Franklin Templeton to Reposition Four ETFs U.S.

Franklin Templeton today announced plans to reposition and rename four index-based ETFs, effective on or about August 1, 2022. With this repositioning, the firm will change the ticker symbols and investment goal, strategies and policies for each Fund. The index provider for each Fund will change from MSCI Inc. to Morningstar, Inc. and the underlying index for each Fund will change as described below. With these changes, the firm will also reduce the unitary management fee rate for each Fund.

The following ETFs will seek to track an index that seeks a higher dividend yield than the broad market (as measured by each respective parent index), while limiting expected tracking error to the parent index:

Franklin U.S. Core Dividend Tilt Index ETF (UDIV) will seek to provide investment results that closely correspond, before fees and expenses, to the performance of the Morningstar^® US Dividend Enhanced Select Index^SM (the Underlying Index). The Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc. The Underlying Index starts from the Morningstar^® US Target Market Exposure Index (Parent Index) and aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index (i.e., to provide a “dividend tilt” through the selection and weighting of securities from the Parent Index). The Parent Index targets large- and mid-capitalization U.S. stocks representing the top 85% of the U.S. equity market by float-adjusted market capitalization.

Franklin International Core Dividend Tilt Index ETF (DIVI) will seek to provide investment results that closely correspond, before fees and expenses, to the performance of the Morningstar^® Developed Markets ex-North America Dividend Enhanced Select Index^SM (the Underlying Index). The Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc. The Underlying Index starts from the Morningstar^® Developed Markets ex-North America Target Market Exposure Index (Parent Index) and aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index (i.e., to provide a “dividend tilt” through the selection and weighting of securities from the Parent Index). The Parent Index is designed to cover 85% of the float-adjusted market capitalization of the developed markets equity markets excluding North America.

Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) will seek to provide investment results that closely correspond, before fees and expenses, to the performance of the Morningstar^® Emerging Markets Dividend Enhanced Select Index^SM (the Underlying Index). The Underlying Index is a systematic, rules-based proprietary index that is maintained and calculated by Morningstar, Inc. The Underlying Index starts from the Morningstar® Emerging Markets Target Market Exposure Index (Parent Index) and aims to deliver a higher dividend yield than the Parent Index, while limiting expected tracking error to the Parent Index (i.e., to provide a “dividend tilt” through the selection and weighting of securities from the Parent Index). The Parent Index is designed to cover 85% of the float-adjusted market capitalization of emerging equity markets.

The following ETF will seek to track a market-cap weighted index, which targets large- and mid-capitalization U.S. stocks:

Franklin U.S. Equity Index ETF (USPX) will seek to provide investment results that closely correspond, before fees and expenses, to the performance of the Morningstar^® US Target Market Exposure Index (the Underlying Index). The Underlying Index is a free float-adjusted market capitalization weighted index that is maintained and calculated by Morningstar, Inc. The Underlying Index targets large- and mid-capitalization U.S. stocks representing the top 85% of the U.S. equity market by float-adjusted market capitalization.

Franklin Templeton’s ETF platform is designed to seek better client outcomes through a diverse and innovative product suite offered across asset classes and geographies. Over 50 ETFs are offered in the U.S., providing solutions for a range of market conditions and investment opportunities through active, smart beta and passively managed ETFs. Our U.S. ETF platform has approximately $13 billion in assets under management as of April 30, 2022 and is supported by the strength and resources of one of the world’s largest asset managers.

About Franklin Templeton

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers boutique specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has 75 years of investment experience and approximately $1.5 trillion in assets under management as of April 30, 2022. For more information, please visit franklintempleton.com and follow us on LinkedIn, Twitter and Facebook.

All investments involve risk, including possible loss of principal. Investments in foreign and developing markets involve heightened risks related to the same factors, in addition to those associated with these markets’ smaller size, lesser liquidity and lack of established legal, political, business and social frameworks to support securities markets. In addition to investments in large-capitalization companies, investments may be made in small-cap and mid-cap companies which involve a higher degree of risk and volatility than investments in larger, more established companies. Dividends may fluctuate and a company may reduce or eliminate its dividend at any time. Performance of a fund may vary significantly from the performance of an index, as a result of transaction costs, expenses and other factors.

Investors cannot invest directly in an index, and unmanaged index returns do not reflect any fees, expenses or sales charges.

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.

The Morningstar^® US Dividend Enhanced Select Index, Morningstar^® Developed Markets ex-North America Dividend Enhanced Select Index, Morningstar^® Emerging Markets Dividend Enhanced Select Index, and Morningstar^® US Target Market Exposure Index are custom indexes that are owned and calculated by Morningstar, Inc. The Franklin Templeton ETFs discussed herein are not sponsored, endorsed, issued, sold or promoted by or affiliated with Morningstar, Inc. Morningstar Inc. does not make any representation regarding the advisability of investing in any Franklin Templeton ETF. See the prospectus or statement of additional information of a Franklin Templeton ETF for further information.

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 of 200,000 (or 100,000 for the Franklin International Core Dividend Tilt Index ETF) shares or multiples thereof. Each "creator" or "Authorized Participant" enters into an authorized participant agreement with Franklin Templeton Distributors, Inc, an affiliate of the fund's sponsor, Franklin Holdings, 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.

Before investing, carefully consider a fund’s investment objectives, risks, charges and expenses. You can find this and other information in each prospectus, or summary prospectus, if available, at www.franklintempleton.com. Please read it carefully.

Franklin Distributors, LLC. Member FINRA, SIPC. Morningstar, Inc is not affiliated with Franklin Templeton.

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