Franklin LibertyQ U.S. Mid Cap Equity ETF

The fund seeks to replicate the total return performance of the benchmark index, before fees and expenses, by investing in mid-size companies in the United States.

The fund employs a passive or indexing investment approach that is designed to track the performance of the Index.

The 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 the component securities of the Underlying Index.

The Underlying Index generally includes companies that have favorable exposure to four investment style factors, such as quality, value, momentum and low volatility.

Additionally, the research team employs a representative sampling strategy to select securities that collectively have an investment profile similar to the Underlying Index.

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 seeks to replicate the composition of the benchmark index, holding each security in approximately the same proportion as its weighting in the Index.

Also, 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.