Fixed Income Active

FLUD Franklin Ultra Short Bond ETF

A broader opportunity set. The fund invests in a diversified portfolio composed of short duration, investment-grade money market and other fixed income securities.
Active risk management. In today’s complex bond market, the fund’s experienced managers actively manage risk with the goal of superior risk-adjusted performance over time.
Higher income potential. Access to a wider range of income opportunities means the fund may offer higher income potential than other short-term investments.

Overview

See the risks and other important information.

Fund Facts

Fund description

The fund seeks to provide a high level of current income as is consistent with prudent investing, while seeking to preserve shareholders' capital by primarily investing in bonds and investments that provide exposure to bonds. The fund targets an estimated average portfolio duration of one (1) year or less.

Benchmark: ICE BofA US 3-Month Treasury Bill Index
Fund Inception Date: 07/14/2020
Listing Exchange: NYSE Arca
Dividend Frequency, if any: Monthly
Distribution Rate at NAV⁴As of 06/10/2026 (Updated Daily): 3.28%
30-Day SEC Yield—With Waiver^5,6,7As of 05/31/2026 (Updated Monthly): 4.11%
30-Day SEC Yield—Without Waiver^6,7As of 05/31/2026 (Updated Monthly): 4.11%

Expenses & Fees

As of 08/01/2025

Gross Expense Ratio⁸: 0.15%
Net Expense Ratio^8,9: 0.15%

Identifiers

Ticker: FLUD
CUSIP Code: 35473P496
ISIN Code: US35473P4963
Bloomberg Code: FLUD US

Average Annual Total Returns As of 05/31/2026

View performance section for additional info As of 05/31/2026

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the figures shown. Principal value and investment returns will fluctuate, and investors' shares, when redeemed, may be worth more or less than the original cost. Returns are based on Market Price or NAV, assume the reinvestment of all distributions and the deduction of all Fund expenses. Performance would have been lower if expenses had not been waived in various periods. Returns for periods of less than one year are not annualized.

Market Price Return

NAV Return

4.57%1 Year
5.33%3 Years
3.61%5 Years
—10 Years
3.25%Since Inception
07/14/2020

Top Sectors

View portfolio section for additional info

As of 06/10/2026 % of Total (Updated Daily)

Top Sectors
Finance56.99%
Automotive5.20%
Treasury & Government Related2.04%
Industrial2.01%
Aerospace & Defense1.94%

Additional Fund Info

Fiscal Year End: March 31
ETF Type: Active
Morningstar Category¹⁰: Ultrashort Bond

Trading Characteristics

As of 06/10/2026 (Updated Daily)

Shares Outstanding: 16,050,000
Daily Volume: 22,383
20-Day Average Volume: 305862.50

Manager and Commentary

About the Team

Franklin Templeton Fixed Income

A global leader in fixed income, the team strives to provide consistent and resilient returns by combining deep fundamental research with rigorous portfolio construction. This solutions-driven approach means maintaining portfolio and risk exposures that align with client expectations.

Commentary Highlights

March 31, 2026

Markets :. The war in the Middle East, which began in late February, dominated much of the news flow and financial market sentiment over the remainder of the quarter. The reaction in markets has evolved, initially seeing a traditional risk-off move in both the US dollar and US bonds, which then turned into a stagflationary-focused selloff in core developed bond markets as oil prices surged (although the dollar remained well-supported). The US Federal Reserve (Fed) remained on hold throughout the quarter. The March Federal Open Market Committee (FOMC) meeting statement and press conference emphasized uncertainty related to the Iran war, indicating that the Fed would look through any initial oil supply shock effect on inflation to focus on core developments, while also noting a likely dragging effect on the economy; ultimately the Committee retained an easing bias. US Treasury (UST) yields moved higher across the curve over the three-month period, resulting in a broader upward shift in the interest rate environment.
Contributors : Exposure to the investment-grade (IG) banking sector, the largest sector allocation, was the top contributor.
Detractors : Yield curve positioning.
Outlook : Fixed income volatility measures rose during the quarter, with much of the increase coming in the wake of the onset of the war in the Middle East. The path of monetary policy by the Fed, geopolitical tensions and spread volatility continue to cause concern.

For complete information, please see the full commentary:

Franklin Templeton Fixed Income

Managed Fund Since 2024

Latest Insights

June 8, 2026

Municipal bond market monthly brief

June 4, 2026

The "Silver Tsunami" is changing municipal credit—here’s how

May 6, 2026

On My Mind: The “Scarlet K”—A misleading consumption divergence story

April 29, 2026

Emerging markets update: Resilience through volatility

Performance

Average Annual Total Returns

As of 05/31/2026

Month End

Quarter End

As of

Franklin Ultra Short Bond ETF - Market Price Return (%)

Month End

As of 05/31/2026

Franklin Ultra Short Bond ETF - NAV Return (%)

Month End

As of 05/31/2026

ICE BofA US 3-Month Treasury Bill Index (%)

Month End

As of 05/31/2026

Overall Morningstar Rating: Overall Morningstar Rating: 3 out of 5 stars
As of 05/31/2026

3 Years: 3 Years: 3 out of 5 stars
223 Funds in category

5 Years: 5 Years: 3 out of 5 stars
180 Funds in category

10 Years: —

Rating Category: Ultrashort Bond

The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

The number of funds in the category for the Overall Morningstar Rating are listed in the funds in category for the 3-year rating.

Morningstar Style Box

As of 05/31/2026

Current Historical
			High
			Medium
			Low
LTD	MOD	EXT
Duration

Quality

Source: Morningstar®. The style box reveals a fund's investment style. For equity funds, the vertical axis shows the market capitalization of the long stocks owned, and the horizontal axis shows the investment style (value, blend, or growth). For fixed income funds, the vertical axis shows the credit quality based on credit ratings and the horizontal axis shows interest-rate sensitivity as measured by effective duration. Placement is determined by fund portfolio holding figures most recently entered into Morningstar's database and corresponding market conditions. Shaded areas show the past 3 years of quarterly data. Past performance does not guarantee future results.

©2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Portfolio

Assets

As of06/10/2026 (Updated Daily)

Total Net Assets: $400.64 Million

Positions

As of 06/10/2026 (Updated Daily)

Number of Holdings

Fund: 408

Portfolio Statistics

As of 06/10/2026 (Updated Daily)

Effective Duration

Fund: 0.54 Years

Average Weighted Maturity

Fund: 1.15 Years

Sector Allocation

As of 06/10/2026 Duration Contribution (Updated Daily)

Finance

Automotive

Treasury & Government Related

Industrial

Aerospace & Defense

Utility

Food and Beverage

Health Care

Wireless

Wired

Technology

Retailers

Lodging

Energy

Metals & Mining

Consumer Products

Media (Non-Cable)

Leisure

Building

Supermarkets

Consumer Cyclical Services

Paper

Transportation

Cash & Cash Equivalents

Holdings
As of 06/10/2026 (Updated Daily)

CASH

US TREASURY N/B 3.75 4/28

US TREASURY N/ 3.375 2/28

WEC ENERGY GROUP 0626

NATWEST GROUP 5.583 3/28

ING GROEP NV FRN 3/29

CAIXABANK 6.208 1/29

AT&T INC 2.3 6/27

PNC BANK NA 4.429 7/28

CRED AGRICOLE 4.631 9/28

Distributions & Tax

Pricing

Documents

Risks

All investments involve risks, including possible loss of principal. Changes in the credit rating of a bond, or in the credit rating or financial strength of a bond’s issuer, insurer or guarantor, may affect the bond’s value. Fixed income securities involve interest rate, credit, inflation and reinvestment risks, and possible loss of principal. As interest rates rise, the value of fixed income securities falls. The fund should not be considered an alternative to money market funds or certificates of deposit (CDs). To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. The manager may consider environmental, social and governance (ESG) criteria in the research or investment process; however, ESG considerations may not be a determinative factor in security selection. In addition, the manager may not assess every investment for ESG criteria, and not every ESG factor may be identified or evaluated. These and other risks are discussed in the fund’s prospectus.

Important Information

Franklin Distributors, LLC. Member FINRA, SIPC. All entities mentioned are Franklin Templeton affiliated companies. Investment Products: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE.
Reports and other information about the funds are available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

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Important data provider notices and terms available at www.franklintempletondatasources.com.

Performance data quoted represents past performance, which does not guarantee future results.

CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges.

All investments involve risk, including possible loss of principal. Please see each product's web page for specific details regarding investment objective, risks, performance, and other important information. Review this information carefully before you make any investment decision. Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.

Carefully consider a fund’s investment objectives, risks, charges and expenses before investing. Please view the prospectus or summary prospectus for this and other information. Read it carefully.

Franklin Templeton, its affiliated companies, and its employees are not in the business of providing tax or legal advice to taxpayers. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties or complying with any applicable tax laws or regulations. Tax-related statements, if any, may have been written in connection with the “promotion or marketing” of the transaction(s) or matter(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

ETFs trade like stocks, fluctuate in market value and may trade at prices above or below their net asset value. Brokerage commissions and ETF expenses will reduce returns. ETF shares may be bought or sold throughout the day at their market price (MP), not their Net Asset Value (NAV), on the exchange on which they are listed. Shares of ETFs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market. Prior to trading in the secondary market, shares of the fund are "created" at NAV by market makers, large investors and institutions only in block-size Creation Units. Each "creator" or "Authorized Participant" enters into an authorized participant agreement with Franklin Distributors, LLC. Only an Authorized Participant may create or redeem Creation Units directly with the fund. Retail investors buy and sell shares of ETFs at market price (not NAV) in the secondary market throughout the trading day. These shares are not individually available for purchase or redemption directly from the ETF.

Franklin Distributors, LLC serves as the distributor of Creation Units for the ETFs on an agency basis. Franklin Distributors, LLC does not maintain a secondary market in the funds' shares.

Redemption payments will be effected within the specified number of calendar days following the date on which a request for redemption in proper form is made. For more information, please see the ETF’s statement of additional information (SAI) which can be found on the fund’s webpage.

The ICE BofA 3-Month U.S. Treasury Bill Index is an unmanaged index that comprises a single U.S. Treasury issue with approximately three months to final maturity, purchased at the beginning of each month and held for one full month.
Source: The index data referenced herein is the property of Intercontinental Exchange ("ICE") and/or its licensors and has been licensed for use by Franklin Templeton. ICE and its licensors accept no liability in connection with this use.

Footnotes

Net Asset Value (NAV) returns are based on the NAV of the ETF/ETP. The fund’s NAV represents the per-share-value and is determined by dividing the total NAV of the fund by the number of shares outstanding; Market Price returns are based upon the official closing price of the ETF’s/ETP's shares. The fund calculates the NAV per share each business day and normally coincides with the close of trading on the exchange on which they are listed, typically 4 pm ET. The fund does not calculate the NAV on days the exchange is closed for trading. These returns do not represent investors’ returns had they traded shares at other times.
Figures are aggregate total return figures, have not been annualized and represent the change in value of an investment over the period indicated.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products with at least a three-year history, and subject to change monthly. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total return, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total return. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads. Morningstar Rating is for the specified share class(es) only; other classes may have different performance characteristics. ©2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Distribution Rate is calculated by annualizing the most recent distribution amount paid, divided by the closing market price or NAV as of the date indicated. The Distribution Rate calculation includes income and excludes special distributions. The Distribution Rate is subject to change and is not guaranteed nor a quotation of fund performance.
With Waiver means the performance quote reflects any applicable expense reductions and fee waivers.
During periods of rising inflation, fund yields can vary significantly from month-to-month and may not be repeated.
30-Day SEC Yield is calculated using the net income (interest and dividends) per share earned over a trailing 30-day period (annualized), divided by the fund’s share price at the end of that period. It may not equal the fund’s actual income distribution rate, which reflects the fund’s past dividends paid to shareholders.
Gross Expense Ratio reflects the total annual operating expenses for the share class shown, prior to the deduction of any waiver or reimbursement. Actual expenses may be higher and may impact portfolio returns. Net Expense Ratio reflects total expenses after any fee waivers, implemented expense caps or reimbursements. If a fund has contractual fee waivers, expense caps and/or reimbursements, the expiration date can be found by clicking on the information button next to the net expense ratio. Additional amounts may be voluntarily waived and/or reimbursed and may be modified or discontinued at any time without notice. Expense ratios are as of the most recent prospectus or annual report.
Net Expense Ratio represents the expense ratio applicable to investors.
©2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

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FLUD Franklin Ultra Short Bond ETF

Popular Documents

Overview

Fund Facts

Fund description

Expenses & Fees

Identifiers

Average Annual Total Returns As of 05/31/2026

Top Sectors

Additional Fund Info

Trading Characteristics

Manager and Commentary

About the Team

Commentary Highlights

Latest Insights

Performance

Average Annual Total Returns

Ratings

Portfolio

Assets

Positions

Portfolio Statistics

Sector Allocation

Holdings
As of 06/10/2026 (Updated Daily)

Distributions & Tax

Pricing

Documents

Risks

Important Information

Footnotes