countries” are countries considered to be emerging markets (including frontier markets) by: (i) the International Monetary Fund or the United Nations; (ii) countries included as emerging or frontier markets by S&amp;P Dow Jones, Morgan Stanley Capital International or FTSE Russell index providers; or (iii) countries in the J.P. Morgan Emerging Markets Bond Index - Global Diversified (EMBIG Diversified) or J.P. Morgan Government Bond Index - Emerging Markets Broad (GBI-EM Broad) fixed income indexes. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 50% of its net assets in U.S. dollar denominated and euro denominated debt securities issued by emerging market countries included in the J.P. Morgan EMBI Global Diversified Index, as well as in derivative instruments providing exposure to such issuers. To the extent that the Fund invests in euro denominated debt securities, its euro currency exposure may be hedged back to the U.S. dollar.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may buy debt securities rated in any category, including below investment grade securities (also known as “junk bonds”), securities in default and unrated debt securities. The Fund may invest in debt securities of any maturity or duration, and the average maturity or duration of debt securities in the Fund’s portfolio will fluctuate depending on the investment manager’s outlook on changing market, economic, and political conditions. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may also invest in cash and cash equivalents.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">For purposes of pursuing its investment goal, the Fund regularly enters into various currency related transactions involving derivative instruments, principally currency and cross currency forwards and currency options. The Fund may maintain extensive positions in currency related derivative instruments as a hedging </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">technique or to implement a currency investment strategy, which could expose a large amount of the Fund’s assets to obligations under these instruments. The results of such transactions may represent, from time to time, a large component of the Fund’s investment returns. The use of these derivative transactions may allow the Fund to obtain net long or net negative (short) exposure to selected currencies, which may include emerging market, U.S. or developed market currencies. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may also enter into interest rate swaps and various other transactions involving derivatives, including fixed income total return swaps, credit default swaps, credit default index swaps, and credit-linked notes. These derivative instruments may be used for hedging purposes, to enhance returns, or to obtain net long or net negative (short) exposure to selected interest rates, countries, durations or credit risks. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund is a “non-diversified” fund, which means it generally invests a greater portion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">When choosing investments and weightings for the Fund, the investment manager will allocate the Fund’s assets based on several factors, including: its assessment of market, political and economic conditions; the issuer’s weighting in reference indices within the emerging market sovereign bond universe; and the potential impact to the Fund’s performance and risk metrics, relative to such reference indices. No one index is representative of the Fund’s portfolio. In evaluating a debt instrument, the investment manager will consider interest rates, currency exchange rate changes and credit risks. The investment manager may consider selling a security when it believes the security has become fully valued due to either its price appreciation or changes in the issuer’s fundamentals, or when the investment manager believes another security is a more attractive investment opportunity.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in emerging market debt securities and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to emerging market debt securities. Under normal market conditions, the Fund invests at least 80% of its net assets in emerging market debt securities and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to emerging market debt securities Emerging market debt securities include (i) fixed and floating-rate debt securities and obligations issued by government and government-related issuers in emerging market countries and (ii) debt obligations denominated in emerging market currencies issued by supranational entities organized or supported by several national governments, such as the International Bank for Reconstruction and Development or the European Investment Bank. Debt securities may be U.S. dollar denominated or denominated in the local currency or in another currency. “Emerging market countries” are countries considered to be emerging markets (including frontier markets) by: (i) the International Monetary Fund or the United Nations; (ii) countries included as emerging or frontier markets by S&amp;P Dow Jones, Morgan Stanley Capital International or FTSE Russell index providers; or (iii) countries in the J.P. Morgan Emerging Markets Bond Index - Global Diversified (EMBIG Diversified) or J.P. Morgan Government Bond Index - Emerging Markets Broad (GBI-EM Broad) fixed income indexes. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x12"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. Other risks include illiquidity, </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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, interest rate, 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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Currency Investment Strategies: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">There is no guarantee that the Fund’s currency investment strategy will be successful. Currency rates may fluctuate significantly over short or extended periods of time (i.e., may be extremely volatile), which could result in losses to the Fund if currencies do not perform as the investment manager expects. Changes in foreign currency exchange rates affect the value of the investments that the Fund owns and the Fund’s share price. Generally, when the U.S. dollar rises in value against a foreign currency, an investment denominated in that country’s currency loses value because that currency is worth fewer U.S. dollars. Conversely, when the U.S. dollar decreases in value against a particular foreign currency, investments denominated in that foreign currency increase in value. In general, currency exchange rates can be unpredictably affected by various factors, including political developments and governmental, supranational entity or central bank action or inaction. The Fund may also be positively or negatively affected by governmental strategies and policies intended to make the currencies in which the Fund invests stronger or weaker. In addition, currency markets generally are not as regulated as securities markets, which could expose the Fund to additional risks. Some currency transactions may involve a higher level of risk than other investments relative to the amount invested and the impact of any gain or loss may be magnified. The risks of currency transactions and exposures also may be heightened with respect to developing or emerging market currencies.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Currency Management Strategies: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Currency management strategies may substantially change the Fund’s 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 Fund’s exposure to currency risks, also reduce the Fund’s ability to benefit from favorable changes in currency exchange rates. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">While the Fund’s currency hedging approach is designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund’s exposure to the currencies. The return of the currency related derivatives will not perfectly offset the actual fluctuations between the currencies and the U.S. dollar. In addition, the Fund will incur transaction costs in hedging its foreign currency exposure. The Fund’s exposure to the currencies may not be hedged at all times. While the Fund seeks to hedge against currency fluctuations, it is possible that a degree of currency exposure may remain even at the time a hedging transaction is </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">implemented. Increased volatility of the U.S. dollar relative to the currencies being hedged will generally reduce the effectiveness of the Fund’s currency hedging strategy, measured on an aggregate basis. Significant differences between U.S. dollar interest rates and foreign currency interest rates may impact the effectiveness of the Fund’s currency hedging strategy.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Sovereign Debt Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Sovereign debt securities are subject to various risks in addition to those relating to debt securities and foreign investments generally, including, but not limited to, the risk that a governmental entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due because of cash flow problems, insufficient foreign reserves, the relative size of the debt service burden to the economy as a whole, the government’s policy towards principal international lenders such as the International Monetary Fund, or the political considerations to which the government may be subject. If a sovereign debtor defaults (or threatens to default) on its sovereign debt obligations, the indebtedness may be restructured. Some sovereign debtors have in the past been able to restructure their debt payments without the approval of some or all debt holders or to declare moratoria on payments. In the event of a default on sovereign debt, the Fund may also have limited legal recourse against the defaulting government entity.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Regional:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund invests a significant portion of its assets in a specific geographic region or a particular country, the Fund will generally have more exposure to the specific regional or country risks. In the event of economic or political turmoil or a deterioration of diplomatic relations in a region or country where a substantial portion of the Fund’s assets are invested, the Fund may experience substantial illiquidity or reduction in the value of the Fund’s investments. Adverse conditions in a certain region or country can adversely affect securities of issuers in other countries whose economies appear to be unrelated. Current uncertainty concerning the ultimate economic consequences and geopolitical effects of Russia’s military invasion of Ukraine in February 2022 and concerns regarding potential escalation in the region have resulted in increased market volatility.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Liquidity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  The trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs or in response to a specific economic event and will also generally lower the value of a security or other investments. Market prices for such securities or other investments may be volatile.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Variable Rate Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because changes in interest rates on variable rate securities (including floating rate securities) may lag behind changes in market rates, the value of such securities may decline during periods of rising interest rates until their interest rates reset to market rates. During periods of declining interest rates, because the interest rates on variable rate securities generally reset downward, their market value is unlikely to rise to the same extent as the value of comparable fixed rate securities.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">High-Yield Debt Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Issuers of lower-rated or “high-yield” debt instruments (also known as “junk bonds”) are not as strong financially as those issuing higher credit quality debt instruments. High-yield debt instruments are generally considered predominantly speculative by the applicable rating agencies as their issuers are more likely to encounter financial difficulties because they may be more highly leveraged, or because of other considerations. In addition, high yield debt instruments generally are more vulnerable to changes in the relevant economy, such as a recession or a sustained period of rising interest rates, that could affect their ability to make interest and principal payments when due. The prices of high-yield debt instruments generally fluctuate more than those of higher </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">credit quality. High-yield debt instruments are generally more illiquid (harder to sell) and harder to value. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Unrated Debt Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain unrated debt securities which the Fund may purchase may pay a higher interest rate than rated debt securities and be subject to a greater risk of illiquidity or price changes. Less public information and independent credit analysis are typically available about unrated securities or issuers, and therefore they may be subject to greater risk of default.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Diversification:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash/Cash Equivalents: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To the extent the Fund holds cash or cash equivalents rather than securities in which it primarily invests or uses to manage risk, the Fund may not achieve its investment objectives and may underperform.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Quantitative Models</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The quantitative models that may be used by the investment manager as part of the Fund’s portfolio construction process to evaluate investment opportunities have been tested on historical price data. These models are based on the assumption that price movements in most markets continue to display similar patterns as those observed in the past. There is the risk that market behavior will change and that the patterns upon which the forecasts in the models are based will weaken or disappear, which would reduce the success of the models. Further, as market dynamics shift over time, a previously highly successful model may become outdated, perhaps without the investment manager recognizing that fact before substantial losses are incurred. Successful operation of a model is also reliant upon the information technology systems of the investment manager and its ability to ensure those systems remain operational and that appropriate disaster recovery procedures are in place. There can be no assurance that the investment manager will be successful in maintaining effective and operational quantitative models and the related hardware and software systems.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund effects redemptions partly or entirely for cash, rather than for in-kind securities, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> Performance Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </p> franklintempleton.com (800) DIAL BEN/342-5236 The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. 2026-08-01 Franklin FTSE Australia ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Australia RIC Capped Index (the FTSE Australia Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 7% of the average value of its portfolio.</p> 0.07 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Australia Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Australia Capped Index are included in the Fund’s 80% basket. The FTSE Australia 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 FTSE Australia Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Australia Capped Index’s weight. The FTSE Australia Capped Index is based on the FTSE Australia Index and is designed to measure the performance of Australian large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Australia Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Australia Capped Index was comprised of 107 securities with capitalizations ranging from $1.02 billion to $227.70 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Australia Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Australia Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Australia Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Australia Capped 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 FTSE Australia Capped Index, but may not track the FTSE Australia Capped Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Australia Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">that of the FTSE Australia Capped Index, including securities that resemble those included in the FTSE Australia Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Australia Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Australia Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Australia Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Australia Capped Index is concentrated. As of May 31, 2026, the FTSE Australia Capped Index was concentrated in the banking industry and the metals and mining industry.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Australia Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Australia Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Australia Capped Index are included in the Fund’s 80% basket. The FTSE Australia 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 FTSE Australia Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Australia Capped Index’s weight. The FTSE Australia Capped Index is based on the FTSE Australia Index and is designed to measure the performance of Australian large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Australia Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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., </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">fluctuations may negatively affect investments denominated in foreign currencies and any income received or expenses paid by the Fund in that foreign currency. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Australian securities</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">:</span><span style="font-size:10.0pt; font-family:Sans-Serif; font-style:normal; font-weight:normal; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The Australian economy is heavily dependent on the price and demand for commodities and natural resources as well as its exports from the agricultural and mining sectors. Declines in the demand for such products may have an adverse impact on the Fund’s returns. Australia is also dependent on trading relationships with key trading partners. The Fund is susceptible to loss due to adverse market, legal, political, regulatory, and other events affecting Australia. These events may adversely affect the trading market and price for Fund shares and cause the Fund to decline in value. Intensifying weather-related natural disasters in Australia including drought and bushfires have imposed substantial economic costs. A continuation of these trends may impose financial stress which in turn could cause the value of the Fund's investments to decline.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Australia Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Australia Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Australia Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Australia Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Australia Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Australia Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Australia Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Australia Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Australia Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Australia Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Australia Capped Index as well as it would have if the Fund held all of the securities in the FTSE Australia Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Australia Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Australia Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Australia Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Australia Capped Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Banking companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies in the banking industry are subject to certain risks, including the effects of: (1) changes in interest rates on the profitability of banks; (2) the rate of corporate and consumer debt defaults; (3) price competition; (4) governmental limitations on a company’s loans, other financial commitments, product lines and other operations; and (5) ongoing changes in the financial services industry (including consolidations, development of new products and changes to the industry’s regulatory framework). </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Metals and mining companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in metals and mining companies may be speculative and subject to greater price volatility than investments in other types of companies. The profitability of companies in the metals and mining industry is related to, among other things, worldwide metal prices and extraction and production costs. Worldwide metal prices may fluctuate substantially over short periods of time, and as a result, the Fund’s share price may be more volatile than other types of investments. In addition, metals and mining companies may be significantly affected by changes in global demand for certain metals, economic developments, energy conservation, the success of exploration projects, changes in exchange rates, interest rates, economic conditions, tax treatment, trade treaties, and government regulation and intervention, and events in the regions that the companies to which the Fund has exposure operate (e.g., expropriation, nationalization, confiscation of assets and property, the imposition of restrictions on foreign investments or repatriation of capital, military coups, social or political </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">unrest, violence and labor unrest). Metals and mining companies may also be subject to the effects of competitive pressures in the metals and mining industry.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Australia Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Australia Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Australia Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">30.71%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-33.21%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 7.95%.</p></td></tr></table> Best Quarter 2020-06-30 0.3071 Worst Quarter 2020-03-31 -0.3321 As of June 30, 2026, the Fund’s year-to-date return was 7.95%. 2026-06-30 0.0795 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.1647 0.0674 0.0696 Return after taxes on distributions 0.1558 0.0566 0.0576 Return after taxes on distributions and sale of Fund shares 0.1037 0.0511 0.0517 FTSE Australia Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.1643 0.0676 0.0695 FTSE Australia Capped Index-NR 0.1643 0.0676 0.0695 Franklin FTSE Brazil ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Brazil RIC Capped Index (the FTSE Brazil Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0019 0 0.0000 0.0019 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 19 60 105 241 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 14% of the average value of its portfolio.</p> 0.14 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Brazil Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Brazil Capped Index are included in the Fund’s 80% basket. The FTSE Brazil 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 FTSE Brazil Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Brazil Capped Index’s weight. The FTSE Brazil Capped Index is based on the FTSE Brazil Index and is designed to measure the performance of Brazilian large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Brazil Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Brazil Capped Index was comprised of 68 securities with capitalizations ranging from $1.29 billion to $119.07 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Brazil Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Brazil Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Brazil Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Brazil Capped 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 FTSE Brazil Capped Index, but may not track the FTSE Brazil Capped Index with the same degree of accuracy as would an </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">investment vehicle replicating the entire FTSE Brazil Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE Brazil Capped Index, including securities that resemble those included in the FTSE Brazil Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Brazil Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Brazil Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Brazil Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Brazil Capped Index is concentrated. As of May 31, 2026, the FTSE Brazil Capped Index was concentrated in the financial services sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Brazil Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Brazil Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Brazil Capped Index are included in the Fund’s 80% basket. The FTSE Brazil 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 FTSE Brazil Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Brazil Capped Index’s weight. The FTSE Brazil Capped Index is based on the FTSE Brazil Index and is designed to measure the performance of Brazilian large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Brazil Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Brazilian securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Brazilian economy has experienced in the past, and may continue to experience, periods of high inflation rates and political unrest. The Brazilian economy depends heavily on international trade, and is highly sensitive to fluctuations in international commodity prices and commodity markets. Currency devaluations or restrictions, regime changes, fluctuations in commodity markets, political and social instability, high inflation rates, high levels of outstanding national debt, and deteriorating economic conditions may result in significant downturns and increased volatility in the Brazilian economy, as it has in the past, and thus adversely affect the Fund’s performance.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Preferred Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Preferred securities are subject to general market and issuer-specific risks applicable to equity securities as well as certain risks associated with fixed income securities, including sensitivity to changes in interest rates. Preferred securities may be subordinated to bonds or other debt instruments in an issuer's capital structure, subjecting them to a greater risk of non-payment. The value of preferred securities is heavily dependent on the profitability and cash flows of the issuer and may decline substantially due to the omission or deferment of dividend payments. Preferred securities may be less liquid than other securities, such as common stocks, and generally do not provide voting rights with respect to the issuer.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Brazil Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Brazil Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Brazil Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Brazil Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Brazil Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Brazil Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Brazil Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Brazil Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Brazil Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Brazil Capped Index for </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Brazil Capped Index as well as it would have if the Fund held all of the securities in the FTSE Brazil Capped Index.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Brazil Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Brazil Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Brazil Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Brazil Capped Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Financial services companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Financial services companies are subject to extensive government regulation that may affect their profitability in many ways, </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">including by limiting the amount and types of loans and other commitments they can make, and the interest rates and fees they can charge. A financial services company's profitability, and therefore its stock prices, may be adversely affected in certain market cycles, including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Changing regulations, continuing consolidations, and development of new products and structures all are likely to have a significant impact on financial services companies.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Brazil Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Brazil Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Brazil Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions entirely for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, an authorized participant, a lead market maker, or another entity may invest in the Fund and hold </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">36.44%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-50.43%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 13.27%.</p></td></tr></table> Best Quarter 2020-12-31 0.3644 Worst Quarter 2020-03-31 -0.5043 As of June 30, 2026, the Fund’s year-to-date return was 13.27%. 2026-06-30 0.1327 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.4594 0.0525 0.0375 Return after taxes on distributions 0.4172 0.0188 0.0122 Return after taxes on distributions and sale of Fund shares 0.2735 0.0253 0.0177 FTSE Brazil Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.4624 0.0558 0.0397 FTSE Brazil Capped Index-NR 0.4624 0.0558 0.0404 Franklin FTSE Canada ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Canada RIC Capped Index (the FTSE Canada Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 17% of the average value of its portfolio.</p> 0.17 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Canada Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Canada Capped Index are included in the Fund’s 80% basket. The FTSE Canada 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 FTSE Canada Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Canada Capped Index’s weight. The FTSE Canada Capped Index is based on the FTSE Canada Index and is designed to measure the performance of Canadian large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Canada Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Canada Capped Index was comprised of 86 securities with capitalizations ranging from $5.76 billion to $266.66 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Canada Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Canada Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Canada Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Canada Capped 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 FTSE Canada Capped Index, but may not track the FTSE Canada Capped Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Canada Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">that of the FTSE Canada Capped Index, including securities that resemble those included in the FTSE Canada Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Canada Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Canada Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Canada Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Canada Capped Index is concentrated. As of May 31, 2026, the FTSE Canada Capped Index was concentrated in the banking industry.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Canada Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Canada Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Canada Capped Index are included in the Fund’s 80% basket. The FTSE Canada 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 FTSE Canada Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Canada Capped Index’s weight. The FTSE Canada Capped Index is based on the FTSE Canada Index and is designed to measure the performance of Canadian large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Canada Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Canadian securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in Canadian issuers may subject the Fund to economic risk specific to Canada. Among other things, the Canadian economy is heavily dependent on relationships with certain key trading partners, including the United States, China, Mexico, the United Kingdom and Japan. The Canadian economy may be significantly impacted by changes in the economies and trade policies of these countries, particularly the United States. The Canadian economy is sensitive to fluctuations in certain commodity markets, including the energy sector.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Canada Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Canada Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">descriptions of what the FTSE Canada Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Canada Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Canada Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Canada Capped Index may therefore be borne by the Fund and its shareholders.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Canada Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Canada Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Canada Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Canada Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Canada Capped Index as well as it would have if the Fund held all of the securities in the FTSE Canada Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Canada Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Canada Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Canada Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Canada Capped Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s shares trading at a premium or discount to NAV. Thus, you may pay more (or less) than </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Banking companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies in the banking industry are subject to certain risks, including the effects of: (1) changes in interest rates on the profitability of banks; (2) the rate of corporate and consumer debt defaults; (3) price competition; (4) governmental limitations on a company’s loans, other financial commitments, product lines and other operations; and (5) ongoing changes in the financial services industry (including consolidations, development of new products and changes to the industry’s regulatory framework). </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Canada Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Canada Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Canada Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">face trading halts and/or delisting. This risk may be more pronounced in volatile markets, potentially where there are significant redemptions in ETFs generally.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">19.51%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-26.28%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 7.33%.</p></td></tr></table> Best Quarter 2020-06-30 0.1951 Worst Quarter 2020-03-31 -0.2628 As of June 30, 2026, the Fund’s year-to-date return was 7.33%. 2026-06-30 0.0733 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.3490 0.1470 0.1113 Return after taxes on distributions 0.3470 0.1434 0.1064 Return after taxes on distributions and sale of Fund shares 0.2146 0.1195 0.0904 FTSE Canada Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.3470 0.1446 0.1088 FTSE Canada Capped Index-NR 0.3470 0.1446 0.1088 Franklin FTSE China ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE China RIC Capped Index (the FTSE China Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0019 0 0.0000 0.0019 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 19 60 105 241 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 7% of the average value of its portfolio.</p> 0.07 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE China Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE China Capped Index are included in the Fund’s 80% basket. 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 FTSE China Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE China Capped Index’s weight. The FTSE China Capped 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), B-Shares (securities of companies incorporated in the PRC that are denominated in U.S. dollars or Hong Kong dollars and listed for foreign investment on either the Shanghai or Shenzhen stock exchanges) and A-Shares (securities of companies incorporated in the PRC that are denominated in Chinese renminbi and listed on either the Shanghai or Shenzhen stock exchanges). The FTSE China Capped 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 New York Stock Exchange, 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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Singapore Exchange). FTSE Russell determines eligible securities for the FTSE China Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE China Capped Index was comprised of 1,020 securities with capitalizations ranging from $383 million to $492.71 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE China Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE China Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE China Capped Index). However, it may not be possible or practicable to replicate the FTSE China Capped Index. In these circumstances, the Fund may use a representative sampling strategy whereby the Fund will invest in what it believes to be a representative sample of the component securities of the FTSE China Capped Index, but may not track the FTSE China Capped Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE China Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE China Capped Index, including securities that resemble those included in the FTSE China Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. The Fund invests in eligible China A-Shares listed and traded on the Shanghai stock exchange through the Shanghai – Hong Kong Stock Connect program and in eligible China A-Shares listed and traded on the Shenzhen stock exchange through the Shenzhen – Hong Kong Stock Connect program (both programs collectively referred to as “Stock Connect”). The Fund may also invest in China A-Shares acquired through any other means permitted by applicable law or regulation.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE China Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE China Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE China Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE China Capped Index is concentrated.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE China Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE China Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE China Capped Index are included in the Fund’s 80% basket. 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 FTSE China Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE China Capped Index’s weight. The FTSE China Capped 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), B-Shares (securities of companies incorporated in the PRC that are denominated in U.S. dollars or Hong Kong dollars and listed for foreign investment on either the Shanghai or Shenzhen stock exchanges) and A-Shares (securities of companies incorporated in the PRC that are denominated in Chinese renminbi and listed on either the Shanghai or Shenzhen stock exchanges). The FTSE China Capped 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 New York Stock Exchange, 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 <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Chinese securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There are special risks associated with investments in China, including exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization and exchange control regulations (including currency blockage). Inflation and rapid fluctuations in inflation and interest rates have had, and may continue to have, negative effects on the economy and securities markets of China. China is deemed by the investment manager to be an emerging markets country, which means an investment in this country has more heightened risks than general foreign investing due to a lack of established legal, political, business and social frameworks and accounting standards or auditor oversight in the country to support securities markets as well as the possibility for more widespread corruption and fraud. In addition, the standards for environmental, social and corporate governance matters in China also tend to be lower than such standards in more developed economies. Also, certain securities issued by companies located or operating in China, such as China A-Shares, are subject to trading restrictions, quota limitations, and clearing and settlement risks. In addition, there may be significant obstacles to obtaining information necessary for investigations into or litigation against companies located in or operating in China and shareholders may have limited legal remedies. The Fund is not actively managed and does not select investments based on investor protection considerations.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Trade disputes and the imposition of tariffs on goods and services can affect the Chinese economy, particularly in light of China's large export sector, as well as the global economy. Trade disputes can result in increased costs of production and reduced profitability for non-export-dependent companies that rely on imports to the extent China engages in retaliatory tariffs. Trade disputes may also lead to increased currency exchange rate volatility.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Certain investments in Chinese companies are made through a special structure known as a variable interest entity (“VIE”). In a VIE structure, foreign investors, such as the Fund, will only own stock in a shell company rather than directly in the VIE, which must be owned by Chinese nationals (and/or Chinese companies) to obtain the licenses and/or assets required to operate in a restricted or prohibited sector in China. The value of the shell company is derived from its ability to consolidate the VIE into its financials pursuant to contractual arrangements that allow the shell company to exert a degree of control over, and obtain economic benefits arising from, the VIE without formal legal ownership. While VIEs are a longstanding industry practice and are well known by Chinese officials and regulators, the structure historically has not been formally recognized under Chinese law and it is uncertain whether Chinese officials or regulators will withdraw their implicit acceptance of the structure. It is also uncertain whether the contractual arrangements, which may be subject to conflicts of interest between the legal owners of the VIE and foreign investors, would be enforced by Chinese courts or </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">arbitration bodies. Prohibitions of these structures by the Chinese government, or the inability to enforce such contracts, from which the shell company derives its value, would likely cause the VIE-structured holding(s) to suffer significant, detrimental, and possibly permanent and even total losses in value, and in turn, adversely affect the Fund’s returns and net asset value. </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE China Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE China Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE China Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE China Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE China Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">in the FTSE China Capped Index may therefore be borne by the Fund and its shareholders.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE China Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE China Capped Index. In addition, the Fund’s NAV may deviate from the FTSE China Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE China Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE China Capped Index as well as it would have if the Fund held all of the securities in the FTSE China Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE China Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE China Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE China Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE China Capped Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE China Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE China Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE China Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions partially for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. The Fund's past </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2024, Q3</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">23.69%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q3</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-22.58%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was -13.94%.</p></td></tr></table> Best Quarter 2024-09-30 0.2369 Worst Quarter 2022-09-30 -0.2258 As of June 30, 2026, the Fund’s year-to-date return was -13.94%. 2026-06-30 -0.1394 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.3161 -0.0325 0.0160 Return after taxes on distributions 0.3075 -0.0390 0.0098 Return after taxes on distributions and sale of Fund shares 0.1911 -0.0259 0.0106 FTSE China Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.3182 -0.0314 0.0174 FTSE China Capped Index-NR 0.3182 -0.0314 0.0178 Franklin FTSE Germany ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Germany RIC Capped Index (the FTSE Germany Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 6% of the average value of its portfolio.</p> 0.06 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Germany Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Germany Capped Index are included in the Fund’s 80% basket. The FTSE Germany 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 FTSE Germany Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Germany Capped Index’s weight. The FTSE Germany Capped Index is based on the FTSE Germany Index and is designed to measure the performance of German large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Germany Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Germany Capped Index was comprised of 65 securities with capitalizations ranging from $4.68 billion to $239.99 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Germany Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Germany Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Germany Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Germany Capped 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 FTSE Germany Capped Index, but may not track the FTSE Germany Capped Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Germany Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">profile similar to that of the FTSE Germany Capped Index, including securities that resemble those included in the FTSE Germany Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Germany Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Germany Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Germany Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Germany Capped Index is concentrated. As of May 31, 2026, the FTSE Germany Capped Index was concentrated in the industrials sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Germany Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Germany Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Germany Capped Index are included in the Fund’s 80% basket. The FTSE Germany 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 FTSE Germany Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Germany Capped Index’s weight. The FTSE Germany Capped Index is based on the FTSE Germany Index and is designed to measure the performance of German large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Germany Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. Current uncertainty concerning the ultimate economic consequences and geopolitical effects of Russia’s military invasion of Ukraine in February 2022 and concerns regarding potential escalation in the region have resulted in increased market volatility.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">German securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Concerns in relation to trade tensions, the economic health of the EU as well as the negative impact of the Russian war in Ukraine continue to constrain growth forecasts across Eurozone countries, including Germany. Germany has an industrial and export dependent economy and therefore relies heavily on trade with key trading partners, including the Netherlands, China, the United States, France, Italy and other European countries. Germany is dependent on the economies of these other countries, and any change in the price or demand for German exports or uncertainties in international trade policy may have an adverse impact on its economy.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Germany Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Germany Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Germany Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Germany Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Germany Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Germany Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Germany Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Germany Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Germany Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Germany Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Germany Capped Index as well as it would have if the Fund held all of the securities in the FTSE Germany Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Germany Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Germany Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Germany Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Germany Capped Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Industrials companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The stock prices of companies in the industrials sector are affected by supply and demand both for their specific product or service and for industrials sector products in general. Companies in the industrials sector may be adversely affected by changes in government regulation, world events and economic conditions. In addition, these companies are at risk for environmental damage and product liability claims. Companies in this sector could be adversely affected by commodity price volatility, changes in exchange rates, imposition of export or import controls, increased competition, depletion of resources, technological developments and labor relations.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Germany Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Germany Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. Such risks may include greater sensitivity to economic </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Germany Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">26.81%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-26.91%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was -0.97%.</p></td></tr></table> Best Quarter 2020-06-30 0.2681 Worst Quarter 2020-03-31 -0.2691 As of June 30, 2026, the Fund’s year-to-date return was -0.97%. 2026-06-30 -0.0097 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.3670 0.0902 0.0618 Return after taxes on distributions 0.3625 0.0854 0.0559 Return after taxes on distributions and sale of Fund shares 0.2223 0.0715 0.0480 FTSE Germany Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.3638 0.0872 0.0596 FTSE Germany Capped Index-NR 0.3638 0.0872 0.0596 Franklin FTSE India ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE India RIC Capped Index (the FTSE India Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0019 0 0.0000 0.0019 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 19 60 105 241 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 14% of the average value of its portfolio.</p> 0.14 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE India Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE India Capped Index are included in the Fund’s 80% basket. The FTSE India 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 FTSE India Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE India Capped Index’s weight. The FTSE India Capped Index is based on the FTSE India Index and is designed to measure the performance of Indian large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE India Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE India Capped Index was comprised of 277 securities with capitalizations ranging from $901 million to $188.11 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE India Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE India Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE India Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE India Capped 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 FTSE India Capped Index, but may not track the FTSE India Capped Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE India Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE India Capped Index, </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">including securities that resemble those included in the FTSE India Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE India Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE India Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE India Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE India Capped Index is concentrated. As of May 31, 2026, the FTSE India Capped Index was concentrated in the financial services sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE India Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE India Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE India Capped Index are included in the Fund’s 80% basket. The FTSE India 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 FTSE India Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE India Capped Index’s weight. The FTSE India Capped Index is based on the FTSE India Index and is designed to measure the performance of Indian large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE India Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">investments. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more buyers than sellers, prices tend to rise. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Indian securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There are special risks associated with investments in India, including exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, and exchange control regulations (including currency blockage). The Fund’s investments are subject to fluctuations in the value of the Indian rupee. Inflation and rapid fluctuations in inflation and interest rates have had, and may continue to have, negative effects on the economy and securities markets of India. A high proportion of the securities of many Indian issuers are held by a limited number of persons or entities, which may limit the number of shares available for investment by the Fund. Also, a limited number of issuers represent a disproportionately large percentage of market capitalization and trading value. In addition, religious and border disputes persist in India. India has historically experienced hostilities with neighboring countries, such as Pakistan, and the Indian government has confronted separatist movements in several Indian states. Instability as a result of these social and political tensions could adversely impact the value of the Fund's investments.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE India Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE India Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE India Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE India Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE India Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE India Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE India Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE India Capped Index. In addition, the Fund’s NAV may deviate from the FTSE India Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE India Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE India Capped Index as well as it would have if the Fund held all of the securities in the FTSE India Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE India Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE India Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE India Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE India Capped Index does not.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Financial services companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Financial services companies are subject to extensive government regulation that may affect their profitability in many ways, including by limiting the amount and types of loans and other commitments they can make, and the interest rates and fees they can charge. A financial services company's profitability, and therefore its stock prices, may be adversely affected in certain market cycles, including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Changing regulations, continuing consolidations, and development of new products and structures all are likely to have a significant impact on financial services companies.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE India Capped Index, the Fund may become non-diversified as a result of a change in relative </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">market capitalization or index weighting of one or more constituents of the FTSE India Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE India Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions entirely for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">22.13%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-30.19%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was -8.34%.</p></td></tr></table> Best Quarter 2020-06-30 0.2213 Worst Quarter 2020-03-31 -0.3019 As of June 30, 2026, the Fund’s year-to-date return was -8.34%. 2026-06-30 -0.0834 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0221 0.0933 0.0748 Return after taxes on distributions 0.0239 0.0915 0.0722 Return after taxes on distributions and sale of Fund shares 0.0172 0.0748 0.0597 FTSE India Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.0384 0.1165 0.0932 FTSE India Capped Index-NR 0.0384 0.1165 0.0932 Franklin FTSE Japan ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan RIC Capped Index (the FTSE Japan Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 5% of the average value of its portfolio.</p> 0.05 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Japan Capped Index are included in the Fund’s 80% basket. The FTSE Japan 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 FTSE Japan Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Japan Capped Index’s weight. The FTSE Japan Capped Index is based on the FTSE Japan Index and is designed to measure the performance of Japanese large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Japan Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Japan Capped Index was comprised of 476 securities with capitalizations ranging from $1.13 billion to $268.17 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Japan Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Japan Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Japan Capped 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 FTSE Japan Capped Index, but may not track the FTSE Japan Capped Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Japan Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE Japan </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Capped Index, including securities that resemble those included in the FTSE Japan Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Japan Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Japan Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Japan Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Japan Capped Index is concentrated. As of May 31, 2026, the FTSE Japan Capped Index was concentrated in the industrials sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Japan Capped Index are included in the Fund’s 80% basket. The FTSE Japan 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 FTSE Japan Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Japan Capped Index’s weight. The FTSE Japan Capped Index is based on the FTSE Japan Index and is designed to measure the performance of Japanese large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Japan Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">investments. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more buyers than sellers, prices tend to rise. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Japanese securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Japan's economy may be subject to considerable degrees of economic, political and social instability, which could have a negative impact on Japanese securities. The Japanese economy is heavily dependent on international trade, oil and other commodity imports and consistent government policy supporting its export market. Changes in governmental regulations on trade, decreasing imports or exports, and/or an economic recession in Japan may cause the value of the Fund's investments to decline. Downturns in the economies of key trading partners such as the United States, China and/or countries in Southeast Asia, including economic, political or social instability in such countries, could also have a negative impact on the Japanese economy as a whole. Currency fluctuations may also adversely impact the Japanese economy, including its export market. Significant public debt and deficits may have a negative effect on economic growth prospects. In addition, Japan’s labor market is adapting to an aging workforce, declining population, and demand for increased labor mobility. These demographic shifts and fundamental structural changes to the labor market may negatively impact Japan’s economic competitiveness. Japan is also subject to the risk of natural disasters, such as earthquakes, volcanic eruptions, typhoons and tsunamis, which could significantly disrupt economic activity and negatively affect the Fund.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">correlation between this information and the market value of the depositary receipts. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Japan Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Japan Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Japan Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Japan Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Japan Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Japan Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Japan Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Japan Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Japan Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Japan Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Japan Capped Index as well as it would have if the Fund held all of the securities in the FTSE Japan Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Japan Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Japan Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Japan Capped Index or the need to meet various new </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Japan Capped Index does not.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Industrials companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The stock prices of companies in the industrials sector are affected by supply and demand both for their specific product or service and for industrials sector products in general. Companies in the industrials sector may be adversely affected by changes in government regulation, world events and economic conditions. In addition, these companies are at risk for environmental damage and product liability claims. Companies in this sector could be adversely affected by commodity price volatility, changes in exchange rates, imposition of export or import controls, increased competition, depletion of resources, technological developments and labor relations.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Japan Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Japan Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Japan Capped Index, even if that security generally is underperforming.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">14.87%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-16.81%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 15.32%.</p></td></tr></table> Best Quarter 2020-12-31 0.1487 Worst Quarter 2020-03-31 -0.1681 As of June 30, 2026, the Fund’s year-to-date return was 15.32%. 2026-06-30 0.1532 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.2530 0.0660 0.0644 Return after taxes on distributions 0.2329 0.0561 0.0559 Return after taxes on distributions and sale of Fund shares 0.1550 0.0489 0.0484 FTSE Japan Index-NR (USD) (USD) (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.2530 0.0659 0.0639 FTSE Japan Capped Index-NR 0.2530 0.0659 0.0639 Franklin FTSE Latin America ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Latin America RIC Capped Index (the FTSE Latin America Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0019 0 0.0000 0.0019 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 19 60 105 241 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 12% of the average value of its portfolio.</p> 0.12 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Latin America Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Latin America Capped Index are included in the Fund’s 80% basket. The FTSE Latin America 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 FTSE Latin America Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Latin America Capped Index’s weight. The FTSE Latin America Capped Index is based on the FTSE Latin America Index and is designed to measure the performance of Latin American large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Latin America Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Latin America Capped Index was comprised of 131 securities with capitalizations ranging from $1.29 billion to $119.07 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Latin America Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Latin America Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Latin America Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Latin America Capped 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 FTSE Latin America Capped Index, but may not track the FTSE Latin America Capped </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Latin America Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE Latin America Capped Index, including securities that resemble those included in the FTSE Latin America Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Latin America Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Latin America Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Latin America Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Latin America Capped Index is concentrated. As of May 31, 2026, the FTSE Latin America Capped Index was concentrated in the financial services sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Latin America Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Latin America Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Latin America Capped Index are included in the Fund’s 80% basket. The FTSE Latin America 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 FTSE Latin America Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Latin America Capped Index’s weight. The FTSE Latin America Capped Index is based on the FTSE Latin America Index and is designed to measure the performance of Latin American large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Latin America Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Latin American securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in securities of Latin American issuers involve risks that are specific to Latin America, including certain legal, regulatory, political and economic risks. Latin American economies are generally considered emerging markets and have experienced high interest rates, economic volatility, inflation, currency devaluations, government debt defaults and high unemployment rates. Certain Latin American countries have experienced periods of political and economic instability and social unrest in the past, including regime changes. Currency devaluations in any one Latin American country can have a significant effect on the entire Latin American region. Because commodities such as oil and gas, minerals and metals represent a significant percentage of the region’s exports, the economies of Latin American countries are particularly sensitive to fluctuations in commodity prices. International economic conditions, particularly those in the United States, Europe and Asia, as well as world prices for oil and other commodities may also influence the development of Latin American economies. A relatively small number of Latin American companies represents a large portion of Latin America’s total market and thus may be more sensitive to adverse political or economic circumstances and market movements.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Brazilian securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Brazilian economy has experienced in the past, and may continue to experience, periods of high inflation rates and political unrest. The Brazilian economy depends heavily on international trade, and is highly sensitive to fluctuations in international commodity prices and commodity markets. Currency devaluations or restrictions, regime changes, fluctuations in commodity markets, </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">political and social instability, high inflation rates, high levels of outstanding national debt, and deteriorating economic conditions may result in significant downturns and increased volatility in the Brazilian economy, as it has in the past, and thus adversely affect the Fund’s performance.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Mexican securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in Mexican issuers involve risks that are specific to Mexico, including legal, regulatory, political, currency, security and economic risks. In the past, Mexico has experienced high interest rates, economic volatility and high unemployment rates. Mexico's economy depends heavily on trading with the U.S. and is vulnerable to political developments in the U.S. with potential implications for trade arrangements between the U.S. and Mexico, which could negatively affect the value of securities held by the Fund. Mexico's fiscal condition is highly sensitive to oil prices, and the financial constraints faced by the state-owned oil company could negatively impact the Mexican economy. Additionally, Mexico has experienced an outbreak of violence related to drug trafficking, and incidents involving Mexico's security may have an adverse effect on the Mexican economy and cause uncertainty in its financial markets.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Preferred Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Preferred securities are subject to general market and issuer-specific risks applicable to equity securities as well as certain risks associated with fixed income securities, including sensitivity to changes in interest rates. Preferred securities may be subordinated to bonds or other debt instruments in an issuer's capital structure, subjecting them to a greater risk of non-payment. The value of preferred securities is heavily dependent on the profitability and cash flows of the issuer and may decline substantially due to the omission or deferment of dividend payments. Preferred securities may be less liquid than other securities, </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">such as common stocks, and generally do not provide voting rights with respect to the issuer.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Latin America Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Latin America Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Latin America Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Latin America Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Latin America Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Latin America Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Latin America Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Latin America Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Latin America Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Latin America Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Latin America Capped Index as well as it would have if the Fund held all of the securities in the FTSE Latin America Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Latin America Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Latin America Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Latin America Capped Index or the need to </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Latin America Capped Index does not.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Financial services companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Financial services companies are subject to extensive government regulation that may affect their profitability in many ways, including by limiting the amount and types of loans and other commitments they can make, and the interest rates and fees they can charge. A financial services company's profitability, and therefore its stock prices, may be adversely affected in certain market cycles, including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Changing regulations, continuing consolidations, and development of new products and structures all are likely to have a significant impact on financial services companies.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Latin America Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Latin America Capped Index. In such circumstances, the Fund may be more </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Latin America Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions partially for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">trading volume on the listing exchange and may, therefore, have a material upward or downward effect on the market price of the shares.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">34.86%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-46.33%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 11.45%.</p></td></tr></table> Best Quarter 2020-12-31 0.3486 Worst Quarter 2020-03-31 -0.4633 As of June 30, 2026, the Fund’s year-to-date return was 11.45%. 2026-06-30 0.1145 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.5071 0.0769 0.0464 Return after taxes on distributions 0.4791 0.0516 0.0264 Return after taxes on distributions and sale of Fund shares 0.3084 0.0493 0.0277 FTSE Latin America Index (index reflects no deduction for fees, expenses or taxes) 0.5197 0.0849 0.0534 FTSE Latin America Capped Index-NR 0.5094 0.0789 0.0481 Franklin FTSE Mexico ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Mexico RIC Capped Index (the FTSE Mexico Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0019 0 0.0000 0.0019 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 19 60 105 241 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 21% of the average value of its portfolio.</p> 0.21 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Mexico Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Mexico Capped Index are included in the Fund’s 80% basket. The FTSE Mexico 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 FTSE Mexico Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Mexico Capped Index’s weight. The FTSE Mexico Capped Index is based on the FTSE Mexico Index and is designed to measure the performance of Mexican large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Mexico Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Mexico Capped Index was comprised of 35 securities with capitalizations ranging from $1.50 million to $96.63 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Mexico Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Mexico Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Mexico Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Mexico Capped 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 FTSE Mexico Capped Index, but may not track the FTSE Mexico Capped Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Mexico Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE Mexico </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Capped Index, including securities that resemble those included in the FTSE Mexico Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Mexico Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Mexico Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Mexico Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Mexico Capped Index is concentrated. As of May 31, 2026, the FTSE Mexico Capped Index was concentrated in the consumer staples sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Mexico Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Mexico Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Mexico Capped Index are included in the Fund’s 80% basket. The FTSE Mexico 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 FTSE Mexico Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Mexico Capped Index’s weight. The FTSE Mexico Capped Index is based on the FTSE Mexico Index and is designed to measure the performance of Mexican large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Mexico Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">investments. When there are more sellers than buyers, prices tend to fall. Likewise, when there are more buyers than sellers, prices tend to rise. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Mexican securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in Mexican issuers involve risks that are specific to Mexico, including legal, regulatory, political, currency, security and economic risks. In the past, Mexico has experienced high interest rates, economic volatility and high unemployment rates. Mexico's economy depends heavily on trading with the U.S. and is vulnerable to political developments in the U.S. with potential implications for trade arrangements between the U.S. and Mexico, which could negatively affect the value of securities held by the Fund. Mexico's fiscal condition is highly sensitive to oil prices, and the financial constraints faced by the state-owned oil company could negatively impact the Mexican economy. Additionally, Mexico has experienced an outbreak of violence related to drug trafficking, and incidents involving Mexico's security may have an adverse effect on the Mexican economy and cause uncertainty in its financial markets.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">correlation between this information and the market value of the depositary receipts. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Mexico Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Mexico Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Mexico Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Mexico Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Mexico Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Mexico Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Mexico Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Mexico Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Mexico Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Mexico Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Mexico Capped Index as well as it would have if the Fund held all of the securities in the FTSE Mexico Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Mexico Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Mexico Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Mexico Capped Index or the need to meet various </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Mexico Capped Index does not.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Consumer staples companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The consumer staples sector may be affected by the regulation of various product components and production methods, marketing campaigns and changes in consumer demand. Tobacco companies, in particular, may be adversely affected by new laws, regulations and litigation. The consumer staples sector may also be adversely affected by changes or trends in commodity prices, which may be influenced by unpredictable factors.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Mexico Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Mexico Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">security is added or removed, respectively, from the FTSE Mexico Capped Index, even if that security generally is underperforming.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">31.02%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-36.73%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 10.40%.</p></td></tr></table> Best Quarter 2020-12-31 0.3102 Worst Quarter 2020-03-31 -0.3673 As of June 30, 2026, the Fund’s year-to-date return was 10.40%. 2026-06-30 0.1040 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.5270 0.1349 0.0711 Return after taxes on distributions 0.5162 0.1266 0.0630 Return after taxes on distributions and sale of Fund shares 0.3255 0.1075 0.0546 FTSE Mexico Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.5338 0.1324 0.0708 FTSE Mexico Capped Index-NR 0.5302 0.1350 0.0711 Franklin FTSE Saudi Arabia ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Saudi Arabia RIC Capped Index (the FTSE Saudi Arabia Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0039 0 0.0000 0.0039 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 40 126 220 494 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 60% of the average value of its portfolio.</p> 0.60 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Saudi Arabia Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Saudi Arabia Capped Index are included in the Fund’s 80% basket. The FTSE Saudi Arabia 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 FTSE Saudi Arabia Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Saudi Arabia Capped Index’s weight. The FTSE Saudi Arabia Capped Index is based on the FTSE Saudi Arabia Index and is designed to measure the performance of Saudi Arabian large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Saudi Arabia Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Saudi Arabia Capped Index was comprised of 65 securities with capitalizations ranging from $1.37 billion to $1.49 trillion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Saudi Arabia Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Saudi Arabia Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Saudi Arabia Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Saudi Arabia Capped 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 FTSE Saudi Arabia Capped Index, but may not track the FTSE Saudi Arabia Capped Index with the </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">same degree of accuracy as would an investment vehicle replicating the entire FTSE Saudi Arabia Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE Saudi Arabia Capped Index, including securities that resemble those included in the FTSE Saudi Arabia Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Saudi Arabia Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Saudi Arabia Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Saudi Arabia Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Saudi Arabia Capped Index is concentrated. As of May 31, 2026, the FTSE Saudi Arabia Capped Index was concentrated in the banking industry.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Saudi Arabia Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Saudi Arabia Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Saudi Arabia Capped Index are included in the Fund’s 80% basket. The FTSE Saudi Arabia 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 FTSE Saudi Arabia Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Saudi Arabia Capped Index’s weight. The FTSE Saudi Arabia Capped Index is based on the FTSE Saudi Arabia Index and is designed to measure the performance of Saudi Arabian large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Saudi Arabia Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Saudi Arabian securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in securities of Saudi Arabian issuers involve risks that are specific to Saudi Arabia, including certain legal, regulatory, political and economic risks. The ability of foreign investors (such as the Fund) to invest directly in Saudi Arabian issuers is relatively new and is contingent on the ability of the investment manager as a Foreign Portfolio Manager, and the Fund as a qualified foreign investor (QFI), to maintain their respective authorizations under the current framework for foreign investments. Current foreign investment permissions could be restricted or revoked by the Saudi Arabian government at any time, and other unforeseen risks of investing in the Saudi Arabian market could arise in the future. There may be a limited number of brokers who can provide services to the Fund, which may have an adverse impact on the prices, quantity or timing of the Fund’s portfolio transactions. In addition, investments in Saudi Arabian equities may entail higher brokerage costs and/or result in higher tracking error in the case of a portfolio rebalance. The economy of Saudi Arabia is dominated by petroleum exports. Consequently, a sustained decrease in petroleum prices could have a negative impact on all aspects of the economy. It is possible that instability in the larger Middle East region could adversely impact the economy of Saudi Arabia, and there is no assurance of continued political stability in Saudi Arabia.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Saudi Arabia Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Saudi Arabia Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Saudi Arabia Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Saudi Arabia Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Saudi Arabia Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Saudi Arabia Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Saudi Arabia Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Saudi Arabia Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Saudi Arabia Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Saudi Arabia Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Saudi Arabia Capped Index as well as it would have if the Fund held all of the securities in the FTSE Saudi Arabia Capped Index.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Saudi Arabia Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Saudi Arabia Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Saudi Arabia Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Saudi Arabia Capped Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Banking companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Companies in the banking industry are subject to certain risks, including the effects of: (1) changes in interest rates on the profitability of banks; (2) the rate of corporate and consumer debt defaults; (3) price competition; (4) governmental limitations on a company’s loans, other financial commitments, </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">product lines and other operations; and (5) ongoing changes in the financial services industry (including consolidations, development of new products and changes to the industry’s regulatory framework). </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Saudi Arabia Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Saudi Arabia Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Saudi Arabia Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions entirely for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">18.37%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-22.14%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 4.26%.</p></td></tr></table> Best Quarter 2022-03-31 0.1837 Worst Quarter 2020-03-31 -0.2214 As of June 30, 2026, the Fund’s year-to-date return was 4.26%. 2026-06-30 0.0426 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes -0.0817 0.0641 0.0610 Return after taxes on distributions -0.0957 0.0527 0.0501 Return after taxes on distributions and sale of Fund shares -0.0477 0.0458 0.0436 FTSE All World Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.2262 0.1121 0.1175 FTSE Saudi Arabia Capped Index-NR -0.0780 0.0678 0.0647 Franklin FTSE South Korea ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE South Korea RIC Capped Index (the FTSE South Korea Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 30% of the average value of its portfolio.</p> 0.30 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE South Korea Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE South Korea Capped Index are included in the Fund’s 80% basket. The FTSE South Korea 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 FTSE South Korea Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE South Korea Capped Index’s weight. The FTSE South Korea Capped Index is based on the FTSE South Korea Index and is designed to measure the performance of South Korean large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE South Korea Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE South Korea Capped Index was comprised of 156 securities with capitalizations ranging from $613 million to $1.39 trillion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE South Korea Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE South Korea Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE South Korea Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE South Korea Capped 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 FTSE South Korea Capped Index, but may not track the FTSE South Korea Capped Index with the </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">same degree of accuracy as would an investment vehicle replicating the entire FTSE South Korea Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE South Korea Capped Index, including securities that resemble those included in the FTSE South Korea Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE South Korea Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE South Korea Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE South Korea Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE South Korea Capped Index is concentrated. As of May 31, 2026, the FTSE South Korea Capped Index was concentrated in the semiconductors and semiconductor equipment industry. </p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE South Korea Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE South Korea Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE South Korea Capped Index are included in the Fund’s 80% basket. The FTSE South Korea 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 FTSE South Korea Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE South Korea Capped Index’s weight. The FTSE South Korea Capped Index is based on the FTSE South Korea Index and is designed to measure the performance of South Korean large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE South Korea Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">South Korean securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in South Korean securities may subject the Fund to legal, regulatory, political, currency, security, and economic risks that are specific to South Korea. In addition, economic and political developments of South Korea’s neighbors or potential hostilities with North Korea may have an adverse effect on the South Korean economy. The South Korean economy is heavily reliant on trading exports, especially with other Asian countries and the U.S. Conditions that weaken demand for key South Korean exports, and disruptions or decreases in trade activity could lead to declines in economic growth.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE South Korea Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE South Korea Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE South Korea Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE South Korea Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE South Korea Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE South Korea Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE South Korea Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE South Korea Capped Index. In addition, the Fund’s NAV may deviate from the FTSE South Korea Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE South Korea Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE South Korea Capped Index as well as it would have if the Fund held all of the securities in the FTSE South Korea Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE South Korea Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE South Korea Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE South Korea Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE South Korea Capped Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Semiconductors and semiconductor equipment companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Competitive pressures, intense competition, aggressive pricing, technological developments, changing demand, research and development costs, availability and price of components and product obsolescence can significantly affect companies in this industry.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE South Korea Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE South Korea Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization companies may be particularly affected by interest rate increases, as they may find it more difficult to borrow money to </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">continue or expand operations, or may have difficulty in repaying any loans. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE South Korea Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions entirely for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p>  <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">35.90%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-23.52%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 101.30%.</p></td></tr></table> Best Quarter 2020-12-31 0.3590 Worst Quarter 2020-03-31 -0.2352 As of June 30, 2026, the Fund’s year-to-date return was 101.30%. 2026-06-30 1.0130 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.9179 0.0459 0.0575 Return after taxes on distributions 0.8937 0.0356 0.0488 Return after taxes on distributions and sale of Fund shares 0.5489 0.0318 0.0422 FTSE South Korea Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.9539 0.0417 0.0593 FTSE South Korea Capped Index-NR 0.9231 0.0464 0.0576 Franklin FTSE Switzerland ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Switzerland RIC Capped Index (the FTSE Switzerland Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 12% of the average value of its portfolio.</p> 0.12 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Switzerland Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Switzerland Capped Index are included in the Fund’s 80% basket. The FTSE Switzerland 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 FTSE Switzerland Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Switzerland Capped Index’s weight. The FTSE Switzerland Capped Index is based on the FTSE Switzerland Index and is designed to measure the performance of Swiss large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Switzerland Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Switzerland Capped Index was comprised of 50 securities with capitalizations ranging from $2.84 billion to $342.75 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Switzerland Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Switzerland Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Switzerland Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Switzerland Capped 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 FTSE Switzerland Capped Index, but may not track the FTSE Switzerland Capped Index </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Switzerland Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE Switzerland Capped Index, including securities that resemble those included in the FTSE Switzerland Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Switzerland Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Switzerland Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Switzerland Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Switzerland Capped Index is concentrated. As of May 31, 2026, the FTSE Switzerland Capped Index was concentrated in the pharmaceutical industry.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Switzerland Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Switzerland Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Switzerland Capped Index are included in the Fund’s 80% basket. The FTSE Switzerland 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 FTSE Switzerland Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Switzerland Capped Index’s weight. The FTSE Switzerland Capped Index is based on the FTSE Switzerland Index and is designed to measure the performance of Swiss large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Switzerland Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. Current uncertainty concerning the ultimate economic consequences and geopolitical effects of Russia’s military invasion of Ukraine in February 2022 and concerns regarding potential escalation in the region have resulted in increased market volatility.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Swiss securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in Swiss issuers subject the Fund to legal, regulatory, political, currency, security, and economic risks specific to Switzerland. International trade is a large component of the Swiss economy and Switzerland depends upon exports to generate economic growth. The Swiss economy relies on certain key trading partners including the United States, Europe and China. Currency fluctuations or volatility or a shortage in the commodity markets could have a negative impact on the Swiss economy. Switzerland’s economic growth is generally correlated to slowdowns and growth trends experienced in other countries, including the United States and certain Western European countries.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Switzerland Capped Index, </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Switzerland Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Switzerland Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Switzerland Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Switzerland Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Switzerland Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Switzerland Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Switzerland Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Switzerland Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Switzerland Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Switzerland Capped Index as well as it would have if the Fund held all of the securities in the FTSE Switzerland Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Switzerland Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Switzerland Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Switzerland Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Switzerland Capped Index does not.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Pharmaceutical companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Companies in the pharmaceuticals industry may be affected by industry competition, dependency on a limited number of products, obsolescence of products, government approvals and regulations, loss or impairment of intellectual property rights and litigation regarding product liability.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Switzerland Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Switzerland Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization companies may be particularly affected by </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Switzerland Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. The Fund has a limited number of institutions that act as Authorized </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2019, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">12.87%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-14.59%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 6.76%.</p></td></tr></table> Best Quarter 2019-03-31 0.1287 Worst Quarter 2022-06-30 -0.1459 As of June 30, 2026, the Fund’s year-to-date return was 6.76%. 2026-06-30 0.0676 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.3310 0.0854 0.0988 Return after taxes on distributions 0.3278 0.0828 0.0945 Return after taxes on distributions and sale of Fund shares 0.2041 0.0691 0.0802 FTSE Switzerland Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.3367 0.0810 0.0932 FTSE Switzerland Capped Index-NR 0.3280 0.0819 0.0944 Franklin FTSE Taiwan ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Taiwan RIC Capped Index (the FTSE Taiwan Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0019 0 0.0000 0.0019 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 19 60 105 241 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 57% of the average value of its portfolio.</p> 0.57 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Taiwan Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Taiwan Capped Index are included in the Fund’s 80% basket. The FTSE Taiwan 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 FTSE Taiwan Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Taiwan Capped Index’s weight. The FTSE Taiwan Capped Index is based on the FTSE Taiwan Index and is designed to measure the performance of Taiwanese large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Taiwan Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Taiwan Capped Index was comprised of 132 securities with capitalizations ranging from $867 million to $1.95 trillion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Taiwan Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Taiwan Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Taiwan Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Taiwan Capped 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 FTSE Taiwan Capped Index, but may not track the FTSE Taiwan Capped Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Taiwan Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE Taiwan </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Capped Index, including securities that resemble those included in the FTSE Taiwan Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Taiwan Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Taiwan Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Taiwan Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Taiwan Capped Index is concentrated. As of May 31, 2026, the FTSE Taiwan Capped Index was concentrated in the semiconductors and semiconductor equipment industry and the electronic equipment, instruments and components industry. </p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Taiwan Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Taiwan Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Taiwan Capped Index are included in the Fund’s 80% basket. The FTSE Taiwan 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 FTSE Taiwan Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Taiwan Capped Index’s weight. The FTSE Taiwan Capped Index is based on the FTSE Taiwan Index and is designed to measure the performance of Taiwanese large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Taiwan Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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., </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">fluctuations may negatively affect investments denominated in foreign currencies and any income received or expenses paid by the Fund in that foreign currency. </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Taiwanese securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in Taiwanese issuers involve risks that are specific to Taiwan, including legal, regulatory, political, currency, security and economic risks. Investments in Taiwan could be adversely affected by its complex political and economic relationship with China. Specifically, Taiwan’s geographic proximity to and history of political contention with China have resulted in ongoing tensions. Any escalation of geopolitical friction between Taiwan and China may materially affect the Taiwanese economy and its securities market.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Taiwan Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Taiwan Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Taiwan Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Taiwan Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Taiwan Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Taiwan Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Taiwan Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Taiwan Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Taiwan Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Taiwan Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Taiwan Capped Index as well as it would have if the Fund held all of the securities in the FTSE Taiwan Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Taiwan Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Taiwan Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Taiwan Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Taiwan Capped Index does not.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Semiconductors and semiconductor equipment companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Competitive pressures, intense competition, aggressive pricing, technological developments, changing demand, research and development costs, availability and price of components and product obsolescence can significantly affect companies in this industry.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:italic; font-weight:normal; text-decoration:none;">Electronic equipment, instruments and components companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The electronic equipment, instruments and components industry is intensely competitive, and prices for existing products tend to decrease over their life cycle. Companies must continue to develop new products and technology to remain competitive and are therefore dependent on hiring and retaining key personnel. Companies typically face high fixed operating costs while also being subject to fluctuations in the cost of raw materials.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Taiwan Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Taiwan Capped Index. In such circumstances, the Fund may be more sensitive to </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Taiwan Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions entirely for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">(including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">22.39%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-19.82%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 69.09%.</p></td></tr></table> Best Quarter 2020-06-30 0.2239 Worst Quarter 2020-03-31 -0.1982 As of June 30, 2026, the Fund’s year-to-date return was 69.09%. 2026-06-30 0.6909 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.3191 0.1348 0.1389 Return after taxes on distributions 0.3075 0.1260 0.1308 Return after taxes on distributions and sale of Fund shares 0.1905 0.1044 0.1114 FTSE Taiwan Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.3995 0.1685 0.1751 FTSE Taiwan Capped Index-NR 0.3208 0.1364 0.1406 Franklin FTSE United Kingdom ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE UK RIC Capped Index (the FTSE UK Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 5% of the average value of its portfolio.</p> 0.05 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE UK Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE UK Capped Index are included in the Fund’s 80% basket. The FTSE UK 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 FTSE UK Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE UK Capped Index’s weight. The FTSE UK Capped Index is based on the FTSE UK Index and is designed to measure the performance of United Kingdom large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE UK Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE UK Capped Index was comprised of 96 securities with capitalizations ranging from $3.83 billion to $322.43 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE UK Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE UK Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE UK Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE UK Capped 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 FTSE UK Capped Index, but may not track the FTSE UK Capped Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE UK Capped Index. Under the representative </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE UK Capped Index, including securities that resemble those included in the FTSE UK Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE UK Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE UK Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE UK Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE UK Capped Index is concentrated. As of May 31, 2026, the FTSE UK Capped Index was concentrated in the financial services sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE UK Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE UK Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE UK Capped Index are included in the Fund’s 80% basket. The FTSE UK 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 FTSE UK Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE UK Capped Index’s weight. The FTSE UK Capped Index is based on the FTSE UK Index and is designed to measure the performance of United Kingdom large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE UK Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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., </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">fluctuations may negatively affect investments denominated in foreign currencies and any income received or expenses paid by the Fund in that foreign currency. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. Current uncertainty concerning the ultimate economic consequences and geopolitical effects of Russia’s military invasion of Ukraine in February 2022 and concerns regarding potential escalation in the region have resulted in increased market volatility.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">United Kingdom securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The United Kingdom has one of the largest economies in Europe and trades heavily with other European countries and the United States. The economy of the United Kingdom may be impacted by changes to the economic health of other European countries and the United States. The United Kingdom also relies heavily on the export of financial services. Accordingly, a slowdown in the financial services sector may have an adverse impact on the United Kingdom’s economy. These and other factors could have a negative impact on the Fund’s performance and increase the volatility of an investment in the Fund.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE UK Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE UK Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE UK Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE UK Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE UK Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE UK Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE UK Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE UK Capped Index. In addition, the Fund’s NAV may deviate from the FTSE UK Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE UK Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE UK Capped Index as well as it would have if the Fund held all of the securities in the FTSE UK Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE UK Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE UK Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE UK Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE UK Capped Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Financial services companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Financial services companies are subject to extensive government regulation that may affect their profitability in many ways, including by limiting the amount and types of loans and other commitments they can make, and the interest rates and fees they can charge. A financial services company's profitability, and therefore its stock prices, may be adversely affected in certain market cycles, including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Changing regulations, continuing consolidations, and development of new products and structures all are likely to have a significant impact on financial services companies.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE UK Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE UK Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE UK Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">17.42%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-29.03%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 5.92%.</p></td></tr></table> Best Quarter 2022-12-31 0.1742 Worst Quarter 2020-03-31 -0.2903 As of June 30, 2026, the Fund’s year-to-date return was 5.92%. 2026-06-30 0.0592 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.3336 0.1280 0.0777 Return after taxes on distributions 0.3207 0.1170 0.0659 Return after taxes on distributions and sale of Fund shares 0.2035 0.0992 0.0575 FTSE UK Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.3354 0.1291 0.0787 FTSE UK Capped Index-NR 0.3354 0.1291 0.0787 Franklin FTSE Asia ex Japan ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Asia ex Japan RIC Capped Index (the FTSE Asia ex Japan Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0019 0 0.0000 0.0019 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 19 60 105 241 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 7% of the average value of its portfolio.</p> 0.07 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Asia ex Japan Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Asia ex Japan Capped Index are included in the Fund’s 80% basket. The FTSE Asia ex Japan 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 FTSE Asia ex Japan Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Asia ex Japan Capped Index’s weight. The FTSE Asia ex Japan Capped Index is based on the FTSE Asia Pacific ex Japan, Australia and New Zealand Index and is designed to measure the performance of large– and mid– capitalization stocks from developed and emerging Asian countries, excluding Japan, Australia and New Zealand. FTSE Russell determines eligible securities for the FTSE Asia ex Japan Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. FTSE Russell also maintains a set of criteria to assess a country’s market status, including various quality of markets criteria, a country’s prevailing regulatory environment, custody and settlement, and dealing landscape. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Asia ex Japan Capped Index was comprised of 1,599 securities with capitalizations ranging from $383 million to $1.95 trillion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Asia ex Japan Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Asia ex Japan Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Asia ex Japan Capped Index). However, it may not be </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">possible or practicable to replicate the FTSE Asia ex Japan Capped Index. In these circumstances, the Fund may use a representative sampling strategy whereby the Fund will invest in what it believes to be a representative sample of the component securities of the FTSE Asia ex Japan Capped Index, but may not track the FTSE Asia ex Japan Capped Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Asia ex Japan Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE Asia ex Japan Capped Index, including securities that resemble those included in the FTSE Asia ex Japan Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Asia ex Japan Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Asia ex Japan Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Asia ex Japan Capped Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Asia ex Japan Capped Index is concentrated. As of May 31, 2026, the FTSE Asia ex Japan Capped Index was concentrated in the semiconductors and semiconductor equipment industry.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Asia ex Japan Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Asia ex Japan Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Asia ex Japan Capped Index are included in the Fund’s 80% basket. The FTSE Asia ex Japan 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 FTSE Asia ex Japan Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Asia ex Japan Capped Index’s weight. The FTSE Asia ex Japan Capped Index is based on the FTSE Asia Pacific ex Japan, Australia and New Zealand Index and is designed to measure the performance of large– and mid– capitalization stocks from developed and emerging Asian countries, excluding Japan, Australia and New Zealand. FTSE Russell determines eligible securities for the FTSE Asia ex Japan Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. FTSE Russell also maintains a set of criteria to assess a country’s market status, including various quality of markets criteria, a country’s prevailing regulatory environment, custody and settlement, and dealing landscape. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Regional:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund invests a significant portion of its assets in a specific geographic region or a particular country, the Fund will generally have more exposure to the specific regional or country risks. In the event of economic or political turmoil or a deterioration of diplomatic relations in a region or country where a substantial portion of the Fund’s assets are invested, the Fund may experience substantial illiquidity or reduction in the value of the Fund’s investments. Adverse conditions in a certain region or country can adversely affect securities of issuers in other countries whose economies appear to be unrelated. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Asian securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in securities of issuers in Asian countries involve risks that are specific to Asia, including certain legal, regulatory, political, security and economic risks. Certain Asian countries have experienced currency fluctuations, less liquidity, expropriation and/or nationalization of assets, confiscatory taxation, political instability, armed conflict and social instability as a result of religious, ethnic, socio-economic and/or political unrest. An adverse economic or political event in one Asian country may negatively affect countries throughout the region. Additionally, certain Asian economies have been and continue to be subject, to some extent, to over-extension of credit, high unemployment, high inflation, decreased exports, and economic recessions. Some economies in this region are dependent on a range of commodities, and are strongly affected by international commodity prices and particularly vulnerable to price changes for these products. The market for securities in this region may also be directly influenced by the flow of international capital, and by the economic and </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">market conditions of neighboring countries. Many Asian economies have experienced rapid growth and industrialization, and there is no assurance that this growth rate will be maintained. Some Asian economies are highly dependent on trade and economic conditions in other countries can impact these economies.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Chinese securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There are special risks associated with investments in China, including exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization and exchange control regulations (including currency blockage). Inflation and rapid fluctuations in inflation and interest rates have had, and may continue to have, negative effects on the economy and securities markets of China. China is deemed by the investment manager to be an emerging markets country, which means an investment in this country has more heightened risks than general foreign investing due to a lack of established legal, political, business and social frameworks and accounting standards or auditor oversight in the country to support securities markets as well as the possibility for more widespread corruption and fraud. In addition, the standards for environmental, social and corporate governance matters in China also tend to be lower than such standards in more developed economies. Also, certain securities issued by companies located or operating in China, such as China A-Shares, are subject to trading restrictions, quota limitations, and clearing and settlement risks. In addition, there may be significant obstacles to obtaining information necessary for investigations into or litigation against companies located in or operating in China and shareholders may have limited legal remedies. The Fund is not actively managed and does not select investments based on investor protection considerations. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Trade disputes and the imposition of tariffs on goods and services can affect the Chinese economy, particularly in light of China's large export sector, as well as the global economy. Trade disputes can result in increased costs of production and reduced profitability for non-export-dependent companies that rely on imports to the extent China engages in retaliatory tariffs. Trade disputes may also lead to increased currency exchange rate volatility.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Certain investments in Chinese companies are made through a special structure known as a variable interest entity (“VIE”). In a VIE structure, foreign investors, such as the Fund, will only own stock in a shell company rather than directly in the VIE, which must be owned by Chinese nationals (and/or Chinese companies) to obtain the licenses and/or assets required to operate in a restricted or prohibited sector in China. The value of the shell company is derived from its ability to consolidate the VIE into its financials pursuant to contractual arrangements that allow the shell company to exert a degree of control over, and obtain economic benefits arising from, the VIE without formal legal ownership. While VIEs are a longstanding industry practice and are well known by Chinese officials and regulators, the structure historically has not been formally recognized under </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Chinese law and it is uncertain whether Chinese officials or regulators will withdraw their implicit acceptance of the structure. It is also uncertain whether the contractual arrangements, which may be subject to conflicts of interest between the legal owners of the VIE and foreign investors, would be enforced by Chinese courts or arbitration bodies. Prohibitions of these structures by the Chinese government, or the inability to enforce such contracts, from which the shell company derives its value, would likely cause the VIE-structured holding(s) to suffer significant, detrimental, and possibly permanent and even total losses in value, and in turn, adversely affect the Fund’s returns and net asset value. </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Asia ex Japan Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Asia ex Japan Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Asia ex Japan Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Asia ex Japan Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Asia ex Japan Capped Index in accordance with its methodology (including as a result of </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Asia ex Japan Capped Index may therefore be borne by the Fund and its shareholders.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Asia ex Japan Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Asia ex Japan Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Asia ex Japan Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Asia ex Japan Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Asia ex Japan Capped Index as well as it would have if the Fund held all of the securities in the FTSE Asia ex Japan Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Asia ex Japan Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Asia ex Japan Capped Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Asia ex Japan Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Asia ex Japan Capped Index does not.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Semiconductors and semiconductor equipment companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Competitive pressures, intense competition, aggressive pricing, technological developments, changing demand, research and development costs, availability and price of components and product obsolescence can significantly affect companies in this industry.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Asia ex Japan Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Asia ex Japan Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly exceeds the Fund’s initial investment. Certain derivatives have the potential for unlimited loss, regardless of </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">the size of the initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Asia ex Japan Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions partially for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">18.79%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-18.63%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 24.71%.</p></td></tr></table> Best Quarter 2020-12-31 0.1879 Worst Quarter 2020-03-31 -0.1863 As of June 30, 2026, the Fund’s year-to-date return was 24.71%. 2026-06-30 0.2471 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.3133 0.0386 0.0537 Return after taxes on distributions 0.3077 0.0327 0.0472 Return after taxes on distributions and sale of Fund shares 0.1923 0.0291 0.0407 FTSE Asia Pacific ex Japan Australia and New Zealand Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.3167 0.0438 0.0576 FTSE Asia ex Japan Capped Index-NR 0.3167 0.0437 0.0580 Franklin FTSE Europe ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe RIC Capped Index (the FTSE Developed Europe Capped Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 5% of the average value of its portfolio.</p> 0.05 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Developed Europe Capped Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Developed Europe Capped Index are included in the Fund’s 80% basket. The FTSE Developed Europe 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 FTSE Developed Europe Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Developed Europe Capped Index’s weight. The FTSE Developed Europe Capped Index is based on the FTSE Developed Europe Index and is designed to measure the performance of large- and mid-capitalization stocks from developed European countries. FTSE Russell determines eligible securities for the FTSE Developed Europe Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. FTSE Russell also maintains a set of criteria to assess a country’s market status, including various quality of markets criteria, a country’s prevailing regulatory environment, custody and settlement, and dealing landscape. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Developed Europe Capped Index was comprised of 500 securities with capitalizations ranging from $1.73 billion to $622.83 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe Capped Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Developed Europe Capped Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Developed Europe Capped Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Developed Europe Capped 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 FTSE </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Developed Europe Capped Index, but may not track the FTSE Developed Europe Capped Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Developed Europe Capped Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE Developed Europe Capped Index, including securities that resemble those included in the FTSE Developed Europe Capped Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Developed Europe Capped Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Developed Europe Capped Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Developed Europe Capped Index.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Developed Europe Capped Index is concentrated.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Developed Europe Capped Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Developed Europe Capped Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Developed Europe Capped Index are included in the Fund’s 80% basket. The FTSE Developed Europe 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 FTSE Developed Europe Capped Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Developed Europe Capped Index’s weight. The FTSE Developed Europe Capped Index is based on the FTSE Developed Europe Index and is designed to measure the performance of large- and mid-capitalization stocks from developed European countries. FTSE Russell determines eligible securities for the FTSE Developed Europe Capped Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. FTSE Russell also maintains a set of criteria to assess a country’s market status, including various quality of markets criteria, a country’s prevailing regulatory environment, custody and settlement, and dealing landscape. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Regional:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund invests a significant portion of its assets in a specific geographic region or a particular country, the Fund will generally have more exposure to the specific regional or country risks. In the event of economic or political turmoil or a deterioration of diplomatic relations in a region or country where a substantial portion of the Fund’s assets are invested, the Fund may experience substantial illiquidity or reduction in the value of the Fund’s investments. Adverse conditions in a certain region or country can adversely affect securities of issuers in other countries whose economies appear to be unrelated. Current uncertainty concerning the ultimate economic consequences and geopolitical effects of Russia’s military invasion of Ukraine in February 2022 and concerns regarding potential escalation in the region have resulted in increased market volatility.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">European securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in securities of European issuers involve risks that are specific to Europe, including certain legal, regulatory, political and economic risks. Political uncertainty surrounding the European Union (EU) and its membership 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. One or more EU member states might exit the EU, placing the European currency and banking system in jeopardy. Efforts of the EU to further unify the economic and monetary policies of its members may increase the potential interdependence of the economies of the EU members and thereby increase the risk that adverse developments in one country will adversely affect the securities of issuers located in other countries.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Developed Europe Capped Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Developed Europe Capped Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Developed Europe Capped Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Developed Europe Capped Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Developed Europe Capped Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Developed Europe Capped Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Developed Europe Capped Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Developed Europe Capped Index. In addition, the Fund’s NAV may deviate from the FTSE Developed Europe Capped Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Developed Europe Capped Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Developed Europe Capped Index as well as it would have if the Fund held all of the securities in the FTSE Developed Europe Capped Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Developed Europe Capped Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Developed Europe Capped Index, pricing differences </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">(including differences between a security’s price at the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Developed Europe Capped Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Developed Europe Capped Index does not.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Developed Europe Capped Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Developed Europe Capped Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly 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, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not achieve the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Developed Europe Capped Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">19.57%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-24.44%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 7.82%.</p></td></tr></table> Best Quarter 2022-12-31 0.1957 Worst Quarter 2020-03-31 -0.2444 As of June 30, 2026, the Fund’s year-to-date return was 7.82%. 2026-06-30 0.0782 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.3587 0.1055 0.0808 Return after taxes on distributions 0.3501 0.0986 0.0729 Return after taxes on distributions and sale of Fund shares 0.2189 0.0835 0.0629 FTSE Developed Europe Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.3558 0.1025 0.0783 FTSE Developed Europe Capped Index-NR 0.3558 0.1025 0.0783 Franklin FTSE Eurozone ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Eurozone Index (the FTSE Developed Eurozone Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 6% of the average value of its portfolio.</p> 0.06 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Developed Eurozone Index and in depositary receipts representing such securities. The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Developed Eurozone Index are included in the Fund’s 80% basket. The FTSE Developed Eurozone Index is a free float-adjusted market capitalization weighted index maintained and calculated by FTSE Russell. The FTSE Developed Eurozone Index is designed to measure the performance of large- and mid-capitalization stocks from developed Eurozone countries. The Eurozone is a geographic and economic region that consists of all the European Union (EU) countries that have fully incorporated the euro as their national currency. The FTSE Developed Eurozone Index currently consists of securities from the following ten developed market countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal and Spain. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">FTSE Russell determines eligible securities for the FTSE Developed Eurozone Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. FTSE Russell also maintains a set of criteria to assess a country’s market status, including various quality of markets criteria, a country’s prevailing regulatory environment, custody and settlement, and dealing landscape. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Developed Eurozone Index was comprised of 261 securities with capitalizations ranging from $1.73 billion to $622.83 billion.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a “passive” or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Eurozone Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Developed Eurozone Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Developed Eurozone Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE Developed Eurozone 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 FTSE </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Developed Eurozone Index, but may not track the FTSE Developed Eurozone Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Developed Eurozone Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE Developed Eurozone Index, including securities that resemble those included in the FTSE Developed Eurozone Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s FTSE Developed Eurozone Index, such as to equitize cash and accrued income (i.e., gain equity market exposure and maintain liquidity until the Fund invests in individual securities), simulate investments in the FTSE Developed Eurozone Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may enter into foreign currency forward contracts and/or currency futures contracts to provide the Fund with additional opportunities to add value and better track the performance of the Fund’s FTSE Developed Eurozone Index, such as by facilitating local securities settlements or protecting against currency exposure in connection with distributions to Fund shareholders.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Developed Eurozone Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Developed Eurozone Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Developed Eurozone Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Developed Eurozone Index is concentrated. As of May 31, 2026, the FTSE Developed Eurozone Index was concentrated in the financial services sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Developed Eurozone Index and in depositary receipts representing such securities. Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Developed Eurozone Index and in depositary receipts representing such securities The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Developed Eurozone Index are included in the Fund’s 80% basket. The FTSE Developed Eurozone Index is a free float-adjusted market capitalization weighted index maintained and calculated by FTSE Russell. The FTSE Developed Eurozone Index is designed to measure the performance of large- and mid-capitalization stocks from developed Eurozone countries. The Eurozone is a geographic and economic region that consists of all the European Union (EU) countries that have fully incorporated the euro as their national currency. The FTSE Developed Eurozone Index currently consists of securities from the following ten developed market countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal and Spain. <p style="margin-top:revert; margin-bottom:revert;font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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 </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Regional:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund invests a significant portion of its assets in a specific geographic region or a particular country, the Fund will generally have more exposure to the specific regional or country risks. In the event of economic or political turmoil or a deterioration of diplomatic relations in a region or country where a substantial portion of the Fund’s assets are invested, the Fund may experience substantial illiquidity or reduction in the value of the Fund’s investments. Adverse conditions in a certain region or country can adversely affect securities of issuers in other countries whose economies appear to be unrelated. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">European securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in securities of European issuers involve risks that are specific to Europe, including certain legal, regulatory, political and economic risks. Political uncertainty surrounding the European Union (EU) and its membership 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. One or more EU member states might exit the EU, placing the European currency and banking system in jeopardy. Efforts of the EU to further unify the economic and monetary policies of its members may increase the potential interdependence of the economies of the EU members and thereby increase the risk that adverse developments in one country will adversely affect the securities of issuers located in other countries.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Current uncertainty concerning the ultimate economic consequences and geopolitical effects of Russia’s military invasion of Ukraine in February 2022 and concerns regarding potential escalation in the region have resulted in increased market volatility.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Developed Eurozone Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Developed Eurozone Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Developed Eurozone Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Developed Eurozone Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Developed Eurozone Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Developed Eurozone Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Developed Eurozone Index and therefore achieve its investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Developed Eurozone Index. In addition, the Fund’s NAV may deviate from the FTSE Developed Eurozone Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Developed Eurozone Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Developed Eurozone Index as well as it would have if the Fund held all of the securities in the FTSE Developed Eurozone Index.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund’s performance from that of the FTSE Developed Eurozone Index. Tracking error may occur because of differences between the securities held in the Fund’s portfolio and those included in the FTSE Developed Eurozone Index, pricing differences (including differences between a security’s price at the local market close and the Fund’s valuation of a </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">security at the time of calculation of the Fund’s NAV), transaction costs, the Fund’s holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Developed Eurozone Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. This risk may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Developed Eurozone Index does not.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Financial services companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Financial services companies are subject to extensive government regulation that may affect their profitability in many ways, including by limiting the amount and types of loans and other commitments they can make, and the interest rates and fees they can charge. A financial services company's profitability, and therefore its stock prices, may be adversely affected in certain market cycles, including periods of rising interest rates, which may restrict the availability and increase the cost of capital, and declining economic conditions, which may cause credit losses due to financial difficulties of borrowers. Changing regulations, continuing consolidations, and development of new products and structures all are likely to have a significant impact on financial services companies.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track its FTSE Developed Eurozone Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Developed Eurozone Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly exceeds the Fund’s initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not realize the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Developed Eurozone Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of the Fund's underlying index. On August 1, 2023, the Fund's underlying index was changed from the FTSE Developed Europe RIC Capped Hedged to USD Index (the FTSE Developed Europe Capped Hedged Index) to the FTSE Developed Eurozone Index. Fund performance prior to that date reflects the Fund seeking to track the performance of the FTSE Developed Europe Capped Hedged Index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2025, Q2</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">14.56%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-21.18%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 9.16%.</p></td></tr></table> Best Quarter 2025-06-30 0.1456 Worst Quarter 2020-03-31 -0.2118 As of June 30, 2026, the Fund’s year-to-date return was 9.16%. 2026-06-30 0.0916 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.4111 0.1406 0.1040 Return after taxes on distributions 0.4042 0.1217 0.0872 Return after taxes on distributions and sale of Fund shares 0.2491 0.1062 0.0784 FTSE Developed Eurozone Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.4080 0.0784 Linked FTSE Developed Eurozone Index-NR 0.4080 0.1389 0.1028 Franklin FTSE Japan Hedged ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan RIC Capped Hedged to USD Index (the FTSE Japan Capped Hedged Index or the Underlying Index).</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0009 0 0.0000 0.0009 Example <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 9 29 51 116 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 18% of the average value of its portfolio.</p> 0.18 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Hedged Index and in depositary receipts representing such securities, including indirectly through the Franklin FTSE Japan ETF (Underlying Fund). The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Japan Capped Hedged Index are included in the Fund’s 80% basket. The FTSE Japan Capped Hedged 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 FTSE Japan Capped Hedged Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Japan Capped Hedged Index's weight. The FTSE Japan Capped Hedged Index is based on the FTSE Japan Hedged to USD Index and is designed to measure the performance of Japanese large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Japan Capped Hedged to USD Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. The FTSE Japan Capped Hedged Index incorporates a hedge against the currency risk of the securities included in the FTSE Japan Capped Hedged Index against the U.S. dollar. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As of May 31, 2026, the FTSE Japan Capped Hedged Index was comprised of 476 securities with capitalizations ranging from $1.13 billion to $268.17 billion.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund, using a "passive" or indexing investment approach, seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Hedged Index. The Fund may use either a replication strategy or representative sampling strategy. Under a replication strategy, the Fund will replicate the component securities of the FTSE Japan Capped Hedged Index as closely as possible (i.e., invest in all of the component securities in their respective weightings in the FTSE Japan Capped Hedged Index). However, under various circumstances, it may not be possible or practicable to replicate the FTSE </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Japan Capped Hedged 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 FTSE Japan Capped Hedged Index, but may not track the FTSE Japan Capped Hedged Index with the same degree of accuracy as would an investment vehicle replicating the entire FTSE Japan Capped Hedged Index. Under the representative sampling technique, the investment manager will select securities that collectively have an investment profile similar to that of the FTSE Japan Capped Hedged Index, including securities that resemble those included in the FTSE Japan Capped Hedged Index in terms of risk factors, performance attributes and other characteristics, such as market capitalization and industry weightings.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The FTSE Japan Capped Hedged Index incorporates a hedge against fluctuations of the Japanese yen by reflecting the impact of rolling monthly currency forward contracts on the Japanese yen (the "hedge impact"). The return of the FTSE Japan Capped Hedged Index is calculated as the sum of the return of the corresponding unhedged index denominated in U.S. dollars plus the hedge impact. The FTSE Japan Capped Hedged Index is calculated as if it sells forward the total value of the non-U.S. dollar denominated securities included in the FTSE Japan Capped Hedged Index at a one-month forward rate to effectively create a hedge against fluctuations in the relative value of the Japanese yen in relation to the U.S. dollar. The hedge is reset on a monthly basis by simulating the setting up of a similar transaction in which the notional amount of the forwards sold represents the new month-end value of the non-U.S. dollar denominated securities included in the FTSE Japan Capped Hedged Index. No adjustment to the hedge is made during the month to account for changes in the FTSE Japan Capped Hedged Index due to price movement of securities, corporate events, additions, deletions or any other changes (i.e., the amount hedged is kept constant over the whole month). The FTSE Japan Capped Hedged Index is designed to have higher returns than an equivalent unhedged index when the Japanese yen is weakening relative to the U.S. dollar. Conversely, the FTSE Japan Capped Hedged Index will have lower returns than an equivalent unhedged index when the Japanese yen is rising relative to the U.S. dollar.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity futures (including equity index futures) and equity total return swaps to provide additional opportunities to add value and better track the performance of the Fund’s Underlying Index, such as to equitize cash and accrued income, simulate investments in the Underlying Index, facilitate trading or minimize transaction costs.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to enter into monthly foreign currency forward contracts and/or currency futures contracts designed to offset the Fund’s exposure to the Japanese yen, in order to seek to replicate the hedge impact incorporated in the calculation of the FTSE Japan Capped Hedged Index. The Fund’s exposure to foreign currency </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">forward contracts and currency futures contracts is based on the aggregate exposure of the Fund to the Japanese yen.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund intends to be diversified in approximately the same proportion as the FTSE Japan Capped Hedged Index is diversified. The Fund may become “non-diversified,” as defined in the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Japan Capped Hedged Index. A “non-diversified” fund generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund. Shareholder approval will not be sought if the Fund becomes non-diversified due solely to a change in the relative market capitalization or index weighting of one or more constituents of the FTSE Japan Capped Hedged Index.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund will concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Japan Capped Hedged Index is concentrated. As of May 31, 2026, the FTSE Japan Capped Hedged Index was concentrated in the industrials sector.</p> Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Hedged Index and in depositary receipts representing such securities, including indirectly through the Franklin FTSE Japan ETF (Underlying Fund). Under normal market conditions, the Fund invests at least 80% of its assets in the component securities of the FTSE Japan Capped Hedged Index and in depositary receipts representing such securities, including indirectly through the Franklin FTSE Japan ETF (Underlying Fund) The Fund’s investments in derivative instruments and other investments that provide investment exposure similar to the component securities of the FTSE Japan Capped Hedged Index are included in the Fund’s 80% basket. The FTSE Japan Capped Hedged 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 FTSE Japan Capped Hedged Index weight, and all issuers with weights above 5% do not cumulatively exceed 50% of the FTSE Japan Capped Hedged Index's weight. The FTSE Japan Capped Hedged Index is based on the FTSE Japan Hedged to USD Index and is designed to measure the performance of Japanese large- and mid-capitalization stocks. FTSE Russell determines eligible securities for the FTSE Japan Capped Hedged to USD Index based on measures such as the company’s place of incorporation, listing country, investor protection regulations present in the country of incorporation, tax domicile, location of headquarters/factors of production and currency of denomination. The FTSE Japan Capped Hedged Index incorporates a hedge against the currency risk of the securities included in the FTSE Japan Capped Hedged Index against the U.S. dollar. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Exchange-traded 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 Fund’s net asset value (NAV), trading price, yield, total return and ability to meet its investment goal.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Currency Hedging:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking investment results that closely correspond, before fees and expenses, to the performance of the FTSE Japan Capped Hedged Index, the Fund will attempt to hedge the currency exposure of non-U.S. dollar denominated securities held in its portfolio by investing in foreign currency forward contracts and/or currency futures contracts. While this approach is designed to minimize the impact of currency fluctuations on Fund returns, it does not necessarily eliminate the Fund's exposure to the Japanese yen. The return of the foreign currency forward contracts and currency futures contracts will not perfectly offset the actual fluctuations between the Japanese yen and the U.S. dollar. Moreover, while currency hedging can reduce or eliminate losses due to exchange rate changes, it can also reduce or eliminate gains, and the Fund bears additional transaction costs in entering into and closing out of derivative positions. Currency </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">hedges are sometimes subject to imperfect matching between the derivative instruments and the currency that the derivative instruments intend to hedge, and there can be no assurance that the Fund's hedging transactions will be effective. The Fund’s exposure to the Japanese yen may not be fully hedged at all times.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because the Fund's currency hedge is generally reset on a monthly basis, currency risk can develop or increase intra-month. Furthermore, while the Fund is designed to hedge against currency fluctuations, it is possible that a degree of currency exposure may remain even at the time a hedging transaction is implemented. The Fund may not be able to structure its hedging transactions as anticipated or its hedging transactions may not successfully reduce the currency risk included in the Fund's portfolio in a way that tracks the FTSE Japan Capped Hedged Index.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Increased volatility of the FTSE Japan Capped Hedged Index or the U.S. dollar relative to the currency being hedged will generally reduce the effectiveness of the Fund's currency hedging strategy, measured on an aggregate basis. Significant differences between U.S. dollar interest rates and foreign currency interest rates may impact the effectiveness of the Fund's currency hedging strategy.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Japanese securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Japan's economy may be subject to considerable degrees of economic, political and social instability, which could have a negative impact on Japanese securities. The Japanese economy is heavily dependent on international trade, oil and other commodity imports and consistent government policy supporting its export market. Changes in governmental regulations on trade, decreasing imports or exports, and/or an economic recession in Japan may cause the value of the Fund's investments to decline. Downturns in the economies of key trading partners such as the United States, China and/or countries in Southeast Asia, including economic, political or social instability in such countries, could also have a negative impact on the Japanese economy as a whole. Currency fluctuations may also adversely impact the Japanese economy, including its export market. Significant public debt and deficits may have a negative effect on economic growth prospects. In addition, Japan’s labor market is adapting to an aging workforce, declining population, and demand for increased labor mobility. These demographic shifts and fundamental structural changes to the labor market may negatively impact Japan’s economic competitiveness. Japan is also subject to the risk of natural disasters, such as earthquakes, volcanic eruptions, typhoons and </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">tsunamis, which could significantly disrupt economic activity and negatively affect the Fund.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Calculation Methodology:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> FTSE Russell relies on various sources of information to assess the criteria of issuers included in the FTSE Japan Capped Hedged Index, including information that may be based on assumptions and estimates. Neither the Fund nor the investment manager can offer assurances that FTSE Russell's calculation methodology or sources of information will provide an accurate assessment of included issuers or that the included issuers will provide the Fund with the market exposure it seeks.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Index-Related:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no assurance that the FTSE Japan Capped Hedged Index will be determined, composed or calculated accurately. While FTSE Russell provides descriptions of what the FTSE Japan Capped Hedged Index is designed to achieve, FTSE Russell does not guarantee the quality, accuracy or completeness of data in respect of its indices, and does not guarantee that the FTSE Japan Capped Hedged Index will be in line with the described index methodology. Errors in index data, index computations or the construction of the FTSE Japan Capped Hedged Index in accordance with its methodology (including as a result of outdated, unreliable or unavailable market information) may occur and may not be identified and corrected by the index provider for a period of time or at all, which may have an adverse impact on the Fund and its shareholders. Gains, losses or costs to the Fund caused by errors in the FTSE Japan Capped Hedged Index may therefore be borne by the Fund and its shareholders.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Correlation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There is no guarantee that the Fund will achieve a high degree of correlation to the FTSE Japan Capped Hedged Index and therefore achieve its </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">investment goal. Market disruptions and regulatory restrictions could have an adverse effect on the Fund’s ability to adjust its exposure to the required levels in order to track the FTSE Japan Capped Hedged Index. In addition, the Fund’s NAV may deviate from the FTSE Japan Capped Hedged Index if the Fund fair values a portfolio security at a price other than the price used by the FTSE Japan Capped Hedged Index for that security. To the extent that the investment manager uses a representative sampling strategy, the Fund may not track the return of the FTSE Japan Capped Hedged Index as well as it would have if the Fund held all of the securities in the FTSE Japan Capped Hedged Index.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Tracking Error:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Tracking error is the divergence of the Fund's performance from that of the FTSE Japan Capped Hedged Index. Tracking error may occur because of differences between the securities held in the Fund's portfolio and those included in the FTSE Japan Capped Hedged Index, pricing differences (including differences between a security's price at the local market close and the Fund's valuation of a security at the time of calculation of the Fund's NAV), differences in transaction and hedging costs and forward rates achieved, the Fund's holding of cash, differences in timing of the accrual of dividends or interest, tax gains or losses, changes to the FTSE Japan Capped Hedged Index or the need to meet various new or existing regulatory requirements, including portfolio diversification requirements imposed by the Internal Revenue Code of 1986 (the "Code") applicable to regulated investment companies. In addition, certain regulatory or contractual requirements applicable to the Fund's use of derivatives could prevent the Fund from being able to fully replicate the hedge impact incorporated in the calculation of the FTSE Japan Capped Hedged Index, which could result in increased index tracking error. These risks may be heightened during times of increased market volatility or other unusual market conditions. Tracking error also may result because the Fund incurs fees and expenses, while the FTSE Japan Capped Hedged Index does not, and because the Fund accepts creations and redemptions during time periods between which it is able to adjust its currency hedges, whereas the FTSE Japan Capped Hedged Index does not adjust its hedging during these periods.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Industrials companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The stock prices of companies in the industrials sector are affected by supply and demand both for their specific product or service and for industrials sector products in general. Companies in the industrials sector may be adversely affected by changes in government regulation, world events and economic conditions. In addition, these companies are at risk for environmental damage and product liability claims. Companies in this sector could be adversely affected by commodity price volatility, changes in exchange rates, imposition of export or import controls, increased competition, depletion of resources, technological developments and labor relations.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Change in Diversification Status:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In seeking to track the FTSE Japan Capped Hedged Index, the Fund may become non-diversified as a result of a change in relative market capitalization or index weighting of one or more constituents of the FTSE Japan Capped Hedged Index. In such circumstances, the Fund may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund’s performance and result in greater fluctuation in the value of the Fund’s shares and greater risk of loss.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments (including currency derivatives) depends largely on the performance of an underlying </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">currency, security, interest rate or index, and such derivatives often have risks similar to the 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 significantly exceeds the Fund’s initial investment. Other risks include illiquidity, mispricing or improper valuation of the derivative, and imperfect correlation between the value of the derivative and the underlying instrument so that the Fund may not realize the intended benefits and may experience increased tracking error. Their successful use will usually depend on the investment manager’s ability to accurately forecast movements in the market relating to the underlying instrument. Should a market or markets, or prices of particular classes of investments move in an unexpected manner, especially in unusual or extreme market conditions, the Fund may not realize the anticipated benefits of the transaction, and it may realize losses, which could be significant. If the investment manager is not successful in using such derivative instruments, the Fund’s performance may be worse than if the investment manager did not use such derivatives at all. When a derivative is used for hedging, the change in value of the derivative may also not correlate specifically with the currency, security, interest rate, index or other risk being hedged. Derivatives also may present the risk that the other party to the transaction will fail to perform. There is also the risk, especially under extreme market conditions, that a derivative, which usually would operate as a hedge, provides no hedging benefits at all.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Passive Investment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike many investment companies, the Fund is not actively managed and the investment manager does not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the investment manager would not necessarily buy or sell a security unless that security is added or removed, respectively, from the FTSE Japan Capped Hedged Index, even if that security generally is underperforming.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance and the Fund's underlying index. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;"> </p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2024, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">18.93%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-17.02%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 21.49%.</p></td></tr></table> Best Quarter 2024-03-31 0.1893 Worst Quarter 2020-03-31 -0.1702 As of June 30, 2026, the Fund’s year-to-date return was 21.49%. 2026-06-30 0.2149 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.2925 0.1958 0.1351 Return after taxes on distributions 0.2580 0.1518 0.1095 Return after taxes on distributions and sale of Fund shares 0.1797 0.1377 0.0997 FTSE Japan Index-NR (JPY) (JPY) (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) 0.2530 0.0659 0.0666 FTSE Japan Capped Hedged Index-NR 0.2920 0.1957 0.1355 2026-08-01 Franklin Multisector Income ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To seek to provide a high level of current income. Capital appreciation over the long term is a secondary goal.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0039 0 0.0000 0.0039 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 40 126 220 494 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 period from August 26, 2025 (commencement of operations) to March 31, 2026, the Fund's portfolio turnover rate was 103% of the average value of its portfolio.</p> 1.03 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests in a diversified portfolio of U.S. and foreign debt securities across multiple fixed income sectors. Debt securities include all varieties of fixed, variable and floating rate income securities, including bonds, U.S. and foreign government and agency securities, corporate loans (and loan participations) and mortgage-backed securities and other asset-backed securities. “Multisector Income” in the Fund’s name refers to the Fund’s strategy of seeking to maximize current income by allocating portfolio investments opportunistically across different fixed income market sectors. The debt securities in which the Fund invests include all varieties of fixed, floating and variable rate instruments, including secured and unsecured bonds, senior floating rate and term loans, mortgage-backed securities and other asset-backed securities, debentures, and shorter-term instruments.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in many different securities issued or guaranteed by the U.S. government or by non-U.S. governments, or their respective agencies or instrumentalities, including mortgage-backed securities and inflation-indexed securities issued by the U.S. Treasury.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Mortgage-backed securities represent an interest in a pool of mortgage loans made by banks and other financial institutions to finance purchases of homes, commercial buildings and other real estate. The individual mortgage loans are packaged or “pooled” together for sale to investors. As the underlying mortgage loans are paid off, investors receive principal and interest payments. These securities may be fixed-rate or adjustable-rate mortgage-backed securities (ARMS). The Fund also invests in other types of mortgage securities that may be issued or guaranteed by private issuers including commercial mortgage-backed securities (CMBS), collateralized mortgage obligations (CMOs) and residential mortgage-backed securities (RMBS).</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may purchase or sell mortgage-backed securities on a delayed delivery or forward commitment basis through the “to-be-announced” (TBA) market. With TBA transactions, the particular securities to be delivered must meet specified terms and standards. The Fund may invest in mortgage dollar rolls. In a mortgage dollar roll, the Fund sells (or buys) mortgage securities for delivery on a specified date and simultaneously contracts to repurchase (or sell) substantially similar (same type, coupon, and maturity) securities on a future date.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in asset-backed securities. An asset-backed security is a security backed by loans, leases, and other receivables. The Fund may invest in collateralized debt obligations (CDOs), including collateralized loan obligations (CLOs).</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest without limit in developing or emerging markets. Bonds may be denominated and issued in the local currency or in another currency.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in debt securities of any maturity or duration, and the average maturity or duration of debt securities in the Fund’s portfolio will fluctuate depending on the investment manager’s outlook on changing market, economic, and political conditions. The Fund may also invest a portion of its assets in cash or cash equivalents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in debt securities that are rated below investment grade (also known as “junk bonds”). The Fund may buy both rated and unrated debt securities, including securities rated below B by S&amp;P^® Global Ratings (S&amp;P) or Moody's Ratings (Moody's) (or deemed comparable by the Fund’s investment manager).</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund shifts its investments among various categories of debt securities (for example, government, corporate, securitized or asset backed debt) and at any given time may have a substantial amount of its assets invested in any category of debt security.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">For purposes of pursuing its investment goals, the Fund may, from time to time, use a variety of interest rate and credit-related derivatives, including interest rate, fixed income total return and credit default swaps and interest rate and/ or bond futures contracts and related options. The Fund also may, from time to time, use various currency-related derivatives, including currency and cross currency forwards, currency swaps, currency futures contracts and currency options. The use of these derivative transactions may allow the Fund to obtain net long or net short exposures to selected currencies, interest rates, countries, durations or credit risks. These derivative instruments may also be used for hedging purposes, to enhance Fund returns or to obtain exposure to various market sectors.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In choosing investments for the Fund, the investment manager selects securities in various market sectors based on its assessment of changing economic, market, industry and issuer conditions. The investment manager uses a “top-down” analysis of macroeconomic trends, combined with a “bottom-up” fundamental analysis of market sectors, industries and issuers, to try to take advantage of varying sector reactions to economic events. The investment manager may consider selling a security when it believes the security has become fully valued due to either its price appreciation or changes in the issuer’s fundamentals, or when the investment manager believes another security is a more attractive investment opportunity.</p> Under normal market conditions, the Fund invests in a diversified portfolio of U.S. and foreign debt securities across multiple fixed income sectors. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x14"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">High-Yield Debt Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Issuers of lower-rated or “high-yield” debt instruments (also known as “junk bonds”) and lower-rated or high yield loans are not as strong financially as those issuing higher credit quality debt instruments. High-yield debt instruments are generally considered predominantly speculative by the applicable rating agencies as their issuers are more likely to encounter financial difficulties because they may be more highly leveraged, or because of other considerations. In addition, high yield debt instruments generally are more vulnerable to changes in the relevant economy, such as a recession or a sustained period of rising interest rates, that could affect their ability to make interest and principal payments when due. The prices of high-yield debt instruments generally fluctuate more than those of higher credit quality. High-yield debt instruments are generally more illiquid (harder to sell) and harder to value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. Other risks include illiquidity, mispricing or improper valuation of the derivative instrument, and imperfect </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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, interest rate, 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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mortgage Securities and Asset-Backed Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Mortgage securities differ from conventional debt securities because principal is paid back periodically over the life of the security rather than at maturity. The Fund may receive unscheduled payments of principal due to voluntary prepayments, refinancings or foreclosures on the underlying mortgage loans. Because of prepayments, mortgage securities may be less effective than some other types of debt securities as a means of "locking in" long-term interest rates and may have less potential for capital appreciation during periods of falling interest rates. A reduction in the anticipated rate of principal prepayments, especially during periods of rising interest rates, may increase or extend the effective maturity and duration of mortgage securities, making them more sensitive to interest rate changes, subject to greater price volatility, and more susceptible than some other debt securities to a decline in market value when interest rates rise.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Developing Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Sovereign Debt Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Sovereign debt securities are subject to various risks in addition to those relating to debt securities and foreign investments generally, including, but not limited to, the risk that a governmental entity may be unwilling or unable to pay interest and repay principal on its sovereign debt, or otherwise meet its obligations when due because of cash flow problems, insufficient foreign reserves, the relative size of the debt service burden to the economy as a whole, the government’s policy towards principal international lenders such as the International Monetary Fund, or the political considerations to which the government may be subject. If a sovereign debtor defaults (or threatens to default) on its sovereign debt obligations, the indebtedness may be restructured. Some sovereign debtors have in the past been able to restructure their debt payments without the approval of some or all debt holders or to declare moratoria on payments. In the event of a default on sovereign debt, the Fund may also have limited legal recourse against the defaulting government entity.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Prepayment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Extension:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Some debt securities are subject to the risk that the debt security’s effective maturity is extended because calls or prepayments are less or slower than anticipated, particularly when interest rates rise. The market value of such security may then decline and become more interest rate sensitive. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Collateralized Debt Obligations (CDOs):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The risks of an investment in a CDO, a type of asset backed security, and which includes collateralized loan obligations, depend largely on the type of collateral held by the special purpose entity (SPE) and the tranche of the CDO in which the Fund invests and may be affected by the </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">performance of a CDO's collateral manager. CDOs may be deemed to be illiquid and subject to the Fund’s restrictions on investments in illiquid investments. In addition to the normal risks associated with debt securities and asset backed securities (e.g., interest rate risk, credit risk and default risk), CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or quality or go into default or be downgraded; (iii) the Fund may invest in tranches of a CDO that are subordinate to other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment. These risks are amplified in tranches of CDOs that are subordinate to other tranches.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Inflation-Indexed Securities</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Inflation-indexed securities have a tendency to react to changes in real interest rates. Real interest rates represent nominal (stated) interest rates lowered by the anticipated effect of inflation. In general, the price of an inflation-indexed security decreases when real interest rates increase, and increases when real interest rates decrease. Interest payments on inflation-indexed securities will fluctuate as the principal and/or interest is adjusted for inflation and can be unpredictable. Any increase in the principal amount of an inflation-protected debt security will be considered taxable ordinary income, even though investors, such as the Fund, do not receive their principal until maturity.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Floating Rate Corporate Investments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Floating rate corporate loans and corporate debt securities generally have credit ratings below investment grade and may be subject to resale restrictions. They are often issued in connection with highly leveraged transactions, and may be subject to greater credit risks than other investments including the possibility of default or bankruptcy. In addition, a secondary market in corporate loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods, which may impair the ability to accurately value existing and prospective investments and to realize in a timely fashion the full value upon the sale of a corporate loan. A significant portion of floating rate investments may be “covenant lite” loans that may contain fewer or less restrictive constraints on the borrower or other borrower-friendly characteristics.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Variable Rate Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because changes in interest rates on variable rate securities (including floating rate securities) may lag behind changes in market rates, the value of such securities may decline during periods of rising interest rates until their interest rates reset to market rates. During periods of declining interest rates, because the interest rates on variable rate securities generally reset downward, their market value is unlikely to rise to the same extent as the value of comparable fixed rate securities.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">When-Issued and Delayed Delivery Transactions</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Mortgage-backed securities may be issued on a when-issued or delayed delivery basis, where payment and </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">delivery take place at a future date. Because the market price of the security may fluctuate during the time before payment and delivery, the Fund assumes the risk that the value of the security at delivery may be more or less than the purchase price.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mortgage Dollar Rolls:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> In a mortgage dollar roll, the Fund takes the risk that: the market price of the mortgage-backed securities will drop below their future repurchase price; the securities that it repurchases at a later date will have less favorable market characteristics; the other party to the agreement will not be able to perform; the roll adds leverage to the Fund's portfolio; and, it increases the Fund's sensitivity to interest rate changes. In addition, investment in mortgage dollar rolls may increase the portfolio turnover rate for the Fund.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Inflation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The market price of debt securities generally falls as inflation increases because the purchasing power of the future income and repaid principal is expected to be worth less when received by the Fund. Debt securities that pay a fixed rather than variable interest rate are especially vulnerable to inflation risk because variable-rate debt securities may be able to participate, over the long term, in rising interest rates which have historically corresponded with long-term inflationary trends.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Liquidity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">  The trading market for a particular security or type of security or other investments in which the Fund invests may become less liquid or even illiquid. Reduced liquidity will have an adverse impact on the Fund’s ability to sell such securities or other investments when necessary to meet the Fund’s liquidity needs or in response to a specific economic event and will also generally lower the value of a security or other investments. Market prices for such securities or other investments may be volatile.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash/Cash Equivalents: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To the extent the Fund holds cash or cash equivalents rather than securities in which it primarily invests or uses to manage risk, the Fund may not achieve its investment objectives and may underperform.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Unrated Debt Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain unrated debt securities determined by the investment manager to be of comparable credit quality to rated securities which the Fund may purchase may pay a higher interest rate than such rated debt securities and be subject to a greater risk of illiquidity or price changes. Less public information and independent credit analysis are typically available about unrated securities or issuers, and therefore they may be subject to greater risk of default.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions entirely for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </p> franklintempleton.com (800) DIAL BEN/342-5236 The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. FRANKLIN FTSE RUSSIA ETF 2026-08-01 Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The stated investment goal is to seek to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Russia RIC Capped Index (the FTSE Russia Capped Index or Underlying Index). However, due to the discontinuation of the Underlying Index and the ongoing restrictions relating to Russian securities, the Fund will be unable to meet its investment goal. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">The Fund is in the process of liquidating its assets and winding up its business pursuant to a plan of liquidation. </span></p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses of the Fund during the liquidation of its portfolio.</p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0019 0 0.0000 0.0019 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 19 60 105 241 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 0.00% of the average value of its portfolio.</p> 0.0000 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund formerly sought to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE Russia Capped Index. The Underlying Index was discontinued by the index provider, FTSE Russell, on February 28, 2024. The Fund is currently prevented by Russian law and U.S. economic sanctions from selling its portfolio securities and from repatriating the proceeds of any such sale in U.S. dollars. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Effective March 1, 2022, the Fund suspended new creations of its shares effective until further notice in light of market closures and trading restrictions on Russian securities arising from the war between Russia and Ukraine. In addition, prior to market open on March 4, 2022, NYSE Arca, Inc., the Fund’s primary listing exchange at the time (“NYSE Arca”), halted trading of the Fund’s shares. Additionally, the value and liquidity of Russian securities experienced significant sustained declines due to the circumstances related to the conflict. As a result, the Fund fair valued all Russian equity securities at $0 (as of July 10, 2026, such securities continue to be fair valued at $0). Accordingly, as of July 10, 2026, the Fund's portfolio was comprised of Russian equity securities (fair valued at $0 as noted above) and USD cash.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">On July 20, 2022, the Board of Trustees (the “Board”) of the Franklin Templeton ETF Trust (the “Trust”) unanimously voted to close and liquidate the Fund, contingent on receiving any necessary relief from the U.S. Securities and Exchange Commission (“SEC”). On December 23, 2022, the SEC granted exemptive relief to the Fund permitting the Fund to suspend the right of redemption with respect to shares of the Fund and, if necessary, postpone the date of payment of redemption proceeds with respect to redemption orders received but not yet paid until the Fund completes the liquidation of its portfolio and distributes all its assets to remaining shareholders. The Fund was delisted from NYSE Arca effective December 27, 2022. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The Fund is in the process of liquidating its assets and winding up its business pursuant to a plan of liquidation. The Fund may make one or more liquidating distributions. It is possible that the liquidation of the Fund will take an extended period of time if circumstances involving Russian securities do not improve. While the Fund is in the process of liquidating its portfolio, the Fund will continue to hold cash and securities that may not be consistent with the Fund’s investment goal and strategies. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:underline;">Furthermore, because of the delisting of the Fund’s shares by </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:underline;">NYSE Arca and the pending liquidation of the Fund, the Fund is no longer an exchange-traded fund, and we do not anticipate that there will be a trading market for your shares.</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Upon payment of the final liquidating distribution, it is anticipated that the Fund will be terminated. </span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may be terminated at any time, at the discretion of the Board, even if not all of the Russian securities in the Fund’s portfolio have been sold. Due to the uncertainty involved, there can be no assurance that shareholders will receive any liquidating distribution relating to any unsold Russian securities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund is currently operating pursuant to a plan of liquidation filed with the SEC, which provides that, pending liquidating distributions, the Fund will invest proceeds of cash dispositions of portfolio securities solely in U.S. government securities, money market funds that are registered under the Investment Company Act of 1940 (“1940 Act”) and comply with the requirements of Rule 2a-7 under the 1940 Act, cash equivalents, securities eligible for purchase by a registered money market fund meeting the requirements of Rule 2a-7 under the 1940 Act with legal maturities not in excess of 90 days and, if determined to be necessary to protect the value of a portfolio position in a rights offering or other dilutive transaction, additional securities of the affected issuer.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund is a "non-diversified" fund, which means it generally invests a greater proportion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund’s stated industry concentration policy is to concentrate its investments (i.e., hold 25% or more of its net assets) in a particular industry or group of industries to approximately the same extent that the FTSE Russia Capped Index is concentrated. However, due to the discontinuation of the Underlying Index and ongoing restrictions relating to Russian securities, the Fund will be unable to follow its industry concentration policy.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Please consult the Fund’s website for future updates about the Fund and the status of the liquidation. If you have any questions, please call (800) DIAL BEN</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">/342-5236.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x15"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">You could lose money by investing in the Fund. Fund 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 Fund’s net asset value (NAV) and ability to liquidate its portfolio. Due to the discontinuation of the FTSE Russia Capped Index and the ongoing restrictions relating to Russian securities, the Fund will be unable to meet its investment goal or pursue its prior principal investment </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">strategies. It is possible that the liquidation of the Fund will take an extended period of time if circumstances involving Russian securities do not improve. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">Furthermore, because of the delisting of the Fund’s shares by NYSE Arca and the liquidation of the Fund, the Fund is no longer an exchange-traded fund and it is unlikely that there will be a trading market for your shares. In addition, creations and redemptions of Fund shares have been halted.</span></p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Risks Related to Russia’s Invasion of Ukraine:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Russia’s military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the continued conflict, has increased volatility and uncertainty in the financial markets and adversely affected the Fund. The United States and other countries and certain international organizations have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to Russia’s invasion of Ukraine. These sanctions froze certain Russian assets and prohibited, among other things, trading in certain Russian securities and doing business with specific Russian corporate entities, large financial institutions, officials and oligarchs. The sanctions also included the removal of some Russian banks from the Society for Worldwide Interbank Financial Telecommunications (SWIFT), the electronic network that connects banks globally, and imposed restrictive measures to prevent the Russian Central Bank from undermining the impact of the sanctions. A number of large corporations and U.S. states also announced plans to divest interests or otherwise curtail business dealings with certain Russian businesses. In response, the government of Russia imposed capital controls to restrict movements of capital entering and exiting the country. These sanctions and any additional sanctions or other intergovernmental actions that may be undertaken against Russia may result in the devaluation of the Russian currency and a downgrade in the country’s credit rating. Ongoing developments related to the war have caused and may continue to cause severe sustained declines in the value and liquidity of Russian securities. As a result, the Fund’s ability to price, buy, sell, receive or deliver Russian investments has been severely impaired. For example, the Fund may be prohibited from investing in or acquiring securities issued by companies subject to such sanctions. In addition, the sanctions may require the Fund to freeze its existing investments in companies operating in or conducting business dealings with Russia, which would prevent the Fund from selling or delivering these investments. Further, any exposure that the Fund may have to Russian counterparties could negatively impact the Fund’s portfolio. The liquidation of Fund assets during this time may also result in the Fund receiving substantially lower prices for its securities. The extent and duration of Russia’s military actions and the repercussions of such actions are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events have adversely affected the value and liquidity of the Fund’s holdings and may continue to significantly impair the Fund’s </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">performance and the value of an investment in the Fund. These as well as any other consequences to Russia, such as additional sanctions, boycotts or changes in consumer or purchaser preferences or cyberattacks on the Russian government, companies or individuals, along with any retaliatory actions or countermeasures that may be taken by Russia (including cyberattacks on other governments, corporations or individuals), may further decrease the value and liquidity of Russian securities. Additionally, due to current and potential future sanctions or market closures impacting the ability to trade or transfer Russian securities, the Fund may experience higher transaction costs. During this time, the Fund will not meet its investment goal. These circumstances could also have adverse tax, regulatory or financial impacts and/or other consequences to the Fund. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Illiquid Investments: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">As a result of the current conditions related to Russian securities and Russian markets, the Fund is unable to dispose of the Russian securities in its portfolio and the Fund's portfolio has become illiquid. It is unknown when current restrictions will be lifted. In the event that it becomes possible to dispose of Russian securities, other market participants may attempt to liquidate holdings at the same time as the Fund, and the Fund may be unable to transact at advantageous times or prices.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Geographic Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund may invest a significant portion of its assets in companies in a specific country and region, the Fund is subject to greater risks of adverse developments in that country, region and/or the surrounding regions than a fund that is more broadly diversified geographically. Political, social or economic disruptions in the country or region, even in countries in which the Fund is not invested, may adversely affect the value of investments held by the Fund. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Investing in Russian securities involves significant risks, including legal, regulatory, currency and economic risks that are specific to Russia. In addition, investing in Russian securities involves risks associated with the settlement of portfolio </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">transactions and loss of the Fund’s ownership rights in its portfolio securities as a result of the system of share registration and custody in Russia. Moreover, trading on securities markets in Russia may be suspended altogether, which may adversely affect the value of investments in Russian securities. A number of countries have imposed economic sanctions on certain Russian individuals and Russian corporate entities. Current or future sanctions, or even the threat of further sanctions, may adversely affect Russia’s economy and the Fund’s investments.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">As a result of increasing isolation from global commerce, there may be a greater risk of systemic economic shock in Russia. In addition, the Russian government may impose further restrictions or punitive taxes on foreign investments in securities of issuers located or operating in Russia, seek to exert additional control over strategically significant market segments or the domestic economy generally, or pursue other protectionist policy measures that impair the value of investments in Russian issuers. Investors such as the Fund may have little or no recourse with respect to losses resulting from these actions. Many companies that are tied economically to Russia are not subject to accounting, auditing and financial reporting standards or to other regulatory requirements applicable to U.S. companies and as a result available financial information concerning Russian issuers may be less reliable and may not be prepared and audited in accordance with U.S. or Western European generally accepted accounting principles and auditing standards. These factors, among others, make investing in issuers located or operating in Russia significantly riskier than investing in issuers located or operating in more developed countries.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying securities in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund has been delisted by NYSE Arca and has entered liquidation. The Fund is no longer an exchange-traded fund, and it is unlikely that there will be a trading market for your shares. In addition, creations and redemptions of Fund shares have been halted.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Valuation:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The price the Fund could receive upon the sale of a security or other asset may differ from the Fund’s valuation of the security or other asset, particularly for securities or other assets that trade in low volume or volatile markets or that are valued using a fair value methodology as a result of trade suspensions or for other reasons. The Fund’s ability to value investments may be impacted by technological issues or errors by pricing services or other third-party service providers. DUE TO INABILITY TO TRADE RUSSIAN SECURITIES, THE FUND’S ASSETS ARE VALUED USING A FAIR VALUE METHODOLOGY. THE ACTUAL PRICE RECEIVED BY THE FUND FOR ITS ASSETS MAY DIFFER SUBSTANTIALLY FROM THE FAIR VALUE ASSIGNED TO SUCH ASSETS.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Due to the discontinuation of the Underlying Index and ongoing restrictions relating to Russian securities, the Fund will be unable to follow its industry concentration policy. To the extent the Fund concentrates in a specific industry, a group of industries, sector or type of investment, the Fund will carry much greater risks of adverse developments and price movements in such industries, sectors or investments than a fund that invests in a wider variety of industries, sectors or investments. There is also the risk that the Fund will perform poorly during a slump in demand for securities of companies in such industries or sectors.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may focus in the oil, gas and consumable fuels industry. The profitability of companies in the oil, gas and consumable fuels industry may be affected adversely by changes in worldwide energy prices, exploration and production spending. Changes in economic conditions, government regulation and events in the regions in which the companies operate (e.g., expropriation, nationalization, confiscation of assets and property or the imposition of restrictions on foreign investments and repatriation of capital, military coups, social unrest, violence or labor unrest, and terrorism and natural disasters) also affect companies in this industry. In addition, these companies are at risk for environmental damage claims. Companies in this industry could be adversely affected by commodity price volatility, changes in exchange rates, interest rates, imposition of import controls, increased competition, depletion of resources, development of alternative energy sources, energy conservation efforts, technological developments and labor relations. Companies in the oil, gas and consumable fuels industry may have significant capital investments in, or engage in transactions involving, emerging market countries, which may heighten these risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Diversification:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">issuers or investments than a diversified fund, which may negatively impact the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of the Fund's Underlying Index. The Fund’s performance is shown for certain periods prior to it entering liquidation. FTSE Russell previously suspended rebalancings/reconstitutions of the Underlying Index, including application of the capping methodology, as well as other index policies in March of 2022. The Underlying Index was discontinued on February 28, 2024. The Underlying Index’s performance is shown for certain periods prior to its rebalancings/reconstitutions being suspended. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future.</p> The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2020, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">23.53%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2022, Q1</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-100.00%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 0.00%.</p></td></tr></table> Best Quarter 2020-12-31 0.2353 Worst Quarter 2022-03-31 -1.0000 As of June 30, 2026, the Fund’s year-to-date return was 0.00%. 2026-06-30 0.0000 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0000 -1.0000 -1.0000 Return after taxes on distributions 0.0000 -0.7895 -0.6190 Return after taxes on distributions and sale of Fund shares 0.0000 -0.2426 -0.1478 FTSE Russia Capped Index-NR (index reflects no deduction for fees, expenses or taxes but are net of dividend tax withholding) -0.0206 -0.0371 2026-08-01 Putnam International Stock ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Capital appreciation.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0055 0 0.0000 0.0055 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 56 176 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 period from October 21, 2025 (commencement of operations) to March 31, 2026, the Fund's portfolio turnover rate was 21% of the average value of its portfolio.</p> 0.21 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to equity securities. Equity securities include common and preferred stocks and related depositary receipts, securities of other investment companies, including exchange traded funds (ETFs), as well as equity-related instruments and other investments with similar economic characteristics. The Fund may also invest in equity-linked notes (ELNs).</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund predominantly invests in equity securities of large and midsize companies located outside of the U.S., including companies located in developed and emerging markets. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund maintains the flexibility to invest in securities of companies from a variety of countries and sectors, but from time to time, based on economic conditions, the Fund may have significant investments in one or more countries or in particular sectors.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may also use derivatives, such as certain foreign currency transactions, futures, options, warrants and swap contracts, for both hedging and non-hedging purposes. For example, the Fund may use foreign currency forward contracts in connection with its investments in foreign securities in order to hedge the Fund’s currency exposure. The investment manager considers various factors, such as availability and cost, in deciding whether to use a particular derivative instrument or strategy. Moreover, investors should bear in mind that the Fund is not obligated to actively engage in any derivative transactions. The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">In determining whether to buy or sell securities for the Fund’s portfolio, the investment manager considers, among other factors, a company’s valuation, financial strength, growth potential, competitive position in its industry, projected future earnings, cash flows and dividends. The investment manager may also consider other factors that it believes may cause the price of a stock held in the </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Fund’s portfolio to rise in seeking to identify investment opportunities that the investment manager believes have favorable investment potential.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund is “non-diversified,” which means it may invest a greater percentage of its assets in fewer issuers than a “diversified” fund.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to equity securities. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to equity securities Equity securities include common and preferred stocks and related depositary receipts, securities of other investment companies, including exchange traded funds (ETFs), as well as equity-related instruments and other investments with similar economic characteristics. The Fund may also invest in equity-linked notes (ELNs). <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x16"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different risks than investing in U.S. securities, and includes risks associated with: </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">(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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Developing Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, mid capitalization 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. The markets for securities issued by mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Large capitalization companies may fall out of favor with investors based on market and economic conditions. Large capitalization companies may underperform relative to small and mid capitalization companies because they may be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes, and may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Investment Company Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The 1940 Act imposes limitations on investments in the securities of investment companies, including ETFs. These restrictions may limit the Fund's ability to invest in other investment companies to the extent desired. To the extent that the Fund invests in another investment company, because other investment companies pay advisory, administrative and service fees that are borne indirectly by investors, such as the Fund, there may be duplication of investment management and other fees.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. 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, interest rate, 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Equity-Linked Notes (ELNs):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in ELNs often have risks similar to their underlying securities or index, which could include management risk, market risk and, as applicable, foreign securities and currency risks. In addition, since ELNs are in note form, ELNs are also subject to certain debt securities risks, such as interest rate and credit risks. Should the prices of the underlying securities or index move in an unexpected manner, the Fund may not achieve the anticipated benefits of an investment in an ELN, and may realize losses, which could be significant and could include the Fund’s entire principal investment. An investment in an ELN is also subject to counterparty risk, which is the risk that the issuer of the ELN will default or become bankrupt and the Fund will have difficulty being repaid, or fail to be repaid, the principal amount of, or income from, its investment. Investments in ELNs are also subject to liquidity risk, which may make ELNs difficult to sell and value. In addition, ELNs may exhibit price behavior that does not correlate with their underlying securities, index or a fixed-income investment.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Diversification:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </p> franklintempleton.com (800) DIAL BEN/342-5236 The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. 2026-08-01 Templeton International Insights ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Long-term capital growth.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0055 0 0.0000 0.0055 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 56 176 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 period from October 21, 2025 (commencement of operations) to March 31, 2026, the Fund's portfolio turnover rate was 20% of the average value of its portfolio.</p> 0.20 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Under normal market conditions, the Fund invests at least 80% of its net assets in foreign (non-U.S.) equity securities. The Fund predominantly invests in companies located outside the U.S., including companies located in developing market countries.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in equity securities of any size company, across the entire market capitalization spectrum, including smaller and midsize companies. The equity securities in which the Fund primarily invests are common stock and depositary receipts. The Fund maintains the flexibility to invest in securities of companies from a variety of countries and sectors, but from time to time, based on economic conditions, the Fund may have significant investments in one or more countries or in particular sectors.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund is a “non-diversified” fund, which means it generally invests a greater portion of its assets in the securities of one or more issuers and invests overall in a smaller number of issuers than a diversified fund.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">When choosing equity investments for the Fund, the investment manager applies a “bottom-up”, long-term approach, focusing on the market price of a company’s securities relative to the investment manager’s evaluation of the company’s long-term earnings, asset value and cash flow potential. The investment manager takes a global and integrated approach, searching for opportunities across developed and emerging markets, and across the capitalization spectrum. As part of its research in selecting securities for the Fund, the investment manager considers a company’s valuation, quality and growth prospects, and seeks to identify those companies that offer above-average opportunities for capital appreciation in various countries and industries where economic and political factors, including currency movements, are favorable to capital growth. In constructing the Fund’s portfolio, the investment manager seeks to build a portfolio that is primarily driven by stock specifics and is resilient across market cycles.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The investment manager may consider selling a security when it believes the security has become overvalued due to either its price appreciation or changes in </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">the company’s fundamentals, or when the investment manager believes another security is a more attractive investment opportunity.</p> Under normal market conditions, the Fund invests at least 80% of its net assets in foreign (non-U.S.) equity securities. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x17"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">stable and more volatile than those in the U.S. or some foreign countries may be subject to trading restrictions or economic sanctions; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Regional:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund invests a significant portion of its assets in a specific geographic region or a particular country, the Fund will generally have more exposure to the specific regional or country risks. In the event of economic or political turmoil or a deterioration of diplomatic relations in a region or country where a substantial portion of the Fund’s assets are invested, the Fund may experience substantial illiquidity or reduction in the value of the Fund’s investments. Adverse conditions in a certain region or country can adversely affect securities of issuers in other countries whose economies appear to be unrelated. </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">European securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investments in securities of European issuers involve risks that are specific to Europe, including certain legal, regulatory, political and economic risks. Political uncertainty surrounding the European Union (EU) and its membership 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. One or more EU member states might exit the EU, placing the European currency and banking system in jeopardy. Efforts of the EU to further unify the economic and monetary policies of its members may increase the potential interdependence of the economies of the EU members and thereby increase the risk that adverse developments in one country will adversely affect the securities of issuers located in other countries.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Current uncertainty concerning the ultimate economic consequences and geopolitical effects of Russia’s military invasion of Ukraine in February 2022 and concerns regarding potential escalation in the region have resulted in increased market volatility.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Developing Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small and Mid Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by small and mid capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, small and mid capitalization 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. The markets for securities issued by small and mid capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Non-Diversification:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because the Fund is non-diversified, it may be more sensitive to economic, business, political or other changes affecting individual issuers or investments than a diversified fund, which may negatively impact the Fund's performance and result in greater fluctuation in the value of the Fund’s shares.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s shares trading at a premium or discount to NAV. Thus, you may pay more (or less) than </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large 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.</span></p> Performance Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </p> franklintempleton.com (800) DIAL BEN/342-5236 The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. WESTERN ASSET BOND ETF 2026-08-01 Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">To maximize total return consistent with prudent investment management and liquidity needs.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0035 0 0.0000 0.0035 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 36 112 196 443 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 336% of the average value of its portfolio. If mortgage dollar roll transactions had been excluded, the Fund's </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">portfolio turnover rate for the most recent fiscal year would have been 247% of the average value of its portfolio.</p> 3.36 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund invests in a portfolio comprised of debt instruments and fixed income securities of various maturities. As used in the Fund’s name, the Fund defines “bonds” as debt and fixed income securities of all types. Under normal market conditions, the Fund will seek its investment objective by investing at least 80% of its net assets, including the amount of borrowing for investment purposes, if any, in debt and fixed income securities (Principal Investments). The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket. As part of its 80% policy, the Fund intends to invest in derivatives that (i) provide exposure to the Principal Investments, (ii) are used to risk manage the Fund’s holdings, and/or (iii) are used to enhance returns. The risk management uses of derivatives will include managing (i) investment-related risks, (ii) risks due to fluctuations in securities prices or interest rates, (iii) risks due to the credit-worthiness of an issuer, and (iv) the effective duration of the Fund’s portfolio.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The types of derivatives in which the Fund will invest include swaps (including interest rate swaps and security-based swaps such as credit default index swaps), futures (including U.S. Treasury futures) and options on futures, swaptions and security options. The Fund may also hold U.S. Treasury securities, cash and cash equivalents. Although the Fund may invest in debt and fixed income securities of any maturity, under normal market conditions, the target dollar-weighted average effective duration for the Fund is expected to range within 20% of the average duration of the domestic bond market as a whole as estimated by the sub-advisor (generally, this range is 3-7 years). Effective duration seeks to measure the expected sensitivity of market price to changes in interest rates, taking into account the anticipated effects of structural complexities (for example, some bonds can be prepaid by the issuer).</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The types of fixed income securities in which the Fund may invest include corporate debt securities, U.S. and non-U.S. government securities, asset-backed securities (“ABS”), mortgage-backed securities (“MBS”) (including commercial MBS (“CMBS”), residential MBS (“RMBS”) and non-agency collateralized mortgage obligations (“CMOs”)), collateralized debt obligations (“CDOs”) and mortgage dollar rolls. The fixed income securities and debt instruments in which the Fund may invest may pay fixed, variable or floating rates of interest. The Fund will not invest more than 10% of the Fund’s total assets in CDOs. The Fund will also not invest </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">more than 20% of its total assets in bank loans including junior loans (e.g., debt instruments that are unsecured and subordinated).</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may also invest in credit-linked securities. Credit-linked securities, which may be considered to be a type of structured investment, are debt securities that represent an interest in a pool of, or are otherwise collateralized by, one or more corporate debt obligations or credit default swaps on corporate debt or bank loan obligations.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest up to 20% of its assets in below investment grade fixed income securities or debt instruments. For these purposes, “investment grade” is defined as investments with a rating at the time of purchase in one of the four highest categories of at least one nationally recognized statistical rating organization (“NRSRO”) (e.g., BBB- or higher or Baa3 or higher) or, if unrated, securities of comparable quality at the time of purchase (as determined by the sub-advisor). Securities rated below investment grade (e.g., BB+ to D or Baa1 to C) or, if unrated, securities of comparable quality at the time of purchase (as determined by the sub-advisor) are commonly known as “junk bonds” or “high yield securities.”</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may invest in securities issued by both U.S. and non-U.S. issuers (including issuers in emerging markets) but the Fund will not invest more than 25% of its total assets in the securities or debt instruments of non-U.S. issuers. The Fund presently intends to limit its investments to U.S. dollar denominated securities.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may engage in active and frequent trading as part of its investment strategies.</p><p style="margin-top:revert; margin-bottom:revert; font-size:12.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The Fund may also hold equity securities of any type acquired in reorganizations of issuers of fixed income securities or debt instruments (“work out securities”), non-convertible preferred securities, warrants and exchange-traded funds (“ETFs”).</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Western Asset’s investment process combines top-down and bottom-up analyses. The Fund’s portfolio managers, with support from a broad investment management team (collectively, the “Investment Professionals”) conduct bottom-up fundamental research and provide input into the top-down perspectives. This top-down view translates into a set of strategies regarding duration, yield curve, country, currency and sector. The Investment Professionals provide fundamental analysis at sector and subsector levels. The Investment Professionals use a security-specific process in order to assess whether securities are mispriced or undervalued in their opinion and select securities for the Fund’s portfolio. The Investment Professionals also conduct an ongoing assessment of changing credit characteristics and of securities with characteristics such as assets perceived to be overlooked or under-appreciated, floating or fixed interest rates, credit quality and securities issued in mergers, as well as newly-issued securities. Using sector and issue analyses, the Investment Professionals select issues opportunistically in order to exploit </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">perceived mispricings versus long-term fundamental value that exist in the market. The subadviser monitors a broad set of factors that may prompt it to consider selling or reducing a position focused on the risk/reward characteristics of a credit.</p> Under normal market conditions, the Fund will seek its investment objective by investing at least 80% of its net assets, including the amount of borrowing for investment purposes, if any, in debt and fixed income securities (Principal Investments) The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket. As part of its 80% policy, the Fund intends to invest in derivatives that (i) provide exposure to the Principal Investments, (ii) are used to risk manage the Fund’s holdings, and/or (iii) are used to enhance returns. The risk management uses of derivatives will include managing (i) investment-related risks, (ii) risks due to fluctuations in securities prices or interest rates, (iii) risks due to the credit-worthiness of an issuer, and (iv) the effective duration of the Fund’s portfolio. <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x18"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Interest Rate:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> When interest rates rise, debt security prices generally fall. The opposite is also generally true: debt security prices rise when interest rates fall. Interest rate changes are influenced by a number of factors, including government policy, monetary policy, inflation expectations, perceptions of risk, and supply of and demand for bonds. In general, securities with longer maturities or durations are more sensitive to interest rate changes. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> An issuer of debt securities may fail to make interest payments or repay principal when due, in whole or in part. Changes in an issuer's financial strength or in a security's or government's credit rating may affect a security's value. Mortgage-backed securities that are not issued by U.S. government agencies may have a greater risk of default because neither the U.S. government nor an agency or instrumentality have guaranteed or provided credit support to them. The credit quality of most asset-backed securities depends primarily on the credit quality of the underlying assets and the amount of credit support (if any) provided to the securities. While securities issued by Ginnie Mae are backed by the full faith and credit of the U.S. government, not all securities of the various U.S. government agencies are, including those of Fannie Mae and Freddie Mac. Also, guarantees of principal and interest payments do not apply to market prices, yields or the Fund’s share price. While the U.S. government has, in the past, provided financial support to Fannie Mae and Freddie Mac, the U.S. government is not obligated by law to do so and no assurance can be given that the U.S. government will do so in the future.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Mortgage Securities and Asset-Backed Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Mortgage securities differ from conventional debt securities because principal is paid back periodically over the life of the security rather than at maturity. The Fund may receive unscheduled payments of principal due to voluntary prepayments, refinancings or foreclosures on the underlying mortgage loans. Because of prepayments, mortgage securities may be less effective than some other types of debt securities as a means of "locking in" long-term interest rates and may have less potential for capital appreciation during periods of falling interest rates. A reduction in the anticipated rate of principal prepayments, especially during periods of rising interest rates, may increase or extend the effective maturity and duration of mortgage securities, making them more sensitive to interest rate changes, subject to greater price volatility, and more susceptible than some other debt securities to a decline in market value when interest rates rise.</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Issuers of asset-backed securities may have limited ability to enforce the security interest in the underlying assets, and credit enhancements provided to support the securities, if any, may be inadequate to protect investors in the event of default. Like mortgage securities, asset-backed securities are subject to prepayment and extension risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. Other risks include illiquidity, mispricing or improper valuation of the derivative instrument, and imperfect correlation </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 security, interest rate, 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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Income:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund's distributions to shareholders may decline when prevailing interest rates fall, when the Fund experiences defaults on debt securities it holds or when the Fund realizes a loss upon the sale of a debt security. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Prepayment:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Prepayment risk occurs when a debt security can be repaid in whole or in part prior to the security's maturity and the Fund must reinvest the proceeds it receives, during periods of declining interest rates, in securities that pay a lower rate of interest. Also, if a security has been purchased at a premium, the value of the premium would be lost in the event of prepayment. Prepayments generally increase when interest rates fall.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Extension:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Some debt securities are subject to the risk that the debt security’s effective maturity is extended because calls or prepayments are less or slower than anticipated, particularly when interest rates rise. The market value of such security may then decline and become more interest rate sensitive. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Emerging Market Countries:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund’s investments in securities of issuers in emerging 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Floating Rate Corporate Investments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Floating rate corporate loans and corporate debt securities generally have credit ratings below investment grade and may be subject to resale restrictions. They are often issued in connection with highly leveraged transactions, and may be subject to greater credit risks than other investments including the possibility of default or bankruptcy. In addition, a secondary market in corporate loans may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods, which may impair the ability to accurately value existing and prospective investments and to realize in a timely fashion the full value upon the sale of a corporate loan. A significant portion of floating rate investments may be “covenant lite” loans that may contain fewer or less restrictive constraints on the borrower or other borrower-friendly characteristics.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Impairment of Collateral:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The value of collateral securing a loan or other corporate debt security may decline after the Fund invests and there is a risk that the value of the collateral may not be sufficient to cover the amount owed to the Fund, or the collateral securing a loan may be found invalid, may be used to pay other outstanding obligations of the borrower under applicable law or may be difficult to sell.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">High-Yield Debt Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Issuers of lower-rated or “high-yield” debt instruments (also known as “junk bonds”) are not as strong financially as those issuing higher credit quality debt instruments. High-yield debt instruments are generally considered predominantly speculative by the applicable rating agencies as their issuers are more likely to encounter financial difficulties because they may be more highly leveraged, or because of other considerations. In addition, high yield debt instruments generally are more vulnerable to changes in the relevant economy, such as a recession or a sustained period of rising interest rates, that could affect their ability to make interest and principal payments when due. The prices of high-yield debt instruments generally fluctuate more than those of higher credit quality. High-yield debt instruments are generally more illiquid (harder to sell) and harder to value. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">When-Issued and Delayed Delivery Transactions</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Mortgage-backed securities may be issued on a when-issued or delayed delivery basis, where payment and delivery take place at a future date. Because the market price of the security may fluctuate during the time before payment and delivery, the Fund assumes the risk </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">that the value of the security at delivery may be more or less than the purchase price.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Credit-Linked Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Credit-linked securities, which may be considered to be a type of structured debt investment, represent an interest in a pool of, or are otherwise collateralized by, one or more reference securities such as corporate debt obligations or credit default swaps thereon or bank loan obligations. The Fund may lose money investing in credit-linked securities if a credit event (for example, a bankruptcy or failure to pay interest or principal or a restructuring) occurs with respect to a reference security, if the underlying securities otherwise perform poorly, or if certain counterparties fail to satisfy their obligations. The market for credit-linked securities may suddenly become illiquid, making it difficult for the Fund to sell such securities promptly at an acceptable price.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Variable Rate Securities:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Because changes in interest rates on variable rate securities (including floating rate securities) may lag behind changes in market rates, the value of such securities may decline during periods of rising interest rates until their interest rates reset to market rates. During periods of declining interest rates, because the interest rates on variable rate securities generally reset downward, their market value is unlikely to rise to the same extent as the value of comparable fixed rate securities.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash/Cash Equivalents: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">To the extent the Fund holds cash or cash equivalents rather than securities in which it primarily invests or uses to manage risk, the Fund may not achieve its investment objectives and may underperform.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Portfolio Turnover:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;"> </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Active and frequent trading may increase a shareholder’s tax liability and the Fund’s transaction costs, which could detract from Fund performance.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. The Fund's sub-advisor 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, the sub-advisor, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">(including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing redeeming shares or receiving distributions. The investment manager and the sub-advisor have limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund, the investment manager or the sub-advisor. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, the sub-advisor, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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 sub-advisor cannot predict whether shares will trade above (premium), below (discount) or at NAV. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">face trading halts and/or delisting. This risk may be more pronounced in volatile markets, potentially where there are significant redemptions in ETFs generally.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cash Transactions:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Unlike certain ETFs, the Fund expects to generally effect its creations and redemptions entirely for cash, rather than for in-kind securities. Therefore, it may be required to sell portfolio securities and subsequently recognize gains on such sales that the Fund might not have recognized if it were to distribute portfolio securities in-kind. As such, investments in Fund shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager or an affiliate of the investment manager or sub-advisor, 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 or sub-advisor, 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.</span></p> Performance <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. 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 www.franklintempleton.com or by calling (800) DIAL BEN/342-5236.</p> The following bar chart and table provide some indication of the risks of investing in the Fund. The bar chart shows changes in the Fund's performance from year to year. The table shows how the Fund's average annual returns for 1 year, 5 years, 10 years or since inception, as applicable, compared with those of a broad measure of market performance. The Fund's past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. franklintempleton.com (800) DIAL BEN/342-5236 Annual Total Returns <table cellpadding="0" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:17.33%;"> </td><td style="width:68%;"> </td><td style="width:14.67%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Best Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2024, Q3</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">5.68%</p></td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">Worst Quarter: </p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">2024, Q4</p></td><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; border-top:0.5pt; border-top-style:solid; border-top-color:#A7A7A7;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:right; font-weight:normal; text-decoration:none;">-3.50%</p></td></tr></table><table cellpadding="2" cellspacing="0" style="border-collapse:collapse" width="100%"><tr style="font-size:1pt;"><td style="width:100%;"> </td></tr><tr><td style="vertical-align:top; border-bottom:0.5pt; border-bottom-style:solid; border-bottom-color:#A7A7A7; font-size:1pt;"><p style="font-size:8.5pt; font-family:Sans-Serif; font-style:normal; text-align:left; font-weight:normal; text-decoration:none;">As of June 30, 2026, the Fund’s year-to-date return was 0.60%.</p></td></tr></table> Best Quarter 2024-09-30 0.0568 Worst Quarter 2024-12-31 -0.0350 As of June 30, 2026, the Fund’s year-to-date return was 0.60%. 2026-06-30 0.0060 Average Annual Total Returns For periods ended December 31, 2025 Return before taxes 0.0781 0.0663 Return after taxes on distributions 0.0534 0.0414 Return after taxes on distributions and sale of Fund shares 0.0458 0.0400 Bloomberg U.S. Aggregate Index (index reflects no deduction for fees, expenses or taxes) 0.0730 0.0611 2026-08-01 Franklin Small Cap Enhanced ETF Investment Goal <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Long-term capital appreciation.</p> Fees and Expenses of the Fund <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:bold; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The following table describes the fees and expenses that you will incur if you buy, hold and sell shares of the Fund. </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:bold; text-decoration:none;">You may also incur other fees, such as usual and customary brokerage commissions and other fees to financial intermediaries, which are not reflected in the table and the Example that follows.</span></p> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0045 0 0.0000 0.0045 Example <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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. Although your actual costs may be higher or lower, based on these assumptions your costs would be:</p> 46 144 Portfolio Turnover <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 period from December 9, 2025 (commencement of operations) to March 31, 2026, the Fund's portfolio turnover rate was 37% of the average value of its portfolio.</p> 0.37 Principal Investment Strategies <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund pursues a multi-style, quantitative investment approach. The security selection process of the Franklin Templeton Investment Solutions team within Franklin Advisers, Inc. ("Advisers") combines a proprietary multi-factor scoring model designed to evaluate securities based on favorable exposure to certain factors, including but not limited to quality, value, sentiment, and alternative factors, with an “alpha signal” (also referred to as the conviction factor). The conviction factor is a proprietary score that leverages a quantitative process to extract individual security conviction rankings derived from portfolio holdings data across a number of actively managed small cap equity accounts/strategies managed by Advisers as well as the following Franklin Templeton specialized investment managers serving as sub-advisors to the Fund: Putnam Investment Management, LLC, Royce &amp; Associates, LP and ClearBridge Investments, LLC (the “sub-advisors”). Royce &amp; Associates, LP primarily conducts its business under the name Royce Investment Partners. As of the date of this Prospectus, ClearBridge Investments, LLC is not currently providing a model portfolio to Advisers for its use in managing the Fund.</p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The proprietary multi-factor scoring model assigns a quantitative factor score for each issuer in the Fund’s investable universe based on that issuer’s factor exposures. Factors are common characteristics that relate to a group of issuers or securities that are important in explaining the returns and risks of those issuers’ securities. The “quality” factor incorporates measurements such as return on equity, earnings variability, cash return on assets and leverage. The “value” factor incorporates measurements such as price to earnings, price to forward earnings, price to book value and dividend yield. The “sentiment” factor incorporates measurements such as 6-month risk adjusted price momentum and 12-month risk adjusted price momentum. The "alternative" factor incorporates measurements such as short interest and option implied volatility from the equity options market. The “conviction” factor incorporates, among other things, relative benchmark weights and contributions to portfolio risk to derive conviction scores within small cap equity accounts/strategies managed by each of the sub-advisors. The factor scores are combined, and each equity security is then further analyzed based on the assigned factor scores, but taking into account certain sector weight limits and security weight constraints, as determined in the discretion of the portfolio management team. The Fund’s portfolio is generally rebalanced/reconstituted on at </p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">least a quarterly basis but may be rebalanced/reconstituted more frequently during certain market conditions, such as periods of high volatility.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of small capitalization companies and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to equity securities of small capitalization companies. Small capitalization companies are those that have a market capitalization not greater than that of the largest company in the Russell 2000</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Index at the time of its most recent reconstitution. The Fund invests predominantly in common stock, but may also invest in preferred stocks, securities convertible into common stocks, and warrants and rights. The Fund invests predominantly in U.S. companies (i.e., U.S. traded companies or companies domiciled, or having their principal activities, in the U.S.), but may invest up to 10% of its total assets in foreign securities, either directly or through depositary receipts.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">The Fund may, from time to time, invest in equity futures (including equity index futures) for various purposes including enhancing Fund returns, increasing liquidity, gaining exposure to particular instruments in more efficient or less expensive ways and/or hedging risks relating to changes in certain equity markets, for example to equitize cash and accrued income (i.e., gain equity market exposure and maintain liquidity until the Fund invests in individual securities). The Fund’s investments in derivative instruments and other investments that provide exposure to the investment focus indicated in the Fund’s 80% policy, or that provide exposure to one or more market risk factors associated with the investment focus indicated in the Fund’s name, are included in the Fund’s 80% basket. </p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The Fund seeks to achieve its investment goal by investing in an “enhanced” equity portfolio comprised of high conviction small cap equity securities selected from the Fund’s investable universe (as represented by the Russell 2000</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">^®</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Index) based on optimized factor exposures pursuant to the proprietary quantitative scoring parameters and constraints described above, which the investment manager utilizes to purchase and sell securities for the Fund. The sub-advisors utilize different investment strategies in providing investment recommendations for their respective strategy segments, act independently from one another, and use their own methodologies for selecting investments. The sub-advisors may employ a fundamental investment approach, a quantitative investment approach, or a combination of both.</span></p> Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of small capitalization companies and in derivatives and other instruments that have economic characteristics and provide investment exposure similar to equity securities of small capitalization companies Small capitalization companies are those that have a market capitalization not greater than that of the largest company in the Russell 2000^®<span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Index at the time of its most recent reconstitution. The Fund invests predominantly in common stock, but may also invest in preferred stocks, securities convertible into common stocks, and warrants and rights. The Fund invests predominantly in U.S. companies (i.e., U.S. traded companies or companies domiciled, or having their principal activities, in the U.S.), but may invest up to 10% of its total assets in foreign securities, either directly or through depositary receipts.</span> <p style="margin-top:revert; margin-bottom:revert; font-size:13.0pt; font-family:Arial; text-align:left; color:#004C97; font-weight:normal; font-style:normal;"><span style="font-size:4.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><a href="" id="x5x19"></a><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;"> </span><span style="font-size:13.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">Principal Risks</span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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 </p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">below, any of which may adversely affect the Fund’s 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.</p> You could lose money by investing in the Fund. <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">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. In addition, the value of the Fund’s investments may go up or down due to general market or other conditions that are not specifically related to a particular issuer, such as: real or perceived adverse economic changes, including widespread liquidity issues and defaults in one or more industries; changes in interest, inflation or exchange rates; unexpected natural and man-made world events, such as diseases or disasters; financial, political or social disruptions, including terrorism and war; and U.S. trade disputes or other disputes with specific countries that could result in additional tariffs, trade barriers and/or investment restrictions in certain securities in those countries. Any of these conditions can adversely affect the economic prospects of many companies, sectors, nations, regions and the market in general, in ways that cannot necessarily be foreseen.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Ongoing or threatened armed conflicts throughout the world have caused and could continue to cause significant market disruptions and volatility. The hostilities and sanctions resulting from those hostilities could have a significant adverse impact on certain investments of the Fund as well as the Fund’s performance and liquidity.</p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Multi-Factor Stock Selection Process:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> There can be no assurance that the multi-factor stock selection process will enhance performance. Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. There is also no guarantee the Fund will achieve the specific factor exposures.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:italic; color:#004C97; font-weight:normal; text-decoration:none;">Quality factor</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities that previously exhibited greater quality characteristics than other securities may not continue to be quality securities. Many factors can impact a security’s quality and performance, and such factors and their impact may be difficult to predict.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:italic; color:#004C97; font-weight:normal; text-decoration:none;">Value factor</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Signals from the value factor like strong price to book value or dividend yields may not be persistent and as such a change could occur quickly, or </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">such securities could underperform during certain economic cycles or market environments. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:italic; color:#004C97; font-weight:normal; text-decoration:none;">Sentiment factor</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities that previously exhibited greater sentiment (i.e., momentum) characteristics may not continue to experience positive sentiment, and such a change could occur quickly. Sentiment securities may experience more volatility than the market as a whole. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:italic; color:#004C97; font-weight:normal; text-decoration:none;">Alternative factor</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Signals from the alternative factor such as high short interest (i.e., “bearish” investor views) may carry risks such as ambiguous interpretation of investor motives, and the potential for sudden price spikes due to short squeezes.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:italic; color:#004C97; font-weight:normal; text-decoration:none;">Conviction factor</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:normal; text-decoration:none;">:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities with high conviction may nevertheless underperform, perhaps for extended periods. There can be no guarantee that the investment manager’s and sub-advisors’ techniques or investment decisions will produce the desired results.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Capitalization Companies:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Securities issued by small capitalization companies may be more volatile in price than those of larger companies and may involve substantial risks. 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, small capitalization 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. The markets for securities issued by small capitalization companies also tend to be less liquid than the markets for securities issued by larger companies. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Focus:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> To the extent that the Fund focuses on particular countries, regions, industries, sectors or types of investments 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Derivative Instruments:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The performance of derivative instruments depends largely on the performance of an underlying instrument, such as a currency, security, interest rate or index, and such instruments often have risks similar to their underlying instrument, in addition to other risks. Derivative instruments 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. 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, interest rate, index or other risk being hedged. With </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">over-the-counter derivatives, there is the risk that the other party to the transaction will fail to perform.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Foreign Securities (non-U.S.):</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Investing in foreign securities typically involves different 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; diplomatic and political developments could affect the economies, industries, and securities and currency markets of the countries in which the Fund is invested, which can include rapid and adverse political changes; social instability; regional conflicts; sanctions imposed by the United States, other nations or other governmental entities, including supranational entities; terrorism; and war; (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. </span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Management:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> The Fund is subject to management risk because it is an actively managed ETF. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Quantitative Models</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">: </span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;">The quantitative models that may be used by the investment manager as part of the Fund’s portfolio construction process to evaluate investment opportunities have been tested on historical price data. These models are based on the assumption that price movements in most markets continue to display similar patterns as those observed in the past. There is the risk that market behavior will change and that the patterns upon which the forecasts in the models are based will weaken or disappear, which would reduce the success of the models. Further, as market dynamics shift over time, a previously highly successful model may become outdated, perhaps without the investment manager recognizing that fact before substantial losses are incurred. Successful operation of a model is also reliant upon the information technology systems of the investment manager and its ability to ensure those systems remain operational and that appropriate disaster recovery procedures are in place. There can be no assurance that the investment manager will be successful in maintaining effective and operational quantitative models and the related hardware and software systems.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Cybersecurity:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Cybersecurity incidents, both intentional and unintentional, may allow an unauthorized party to gain access to Fund assets, Fund or customer data (including private shareholder information), or proprietary information, cause the Fund, the investment manager, authorized participants, or index providers (as applicable) and listing exchanges, and/or their service providers (including, but not limited to, Fund accountants, custodians, sub-custodians, transfer agents and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality or prevent Fund investors from purchasing, redeeming shares or receiving distributions. The investment manager has limited ability to prevent or mitigate cybersecurity incidents affecting third party service providers, and such third party service providers may have limited indemnification obligations to the Fund or the investment manager. Cybersecurity incidents may result in financial losses to the Fund and its shareholders, and substantial costs may be incurred in an effort to prevent or mitigate future cybersecurity incidents. Issuers of securities in which the Fund invests are also subject to cybersecurity risks, and the value of these securities could decline if the issuers experience cybersecurity incidents.</span></p><p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because technology is frequently changing (including the development of artificial intelligence and machine learning), new ways to carry out cyber attacks are always developing. Therefore, there is a chance that some risks have not been identified or prepared for, or that an attack may not be detected, which puts limitations on the Fund's ability to plan for or respond to a cyber attack. Like other funds and business enterprises, the Fund, the investment manager, and their service providers are subject to the risk of cyber incidents occurring from time to time. The rapid development and increasingly widespread use of artificial intelligence technologies could increase the effectiveness of cyber attacks and exacerbate the risks.</p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Depositary Receipts:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Depositary receipts are subject to many of the risks of the underlying security. For some depositary receipts, the custodian or similar financial institution that holds the underlying security in a trust account may not be located in the United States. The Fund could be exposed to the credit risk of the custodian or financial institution, and in cases where the relevant jurisdiction does not have developed financial markets, the Fund may face greater market risk. In addition, the depository institution may not have physical custody of the underlying securities at all times and may charge fees for various services, such as forwarding dividends and interest or administering corporate actions that the Fund would not have incurred as a direct investor in the underlying securities. As a result, the Fund may experience delays in receiving its dividend and interest payments or exercising rights as a shareholder. There may be an increased possibility of untimely responses to certain corporate actions of the issuer in an unsponsored depositary receipt program. Accordingly, there may be less information available regarding </span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">issuers of securities underlying unsponsored programs and there may not be a correlation between this information and the market value of the depositary receipts. </p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Market Trading:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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 Fund’s 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. </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Authorized Participant Concentration:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. "Authorized Participants" are broker-dealers that are permitted to create and redeem shares directly with the Fund and who have entered into agreements with the Fund’s distributor. 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.</span></p> <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Small Fund:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> 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.</span></p> <p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; font-style:normal;"><span style="font-size:9.0pt; font-family:Arial; font-style:normal; color:#004C97; font-weight:bold; text-decoration:none;">Large Shareholder:</span><span style="font-size:9.0pt; font-family:Arial; font-style:normal; font-weight:normal; text-decoration:none;"> Certain large shareholders, including other funds or accounts advised by the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, may from time to time own a substantial amount of the Fund’s shares. In addition, a third-party investor, the investment manager, sub-advisor or an affiliate of the investment manager or sub-advisor, 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 </span></p><p style="margin-top:revert; margin-bottom:revert; font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">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.</p> Performance Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. <p style="margin-top:revert; margin-bottom:revert;font-size:9.0pt; font-family:Arial; text-align:left; font-weight:normal; text-decoration:none;">Because the Fund does not have a full calendar year of performance, annual total return information is not available and therefore is not presented. You can obtain updated performance information at www.franklintempleton.com or by calling (800) DIAL BEN/342-5236. The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. </p> franklintempleton.com (800) DIAL BEN/342-5236 The Fund’s past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. 485BPOS 2026-03-31 0001655589 false 2026-07-27 2026-08-01 ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057200Summary1Member row dei_LegalEntityAxis compact cik0001655589_S000057200Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057200Summary1Member row dei_LegalEntityAxis compact cik0001655589_S000057200Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057200Summary1Member row dei_LegalEntityAxis compact cik0001655589_S000057200Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057201Summary1Member row dei_LegalEntityAxis compact cik0001655589_S000057201Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057201Summary1Member row dei_LegalEntityAxis compact cik0001655589_S000057201Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057201Summary1Member row dei_LegalEntityAxis compact cik0001655589_S000057201Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057202Summary1Member row dei_LegalEntityAxis compact cik0001655589_S000057202Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057202Summary1Member row dei_LegalEntityAxis compact cik0001655589_S000057202Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057202Summary1Member row dei_LegalEntityAxis compact cik0001655589_S000057202Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000089400Summary2Member row dei_LegalEntityAxis compact cik0001655589_S000089400Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000089400Summary2Member row dei_LegalEntityAxis compact cik0001655589_S000089400Member ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000089401Summary2Member row dei_LegalEntityAxis compact cik0001655589_S000089401Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000089401Summary2Member row dei_LegalEntityAxis compact cik0001655589_S000089401Member ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053151Summary3Member row dei_LegalEntityAxis compact cik0001655589_S000053151Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053151Summary3Member row dei_LegalEntityAxis compact cik0001655589_S000053151Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053151Summary3Member row dei_LegalEntityAxis compact cik0001655589_S000053151Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053152Summary3Member row dei_LegalEntityAxis compact cik0001655589_S000053152Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053152Summary3Member row dei_LegalEntityAxis compact cik0001655589_S000053152Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053152Summary3Member row dei_LegalEntityAxis compact cik0001655589_S000053152Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053153Summary3Member row dei_LegalEntityAxis compact cik0001655589_S000053153Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053153Summary3Member row dei_LegalEntityAxis compact cik0001655589_S000053153Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053153Summary3Member row dei_LegalEntityAxis compact cik0001655589_S000053153Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000080763Summary4Member row dei_LegalEntityAxis compact cik0001655589_S000080763Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000080763Summary4Member row dei_LegalEntityAxis compact cik0001655589_S000080763Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000080763Summary4Member row dei_LegalEntityAxis compact cik0001655589_S000080763Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000075788Summary5Member row dei_LegalEntityAxis compact cik0001655589_S000075788Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000075788Summary5Member row dei_LegalEntityAxis compact cik0001655589_S000075788Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000075788Summary5Member row dei_LegalEntityAxis compact cik0001655589_S000075788Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000067392Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000067392Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000067392Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000067392Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000067392Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000067392Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000067393Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000067393Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000067393Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000067393Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000067393Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000067393Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000067394Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000067394Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000067394Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000067394Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000067394Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000067394Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000070439Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000070439Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000070439Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000070439Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000070439Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000070439Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053774Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000053774Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053774Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000053774Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053774Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000053774Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053775Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000053775Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053775Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000053775Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053775Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000053775Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057879Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000057879Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057879Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000057879Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057879Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000057879Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057880Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000057880Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057880Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000057880Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000057880Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000057880Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000061946Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000061946Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000061946Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000061946Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000061946Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000061946Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000061947Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000061947Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000061947Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000061947Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000061947Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000061947Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000061948Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000061948Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000061948Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000061948Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000061948Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000061948Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000066377Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000066377Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000066377Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000066377Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000066377Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000066377Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000068596Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000068596Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000068596Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000068596Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000068596Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000068596Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000068139Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000068139Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000068139Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000068139Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000068139Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000068139Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000066719Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000066719Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000066719Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000066719Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000066719Summary6Member row dei_LegalEntityAxis compact cik0001655589_S000066719Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000094832Summary7Member row dei_LegalEntityAxis compact cik0001655589_S000094832Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000094832Summary7Member row dei_LegalEntityAxis compact cik0001655589_S000094832Member ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000080151Summary8Member row dei_LegalEntityAxis compact cik0001655589_S000080151Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000080151Summary8Member row dei_LegalEntityAxis compact cik0001655589_S000080151Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000080151Summary8Member row dei_LegalEntityAxis compact cik0001655589_S000080151Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000080465Summary9Member row dei_LegalEntityAxis compact cik0001655589_S000080465Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000080465Summary9Member row dei_LegalEntityAxis compact cik0001655589_S000080465Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000080465Summary9Member row dei_LegalEntityAxis compact cik0001655589_S000080465Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053154Summary10Member row dei_LegalEntityAxis compact cik0001655589_S000053154Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053154Summary10Member row dei_LegalEntityAxis compact cik0001655589_S000053154Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000053154Summary10Member row dei_LegalEntityAxis compact cik0001655589_S000053154Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000098522Summary11Member row dei_LegalEntityAxis compact cik0001655589_S000098522Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000098522Summary11Member row dei_LegalEntityAxis compact cik0001655589_S000098522Member ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059508Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059508Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059508Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059508Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059508Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059508Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059501Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059501Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059501Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059501Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059501Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059501Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059509Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059509Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059509Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059509Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059509Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059509Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059502Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059502Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059502Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059502Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059502Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059502Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059511Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059511Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059511Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059511Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059511Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059511Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059503Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059503Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059503Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059503Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059503Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059503Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059514Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059514Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059514Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059514Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059514Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059514Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000063035Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000063035Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000063035Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000063035Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000063035Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000063035Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059504Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059504Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059504Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059504Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059504Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059504Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000063031Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000063031Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000063031Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000063031Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000063031Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000063031Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059497Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059497Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059497Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059497Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059497Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059497Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059498Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059498Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059498Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059498Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059498Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059498Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059507Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059507Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059507Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059507Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059507Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059507Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059499Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059499Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059499Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059499Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059499Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059499Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059500Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059500Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059500Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059500Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059500Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059500Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059495Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059495Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059495Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059495Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059495Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059495Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059506Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059506Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059506Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059506Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059506Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059506Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059496Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059496Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059496Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059496Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059496Summary12Member row dei_LegalEntityAxis compact cik0001655589_S000059496Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000094328Summary13Member row dei_LegalEntityAxis compact cik0001655589_S000094328Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000094328Summary13Member row dei_LegalEntityAxis compact cik0001655589_S000094328Member ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059505Summary14Member row dei_LegalEntityAxis compact cik0001655589_S000059505Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059505Summary14Member row dei_LegalEntityAxis compact cik0001655589_S000059505Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000059505Summary14Member row dei_LegalEntityAxis compact cik0001655589_S000059505Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000095581Summary15Member row dei_LegalEntityAxis compact cik0001655589_S000095581Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000095581Summary15Member row dei_LegalEntityAxis compact cik0001655589_S000095581Member ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000095580Summary16Member row dei_LegalEntityAxis compact cik0001655589_S000095580Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000095580Summary16Member row dei_LegalEntityAxis compact cik0001655589_S000095580Member ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000081195Summary17Member row dei_LegalEntityAxis compact cik0001655589_S000081195Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000081195Summary17Member row dei_LegalEntityAxis compact cik0001655589_S000081195Member ~ ~ http://xbrl.sec.gov/rr/role/PerformanceTableData column period compact * row dei_DocumentInformationDocumentAxis compact cik0001655589_S000081195Summary17Member row dei_LegalEntityAxis compact cik0001655589_S000081195Member row oef_ClassAxis compact * row oef_PerformanceMeasureAxis compact * ~ ~ http://xbrl.sec.gov/rr/role/OperatingExpensesData row dei_DocumentInformationDocumentAxis compact cik0001655589_S000097279Summary18Member row dei_LegalEntityAxis compact cik0001655589_S000097279Member ~ ~ http://xbrl.sec.gov/rr/role/ExpenseExample row dei_DocumentInformationDocumentAxis compact cik0001655589_S000097279Summary18Member row dei_LegalEntityAxis compact cik0001655589_S000097279Member ~ -0.0196 0.2876 0.1064 0.2669 -0.148 0.2346 0.2423 0.1977 -0.0357 0.2815 0.155 0.2851 -0.1278 0.1746 0.1417 0.0536 -0.0456 0.1821 0.1027 0.2662 -0.168 0.2061 0.0866 0.0498 0.1282 -0.0618 0.2266 0.0155 0.1722 -0.0174 0.1923 0.0236 0.3451 0.2837 -0.1172 0.1259 0.0169 0.0686 -0.2016 0.1459 0.1308 0.2883 0.1705 -0.0795 0.2393 0.0598 0.1955 -0.1509 0.2514 0.2548 0.1888 0.0112 0.0686 0.1056 0.2195 -0.0917 0.2724 0.0746 0.2917 -0.0641 0.0878 0.1259 0.0888 -0.1945 -0.4965 0.3876 0.2816 0.0864 0.0966 -0.3786 0.0123 -0.0508 0.2589 0.2525 -0.3314 0.41 0.3082 0.3062 -0.4566 0.4579 0.166 0.0173 0.1983 -0.0041 0.3205 0.1245 0.233 -0.0848 0.1388 0.11 0.1542 0.0612 -0.0307 0.148 0.0994 -0.0182 -0.1617 0.0777 0.022 0.0741 0.0039 0.068 0.0625 0.04 -0.1022 0.0767 0.0515 0.0587 0.0021 0.0896 0.0746 0.0089 -0.122 0.0772 0.025 0.0383 0.1662 0.0742 0.0443 -0.1044 0.1397 0.0847 0.0924 0.0767 0.0131 -0.0196 -0.074 0.0635 0.0291 0.0238 0.0774 0.023 0.0394 -0.0136 0.1357 0.082 0.0423 0.0766 -0.0171 -0.1357 0.0567 0.0153 0.0708 -0.0225 -0.1154 0.0415 0.0054 0.0638 0.0019 0.0014 0.0592 0.0567 0.0512 -0.1479 0.1199 -0.0053 0.0469 0.102 0.1527 0.3416 0.0208 0.3314 0.5618 0.1609 -0.3963 0.4915 0.3817 0.1699 0.0688 0.1283 0.2338 -0.0714 0.261 0.0974 0.1946 -0.1886 0.2716 0.2488 0.1772 -0.1225 0.232 0.1104 0.0993 -0.0542 0.1338 0.0092 0.1647 -0.0088 0.2739 -0.1941 -0.1728 0.1132 0.3317 -0.2783 0.4594 -0.158 0.2867 0.0591 0.291 -0.1195 0.1523 0.1236 0.349 -0.1828 0.2292 0.306 -0.2104 -0.2225 -0.1198 0.1917 0.3161 -0.2207 0.2167 0.1224 0.0529 -0.221 0.2412 0.1068 0.367 0.0493 0.1516 0.2482 -0.0819 0.2071 0.1047 0.0221 -0.131 0.1909 0.1435 0.0116 -0.1578 0.1968 0.0776 0.253 0.1962 -0.1476 -0.0908 0.0839 0.3244 -0.2636 0.5071 -0.1369 0.1207 -0.0361 0.2038 0.0193 0.3982 -0.2813 0.527 0.0896 0.0409 0.3536 -0.0253 0.1243 0.0018 -0.0817 -0.2034 0.0805 0.4282 -0.0659 -0.2831 0.2099 -0.1946 0.9179 0.3266 0.1415 0.204 -0.183 0.1671 -0.0141 0.331 -0.0893 0.3089 0.3041 0.2972 -0.2774 0.2978 0.1729 0.3191 -0.1465 0.2257 -0.0887 0.1715 -0.0692 0.1537 0.0885 0.3336 0.1732 0.2496 -0.0372 -0.1901 0.0639 0.1092 0.3133 -0.1481 0.2409 0.0623 0.1621 -0.1551 0.2093 0.0235 0.3587 -0.0823 0.2722 0.0046 0.2343 -0.0697 0.159 0.0279 0.4111 -0.1396 0.2052 0.0944 0.1278 -0.0147 0.3504 0.2607 0.2925 0.5076 -0.0874 0.2425 -1 0 0 0 0.0119 0.0781 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2017-04-26 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2016-06-01 2023-07-25 2023-07-25 2023-07-25 2023-07-25 2020-02-25 2020-02-25 2020-02-25 2020-02-25 2020-02-25 2020-02-25 2020-02-25 2020-02-25 2020-02-25 2020-02-25 2020-02-25 2020-02-25 2021-01-12 2021-01-12 2021-01-12 2021-01-12 2016-09-20 2016-09-20 2016-09-20 2016-09-20 2016-09-20 2016-09-20 2016-10-03 2016-10-03 2016-10-03 2016-10-03 2016-10-03 2017-08-31 2017-08-31 2017-08-31 2017-08-31 2017-08-31 2017-08-31 2017-08-31 2017-08-31 2017-08-31 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2018-05-30 2019-09-17 2019-09-17 2019-09-17 2019-09-17 2020-06-09 2020-06-09 2020-06-09 2020-06-09 2020-06-09 2020-07-14 2020-07-14 2020-07-14 2020-07-14 2020-07-14 2019-12-18 2019-12-18 2019-12-18 2019-12-18 2019-12-18 2019-12-18 2016-04-13 2016-04-13 2016-04-13 2016-04-13 2016-04-13 2023-06-06 2023-06-06 2023-06-06 2023-06-06 2023-06-06 2023-06-06 2016-06-01 2016-06-01 2016-06-01 2016-06-01 based on estimated amounts for the current fiscal year. 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-03 2017-11-03 2017-11-03 2017-11-03 2017-11-03 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2018-02-06 2018-02-06 2018-02-06 2018-02-06 2018-02-06 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2018-10-09 2018-10-09 2018-10-09 2018-10-09 2018-10-09 2017-11-03 2017-11-03 2017-11-03 2017-11-03 2017-11-03 2018-10-09 2018-10-09 2018-10-09 2018-10-09 2018-10-09 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2018-02-06 2018-02-06 2018-02-06 2018-02-06 2018-02-06 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2018-02-06 2018-02-06 2018-02-06 2018-02-06 2018-02-06 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2017-11-02 2018-02-06 2018-02-06 2018-02-06 2018-02-06 based on estimated amounts for the current fiscal year. based on estimated amounts for the current fiscal year. 2023-09-19 2023-09-19 2023-09-19 2023-09-19 based on estimated amounts for the current fiscal year. ~ http://franklintempleton.com/20260331/role/RRRiskTable3 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable5 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable7 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable9 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable11 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable13 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable15 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable17 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable19 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable21 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable23 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable25 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable27 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable29 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable31 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable33 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable35 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable37 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable39 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable41 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable43 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable45 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable47 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable49 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable51 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable53 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable55 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable57 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable59 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable61 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable63 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable65 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable67 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable69 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable71 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable73 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable75 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable77 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable79 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable81 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable83 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable85 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable87 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable89 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable91 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable93 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable95 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable97 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable99 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable101 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable103 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable105 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable107 ~ ~ http://franklintempleton.com/20260331/role/RRRiskTable109 ~ Since inception April 26, 2017. Since inception April 26, 2017. Since inception April 26, 2017. Since inception June 1, 2016. The Morningstar® Developed Markets ex-North America Target Market Exposure Index-NR did not commence calculation and publication until June 10, 2019. The Linked Morningstar® Developed Markets ex-North America Target Market Exposure Index-NR measures the performance of the Fund's former primary benchmark, the MSCI Europe, Australasia and the Far East (EAFE) 100% Hedged to USD Index-NR, from inception through July 31, 2022, followed by the performance of the Parent Index thereafter. The Morningstar® Developed Markets ex-North America Dividend Enhanced Select Index℠-NR did not commence calculation and publication until June 15, 2022. The Linked Morningstar® Developed Markets ex-North America Dividend Enhanced Select Index-NR measures the performance of the Fund's former underlying index, LibertyQ International Equity Hedged Index-NR, from inception through July 31, 2022, followed by the performance of the Underlying Index thereafter. Since inception June 1, 2016. The Morningstar® Emerging Markets Target Market Exposure Index-NR did not commence calculation and publication until February 25, 2019. The Linked Morningstar® Emerging Markets Target Market Exposure Index-NR measures the performance of the Fund's former primary benchmark, the MSCI Emerging Markets Index-NR, from inception through July 31, 2022, followed by the performance of the Parent Index thereafter. The Morningstar® Emerging Markets Dividend Enhanced Select Index℠-NR did not commence calculation and publication until June 15, 2022. The Linked Morningstar® Emerging Markets Dividend Enhanced Select Index-NR measures the performance of the Fund's former underlying index, LibertyQ Emerging Markets Index-NR, from inception through July 31, 2022, followed by the performance of the Underlying Index thereafter. Since inception June 1, 2016. The Morningstar® US Target Market Exposure Index did not commence calculation and publication until November 22, 2018. The Linked Morningstar® US Target Market Exposure Index measures the performance of the Fund's former primary benchmark, the MSCI All Country World Index (ACWI) ex REITs Index-NR, from inception through July 31, 2022, followed by the performance of the Parent Index thereafter. The Parent Index reflects no deduction for fees, expenses or taxes. The MSCI ACWI ex REITs Index-NR reflects no deduction for fees, expenses or taxes but is net of dividend tax withholding. The Morningstar® US Dividend Enhanced Select Index℠ did not commence calculation and publication until June 15, 2022. The Linked Morningstar® US Dividend Enhanced Select Index℠ measures the performance of the Fund's former underlying index, LibertyQ Global Dividend Index, from inception through July 31, 2022, followed by the performance of the Underlying Index thereafter. The Underlying Index reflects no deduction for fees, expenses or taxes. The LibertyQ Global Dividend Index reflects no deduction for fees, expenses or taxes but is net of dividend tax withholding. Since inception July 25, 2023. Since inception February 25, 2020. Since inception February 25, 2020. Since inception February 25, 2020. Since inception January 12, 2021. Since inception September 20, 2016. Since inception October 3, 2016. Since inception August 31, 2017. Since inception August 31, 2017. Since inception May 30, 2018. Since inception May 30, 2018. Since inception May 30, 2018. Since inception September 17, 2019. Since inception June 9, 2020. Since inception July 14, 2020. Since inception December 18, 2019. Management fees have been restated to reflect the reduced management fee effective June 30, 2026. Consequently, the Fund’s total annual Fund operating expenses differ from the ratio of expenses to average net assets shown in the Financial Highlights. Total annual Fund operating expenses have been restated to reflect current management fees. Since inception April 13, 2016. Since inception June 6, 2023. Since inception June 1, 2016. The Morningstar® US Target Market Exposure Index did not commence calculation and publication until November 22, 2018. The Linked Morningstar® US Target Market Exposure Index measures the performance of the Fund's previous underlying index, the LibertyQ Global Equity Index-NR, through July 31, 2022, followed by the performance of the Underlying Index thereafter. Other expenses are based on estimated amounts for the current fiscal year. Since inception November 2, 2017. During the fiscal year ended March 31, 2026, the Fund incurred an extraordinary excise tax expense. Had such expense been included Other expenses would be 0.01% and Total annual Fund operating expenses would be 0.20%. Since inception November 3, 2017. Since inception November 2, 2017. Since inception November 2, 2017. Since inception November 2, 2017. Since inception February 6, 2018. Since inception November 2, 2017. Since inception October 9, 2018. Since inception November 3, 2017. Since inception October 9, 2018. Since inception November 2, 2017. Since inception February 6, 2018. Since inception November 2, 2017. Since inception November 2, 2017. Since inception February 6, 2018. Since inception November 2, 2017. Since inception November 2, 2017. The Linked FTSE Developed Eurozone Index-NR measures the performance of the Fund’s previous underlying index (the FTSE Developed Europe Capped Hedged Index-NR) from Fund inception through July 31, 2023 followed by the performance of the Fund’s Underlying Index thereafter. Since inception November 2, 2017. Effective March 1, 2022, Franklin Advisory Services, LLC, the Fund’s investment manager, implemented a waiver of its management fee for the Fund, which will continue in effect while the Fund liquidates. Since inception February 6, 2018. The Fund’s returns based on net asset value include the Fund’s valuation of its Russian securities based on fair value prices. The value of the FTSE Russia Capped Index, on the other hand, is based on securities’ last closing prices on local foreign markets (i.e., the value of the FTSE Russia Capped Index is not based on fair value prices). With respect to the Underlying Index, 5 Years and Since Inception returns are shown through the period ended December 31, 2023. No 1 Year return is shown due to the discontinuation of the Underlying Index on February 28, 2024.  Other expenses are based on estimated amounts for the current fiscal year. Other expenses are based on estimated amounts for the current fiscal year. Since inception September 19, 2023. Other expenses are based on estimated amounts for the current fiscal year.