FTMS

Franklin Short-Term Municipal Income ETF seeks as high a level of current income exempt from federal income tax as the adviser believes is consistent with preservation of capital. The fund invests mainly in bonds that pay interest that is exempt from federal income tax and that have short-term maturities. The bonds the fund invests in are mainly investment-grade in quality. Under normal circumstances, the fund invests at least 80% of its net assets in tax-exempt investments, which for purposes of this policy include investments paying interest subject to the federal AMT for individuals.