Franklin Liberty International Aggregate Bond ETF

The fund seeks total return by investing in companies outside the United States.

The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team invests significantly in bonds and investments that provide exposure to bonds.

The team invests predominantly in fixed and floating-rate bonds issued by governments, government agencies and governmental-related or corporate issuers located outside the U.S.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

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 net assets are invested in issuers located in at least three countries (excluding the U.S.).

Also, the fund may invest without limit in developing or emerging markets.

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.

The fund may invest up to 20% of its net assets in bonds that are rated below investment grade or, if unrated, to be of comparable quality.