09/28/2021 | Press release | Distributed by Public on 09/28/2021 04:07

Annual/Semi-Annual Report by Investment Company (SEC Filing - N-CSR)

Western Asset Short Duration Income ETF

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

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)

620 Eighth Avenue, 47^th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Marc A. De Oliveira

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: July 31

Date of reporting period: July 31, 2021

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ITEM 1.

REPORT TO STOCKHOLDERS.

The Annual Report to Stockholders is filed herewith.

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Annual Report		July 31, 2021

WESTERN ASSET

SHORT DURATION

INCOME ETF

WINC

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

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What's inside
Letter from the president			II
Fund overview			1
Fund at a glance			7
Fund expenses			8
Fund performance			9
Schedule of investments			11
Statement of assets and liabilities			24
Statement of operations			25
Statements of changes in net assets			26
Financial highlights			27
Notes to financial statements			28
Report of independent registered public accounting firm			40
Additional shareholder information			41
Additional information			42
Important tax information			49

Fund objective

The Fund seeks current income.

Letter from the president

Dear Shareholder,

We are pleased to provide the annual report of Western Asset Short Duration Income ETF for the twelve-month reporting period ended July 31, 2021. Please read on for a detailed look at prevailing economic and market conditions during the Fund's reporting period and to learn how those conditions have affected Fund performance.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.leggmason.com. Here you can gain immediate access to market and investment information, including:

•

Fund net asset value and market price,

•

Market insights and commentaries from our portfolio managers, and

•

A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

Patrick O'Connor

President and Chief Executive Officer - Investment Management

August 31, 2021

II		Western Asset Short Duration Income ETF

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Fund overview

Q. What is the Fund's investment strategy?

A. Western Asset Short Duration Income ETF (the "Fund") seeks current income. Under normal market conditions, the Fund invests at least 80% of its net assets, plus borrowings for investment purposes, in "investment grade" fixed income securities. Corporate debt securities, including notes, bonds, debentures and commercial paper, are fixed income securities usually issued by businesses to finance their operations. These securities may be secured or unsecured, may be issued by U.S. or foreign entities and may carry variable or floating rates of interest. The Fund may invest in Rule 144A securities. The Fund may also invest in other short-duration fixed income securities, such as floating rate loans and structured debt and in cash or cash equivalents such as money market securities. Securities in which the Fund will invest will be U.S. dollar-denominated although they may be issued by a foreign corporation or a U.S. affiliate of a foreign corporation, or a foreign government or its agencies and instrumentalities.

Although the Fund may invest in securities of any maturity, the Fund will normally maintain an effective durationⁱ, of three years or less. Investment grade securities are those rated by a rating agency at the time of purchase in one of the top four ratings categories (e.g., BBB-or higher by S&P Global Ratings ("S&P") or Baa3 or higher by Moody's Investors Service, Inc. ("Moody's")) or, if unrated, that we judged to be of comparable credit quality. The Fund may also invest up to 15% of its assets in fixed income securities that are below investment grade (e.g., BB+ or lower by S&P or Ba1 or lower by Moody's). Below investment grade securities are commonly known as "junk bonds" or "high yield securities."

The Fund may also invest up to 15% of its assets in mortgage-backed securities ("MBS") and asset-backed securities ("ABS"), including collateralized debt obligations ("CDOs"). The Fund may use derivatives, from time to time, in order to change the investment characteristics of its portfolio (such as shortening or lengthening duration) and/or for other purposes.

At Western Asset Management Company, LLC ("Western Asset"), the Fund's subadviser, we utilize a fixed income team approach, with decisions derived from interaction among various investment management sectors. The sector teams are comprised of Western Asset's senior portfolio management personnel, research analysts and an in-house economist. Under this team approach, management of client fixed income portfolios will reflect a consensus of interdisciplinary views within the Western Asset organization.

Q. What were the overall market conditions during the Fund's reporting period?

A. Fixed income markets experienced periods of volatility and, overall, modestly declined over the twelve-months ended July 31, 2021. Volatility was driven by a number of factors, including the repercussions from the COVID-19 pandemic, sharply falling and then rising global growth, trade conflicts, inflation concerns, and a number of geopolitical events. Most spread sectors (non-Treasuries) outperformed similar duration Treasuries. This was driven by continued monetary policy accommodation from the Federal Reserve Board ("Fed")ⁱⁱ and the rollout of several COVID-19 vaccines which triggered increased investor risk appetite.

Western Asset Short Duration Income ETF 2021 Annual Report				1

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Fund overview (cont'd)

Short-term U.S. Treasury yields moved higher as economic conditions improved. The yield for the two-year Treasury note began the reporting period at 0.11% and ended the period at 0.19%. The low of 0.09% occurred on February 5, 2021 and the high of 0.28% took place on June 25, 2021. Long-term U.S. Treasury yields moved sharply higher, as positive economic data triggered inflationary concerns and fears that the Fed may remove its monetary policy accommodations sooner than previously anticipated. The ten-year Treasury yield began the reporting period at 0.55%. The low of 0.52% occurred on August 4, 2020, and its high of 1.74% took place on March 19 and March 31, 2021. The ten-year Treasury yield then ended the period at 1.24%.

All told, the short duration investment-yield corporate bond market, as measured by the Bloomberg U.S. Corporate 1-5 Year Indexⁱⁱⁱ (prior to August 24, 2021, known as Bloomberg Barclays U.S. Corporate 1-5 Year Index), returned 1.71% for the twelve-month reporting period ended July 31, 2021.

Q. How did we respond to these changing market conditions?

A. A number of adjustments were made to the Fund's portfolio during the reporting period. We increased the Fund's allocation to bank loans, while reducing the Fund's exposures to high-yield corporate bonds. Within the high-yield corporate bond market, we added to the Fund's exposures to the Energy and Consumer Cyclical sectors¹, while paring its allocations to the Financials and Capital Goods² sectors. From a quality perspective, we increased the Fund's allocation to securities rated A, and reduced its exposure to securities rated CCC. Finally, we increased the Fund's duration during the reporting period.

The Fund employed U.S. Treasury futures to manage its duration and yield curve positioning. All told, they contributed to performance.

Performance review

For the twelve months ended July 31, 2021, Western Asset Short Duration Income ETF generated a 6.06% return on a net asset value ("NAV")^iv basis and 6.22% based on its market price^v per share.

The performance table shows the Fund's total return for the twelve months ended July 31, 2021 based on its NAV and market price. The Fund's broad-based market index, the Bloomberg U.S. Corporate 1 - 5 Year Index, returned 1.71% over the same timeframe. The Lipper Short Investment Grade Debt Funds Category Average^vi returned 2.22% for the same period. Please note that Lipper performance returns are based on each fund's NAV.

1	Consumer Cyclicals consists of the following industries: Automotive, Entertainment, Gaming, Home Construction, Lodging, Retailers, Restaurants, Textiles and other consumer services.

2	Capital Goods consists of the following industries: Aerospace & Defense, Building Materials, Diversified Manufacturing, Construction Machines, Packaging and Environmental.

2			Western Asset Short Duration Income ETF 2021 Annual Report

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Performance Snapshot as of July 31, 2021 (unaudited)
		6 months			12 months
Western Asset Short Duration Income ETF:
$26.32 (NAV)			1.53	%			6.06	%*†
$26.38 (Market Price)			1.48	%			6.22	%*‡
Bloomberg U.S. Corporate 1-5 Year Index			0.51	%*			1.71	%
Lipper Short Investment Grade Debt Funds Category Average			0.47	%			2.22	%

The performance shown represents past performance. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Principal value and investment returns will fluctuate so shares, when sold, may be worth more or less than their original cost. Performance data current to the most recent month-end is available at www.leggmason.com/etf.

Investors buy and sell shares of an exchange-traded fund ("ETF") at market price (not NAV) in the secondary market throughout the trading day. These shares are not individually available for direct purchase from or direct redemption to the ETF. Market price returns are typically based upon the official closing price of the Fund's shares. These returns do not represent investors' returns had they traded shares at other times. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.

Information showing the Fund's net asset value, market price, premiums and discounts, and bid-ask spreads for various time periods is available by visiting the Fund's website at www.leggmason.com/etf.

As of the Fund's current prospectus dated November 25, 2020, the gross total annual fund operating expense ratio for the Fund was 0.29%.

* Total returns are based on changes in NAV or market price, respectively. Returns reflect the deduction of all Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors pay on distributions or the sale of shares.

† Total return assumes the reinvestment of all distributions, at NAV.

‡ Total return assumes the reinvestment of all distributions, at market price, which typically is based upon the official closing price of the Fund's shares.

Q. What were the leading contributors to performance?

A. The largest contributor to the Fund's relative performance during the reporting period was its security selection. In particular, the Fund's holdings in the Energy sector, led by an overweight to Occidental Petroleum Corp., added the most value. The company benefited from sharply rising oil process. Within the Information Technology sector, an underweight to Oracle Corp. was beneficial, as the company increased its leverage during the reporting period.

From a sector perspective, overweights to the Energy, Industrials and Financials sectors was the most additive for returns. In terms of the Fund's ratings biases, an overweight to securities rated BBB contributed to performance, as lower rated securities generally outperformed their higher rated counterparts. Finally, the Fund's tactical duration and yield curve positioning contributed to performance.

Western Asset Short Duration Income ETF 2021 Annual Report				3

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Fund overview (cont'd)

Q. What were the leading detractors from performance?

A. The largest detractor from the Fund's relative performance during the reporting period was its overweight to the banking industry. While there were no other material detractors from performance, several individual securities were modest headwinds for results.

Looking for additional information?

The Fund's daily NAV is available online at www.leggmason.com/etf. The Fund is traded under the symbol "WINC" and its closing market price is available on most financial websites. In a continuing effort to provide information concerning the Fund, shareholders may call 1-877-721-1926 (toll free), Monday through Friday from 8:00 a.m. to 5:30 p.m. Eastern time, for the Fund's current NAV, market price and other information.

4			Western Asset Short Duration Income ETF 2021 Annual Report

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Thank you for your investment in Western Asset Short Duration Income ETF. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Fund's investment goals.

Sincerely,

Western Asset Management Company, LLC

August 31, 2021

RISKS: Fixed income securities involve interest rate, credit, inflation and reinvestment risks; and possible loss of principal. As interest rates rise, the value of fixed income securities falls. High-yield securities include greater price volatility, illiquidity, and possibility of default. International investments are subject to special risks, including currency fluctuations, social, economic, and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Emerging market countries tend to have economic, political, and legal systems that are less developed and are less stable than those of more developed countries. Derivatives, such as options and futures, can be illiquid, may disproportionately increase losses, and have a potentially large impact on fund performance. The use of leverage may increase volatility and possibility of loss. Potential active and frequent trading may result in higher transaction costs and increased investor liability. Asset-backed, mortgage-backed or mortgage related securities are subject to prepayment and extension risks. Active management and diversification do not ensure gains or protect against market declines. Please see the Fund's prospectus for a more complete discussion of these and other risks and the Fund's investment strategies.

Portfolio holdings and breakdowns are as of July 31, 2021 and are subject to change and may not be representative of the portfolio managers' current or future investments. Please refer to pages 10 through 22 for a list and percentage breakdown of the Fund's holdings.

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

Western Asset Short Duration Income ETF 2021 Annual Report				5

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Fund overview (cont'd)

i

Effective duration is a duration calculation for bonds with embedded options. Effective duration takes into account that expected cash flows will fluctuate as interest rates change. Please note, duration measures the sensitivity of price (the value of principal) of a fixed income investment to a change in interest rates.

ii	The Federal Reserve Board (the "Fed") is responsible for the formulation of U.S. policies designed to promote economic growth, full employment, stable prices, and a sustainable pattern of international trade and payments.

iii

The Bloomberg U.S. Corporate 1-5 Year Index (prior to August 24, 2021, known as Bloomberg Barclays U.S. Corporate 1-5 Year Index) is an unmanaged index that measures the performance of the investment-grade, fixed-rate, taxable 1-5 year maturity corporate bond market. It includes U.S. dollar-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.

iv	Net Asset Value ("NAV") is calculated by subtracting total liabilities from total assets and dividing the results by the number of shares outstanding.

v	Market Price is determined by supply and demand. It is the price at which an investor purchases or sells shares of the Fund. The Market Price may differ from the Fund's NAV.

vi

Lipper, Inc., a wholly-owned subsidiary of Refinitiv, provides independent insight on global collective investments. Returns are based on the period ended July 31, 2021, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 381 funds for the six-month period and among the 371 funds for the twelve-month period in the Fund's Lipper category.

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Fund at a glance^† (unaudited)

Investment breakdown (%) as a percent of total investments

†	The bar graph above represents the composition of the Fund's investments as of July 31, 2021 and July 31, 2020 and does not include derivatives, such as futures contracts. The composition of the Fund's investments is subject to change at any time.

Western Asset Short Duration Income ETF 2021 Annual Report				7

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Fund expenses (unaudited)

Example

As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, such as brokerage commissions paid on purchases and sales of Fund shares; and (2) ongoing costs, including management fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.

This example is based on an investment of $1,000 invested on February 1, 2021 and held for the six months ended July 31, 2021.

Actual expenses

The table below titled "Based on Actual Total Return" provides information about actual account values and actual expenses. You may use the information provided in this table, together with the amount you invested, to estimate the expenses that you paid over the period. To estimate the expenses you paid on your account, divide your ending account value by $1,000 (for example, an $8,600 ending account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During the Period".

Hypothetical example for comparison purposes

The table below titled "Based on Hypothetical Total Return" provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5.00% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use the information provided in this table to compare the ongoing costs of investing in the Fund and other funds. To do so, compare the 5.00% hypothetical example relating to the Fund with the 5.00% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table below are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

Based on actual total return1				Based on hypothetical total return1
Actual Total Return2		Beginning Account Value		Ending Account Value		Annualized Expense Ratio		Expenses Paid During the Period3				Hypothetical Annualized Total Return		Beginning Account Value		Ending Account Value		Annualized Expense Ratio		Expenses Paid During the Period3
		1.53%				$	1,000.00			$	1,015.30				0.29	%			$	1.45					5.00	%				$1,000.00				$	1,023.36				0.29	%			$	1.45

1	For the six months ended July 31, 2021.

2

Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value. Total return is not annualized, as it may not be representative of the total return for the year. 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. Past performance is no guarantee of future results.

3	Expenses (net of fee waivers and/or expense reimbursements) are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (181), then divided by 365.

8			Western Asset Short Duration Income ETF 2021 Annual Report

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Fund performance (unaudited)

Net Asset Value
Average annual total returns1
Twelve Months Ended 7/31/21			6.06	%
Inception* through 7/31/21			5.84
Cumulative total returns1
Inception date of 2/7/19 through 7/31/21			15.08	%

Market Price
Average annual total returns2
Twelve Months Ended 7/31/21			6.22	%
Inception* through 7/31/21			5.93

Cumulative total returns2
Inception date of 2/7/19 through 7/31/21			15.35	%

All figures represent past performance and are not a guarantee of future results. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. The returns shown do not reflect the deduction of brokerage commissions or taxes that investors would pay on distributions or the sale of shares. 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.

Investors buy and sell shares of the Fund at market price, not NAV, in the secondary market throughout the trading day. These shares are not individually available for direct purchase from or direct redemption to the Fund. The Fund's per share NAV is the value of one share of the Fund and is calculated by dividing the value of total assets less total liabilities by the number of shares outstanding. The NAV return is based on the NAV of the Fund and effective July 1, 2020, market price returns typically are based upon the official closing price of the Fund's shares. Prior to July 1, 2020, market price returns generally were based upon the mid-point between the bid and ask on the Fund's principal trading market when the Fund's NAV was determined, which was typically 4:00 p.m. Eastern time (U.S.). Market price performance reported for periods prior to July 1, 2020 continue to reflect market prices calculated based upon the mid-point between the bid and ask on the Fund's principal trading market typically as of 4:00 p.m. Eastern time (U.S.). These returns do not represent investors' returns had they traded shares at other times. NAV and market price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and market price, respectively. As with other exchange-traded funds, NAV returns and market price returns may differ because of factors such as the supply and demand for Fund shares and investors' assessment of the underlying value of the Fund's portfolio securities.

1	Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value.

2	Assumes the reinvestment of all distributions, including returns of capital, if any, at market price.

*	Inception date of the Fund is February 7, 2019.

Western Asset Short Duration Income ETF 2021 Annual Report				9

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Fund performance (unaudited) (cont'd)

Historical performance

Value of $10,000 invested in

Western Asset Short Duration Income ETF vs. Bloomberg U.S. Corporate 1-5 Year Index† - February 7, 2019 - July 31, 2021

All figures represent past performance and are not a guarantee of future results. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when sold, may be worth more or less than their original cost. NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV. The returns shown do not reflect the deduction of brokerage commissions or taxes that investors would pay on distributions or the sale of shares. 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.

†

Hypothetical illustration of $10,000 invested in the Western Asset Short Duration Income ETF on February 7, 2019 (inception date), assuming the reinvestment of all distributions, including returns of capital, if any, at net asset value through July 31, 2021. The hypothetical illustration also assumes a $10,000 investment in the Bloomberg U.S. Corporate 1-5 Year Index (the "Index"). The Fund's per share NAV is the value of one share of the Fund and is calculated by dividing the value of total assets less total liabilities by the number of shares outstanding. The NAV return is based on the NAV of the Fund. The Index is an unmanaged index that measures the performance of the investment grade, fixed-rate, taxable 1-5 year maturity corporate bond market. It includes U.S. dollar-denominated securities publicly issued by U.S. and non-U.S. industrial, utility and financial issuers. The Index is not subject to the same management and trading expenses as a fund. An index is a statistical composite that tracks a specified financial market, sector, or rules based investment process. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.

10			Western Asset Short Duration Income ETF 2021 Annual Report

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Schedule of investments

July 31, 2021

Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Corporate Bonds & Notes - 88.5%
Communication Services - 8.1%
Diversified Telecommunication Services - 2.9%
AT&T Inc., Senior Notes			0.900	%			3/25/24			$	30,000			$	30,083
AT&T Inc., Senior Notes			3.400	%			5/15/25				80,000				87,274
AT&T Inc., Senior Notes			4.250	%			3/1/27				20,000				22,887
NTT Finance Corp., Senior Notes			1.162	%			4/3/26				200,000				200,643	(a)
Verizon Communications Inc., Senior Notes			2.550	%			3/21/31				170,000				176,750
Verizon Communications Inc., Senior Notes			2.650	%			11/20/40				20,000				19,581
Verizon Communications Inc., Senior Notes			3.400	%			3/22/41				10,000				10,805
Verizon Communications Inc., Senior Notes			3.550	%			3/22/51				10,000				10,880
Verizon Communications Inc., Senior Notes			3.700	%			3/22/61				10,000				11,047
Total Diversified Telecommunication Services															569,950
Interactive Media & Services - 0.3%
Alphabet Inc., Senior Notes			1.100	%			8/15/30				70,000				67,076
Media - 4.3%
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes			4.464	%			7/23/22				30,000				30,965
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes			4.908	%			7/23/25				220,000				249,724
Comcast Corp., Senior Notes			3.400	%			4/1/30				80,000				89,270
Comcast Corp., Senior Notes			3.750	%			4/1/40				10,000				11,592
Fox Corp., Senior Notes			4.030	%			1/25/24				40,000				43,254
Time Warner Entertainment Co. LP, Senior Secured Notes			8.375	%			3/15/23				380,000				427,234
Total Media															852,039
Wireless Telecommunication Services - 0.6%
T-Mobile USA Inc., Senior Secured Notes			2.050	%			2/15/28				80,000				81,797
T-Mobile USA Inc., Senior Secured Notes			2.250	%			11/15/31				30,000				30,070
Total Wireless Telecommunication Services															111,867
Total Communication Services															1,600,932
Consumer Discretionary - 8.6%
Automobiles - 4.1%
Ford Motor Credit Co. LLC, Senior Notes			3.350	%			11/1/22				200,000				204,544
General Motors Co., Senior Notes			6.125	%			10/1/25				130,000				153,880
General Motors Co., Senior Notes (3 mo. USD LIBOR + 0.900%)			1.028	%			9/10/21				10,000				10,006	(b)
General Motors Financial Co. Inc., Senior Notes			3.450	%			4/10/22				40,000				40,625

See Notes to Financial Statements.

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Schedule of investments (cont'd)

July 31, 2021

Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Automobiles - continued
General Motors Financial Co. Inc., Senior Notes			3.700	%			5/9/23			$	80,000			$	83,702
General Motors Financial Co. Inc., Senior Notes (3 mo. USD LIBOR + 1.310%)			1.457	%			6/30/22				50,000				50,449	(b)
Hyundai Capital America, Senior Notes			0.800	%			1/8/24				60,000				59,756	(a)
Nissan Motor Co. Ltd., Senior Notes			3.043	%			9/15/23				200,000				208,472	(a)
Total Automobiles															811,434
Hotels, Restaurants & Leisure - 2.5%
Genting New York LLC/GENNY Capital Inc., Senior Notes			3.300	%			2/15/26				200,000				201,128	(a)
Las Vegas Sands Corp., Senior Notes			2.900	%			6/25/25				210,000				216,291
Marriott International Inc., Senior Notes			3.600	%			4/15/24				80,000				85,345
Total Hotels, Restaurants & Leisure															502,764
Household Durables - 0.4%
DR Horton Inc., Senior Notes			2.500	%			10/15/24				60,000				62,887
MDC Holdings Inc., Senior Notes			2.500	%			1/15/31				10,000				9,851
Total Household Durables															72,738
Internet & Direct Marketing Retail - 0.6%
Amazon.com Inc., Senior Notes			1.000	%			5/12/26				10,000				10,106
Amazon.com Inc., Senior Notes			1.200	%			6/3/27				80,000				80,770
Amazon.com Inc., Senior Notes			2.500	%			6/3/50				10,000				9,625
eBay Inc., Senior Notes			2.600	%			5/10/31				10,000				10,369
Total Internet & Direct Marketing Retail															110,870
Multiline Retail - 0.6%
Dollar Tree Inc., Senior Notes			3.700	%			5/15/23				40,000				42,173
Dollar Tree Inc., Senior Notes			4.000	%			5/15/25				50,000				55,239
Nordstrom Inc., Senior Notes			2.300	%			4/8/24				20,000				20,074
Total Multiline Retail															117,486
Specialty Retail - 0.4%
Lowe's Cos. Inc., Senior Notes			1.300	%			4/15/28				90,000				88,821
Total Consumer Discretionary															1,704,113
Consumer Staples - 2.3%
Beverages - 0.5%
Anheuser-Busch InBev Worldwide Inc., Senior Notes			4.750	%			1/23/29				10,000				12,028
Anheuser-Busch InBev Worldwide Inc., Senior Notes (3 mo. USD LIBOR + 0.740%)			0.859	%			1/12/24				70,000				70,550	(b)
Coca-Cola Co., Senior Notes			2.500	%			6/1/40				10,000				10,159
Total Beverages															92,737

See Notes to Financial Statements.

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Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Food & Staples Retailing - 0.1%
Costco Wholesale Corp., Senior Notes			1.375	%			6/20/27			$	10,000			$	10,132
Costco Wholesale Corp., Senior Notes			1.600	%			4/20/30				10,000				9,966
Total Food & Staples Retailing															20,098
Food Products - 0.1%
Hershey Co., Senior Notes			1.700	%			6/1/30				10,000				10,080
Mars Inc., Senior Notes			2.375	%			7/16/40				10,000				9,770	(a)
Mondelez International Inc., Senior Notes			1.500	%			2/4/31				10,000				9,612
Total Food Products															29,462
Household Products - 0.1%
Clorox Co., Senior Notes			1.800	%			5/15/30				10,000				9,999
Kimberly-Clark Corp., Senior Notes			1.050	%			9/15/27				10,000				9,914
Total Household Products															19,913
Tobacco - 1.5%
Altria Group Inc., Senior Notes			2.625	%			9/16/26				70,000				74,101
BAT International Finance PLC, Senior Notes			1.668	%			3/25/26				80,000				80,813
Cargill Inc., Senior Notes			1.375	%			7/23/23				10,000				10,193	(a)
Cargill Inc., Senior Notes			0.750	%			2/2/26				130,000				129,404	(a)
Total Tobacco															294,511
Total Consumer Staples															456,721
Energy - 14.4%
Oil, Gas & Consumable Fuels - 14.4%
Cimarex Energy Co., Senior Notes			4.375	%			6/1/24				60,000				65,195
Cimarex Energy Co., Senior Notes			3.900	%			5/15/27				100,000				111,274
Cimarex Energy Co., Senior Notes			4.375	%			3/15/29				30,000				34,349
Comstock Resources Inc., Senior Notes			7.500	%			5/15/25				10,000				10,350	(a)
Continental Resources Inc., Senior Notes			4.500	%			4/15/23				90,000				93,586
Devon Energy Corp., Senior Notes			5.850	%			12/15/25				40,000				46,955
Devon Energy Corp., Senior Notes			5.250	%			10/15/27				46,000				49,130	(a)
Devon Energy Corp., Senior Notes			5.875	%			6/15/28				12,000				13,258	(a)
Devon Energy Corp., Senior Notes			4.500	%			1/15/30				120,000				130,870	(a)
Devon OEI Operating LLC, Senior Notes			7.500	%			9/15/27				20,000				24,870
Diamondback Energy Inc., Senior Notes			3.250	%			12/1/26				110,000				118,777
Ecopetrol SA, Senior Notes			5.875	%			9/18/23				130,000				140,270
El Paso Natural Gas Co. LLC, Senior Notes			7.500	%			11/15/26				50,000				63,999
Energy Transfer LP, Senior Notes			4.200	%			9/15/23				10,000				10,671
Energy Transfer LP, Senior Notes			4.050	%			3/15/25				290,000				315,100
Energy Transfer LP, Senior Notes			2.900	%			5/15/25				70,000				73,837
Enterprise Products Operating LLC, Senior Notes			2.800	%			1/31/30				70,000				75,078
Enterprise Products Operating LLC, Senior Notes			3.950	%			1/31/60				10,000				11,269

See Notes to Financial Statements.

Western Asset Short Duration Income ETF 2021 Annual Report				13

Table of Contents

Schedule of investments (cont'd)

July 31, 2021

Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Oil, Gas & Consumable Fuels - continued
EOG Resources Inc., Senior Notes			4.375	%			4/15/30			$	20,000			$	23,969
EQT Corp., Senior Notes			3.000	%			10/1/22				30,000				30,412
EQT Corp., Senior Notes			3.125	%			5/15/26				10,000				10,287	(a)
EQT Corp., Senior Notes			3.900	%			10/1/27				10,000				10,838
Exxon Mobil Corp., Senior Notes			3.482	%			3/19/30				60,000				68,192
Exxon Mobil Corp., Senior Notes			4.327	%			3/19/50				10,000				12,648
MEG Energy Corp., Senior Notes			7.125	%			2/1/27				20,000				20,985	(a)
MPLX LP, Senior Notes			3.375	%			3/15/23				10,000				10,441
MPLX LP, Senior Notes			1.750	%			3/1/26				100,000				101,603
Occidental Petroleum Corp., Senior Notes			6.950	%			7/1/24				10,000				11,150
Parsley Energy LLC/Parsley Finance Corp., Senior Notes			5.625	%			10/15/27				10,000				10,775	(a)
Parsley Energy LLC/Parsley Finance Corp., Senior Notes			4.125	%			2/15/28				10,000				10,500	(a)
Petrobras Global Finance BV, Senior Notes			5.999	%			1/27/28				50,000				56,937
Pioneer Natural Resources Co., Senior Notes			0.550	%			5/15/23				60,000				60,073
Pioneer Natural Resources Co., Senior Notes			1.125	%			1/15/26				40,000				39,768
Qatar Petroleum, Senior Notes			1.375	%			9/12/26				200,000				200,548	(a)
Range Resources Corp., Senior Notes			5.000	%			8/15/22				180,000				183,600
Range Resources Corp., Senior Notes			9.250	%			2/1/26				50,000				54,250
Southern Natural Gas Co. LLC, Senior Notes			0.625	%			4/28/23				20,000				19,982	(a)
Tennessee Gas Pipeline Co. LLC, Senior Notes			7.000	%			10/15/28				30,000				39,531
Tennessee Gas Pipeline Co. LLC, Senior Notes			2.900	%			3/1/30				50,000				52,664	(a)
Transcontinental Gas Pipe Line Co. LLC, Senior Notes			3.250	%			5/15/30				10,000				10,905
Western Midstream Operating LP, Senior Notes			3.950	%			6/1/25				30,000				30,937
Williams Cos. Inc., Senior Notes			7.875	%			9/1/21				16,000				16,093
Williams Cos. Inc., Senior Notes			3.700	%			1/15/23				350,000				363,779
Total Energy															2,839,705
Financials - 30.4%
Banks - 17.4%
Bank of America Corp., Senior Notes (0.810% to 10/24/23 then SOFR + 0.740%)			0.810	%			10/24/24				20,000				20,073	(b)
Bank of America Corp., Senior Notes (1.319% to 6/19/25 then SOFR + 1.150%)			1.319	%			6/19/26				10,000				10,054	(b)
Bank of America Corp., Senior Notes (1.734% to 7/22/26 then SOFR + 0.960%)			1.734	%			7/22/27				370,000				376,424	(b)
Bank of America Corp., Senior Notes (2.299% to 7/21/31 then SOFR + 1.220%)			2.299	%			7/21/32				40,000				40,399	(b)

See Notes to Financial Statements.

14			Western Asset Short Duration Income ETF 2021 Annual Report

Table of Contents

Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Banks - continued
Bank of America Corp., Senior Notes (2.592% to 4/29/30 then SOFR + 2.150%)			2.592	%			4/29/31			$	110,000			$	114,009	(b)
BNP Paribas SA, Senior Notes (1.675% to 6/30/26 then SOFR + 0.912%)			1.675	%			6/30/27				200,000				201,528	(a)(b)
Canadian Imperial Bank of Commerce, Senior Notes			0.950	%			6/23/23				10,000				10,102
Citigroup Inc., Senior Notes (0.981% to 5/1/24 then SOFR + 0.669%)			0.981	%			5/1/25				20,000				20,109	(b)
Citigroup Inc., Senior Notes (1.462% to 6/9/26 then SOFR + 0.770%)			1.462	%			6/9/27				200,000				200,221	(b)
Citigroup Inc., Senior Notes (5.316% to 3/26/40 then SOFR + 4.548%)			5.316	%			3/26/41				40,000				54,318	(b)
Citigroup Inc., Subordinated Notes			5.500	%			9/13/25				120,000				140,295
Danske Bank A/S, Senior Notes (3.244% to 12/20/24 then 3 mo. USD LIBOR + 1.591%)			3.244	%			12/20/25				200,000				213,293	(a)(b)
HSBC Holdings PLC, Senior Notes (0.976% to 5/24/24 then SOFR + 0.708%)			0.976	%			5/24/25				200,000				200,528	(b)
HSBC Holdings PLC, Subordinated Notes			7.625	%			5/17/32				10,000				14,254
Intesa Sanpaolo SpA, Senior Notes			3.375	%			1/12/23				210,000				218,164	(a)
Intesa Sanpaolo SpA, Subordinated Notes			4.198	%			6/1/32				200,000				205,817	(a)
JPMorgan Chase & Co., Senior Notes (0.563% to 2/16/24 then SOFR + 0.420%)			0.563	%			2/16/25				10,000				9,964	(b)
JPMorgan Chase & Co., Senior Notes (1.578% to 4/22/26 then SOFR + 0.885%)			1.578	%			4/22/27				280,000				283,290	(b)
JPMorgan Chase & Co., Senior Notes (2.522% to 4/22/30 then SOFR + 2.040%)			2.522	%			4/22/31				10,000				10,400	(b)
JPMorgan Chase & Co., Subordinated Notes (2.956% to 5/13/30 then SOFR + 2.515%)			2.956	%			5/13/31				100,000				106,499	(b)
Natwest Group PLC, Senior Notes (3 mo. USD LIBOR + 1.470%)			1.626	%			5/15/23				260,000				262,536	(b)
Royal Bank of Canada, Senior Notes			1.150	%			7/14/26				80,000				80,102
Santander UK Group Holdings PLC, Senior Notes (1.673% to 6/14/26 then SOFR + 0.989%)			1.673	%			6/14/27				200,000				200,994	(b)
Truist Financial Corp., Senior Notes (1.267% to 3/2/26 then SOFR + 0.609%)			1.267	%			3/2/27				80,000				80,424	(b)
Wells Fargo & Co., Senior Notes			3.000	%			10/23/26				210,000				227,578
Wells Fargo & Co., Senior Notes (0.805% to 5/19/24 then SOFR + 0.510%)			0.805	%			5/19/25				110,000				110,205	(b)

See Notes to Financial Statements.

Western Asset Short Duration Income ETF 2021 Annual Report				15

Table of Contents

Schedule of investments (cont'd)

July 31, 2021

Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Banks - continued
Wells Fargo & Co., Senior Notes (4.478% to 4/4/30 then SOFR + 4.032%)			4.478	%			4/4/31			$	10,000			$	11,920	(b)
Westpac Banking Corp., Senior Notes			1.150	%			6/3/26				10,000				10,101
Total Banks															3,433,601
Capital Markets - 8.1%
Charles Schwab Corp., Senior Notes			0.750	%			3/18/24				30,000				30,222
Charles Schwab Corp., Senior Notes			1.150	%			5/13/26				160,000				161,452
CI Financial Corp., Senior Notes			3.200	%			12/17/30				100,000				103,916
Credit Suisse Group AG, Senior Notes (3.091% to 5/14/31 then SOFR + 1.730%)			3.091	%			5/14/32				280,000				292,478	(a)(b)
Daimler Finance North America LLC, Senior Notes			1.450	%			3/2/26				150,000				151,850	(a)
Goldman Sachs Group Inc., Senior Notes			3.800	%			3/15/30				30,000				34,058
Goldman Sachs Group Inc., Senior Notes (0.855% to 2/12/25 then SOFR + 0.609%)			0.855	%			2/12/26				40,000				39,790	(b)
Goldman Sachs Group Inc., Senior Notes (1.093% to 12/9/25 then SOFR + 0.789%)			1.093	%			12/9/26				170,000				168,882	(b)
Goldman Sachs Group Inc., Subordinated Notes			4.250	%			10/21/25				30,000				33,672
Goldman Sachs Group Inc., Subordinated Notes			5.150	%			5/22/45				20,000				26,917
LPL Holdings Inc., Senior Notes			4.375	%			5/15/31				10,000				10,237	(a)
Morgan Stanley, Senior Notes (0.790% to 5/30/24 then SOFR + 0.525%)			0.790	%			5/30/25				60,000				59,913	(b)
Morgan Stanley, Senior Notes (1.512% to 7/20/26 then SOFR + 0.858%)			1.512	%			7/20/27				20,000				20,166	(b)
Morgan Stanley, Senior Notes (1.593% to 5/4/26 then SOFR + 0.879%)			1.593	%			5/4/27				190,000				192,852	(b)
Morgan Stanley, Senior Notes (2.188% to 4/28/25 then SOFR + 1.990%)			2.188	%			4/28/26				30,000				31,149	(b)
Morgan Stanley, Senior Notes (2.699% to 1/22/30 then SOFR + 1.143%)			2.699	%			1/22/31				40,000				42,165	(b)
UBS AG, Senior Notes			1.250	%			6/1/26				200,000				200,967	(a)
Total Capital Markets															1,600,686
Consumer Finance - 1.0%
Air Lease Corp., Senior Notes			0.700	%			2/15/24				160,000				159,547
Synchrony Financial, Senior Notes			2.850	%			7/25/22				40,000				40,873
Total Consumer Finance															200,420
Diversified Financial Services - 1.5%
Element Fleet Management Corp., Senior Notes			1.600	%			4/6/24				10,000				10,171	(a)

See Notes to Financial Statements.

16			Western Asset Short Duration Income ETF 2021 Annual Report

Table of Contents

Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Diversified Financial Services - continued
GE Capital International Funding Co. Unlimited Co., Senior Notes			3.373	%			11/15/25			$	260,000			$	285,333
Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK)			6.500	%			9/15/24				12,228				12,289	(a)(c)
Total Diversified Financial Services															307,793
Insurance - 2.4%
American International Group Inc., Senior Notes			2.500	%			6/30/25				80,000				84,443
American International Group Inc., Senior Notes			3.400	%			6/30/30				10,000				11,047
AmFam Holdings Inc., Senior Notes			2.805	%			3/11/31				100,000				104,287	(a)
Arthur J Gallagher & Co., Senior Notes			2.500	%			5/20/31				40,000				40,572
GA Global Funding Trust, Secured Notes			1.000	%			4/8/24				10,000				10,071	(a)
New York Life Global Funding, Senior Secured Notes			0.950	%			6/24/25				90,000				90,549	(a)
Prudential Financial Inc., Senior Notes			1.500	%			3/10/26				10,000				10,221
Reliance Standard Life Global Funding II, Secured Notes			2.500	%			10/30/24				80,000				83,653	(a)
Reliance Standard Life Global Funding II, Secured Notes			2.750	%			1/21/27				30,000				31,961	(a)
Total Insurance															466,804
Total Financials															6,009,304
Health Care - 5.6%
Biotechnology - 1.2%
AbbVie Inc., Senior Notes			2.600	%			11/21/24				30,000				31,738
AbbVie Inc., Senior Notes			2.950	%			11/21/26				190,000				205,937
Total Biotechnology															237,675
Health Care Equipment & Supplies - 0.7%
Becton Dickinson and Co., Senior Notes			2.894	%			6/6/22				71,000				72,412
Becton Dickinson and Co., Senior Notes			3.363	%			6/6/24				70,000				74,984
Total Health Care Equipment & Supplies															147,396
Health Care Providers & Services - 2.9%
Bon Secours Mercy Health Inc., Secured Notes			3.464	%			6/1/30				10,000				11,174
Centene Corp., Senior Notes			2.450	%			7/15/28				20,000				20,275
Centene Corp., Senior Notes			4.625	%			12/15/29				50,000				54,798
Centene Corp., Senior Notes			3.375	%			2/15/30				70,000				73,030
Centene Corp., Senior Notes			2.625	%			8/1/31				10,000				10,075	(d)
Cigna Corp., Senior Notes			4.125	%			11/15/25				10,000				11,250
Cigna Corp., Senior Notes			2.400	%			3/15/30				110,000				114,415
Cigna Corp., Senior Notes			3.200	%			3/15/40				10,000				10,657
CommonSpirit Health, Senior Secured Notes			2.782	%			10/1/30				10,000				10,574

See Notes to Financial Statements.

Western Asset Short Duration Income ETF 2021 Annual Report				17

Table of Contents

Schedule of investments (cont'd)

July 31, 2021

Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Health Care Providers & Services - continued
CVS Health Corp., Senior Notes			3.700	%			3/9/23			$	2,000			$	2,101
CVS Health Corp., Senior Notes			2.625	%			8/15/24				40,000				42,205
CVS Health Corp., Senior Notes			2.875	%			6/1/26				10,000				10,804
CVS Health Corp., Senior Notes			1.300	%			8/21/27				40,000				39,733
CVS Health Corp., Senior Notes			4.250	%			4/1/50				60,000				73,599
UnitedHealth Group Inc., Senior Notes			1.150	%			5/15/26				80,000				80,708
Total Health Care Providers & Services															565,398
Life Sciences Tools & Services - 0.1%
Agilent Technologies Inc., Senior Notes			2.300	%			3/12/31				20,000				20,412
Pharmaceuticals - 0.7%
Astrazeneca Finance LLC, Senior Notes			1.200	%			5/28/26				70,000				70,589
Merck & Co. Inc., Senior Notes			1.450	%			6/24/30				60,000				59,516
Total Pharmaceuticals															130,105
Total Health Care															1,100,986
Industrials - 6.7%
Aerospace & Defense - 1.9%
Avolon Holdings Funding Ltd., Senior Notes			3.625	%			5/1/22				2,000				2,039	(a)
Avolon Holdings Funding Ltd., Senior Notes			4.250	%			4/15/26				30,000				32,797	(a)
Boeing Co., Senior Notes			4.875	%			5/1/25				20,000				22,427
Boeing Co., Senior Notes			2.196	%			2/4/26				220,000				221,994
Boeing Co., Senior Notes			3.250	%			2/1/28				20,000				21,291
General Dynamics Corp., Senior Notes			4.250	%			4/1/50				17,000				22,124
Lockheed Martin Corp., Senior Notes			1.850	%			6/15/30				40,000				40,644
Raytheon Technologies Corp., Senior Notes			3.125	%			7/1/50				20,000				21,109
Total Aerospace & Defense															384,425
Airlines - 2.0%
American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes			5.500	%			4/20/26				30,000				31,388	(a)
Continental Airlines 2007-1 Class B Pass-Through Trust			6.903	%			4/19/22				56,552				57,245
Delta Air Lines Inc./SkyMiles IP Ltd., Senior Secured Notes			4.500	%			10/20/25				110,000				118,250	(a)
Delta Air Lines Inc./SkyMiles IP Ltd., Senior Secured Notes			4.750	%			10/20/28				10,000				11,175	(a)
United Airlines Holdings Inc., Senior Notes			4.250	%			10/1/22				130,000				131,950
United Airlines Pass-Through Trust			4.875	%			1/15/26				37,370				39,201
Total Airlines															389,209
Commercial Services & Supplies - 0.5%
Republic Services Inc., Senior Notes			2.500	%			8/15/24				100,000				105,079

See Notes to Financial Statements.

18			Western Asset Short Duration Income ETF 2021 Annual Report

Table of Contents

Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Industrial Conglomerates - 0.4%
3M Co., Senior Notes			3.700	%			4/15/50			$	10,000			$	11,980
Honeywell International Inc., Senior Notes			1.950	%			6/1/30				60,000				61,796
Total Industrial Conglomerates															73,776
Trading Companies & Distributors - 1.9%
Air Lease Corp., Senior Notes			3.000	%			9/15/23				80,000				83,601
Aviation Capital Group LLC, Senior Notes			4.125	%			8/1/25				270,000				293,610	(a)
Total Trading Companies & Distributors															377,211
Total Industrials															1,329,700
Information Technology - 8.2%
Electronic Equipment, Instruments & Components - 0.6%
SYNNEX Corp., Senior Notes			1.250	%			8/9/24				70,000				70,017	(a)(d)
Vontier Corp., Senior Notes			1.800	%			4/1/26				40,000				40,147	(a)
Total Electronic Equipment, Instruments & Components												110,164
IT Services - 1.4%
Mastercard Inc., Senior Notes			3.300	%			3/26/27				60,000				67,006
PayPal Holdings Inc., Senior Notes			1.350	%			6/1/23				30,000				30,564
PayPal Holdings Inc., Senior Notes			2.400	%			10/1/24				130,000				136,996
PayPal Holdings Inc., Senior Notes			2.300	%			6/1/30				30,000				31,545
S&P Global Inc., Senior Notes			1.250	%			8/15/30				10,000				9,621
Visa Inc., Senior Notes			1.100	%			2/15/31				10,000				9,589
Total IT Services															285,321
Semiconductors & Semiconductor Equipment - 3.2%
Broadcom Inc., Senior Notes			5.000	%			4/15/30				80,000				95,509
Broadcom Inc., Senior Notes			4.150	%			11/15/30				110,000				124,684
Lam Research corp., Senior Notes			1.900	%			6/15/30				40,000				40,710
Microchip Technology Inc., Senior Secured Notes			2.670	%			9/1/23				20,000				20,774
Microchip Technology Inc., Senior Secured Notes			0.972	%			2/15/24				50,000				50,094	(a)
Microchip Technology Inc., Senior Secured Notes			0.983	%			9/1/24				60,000				59,918	(a)
Micron Technology Inc., Senior Notes			4.640	%			2/6/24				150,000				163,401
NVIDIA Corp., Senior Notes			3.700	%			4/1/60				10,000				12,087
NXP BV/NXP Funding LLC/NXP USA Inc., Senior Notes			3.400	%			5/1/30				40,000				44,251	(a)
Skyworks Solutions Inc., Senior Notes			1.800	%			6/1/26				10,000				10,183
Total Semiconductors & Semiconductor Equipment												621,611
Software - 2.2%
Adobe Inc., Senior Notes			2.150	%			2/1/27				120,000				126,396
Adobe Inc., Senior Notes			2.300	%			2/1/30				80,000				84,113

See Notes to Financial Statements.

Western Asset Short Duration Income ETF 2021 Annual Report				19

Table of Contents

Schedule of investments (cont'd)

July 31, 2021

Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Software - continued
Fortinet Inc., Senior Notes			1.000	%			3/15/26			$	120,000			$	119,663
salesforce.com Inc., Senior Notes			1.500	%			7/15/28				100,000				101,315
Total Software															431,487
Technology Hardware, Storage & Peripherals - 0.8%
Apple Inc., Senior Notes			0.700	%			2/8/26				60,000				59,703
Apple Inc., Senior Notes			1.400	%			8/5/28				100,000				99,933	(d)
Total Technology Hardware, Storage & Peripherals												159,636
Total Information Technology															1,608,219
Materials - 2.0%
Chemicals - 0.2%
PPG Industries Inc., Senior Notes			1.200	%			3/15/26				30,000				30,134
Containers & Packaging - 0.0%††
Graphic Packaging International LLC, Senior Secured Notes			1.512	%			4/15/26				10,000				10,033	(a)
Metals & Mining - 1.5%
Freeport-McMoRan Inc., Senior Notes			4.375	%			8/1/28				30,000				31,763
Glencore Finance Canada Ltd., Senior Notes			4.250	%			10/25/22				100,000				104,465	(a)
Glencore Funding LLC, Senior Notes			1.625	%			9/1/25				140,000				142,187	(a)
Yamana Gold Inc., Senior Notes			4.625	%			12/15/27				10,000				11,131
Total Metals & Mining															289,546
Paper & Forest Products - 0.3%
Georgia-Pacific LLC, Senior Notes			0.625	%			5/15/24				30,000				30,077	(a)
Suzano Austria GmbH, Senior Notes			3.125	%			1/15/32				30,000				29,730
Total Paper & Forest Products															59,807
Total Materials															389,520
Real Estate - 0.2%
Equity Real Estate Investment Trusts (REITs) - 0.2%
Alexandria Real Estate Equities Inc., Senior Notes			2.000	%			5/18/32				10,000				9,955
Diversified Healthcare Trust, Senior Notes			4.750	%			5/1/24				10,000				10,325
Simon Property Group LP, Senior Notes			3.500	%			9/1/25				10,000				10,959
Total Real Estate															31,239
Utilities - 2.0%
Electric Utilities - 2.0%
DTE Electric Co., First Mortgage			2.625	%			3/1/31				30,000				32,203
Duke Energy Ohio Inc., First Mortgage			2.125	%			6/1/30				10,000				10,199
Edison International, Senior Notes			4.950	%			4/15/25				100,000				111,078
FirstEnergy Corp., Senior Notes			3.600	%			7/15/22				50,000				50,627
NRG Energy Inc., Senior Secured Notes			2.450	%			12/2/27				90,000				91,993	(a)
Pacific Gas and Electric Co., First Mortgage Bonds			1.750	%			6/16/22				50,000				49,932

See Notes to Financial Statements.

20			Western Asset Short Duration Income ETF 2021 Annual Report

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Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Electric Utilities - continued
Pacific Gas and Electric Co., First Mortgage Bonds			2.100	%			8/1/27			$	40,000			$	38,912
Toledo Edison Co.			2.650	%			5/1/28				10,000				10,321	(a)
Total Utilities															395,265
Total Corporate Bonds & Notes (Cost - $17,163,034)												17,465,704
Asset-Backed Securities - 3.7%
AGL CLO 6 Ltd., 2020-6A AR (3 mo. USD LIBOR + 1.200%)			1.334	%			7/20/34				100,000				99,975	(a)(b)
CIFC Funding Ltd., 2021-4A A (3 mo. USD LIBOR + 1.050%)			1.144	%			7/15/33				110,000				109,836	(a)(b)
Halcyon Loan Advisors Funding Ltd., 2017-2A A2 (3 mo. USD LIBOR + 1.700%)			1.834	%			1/17/30				250,000				249,999	(a)(b)
Navient Private Education Refi Loan Trust, 2020-DA A			1.690	%			5/15/69				56,195				56,879	(a)
Neuberger Berman Loan Advisers CLO 42 Ltd., 2021-42A A (3 mo. USD LIBOR + 1.100%)			1.241	%			7/16/35				210,000				209,736	(a)(b)
Total Asset-Backed Securities (Cost - $724,560)															726,425
Sovereign Bonds - 1.4%
Argentina - 0.3%
Argentine Republic Government International Bond, Senior Notes			1.000	%			7/9/29				4,718				1,810
Argentine Republic Government International Bond, Senior Notes, Step bond (0.500% to 7/9/23 then 0.750%)			0.500	%			7/9/30				135,800				49,363
Total Argentina															51,173
Chile - 1.0%
Chile Government International Bond, Senior Notes			2.550	%			7/27/33				200,000				203,954
Peru - 0.1%
Peruvian Government International Bond, Senior Notes			2.783	%			1/23/31				20,000				20,078
Total Sovereign Bonds (Cost - $297,540)															275,205
U.S. Government & Agency Obligations - 0.6%
U.S. Government Obligations - 0.6%
U.S. Treasury Bonds			1.875	%			2/15/41				10,000				10,113
U.S. Treasury Bonds			2.250	%			5/15/41				10,000				10,742
U.S. Treasury Bonds			1.375	%			8/15/50				20,000				17,566
U.S. Treasury Bonds			1.625	%			11/15/50				10,000				9,349
U.S. Treasury Notes			0.750	%			5/31/26				30,000				30,103
U.S. Treasury Notes			1.625	%			5/15/31				35,000				36,285
Total U.S. Government & Agency Obligations (Cost - $112,235)								114,158

See Notes to Financial Statements.

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Schedule of investments (cont'd)

July 31, 2021

Western Asset Short Duration Income ETF

(Percentages shown based on Fund net assets)

Security		Rate			Maturity Date			Face Amount			Value
Senior Loans - 0.1%
Industrials - 0.1%
Airlines - 0.1%
Delta Air Lines Inc., Initial Term Loan (the greater of 3 mo. USD LIBOR or 1.000% + 3.750%)			4.750	%			10/20/27			$	10,000			$	10,553	(b)(e)(f)
Materials - 0.0%††
Paper & Forest Products - 0.0%††
Asplundh Tree Expert LLC, 2021 Refinancing Term Loan (1 mo. USD LIBOR + 1.750%)			1.842	%			9/7/27				9,925				9,818	(b)(e)(f)
Real Estate - 0.0%††
Equity Real Estate Investment Trusts (REITs) - 0.0%††
VICI Properties 1 LLC, Term Loan B			-				12/20/24				10,000				9,888	(g)
Total Senior Loans (Cost - $29,699)															30,259
Total Investments before Short-Term Investments (Cost - $18,327,068)								18,611,751
								Shares
Short-Term Investments - 5.7%
BNY Mellon Cash Reserve Fund (Cost - $1,133,423)			0.010	%							1,133,423				1,133,423
Total Investments - 100.0% (Cost - $19,460,491)												19,745,174
Liabilities in Excess of Other Assets - (0.0)%††															(2,339	)
Total Net Assets - 100.0%														$	19,742,835

††	Represents less than 0.1%.

(a)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Trustees.

(b)

Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.

(c)	Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional securities.

(d)	Securities traded on a when-issued or delayed delivery basis.

(e)	Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

(f)	Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan.

(g)	All or a portion of this loan is unfunded as of July 31, 2021. The interest rate for fully unfunded term loans is to be determined.

See Notes to Financial Statements.

22			Western Asset Short Duration Income ETF 2021 Annual Report

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Western Asset Short Duration Income ETF

Abbreviation(s) used in this schedule:
CLO		- Collateralized Loan Obligation
LIBOR		- London Interbank Offered Rate
PIK		- Payment-In-Kind
SOFR		- Secured Overnight Financing Rate
USD		- United States Dollar

At July 31, 2021, the Fund had the following open futures contracts:

		Number of Contracts			Expiration Date			Notional Amount			Market Value			Unrealized Appreciation (Depreciation)
Contracts to Buy:
U.S. Treasury 2-Year Notes			10				9/21			$	2,205,814			$	2,206,562			$	748
U.S. Treasury 5-Year Notes			41				9/21				5,086,748				5,102,258				15,510
																			16,258
Contracts to Sell:
U.S. Treasury 10-Year Notes			26				9/21				3,440,432				3,495,781				(55,349)
U.S. Treasury Long-Term Bonds			7				9/21				1,139,004				1,153,031				(14,027)
U.S. Treasury Ultra 10-Year Notes			9				9/21				1,339,972				1,352,250				(12,278)
U.S. Treasury Ultra Long-Term Bonds			1				9/21				186,201				199,531				(13,330)
																			(94,984)
Net unrealized depreciation on open futures contracts			$	(78,726)

See Notes to Financial Statements.

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Statement of assets and liabilities

July 31, 2021

Assets:
Investments, at value (Cost - $19,460,491)		$	19,745,174
Interest receivable			130,114
Deposits with brokers for open futures contracts			70,024
Receivable for securities sold			20,164
Total Assets			19,965,476
Liabilities:
Payable for securities purchased			209,868
Payable to broker - net variation margin on open futures contracts			8,828
Investment management fee payable			3,945
Total Liabilities			222,641
Total Net Assets		$	19,742,835
Net Assets:
Par value (Note 5)		$	8
Paid-in capital in excess of par value			20,235,624
Total distributable earnings (loss)			(492,797)
Total Net Assets		$	19,742,835
Shares Outstanding			750,000
Net Asset Value			$26.32

See Notes to Financial Statements.

24			Western Asset Short Duration Income ETF 2021 Annual Report

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Statement of operations

For the Year Ended July 31, 2021

Investment Income:
Interest		$	253,280
Expenses:
Investment management fee (Note 2)			27,146
Net Investment Income			226,134
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts (Notes 1, 3 and 4):
Net Realized Gain From:
Investment transactions			64,155
Futures contracts			106,575
Net Realized Gain			170,730
Change in Net Unrealized Appreciation (Depreciation) From:
Investments			142,853
Futures contracts			(41,666)
Change in Net Unrealized Appreciation (Depreciation)			101,187
Net Gain on Investments and Futures Contracts			271,917
Increase in Net Assets From Operations		$	498,051

See Notes to Financial Statements.

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Statements of changes in net assets

For the Years Ended July 31,		2021			2020
Operations:
Net investment income		$	226,134			$	791,681
Net realized gain (loss)			170,730				(868,899)
Change in net unrealized appreciation (depreciation)			101,187				(505,819)
Increase (Decrease) in Net Assets From Operations			498,051				(583,037)
Distributions to Shareholders From (Note 1):
Total distributable earnings			(239,911)				(969,065)
Decrease in Net Assets From Distributions to Shareholders			(239,911)				(969,065)
Fund Share Transactions (Note 5):
Net proceeds from sale of shares (450,000 and 0 shares issued, respectively)			11,830,154				-
Cost of shares repurchased (0 and 700,000 shares repurchased, respectively)			-				(16,594,522)
Increase (Decrease) in Net Assets From Fund Share Transactions			11,830,154				(16,594,522)
Increase (Decrease) in Net Assets			12,088,294				(18,146,624)
Net Assets:
Beginning of year			7,654,541				25,801,165
End of year		$	19,742,835			$	7,654,541

See Notes to Financial Statements.

26			Western Asset Short Duration Income ETF 2021 Annual Report

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Financial highlights

For a share of beneficial interest outstanding throughout each year ended July 31 unless otherwise noted::
		20211			20201			20191,2
Net asset value, beginning of year			$25.52				$25.80				$25.00
Income (loss) from operations:
Net investment income			0.63				0.97				0.48
Net realized and unrealized gain (loss)			0.90				(0.10)	3			0.72
Total income from operations			1.53				0.87				1.20
Less distributions from:
Net investment income			(0.73)				(1.04)				(0.40)
Net realized gains			-				(0.11)				-
Total distributions			(0.73)				(1.15)				(0.40)
Net asset value, end of year			$26.32				$25.52				$25.80
Total return, based on NAV4			6.06	%			3.52	%			4.82	%
Net assets, end of year (000s)			$19,743				$7,655				$25,801
Ratios to average net assets:
Gross expenses			0.29	%			0.29	%			0.29	%5
Net expenses			0.29				0.29				0.29	5
Net investment income			2.42				3.85				3.99	5
Portfolio turnover rate6			65	%			72	%			54	%

1	Per share amounts have been calculated using the average shares method.

2	For the period February 7, 2019 (inception date) to July 31, 2019.

3

Calculation of the net loss per share (both realized and unrealized) does not correlate to the aggregate realized and unrealized loss presented in the Statement of Operations due to the timing of sales and repurchases of Fund Shares in relation to fluctuating market values of the investments of the Fund.

4

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.

5	Annualized.

6	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.

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Notes to financial statements

1. Organization and significant accounting policies

Western Asset Short Duration Income ETF (the "Fund") is a separate diversified investment series of Legg Mason ETF Investment Trust (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 Fund is an actively managed exchange-traded fund ("ETF"). 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 Fund may be directly purchased from and redeemed by the Fund at NAV solely by certain large institutional investors who have entered into agreements with the Fund's distributor ("Authorized Participants"). Also unlike shares of a mutual fund, shares of the Fund are listed on a national securities exchange and trade in the secondary market at market prices that change throughout the day.

Shares of the Fund are listed and traded at market prices on NASDAQ. The market price for the Fund's shares may be different from the Fund's NAV. The Fund issues and redeems 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 Fund at NAV. Creation Units generally are issued and redeemed in cash. However, Creation Units may also be issued and redeemed partially in-kind for a basket of securities and partially in cash. Except when aggregated in Creation Units, shares of the Fund are not redeemable securities. Shareholders who are not Authorized Participants may not redeem shares directly from the Fund at NAV.

The Fund seeks current income.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles ("GAAP"). 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. 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

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valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. 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. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund 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 the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund's Board of Trustees.

The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Global Fund Valuation Committee (formerly known as Legg Mason North Atlantic Fund Valuation Committee prior to March 1, 2021) (the "Valuation Committee"). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the Fund's pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, 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 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.

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Notes to financial statements (cont'd)

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, 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 of Trustees quarterly.

The Fund uses 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 - 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 Fund's 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 Fund's assets and liabilities carried at fair value:

ASSETS
Description		Quoted Prices (Level 1)			Other Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Long-Term Investments†:
Corporate Bonds & Notes			-			$	17,465,704				-			$	17,465,704
Asset-Backed Securities			-				726,425				-				726,425
Sovereign Bonds			-				275,205				-				275,205
U.S. Government & Agency Obligations			-				114,158				-				114,158
Senior Loans			-				30,259				-				30,259
Total Long-Term Investments			-				18,611,751				-				18,611,751
Short-Term Investments†			-				1,133,423				-				1,133,423
Total Investments			-			$	19,745,174				-			$	19,745,174

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ASSETS (cont'd)
Description		Quoted Prices (Level 1)			Other Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Other Financial Instruments:
Futures Contracts††		$	16,258				-				-			$	16,258
Total		$	16,258			$	19,745,174				-			$	19,761,432
LIABILITIES
Description		Quoted Prices (Level 1)			Other Significant Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total
Other Financial Instruments:
Futures Contracts††		$	94,984				-				-			$	94,984

†	See Schedule of Investments for additional detailed categorizations.

††	Reflects the unrealized appreciation (depreciation) of the instruments.

(b) Futures contracts.The Fund uses futures contracts generally to gain exposure to, or hedge against, changes in certain asset classes or in an attempt to increase the Fund's return. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.

Upon entering into a futures contract, the Fund is required to deposit cash or securities with a broker in an amount equal to a certain percentage of the contract amount. This is known as the ''initial margin'' and subsequent payments (''variation margin'') are made or received by the Fund each day, depending on the daily fluctuation in the value of the contract. For certain futures, including foreign denominated futures, variation margin is not settled daily, but is recorded as a net variation margin payable or receivable. The daily changes in contract value are recorded as unrealized appreciation or depreciation in the Statement of Operations and the Fund recognizes a realized gain or loss when the contract is closed.

Futures contracts involve, to varying degrees, risk of loss in excess of the amounts reflected in the financial statements. 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) Loan participations.The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Fund's investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.

The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of

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Notes to financial statements (cont'd)

the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.

(d) Unfunded loan commitments. The Fund may enter into certain credit agreements where all or a portion of the total amount committed may be unfunded. The Fund is obligated to fund these commitments at the borrower's discretion. The commitments are disclosed in the accompanying Schedule of Investments. At July 31, 2021, the Fund had sufficient cash and/or securities to cover these commitments.

(e) Securities traded on a when-issued and delayed delivery basis. The Fund may trade securities on a when-issued or delayed delivery basis. In when-issued and delayed delivery transactions, the securities are purchased or sold by the Fund with payment and delivery taking place in the future in order to secure what is considered to be an advantageous price and yield to the Fund at the time of entering into the transaction.

Purchasing such securities involves risk of loss if the value of the securities declines prior to settlement. These securities are subject to market fluctuations and their current value is determined in the same manner as for other securities.

(f) Credit and market risk. The Fund invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Fund's investments in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Fund's investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.

Investments in securities that are collateralized by real estate mortgages are subject to certain credit and liquidity risks. When market conditions result in an increase in default rates of the underlying mortgages and the foreclosure values of underlying real estate properties are materially below the outstanding amount of these underlying mortgages, collection of the full amount of accrued interest and principal on these investments may be doubtful. Such market conditions may significantly impair the value and liquidity of these investments and may result in a lack of correlation between their credit ratings and values.

(g) Foreign investment risks. The Fund's 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 Fund. Foreign

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investments may also subject the Fund 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.

(h) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Fund's subadviser attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the subadviser. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.

With exchange traded and centrally cleared derivatives, there is less counterparty risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default of the clearing broker or clearinghouse.

The Fund has entered into master agreements, such as an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or similar agreement, with certain of its derivative counterparties that govern over-the-counter ("OTC") derivatives and provide for general obligations, representations, agreements, collateral posting terms, netting provisions in the event of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Fund's net assets or net asset value per share over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.

Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment. However, absent an event of default by the counterparty or a termination of the agreement, the terms of the ISDA Master Agreements do not result in an offset of reported amounts of financial assets and

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Notes to financial statements (cont'd)

financial liabilities in the Statement of Assets and Liabilities across transactions between the Fund and the applicable counterparty. The enforceability of the right to offset may vary by jurisdiction.

Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearinghouse for exchange traded derivatives while collateral terms are contract specific for OTC traded derivatives. Cash collateral that has been pledged to cover obligations of the Fund under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities. Securities pledged as collateral, if any, for the same purpose are noted in the Schedule of Investments.

As of July 31, 2021, the Fund did not have any open OTC derivative transactions with credit related contingent features in a net liability position.

(i) 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), adjusted for amortization of premium and accretion of discount, is recorded on the accrual basis. Paydown gains and losses on mortgage- and asset-backed securities are recorded as adjustments to interest income. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

(j) Distributions to shareholders. Distributions from net investment income are declared and paid monthly. Distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

(k) Federal and other taxes. It is the Fund's 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 Fund intends to distribute its 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 Fund's financial statements.

Management has analyzed the Fund's tax positions taken on income tax returns for all open tax years and has concluded that as of July 31, 2021, no provision for income tax is required in the Fund's financial statements. The Fund's 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.

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(l) 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. During the current year, the Fund had no reclassifications.

2. Investment management agreement and other transactions with affiliates

Legg Mason Partners Fund Advisor, LLC ("LMPFA") is the Fund's investment manager. Western Asset Management Company, LLC ("Western Asset"), is the Fund's subadviser and Western Asset Management Company Pte. Ltd. in Singapore ("Western Asset Singapore"), Western Asset Management Company Ltd in Japan ("Western Asset Japan") and Western Asset Management Company Limited in London ("Western Asset London") are the Fund's sub-subadvisers. LMPFA, Western Asset, Western Asset Singapore, Western Asset Japan and Western Asset London are indirect, wholly-owned subsidiaries of Franklin Resources, Inc. ("Franklin Resources").

LMPFA provides administrative and certain oversight services to the Fund. LMPFA delegates to the subadviser the day-to-day portfolio management of the Fund. The 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 LMPFA under the investment management agreement.

Under the investment management agreement and subject to the general supervision of the Fund's Board of Trustees, LMPFA 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. The Fund pays an investment management fee, calculated daily and paid monthly, at an annual rate of 0.29% of the Fund's average daily net assets.

As compensation for its subadvisory services, LMPFA pays Western Asset monthly 70% of the management fee paid by the Fund to LMPFA, net of (i) all fees and expenses incurred by LMPFA 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. Western Asset pays Western Asset Singapore, Western Asset Japan and Western Asset London a monthly subadvisory fee in an amount equal to 100% of the management fee paid to Western Asset on the assets that Western Asset allocates to each such non-U.S. subadviser to manage.

Franklin Distributors, LLC (formerly known as Legg Mason Investor Services, LLC prior to July 7, 2021) ("Franklin Distributors") serves as the distributor of Creation Units for the Fund on an agency basis. Franklin Distributors is an indirect, wholly-owned broker-dealer subsidiary of Franklin Resources.

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Notes to financial statements (cont'd)

The Fund's Board of Trustees has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan, the 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 Fund, 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.

3. Investments

During the year ended July 31, 2021, the aggregate cost of purchases and proceeds from sales of investments (excluding in-kind transactions and short-term investments) and U.S. Government & Agency Obligations were as follows:

		Investments			U.S. Government & Agency Obligations
Purchases		$	16,049,447			$	1,215,772
Sales			4,913,226				1,131,433

During the year ended July 31, 2021, there were no in-kind transactions (Note 5).

At July 31, 2021, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:

		Cost			Gross Unrealized Appreciation			Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Securities		$	19,462,407			$	321,089			$	(38,322)			$	282,767
Futures contracts			-				16,258				(94,984)				(78,726)

4. Derivative instruments and hedging activities

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 July 31, 2021.

ASSET DERIVATIVES1
		Interest Rate Risk
Futures contracts2		$	16,258
LIABILITY DERIVATIVES1
		Interest Rate Risk
Futures contracts2		$	94,984

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1	Generally, the balance sheet location for asset derivatives is receivables/net unrealized appreciation and for liability derivatives is payables/net unrealized depreciation.

2	Includes cumulative unrealized appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only net variation margin is reported within the receivables and/or payables on the Statement of Assets and Liabilities.

The following tables provide information about the effect of derivatives and hedging activities on the Fund's Statement of Operations for the year ended July 31, 2021. 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 unrealized appreciation (depreciation) resulting from the Fund's derivatives and hedging activities during the period.

AMOUNT OF REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED
		Interest Rate Risk
Futures contracts		$	106,575
CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED
		Interest Rate Risk
Futures contracts		$	(41,666)

During the year ended July 31, 2021, the volume of derivative activity for the Fund was as follows:

		Average Market Value
Futures contracts (to buy)		$	3,182,822
Futures contracts (to sell)			2,384,773

5. Fund share transactions

At July 31, 2021, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. Fund shares are issued and redeemed by the Fund only in Creation Units or Creation Unit aggregations, where 50,000 shares of the Fund constitute a Creation Unit. Such transactions are generally on a cash basis. However, Creation Units may also be issued and redeemed partially in-kind for a basket of securities and partially in cash. Transactions in capital shares of the Fund are disclosed in detail in the Statement 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. Creations and redemptions for cash (when cash creations and redemptions are available or specified) may be subject to an additional variable fee.

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Notes to financial statements (cont'd)

6. Income tax information and distributions to shareholders

The tax character of distributions paid during the period ended July 31, 2021, was as follows:

		2021			2020
Distributions paid from:
Ordinary income		$	239,911			$	969,065

As of July 31, 2021, the components of distributable earnings (loss) on a tax basis were as follows:

Undistributed ordinary income - net		$	25,230
Deferred capital losses*			(798,616)
Other book/tax temporary differences(a)			76,548
Unrealized appreciation (depreciation)(b)			204,041
Total distributable earnings (loss) - net		$	(492,797)

*

These capital losses have been deferred in the current year as either short-term or long-term losses. The losses will be deemed to occur on the first day of the next taxable year in the same character as they were originally deferred and will be available to offset future taxable capital gains. These losses must be utilized before any of the Fund's capital loss carryforward may be utilized.

(a)	Other book/tax temporary differences are attributable to the tax deferral of losses on straddles and the realization for tax purposes of unrealized gains (losses) on certain futures contacts.

(b)	The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to the tax deferral of losses on wash sales.

7. Recent accounting pronouncement

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04,Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting. In January 2021, the FASB issued ASU No. 2021-01, with further amendments to Topic 848. The amendments in the ASUs provide optional temporary accounting recognition and financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the LIBOR and other interbank-offered based reference rates as of the end of 2021 and 2023. The ASUs are effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management has reviewed the requirements and believes the adoption of these ASUs will not have a material impact on the financial statements.

8. Other matters

The outbreak of the respiratory illness COVID-19 (commonly referred to as "coronavirus") has continued to rapidly spread around the world, causing considerable uncertainty for the global economy and financial markets. The ultimate economic fallout from the pandemic, and the long-term impact on economies, markets, industries and individual issuers, are not known. The COVID-19 pandemic could adversely affect the value and liquidity of the Fund's investments, impair the Fund's ability to satisfy redemption requests, and negatively impact

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the Fund's performance. In addition, the outbreak of COVID-19, and measures taken to mitigate its effects, could result in disruptions to the services provided to the Fund by its service providers.

* * *

The Fund's investments, payment obligations, and financing terms may be based on floating rates, such as the London Interbank Offered Rate, or "LIBOR," which is the offered rate for short-term Eurodollar deposits between major international banks. On March 5, 2021, the ICE Benchmark Administration, the administrator of LIBOR, stated that it will cease the publication of (i) the overnight and one-, three-, six- and twelve-month USD LIBOR settings immediately following the LIBOR publication on Friday, June 30, 2023 and (ii) all other LIBOR settings, including the one-week and two-month USD LIBOR settings, immediately following the LIBOR publication on Friday, December 31, 2021. There remains uncertainty regarding the nature of any replacement rate and the impact of the transition from LIBOR on the Fund's transactions and the financial markets generally. As such, the potential effect of a transition away from LIBOR on the Fund or the Fund's investments cannot yet be determined.

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Report of independent registered public accounting firm

To the Board of Trustees of Legg Mason ETF Investment Trust and Shareholders of Western Asset Short Duration Income ETF

Opinion on the financial statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Western Asset Short Duration Income ETF (one of the funds constituting Legg Mason ETF Investment Trust, referred to hereafter as the "Fund") as of July 31, 2021, the related statement of operations for the year ended July 31, 2021, the statement of changes in net assets for each of the two years in the period ended July 31, 2021, including the related notes, and the financial highlights for each of the two years in the period ended July 31, 2021 and for the period February 7, 2019 (inception date) through July 31, 2019 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of July 31, 2021, the results of its operations for the year then ended July 31, 2021, the changes in its net assets for each of the two years in the period ended July 31, 2021 and the financial highlights for each of the two years in the period ended July 31, 2021, and for the period February 7, 2019 (inception date) through July 31, 2019 the in conformity with accounting principles generally accepted in the United States of America.

Basis for opinion

These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2021 by correspondence with the custodian and brokers; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/PricewaterhouseCoopers LLP

Baltimore, Maryland

September 21, 2021

We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.

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Additional shareholder information (unaudited)

Results of special meeting of shareholders

A special meeting of shareholders was held on June 15, 2021 for shareholders of record as of March 1, 2021 (the "Record Date") to elect the Board of Trustees of the Trust. Shareholders of the Fund and each other series of the Trust voted together as a single class to elect the Board.

Shareholders of the Trust voted as indicated below (vote totals are rounded to the nearest whole number). Effective July 1, 2021, the Board is composed of the following Trustees:

Trustees		For		Withheld
Deborah D. McWhinney		941,735,402		14,088,498
Riodran Roett		943,565,325		12,258,574
Anantha K. Pradeep		942,060,249		13,763,651
Jennifer M. Johnson		943,888,843		11,935,057

The above Trustees have also been elected to serve as board members of other funds within the Franklin Templeton fund complex.

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Additional information (unaudited)

Information about Trustees and Officers

The business and affairs of Western Asset Short Duration Income ETF (the "Fund") are conducted by management under the supervision and subject to the direction of its Board of Trustees. The business address of each Trustee is One Franklin Parkway, San Mateo, California 94403-1906. Information pertaining to the Trustees and officers of the Fund is set forth below.

The Statement of Additional Information includes additional information about Trustees and is available, without charge, upon request by calling the Fund at 1-877-721-1926.

Independent Trustees†
Rohit Bhagat
Year of birth		1964
Position(s) with Trust		Lead Independent Trustee
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Managing Member, Mukt Capital, LLC (private investment firm) (2014-present); Advisor, Optimal Asset Management (investment technology and advisory services company) (2015- present); and formerly, Chairman, Asia Pacific, BlackRock (2009- 2012); Global Chief Operating Officer, Barclays Global Investors (investment management) (2005-2009); and Senior Partner, The Boston Consulting Group (management consulting) (1992-2005).
Number of funds in fund complex overseen by Trustee		59
Other Directorships held by Trustee during the past five years		AssetMark Financial Holdings, Inc. (investment solutions) (2018- present) and PhonePe (payment and financial services) (2020- present); and formerly, Axis Bank (financial) (2013-2021), FlipKart Limited (eCommerce company) (2019-2020), CapFloat Financial Services Pvt., Ltd. (non-banking finance company) (2018) and Zentific Investment Management (hedge fund) (2015-2018).
Deborah D. McWhinney
Year of birth		1955
Position(s) with Trust		Trustee
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Director of various companies; and formerly, Board Member, Lloyds Banking Group (2015-2018) (financial institution) and Fresenius Medical Group (2016-2018) (healthcare); Chief Executive Officer (2013-2014) and Chief Operating Officer (2011- 2013), CitiGroup Global Enterprise Payments (financial services); and President, Citi's Personal Banking and Wealth Management (2009-2011).
Number of funds in fund complex overseen by Trustee		59
Other Directorships held by Trustee during the past five years		IHS Markit (information services) (2015-present), Borg Warner (automotive) (2018-present) and LegalShield (consumer services) (2020-present); and formerly, Fluor Corporation (construction and engineering) (2014-2020) and Focus Financial Partners, LLC (financial services) (2018-2020).

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Independent Trustees† (cont'd)
Anantha K. Pradeep
Year of birth		1963
Position(s) with Trust		Trustee
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Chief Executive Officer, Smilable, Inc. (technology company) (2014-present); Chief Executive Officer, MachineVantage (technology company) (2018-present); Founder and Managing Partner, Consult Meridian, LLC (consulting company) (2009- present); and formerly, Founder, BoardVantage (board portal solutions provider delivering paperless process for boards and leadership) (2000-2002).
Number of funds in fund complex overseen by Trustee		59
Other Directorships held by Trustee during the past five years		None
Interested Trustee and Officer
Jennifer M. Johnson3*
Year of birth		1964
Position(s) with Trust		Trustee and Chairperson of the Board
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Chief Executive Officer, President and Director, Franklin Resources, Inc.; officer and/or director or trustee, as the case may be, of some of the other subsidiaries of Franklin Resources, Inc. and of eight of the investment companies in Franklin Templeton; and formerly, Chief Operating Officer and Executive Vice President, Franklin Resources, Inc. (1994-2015); Executive Vice President of Operations and Technology, Franklin Resources, Inc. (2005-2010); and Senior Vice President, Franklin Resources, Inc. (2003-2005).
Number of funds in fund complex overseen by Trustee		70
Other board memberships held by Trustee during the past five years		None
Additional Officers
Alison E. Baur Franklin Templeton One Franklin Parkway, San Mateo, CA 94403-1906
Year of birth		1964
Position(s) with Trust		Vice President
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Deputy General Counsel, Franklin Templeton; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.

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Additional information (unaudited) (cont'd)

Information about Trustees and Officers

Additional Officers (cont'd)
Fred Jensen Franklin Templeton 620 Eighth Avenue, 47th Floor, New York, NY 10018
Year of birth		1963
Position(s) with Trust		Chief Compliance Officer
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Director-Global Compliance of Franklin Templeton (since 2020); Managing Director of Legg Mason & Co. (2006 to 2020); Director of Compliance, Legg Mason Office of the Chief Compliance Officer (2006 to 2020); formerly, Chief Compliance Officer of Legg Mason Global Asset Allocation (prior to 2014); Chief Compliance Officer of Legg Mason Private Portfolio Group (prior to 2013); formerly, Chief Compliance Officer of The Reserve Funds (investment adviser, funds and broker-dealer) (2004) and Ambac Financial Group (investment adviser, funds and broker-dealer) (2000 to 2003).
Harris Goldblat Franklin Templeton 100 First Stamford Place, 6th Floor, Stamford, CT 06902
Year of birth		1969
Position(s) with Trust		Vice President and Assistant Secretary
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Associate General Counsel to Franklin Templeton (since 2020); Assistant Secretary of certain funds associated with Legg Mason & Co. or its affiliates (since 2006); formerly, Managing Director and Associate General Counsel of Legg Mason & Co. (2005 to 2020).
Steven J. Gray Franklin Templeton One Franklin Parkway, San Mateo, CA 94403-1906
Year of birth		1955
Position(s) with Trust		Vice President
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Senior Associate General Counsel, Franklin Templeton; Vice President, Franklin Templeton Distributors, Inc. and FASA, LLC; and officer of 44 of the investment companies in Franklin Templeton.

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Additional Officers (cont'd)
Matthew T. Hinkle Franklin Templeton One Franklin Parkway, San Mateo, CA 94403-1906
Year of birth		1971
Position(s) with Trust		Chief Executive Officer - Finance and Administration
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Senior Vice President, Franklin Templeton Services, LLC; officer of 44 of the investment companies in Franklin Templeton; and formerly, Vice President, Global Tax (2012-April 2017) and Treasurer/Assistant Treasurer, Franklin Templeton (2009-2017).
Susan Kerr Franklin Templeton 620 Eighth Avenue, 47th Floor, New York, NY 10018
Year of birth		1949
Position(s) with Trust		Vice President - AML Compliance
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Senior Compliance Analyst, Franklin Templeton (since 2020); Chief Anti-Money Laundering Compliance Officer of certain funds associated with Legg Mason & Co. or its affiliates (since 2013) and Anti-Money Laundering Compliance Officer (since 2012), Senior Compliance Officer (since 2011) and Assistant Vice President (since 2010) of Legg Mason Investor Services, LLC ("LMIS"); formerly, Assistant Vice President of Legg Mason & Co. (2010 to 2020)
Thomas C. Mandia Franklin Templeton 100 First Stamford Place, 6th Floor, Stamford, CT 06902
Year of birth		1962
Position(s) with Trust		Vice President and Assistant Secretary
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Senior Associate General Counsel to Franklin Templeton (since 2020); Secretary of LMPFA (since 2006); Assistant Secretary of certain funds associated with Legg Mason & Co. or its affiliates (since 2006); Secretary of LMAS (since 2002) and LMFAM (formerly registered investment advisers) (since 2013); formerly, Managing Director and Deputy General Counsel of Legg Mason & Co. (2005 to 2020).

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Additional information (unaudited) (cont'd)

Information about Trustees and Officers

Additional Officers (cont'd)
Patrick O'Connor Franklin Templeton One Franklin Parkway, San Mateo, CA 94403-1906
Year of birth		1967
Position(s) with Trust		President and Chief Executive Officer - Investment Management
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		President and Chief Investment Officer, Franklin Advisory Services, LLC; Senior Vice President, Franklin Advisers, Inc.; officer of five of the investment companies in Franklin Templeton; and formerly, Managing Director, Head of iShares Product Canada, BlackRock (1998-2014).
Vivek Pai Franklin Templeton 300 S.E. 2nd Street, Fort Lauderdale, FL 33301-1923
Year of birth		1970
Position(s) with Trust		Treasurer, Chief Financial Officer and Chief Accounting Officer
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Treasurer, U.S. Fund Administration & Reporting and officer of five of the investment companies in Franklin Templeton.
Navid J. Tofigh Franklin Templeton One Franklin Parkway, San Mateo, CA 94403-1906
Year of birth		1972
Position(s) with Trust		Vice President and Secretary
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Associate General Counsel and officer of 44 of the investment companies in Franklin Templeton.
Craig S. Tyle Franklin Templeton One Franklin Parkway, San Mateo, CA 94403-1906
Year of birth		1960
Position(s) with Trust		Vice President
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		General Counsel and Executive Vice President, Franklin Resources, Inc.; and officer of some of the other subsidiaries of Franklin Resources, Inc. and of 44 of the investment companies in Franklin Templeton.

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Additional Officers (cont'd)
Lori A. Weber Franklin Templeton 300 S.E. 2nd Street, Fort Lauderdale, FL 33301-1923
Year of birth		1964
Position(s) with Trust		Vice President
Term of office1 and length of time served2		Since July 2021
Principal occupation(s) during the past five years		Senior Associate General Counsel, Franklin Templeton; Assistant Secretary, Franklin Resources, Inc.; Vice President and Secretary, Templeton Investment Counsel, LLC; and officer of 44 of the investment companies in Franklin Templeton.

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Additional information (unaudited) (cont'd)

Information about Trustees and Officers

†	Trustees who are not "interested persons" of the Fund within the meaning of Section 2(a)(19) of the Investment Company Act of 1940, as amended (the "1940 Act").

*	Effective July 1, 2021, Ms. Johnson became Chair.

1	Each Trustee and officer serves until his or her respective successor has been duly elected and qualified or until his or her earlier death, resignation, retirement or removal.

2	Indicates the earliest year in which the Trustee became a board member for a fund in the Legg Mason fund complex or the officer took such office.

3	Ms. Johnson is an "interested person" of the Fund, as defined in the 1940 Act, because of her position with LMPFA and/or certain of its affiliates.

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Important tax information (unaudited)

By mid-February, tax information related to a shareholder's proportionate share of distributions paid during the preceding calendar year will be received, if applicable. Please also refer to www.leggmason.com for per share tax information related to any distributions paid during the preceding calendar year. Shareholders are advised to consult with their tax advisors for further information on the treatment of these amounts on their tax returns.

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Western Asset

Short Duration Income ETF

Trustees*

Rohit Bhagat

Deborah D. McWhinney

Anantha K. Pradeep

Jennifer M. Johnson**

Chair

Investment manager

Legg Mason Partners Fund Advisor, LLC

Subadvisers

Western Asset Management Company, LLC

Western Asset Management Company Limited

Western Asset Management Company Ltd

Western Asset Management Company Pte. Ltd.

Custodian

The Bank of New York Mellon

Transfer agent

The Bank of New York Mellon

240 Greenwich Street

New York, NY 10286

Independent registered public accounting firm

PricewaterhouseCoopers LLP

Baltimore, MD

*	During a June 15, 2021 special meeting of shareholders, a new group of Trustees were elected to oversee the funds of Legg Mason ETF Investment Trust, effective July 1, 2021.

**	Effective July 1, 2021, Ms. Johnson became Chair.

Western Asset Short Duration Income ETF

The Fund is a separate investment series of Legg Mason ETF Investment Trust, a Maryland statutory trust.

Western Asset Short Duration Income ETF

Legg Mason Funds

620 Eighth Avenue, 47th Floor

New York, NY 10018

The Fund files its 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 its reports on Form N-PORT. The Fund's 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 Fund at 1-877-721-1926.

Information on how the Fund 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 Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Fund at 1-877-721-1926, (2) at www.leggmason.com/etf and (3) on the SEC's website at www.sec.gov.

This report is submitted for the general information of the shareholders of Western Asset Short Duration Income ETF. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by a current prospectus.

Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other important information about the Fund. Please read the prospectus carefully before investing.

www.leggmason.com

© 2021 Franklin Distributors, LLC, Member FINRA/SIPC. All rights reserved.

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www.leggmason.com

© 2021 Franklin Distributors, LLC, Member FINRA/SIPC. All rights reserved.

ETFF542460 9/21 SR21-4237

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ITEM 2.

CODE OF ETHICS.

The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller.

ITEM 3.

AUDIT COMMITTEE FINANCIAL EXPERT.

The Board of Trustees of the registrant has determined that Rohit Bhagat possesses the technical attributes identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit committee financial expert," and has designated Rohit Bhagat as the Audit Committee's financial expert. Rohit Bhagat is an "independent" Trustees pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

ITEM 4.

PRINCIPAL ACCOUNTANT FEES AND SERVICES.

a) Audit Fees. The aggregate fees billed in the last two fiscal years ending July 31, 2020 and July 31, 2021 (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $45,000 in July 31, 2020 and $40,800 in July 31, 2021.

b) Audit-Related Fees. The aggregate fees billed in the Reporting Period for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $0 in July 31, 2020 and $0 in July 31, 2021.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $0 in July 31, 2020 and $0 in July 31, 2021. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed for tax services by the Auditors to service affiliates during the Reporting Periods that required pre-approval by the Audit Committee.

d) All Other Fees.

The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) for the Item 4 for the Legg Mason ETF Investment Trust, were $0 in July 31, 2020 and $0 in July 31, 2021.

All Other Fees. There were no other non-audit services rendered by the Auditor to Legg Mason Partners Fund Advisors, LLC ("LMPFA"), and any entity controlling, controlled by or under common control with LMPFA that provided ongoing services to Legg Mason ETF Investment Trust requiring pre-approval by the Audit Committee in the Reporting Period.

(e) Audit Committee's pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.

(1) The Charter for the Audit Committee (the "Committee") of the Board of each registered investment company (the "Fund") advised by LMPFA or one of their affiliates (each, an "Adviser") requires that the Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund's independent auditors to the Adviser and any Covered Service Providers if the engagement relates directly to the operations and financial reporting of the Fund. The Committee may implement policies and procedures by which such services are approved other than by the full Committee.

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The Committee shall not approve non-audit services that the Committee believes may impair the independence of the auditors. As of the date of the approval of this Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Adviser and any service providers controlling, controlled by or under common control with the Adviser that provide ongoing services to the Fund ("Covered Service Providers") constitutes not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Adviser and (c) any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.

(2) For the Legg Mason ETF Investment Trust, the percentage of fees that were approved by the audit committee, with respect to: Audit-Related Fees were 100% and 100% for July 31, 2020 and July 31, 2021; Tax Fees were 100% and 100% for July 31, 2020 and July 31, 2021; and Other Fees were 100% and 100% for July 31, 2020 and July 31, 2021.

(f) N/A

(g) Non-audit fees billed by the Auditor for services rendered to Legg Mason ETF Investment Trust, LMPFA and any entity controlling, controlled by, or under common control with LMPFA that provides ongoing services to Legg Mason ETF Investment Trust during the reporting period were $1,051,186 in July 31, 2020 and $476,285 in July 31, 2021.

(h) Yes. Legg Mason ETF Investment Trust's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Accountant's independence. All services provided by the Auditor to the Legg Mason ETF Investment Trust or to Service Affiliates, which were required to be pre-approved, were pre-approved as required.

ITEM 5.

AUDIT COMMITTEE OF LISTED REGISTRANTS.

a)

The independent board members are acting as the registrant's audit committee as specified in Section 3(a)(58)(B) of the Exchange Act. The Audit Committee consists of the following Board members:

Rohit Bhagat

Deborah D. McWhinney

Anantha K. Pradeep

Jennifer M. Johnson**

* During a June 15, 2021 special meeting of shareholders, a new group of Trustees were elected to oversee the funds of Legg Mason ETF Investment Trust, effective July 1, 2021.

** Effective July 1, 2021, Ms. Johnson became Chair.

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b) Not applicable.

ITEM 6.

SCHEDULE OF INVESTMENTS.

Included herein under Item 1.

ITEM 7.

DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8.

PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9.

PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11.

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 second fiscal quarter of 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 12.

DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 13.

EXHIBITS.

(a) (1) Code of Ethics attached hereto.

Exhibit 99.CODE ETH

(a) (2) 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

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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/ Matthew T. Hinkle
	Matthew T. Hinkle
	Chief Executive Officer
Date:		September 24, 2021

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/ Matthew T. Hinkle
	Matthew T. Hinkle
	Chief Executive Officer
Date:		September 24, 2021
By:		/s/ Vivek Pai
	Vivek Pai
	Principal Financial Officer
Date:		September 24, 2021