Fixed Income Active

FTSD Franklin Short Duration U.S. Government ETF

Competitive income with zero corporate credit risk. Pursues the highest-yielding short-term opportunities across debt issued or guaranteed by the US government, agencies or government owned corporations.
Differentiated portfolio construction approach. Actively manages duration positioning, sector allocation and security selection with a premium placed on stability of principal when investing.
Sector expertise. Managed by an experienced investment team that has been investing in US government bonds since 1947.

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 preservation of shareholders' capital by investing at least 80% of its net assets in securities issued or guaranteed by the U.S. government, its agencies, or instrumentalities. The fund targets an estimated average portfolio duration of three (3) years or less.

Benchmark: Bloomberg US Government (1-3 Year) Index
Fund Inception Date: 11/04/2013
Listing Exchange: NYSE Arca
Dividend Frequency, if any: Monthly
Distribution Rate at NAV⁴As of 10/21/2026 (Updated Daily): 4.45%
30-Day SEC Yield—With Waiver^5,6,7As of 09/30/2026 (Updated Monthly): 4.42%
30-Day SEC Yield—Without Waiver^6,7As of 09/30/2026 (Updated Monthly): 4.41%

Expenses & Fees

As of 08/01/2026

Gross Expense Ratio: 0.25%
Net Expense Ratio⁸: 0.25%

Identifiers

Ticker: FTSD
CUSIP Code: 353506108
ISIN Code: US3535061085
Bloomberg Code: FTSD US

Average Annual Total Returns As of 09/30/2026

View performance section for additional info As of 09/30/2026

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

2.07%1 Year
4.57%3 Years
2.44%5 Years
1.95%10 Years
1.72%Since Inception
11/04/2013

Top Sectors

View portfolio section for additional info

As of 10/21/2026 - Notional Exposure % of Total (Updated Daily)

Top Sectors
Mortgage-Backed Securities49.87%
US Treasuries47.23%
Other5.13%
Adjustable Rate Mortgages (ARMs)2.06%
Agency0.24%

Additional Fund Info

Fiscal Year End: March 31
ETF Type: Active
Morningstar Category⁹: Short Government

Trading Characteristics

As of 10/21/2026 (Updated Daily)

Shares Outstanding: 3,951,000
Daily Volume: 87,224
20-Day Average Volume: 46527.90

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.

Franklin Templeton Fixed Income

Managed Fund Since 2024

Managed Fund Since 2021

Managed Fund Since 2013

Latest Insights

October 20, 2026

Muni Monitor Weekly: Muni Rebounds

October 19, 2026

Flash Insights: Resilient Growth, Sticky Inflation

October 14, 2026

Central Bank Watch: Growth Holds—Inflation Bites

October 14, 2026

An update on our ESG scores: October 2026

Performance

Average Annual Total Returns

¹²

As of 09/30/2026

Month End

Quarter End

As of

Franklin Short Duration U.S. Government ETF - Market Price Return (%)

Month End

As of 09/30/2026

1 Year: 2.07

3 Years: 4.57

5 Years: 2.44

10 Years: 1.95

Since Inception(11/04/2013): 1.72

Franklin Short Duration U.S. Government ETF - NAV Return (%)

Month End

As of 09/30/2026

1 Year: 1.97

3 Years: 4.54

5 Years: 2.42

10 Years: 1.97

Since Inception(11/04/2013): 1.73

Bloomberg US Government (1-3 Year) Index (%)

Month End

As of 09/30/2026

1 Year: 1.61

3 Years: 4.07

5 Years: 1.86

10 Years: 1.76

Since Inception(11/04/2013): 1.55

Overall Morningstar Rating: Overall Morningstar Rating: 4 out of 5 stars
As of 09/30/2026

3 Years: 3 Years: 4 out of 5 stars
70 Funds in category

5 Years: 5 Years: 4 out of 5 stars
62 Funds in category

10 Years: 10 Years: 4 out of 5 stars
54 Funds in category

Rating Category: Short Government

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 09/30/2026

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 of10/22/2026 (Updated Daily)

Total Net Assets: $352.59 Million

Positions

As of 10/21/2026 (Updated Daily)

Number of Holdings

Fund: 337

Portfolio Statistics

As of 10/21/2026 (Updated Daily)

Effective Duration

Fund: 1.75 Years
Benchmark: 1.79 Years

Average Weighted Maturity

Fund: 3.82 Years
Benchmark: 1.90 Years

Sector Exposure
Notional exposure figures are estimated and are intended to show the portfolio's direct exposure to securities and indirect exposure, through derivatives. Direct and indirect exposures are subject to change over time and methodologies for calculating indirect exposures vary by derivative type. Portfolio breakdown percentages may not total 100% and may be negative due to rounding, use of derivatives, unsettled trades or other factors.

As of 10/21/2026 - Notional Exposure Duration Contribution (Updated Daily)

Mortgage-Backed Securities

US Treasuries

Other

Adjustable Rate Mortgages (ARMs)

Agency

Cash & Cash Equivalents

Holdings
As of 10/22/2026 (Updated Daily)

US TREASURY N/ 4.25 12/26

US TREASURY N 3.875 12/27

US TREASURY N 4.125 10/26

FNCL 5.5 11/26

US TREASURY N/B 4.5 4/27

IFT - MONEY MARKET PORT

US TREASURY N/ 4.375 7/27

US TREASURY N/B 4.25 1/28

US TREASURY N/ 3.875 5/27

US TREASURY N/ 4.125 2/27

Distributions & Tax

Federal ID Number 46-2329753

For information on tax years prior to 2008, please contact us

These amounts represent distributions paid by the fund, foreign taxes passed through (if any), and other distribution characteristics for the calendar year selected. These amounts are reported to shareholders on Form 1099-DIV.

Distributions per Share ($)

Year

Tax Information
Record Date	Ordinary Dividends Dividends paid by a fund that are derived from interest, dividends, net short-term capital gains and other types of ordinary income earned by the fund. For a fund that elects to pass through its foreign taxes paid (a non-cash item), a shareholder's allotted share of foreign taxes has been added to the “Ordinary Dividends” cash distributions received by the shareholder. If the fund passed through foreign taxes paid and later is refunded any portion of those taxes by a foreign tax authority, any interest paid to the fund on that refund is also required to be included in “Ordinary Dividends”.	Qualified Dividends The portion of a fund’s “Ordinary Dividends” that may be eligible for a reduced capital gain tax rate. To be eligible for the lower tax rates, certain holding periods apply and shareholders should consult their tax advisor to determine the amount eligible for the reduced rate. This amount represents both cash distributions and non-cash amounts, such as foreign taxes paid, that have been allocated to shareholders.	Capital Gain Distributions	Unrecaptured Section 1250 Gain	Non-Taxable Return Of Capital	Section 199a Dividends The portion of a fund’s “Ordinary Dividends” generated by a real estate investment trust or earned by a fund from its investments in real estate investment trusts, subject to limitations. Individual (non-corporate) shareholders may be entitled to a special deduction from gross income for “Section 199A Dividends” received from a fund. To qualify for this deduction certain holding periods apply and shareholders should consult their tax advisor.	Foreign Tax Paid	Exempt Interest Dividends	Interest on Tax Reclaim Refunds
Feb 03	0.41091	—	—	—	—	—	—	—	—
Mar 03	0.31192	—	—	—	—	—	—	—	—
Apr 01	0.34158	—	—	—	—	—	—	—	—
May 01	0.36678	—	—	—	—	—	—	—	—
Jun 02	0.34846	—	—	—	—	—	—	—	—
Jul 01	0.32267	—	—	—	—	—	—	—	—
Aug 01	0.38464	—	—	—	—	—	—	—	—
Sep 02	0.32984	—	—	—	—	—	—	—	—
Oct 01	0.34365	—	—	—	—	—	—	—	—
Nov 03	0.38732	—	—	—	—	—	—	—	—
Dec 01	0.28957	—	—	—	—	—	—	—	—
Dec 19	0.41163	—	—	—	—	—	—	—	—
	4.24897	—	—	—	—	—	—	—	—

Feb 03

Mar 03

Apr 01

May 01

Jun 02

Jul 01

Aug 01

Sep 02

Oct 01

Nov 03

Dec 01

Dec 19

Supplemental Tax Information

Foreign Source Income: —
Foreign Source Qualified Dividends: —
Direct U.S. Government Obligations The portion of “Ordinary Dividends” attributable to earnings from US Treasury and certain other government securities may be categorized as a fund containing US government obligations. This income may be exempt from state personal income taxes. The percentage for direct US government obligation interests available for tax-exempt treatment may be limited in states that require the fund to meet certain minimum thresholds. Shareholders should consult their tax advisor to determine the availability of exemptions in their state.: 27.08%
Specified Private Activity Bond Interest: —
Dividends Received Deduction: —
Section 163(j): —
Indiana Resident Taxable Income: —
Utah Resident Taxable Income The portion of “Exempt-Interest Dividends” subject to Utah income tax. Subject to certain exceptions, the state of Utah provides that income earned from non-federal government entities outside of Utah (non-Utah municipal bonds) is taxable to Utah resident shareholders. Income earned from states that do not tax Utah obligations are also exempt. Shareholders should consult their tax advisor about applicability.: —

Franklin Templeton and its specialized investment managers 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. Each investor’s tax situation is different, and is based on an individual’s tax bracket, type of account used for investment and other factors. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

Pricing

Pricing History

As of 10/22/2026 (Updated Daily)

Time Period

From

From Date

To Date

Daily Fund Prices

As of 10/22/2026

Share Prices

As of 10/22/2026

NAV ¹(Net Asset Value): $89.24
NAV Change ¹: $0.21
NAV Change (%) ¹: 0.24%
Market Price ¹: $89.29
Market Price Change ¹: $0.30
Market Price Change (%) ¹: 0.34%

52-Week Range

Highest NAV As of 02/27/2026: $91.21
Lowest NAV As of 10/05/2026: $88.57
Highest Market Price As of 01/30/2026: $91.23
Lowest Market Price As of 10/05/2026: $88.59

Premium / Discount

As of 10/22/2026

30-Day Median Bid/Ask Spread: 0.10%
Bid / Ask Spread: $0.09
Avg. of Market Price vs. NAV since Inception: 0.01%
Avg. of Market Price vs. NAV at Close ¹⁰: 0.06%

Documents

Fund Literature

Factsheet - Franklin Short Duration U.S. Government ETF

Regulatory Documents

Annual Report - Franklin Short Duration U.S. Government ETF - Single Class

Annual Financial Statements and Other Information - Franklin Short Duration U.S. Government ETF

Semi-Annual Report - Franklin Short Duration U.S. Government ETF - Single Class

Semi-Annual Financial Statements and Other Information - Franklin Short Duration U.S. Government ETF

Prospectus - Franklin Short Duration US Government ETF

Summary Prospectus - Franklin Short Duration US Government ETF

Statement of Additional Information - Franklin Short Duration US Government ETF

Mailed hardcopies unavailable.

Fiscal Q1 Holdings - Franklin Short Duration US Government ETF

Mailed hardcopies unavailable.

Fiscal Q3 Holdings - Franklin Short Duration US Government ETF

Mailed hardcopies unavailable.

View Proxy Voting Records and Proxy Voting Policies

Risks

All investments involve risks, including possible loss of principal. 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. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. 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. 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 Bloomberg US Government (1-3 Year) Index includes public obligations of the U.S. Treasury with at least one year up to, but not including, three years to final maturity and publicly issued debt of U.S. government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. government.
Source: Bloomberg Indices.

Securities owned by the fund, but not shares of the fund, are guaranteed by the U.S. government, its agencies or instrumentalities as to timely payment of principal and interest.

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. ©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.
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.
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.
Premiums or discounts are the differences between the NAV and the Market Price of the Fund on a given day, generally at the time the NAV is calculated. A premium is the amount that the Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Fund is trading below the reported NAV, expressed as a percentage of the NAV. The since inception premium/discount average is calculated by averaging the daily premium/discount since the inception of the fund. The daily premium/discount is the difference between the daily market price for shares of the Fund and the Fund's net asset value. The Market Price is determined using the closing price as of 4 pm ET on each trading day (when NAV is normally determined for most funds).
Premium / Discount reflects the difference between the NAV and the Market Price of the fund, and represents the amount that the fund is trading above or below its NAV, expressed as a percentage of the NAV.
Returns are average annualized total returns, except for those periods of less than one year, which are cumulative. Market Price returns are calculated using the closing price as of 4 pm ET on each trading day (when NAV is normally determined for most funds), and do not represent the returns you would receive if you traded shares at other times. Since shares of the fund did not trade in the secondary market until after the fund's inception, for the period from inception to the first day of secondary trading (11/6/13), the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Index returns are adjusted for withholding taxes. Performance for the ETF/ETP and its benchmark index are as of the ETF's/ETP's last trading day before the end of the period.

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FTSD Franklin Short Duration U.S. Government ETF

Popular Documents

Overview

Fund description

Expenses & Fees

Identifiers

Top Sectors

Additional Fund Info

Trading Characteristics

Manager and Commentary

About the Team

Latest Insights

Performance

Average Annual Total Returns

Chart

Ratings 3

Portfolio

Chart

Distributions & Tax

Federal ID Number 46-2329753

Pricing

Chart

Daily Fund Prices

Documents

Fund Literature

Regulatory Documents

Risks

Important Information

Footnotes

Ratings ³