UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-23096
Legg Mason ETF Investment Trust
(Exact name of registrant as specified in charter)
One Madison Avenue, 17th Floor, New York, NY 10010
(Address of principal executive offices) (Zip code)
Harris Goldblat
Franklin Templeton
100 First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1-877-721-1926
Date of fiscal year end: March 31
Date of reporting period: September 30, 2025
| ITEM 1. | REPORT TO STOCKHOLDERS. |
(a) The Report to Shareholders is filed herewith
|
Franklin ClearBridge Enhanced Income ETF
|
 |
|
|
YLDE | The Nasdaq Stock Market LLC
|
||
|
Semi-Annual Shareholder Report | September 30, 2025
|
||
 |
||
This semi-annual shareholder report contains important information about Franklin ClearBridge Enhanced Income ETF for the period April 1, 2025, to September 30, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
|
Fund Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment†
|
|
Franklin ClearBridge Enhanced Income ETF
|
$25
|
0.47%
|
| † | Annualized. |
KEY FUND STATISTICS (as of September 30, 2025)
|
Total Net Assets
|
$117,326,150
|
|
Total Number of Portfolio Holdings (excludes derivatives, except purchased options, if any)
|
55
|
|
Portfolio Turnover Rate
|
22%
|
WHAT DID THE FUND INVEST IN? (as of September 30, 2025)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
 |
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| Franklin ClearBridge Enhanced Income ETF | PAGE 1 | YLDE-STSR-1125 |
|
|
 |
|
ClearBridge Large Cap Growth Select ETF
|
|
|
LRGE | The Nasdaq Stock Market LLC
|
Semi-Annual Shareholder Report | September 30, 2025
|
|
|
|
This semi-annual shareholder report contains important information about ClearBridge Large Cap Growth Select ETF (previously known as ClearBridge Large Cap Growth ESG ETF ) for the period April 1, 2025, to September 30, 2025.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)
|
Fund Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment†
|
|
ClearBridge Large Cap Growth Select ETF
|
$26
|
0.47%
|
| † | Annualized. |
KEY FUND STATISTICS (as of September 30, 2025)
|
Total Net Assets
|
$447,129,762
|
|
Total Number of Portfolio Holdings
|
26
|
|
Portfolio Turnover Rate
|
27%
|
WHAT DID THE FUND INVEST IN? (as of September 30, 2025)
Portfolio Composition* (% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
|
| ClearBridge Large Cap Growth Select ETF | PAGE 1 | LRGE-STSR-1125 |
(b) Not applicable
| ITEM 2. | CODE OF ETHICS. |
Not applicable.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
| (a) | Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR. |
| (b) | Not applicable. |
| ITEM 7. | FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
ClearBridge ETFs
Financial Statements and Other Important Information
Semi-Annual | September
30, 2025 
Franklin ClearBridge Enhanced Income ETF
ClearBridge Large Cap Growth Select ETF
Schedules of Investments
(unaudited)
September 30, 2025
Franklin
ClearBridge Enhanced Income ETF
(Percentages
shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
Common
Stocks — 98.4% | |||||
|
Communication
Services — 9.7% | |||||
|
Entertainment
— 0.9% | |||||
|
Walt
Disney Co. |
|
9,688
|
$1,109,276
| ||
|
Interactive
Media & Services — 4.2% | |||||
|
Alphabet
Inc., Class A Shares |
|
10,645
|
2,587,800
| ||
|
Meta
Platforms Inc., Class A Shares |
|
3,116
|
2,288,328
| ||
|
Total
Interactive Media & Services |
4,876,128
| ||||
|
Media
— 2.4% | |||||
|
Comcast
Corp., Class A Shares |
|
89,437
|
2,810,110
| ||
|
Wireless
Telecommunication Services — 2.2% | |||||
|
T-Mobile
US Inc. |
|
10,601
|
2,537,667
| ||
|
| |||||
|
Total
Communication Services |
11,333,181
| ||||
|
Consumer
Discretionary — 3.1% | |||||
|
Specialty
Retail — 3.1% | |||||
|
Home
Depot Inc. |
|
4,704
|
1,906,014
| ||
|
Industria
de Diseno Textil SA, ADR |
|
129,754
|
1,791,903
| ||
|
| |||||
|
Total
Consumer Discretionary |
3,697,917
| ||||
|
Consumer
Staples — 8.3% | |||||
|
Beverages
— 2.3% | |||||
|
Coca-Cola
Co. |
|
29,465
|
1,954,119
| ||
|
Diageo
PLC, ADR |
|
8,170
|
779,663
| ||
|
Total
Beverages |
2,733,782
| ||||
|
Food
Products — 2.8% | |||||
|
Nestle
SA, ADR |
|
36,416
|
3,341,896
| ||
|
Household
Products — 0.9% | |||||
|
Procter
& Gamble Co. |
|
6,700
|
1,029,455
| ||
|
Personal
Care Products — 2.3% | |||||
|
Unilever
PLC, ADR |
|
44,883
|
2,660,664
| ||
|
| |||||
|
Total
Consumer Staples |
9,765,797
| ||||
|
Energy
— 10.7% | |||||
|
Oil,
Gas & Consumable Fuels — 10.7% | |||||
|
Enbridge
Inc. |
|
80,703
|
4,072,273
| ||
|
EQT
Corp. |
|
17,188
|
935,543
| ||
|
Exxon
Mobil Corp. |
|
37,232
|
4,197,908
| ||
|
Williams
Cos. Inc. |
|
52,704
|
3,338,799
| ||
|
| |||||
|
Total
Energy |
12,544,523
| ||||
|
Financials
— 14.2% | |||||
|
Banks
— 3.8% | |||||
|
JPMorgan
Chase & Co. |
|
9,162
|
2,889,970
| ||
|
PNC
Financial Services Group Inc. |
|
8,082
|
1,623,916
| ||
|
Total
Banks |
4,513,886
| ||||
|
Consumer
Finance — 1.5% | |||||
|
Capital
One Financial Corp. |
|
7,998
|
1,700,215
| ||
|
Financial
Services — 3.7% | |||||
|
Apollo
Global Management Inc. |
|
16,357
|
2,179,897
| ||
|
Visa
Inc., Class A Shares |
|
6,352
|
2,168,446
| ||
|
Total
Financial Services |
4,348,343
| ||||
See
Notes to Financial Statements.
1
ClearBridge
ETFs 2025 Semi-Annual Report
Schedules of Investments
(unaudited) (cont’d)
September 30, 2025
Franklin
ClearBridge Enhanced Income ETF
(Percentages
shown based on Fund net assets)
See
Notes to Financial Statements.
2
ClearBridge
ETFs 2025 Semi-Annual Report
Franklin
ClearBridge Enhanced Income ETF
(Percentages
shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
| |||||
|
Materials
— 5.7% | |||||
|
Chemicals
— 2.9% | |||||
|
Air
Products & Chemicals Inc. |
|
4,753
|
$1,296,238
| ||
|
Linde
PLC |
|
4,409
|
2,094,275
| ||
|
Total
Chemicals |
3,390,513
| ||||
|
Construction
Materials — 1.8% | |||||
|
Vulcan
Materials Co. |
|
6,958
|
2,140,420
| ||
|
Metals
& Mining — 1.0% | |||||
|
Freeport-McMoRan
Inc. |
|
29,481
|
1,156,245
| ||
|
| |||||
|
Total
Materials |
6,687,178
| ||||
|
Real
Estate — 5.2% | |||||
|
Residential
REITs — 2.0% | |||||
|
AvalonBay
Communities Inc. |
|
12,264
|
2,369,037
| ||
|
Specialized
REITs — 3.2% | |||||
|
American
Tower Corp. |
|
9,858
|
1,895,891
| ||
|
Public
Storage |
|
6,197
|
1,790,003
| ||
|
Total
Specialized REITs |
3,685,894
| ||||
|
| |||||
|
Total
Real Estate |
6,054,931
| ||||
|
Utilities
— 5.4% | |||||
|
Electric
Utilities — 1.1% | |||||
|
Edison
International |
|
11,320
|
625,770
| ||
|
PG&E
Corp. |
|
47,616
|
718,049
| ||
|
Total
Electric Utilities |
1,343,819
| ||||
|
Multi-Utilities
— 4.3% | |||||
|
DTE
Energy Co. |
|
8,972
|
1,268,910
| ||
|
Sempra
|
|
41,429
|
3,727,781
| ||
|
Total
Multi-Utilities |
4,996,691
| ||||
|
| |||||
|
Total
Utilities |
6,340,510
| ||||
|
Total
Investments before Short-Term Investments (Cost — $97,100,944) |
115,473,700
| ||||
|
|
|
Rate
|
|
|
|
|
Short-Term
Investments — 2.0% | |||||
|
JPMorgan
100% U.S. Treasury Securities Money Market Fund, Institutional Class
(Cost
— $2,343,040) |
3.958%
|
|
2,343,040
|
2,343,040
(a)
| |
|
Total
Investments — 100.4% (Cost — $99,443,984) |
117,816,740
| ||||
|
Liabilities
in Excess of Other Assets — (0.4)% |
(490,590
) | ||||
|
Total
Net Assets — 100.0% |
$117,326,150
| ||||
|
(a)
|
Rate shown is
one-day yield as of the end of the reporting period.
|
|
Abbreviation(s)
used in this schedule: | ||
|
ADR
|
—
|
American
Depositary Receipts |
At September 30, 2025, the Fund had the following open
written options contracts:
|
Exchange-Traded
Written Options | ||||||
|
Security
|
|
Expiration
Date
|
Strike
Price
|
Contracts
|
Notional
Amount
|
Value
|
|
S&P
500 Index, Call |
10/3/25
|
$6,690.000
|
30 |
$20,065,380
|
$(65,550)
| |
See
Notes to Financial Statements.
3
ClearBridge
ETFs 2025 Semi-Annual Report
Schedules of Investments
(unaudited) (cont’d)
September 30, 2025
Franklin
ClearBridge Enhanced Income ETF
See
Notes to Financial Statements.
4
ClearBridge
ETFs 2025 Semi-Annual Report
ClearBridge
Large Cap Growth Select ETF
(Percentages
shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
Common
Stocks — 98.3% | |||||
|
Communication
Services — 12.7% | |||||
|
Diversified
Telecommunication Services — 0.0%†† | |||||
|
GCI
Liberty Inc., Class A Shares (Escrow) |
|
3,549
|
$7
*(a)(b)
| ||
|
Entertainment
— 4.3% | |||||
|
Netflix
Inc. |
|
15,927
|
19,095,199
*
| ||
|
Interactive
Media & Services — 8.4% | |||||
|
Meta
Platforms Inc., Class A Shares |
|
51,426
|
37,766,226
| ||
|
| |||||
|
Total
Communication Services |
56,861,432
| ||||
|
Consumer
Discretionary — 18.2% | |||||
|
Automobiles
— 6.2% | |||||
|
Tesla
Inc. |
|
62,364
|
27,734,518
*
| ||
|
Broadline
Retail — 9.4% | |||||
|
Amazon.com
Inc. |
|
191,850
|
42,124,505
*
| ||
|
Hotels,
Restaurants & Leisure — 2.6% | |||||
|
Airbnb
Inc., Class A Shares |
|
95,569
|
11,603,988
*
| ||
|
| |||||
|
Total
Consumer Discretionary |
81,463,011
| ||||
|
Consumer
Staples — 1.6% | |||||
|
Beverages
— 1.6% | |||||
|
Monster
Beverage Corp. |
|
106,078
|
7,140,110
*
| ||
|
| |||||
|
Financials
— 8.1% | |||||
|
Financial
Services — 6.6% | |||||
|
PayPal
Holdings Inc. |
|
142,956
|
9,586,629
*
| ||
|
Visa
Inc., Class A Shares |
|
58,718
|
20,045,151
| ||
|
Total
Financial Services |
29,631,780
| ||||
|
Insurance
— 1.5% | |||||
|
Marsh
& McLennan Cos. Inc. |
|
32,812
|
6,612,603
| ||
|
| |||||
|
Total
Financials |
36,244,383
| ||||
|
Health
Care — 4.7% | |||||
|
Health
Care Equipment & Supplies — 2.5% | |||||
|
Intuitive
Surgical Inc. |
|
24,878
|
11,126,188
*
| ||
|
Life
Sciences Tools & Services — 2.2% | |||||
|
Thermo
Fisher Scientific Inc. |
|
20,148
|
9,772,183
| ||
|
| |||||
|
Total
Health Care |
20,898,371
| ||||
|
Industrials
— 4.9% | |||||
|
Electrical
Equipment — 3.2% | |||||
|
Eaton
Corp. PLC |
|
37,802
|
14,147,398
| ||
|
Ground
Transportation — 1.7% | |||||
|
Uber
Technologies Inc. |
|
77,139
|
7,557,308
*
| ||
|
| |||||
|
Total
Industrials |
21,704,706
| ||||
|
Information
Technology — 46.1% | |||||
|
Semiconductors
& Semiconductor Equipment — 21.3% | |||||
|
ASML
Holding NV, Registered Shares |
|
10,554
|
10,217,222
| ||
|
NVIDIA
Corp. |
|
378,223
|
70,568,847
| ||
|
Taiwan
Semiconductor Manufacturing Co. Ltd., ADR |
|
52,193
|
14,576,983
| ||
|
Total
Semiconductors & Semiconductor Equipment |
95,363,052
| ||||
|
Software
— 14.8% | |||||
|
Datadog
Inc., Class A Shares |
|
32,700
|
4,656,480
*
| ||
See
Notes to Financial Statements.
5
ClearBridge
ETFs 2025 Semi-Annual Report
Schedules of Investments
(unaudited) (cont’d)
September 30, 2025
ClearBridge
Large Cap Growth Select ETF
(Percentages
shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
| |||||
|
Software
— continued | |||||
|
Intuit
Inc. |
|
17,766
|
$12,132,579
| ||
|
Oracle
Corp. |
|
45,512
|
12,799,795
| ||
|
Palo
Alto Networks Inc. |
|
80,977
|
16,488,537
*
| ||
|
ServiceNow
Inc. |
|
10,554
|
9,712,635
*
| ||
|
Synopsys
Inc. |
|
20,724
|
10,225,014
*
| ||
|
Total
Software |
66,015,040
| ||||
|
Technology
Hardware, Storage & Peripherals — 10.0% | |||||
|
Apple
Inc. |
|
176,534
|
44,950,853
| ||
|
| |||||
|
Total
Information Technology |
206,328,945
| ||||
|
Materials
— 2.0% | |||||
|
Chemicals
— 2.0% | |||||
|
Sherwin-Williams
Co. |
|
25,521
|
8,836,901
| ||
|
Total
Investments before Short-Term Investments (Cost — $304,793,391) |
439,477,859
| ||||
|
|
|
Rate
|
|
|
|
|
Short-Term
Investments — 1.7% | |||||
|
JPMorgan
100% U.S. Treasury Securities Money Market Fund, Institutional Class
(Cost
— $7,757,214) |
3.958%
|
|
7,757,214
|
7,757,214
(c)
| |
|
Total
Investments — 100.0% (Cost — $312,550,605) |
447,235,073
| ||||
|
Liabilities
in Excess of Other Assets — (0.0)%†† |
(105,311
) | ||||
|
Total
Net Assets — 100.0% |
$447,129,762
| ||||
|
††
|
Represents less
than 0.1%. |
|
*
|
Non-income producing
security. |
|
(a)
|
Security is
fair valued in accordance with procedures approved by the Board of Trustees (Note
1). |
|
(b)
|
Security is
valued using significant unobservable inputs (Note
1). |
|
(c)
|
Rate shown is
one-day yield as of the end of the reporting period.
|
|
Abbreviation(s)
used in this schedule: | ||
|
ADR
|
—
|
American
Depositary Receipts |
See
Notes to Financial Statements.
6
ClearBridge
ETFs 2025 Semi-Annual Report
Statements of Assets and Liabilities
(unaudited)
September 30, 2025
|
|
Franklin
ClearBridge
Enhanced
Income ETF |
ClearBridge
Large
Cap Growth Select ETF |
|
Assets:
|
|
|
|
Investments,
at value (Cost — $99,443,984 and $312,550,605, respectively) |
$117,816,740
|
$447,235,073
|
|
Dividends
receivable |
110,139
|
74,933
|
|
Total
Assets |
117,926,879
|
447,310,006
|
|
Liabilities:
|
|
|
|
Written
options, at value (premiums received — $260,240 and 0, respectively) |
332,546
|
—
|
|
Payable
for securities purchased |
223,234
|
—
|
|
Investment
management fee payable |
44,889
|
168,815
|
|
Due
to custodian |
60
|
—
|
|
Reorganization
expenses payable (Note 6) |
—
|
11,429
|
|
Total
Liabilities |
600,729
|
180,244
|
|
Total
Net Assets |
$117,326,150
|
$447,129,762
|
|
Net
Assets: |
|
|
|
Par
value (Note
5) |
$22
|
$54
|
|
Paid-in capital
|
101,969,230
|
309,909,027
|
|
Total
distributable earnings (loss) |
15,356,898
|
137,220,681
|
|
Total
Net Assets |
$117,326,150
|
$447,129,762
|
|
Shares
Outstanding |
2,150,000
|
5,363,748
|
|
Net
Asset Value |
$54.57
|
$83.36
|
See
Notes to Financial Statements.
7
ClearBridge
ETFs 2025 Semi-Annual Report
Statements of Operations (unaudited)
For the Six Months Ended September 30, 2025
|
|
Franklin
ClearBridge
Enhanced
Income ETF |
ClearBridge
Large
Cap Growth Select ETF |
|
Investment
Income: |
|
|
|
Dividends
|
$1,298,901
|
$1,222,720
|
|
Less:
Foreign taxes withheld |
(43,192)
|
(26,689)
|
|
Total
Investment Income |
1,255,709
|
1,196,031
|
|
Expenses:
|
|
|
|
Investment
management fee (Note
2) |
253,026
|
983,850
|
|
Total
Expenses |
253,026
|
983,850
|
|
Net
Investment Income |
1,002,683
|
212,181
|
|
Realized
and Unrealized Gain (Loss) on Investments, Written Options and Foreign Currency Transactions
(Notes
1, 3 and 4): | ||
|
Net
Realized Gain (Loss) From: |
|
|
|
Investment
transactions |
970,636
|
26,136,771
|
|
Written
options |
(1,120,232)
|
—
|
|
Foreign
currency transactions |
848
|
—
|
|
Net
Realized Gain (Loss) |
(148,748)
|
26,136,771
|
|
Change
in Net Unrealized Appreciation (Depreciation) From: |
|
|
|
Investments
|
8,907,039
|
48,121,999
|
|
Written
options |
(280,595)
|
—
|
|
Foreign
currencies |
(61)
|
—
|
|
Change
in Net Unrealized Appreciation (Depreciation)
|
8,626,383
|
48,121,999
|
|
Net
Gain on Investments, Written Options and Foreign Currency
Transactions
|
8,477,635
|
74,258,770
|
|
Increase
in Net Assets From Operations |
$9,480,318
|
$74,470,951
|
See
Notes to Financial Statements.
8
ClearBridge
ETFs 2025 Semi-Annual Report
Statements of Changes in Net
Assets
Franklin ClearBridge Enhanced Income ETF
|
For
the Six Months Ended September 30, 2025 (unaudited)
and
the Year Ended March 31, 2025 |
September
30 |
March
31 |
|
Operations:
|
|
|
|
Net
investment income |
$1,002,683
|
$915,288
|
|
Net
realized gain (loss) |
(148,748)
|
2,129,448
|
|
Change
in net unrealized appreciation (depreciation)
|
8,626,383
|
3,526,478
|
|
Increase
in Net Assets From Operations |
9,480,318
|
6,571,214
|
|
Distributions
to Shareholders From (Note
1): |
|
|
|
Total
distributable earnings |
(3,396,793)
|
(762,989)
|
|
Decrease
in Net Assets From Distributions to Shareholders |
(3,396,793)
|
(762,989)
|
|
Fund
Share Transactions (Note
5): |
|
|
|
Net
proceeds from sale of shares (150,000 and 1,200,000 shares issued, respectively)
|
7,855,735
|
60,515,382
|
|
Cost
of shares repurchased (0 and 150,000 shares repurchased, respectively)
|
—
|
(7,780,136
) |
|
Increase
in Net Assets From Fund Share Transactions |
7,855,735
|
52,735,246
|
|
Increase
in Net Assets |
13,939,260
|
58,543,471
|
|
Net
Assets: |
|
|
|
Beginning
of period |
103,386,890
|
44,843,419
|
|
End
of period |
$117,326,150
|
$103,386,890
|
See
Notes to Financial Statements.
9
ClearBridge
ETFs 2025 Semi-Annual Report
Statements of Changes in Net
Assets (cont’d)
ClearBridge Large Cap Growth Select ETF
|
For
the Six Months Ended September 30, 2025 (unaudited)
and
the Year Ended March 31, 2025 |
September
30 |
March
31 |
|
Operations:
|
|
|
|
Net
investment income |
$212,181
|
$1,029,471
|
|
Net
realized gain (loss) |
26,136,771
|
(3,223,923)
|
|
Change
in net unrealized appreciation (depreciation)
|
48,121,999
|
11,383,255
|
|
Increase
in Net Assets From Operations |
74,470,951
|
9,188,803
|
|
Distributions
to Shareholders From (Note
1): |
|
|
|
Total
distributable earnings |
—
|
(700,001)
|
|
Decrease
in Net Assets From Distributions to Shareholders |
—
|
(700,001)
|
|
Fund
Share Transactions (Note
5): |
|
|
|
Net
proceeds from sale of shares (1,750,000 and 500,000 shares issued, respectively)
|
137,438,062
|
36,056,914
|
|
Cost
of shares repurchased (1,850,000 and 200,133 shares repurchased, respectively)
|
(145,629,341
) |
(14,367,182
) |
|
Net
assets of shares issued in connection with merger (0 and 1,813,881 shares issued, respectively)
(Note
6)
|
—
|
125,493,889
|
|
Increase
(Decrease) in Net Assets From Fund Share Transactions |
(8,191,279)
|
147,183,621
|
|
Increase
in Net Assets |
66,279,672
|
155,672,423
|
|
Net
Assets: |
|
|
|
Beginning
of period |
380,850,090
|
225,177,667
|
|
End
of period |
$447,129,762
|
$380,850,090
|
See
Notes to Financial Statements.
10
ClearBridge
ETFs 2025 Semi-Annual Report
Financial Highlights
Franklin ClearBridge Enhanced
Income ETF
|
For
a share of beneficial interest outstanding throughout each year ended March 31, unless otherwise noted: | |||||||
|
|
20251,2
|
20251
|
20241
|
20231
|
20221,3
|
20211,4
|
20201,4
|
|
Net
asset value, beginning of period |
$51.69
|
$47.20
|
$39.71
|
$42.27
|
$41.01
|
$34.97
|
$32.20
|
|
Income
(loss) from operations: | |||||||
|
Net
investment income |
0.49
|
0.88
|
0.79
|
0.75
|
0.24
|
0.44
|
0.56
|
|
Net
realized and unrealized gain (loss) |
4.04
|
4.38
|
7.44
|
(2.60
) |
1.30
|
6.06
|
2.71
|
|
Total
income (loss) from
operations
|
4.53
|
5.26
|
8.23
|
(1.85)
|
1.54
|
6.50
|
3.27
|
|
Less
distributions from: |
|
|
|
|
|
|
|
|
Net
investment income |
(1.65
) |
(0.77
) |
(0.74
) |
(0.71
) |
(0.28
) |
(0.46
) |
(0.50
) |
|
Total
distributions |
(1.65
) |
(0.77
) |
(0.74
) |
(0.71
) |
(0.28
) |
(0.46
) |
(0.50
) |
|
Net
asset value, end of period |
$54.57
|
$51.69
|
$47.20
|
$39.71
|
$42.27
|
$41.01
|
$34.97
|
|
Total
return, based on NAV5
|
8.93
% |
11.20
% |
20.95
% |
(4.27
)% |
3.75
% |
18.69
% |
10.43
% |
|
Net
assets, end of period (000s) |
$117,326
|
$103,387
|
$44,843
|
$29,782
|
$21,133
|
$20,504
|
$12,241
|
|
Ratios
to average net assets: | |||||||
|
Gross
expenses |
0.47
%6
|
0.47
% |
0.58
%7
|
0.59
% |
0.59
%6
|
0.59
% |
0.59
% |
|
Net
expenses |
0.47
6
|
0.47
|
0.58
7
|
0.59
|
0.59
6
|
0.59
|
0.59
|
|
Net
investment income |
1.87
6
|
1.78
|
1.86
|
1.92
|
1.75
6
|
1.12
|
1.80
|
|
Portfolio
turnover rate8
|
22
% |
45
% |
17
% |
18
% |
6
% |
9
% |
10
% |
|
1
|
Per share amounts
have been calculated using the average shares method. |
|
2
|
For the six
months ended September 30, 2025 (unaudited). |
|
3
|
For the period
December 1, 2021 through March 31, 2022. |
|
4
|
For the year
ended November 30. |
|
5
|
Performance
figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total
return would
have been lower. The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future
results. Total
returns for periods of less than one year are not annualized. |
|
6
|
Annualized.
|
|
7
|
Effective March
1, 2024, the Fund’s management fee was reduced to 0.47%. Prior to March 1, 2024, the Fund paid a fee equal to an annual rate of
0.59% of
the value of
the average daily net assets of the Fund. |
|
8
|
Portfolio turnover
excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions. |
See
Notes to Financial Statements.
11
ClearBridge
ETFs 2025 Semi-Annual Report
Financial Highlights (cont’d)
ClearBridge Large Cap Growth
Select ETF
|
For
a share of beneficial interest outstanding throughout each year ended March 31, unless otherwise noted: | |||||||
|
|
20251,2
|
20251
|
20241
|
20231
|
20221,3
|
20211,4
|
20201,4
|
|
Net
asset value, beginning of period |
$69.70
|
$67.22
|
$47.67
|
$53.73
|
$60.55
|
$48.84
|
$37.32
|
|
Income
(loss) from operations: | |||||||
|
Net
investment income |
0.04
|
0.21
|
0.11
|
0.08
|
0.00
5
|
0.04
|
0.13
|
|
Net
realized and unrealized gain (loss) |
13.62
|
2.40
|
19.50
|
(5.32
) |
(6.09
) |
11.85
|
11.53
|
|
Total
income (loss) from operations |
13.66
|
2.61
|
19.61
|
(5.24)
|
(6.09)
|
11.89
|
11.66
|
|
Less
distributions from: |
|
|
|
|
|
|
|
|
Net
investment income |
—
|
(0.13
) |
(0.06
) |
(0.07
) |
(0.01
) |
(0.18
) |
(0.14
) |
|
Net
realized gains |
—
|
—
|
—
|
(0.75
) |
(0.72
) |
—
|
—
|
|
Total
distributions |
—
|
(0.13
) |
(0.06
) |
(0.82
) |
(0.73
) |
(0.18
) |
(0.14
) |
|
Net
asset value, end of period |
$83.36
|
$69.70
|
$67.22
|
$47.67
|
$53.73
|
$60.55
|
$48.84
|
|
Total
return, based on NAV6
|
19.60
% |
3.87
% |
41.17
% |
(9.48
)% |
(10.21
)% |
24.44
% |
31.35
% |
|
Net
assets, end of period (millions) |
$447
|
$381
|
$225
|
$131
|
$223
|
$182
|
$125
|
|
Ratios
to average net assets: | |||||||
|
Gross
expenses |
0.47
%7
|
0.48
%8
|
0.58
%8,9
|
0.59
% |
0.59
%7
|
0.59
% |
0.59
% |
|
Net
expenses |
0.47
7
|
0.48
8
|
0.58
8,9
|
0.59
|
0.59
7
|
0.59
|
0.59
|
|
Net
investment income |
0.10
7
|
0.29
|
0.20
|
0.19
|
0.02
7
|
0.07
|
0.34
|
|
Portfolio
turnover rate10
|
27
% |
18
% |
12
% |
17
% |
9
% |
18
% |
21
% |
|
1
|
Per share amounts
have been calculated using the average shares method. |
|
2
|
For the six
months ended September 30, 2025 (unaudited). |
|
3
|
For the period
December 1, 2021 through March 31, 2022. |
|
4
|
For the year
ended November 30. |
|
5
|
Amount represents
less than $0.005 or greater than $(0.005) per share. |
|
6
|
Performance
figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or expense reimbursements, the total
return would
have been lower. The total return calculation assumes that distributions are reinvested at NAV. Past performance is no guarantee of future
results. Total
returns for periods of less than one year are not annualized. |
|
7
|
Annualized.
|
|
8
|
Expense ratios
are including reorganization expenses that were incurred by the Fund during the period. Without these fees, the gross and net expense
ratios would
have been 0.47% and 0.47%, respectively, for the year ended March 31, 2025, and 0.57% and 0.57%, respectively, for the year ended
March 31, 2024.
|
|
9
|
Effective March
1, 2024, the Fund’s management fee was reduced to 0.47%. Prior to March 1, 2024, the Fund paid a fee equal to an annual rate of
0.59% of
the value of
the average daily net assets of the Fund. |
|
10
|
Portfolio turnover
excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions. |
See
Notes to Financial Statements.
12
ClearBridge
ETFs 2025 Semi-Annual Report
Notes to Financial Statements
(unaudited)
1. Organization
and significant accounting policies
Franklin ClearBridge Enhanced Income ETF (“Enhanced
Income ETF’’) and ClearBridge Large Cap Growth Select ETF (“Large Cap
Growth Select ETF”) (formerly ClearBridge Large Cap Growth ESG ETF) (the “Funds”) are separate investment series of
Legg Mason ETF Investment Trust (the “Trust”). Enhanced Income ETF is a separate diversified investment series of the Trust.
Large Cap Growth Select ETF is a separate non-diversified investment series
of the Trust. The Trust, a Maryland statutory trust, is registered under
the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment
company.
The Funds are actively managed exchange-traded funds
(“ETFs”). ETFs are funds that trade like other publicly-traded securities. Unlike
shares of a mutual fund, which can be bought from and redeemed by the issuing fund by all shareholders at a price based
on net asset value (“NAV”), shares of the Funds may be directly purchased from and redeemed by the Funds at NAV solely
by certain large institutional investors who have entered into agreements with the Funds’ distributor (“Authorized Participants”).
Also unlike shares of a mutual fund, shares of the Funds are listed on a national securities exchange and trade in
the secondary market at market prices that change throughout the day.
Shares of the Funds are listed and traded at market
prices on NASDAQ. The market price for a Fund’s shares may be different from
a Fund’s NAV. The Funds issue and redeem shares at NAV only in blocks of a specified number of shares or multiples thereof
(“Creation Units”). Only Authorized Participants may purchase or redeem Creation Units directly with the Funds at NAV. Creation
Units are created and redeemed principally in-kind (although under some circumstances its shares are created and
redeemed partially for cash). Except when aggregated in Creation Units, shares of the Funds are not redeemable securities.
Shareholders who are not Authorized Participants may not redeem shares directly from the Funds at NAV.
The Funds follow the accounting and reporting guidance
in Financial Accounting Standards Board (“FASB”)
Accounting Standards Codification Topic 946, Financial
Services – Investment Companies (“ASC
946”).
The following are significant accounting policies consistently followed by
the Funds and are in conformity with U.S. generally accepted accounting principles (“GAAP”),
including, but not limited to, ASC 946. Estimates and assumptions are required to be made regarding assets, liabilities
and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic
environment, financial markets and any other parameters used in determining these estimates could cause actual results
to differ. Subsequent events have been evaluated through the date the financial statements were issued.
(a) Investment
valuation. Equity
securities for which market quotations are available are valued at the last reported sales price
or official closing price on the primary market or exchange on which they trade. The valuations for fixed income securities
(which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage
obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent
third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques
and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer
details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar
securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of
valuation. When the Funds hold securities or other assets that are denominated in a foreign currency, the Funds will use
the currency exchange rates, generally determined as of 4:00 p.m. (London Time). If independent third party pricing services are
unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the
market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction
price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing
broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected
by events after the close of the exchange or market on which the security is principally traded, but before each Fund
calculate its net asset value, the Funds value these securities as determined in accordance with procedures approved by
the Funds’ Board of Trustees (the “Board”).
Pursuant to policies adopted by the Board, the Funds’
manager has been designated as the valuation designee and is responsible
for the oversight of the daily valuation process. The Funds’ manager is assisted by the Global Fund Valuation Committee
(the “Valuation
Committee”).
The Valuation Committee is responsible for making fair value determinations, evaluating the
effectiveness of the Funds’ pricing policies, and reporting to the Funds’ manager and the Board. When determining the
reliability of third party pricing information for investments owned by the Funds, the Valuation Committee, among other things,
conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among
market participants.
The Valuation Committee will consider pricing methodologies
it deems relevant and appropriate when making fair value determinations.
Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of
a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis;
yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems
relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not
13
ClearBridge
ETFs 2025 Semi-Annual Report
Notes to Financial Statements
(unaudited) (cont’d)
limited to, the type of security;
the issuer’s financial statements; the purchase price of the security; the discount from market value
of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions;
information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender
offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies;
and the existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued
pursuant to the policies adopted by the Board, the fair value price is compared
against the last available and next available market quotations. The Valuation Committee reviews the results of such
back testing monthly and fair valuation occurrences are reported to the Board quarterly.
The Funds use valuation techniques to measure fair
value that are consistent with the market approach and/or income approach,
depending on the type of security and the particular circumstance. The market approach uses prices and other relevant
information generated by market transactions involving identical or comparable securities. The income approach uses valuation
techniques to discount estimated future cash flows to present value.
GAAP establishes a disclosure hierarchy that categorizes
the inputs to valuation techniques used to value assets and liabilities at
measurement date. These inputs are summarized in the three broad levels listed below:
•
Level
1 — unadjusted quoted prices in active markets for identical investments
•
Level
2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds,
credit risk, etc.)
•
Level
3 — significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments)
The inputs or methodologies used to value securities
are not necessarily an indication of the risk associated with investing in
those securities.
The following is a summary of the inputs used in valuing
the Funds’ assets carried at fair value:
Enhanced Income ETF
|
ASSETS
| ||||
|
Description
|
Quoted
Prices
(Level
1) |
Other
Significant
Observable
Inputs
(Level
2) |
Significant
Unobservable
Inputs
(Level
3) |
Total
|
|
Common
Stocks† |
$115,473,700
|
—
|
—
|
$115,473,700
|
|
Short-Term
Investments† |
2,343,040
|
—
|
—
|
2,343,040
|
|
Total
Investments |
$117,816,740
|
—
|
—
|
$117,816,740
|
|
LIABILITIES
| ||||
|
Description
|
Quoted
Prices
(Level
1) |
Other
Significant
Observable
Inputs
(Level
2) |
Significant
Unobservable
Inputs
(Level
3) |
Total
|
|
Other
Financial Instruments: |
|
|
|
|
|
Written
Options: |
$332,546
|
—
|
—
|
$332,546
|
|
†
|
See Schedules
of Investments for additional detailed categorizations. |
Large Cap Growth Select ETF
|
ASSETS
| ||||
|
Description
|
Quoted
Prices
(Level
1) |
Other
Significant
Observable
Inputs
(Level
2) |
Significant
Unobservable
Inputs
(Level
3) |
Total
|
|
Long-Term
Investments†: |
|
|
|
|
|
Common
Stocks: |
|
|
|
|
|
Communication
Services |
$56,861,425
|
—
|
$7
|
$56,861,432
|
|
Other
common stocks |
382,616,427
|
—
|
—
|
382,616,427
|
|
Total
Long-Term Investments |
439,477,852
|
—
|
7
|
439,477,859
|
14
ClearBridge
ETFs 2025 Semi-Annual Report
|
ASSETS (cont’d)
| ||||
|
Description
|
Quoted
Prices
(Level
1) |
Other
Significant
Observable
Inputs
(Level
2) |
Significant
Unobservable
Inputs
(Level
3) |
Total
|
|
Short-Term
Investments† |
$7,757,214
|
—
|
—
|
$7,757,214
|
|
Total
Investments |
$447,235,066
|
—
|
$7
|
$447,235,073
|
|
†
|
See Schedules
of Investments for additional detailed categorizations. |
(b) Written
options. The
Fund may write option contracts generally to gain or reduce exposure to certain types of investments or
market factors or as a means of attempting to enhance returns. When the Fund writes an option, an amount equal to the
premium received by the Fund is recorded as a liability, the value of which is marked-to-market daily to reflect the current market
value of the option written. If the option expires, the premium received is recorded as a realized gain. When a written
call option is exercised, the difference between the premium received plus the option exercise price and the Fund’s basis
in the underlying security (in the case of a covered written call option), or the cost to purchase the underlying security
(in the case of an uncovered written call option), including brokerage commission, is recognized as a realized gain or loss.
When a written put option is exercised, the amount of the premium received is subtracted from the cost of the security purchased
by the Fund from the exercise of the written put option to form the Fund’s basis in the underlying security purchased. The
writer or buyer of an option traded on an exchange can liquidate the position before the exercise of the option by entering
into a closing transaction. The cost of a closing transaction is deducted from the original premium received resulting in
a realized gain or loss to the Fund.
The risk in writing a covered call option is that the
Fund may forego the opportunity of profit if the market price of the underlying
security increases and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the
market price of the underlying security decreases and the option is exercised. The risk in writing an uncovered call option
is that the Fund is exposed to the risk of loss if the market price of the underlying security increases. In addition, there is
the risk that the Fund may not be able to enter into a closing transaction because of an illiquid secondary market.
(c) Foreign
currency translation. Investment
securities and other assets and liabilities denominated in foreign currencies are
translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales
of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts
based upon prevailing exchange rates on the respective dates of such transactions.
The Funds do not isolate that portion of the results
of operations resulting from fluctuations in foreign exchange rates on investments
from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the
net realized and unrealized gain or loss on investments.
Net realized foreign exchange gains or losses arise
from sales of foreign currencies, including gains and losses on forward foreign
currency contracts, currency gains or losses realized between the trade and settlement dates on securities transactions,
and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Funds’
books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains
and losses arise from changes in the values of assets and liabilities, other than investments in securities, on the date of
valuation, resulting from changes in exchange rates.
Foreign security and currency transactions may involve
certain considerations and risks not typically associated with those of U.S.
dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision
and regulation of foreign securities markets and the possibility of political or economic instability.
(d) Foreign
investment risks. The
Funds’ investments in foreign securities may involve risks not present in domestic investments.
Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or may pay
interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can
significantly affect the value of the investments and earnings of the Funds. Foreign investments may also subject the Funds to
foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all
of which affect the market and/or credit risk of the investments.
(e) Security
transactions and investment income. Security
transactions are accounted for on a trade date basis. Interest income (including
interest income from payment-in-kind securities) is recorded on the accrual basis. Amortization of premiums
and accretion of discounts on debt securities are recorded to interest income over the lives of the respective securities,
except for premiums on certain callable debt securities, which are amortized to the earliest call date. Dividend income
is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on
the ex-dividend date or as soon as practicable after the Funds determine the existence of a dividend declaration after exercising
reasonable due diligence. The cost of investments sold is determined by use of the specific identification method.
15
ClearBridge
ETFs 2025 Semi-Annual Report
Notes to Financial Statements
(unaudited) (cont’d)
To the extent any issuer defaults
or a credit event occurs that impacts the issuer, the Funds may halt any additional interest income
accruals and consider the realizability of interest accrued up to the date of default or credit event.
(f) REIT
distributions. The
character of distributions received from Real Estate Investment Trusts (‘‘REITs’’) held by the Funds
is generally comprised of net investment income, capital gains, and return of capital. It is the policy of the Funds to estimate
the character of distributions received from underlying REITs based on historical data provided by the REITs. After each
calendar year end, REITs report the actual tax character of these distributions. Differences between the estimated and
actual amounts reported by the REITs are reflected in the Funds’ records in the year in which they are reported by the REITs by
adjusting related investment cost basis, capital gains and income, as necessary.
(g) Distributions
to shareholders. Large
Cap Growth Select ETF distributions from net investment income and distributions of
net realized gains, if any, are declared at least annually. For Enhanced Income ETF, distributions from net investment income
of the Fund, if any, are declared and paid on a monthly basis and distributions of net realized gains, if any, are declared at
least annually. Distributions to shareholders of the Funds are recorded on the ex-dividend date and are determined in accordance
with income tax regulations, which may differ from GAAP.
(h) Federal
and other taxes. It
is the Funds’ policy to comply with the federal income and excise tax requirements of the Internal
Revenue Code of 1986 (the “Code”), as amended, applicable to regulated investment companies. Accordingly, the
Funds intend to distribute their taxable income and net realized gains, if any, to shareholders in accordance with
timing requirements imposed by the Code. Therefore, no federal or state income
tax provision is required in the Funds’ financial statements.
Management has analyzed the Funds’ tax positions
taken on income tax returns for all open tax years and has concluded that
as of March 31, 2025, no provision for income tax is required in the Funds’ financial statements. The Funds’ federal and state
income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are
subject to examination by the Internal Revenue Service and state departments of revenue.
Under the applicable foreign tax laws, a withholding
tax may be imposed on interest, dividends and capital gains at various rates.
(i) Reclassification. GAAP
requires that certain components of net assets be reclassified to
reflect permanent differences between financial and tax reporting. These
reclassifications have no effect on net assets or net asset value per share.
2. Investment
management agreement and other transactions with affiliates
Franklin Templeton Fund Adviser, LLC (“FTFA”)
is each Fund’s investment manager and ClearBridge Investments, LLC (“ClearBridge”)
is each Fund’s subadviser. Western Asset Management Company, LLC (“Western Asset”) manages the portion of
each Fund’s cash and short-term instruments allocated to it. FTFA, ClearBridge and Western Asset are indirect, wholly-owned
subsidiaries of Franklin Resources, Inc. (“Franklin Resources”).
FTFA provides administrative and certain oversight
services to the Funds. FTFA delegates to the subadviser the day-to-day portfolio
management of the Funds. Each Fund is responsible for paying interest expenses, taxes, brokerage expenses, future 12b-1
fees (if any), acquired fund fees and expenses, extraordinary expenses and the management fee payable to FTFA under
the investment management agreement.
Under the investment management agreement and subject
to the general supervision of the Funds’ Board, FTFA as to each Fund
provides or causes to be furnished all investment management, supervisory, administrative and other services reasonably
necessary for the operation of the Fund, including certain distribution services (provided pursuant to a separate distribution
agreement) and investment advisory services (provided pursuant to separate subadvisory agreements) under a
unitary fee structure.
Each Fund pays an investment management fee, calculated
daily and paid monthly, at an annual rate of the Fund’s average daily
net assets as follows:
|
|
Annualized
Fee Rate |
|
Enhanced
Income ETF |
0.47%
|
|
Large
Cap Growth Select ETF |
0.47%
|
As compensation for its subadvisory services, FTFA
as to each Fund pays ClearBridge a fee monthly, at an annual rate equal to
70% of the management fee paid by the Fund to FTFA, net of (i) all fees and expenses incurred by FTFA under the investment
management agreement (including without limitation any subadvisory fee paid to another subadviser to the Fund) and
(ii) expense waivers, if any, and reimbursements. FTFA as to each Fund pays Western Asset monthly a fee of 0.02% of
the portion of the Fund’s average daily net assets allocated to Western Asset for the management of cash and other short-term
instruments, net of expense waivers, if any, and reimbursements.
16
ClearBridge
ETFs 2025 Semi-Annual Report
Franklin Distributors, LLC (“Franklin
Distributors”) serves as the distributor of Creation Units for the Funds on an agency basis.
Franklin Distributors is an indirect, wholly-owned broker-dealer subsidiary of Franklin Resources.
The Board has adopted a Rule 12b-1 shareholder services
and distribution plan and under that plan, each Fund is authorized to pay
service and/or distribution fees calculated at an annual rate of up to 0.25% of its average daily net assets. No service
and/or distribution fees are currently paid by the Funds, and there are no current plans to impose these fees.
All officers and one Trustee of the Trust are employees
of Franklin Resources or its affiliates and do not receive compensation from
the Trust.
As of September 30, 2025, Franklin Resources and its
affiliates owned 28% of the Enhanced Income ETF.
3. Investments
During the six months ended
September 30, 2025, the aggregate cost of purchases and proceeds from sales of investments (excluding
in-kind transactions and short-term investments) were as follows:
|
|
Purchases
|
Sales
|
|
Enhanced
Income ETF |
$23,245,195
|
$27,157,588
|
|
Large
Cap Growth Select ETF |
237,336,356
|
110,590,854
|
During the six months
ended September 30, 2025, in-kind transactions (Note 5)
were as follows:
|
|
Contributions
|
Redemptions
|
Realized
Gain (Loss)* |
|
Enhanced
Income ETF |
$7,536,699
|
—
|
—
|
|
Large
Cap Growth Select ETF |
8,437,747
|
$136,076,573
|
$30,646,435
|
|
*
|
Net realized
gains on redemptions in-kind are not taxable to the remaining shareholders of the Fund. |
The in-kind contributions and in-kind redemptions shown
in this table may not agree with the Funds’ Share Transactions on the
Statements of Changes in Net Assets. This table represents the accumulation of each Fund’s daily net shareholder transactions
while the Statements of Changes in Net Assets reflects gross shareholder transactions including any cash component
of the transactions.
At September 30, 2025, the aggregate cost of investments
and the aggregate gross unrealized appreciation and depreciation of investments
for federal income tax purposes were substantially as follows:
|
|
Enhanced
Income ETF | |||
|
|
Cost/Premiums
Paid
(Received) |
Gross
Unrealized
Appreciation
|
Gross
Unrealized
Depreciation
|
Net
Unrealized
Appreciation
(Depreciation)
|
|
Securities
|
$99,680,679
|
$20,132,281
|
$(1,996,220
) |
$18,136,061
|
|
Written
options |
(260,240
) |
22,641
|
(94,947
) |
(72,306
) |
|
|
Large
Cap Growth Select ETF | |||
|
|
Cost
|
Gross
Unrealized
Appreciation
|
Gross
Unrealized
Depreciation
|
Net
Unrealized
Appreciation
|
|
Securities
|
$315,438,467
|
$138,079,395
|
$(6,282,789
) |
$131,796,606
|
4. Derivative
instruments and hedging activities
Enhanced Income ETF
Below is a table, grouped by derivative type, that
provides information about the fair value and the location of derivatives within
the Statement of Assets and Liabilities at September 30, 2025.
|
LIABILITY
DERIVATIVES1
| |
|
|
Equity
Risk
|
|
Written
options |
$332,546
|
|
1
|
Generally, the
balance sheet location for asset derivatives is receivables/net unrealized appreciation and for liability derivatives is payables/net
unrealized depreciation.
|
17
ClearBridge
ETFs 2025 Semi-Annual Report
Notes to Financial Statements
(unaudited) (cont’d)
The following tables provide information
about the effect of derivatives and hedging activities on the Fund’s Statement of Operations
for the six months
ended September 30, 2025. The first table provides additional detail about the amounts and sources
of gains (losses) realized on derivatives during the period. The second table provides additional information about the
change in net unrealized appreciation (depreciation) resulting from the Fund’s derivatives and hedging activities during the period.
|
AMOUNT
OF NET REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED | |
|
|
Equity
Risk
|
|
Written
options |
$(1,120,232
) |
|
CHANGE
IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED | |
|
|
Equity
Risk
|
|
Written
options |
$(280,595
) |
During the six months
ended September 30, 2025, the volume of derivative activity for the Fund was as follows:
|
|
Average
Market
Value*
|
|
Written
options |
$329,011
|
|
*
|
Based on the
average of the market values at each month-end during the period. |
Large Cap Growth Select ETF
During the six months ended September 30, 2025, the
Funds did not invest in derivative instruments
5. Fund
share transactions
At September 30, 2025, the Trust had an unlimited number
of shares of beneficial interest authorized with a par value of $0.00001
per share. Each Fund’s shares are issued and redeemed by the Funds only in Creation Units or Creation Unit aggregations, where
50,000 shares of each Fund constitute a Creation Unit. Such transactions are generally on an in-kind basis, with a separate
cash payment, which is a balancing cash component to equate the transaction to the net asset value per share of each
Fund on the transaction date. Transactions in capital shares of the Funds are disclosed in detail in the Statements of
Changes in Net Assets. Authorized Participants are subject to standard creation and redemption transaction fees to offset transfer
and other transaction costs associated with the issuance and redemption of Creation Units. Such transactions fees
are treated as increases in capital and are disclosed in the Funds’ Statements of Changes in Net Assets. Creations and redemptions
for cash (when cash creations and redemptions are available or specified) may be subject to an additional variable
fee.
6. Transfer
of net assets
On June 14, 2024, Large Cap Growth Select ETF acquired
the assets and liabilities of ClearBridge All Cap Growth ESG ETF (the “Acquired
Fund”), pursuant to a plan of reorganization approved by the Board of both the Acquired Fund and Large Cap Growth
Select ETF. Total shares issued by Large Cap Growth Select ETF and the total net assets of the Acquired Fund and Large
Cap Growth Select ETF on the date of the transfer were as follows:
|
Acquired
Fund |
Shares
Issued
by
the Fund |
Total
Net Assets of the
Acquired
Fund |
Total
Net Assets
of
the Fund |
|
ClearBridge
All Cap Growth ESG ETF |
1,813,881
|
$125,493,889
|
$242,148,585
|
As part of the reorganization, for each common share
they held, shareholders of the Acquired Fund received 0.771864 common shares
of Large Cap Growth Select ETF. Large Cap Growth Select ETF did not issue any fractional shares to shareholders
of the Acquired Fund. In lieu thereof, Large Cap Growth Select ETF purchased all fractional shares at the current net
asset value of the shares and remitted the cash proceeds to former shareholders of the Acquired Fund in proportion to their
fractional shares.
The total net assets of the Acquired Fund before the
acquisition included unrealized appreciation of $33,607,978, accumulated net
realized gain of $5,611,751 and overdistributed net investment income of $(62,976). Total net assets of Large Cap Growth
Select ETF immediately after the transfer were $367,642,474. The transaction was structured to qualify as a tax-free reorganization
under the Internal Revenue Code of 1986, as amended.
18
ClearBridge
ETFs 2025 Semi-Annual Report
Proforma results of operations
of the combined entity for the entire year ended March 31, 2025, as though the acquisition had
occurred as of the beginning of the period (rather than on the actual acquisition date), are as follows:
|
|
(Unaudited)
|
|
Net
investment income |
$1,048,904
|
|
Net
realized gain |
3,605,036
|
|
Change
in net unrealized appreciation |
7,856,807
|
|
Increase
in net assets from operations |
$12,510,747
|
Because the combined investment portfolios have been
managed as a single portfolio since the acquisition was completed, it is
not practicable to separate the amounts of revenue and earnings of the Acquired Fund that have been included in Large
Cap Growth Select ETF’s accompanying Statement of Operations since the close of business on June 14, 2024.
7. Deferred
capital losses
As of March 31, 2025, Large Cap Growth Select
ETF had deferred capital losses of $21,469,359, which have no expiration date,
that will be available to offset future taxable capital gains.
8. Recent
accounting pronouncement
In December 2023, the Financial Accounting Standards
Board (FASB) issued Accounting Standards Update (ASU) No. 2023-09, Income
Taxes (Topic 740) – Improvements to Income Tax Disclosures. The amendments
enhance income tax disclosures by requiring greater disaggregation in the
rate reconciliation and income taxes paid by jurisdiction, while removing certain disclosure
requirements. The ASU is effective for annual periods beginning after December 15, 2024, with early adoption permitted.
Management is currently evaluating the impact and believes that the adoption of the ASU will not have a material impact
on the financial statements.
9. Operating segments
Each Fund operates as a single operating segment, which
is an investment portfolio. A management group assigned to the Funds within
the Funds’ investment manager serves as the Chief Operating Decision Maker (“CODM”) and is responsible for
evaluating the Funds’ operating results and allocating resources in accordance with the Funds’ investment strategy. Internal
reporting provided to the CODM aligns with the accounting policies and measurement
principles used in the financial statements.
For information regarding segment assets, segment profit
or loss, and significant expenses, refer to the Statements of Assets and
Liabilities and the Statements of Operations, along with the related Notes to Financial Statements. The Funds’ Schedules
of Investments provides details of the Funds’ investments that generate returns such as interest, dividends, and
realized and unrealized gains or losses. Performance metrics, including portfolio turnover and expense ratios, are disclosed in
the Financial Highlights.
19
ClearBridge
ETFs 2025 Semi-Annual Report
|
Changes
in and Disagreements with Accountants |
For
the period covered by this report |
|
Not
applicable. |
|
|
Results
of Meeting(s) of Shareholders |
For
the period covered by this report |
|
Not
applicable. |
|
|
Remuneration
Paid to Directors, Officers and Others |
For
the period covered by this report |
|
Not applicable.
Remuneration paid to directors, officers, and others is included as part of the all-inclusive management fee and not paid directly by
the
Fund.
| |
20
ClearBridge
ETFs
Board Approval of Management
and
Subadvisory Agreements (unaudited)
Legg Mason ETF Investment
Trust
Franklin
ClearBridge Enhanced Income ETF
(formerly ClearBridge Dividend Strategy Select ETF)
(formerly ClearBridge Dividend Strategy Select ETF)
ClearBridge
Large Cap Growth Select ETF
(formerly ClearBridge Large Cap Growth ESG ETF)
(formerly ClearBridge Large Cap Growth ESG ETF)
(each a Fund)
At an in-person meeting held on May 21, 2025 (Meeting),
the Board of Trustees (Board) of the Legg Mason ETF Investment Trust (Trust),
including a majority of the trustees who are not “interested persons” as defined in the Investment Company Act
of 1940 (Independent Trustees), reviewed and approved the continuance of (i) the investment management agreement between
Franklin Templeton Fund Adviser, LLC (FTFA) and the Trust, on behalf of each Fund; (ii) the investment sub-advisory agreement
between FTFA and ClearBridge Investments, LLC (ClearBridge), an affiliate of FTFA, on behalf of each Fund; and (iii)
the investment sub-advisory agreement between FTFA and Western Asset Management Company, LLC (Western Asset
LLC), an affiliate of FTFA, on behalf of each Fund (each a Management Agreement) for an additional one-year period. The
Independent Trustees received advice from and met separately with Independent Trustee counsel to consider the renewal
of each Management Agreement. Although the Management Agreements for the Funds were considered at the same
Board meeting, the Board considered the information provided to it about the Funds together and with respect to each Fund
separately as the Board deemed appropriate. FTFA, ClearBridge and Western Asset LLC are each referred to herein as
a Manager.
In considering the continuance of each Management Agreement,
the Board reviewed and considered information provided by each Manager at
the Meeting and throughout the year at meetings of the Board and its committees. The Board also reviewed
and considered information provided in response to a detailed set of requests for information submitted to each Manager
by Independent Trustee counsel on behalf of the Independent Trustees in connection with the annual contract renewal process.
In addition, prior to the Meeting, the Independent Trustees held a virtual contract renewal meeting at which the Independent
Trustees first conferred amongst themselves and Independent Trustee counsel about contract renewal matters, and
then met with management to request additional information that the Independent Trustees also considered prior to and
at the Meeting. The Board further considered all of the factors it deemed relevant in approving the continuance of each Management
Agreement, including, but not limited to: (i) the nature, extent and quality of the services provided by each Manager;
(ii) the investment performance of each Fund; (iii) the costs of the services provided and profits realized by each Manager
and its affiliates from the relationship with each Fund; (iv) the extent to which economies of scale are realized as
each Fund grows; and (v) whether fee levels reflect these economies of scale for the benefit of Fund investors.
In approving the continuance of each Management Agreement,
the Board, including a majority of the Independent Trustees, determined,
through the exercise of its business judgment, that the terms of each Management Agreement are fair and reasonable
and that the continuance of each Management Agreement is in the best interests of the applicable Fund and its shareholders.
While attention was given to all information furnished, the following discusses some primary factors relevant
to the Board’s determination.
Nature, Extent and Quality of Services
The Board reviewed the information it received regarding
the nature, extent and quality of investment management services provided
by each Manager and its affiliates to the Funds and their shareholders. This information included, among other things,
the qualifications, background and experience of the senior management and investment personnel of each Manager, as
well as information on succession planning where appropriate; the structure of investment personnel compensation; oversight
of third-party service providers; investment performance reports and related financial information for each Fund; reports
on expenses and shareholder services; legal and compliance matters; risk controls; pricing and other services provided
by each Manager and its affiliates; and management fees charged by each Manager and its affiliates to US funds and
other accounts, including management’s explanation of differences among accounts where relevant. The Board acknowledged
the ongoing integration of acquired third-party fund families into the Franklin Templeton (FT) family of funds and
management’s continued development of strategies to address evolving changes in domestic policy and continuing geopolitical
concerns.
21
ClearBridge
ETFs
Board Approval of Management
and
Subadvisory Agreements (unaudited) (cont’d)
The Board also reviewed and considered
the benefits provided to Fund shareholders of investing in a fund that is part of the FT
family of funds. The Board noted the financial position of Franklin Resources, Inc. (FRI), the Managers’ parent, and its commitment
to the registered fund business as evidenced by its continued introduction of new funds, reassessment of the fund offerings
in response to FT acquisitions and the market environment, as well as its evaluation of ways to incorporate private
assets into more traditional investment vehicles. The Board specifically noted FT’s commitment to technological innovation
and advancement, including its continued focus on developing potential use cases for tokenization and the blockchain
and the use of artificial intelligence tools to help streamline day-to-day tasks.
Following consideration of such information, the Board
was satisfied with the nature, extent and quality of services provided by
each Manager and its affiliates to the Funds and their shareholders.
Fund Performance
The Board reviewed and considered the performance results
of each Fund over various time periods ended December 31, 2024. The Board
considered the performance returns for each Fund in comparison to the performance returns of registered funds
deemed comparable to the Fund included in a universe (Performance Universe) selected by Broadridge Financial Solutions,
Inc. (Broadridge), an independent provider of investment company data. The Board received a description of the methodology
used by Broadridge to select the registered funds included in a Performance Universe. The Board also reviewed and
considered Fund performance reports provided and discussions that occurred with portfolio managers at Board meetings
throughout the year. The Board referenced earlier discussions with management on matters related to, among other
things, the expansion and rationalization of the overall product line, including investments in novel asset classes, as well as
the growth in assets from internal and external clients. In addition, the Board acknowledged information provided regarding
management’s strategy to grow market share through the use of innovative data and technology and investments in
marketing and distribution. The Board noted management’s high level of client engagement and the strength of its internal
audit and compliance program. A summary of each Fund’s performance results is below.
ClearBridge Enhanced
Income ETF -
The Performance Universe for the Fund included the Fund and 12 other equity income actively
managed exchange-traded funds. The Fund commenced operations on May 22, 2017, and thus has been in operation for
less than 10 years. The Board noted that the Fund’s annualized total return for the one-, three- and five-year periods was
above the median of its Performance Universe. The Board also noted that effective February 28, 2025, the Fund changed: (1)
its name from ClearBridge Dividend Strategy ESG ETF to the Fund’s current name; (2) its investment objective to seek to
provide income and long-term capital appreciation; (3) its dividend policy to monthly; and (4) its investment strategy in order to
pursue an enhanced equity income strategy by, under normal market conditions, investing primarily in dividend-paying equity
securities and “enhancing” income through the employment of an options overlay by writing (selling) U.S. exchange-traded call
options based upon US large capitalization equity indices. The Board further noted that Franklin Managed Options Strategies,
LLC was appointed as an additional sub-adviser to the Fund to manage the options overlay portion of the Fund’s portfolio,
also effective February 28, 2025. The Board concluded that the Fund’s performance was satisfactory.
ClearBridge Large
Cap Growth Select ETF -
The Performance Universe for the Fund included the Fund and all retail and institutional
large-cap growth funds and exchange-traded funds. The Fund commenced operations on May 22, 2017, and thus has
been in operation for less than 10 years. The Board noted that the Fund’s annualized total return for the one-, three- and
five-year periods was below the median of its Performance Universe. The Board also noted that the annualized total return for
the one-, three- and five-year periods was 26.45%, 8.25% and 15.54%, respectively. The Board discussed this performance
with management and management explained that underperformance relative to the Fund’s Performance Universe
over each period was due in part to the differing investment focus by the Fund, which was on diversification and risk control,
and the benchmark which was on exposure to mega cap stocks. Management further explained that the benchmark has
increased its concentration in Magnificent Seven stocks, accounting for 68% of returns in 2024, every year since 2020, making
it difficult for the Fund to maintain market diversification and market weight exposures when compared against the benchmark.
Management also explained that the Fund’s underperformance was due in part to sector allocation overweights to
the underperforming health care and industrials sectors and sector allocation underweight to the overperforming information technology
sector. The Board noted management’s representations regarding the actions that management was taking/had taken
in an effort to improve the overall performance of the Fund, including the Fund’s repositioning effective August 1, 2025
that resulted in a change in the Fund’s name and 80% rule investment policy; and changes to the Fund’s principal investment
strategies, including a change to the sub-classification of the Fund from a “diversified company” to a “non-diversified
22
ClearBridge
ETFs
company” to allow for a more
focused investment approach and de-emphasis of ESG investment criteria. The Board concluded that
the Fund’s Management Agreements should be continued for an additional one-year period, while management’s efforts
continue to be closely monitored.
Comparative Fees and Expenses
The Board reviewed and considered information regarding
each Fund’s actual total expense ratio, noting that each Fund pays a
Unified Fee (as defined below). The Board considered the actual total expense ratio and, separately, the contractual management
fee rate, without the effect of fee waivers, if any (Management Rate), of each Fund in comparison to the median expense
ratio and median Management Rate, respectively, of other exchange-traded funds deemed comparable to and with
a similar expense structure to the Fund selected by Broadridge (Expense Group). Broadridge fee and expense data is based upon
information taken from each fund’s most recent annual or semi-annual report, which reflects historical asset levels that
may be quite different from those currently existing, particularly in a period of market volatility. While recognizing such inherent
limitation and the fact that expense ratios and Management Rates generally increase as assets decline and decrease
as assets grow, the Board believed the independent analysis conducted by Broadridge to be an appropriate measure of
comparative fees and expenses. The Broadridge Management Rate includes administrative charges. The Board received a
description of the methodology used by Broadridge to select the exchange-traded funds included in an Expense Group.
ClearBridge Enhanced
Income ETF -
The Expense Group for the Fund was comprised of actively managed exchange-traded funds,
which included the Fund and 12 other equity income funds. The Board noted that the Management Rate and actual total
expense ratio for the Fund were below the medians of its Expense Group. The Board further noted that the Fund has implemented
a unified management fee (Unified Fee) and that pursuant to the Unified Fee arrangement FTFA pays for all
operating expenses of the Fund, except interest expenses, taxes, brokerage expenses, future Rule 12b-1 fees (if any), acquired
fund fees and expenses, extraordinary expenses and the management fee (Unified Fee Arrangement). The Board also noted
that effective March 1, 2024, the Fund’s unitary management fee rate was reduced from 0.59% to 0.47%. The Board further
noted that each of ClearBridge and Western Asset LLC is paid by FTFA out of the Unified Fee FTFA receives from the
Fund and that the allocation of the fee between FTFA and each of ClearBridge and Western Asset LLC reflected the services provided
by each Manager to the Fund. After consideration of the above, the Board concluded that the Management Rate charged
to the Fund and the sub-advisory fee paid to each of ClearBridge and Western Asset LLC are reasonable.
ClearBridge Large
Cap Growth Select ETF -
The Expense Group for the Fund was comprised of actively managed exchange-traded
funds, which included the Fund, three other large-cap growth funds and one large-cap core fund. The Board noted
that the Management Rate and actual total expense ratio for the Fund were equal to the medians of its Expense Group.
The Board further noted that the Fund has a Unified Fee and discussed the terms of the Unified Fee Arrangement. The Board
also noted that effective March 1, 2024, the Fund’s unitary management fee rate was reduced from 0.59% to 0.47%. The
Board noted the small size of the Fund’s Expense Group and that therefore no quintile information was available for the
Fund. The Board further noted that each of ClearBridge and Western Asset LLC is paid by FTFA out of the Unified Fee FTFA receives
from the Fund and that the allocation of the fee between FTFA and each of ClearBridge and Western Asset LLC reflected
the services provided by each Manager to the Fund. After consideration of the above, the Board concluded that the Management
Rate charged to the Fund and the sub-advisory fee paid to each of ClearBridge and Western Asset LLC are reasonable.
Profitability
The Board reviewed and considered information regarding
the profits realized by each Manager and its affiliates in connection with
the operation of each Fund. In this respect, the Board considered the Fund profitability analysis that addresses the overall
profitability of FT’s US fund business, as well as its profits in providing investment management and other services to each
of the individual Funds during the 12-month period ended September 30, 2024 (the most recent fiscal year-end for FRI).
The Board noted that although management continually makes refinements to its methodologies used in calculating profitability
in response to organizational and product-related changes, the overall methodology has remained consistent with that
used in the Funds’ profitability report presentations from prior years. The Board also noted that an independent registered
public accounting firm has been engaged to periodically review and assess the allocation methodologies to be used
solely by the Funds’ Board with respect to the profitability analysis.
23
ClearBridge
ETFs
Board Approval of Management
and
Subadvisory Agreements (unaudited) (cont’d)
The Board noted management’s
belief that costs incurred in establishing the infrastructure necessary for the type of fund operations
conducted by each Manager and its affiliates may not be fully reflected in the expenses allocated to each Fund in determining
its profitability, as well as the fact that the level of profits, to a certain extent, reflected operational cost savings
and efficiencies initiated by management. As part of this evaluation, the Board considered management’s outsourcing of
certain operations, which effort has required considerable up-front expenditures by the Managers, but over the long run,
is expected to result in greater efficiencies. The Board also noted management’s expenditures in improving shareholder services
provided to the Funds, as well as the need to implement systems and meet additional regulatory and compliance requirements
resulting from recent US Securities and Exchange Commission and other regulatory requirements.
The Board also considered the extent to which each
Manager and its affiliates might derive ancillary benefits from fund operations,
including potential benefits resulting from personnel and systems enhancements necessitated by fund growth, as well
as increased leverage with service providers and counterparties. Based upon its consideration of all these factors, the
Board concluded that the level of profits realized by each Manager and its affiliates from providing services to each Fund was
not excessive in view of the nature, extent and quality of services provided to each Fund.
Economies of Scale
The Board reviewed and considered the extent to which
each Manager may realize economies of scale, if any, as each Fund grows larger
and whether each Fund’s management fee structure reflects any economies of scale for the benefit of shareholders.
The Board considered that each Fund would likely experience benefits from the Unified Fee at the Fund’s projected
asset levels because of FTFA’s contractual requirement to bear most of the Fund’s ordinary operating expenses. The Board
noted that, under the Unified Fee, it is not anticipated that any of the Funds will generate significant, if any, profit for
FTFA and/or its affiliates for some time. The Board considered management’s view that any analyses of potential economies of
scale in managing a particular fund are inherently limited in light of the joint and common costs and investments each Manager
incurs across the FT family of funds as a whole. The Board also noted that as of December 31, 2024, ClearBridge Large
Cap Growth Select ETF’s net assets were approximately $400 million and Franklin ClearBridge Enhanced Income ETF
did not have an asset size that would likely enable it to achieve economies of scale. The Board also noted management’s representation
that for the fiscal year ended September 30, 2024, neither of the Funds experienced a profit. The Board recognized
that there would not likely be any economies of scale for Franklin ClearBridge Enhanced Income ETF until its assets grow.
The Board concluded that to the extent economies of scale may be realized by each Manager and its affiliates, ClearBridge
Large Cap Growth Select ETF’s management fee structure provided a sharing of benefits with the Fund and its shareholders
as the Fund grows.
Conclusion
Based on its review, consideration and evaluation of
all factors it believed relevant, including the above-described factors and
conclusions, the Board unanimously approved the continuance of each Management Agreement for an additional one-year period.
24
ClearBridge
ETFs
ClearBridge ETFs
Trustees
Alison J. Baumann
Rohit Bhagat
Chair
Chair
Deborah D. McWhinney
Patrick O’Connor
Anantha K. Pradeep
Investment manager
Franklin Templeton Fund Adviser, LLC
Subadvisers
ClearBridge Investments, LLC
Franklin Managed Options Strategies, LLC
Custodian
The Bank of New York Mellon
Transfer agent
The Bank of New
York Mellon
240 Greenwich Street
New York, NY 10286
240 Greenwich Street
New York, NY 10286
Independent registered public accounting
firm
PricewaterhouseCoopers
LLP
San Francisco, CA
San Francisco, CA
ClearBridge ETFs
Franklin ClearBridge Enhanced Income ETF
ClearBridge Large Cap Growth Select ETF
Franklin ClearBridge Enhanced Income ETF
ClearBridge Large Cap Growth Select ETF
The Funds are separate investment series of Legg Mason
ETF Investment Trust, a Maryland statutory trust.
ClearBridge ETFs
Legg Mason Funds
One Madison Avenue, 17th Floor
New York, NY 10010
Legg Mason Funds
One Madison Avenue, 17th Floor
New York, NY 10010
The Funds file their complete schedule
of portfolio holdings with the Securities and Exchange Commission (“SEC”)
for the first and third quarters of each fiscal year as an exhibit to
their reports on Form N-PORT. The Funds’ Forms N-PORT are available
on the SEC’s website at www.sec.gov. To obtain information on Form
N-PORT, shareholders can call the Funds at (800) DIAL BEN/342-5236.
Information on how the Funds voted
proxies relating to portfolio securities during the prior 12-month period
ended June 30th of each year and a description of the policies and procedures
that the Funds use to determine how to vote proxies related to portfolio
transactions are available (1) without charge, upon request, by calling the
Funds at (800) DIAL BEN/342-5236, (2) at www.franklintempleton.com and (3)
on the SEC’s website at www.sec.gov.
This report is submitted for the general information
of the shareholders of Franklin ClearBridge Enhanced Income ETF and ClearBridge
Large Cap Growth Select ETF. This report is not authorized for distribution to prospective investors in the Funds unless
preceded or accompanied by a current prospectus.
Investors should consider each Fund’s investment
objectives, risks, charges and expenses carefully before investing.
Each prospectus contains this and other important information about the Funds.
Please read the prospectuses carefully before investing.
www.franklintempleton.com
© 2025 Franklin Distributors, LLC, Member FINRA/SIPC.
All rights reserved.
| ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 9. | PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 10. | REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 11. | STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as applicable.
| ITEM 12. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 13. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 14. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
Not applicable.
| ITEM 15. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
| ITEM 16. | CONTROLS AND PROCEDURES. |
| (a) | The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
| (b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are likely to materially affect the Registrant’s internal control over financial reporting. |
| ITEM 17. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
| ITEM 18. | RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION. |
| (a) | Not applicable. |
| (b) | Not applicable. |
| ITEM 19. | EXHIBITS. |
(a) (1) Not applicable.
Exhibit 99.CODE ETH
(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.CERT
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.906CERT
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto duly authorized.
Legg Mason ETF Investment Trust
| By: | /s/ Christopher Kings | |
| Christopher Kings | ||
| Chief Executive Officer – Finance and Administration | ||
| Date: | November 28, 2025 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ Christopher Kings | |
| Christopher Kings | ||
| Chief Executive Officer - Finance and Administration | ||
| Date: | November 28, 2025 |
| By: | /s/ Vivek Pai | |
| Vivek Pai | ||
| Chief Financial Officer, Chief Accounting Officer and Treasurer | ||
| Date: | November 28, 2025 |