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    Franklin Short Duration U.S. Government ETF

    Type: Active | Symbol: FTSD | CUSIP: 353 506 108

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    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.
     
    Investment Management TeamAs of 08/31/2014
     Years with FirmYears Experience
    Roger Bayston (PDF)2328
    Patrick A. Klein (PDF)99

    Fund Strategy


    • The fund focuses on short-term securities, issued or guaranteed by the U.S. government, its agencies or instrumentalities.§
    • The fund invests across multiple investment grade debt sectors, including government and government agency debt securities, Treasury Inflation-Protected Securities (TIPs), Adjustable Rate Mortgages (ARMs) and Mortgage-Backed Securities (MBS).
    • The team analyzes key factors in making investment decisions, including interest rates, inflation and risk premiums.
    § Some 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. The fund’s yield and share price are not guaranteed and will fluctuate with market conditions. Please see the fund’s prospectus for the level of credit support offered by government agency or instrumentality issues.
     

    Current Fund Commentary 

    June 30, 2014

    Quarterly Commentary

    • US economic data released toward the end of the second quarter of 2014 led to successive revisions to growth data that eventually resulted in a meaningful contraction of economic activity for the first quarter, rather than the small increase initially reported.
    •  Over the quarter, the fund’s exposure to agency adjustable-rate mortgages (ARMs) contributed to performance as ARMs, in general, outperformed similar-duration Treasuries over the period. The fund’s underweight duration relative to the index also helped performance as rates at the front end of the yield curve increased over the quarter.
    • There were no significant detractors over the period.
    Important Legal Information
    [Read full disclosure]

    Net Asset Value (NAV) represents an ETF’s per-share value. The NAV per share is determined by dividing the total NAV of the fund by the number of shares outstanding. The fund calculates the NAV per share each business day normally as of the close of regular trading on the New York Stock Exchange (NYSE) (normally 1:00 p.m. Pacific time) or earlier when the NYSE closes early because trading has been halted for the day.

    ETF shares may be bought or sold throughout the day at their market price on the exchange on which they are listed. However, there can be no guarantee that an active trading market for ETF shares will develop or be maintained, or that their listing will continue or remain unchanged. While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.

    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 of 25,000 shares or multiples thereof. Each “creator” or “Authorized Participant” enters into an authorized participant agreement with Franklin Templeton Distributors, Inc., an affiliate of Franklin Advisers, Inc. Only an Authorized Participant may create or redeem Creation Units directly with the fund.

    The commentary does not provide a complete analysis of every material fact regarding any market, industry, security or fund. Holdings are subject to change. Opinions expressed are as of the date of the piece and can change without notice. A manager’s assessment of a particular market, industry, security, investment or strategy in the commentary is not intended as an investment recommendation nor does it constitute investment advice; it is intended only to provide insight into the fund’s portfolio selection process.

    Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN/342-5236 or visit etf.franklintempleton.com. Please carefully read a prospectus before you invest or send money.

    [Read full disclosure]
     

    Price Details

    NAV (As of  09/19/2014)$99.75
    NAV Change   $-0.01 | -0.01%
     
    Market Price (As of  09/19/2014) $99.79
    Market Price Change   $0.11 | 0.11%
     

    Fund Information

    Fund Inception DateNovember 04, 2013
    Shares Outstanding276,000
    Total Fund Net Assets27,517,669.74
     
    Fund SectorShort Government
    Duration CategoryLow
    Benchmark NameBarclays U.S. Government Index: 1-3 Year Component
    Gross Expense Ratio 10.43%
    Net Expense Ratio0.30%
    Distribution Rate1.86%
    30-day Standardized Yield 2, 30.91%
    30-day Standardized Yield w/o Waiver 41.10%
     

    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.

     

    Trading Characteristics

    Trading Related Data (As of  09/19/2014)
    Daily Volume (Shares)2,700
    Premium/Discount as of market close0.04%
    Bid/Ask Spread$0.47
     

    Tickers

    NAV Per ShareFTSD.NV
    End Trading Value/Intraday NAVFTSD.IV
    Shares OutstandingFTSD.SO
    Estimated CashFTSD.EU
    Total CashFTSD.TC
     

    Fund Literature

    Fund Documents