Expect more from Government Bonds

Important Legal Information

Effective June 1, 2016, Franklin Short Duration U.S. Government ETF was renamed the Franklin Liberty Short Duration U.S. Government ETF.

Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. Investment return and principal value will fluctuate with market conditions, and you may have a gain or loss when you sell your shares.

All investments involve risks, including possible loss of principal. Interest rate movements, unscheduled mortgage prepayments and other risk factors will affect the fund’s share price and yield. Bond prices, and thus a fund’s share price, generally move in the opposite direction of interest rates. Therefore, as the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline. Changes in the financial strength of a bond issuer or in a bond’s credit rating may affect its value. These and other risks are discussed in the fund’s prospectus.

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.

For more information on any of our funds, contact your financial advisor or download a free prospectus. Investors should carefully consider a fund's investment goals, risks, sales charges and expenses before investing. The prospectus contains this and other information. Please read the prospectus carefully before investing or sending money.

ETF shares may be bought or sold throughout the day at their market price, 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.

The trading prices of the fund's shares in the secondary market generally differ from the fund's daily NAV and are affected by market forces such as supply and demand, economic conditions and other factors. Information regarding the intraday value of shares of the fund, also known as the "indicative optimized portfolio value" ("IOPV"), is disseminated every 15 seconds throughout the trading day by the national securities exchange on which the fund's shares are listed or by market data vendors or other information providers. Therefore, the IOPV should not be viewed as a "real-time" update of the fund's NAV, which is computed only once a day.

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 between 25,000 to 200,000 shares or multiples thereof. Each "creator" or "Authorized Participant" enters into an authorized participant agreement with Franklin Templeton Distributors, Inc, an affiliate of Franklin Advisory Services, LLC. Only an Authorized Participant may create or redeem Creation Units directly with the fund.

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

The comments, opinions and analyses are the personal views expressed by the investment manager and are intended to be for informational purposes and general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. The information provided in this material is rendered as at publication date and may change without notice and it is not intended as a complete analysis of every material fact regarding any country, region, market or investment.

Footnotes

¹Source: Franklin Templeton. Data as of February 28, 2020.

²Source: Franklin Templeton. Data as of February 28, 2020. 30-day SEC yield is 1.81% w/waiver and 1.64% w/out waiver as of 2/28/2020. The fund's 30-day standardized yield is calculated over a trailing 30-day period using the yield to maturity on bonds and/or the dividends accrued on stocks. It may not equal the fund's actual income distribution rate, which reflects the fund's past dividends paid to shareholders. 30-day standardized yield w/waiver: The fund has a fee waiver and/or expense reimbursement contractually guaranteed through July 31, 2021. Fund investment results reflect the fee waiver and/or expense reimbursement; without this, the results would have been lower.

³Money Markets are represented by the U.S. Benchmark Bill—1 Month. Source: Bloomberg. U.S. Gov Bonds 1-3 Year Maturity are represented by Bloomberg Barclays U.S. Government 1-3 Yr TR USD Index. U.S. Intermediate Government is represented by Bloomberg Barclays U.S. Aggregate Government-Intermediate Index. US MBS represented by Bloomberg BarclaysBloomberg Barclays U.S. MBS Index. Agencies represented by Bloomberg Barclays U.S. Aggregate: Agencies Index