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Columbia ETF Trust II

Filed: 31 May 17, 8:00pm

 

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   811-22255   

 

                            Columbia ETF Trust II                            
(Exact name of registrant as specified in charter)

 

225 Franklin Street
                                         Boston, MA 02110                                         
(Address of principal executive offices) (Zip code)

 

Ryan Larrenaga

c/o Columbia Management Investment Advisers, LLC
225 Franklin Street
                           Boston, MA 02110                           
(Name and address of agent for service)

 

Registrant’s telephone number, including area code: (800) 345-6611

 

Date of fiscal year end: March 31

 

Date of reporting period: March 31, 2017

 

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 



 

Item 1. Reports to Stockholders.

 



ANNUAL REPORT

March 31, 2017

COLUMBIA ETF TRUST II

Columbia Beyond BRICs ETF

Columbia EM Core ex-China ETF

Columbia EM Quality Dividend ETF

Columbia EM Strategic Opportunities ETF

Columbia Emerging Markets Consumer ETF

Columbia Emerging Markets Core ETF

Columbia India Consumer ETF

Columbia India Infrastructure ETF

Columbia India Small Cap ETF




PRESIDENT'S MESSAGE

Dear Shareholders,

While emotions have run high following the outcome of the U.S. Presidential election, it remains unclear how the Trump presidency will unfold in terms of policy. We have a sense of the priorities espoused by the President over the past eighteen months, but campaign priorities are not always realized and are often never pursued. What seems certain is that, while some investors have already priced expectations into the market, others have retreated, preferring instead a wait and see approach. The outcome of such behaviors appears to have created conditions ripe for ongoing market volatility.

While volatility in the financial markets can be stressful, volatility itself is not a new phenomenon. Other factors that have been at the root cause of recent volatility include uncertainty following the United Kingdom's vote to exit the European Union (Brexit), speculation around the Federal Reserve's decision to increase interest rates, divergent central bank policy and geopolitical unrest. The point is, financial markets have fluctuated for years and may be expected to continue to fluctuate — sometimes wildly. If anything, such volatility seems to be the new normal, perhaps exacerbated by access to information and development of technological tools which have enabled investors to react rapidly to real and perceived change. So what can you do?

Position your portfolio for the reality of market volatility

That there is a historical precedent for market volatility, or even an acceptance that it may persist, offers little comfort. A measured and strategic approach remains the best strategy for investors to stay on track in achieving their investment goals.

Step 1: Review your investment goals

Take this opportunity to review your investment goals and the strategies you are pursuing to achieve those goals in order to remain focused on what's important to you. It is entirely possible that your goals have changed in response either to your life situation or to changes in the market. Accept what you can't control — volatility, and focus on what you can — your investment goals and strategies.

Step 2: Reassess your risk tolerance

Sit down with your financial advisor to discuss your investment goals and strategies, as well as any changes to your tolerance for risk. Consider your investment horizon. Increased market volatility and a new investment horizon may impact the strategies that can best help you achieve your investment goals. Remember, achieving your investment goals may require a certain amount of risk. Ultimately, you must maintain vigilance in reassessing your risk tolerance and the strategies you have selected in pursuit of your investment goals, and awareness of how those strategies may react to market volatility.

Step 3: Remain calm and focus on your long-term plan

Remember, investing is about the long game. Short term events are not necessarily evidence of a longer term reality. Investors who attempt to time the market too often end up reacting to a down turn by selling low and then compounding the problem by waiting on the sidelines, ultimately missing the right opportunity to reinvest.

As long as there is a market, there will be volatility. How you respond to that volatility can make a big difference in the measure of your success as an investor. Talk to your financial advisor about how working with Columbia Threadneedle Investments may help you position your portfolio for the reality of ongoing volatility and, perhaps, even turn such volatility into investment opportunity.

Sincerely,

Christopher O. Petersen
President, Columbia ETF Trust II

Investors should consider the investment objectives, risks, charges and expenses of an exchange-traded fund (ETF) carefully before investing. For a free prospectus and summary prospectus, which contains this and other important information about an ETF, visit columbiathreadneedleetf.com. The prospectus and summary prospectus should be read carefully before investing.

Columbia Threadneedle Investments (Columbia Threadneedle) is the global brand name of the Columbia and Threadneedle group of companies.

Columbia ETF Trust II is managed by Columbia Management Investment Advisers, LLC and is distributed by ALPS Distributors, Inc., which is not affiliated with Columbia Management Investment Advisers, LLC or its parent company, Ameriprise Financial, Inc.

© 2017 Columbia Management Investment Advisers, LLC. All rights reserved.

Annual Report 2017




COLUMBIA ETF TRUST II

TABLE OF CONTENTS

Columbia Beyond BRICs ETF

Performance Overview

  

2

  

Manager Discussion of Fund Performance

  

4

  

Columbia EM Core ex-China ETF

Performance Overview

  

7

  

Manager Discussion of Fund Performance

  

9

  

Columbia EM Quality Dividend ETF

Performance Overview

  

12

  

Manager Discussion of Fund Performance

  

14

  

Columbia EM Strategic Opportunities ETF

Performance Overview

  

17

  

Manager Discussion of Fund Performance

  

19

  

Columbia Emerging Markets Consumer ETF

Performance Overview

  

21

  

Manager Discussion of Fund Performance

  

23

  

Columbia Emerging Markets Core ETF

Performance Overview

  

25

  

Manager Discussion of Fund Performance

  

27

  

Columbia India Consumer ETF

Performance Overview

  

30

  

Manager Discussion of Fund Performance

  

32

  

Columbia India Infrastructure ETF

Performance Overview

  

34

  

Manager Discussion of Fund Performance

  

36

  

Columbia India Small Cap ETF

Performance Overview

  

38

  

Manager Discussion of Fund Performance

  

40

  

Understanding Your Fund's Expenses

  

42

  

Frequency Distribution of Premiums and Discounts

  

43

  

Portfolio of Investments

  

46

  

Statement of Assets and Liabilities

  

76

  

Statement of Operations

  

79

  

Statement of Changes in Net Assets

  

82

  

Financial Highlights

  

87

  

Notes to Financial Statements

  

96

  

Report of Independent Registered Public Accounting Firm

  

106

  

Federal Income Tax Information

  

107

  

Trustees and Officers

  

108

  

Important Information About This Report

  

114

  

Fund Investment Manager

Columbia Management Investment
Advisers, LLC
225 Franklin Street
Boston, MA 02110

Fund Distributor

ALPS Distributors, Inc.
1290 Broadway
Suite 1100
Denver, CO 80203

ALPS Distributors, Inc. is not affiliated with Columbia Management Investment Advisers, LLC.

Fund Custodian

The Bank of New York Mellon Corp.
101 Barclay Street
New York, NY 10286

Fund Transfer Agent

The Bank of New York Mellon Corp.
101 Barclay Street
New York, NY 10286

The Bank of New York Mellon Corp. is not affiliated with Columbia Management Investment Advisers, LLC.

For more information about any of the ETFs, please visit columbiathreadneedleetf.com or call 888.800.4347.

The views expressed in this report reflect the current views of the respective parties. These views are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict, so actual outcomes and results may differ significantly from the views expressed. These views are subject to change at any time based upon economic, market or other conditions and the respective parties disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Columbia ETF are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any particular Columbia ETF. References to specific securities should not be construed as a recommendation or investment advice.

Annual Report 2017



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW

Columbia Beyond BRICs ETF

Columbia Beyond BRICs ETF (the Fund) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the FTSE Beyond BRICs Net of Tax Index USD.

Average Annual Total Returns (%) (for period ended March 31, 2017)

  

Inception

 

1 Year

 

Life

 

Market Price

 

08/15/12

  

4.01

   

-2.66

  

Net Asset Value

 

08/15/12

  

5.12

   

-2.48

  

Tracked Index(1)

      

6.58

   

-0.66

  

(1) The Tracked Index reflects the Indxx Beyond BRICs Index through October 25, 2013 and the FTSE Beyond BRICs Net of Tax Index USD thereafter.

All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by the Fund's former investment manager or Columbia Management Investment Advisers, LLC (Columbia Management or the Investment Manager). Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting columbiathreadneedleetf.com.

Columbia Management took over portfolio management in September 2016 upon its acquisition of the Fund's previous investment manager.

The price used to calculate Market Price return is based on the midpoint of the 4:00 PM Eastern (U.S.) bid/ask spread on the NYSE and does not represent returns an investor would receive if shares were traded at other times.

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

The FTSE Beyond BRICs Net of Tax Index USD is a market capitalization-weighted index designed to represent the performance of a diversified basket of 90 liquid companies in emerging and frontier markets excluding Brazil, Russia, India, China (BRIC), Taiwan and Argentina as defined by FTSE's Country Classification System. The index has 75% exposure to emerging markets and 25% to frontier markets at rebalance.

Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.

Annual Report 2017
2



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW (continued)

Columbia Beyond BRICs ETF

Performance of a Hypothetical $10,000 Investment (August 15, 2012 – March 31, 2017)

The chart above shows the change in value of a hypothetical $10,000 investment made on the Fund's inception, and does not reflect the deduction of taxes or brokerage commissions that a shareholder may pay on Fund distributions or on the redemption of Fund shares.

Annual Report 2017
3



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia Beyond BRICs ETF

Portfolio Management

Christopher Lo, Ph.D., CFA

Frank Vallario

Top Ten Holdings (%)
(at March 31, 2017)
 
Naspers, Ltd. N Shares
(South Africa)
  

3.3

  
America Movil SAB de CV
Series L (Mexico)
  

2.7

  
Fomento Economico
Mexicano SAB de CV
Series UBD (Mexico)
  

2.5

  

PTT PCL NVDR (Thailand)

  

2.4

  
PT Telekomunikasi Indonesia
Persero Tbk (Indonesia)
  

2.3

  
PT Bank Central Asia Tbk
(Indonesia)
  

2.2

  

Safaricom, Ltd. (Kenya)

  

2.2

  
Vietnam Dairy Products JSC
(Vietnam)
  

2.2

  

Public Bank Bhd (Malaysia)

  

2.0

  
Square Pharmaceuticals, Ltd.
(Bangladesh)
  

2.0

  

Percentages indicated are based upon total investments.

For further detail about these holdings, please refer to the section entitled "Portfolio of Investments."

Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.

For the 12-month period that ended March 31, 2017, the Fund returned 5.12% based on net asset value (NAV) and 4.01% based on market price. The Fund's Tracked Index, the FTSE Beyond BRICs Index, returned 6.58% during the same time period.

The Fund's NAV on March 31, 2016 was $15.77 and it ended the annual period on March 31, 2017 with a NAV of $16.14. The Fund's market price on March 31, 2017 was $16.00 per share.

Emerging market equities posted gains despite geopolitical uncertainty

The annual period ended March 31, 2017 began on a positive note for emerging market equities. All eyes were on the weakness of the U.S. dollar and the rally in commodities prices. The subsequent surge in U.S. dollar strength coincided with the April 2016 Federal Reserve (Fed) press release that indicated a June 2016 interest rate hike in the U.S. was a distinct possibility, as expectations of Fed normalization of monetary policy persisted. Emerging market equities, however, then traded in a narrow band and were essentially flat for most of the early months of the annual period. Interestingly, despite the turn in the U.S. dollar, commodities prices continued to move upward, with part of such strength likely driven by better economic numbers out of China during the summer months. Several other notable macro events affecting the emerging markets during the summer of 2016 included the Philippines' election victory of populist outsider and former mayor of Davao, Rodrigo Duterte, as president on May 9th; the impeachment of Brazilian president Dilma Rousseff on May 12th; and the surprise U.K. vote result on the referendum to leave the European Union, popularly known as Brexit, announced on June 24th.

Emerging market equities experienced a stretch of robust performance heading into the fall months, outpacing developed market equities significantly during the third quarter of 2016. Much of this rally was fueled by improvements in China's economy. Brazil also gained momentum after putting an end to the President Rousseff era with her impeachment. Indonesia performed well, too, on lower interest rates, higher foreign exchange reserves and better capital flows on the back of a successful tax amnesty program.

In the fourth quarter of 2016, political uncertainty again came to the fore with the passing of King Bhumibol of Thailand, followed a month later with the surprise Trump election victory in the U.S. on November 8th. In the week following the U.S. election, the U.S. stock market traded up, while emerging market equities, as measured by the MSCI Emerging Markets Index, declined 4.16%. Also on November 8th, the Indian government announced it was withdrawing all 500 and 1000 rupee notes from circulation to counter "black money," that is, money earned illegally from black market activities. As a result, the Indian equity market sold off 8.5% in the week following the announcement.

After struggling in November and December 2016, emerging market equities staged a strong rally during the first quarter of 2017. Investors seemed more comfortable as U.S. interest rates eased a bit after the

Annual Report 2017
4



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia Beyond BRICs ETF

initial "Trump spike" late in 2016. Positive economic data out of China and Indian market strength further drove the rally. The South Korean equity market also posted healthy gains, and the South Korean won was one of the strong emerging market currencies, despite, or perhaps because of, the impeachment of President Park Geun-hye.

Contributors and detractors

Constituents in the financials, information technology and telecommunication services sectors detracted most from the Fund's results during the annual period. Partially offsetting these detractors were constituents in the materials, consumer discretionary and health care sectors, which contributed positively to results.

From a country perspective, constituents in Malaysia, Mexico and Brazil detracted the most from results during the annual period. Conversely, constituents in South Vietnam, Indonesia and Hong Kong contributed most positively to results.

Positions in integrated financial services group Standard Bank Group; diversified financial services firm FirstRand; and communication services provider MTN Group, each a South African company, detracted most. Each generated a negative absolute return during the annual period. Positions in Bank Muscat, an Oman-based financial services provider; Fomento Economico Mexicano (FEMSA), a Mexico-based non-alcoholic beverage producer; and Bank Central Asia, an Indonesian bank contributed most positively. Each posted a positive absolute return during the annual period.

Country Breakdown (%)
(at March 31, 2017)
 

Bangladesh

  

2.6

  

Chile

  

1.1

  

Colombia

  

0.3

  

Czech Republic

  

0.4

  

Indonesia

  

9.9

  

Kenya

  

3.4

  

Malaysia

  

10.9

  

Mexico

  

15.7

  

Morocco

  

3.7

  

Nigeria

  

5.4

  

Oman

  

1.7

  

Philippines

  

4.5

  

Poland

  

3.3

  

Qatar

  

1.3

  

Romania

  

1.9

  

South Africa

  

14.6

  

Thailand

  

8.3

  

Turkey

  

2.7

  

United Arab Emirates

  

2.3

  

Vietnam

  

6.0

  

Total

  

100.0

  

Country Breakdown is based primarily on issuer's place of risk. Percentages indicated are based upon total investments. The Fund's portfolio composition is subject to change.

Equity Sector Breakdown (%)
(at March 31, 2017)
 

Basic Materials

  

5.1

  

Consumer Goods

  

11.1

  

Consumer Services

  

10.8

  

Financials

  

38.3

  

Health Care

  

4.1

  

Industrials

  

7.1

  

Oil & Gas

  

5.2

  

Telecommunications

  

15.8

  

Utilities

  

2.5

  

Total

  

100.0

  

Percentages indicated are based upon total equity investments. The Fund's portfolio composition is subject to change.

Annual Report 2017
5



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia Beyond BRICs ETF

Investment Risks

Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This Fund is non-diversified and, as a result, may have greater volatility than diversified-funds. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its underlying index is so concentrated and to the extent permitted by applicable laws and regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an Index. See the Fund's prospectus for more information on these and other risks.

Trading Discount to NAV Risks

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

Annual Report 2017
6



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW

Columbia EM Core ex-China ETF

Columbia EM Core ex-China ETF (the Fund) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the Beta Thematic Emerging Markets ex-China Index.

Average Annual Total Returns (%) (for period ended March 31, 2017)

  

Inception

 

1 Year

 

Life

 

Market Price

 

09/02/15

  

23.20

   

20.15

  

Net Asset Value

 

09/02/15

  

18.83

   

17.76

  

MSCI Emerging Markets Index (Net)

      

17.22

   

14.36

  

Beta Thematic Emerging Markets ex-China Index

      

18.45

   

17.60

  

All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by the Fund's former investment manager or Columbia Management. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting columbiathreadneedleetf.com.

Columbia Management took over portfolio management in September 2016 upon its acquisition of the Fund's previous investment manager.

The price used to calculate Market Price return is based on the midpoint of the 4:00 PM Eastern (U.S.) bid/ask spread on the NYSE and does not represent returns an investor would receive if shares were traded at other times.

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

The MSCI Emerging Markets Index (Net) is a free float-adjusted market capitalization index that is designed to measure market performance of emerging markets.

The Beta Thematic Emerging Markets ex-China Index is a market capitalization-weighted index designed to provide broad, core emerging markets equity exposure by measuring the stock performance of up to 700 companies, excluding those listed or domiciled in China or Hong Kong.

Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes (except the MSCI Emerging Markets Index (Net), which reflects reinvested dividends net of withholding taxes) or other expenses of investing. Securities in the Fund may not match those in an index.

Annual Report 2017
7



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW (continued)

Columbia EM Core ex-China ETF

Performance of a Hypothetical $10,000 Investment (September 2, 2015 – March 31, 2017)

The chart above shows the change in value of a hypothetical $10,000 investment made on the Fund's inception, and does not reflect the deduction of taxes or brokerage commissions that a shareholder may pay on Fund distributions or on the redemption of Fund shares.

Annual Report 2017
8



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia EM Core ex-China ETF

For the 12-month period that ended March 31, 2017, the Fund returned 18.83% based on net asset value (NAV) and 23.20% based on market price. The MSCI Emerging Markets Index (Net) returned 17.22% and the Beta Thematic Emerging Markets ex-China Index, returned 18.45% during the same time period.

The Fund's NAV on March 31, 2016 was $21.23 and it ended the annual period on March 31, 2017 with a NAV of $24.91. The Fund's market price on March 31, 2017 was $25.72 per share.

Emerging market equities posted gains despite geopolitical uncertainty

The annual period ended March 31, 2017 began on a positive note for emerging market equities. All eyes were on the weakness of the U.S. dollar and the rally in commodities prices. The subsequent surge in U.S. dollar strength coincided with the April 2016 Federal Reserve (Fed) press release that indicated a June 2016 interest rate hike in the U.S. was a distinct possibility, as expectations of Fed normalization of monetary policy persisted. Emerging market equities, however, then traded in a narrow band and were essentially flat for most of the early months of the annual period. Interestingly, despite the turn in the U.S. dollar, commodities prices continued to move upward, with part of such strength likely driven by better economic numbers out of China during the summer months. Several other notable macro events affecting the emerging markets during the summer of 2016 included the Philippines' election victory of populist outsider and former mayor of Davao, Rodrigo Duterte, as president on May 9th; the impeachment of Brazilian president Dilma Rousseff on May 12th; and the surprise U.K. vote result on the referendum to leave the European Union, popularly known as Brexit, announced on June 24th.

Emerging market equities experienced a stretch of robust performance heading into the fall months, outpacing developed market equities significantly during the third quarter of 2016. Much of this rally was fueled by improvements in China's economy. Brazil also gained momentum after putting an end to the President Rousseff era with her impeachment. Indonesia performed well, too, on lower interest rates, higher foreign exchange reserves and better capital flows on the back of a successful tax amnesty program.

In the fourth quarter of 2016, political uncertainty again came to the fore with the passing of King Bhumibol of Thailand, followed a month later with the surprise Trump election victory in the U.S. on November 8th. In the week following the U.S. election, the U.S. stock market traded up, while emerging market equities, as measured by the MSCI Emerging Markets Index, declined 4.16%. Also on November 8th, the Indian government announced it was withdrawing all 500 and 1000 rupee notes from circulation to counter "black money," that is, money earned illegally from black market activities. As a result, the Indian equity market sold off 8.5% in the week following the announcement.

After struggling in November and December 2016, emerging market equities staged a strong rally during the first quarter of 2017. Investors

Portfolio Management

Christopher Lo, Ph.D., CFA

Frank Vallario

Top Ten Holdings (%)
(at March 31, 2017)
 
Samsung Electronics Co., Ltd.
(South Korea)
  

5.9

  
Taiwan Semiconductor
Manufacturing Co., Ltd.
(Taiwan)
  

4.4

  

HDFC Bank, Ltd. ADR (India)

  

3.8

  

ICICI Bank, Ltd. ADR (India)

  

3.0

  

Tata Motors, Ltd. ADR (India)

  

2.6

  

Infosys, Ltd. ADR (India)

  

2.6

  
Itau Unibanco Holding SA
Preference Shares (Brazil)
  

2.5

  
Petroleo Brasileiro SA
Preference Shares (Brazil)
  

2.3

  
Vale SA Preference Shares
(Brazil)
  

2.2

  
Naspers, Ltd. N Shares
(South Africa)
  

1.9

  

Percentages indicated are based upon total investments.

For further detail about these holdings, please refer to the section entitled "Portfolio of Investments."

Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.

Annual Report 2017
9



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia EM Core ex-China ETF

Country Breakdown (%)
(at March 31, 2017)
 

Brazil

  

14.2

  

Chile

  

1.2

  

India

  

12.0

  

Indonesia

  

3.6

  

Malaysia

  

2.5

  

Mexico

  

7.0

  

Peru

  

0.7

  

Philippines

  

1.5

  

Poland

  

2.1

  

Russia

  

4.1

  

South Africa

  

9.6

  

South Korea

  

20.5

  

Taiwan

  

14.8

  

Thailand

  

4.1

  

Turkey

  

2.1

  

Total

  

100.0

  

Country Breakdown is based primarily on issuer's place of risk. Percentages indicated are based upon total investments. The Fund's portfolio composition is subject to change.

Equity Sector Breakdown (%)
(at March 31, 2017)
 

Consumer Discretionary

  

10.2

  

Consumer Staples

  

10.0

  

Energy

  

6.7

  

Financials

  

28.7

  

Health Care

  

2.3

  

Industrials

  

5.4

  

Information Technology

  

18.3

  

Materials

  

11.3

  

Real Estate

  

0.7

  

Telecommunication Services

  

4.6

  

Utilities

  

1.8

  

Total

  

100.0

  

Percentages indicated are based upon total equity investments. The Fund's portfolio composition is subject to change.

seemed more comfortable as U.S. interest rates eased a bit after the initial "Trump spike" late in 2016. Positive economic data out of China and Indian market strength further drove the rally. The South Korean equity market also posted healthy gains, and the South Korean won was one of the strong emerging market currencies, despite, or perhaps because of, the impeachment of President Park Geun-hye.

Contributors and detractors

Constituents in the energy, materials and financials sectors contributed most positively to the Fund's results during the annual period. Partially offsetting these positive contributors were constituents in the information technology, consumer staples and industrials sectors, which detracted from results.

From a country perspective, constituents in Brazil, South Korea and Hong Kong contributed most positively to the Fund's results. Conversely, constituents in China, Mexico and India detracted the most from results during the annual period.

Positions in Samsung Electronics, a South Korea-based consumer and industrial electronic equipment and products manufacturer; Vale, a Brazilian metals producer; and Petroleo Brasileiro (Petrobras), a Brazilian oil and gas exploration and production company contributed most positively. Samsung Electronics and Petrobras each posted a robust double-digit absolute gain, and Vale generated a triple-digit absolute gain during the annual period. Positions in Infosys, an India-based consulting and software services firm; Steinhoff International Holdings, a South African integrated discount retailer; and IHH Healthcare, a Malaysian-based healthcare services provider detracted most. Each produced a double-digit negative absolute return during the annual period.

Annual Report 2017
10



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia EM Core ex-China ETF

Investment Risks

Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This Fund is non-diversified and, as a result, may have greater volatility than diversified-funds. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its underlying index is so concentrated and to the extent permitted by applicable laws and regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an Index. See the Fund's prospectus for more information on these and other risks.

Trading Discount to NAV Risks

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

Annual Report 2017
11



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW

Columbia EM Quality Dividend ETF

Columbia EM Quality Dividend ETF (the Fund) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the Beta AdvantageSM Emerging Markets Quality Dividend Index.

Average Annual Total Returns (%) (for period ended March 31, 2017)

  

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

08/04/11

  

11.09

   

-3.82

   

-2.91

  

Net Asset Value

 

08/04/11

  

10.05

   

-3.77

   

-2.92

  

MSCI Emerging Markets Index (Net)

      

17.22

   

0.81

   

-0.09

  

Tracked Index(1)

      

12.59

   

-2.44

   

-1.51

  

(1) The Tracked Index reflects the Indxx Emerging Market High Income Low Beta Index through January 31, 2014, the FTSE Emerging All Cap ex-Taiwan Low Volatility Dividend Net Tax Index from February 3, 2014 through January 23, 2015, and the Beta AdvantageSM Emerging Markets Quality Dividend Index thereafter.

All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by the Fund's former investment manager or Columbia Management. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting columbiathreadneedleetf.com.

Columbia Management took over portfolio management in September 2016 upon its acquisition of the Fund's previous investment manager.

The price used to calculate Market Price return is based on the midpoint of the 4:00 PM Eastern (U.S.) bid/ask spread on the NYSE and does not represent returns an investor would receive if shares were traded at other times.

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

The MSCI Emerging Markets Index (Net) is a free float-adjusted market capitalization index that is designed to measure market performance of emerging markets.

The Beta AdvantageSM Emerging Markets Quality Dividend Index is an equal-weighted index designed to represent a portfolio of approximately 50 companies in developing markets, which is expected to have a higher dividend yield than the average dividend yield of companies included in the developing markets universe as defined by Columbia Management.

Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes (except the MSCI Emerging Markets Index (Net), which reflects reinvested dividends net of withholding taxes) or other expenses of investing. Securities in the Fund may not match those in an index.

Annual Report 2017
12



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW (continued)

Columbia EM Quality Dividend ETF

Performance of a Hypothetical $10,000 Investment (August 4, 2011 – March 31, 2017)

The chart above shows the change in value of a hypothetical $10,000 investment made on the Fund's inception, and does not reflect the deduction of taxes or brokerage commissions that a shareholder may pay on Fund distributions or on the redemption of Fund shares.

Annual Report 2017
13



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia EM Quality Dividend ETF

Portfolio Management

Christopher Lo, Ph.D., CFA

Frank Vallario

Top Ten Holdings (%)
(at March 31, 2017)
 

AirAsia Bhd (Malaysia)

  

2.2

  
BRF SA (Brazil)  

2.2

  

Lojas Renner SA (Brazil)

  

2.1

  

WEG SA (Brazil)

  

2.1

  

Ambev SA (Brazil)

  

2.1

  

Pegatron Corp. (Taiwan)

  

2.1

  
Petronas Chemicals
Group Bhd (Malaysia)
  

2.1

  
Intouch Holdings PCL NVDR
(Thailand)
  

2.1

  

Axiata Group Bhd (Malaysia)

  

2.1

  
Banco Bradesco SA
Preference Shares (Brazil)
  

2.1

  

Percentages indicated are based upon total investments.

For further detail about these holdings, please refer to the section entitled "Portfolio of Investments."

Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.

For the 12-month period that ended March 31, 2017, the Fund returned 10.05% based on net asset value (NAV) and 11.09% based on market price. The MSCI Emerging Markets Index (Net) returned 17.22% and the Fund's Tracked Index, the Beta AdvantageSM Emerging Markets Quality Dividend Index returned 12.59% during the same time period.

The Fund's NAV on March 31, 2016 was $12.81 and it ended the annual period on March 31, 2017 with a NAV of $13.77. The Fund's market price on March 31, 2017 was $13.78 per share.

Emerging market equities posted gains despite geopolitical uncertainty

The annual period ended March 31, 2017 began on a positive note for emerging market equities. All eyes were on the weakness of the U.S. dollar and the rally in commodities prices. The subsequent surge in U.S. dollar strength coincided with the April 2016 Federal Reserve (Fed) press release that indicated a June 2016 interest rate hike in the U.S. was a distinct possibility, as expectations of Fed normalization of monetary policy persisted. Emerging market equities, however, then traded in a narrow band and were essentially flat for most of the early months of the annual period. Interestingly, despite the turn in the U.S. dollar, commodities prices continued to move upward, with part of such strength likely driven by better economic numbers out of China during the summer months. Several other notable macro events affecting the emerging markets during the summer of 2016 included the Philippines' election victory of populist outsider and former mayor of Davao, Rodrigo Duterte, as president on May 9th; the impeachment of Brazilian president Dilma Rousseff on May 12th; and the surprise U.K. vote result on the referendum to leave the European Union, popularly known as Brexit, announced on June 24th.

Emerging market equities experienced a stretch of robust performance heading into the fall months, outpacing developed market equities significantly during the third quarter of 2016. Much of this rally was fueled by improvements in China's economy. Brazil also gained momentum after putting an end to the President Rousseff era with her impeachment. Indonesia performed well, too, on lower interest rates, higher foreign exchange reserves and better capital flows on the back of a successful tax amnesty program.

In the fourth quarter of 2016, political uncertainty again came to the fore with the passing of King Bhumibol of Thailand, followed a month later with the surprise Trump election victory in the U.S. on November 8th. In the week following the U.S. election, the U.S. stock market traded up, while emerging market equities, as measured by the MSCI Emerging Markets Index, declined 4.16%. Also on November 8th, the Indian government announced it was withdrawing all 500 and 1000 rupee notes from circulation to counter "black money," that is, money earned illegally from black market activities. As a result, the Indian equity market sold off 8.5% in the week following the announcement.

After struggling in November and December 2016, emerging market equities staged a strong rally during the first quarter of 2017. Investors

Annual Report 2017
14



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia EM Quality Dividend ETF

seemed more comfortable as U.S. interest rates eased a bit after the initial "Trump spike" late in 2016. Positive economic data out of China and Indian market strength further drove the rally. The South Korean equity market also posted healthy gains, and the South Korean won was one of the strong emerging market currencies, despite, or perhaps because of, the impeachment of President Park Geun-hye.

Contributors and detractors

Constituents in the information technology, consumer staples and energy sectors detracted most from the Fund's results during the annual period. Partially offsetting these detractors were constituents in the financials, real estate and consumer discretionary sectors, which contributed most positively to results.

From a country perspective, constituents in Thailand, Malaysia and Turkey detracted most from results. Conversely, constituents in Mexico, Taiwan and Hong Kong contributed most positively to results during the annual period.

Positions in Airports of Thailand, a Thai airport operator; BRF, a Brazilian food processor; and Turkiye Petrol Rafinerileri (Tupras), a Turkish petroleum refiner detracted most. Airports of Thailand posted a modestly positive absolute return, while BRF and Tupras each posted a double-digit negative absolute return during the annual period. Positions in Itausa-Investimentos Itau, a Brazilian diversified holding company; Banco Bradesco, a Brazilian commercial bank; and Pegatron, a Taiwan-based technology hardware and equipment company contributed most positively. Each produced a robust double-digit absolute gain during the annual period.

Country Breakdown (%)
(at March 31, 2017)
 

Brazil

  

18.4

  

Chile

  

2.0

  

Hong Kong

  

6.1

  

Indonesia

  

8.0

  

Kenya

  

1.9

  

Malaysia

  

10.4

  

Philippines

  

2.0

  

South Africa

  

8.9

  

Taiwan

  

18.1

  

Thailand

  

18.2

  

Turkey

  

4.0

  

United Arab Emirates

  

2.0

  

Total

  

100.0

  

Country Breakdown is based primarily on issuer's place of risk. Percentages indicated are based upon total investments. The Fund's portfolio composition is subject to change.

Equity Sector Breakdown (%)
(at March 31, 2017)
 

Consumer Discretionary

  

13.7

  

Consumer Staples

  

16.1

  

Financials

  

15.7

  

Health Care

  

1.6

  

Industrials

  

12.3

  

Information Technology

  

6.1

  

Materials

  

8.1

  

Real Estate

  

2.0

  

Telecommunication Services

  

16.3

  

Utilities

  

8.1

  

Total

  

100.0

  

Percentages indicated are based upon total equity investments. The Fund's portfolio composition is subject to change.

Annual Report 2017
15



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia EM Quality Dividend ETF

Investment Risks

Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This Fund is non-diversified and, as a result, may have greater volatility than diversified-funds. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its underlying index is so concentrated and to the extent permitted by applicable laws and regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an Index. See the Fund's prospectus for more information on these and other risks.

Trading Discount to NAV Risks

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

Annual Report 2017
16




COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW

Columbia EM Strategic Opportunities ETF

Columbia EM Strategic Opportunities ETF (the Fund) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the S&P Emerging Markets Strategic Opportunities Index.

Average Annual Total Returns (%) (for period ended March 31, 2017)

  

Inception

 

1 Year

 

Life

 

Market Price

 

08/15/12

  

3.42

   

0.47

  

Net Asset Value

 

08/15/12

  

3.08

   

0.54

  

Tracked Index(1)

      

3.72

   

1.80

  

(1) The Tracked Index reflects the Indxx Emerging Markets Domestic Demand Index through January 31, 2014 and the S&P Emerging Markets Strategic Opportunities Index thereafter.

All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by the Fund's former investment manager or Columbia Management. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting columbiathreadneedleetf.com.

Columbia Management took over portfolio management in September 2016 upon its acquisition of the Fund's previous investment manager.

The price used to calculate Market Price return is based on the midpoint of the 4:00 PM Eastern (U.S.) bid/ask spread on the NYSE and does not represent returns an investor would receive if shares were traded at other times.

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

The S&P Emerging Markets Strategic Opportunities Index is a 50-stock free-float market capitalization-weighted index designed to measure the performance of companies in emerging markets that are tied to domestic demand, specifically those in consumer staples, consumer discretionary, telecommunications services, health care and the utilities sectors.

Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.

Annual Report 2017
17



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW (continued)

Columbia EM Strategic Opportunities ETF

Performance of a Hypothetical $10,000 Investment (August 15, 2012 – March 31, 2017)

The chart above shows the change in value of a hypothetical $10,000 investment made on the Fund's inception, and does not reflect the deduction of taxes or brokerage commissions that a shareholder may pay on Fund distributions or on the redemption of Fund shares.

Annual Report 2017
18



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia EM Strategic Opportunities ETF

For the 12-month period that ended March 31, 2017, the Fund returned 3.08% based on net asset value (NAV) and 3.42% based on market price. The Fund's Tracked Index, the S&P Emerging Markets Strategic Opportunities Index, returned 3.72% during the same time period.

The Fund's NAV on March 31, 2016 was $18.79 and it ended the annual period on March 31, 2017 with a NAV of $18.91. The Fund's market price on March 31, 2017 was $18.85 per share.

Emerging market equities posted gains despite geopolitical uncertainty

The annual period ended March 31, 2017 began on a positive note for emerging market equities. All eyes were on the weakness of the U.S. dollar and the rally in commodities prices. The subsequent surge in U.S. dollar strength coincided with the April 2016 Federal Reserve (Fed) press release that indicated a June 2016 interest rate hike in the U.S. was a distinct possibility, as expectations of Fed normalization of monetary policy persisted. Emerging market equities, however, then traded in a narrow band and were essentially flat for most of the early months of the annual period. Interestingly, despite the turn in the U.S. dollar, commodities prices continued to move upward, with part of such strength likely driven by better economic numbers out of China during the summer months. Several other notable macro events affecting the emerging markets during the summer of 2016 included the Philippines' election victory of populist outsider and former mayor of Davao, Rodrigo Duterte, as president on May 9th; the impeachment of Brazilian president Dilma Rousseff on May 12th; and the surprise U.K. vote result on the referendum to leave the European Union, popularly known as Brexit, announced on June 24th.

Emerging market equities experienced a stretch of robust performance heading into the fall months, outpacing developed market equities significantly during the third quarter of 2016. Much of this rally was fueled by improvements in China's economy. Brazil also gained momentum after putting an end to the President Rousseff era with her impeachment. Indonesia performed well, too, on lower interest rates, higher foreign exchange reserves and better capital flows on the back of a successful tax amnesty program.

In the fourth quarter of 2016, political uncertainty again came to the fore with the passing of King Bhumibol of Thailand, followed a month later with the surprise Trump election victory in the U.S. on November 8th. In the week following the U.S. election, the U.S. stock market traded up, while emerging market equities, as measured by the MSCI Emerging Markets Index, declined 4.16%. Also on November 8th, the Indian government announced it was withdrawing all 500 and 1000 rupee notes from circulation to counter "black money," that is, money earned illegally from black market activities. As a result, the Indian equity market sold off 8.5% in the week following the announcement.

After struggling in November and December 2016, emerging market equities staged a strong rally during the first quarter of 2017. Investors seemed more comfortable as U.S. interest rates eased a bit after the

Portfolio Management

Christopher Lo, Ph.D., CFA

Frank Vallario

Top Ten Holdings (%)
(at March 31, 2017)
 

Ambev SA ADR (Brazil)

  

5.1

  
Naspers, Ltd. N Shares
(South Africa)
  

5.0

  

China Mobile, Ltd. (China)

  

4.7

  

JD.com, Inc. ADR (China)

  

4.7

  
Fomento Economico
Mexicano SAB de CV ADR
(Mexico)
  

4.2

  
America Movil SAB de CV
Class L ADR (Mexico)
  

4.0

  
PT Telekomunikasi Indonesia
Persero Tbk ADR (Indonesia)
  

3.6

  
Ctrip.com International, Ltd.
ADR (China)
  

3.6

  

MTN Group, Ltd. (South Africa)

  

3.4

  
Steinhoff International
Holdings NV (South Africa)
  

3.0

  

Percentages indicated are based upon total investments.

For further detail about these holdings, please refer to the section entitled "Portfolio of Investments."

Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.

Country Breakdown (%)
(at March 31, 2017)
 

Brazil

  

8.2

  

China

  

25.3

  

Hong Kong

  

1.3

  

India

  

15.2

  

Indonesia

  

6.1

  

Malaysia

  

3.7

  

Mexico

  

13.1

  

Russia

  

3.8

  

South Africa

  

18.9

  

Thailand

  

4.4

  

Total

  

100.0

  

Country Breakdown is based primarily on issuer's place of risk. Percentages indicated are based upon total investments. The Fund's portfolio composition is subject to change.

Annual Report 2017
19



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia EM Strategic Opportunities ETF

Equity Sector Breakdown (%)
(at March 31, 2017)
 

Consumer Discretionary

  

29.8

  

Consumer Staples

  

30.3

  

Health Care

  

8.4

  

Telecommunication Services

  

27.4

  

Utilities

  

4.1

  

Total

  

100.0

  

Percentages indicated are based upon total equity investments. The Fund's portfolio composition is subject to change.

Investment Risks

Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This Fund is non-diversified and, as a result, may have greater volatility than diversified-funds. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its underlying index is so concentrated and to the extent permitted by applicable laws and regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an Index. See the Fund's prospectus for more information on these and other risks.

Trading Discount to NAV Risks

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

initial "Trump spike" late in 2016. Positive economic data out of China and Indian market strength further drove the rally. The South Korean equity market also posted healthy gains, and the South Korean won was one of the strong emerging market currencies, despite, or perhaps because of, the impeachment of President Park Geun-hye.

Contributors and detractors

Constituents in the information technology, telecommunication services and health care sectors detracted most from the Fund's results during the annual period. Partially offsetting these detractors were constituents in industrials and real estate, the only two sectors to contribute positively to the Fund's results.

From a country perspective, constituents in China, Mexico and South Africa detracted most from results. Conversely, constituents in Indonesia, Poland and Turkey contributed most positively to results during the annual period.

Positions in Steinhoff International Holdings, a South African integrated discount retailer; America Movil, a Mexican wireless communications provider; and Sun Pharmaceutical Industries, an Indian pharmaceuticals manufacturer detracted most. Each posted a negative return during the annual period. Positions in Naspers, a South African media company; JD.com, a Chinese online direct sales company; and Telekomunikasi Indonesia Persero, an Indonesia telecommunications company contributed most positively. Each produced a solid double-digit gain during the annual period.

Annual Report 2017
20



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW

Columbia Emerging Markets Consumer ETF

Columbia Emerging Markets Consumer ETF (the Fund) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the Dow Jones Emerging Markets Consumer Titans 30TM Index.

Average Annual Total Returns (%) (for period ended March 31, 2017)

  

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

09/14/10

  

10.75

   

0.83

   

4.12

  

Net Asset Value

 

09/14/10

  

10.35

   

0.82

   

4.07

  

Dow Jones Emerging Markets Consumer Titans 30TM Index

      

11.02

   

1.96

   

5.35

  

All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by the Fund's former investment manager or Columbia Management. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting columbiathreadneedleetf.com.

Columbia Management took over portfolio management in September 2016 upon its acquisition of the Fund's previous investment manager.

The price used to calculate Market Price return is based on the midpoint of the 4:00 PM Eastern (U.S.) bid/ask spread on the NYSE and does not represent returns an investor would receive if shares were traded at other times.

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

The Dow Jones Emerging Markets Consumer Titans 30TM Index is a free-float market capitalization-weighted index that measures the performance of 30 leading emerging market companies in the Consumer Goods and Consumer Services Industries as defined by S&P Dow Jones Indexes.

Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.

Annual Report 2017
21



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW (continued)

Columbia Emerging Markets Consumer ETF

Performance of a Hypothetical $10,000 Investment (September 14, 2010 – March 31, 2017)

The chart above shows the change in value of a hypothetical $10,000 investment made on the Fund's inception, and does not reflect the deduction of taxes or brokerage commissions that a shareholder may pay on Fund distributions or on the redemption of Fund shares.

Annual Report 2017
22



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia Emerging Markets Consumer ETF

For the 12-month period that ended March 31, 2017, the Fund returned 10.35% based on net asset value and 10.75% based on market price. The Dow Jones Emerging Markets Consumer Titans 30TM Index, returned 11.02% during the same period.

The Fund's NAV on March 31, 2016 was $22.60 and it ended the annual period on March 31, 2017 with a NAV of $24.75. The Fund's market price on March 31, 2017 was $24.83 per share.

Emerging market equities posted gains despite geopolitical uncertainty

The annual period ended March 31, 2017 began on a positive note for emerging market equities. All eyes were on the weakness of the U.S. dollar and the rally in commodities prices. The subsequent surge in U.S. dollar strength coincided with the April 2016 Federal Reserve (Fed) press release that indicated a June 2016 interest rate hike in the U.S. was a distinct possibility, as expectations of Fed normalization of monetary policy persisted. Emerging market equities, however, then traded in a narrow band and were essentially flat for most of the early months of the annual period. Interestingly, despite the turn in the U.S. dollar, commodities prices continued to move upward, with part of such strength likely driven by better economic numbers out of China during the summer months. Several other notable macro events affecting the emerging markets during the summer of 2016 included the Philippines' election victory of populist outsider and former mayor of Davao, Rodrigo Duterte, as president on May 9th; the impeachment of Brazilian president Dilma Rousseff on May 12th; and the surprise U.K. vote result on the referendum to leave the European Union, popularly known as Brexit, announced on June 24th.

Emerging market equities experienced a stretch of robust performance heading into the fall months, outpacing developed market equities significantly during the third quarter of 2016. Much of this rally was fueled by improvements in China's economy. Brazil also gained momentum after putting an end to the President Rousseff era with her impeachment. Indonesia performed well, too, on lower interest rates, higher foreign exchange reserves and better capital flows on the back of a successful tax amnesty program.

In the fourth quarter of 2016, political uncertainty again came to the fore with the passing of King Bhumibol of Thailand, followed a month later with the surprise Trump election victory in the U.S. on November 8th. In the week following the U.S. election, the U.S. stock market traded up, while emerging market equities, as measured by the MSCI Emerging Markets Index, declined 4.16%. Also on November 8th, the Indian government announced it was withdrawing all 500 and 1000 rupee notes from circulation to counter "black money," that is, money earned illegally from black market activities. As a result, the Indian equity market sold off 8.5% in the week following the announcement.

After struggling in November and December 2016, emerging market equities staged a strong rally during the first quarter of 2017. Investors seemed more comfortable as U.S. interest rates eased a bit after the

Portfolio Management

Christopher Lo, Ph.D., CFA

Frank Vallario

Top Ten Holdings (%)
(at March 31, 2017)
 
Naspers, Ltd. N Shares
(South Africa)
  

10.2

  

JD.com, Inc. ADR (China)

  

5.9

  

Ambev SA ADR (Brazil)

  

5.5

  
Ctrip.com International, Ltd.
ADR (China)
  

4.6

  
Fomento Economico
Mexicano SAB de CV Series
UBD (Mexico)
  

4.6

  
Steinhoff International
Holdings NV (South Africa)
  

4.1

  

Tata Motors, Ltd. ADR (India)

  

3.8

  

ITC, Ltd. (India)

  

3.8

  
PT Astra International Tbk
(Indonesia)
  

3.7

  
Grupo Televisa SAB Series
CPO (Mexico)
  

3.6

  

Percentages indicated are based upon total investments.

For further detail about these holdings, please refer to the section entitled "Portfolio of Investments."

Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.

Country Breakdown (%)
(at March 31, 2017)
 

Brazil

  

10.5

  

Chile

  

3.0

  

China

  

21.1

  

India

  

14.3

  

Indonesia

  

3.8

  

Malaysia

  

2.0

  

Mexico

  

11.8

  

Philippines

  

2.6

  

Russia

  

3.4

  

South Africa

  

22.3

  

Thailand

  

5.2

  

Total

  

100.0

  

Country Breakdown is based primarily on issuer's place of risk. Percentages indicated are based upon total investments. The Fund's portfolio composition is subject to change.

Annual Report 2017
23



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia Emerging Markets Consumer ETF

Equity Sector Breakdown (%)
(at March 31, 2017)
 

Consumer Goods

  

44.2

  

Consumer Services

  

52.0

  

Industrials

  

3.8

  

Total

  

100.0

  

Percentages indicated are based upon total equity investments. The Fund's portfolio composition is subject to change.

Investment Risks

Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This Fund is non-diversified and, as a result, may have greater volatility than diversified-funds. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its underlying index is so concentrated and to the extent permitted by applicable laws and regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an Index. See the Fund's prospectus for more information on these and other risks.

Trading Discount to NAV Risks

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

initial "Trump spike" late in 2016. Positive economic data out of China and Indian market strength further drove the rally. The South Korean equity market also posted healthy gains, and the South Korean won was one of the strong emerging market currencies, despite, or perhaps because of, the impeachment of President Park Geun-hye.

Contributors and detractors

Constituents in the information technology, consumer staples and financials sectors detracted most from the Fund's results during the annual period. Partially offsetting these detractors were constituents in the telecommunication services, health care and utilities sectors, which contributed most positively to results.

From a country perspective, constituents in Mexico, China and Brazil detracted most from results. Conversely, constituents in India, Thailand and Turkey contributed most positively to results during the annual period.

Positions in Steinhoff International Holdings, a South African integrated discount retailer; Fomento Economico Mexicano (FEMSA), a Mexico-based non-alcoholic beverage producer; and Genting, a Malaysian diversified investment holding detracted most. Each posted a negative return during the annual period. Positions in Naspers, a South African media company; Maruti Suzuki India, an Indian auto manufacturer and exporter; and JD.com, a Chinese online direct sales company contributed most positively. Each produced a solid double-digit gain during the annual period.

Annual Report 2017
24



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW

Columbia Emerging Markets Core ETF

Columbia Emerging Markets Core ETF (the Fund) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the S&P Emerging Markets Core IndexSM.

Average Annual Total Returns (%) (for period ended March 31, 2017)

  

Inception

 

1 Year

 

Life

 

Market Price

 

10/16/12

  

11.81

   

0.58

  

Net Asset Value

 

10/16/12

  

10.08

   

0.50

  

S&P Emerging Markets Core IndexSM

      

11.01

   

1.37

  

All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by the Fund's former investment manager or Columbia Management. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting columbiathreadneedleetf.com.

Columbia Management took over portfolio management in September 2016 upon its acquisition of the Fund's previous investment manager.

The price used to calculate Market Price return is based on the midpoint of the 4:00 PM Eastern (U.S.) bid/ask spread on the NYSE and does not represent returns an investor would receive if shares were traded at other times.

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

The S&P Emerging Markets Core IndexSM is a modified equal-weighted index designed to measure the market performance of up to 116 companies that S&P determines to be representative of all industries domiciled in emerging market countries, subject to a 15% country cap.

Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.

Annual Report 2017
25



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW (continued)

Columbia Emerging Markets Core ETF

Performance of a Hypothetical $10,000 Investment (October 16, 2012 – March 31, 2017)

The chart above shows the change in value of a hypothetical $10,000 investment made on the Fund's inception, and does not reflect the deduction of taxes or brokerage commissions that a shareholder may pay on Fund distributions or on the redemption of Fund shares.

Annual Report 2017
26



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia Emerging Markets Core ETF

For the 12-month period that ended March 31, 2017, the Fund returned 10.08% based on net asset value (NAV) and 11.81% based on market price. The S&P Emerging Markets Core IndexTM (the Index) returned 11.01% during the same period.

The Fund's NAV on March 31, 2016 was $17.58 and it ended the annual period on March 31, 2017 with a NAV of $19.09. The Fund's market price on March 31, 2017 was $19.16 per share.

Emerging market equities posted gains despite geopolitical uncertainty

The annual period ended March 31, 2017 began on a positive note for emerging market equities. All eyes were on the weakness of the U.S. dollar and the rally in commodities prices. The subsequent surge in U.S. dollar strength coincided with the April 2016 Federal Reserve (Fed) press release that indicated a June 2016 interest rate hike in the U.S. was a distinct possibility, as expectations of Fed normalization of monetary policy persisted. Emerging market equities, however, then traded in a narrow band and were essentially flat for most of the early months of the annual period. Interestingly, despite the turn in the U.S. dollar, commodities prices continued to move upward, with part of such strength likely driven by better economic numbers out of China during the summer months. Several other notable macro events affecting the emerging markets during the summer of 2016 included the Philippines' election victory of populist outsider and former mayor of Davao, Rodrigo Duterte, as president on May 9th; the impeachment of Brazilian president Dilma Rousseff on May 12th; and the surprise U.K. vote result on the referendum to leave the European Union, popularly known as Brexit, announced on June 24th.

Emerging market equities experienced a stretch of robust performance heading into the fall months, outpacing developed market equities significantly during the third quarter of 2016. Much of this rally was fueled by improvements in China's economy. Brazil also gained momentum after putting an end to the President Rousseff era with her impeachment. Indonesia performed well, too, on lower interest rates, higher foreign exchange reserves and better capital flows on the back of a successful tax amnesty program.

In the fourth quarter of 2016, political uncertainty again came to the fore with the passing of King Bhumibol of Thailand, followed a month later with the surprise Trump election victory in the U.S. on November 8th. In the week following the U.S. election, the U.S. stock market traded up, while emerging market equities, as measured by the MSCI Emerging Markets Index, declined 4.16%. Also on November 8th, the Indian government announced it was withdrawing all 500 and 1000 rupee notes from circulation to counter "black money," that is, money earned illegally from black market activities. As a result, the Indian equity market sold off 8.5% in the week following the announcement.

After struggling in November and December 2016, emerging market equities staged a strong rally during the first quarter of 2017. Investors seemed more comfortable as U.S. interest rates eased a bit after the

Portfolio Management

Christopher Lo, Ph.D., CFA

Frank Vallario

Top Ten Holdings (%)
(at March 31, 2017)
 
Wal-Mart de Mexico SAB
de CV (Mexico)
  

1.4

  
Fibra Uno Administracion
SA de CV (Mexico)
  

1.4

  
Kimberly-Clark de Mexico
SAB de CV Class A (Mexico)
  

1.3

  
Grupo Aeroportuario del
Pacifico SAB de CV Class B
(Mexico)
  

1.3

  
Alfa SAB de CV Class A
(Mexico)
  

1.3

  
SM Investments Corp.
(Philippines)
  

1.3

  

Ambev SA ADR (Brazil)

  

1.3

  
PT Telekomunikasi Indonesia
Persero Tbk ADR (Indonesia)
  

1.3

  

Cyfrowy Polsat SA (Poland)

  

1.3

  
Grupo Aeroportuario del
Sureste SAB de CV Class B
(Mexico)
  

1.3

  

Percentages indicated are based upon total investments.

For further detail about these holdings, please refer to the section entitled "Portfolio of Investments."

Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.

Annual Report 2017
27



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia Emerging Markets Core ETF

Country Breakdown (%)
(at March 31, 2017)
 

Brazil

  

8.7

  

Chile

  

1.3

  

China

  

13.7

  

Hong Kong

  

1.3

  

India

  

15.5

  

Indonesia

  

3.8

  

Malaysia

  

6.3

  

Mexico

  

15.5

  

Peru

  

1.2

  

Philippines

  

4.9

  

Poland

  

2.5

  

Russia

  

5.0

  

South Africa

  

14.1

  

Thailand

  

3.7

  

Turkey

  

1.3

  

United Arab Emirates

  

1.2

  

Total

  

100.0

  

Country Breakdown is based primarily on issuer's place of risk. Percentages indicated are based upon total investments. The Fund's portfolio composition is subject to change.

Equity Sector Breakdown (%)
(at March 31, 2017)
 

Consumer Discretionary

  

20.2

  

Consumer Staples

  

15.2

  

Energy

  

5.1

  

Financials

  

12.2

  

Health Care

  

7.6

  

Industrials

  

10.9

  

Information Technology

  

6.2

  

Materials

  

8.6

  

Real Estate

  

5.7

  

Telecommunication Services

  

4.4

  

Utilities

  

3.9

  

Total

  

100.0

  

Percentages indicated are based upon total equity investments. The Fund's portfolio composition is subject to change.

initial "Trump spike" late in 2016. Positive economic data out of China and Indian market strength further drove the rally. The South Korean equity market also posted healthy gains, and the South Korean won was one of the strong emerging market currencies, despite, or perhaps because of, the impeachment of President Park Geun-hye.

Contributors and detractors

Constituents in the information technology, consumer discretionary and health care sectors detracted most from the Fund's results during the annual period. Partially offsetting these detractors were constituents in the materials, telecommunication services and energy sectors, which contributed most positively to results.

From a country perspective, constituents in China, Mexico and South Africa detracted most from. Conversely, constituents in Brazil, Indonesia and India contributed most positively to results during the annual period.

Positions in LPP, a Polish clothing designer and distributor; Airports of Thailand, a Thai airport operator; and Alfa, a Mexican diversified industrials company detracted most. Each posted a modestly negative return during the annual period. Positions in Vale, a Brazilian metals producer; Petroleo Brasileiro (Petrobras), a Brazilian oil and gas exploration and production company; and Telekomunikasi Indonesia Persero, an Indonesia telecommunications company contributed most positively. Vale posted a triple-digit gain, and Petrobras and Telekomunikasi Indonesia Persero each produced a robust double-digit gain during the annual period.

Annual Report 2017
28



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia Emerging Markets Core ETF

Investment Risks

Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This Fund is non-diversified and, as a result, may have greater volatility than diversified-funds. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its underlying index is so concentrated and to the extent permitted by applicable laws and regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an Index. See the Fund's prospectus for more information on these and other risks.

Trading Discount to NAV Risks

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

Annual Report 2017
29




COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW

Columbia India Consumer ETF

Columbia India Consumer ETF (the Fund) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the Indxx India Consumer Index.

Average Annual Total Returns (%) (for period ended March 31, 2017)

  

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

08/10/11

  

23.67

   

15.13

   

12.34

  

Net Asset Value

 

08/10/11

  

23.06

   

15.00

   

12.24

  

Indxx India Consumer Index

      

24.65

   

16.85

   

13.99

  

All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by the Fund's former investment manager or Columbia Management. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting columbiathreadneedleetf.com.

Columbia Management took over portfolio management in September 2016 upon its acquisition of the Fund's previous investment manager.

The price used to calculate Market Price return is based on the midpoint of the 4:00 PM Eastern (U.S.) bid/ask spread on the NYSE and does not represent returns an investor would receive if shares were traded at other times.

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

The Indxx India Consumer Index is a modified equal-weighted index designed to measure the market performance of up to 116 companies that S&P determines to be representative of all industries domiciled in emerging market countries, subject to a 15% country cap.

Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.

Annual Report 2017
30



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW (continued)

Columbia India Consumer ETF

Performance of a Hypothetical $10,000 Investment (August 10, 2011 – March 31, 2017)

The chart above shows the change in value of a hypothetical $10,000 investment made on the Fund's inception, and does not reflect the deduction of taxes or brokerage commissions that a shareholder may pay on Fund distributions or on the redemption of Fund shares.

Annual Report 2017
31



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia India Consumer ETF

Portfolio Management

Christopher Lo, Ph.D., CFA

Frank Vallario

Top Ten Holdings (%)
(at March 31, 2017)
 

Nestle India, Ltd.

  

5.2

  

Britannia Industries Ltd.

  

5.0

  
Zee Entertainment
Enterprises, Ltd.
  

4.9

  

Hindustan Unilever, Ltd.

  

4.9

  

Motherson Sumi Systems, Ltd.

  

4.8

  

Godrej Consumer Products, Ltd.

  

4.8

  

Maruti Suzuki India, Ltd.

  

4.8

  

Bosch, Ltd.

  

4.7

  

Tata Motors, Ltd.

  

4.7

  

Mahindra & Mahindra, Ltd.

  

4.7

  

Percentages indicated are based upon total investments.

For further detail about these holdings, please refer to the section entitled "Portfolio of Investments."

Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.

Equity Sector Breakdown (%)
(at March 31, 2017)
 

Consumer Goods

  

81.3

  

Consumer Services

  

6.2

  

Industrials

  

12.5

  

Total

  

100.0

  

Percentages indicated are based upon total equity investments. The Fund's portfolio composition is subject to change.

For the 12-month period that ended March 31, 2017, the Fund returned 23.06% based on net asset value (NAV) and 23.67% based on market price. The Indxx India Consumer Index, returned 24.65% during the same time period.

The Fund's NAV on March 31, 2016 was $31.16 and it ended the annual period on March 31, 2017 with a NAV of $38.31. The Fund's market price on March 31, 2017 was $38.51 per share.

Indian equities posted robust returns amidst strong economic growth

The Indian equity market posted robust gains during the annual period ended March 31, 2017 amidst strong economic growth. Indeed, India is currently the fastest growing large economy in the world with more than 7% real Gross Domestic Product (GDP) growth. Several monetary, fiscal and political factors further supported the performance of the equity market in India during the annual period.

In June 2016, India's central bank governor Raghuram Rajan announced he would step down when his term ended in early September 2016. Finance Minister Arun Jaitley said the government appreciated the work done by Rajan and respected his decision to return to academia. While there was some short-term nervousness initially, investors were calmed when in early August 2016, Indian Prime Minister Narendra Modi appointed Urjit Patel as the governor of the Reserve Bank of India, ending months of speculation about who would be Rajan's successor and signaling that prudent monetary policy would continue to be the norm. Patel had been guiding the monetary policy as a deputy governor since 2013, playing a key role in developing the country's monetary policy framework, which has focused on reining in inflation and imparting stability to the currency. Most investors appeared to believe that, with a global perspective and a solid academic background, Patel's appointment would ensure a smooth transition and continuity in monetary policy, as India puts in place major structural reforms to transition to a higher economic growth path.

On the fiscal front, on November 8, 2016, the Indian government announced it was withdrawing high-denomination banknotes in the nation's biggest crackdown against corruption in almost four decades. All 500 and 1000 rupee notes would cease to be legal tender, Prime Minister Modi announced in an unscheduled address to the nation. The notes in circulation would need to be deposited in banks by the end of December 2016. Chaos prevailed across the country, as people lined up outside cash dispensing machines and banks following the announcement, and the Indian equity market sold off 8.5% in the week following the announcement. While this action sparked a surge in cash deposits, briefly impacted consumption and caused some near-term pain, the move also raised hopes the added liquidity would allow banks to lower lending rates more aggressively and support a healthier India over the long term.

In the first quarter of 2017, the Indian equity market rallied, supported by political events. In mid-March 2017, with an overwhelming victory in

Annual Report 2017
32



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia India Consumer ETF

India's most important state election, Prime Minister Modi secured his place as the country's most influential leader, eclipsing his rivals and positioning his party for a second term in 2019. Prime Minister Modi's success is widely anticipated to allow him to aggressively push his economic agenda, although he will still face entrenched opposition to some reforms in the upper house of India's parliament. That said, one of his reforms, the Goods and Services Tax (GST) bill was passed by India's parliament at the end of March 2017, paving the way for all the Indian states to pass the States' GST Bill. After this is accomplished, a new indirect tax regime can be rolled out, enabling the government to implement the landmark bill on its target date of July 1, 2017. It is widely anticipated that the final nod to the fixation of GST rates for major commodities and services will be given at the next meeting of the GST council in mid-May 2017.

Contributors and detractors

Constituents in the information technology, financials and materials sectors detracted most from the Fund's results during the annual period. Partially offsetting these detractors were constituents in the consumer discretionary, consumer staples and telecommunication services sectors, which contributed most positively to results.

Positions in United Spirits, an alcoholic beverage manufacturer and distributor; GlaxoSmithKline Consumer Healthcare, a malted milk food products manufacturer; and United Breweries, another alcoholic beverage manufacturer detracted most. Each posted a negative return during the annual period. Positions in Maruti Suzuki India, an auto manufacturer and exporter; Zee Entertainment Enterprises, a media content producer and developer; and MRF, an automobile components manufacturer and distributor contributed most positively. Each produced a robust double-digit gain during the annual period.

Investment Risks

Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This Fund is non-diversified and, as a result, may have greater volatility than diversified-funds. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its underlying index is so concentrated and to the extent permitted by applicable laws and regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an Index. See the Fund's prospectus for more information on these and other risks.

Trading Discount to NAV Risks

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

Annual Report 2017
33



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW

Columbia India Infrastructure ETF

Columbia India Infrastructure ETF (the Fund) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the Indxx India Infrastructure Index.

Average Annual Total Returns (%) (for period ended March 31, 2017)

  

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

08/11/10

  

30.93

   

0.82

   

-3.65

  

Net Asset Value

 

08/11/10

  

30.61

   

0.57

   

-3.74

  

Indxx India Infrastructure Index

      

32.57

   

1.68

   

-2.65

  

All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by the Fund's former investment manager or Columbia Management. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting columbiathreadneedleetf.com.

Columbia Management took over portfolio management in September 2016 upon its acquisition of the Fund's previous investment manager.

The price used to calculate Market Price return is based on the midpoint of the 4:00 PM Eastern (U.S.) bid/ask spread on the NYSE and does not represent returns an investor would receive if shares were traded at other times.

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

The Indxx India Infrastructure Index is a maximum 30-stock free-float adjusted market capitalization-weighted index designed to measure the market performance of companies in the infrastructure industry in India, as defined by Indxx's proprietary methodology. The index consists of common stocks listed on the primary exchange of India and ADRs and GDRs.

Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.

Annual Report 2017
34



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW (continued)

Columbia India Infrastructure ETF

Performance of a Hypothetical $10,000 Investment (August 11, 2010 – March 31, 2017)

The chart above shows the change in value of a hypothetical $10,000 investment made on the Fund's inception, and does not reflect the deduction of taxes or brokerage commissions that a shareholder may pay on Fund distributions or on the redemption of Fund shares.

Annual Report 2017
35



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia India Infrastructure ETF

Portfolio Management

Christopher Lo, Ph.D., CFA

Frank Vallario

Top Ten Holdings (%)
(at March 31, 2017)
 

Vedanta, Ltd.

  

7.1

  

GAIL India, Ltd.

  

5.7

  
Adani Ports and Special
Economic Zone, Ltd.
  

5.7

  

Eicher Motors, Ltd.

  

5.1

  

Bharti Airtel, Ltd.

  

5.0

  

NTPC, Ltd.

  

4.8

  

Larsen & Toubro, Ltd.

  

4.7

  

UltraTech Cement, Ltd.

  

4.6

  

JSW Steel, Ltd.

  

4.5

  

Bharti Infratel, Ltd.

  

4.2

  

Percentages indicated are based upon total investments.

For further detail about these holdings, please refer to the section entitled "Portfolio of Investments."

Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.

Equity Sector Breakdown (%)
(at March 31, 2017)
 

Basic Materials

  

14.2

  

Consumer Goods

  

5.2

  

Financials

  

1.6

  

Industrials

  

45.3

  

Oil & Gas

  

5.7

  

Telecommunications

  

13.1

  

Utilities

  

14.9

  

Total

  

100.0

  

Percentages indicated are based upon total equity investments. The Fund's portfolio composition is subject to change.

For the 12-month period that ended March 31, 2017, the Fund returned 30.61% based on net asset value (NAV) and 30.93% based on market price. The Indxx India Infrastructure Index, returned 32.57% during the same time period.

The Fund's NAV on March 31, 2016 was $10.24 and it ended the annual period on March 31, 2017 with a NAV of $12.98. The Fund's market price on March 31, 2017 was $13.06 per share.

Indian equities posted robust returns amidst strong economic growth

The Indian equity market posted robust gains during the annual period ended March 31, 2017 amidst strong economic growth. Indeed, India is currently the fastest growing large economy in the world with more than 7% real Gross Domestic Product (GDP) growth. Several monetary, fiscal and political factors further supported the performance of the equity market in India during the annual period.

In June 2016, India's central bank governor Raghuram Rajan announced he would step down when his term ended in early September 2016. Finance Minister Arun Jaitley said the government appreciated the work done by Rajan and respected his decision to return to academia. While there was some short-term nervousness initially, investors were calmed when in early August 2016, Indian Prime Minister Narendra Modi appointed Urjit Patel as the governor of the Reserve Bank of India, ending months of speculation about who would be Rajan's successor and signaling that prudent monetary policy would continue to be the norm. Patel had been guiding the monetary policy as a deputy governor since 2013, playing a key role in developing the country's monetary policy framework, which has focused on reining in inflation and imparting stability to the currency. Most investors appeared to believe that, with a global perspective and a solid academic background, Patel's appointment would ensure a smooth transition and continuity in monetary policy, as India puts in place major structural reforms to transition to a higher economic growth path.

On the fiscal front, on November 8, 2016, the Indian government announced it was withdrawing high-denomination banknotes in the nation's biggest crackdown against corruption in almost four decades. All 500 and 1000 rupee notes would cease to be legal tender, Prime Minister Modi announced in an unscheduled address to the nation. The notes in circulation would need to be deposited in banks by the end of December 2016. Chaos prevailed across the country, as people lined up outside cash dispensing machines and banks following the announcement, and the Indian equity market sold off 8.5% in the week following the announcement. While this action sparked a surge in cash deposits, briefly impacted consumption and caused some near-term pain, the move also raised hopes the added liquidity would allow banks to lower lending rates more aggressively and support a healthier India over the long term.

In the first quarter of 2017, the Indian equity market rallied, supported by political events. In mid-March 2017, with an overwhelming victory in

Annual Report 2017
36



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia India Infrastructure ETF

India's most important state election, Prime Minister Modi secured his place as the country's most influential leader, eclipsing his rivals and positioning his party for a second term in 2019. Prime Minister Modi's success is widely anticipated to allow him to aggressively push his economic agenda, although he will still face entrenched opposition to some reforms in the upper house of India's parliament. That said, one of his reforms, the Goods and Services Tax (GST) bill was passed by India's parliament at the end of March 2017, paving the way for all the Indian states to pass the States' GST Bill. After this is accomplished, a new indirect tax regime can be rolled out, enabling the government to implement the landmark bill on its target date of July 1, 2017. It is widely anticipated that the final nod to the fixation of GST rates for major commodities and services will be given at the next meeting of the GST council in mid-May 2017.

Contributors and detractors

Constituents in the industrials, materials and utilities sectors contributed most positively to the Fund's results during the annual period. Partially offsetting these positive contributors were constituents in the information technology, telecommunication services and financials sectors, which detracted most from during the annual period.

Positions in Vedanta, a base metals miner; Gail India, a utilities company; and NTPC, another utilities company, contributed most positively. Vedanta posted a triple-digit gain, and Gail India and NTPC each produced a robust double-digit gain during the annual period. Positions in Idea Cellular, a telecommunication services company; Bharti Infratel, a telecommunication infrastructure company; and ACC, a cement manufacturer detracted most. Each posted a negative return during the annual period.

Investment Risks

Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This Fund is non-diversified and, as a result, may have greater volatility than diversified-funds. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its underlying index is so concentrated and to the extent permitted by applicable laws and regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an Index. See the Fund's prospectus for more information on these and other risks.

Trading Discount to NAV Risks

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

Annual Report 2017
37



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW

Columbia India Small Cap ETF

Columbia India Small Cap ETF (the Fund) seeks investment results that correspond (before fees and expenses) to the price and yield performance of the Indxx India Small Cap Index.

Average Annual Total Returns (%) (for period ended March 31, 2017)

  

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

07/07/10

  

36.29

   

5.82

   

-0.37

  

Net Asset Value

 

07/07/10

  

35.62

   

5.85

   

-0.44

  

Indxx India Small Cap Index

      

37.55

   

7.59

   

1.08

  

All results shown assume reinvestment of distributions during the period. Returns do not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on the redemption of Fund shares. Performance results reflect the effect of any fee waivers or reimbursements of Fund expenses by the Fund's former investment manager or Columbia Management. Absent these fee waivers or expense reimbursement arrangements, performance results would have been lower.

The performance information shown represents past performance and is not a guarantee of future results. The investment return and principal value of your investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting columbiathreadneedleetf.com.

Columbia Management took over portfolio management in September 2016 upon its acquisition of the Fund's previous investment manager.

The price used to calculate Market Price return is based on the midpoint of the 4:00 PM Eastern (U.S.) bid/ask spread on the NYSE and does not represent returns an investor would receive if shares were traded at other times.

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

The Indxx India Small Cap Index is a maximum 75-stock free-float adjusted market capitalization-weighted index designed to measure the market performance of companies in the small cap segment in India. The index consists of securities listed on the primary stock exchange of India.

Indices are not available for investment, are not professionally managed and do not reflect sales charges, fees, brokerage commissions, taxes or other expenses of investing. Securities in the Fund may not match those in an index.

Annual Report 2017
38



COLUMBIA ETF TRUST II

PERFORMANCE OVERVIEW (continued)

Columbia India Small Cap ETF

Performance of a Hypothetical $10,000 Investment (July 7, 2010 – March 31, 2017)

The chart above shows the change in value of a hypothetical $10,000 investment made on the Fund's inception, and does not reflect the deduction of taxes or brokerage commissions that a shareholder may pay on Fund distributions or on the redemption of Fund shares.

Annual Report 2017
39



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia India Small Cap ETF

Portfolio Management

Christopher Lo, Ph.D., CFA

Frank Vallario

Top Ten Holdings (%)
(at March 31, 2017)
 

Suzlon Energy, Ltd.

  

3.7

  

Tata Global Beverages, Ltd.

  

3.5

  

Escorts, Ltd.

  

3.4

  

Karur Vysya Bank, Ltd. (The)

  

3.1

  
Multi Commodity Exchange of
India, Ltd.
  

2.5

  

Manappuram Finance, Ltd.

  

2.4

  

Gujarat Pipavav Port, Ltd.

  

2.3

  

Mindtree, Ltd.

  

2.2

  

Reliance Communications, Ltd.

  

2.2

  

Sintex Industries, Ltd.

  

2.2

  

Percentages indicated are based upon total investments.

For further detail about these holdings, please refer to the section entitled "Portfolio of Investments."

Fund holdings are as of the date given, are subject to change at any time, and are not recommendations to buy or sell any security.

Equity Sector Breakdown (%)
(at March 31, 2017)
 

Basic Materials

  

3.6

  

Consumer Goods

  

15.8

  

Consumer Services

  

9.6

  

Financials

  

20.9

  

Health Care

  

4.9

  

Industrials

  

26.2

  

Oil & Gas

  

5.1

  

Technology

  

7.8

  

Telecommunications

  

2.2

  

Utilities

  

3.9

  

Total

  

100.0

  

Percentages indicated are based upon total equity investments. The Fund's portfolio composition is subject to change.

For the 12-month period that ended March 31, 2017, the Fund returned 35.62% based on net asset value (NAV) and 36.29% based on market price. The Indxx India Small Cap Index (the Index) returned 37.55% during the same period.

The Fund's NAV on March 31, 2016 was $13.59 and it ended the annual period on March 31, 2017 with a NAV of $18.26. The Fund's market price on March 31, 2017 was $18.35 per share.

Indian equities posted robust returns amidst strong economic growth

The Indian equity market posted robust gains during the annual period ended March 31, 2017 amidst strong economic growth. Indeed, India is currently the fastest growing large economy in the world with more than 7% real Gross Domestic Product (GDP) growth. Several monetary, fiscal and political factors further supported the performance of the equity market in India during the annual period.

In June 2016, India's central bank governor Raghuram Rajan announced he would step down when his term ended in early September 2016. Finance Minister Arun Jaitley said the government appreciated the work done by Rajan and respected his decision to return to academia. While there was some short-term nervousness initially, investors were calmed when in early August 2016, Indian Prime Minister Narendra Modi appointed Urjit Patel as the governor of the Reserve Bank of India, ending months of speculation about who would be Rajan's successor and signaling that prudent monetary policy would continue to be the norm. Patel had been guiding the monetary policy as a deputy governor since 2013, playing a key role in developing the country's monetary policy framework, which has focused on reining in inflation and imparting stability to the currency. Most investors appeared to believe that, with a global perspective and a solid academic background, Patel's appointment would ensure a smooth transition and continuity in monetary policy, as India puts in place major structural reforms to transition to a higher economic growth path.

On the fiscal front, on November 8, 2016, the Indian government announced it was withdrawing high-denomination banknotes in the nation's biggest crackdown against corruption in almost four decades. All 500 and 1000 rupee notes would cease to be legal tender, Prime Minister Modi announced in an unscheduled address to the nation. The notes in circulation would need to be deposited in banks by the end of December 2016. Chaos prevailed across the country, as people lined up outside cash dispensing machines and banks following the announcement, and the Indian equity market sold off 8.5% in the week following the announcement. While this action sparked a surge in cash deposits, briefly impacted consumption and caused some near-term pain, the move also raised hopes the added liquidity would allow banks to lower lending rates more aggressively and support a healthier India over the long term.

In the first quarter of 2017, the Indian equity market rallied, supported by political events. In mid-March 2017, with an overwhelming victory in

Annual Report 2017
40



COLUMBIA ETF TRUST II

MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia India Small Cap ETF

India's most important state election, Prime Minister Modi secured his place as the country's most influential leader, eclipsing his rivals and positioning his party for a second term in 2019. Prime Minister Modi's success is widely anticipated to allow him to aggressively push his economic agenda, although he will still face entrenched opposition to some reforms in the upper house of India's parliament. That said, one of his reforms, the Goods and Services Tax (GST) bill was passed by India's parliament at the end of March 2017, paving the way for all the Indian states to pass the States' GST Bill. After this is accomplished, a new indirect tax regime can be rolled out, enabling the government to implement the landmark bill on its target date of July 1, 2017. It is widely anticipated that the final nod to the fixation of GST rates for major commodities and services will be given at the next meeting of the GST council in mid-May 2017.

Contributors and detractors

Constituents in the financials, industrials and utilities sectors contributed most positively to the Fund's results during the annual period. Partially offsetting these positive contributors were constituents in information technology and energy, the only two sectors that detracted from the Fund's results during the annual period.

Positions in Federal Bank, electrical equipment manufacturer and servicer CG Power and Industrial Solutions and consumer finance solutions provider Bharat Financial Inclusion contributed most positively. Each produced a robust double-digit gain during the annual period. Positions in Infibeam, an online shopping website owner and operator; Just Dial, a local search engine operator; and Intellect Design Arena, a financial technology firm detracted most. Each posted a double-digit negative return during the annual period.

Investment Risks

Emerging market investments involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, from economic or political instability in other nations or increased volatility and lower trading volume. This Fund is non-diversified and, as a result, may have greater volatility than diversified-funds. This Fund will concentrate its investments in issuers of one or more particular industries to the same extent that its underlying index is so concentrated and to the extent permitted by applicable laws and regulatory guidance. Concentration risk results from maintaining exposure to issuers conducting business in a specific industry. Small-cap and mid-cap companies generally will have greater volatility in price than the stocks of large companies due to limited product lines or resources or a dependency upon a particular market niche. One cannot invest directly in an Index. See the Fund's prospectus for more information on these and other risks.

Trading Discount to NAV Risks

The Fund's shares may trade above or below their net asset value. The net asset value of the Fund will generally fluctuate with changes in the market value of the Fund's holdings. The market prices of shares, however, will generally fluctuate in accordance with changes in net asset value as well as the relative supply of, and demand for, shares on the exchange. The trading price of shares may deviate significantly from the net asset value.

Annual Report 2017
41




COLUMBIA ETF TRUST II

UNDERSTANDING YOUR FUND'S EXPENSES

(Unaudited)

As a shareholder of a Fund, you incur ongoing costs, including investment management fees. The following example is intended to help you understand your ongoing costs (in dollars and cents) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.

The examples are based on an initial investment of $1,000 invested at the beginning of the period and held for the period ended March 31, 2017.

Actual Expenses

The information under each column in the table below entitled "Actual" provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number for your Fund under the heading entitled "Expenses Paid for the Period 10/1/2016 to 3/31/2017" to estimate the expenses you paid on your account during this period.

Hypothetical Example For Comparison Purposes

The information under each column in the table entitled "Hypothetical" provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% 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 this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table 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 ending account values and expenses paid for the period in the table is useful in comparing ongoing Fund costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

October 1, 2016 – March 31, 2017

  Beginning Account Value
($)
 Ending Account Value
($)
 Expenses Paid For the
Period ($)
 Annualized Expense
Ratios for the
Period (%)
 
  

Actual

 

Hypothetical

 

Actual

 

Hypothetical

 

Actual

 

Hypothetical

 

Actual

 
Columbia Beyond
BRICs ETF
  

1,000.00

   

1,000.00

   

1,032.80

   

1,022.04

   

2.94

   

2.92

   

0.58

  
Columbia EM Core
ex-China ETF
  

1,000.00

   

1,000.00

   

1,078.10

   

1,023.19

   

1.81

   

1.77

   

0.35

  
Columbia EM Quality
Dividend ETF
  

1,000.00

   

1,000.00

   

1,027.60

   

1,020.69

   

4.30

   

4.28

   

0.85

  
Columbia EM Strategic
Opportunities ETF
  

1,000.00

   

1,000.00

   

1,006.10

   

1,021.69

   

3.25

   

3.28

   

0.65

  
Columbia Emerging
Markets Consumer ETF
  

1,000.00

   

1,000.00

   

1,011.30

   

1,020.69

   

4.26

   

4.28

   

0.85

  
Columbia Emerging
Markets Core ETF
  

1,000.00

   

1,000.00

   

1,042.10

   

1,021.44

   

3.56

   

3.53

   

0.70

  
Columbia India
Consumer ETF
  

1,000.00

   

1,000.00

   

1,064.60

   

1,020.49

   

4.58

   

4.48

   

0.89

  
Columbia India
Infrastructure ETF
  

1,000.00

   

1,000.00

   

1,138.30

   

1,020.04

   

5.22

   

4.94

   

0.98

  
Columbia India
Small Cap ETF
  

1,000.00

   

1,000.00

   

1,124.50

   

1,020.64

   

4.56

   

4.33

   

0.86

  

Expenses are calculated using the Fund's annualized expense ratio, multiplied by the average account value over the period, then multiplied by the number of days in the Fund's most recent fiscal half-year and divided by 365.

Expense ratios reflect expense caps through the period ended March 31, 2017. Expense ratios for the most recent fiscal half-year may differ from expense ratios based on the one year data in the Financial Highlights due to changes in the expense caps.

Had the Investment Manager not waived fees or reimbursed a portion of expenses, account values at the end of the period would have been reduced.

Annual Report 2017
42



COLUMBIA ETF TRUST II

FREQUENCY DISTRIBUTION OF PREMIUMS AND DISCOUNTS

(Unaudited)

The tables that follow present information about the differences between the daily market price on secondary markets for shares of a Fund and that Fund's net asset value. Net asset value, or "NAV", is the price per share at which each Fund issues and redeems shares. It is calculated in accordance with the standard formula for valuing fund shares. The "Market Price" of each Fund generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the shares of such Fund are listed for trading, as of the time that the Fund's NAV is calculated. Each Fund's Market Price may be at, above or below its NAV. The NAV of each Fund will fluctuate with changes in the market value of its portfolio holdings. The Market Price of each Fund will fluctuate in accordance with changes in its NAV, as well as market supply and demand.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of a Fund on a given day, generally at the time NAV is calculated. A premium is the amount that a Fund is trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that a Fund is trading below the reported NAV, expressed as a percentage of the NAV. The following information shows the frequency distributions of premiums and discounts for each of the Funds.

The information shown for each Fund is for the period from inception date of such Fund through March 31, 2017.

Each line in the table shows the number of trading days in which the Fund traded within the premium/discount range indicated. All data presented here represents past performance, which cannot be used to predict future results.

    Market Price Above
or Equal to NAV
 

Market Price Below NAV

 
  

Basis Point Differential

 Number of
Days
 Number of
Days
 

Columbia Beyond BRICs ETF

       

August 15, 2012 – March 31, 2017

       
   

0 - 49.9

   

279

   

201

  
   

50 - 99.9

   

324

   

161

  
   

100 - 199.9

   

116

   

73

  
   

> 200

   

5

   

5

  
  

Total

  

724

   

440

  
    Market Price Above
or Equal to NAV
 

Market Price Below NAV

 
  

Basis Point Differential

 Number of
Days
 Number of
Days
 

Columbia EM Core ex-China ETF

       

September 2, 2015 – March 31, 2017

       
   

0 - 49.9

   

115

   

47

  
   

50 - 99.9

   

139

   

19

  
   

100 - 199.9

   

67

   

5

  
   

> 200

   

6

   

0

  
  

Total

  

327

   

71

  

Annual Report 2017
43



COLUMBIA ETF TRUST II

FREQUENCY DISTRIBUTION OF PREMIUMS AND DISCOUNTS (continued)

(Unaudited)

    Market Price Above
or Equal to NAV
 

Market Price Below NAV

 
  

Basis Point Differential

 Number of
Days
 Number of
Days
 

Columbia EM Quality Dividend ETF

       

August 4, 2011 – March 31, 2017

       
   

0 - 49.9

   

379

   

418

  
   

50 - 99.9

   

179

   

266

  
   

100 - 199.9

   

48

   

112

  
   

> 200

   

8

   

14

  
  

Total

  

614

   

810

  
    Market Price Above
or Equal to NAV
 

Market Price Below NAV

 
  

Basis Point Differential

 Number of
Days
 Number of
Days
 

Columbia EM Strategic Opportunities ETF

       

August 15, 2012 – March 31, 2017

       
   

0 - 49.9

   

327

   

243

  
   

50 - 99.9

   

336

   

119

  
   

100 - 199.9

   

96

   

37

  
   

> 200

   

4

   

2

  
  

Total

  

763

   

401

  
    Market Price Above
or Equal to NAV
 

Market Price Below NAV

 
  

Basis Point Differential

 Number of
Days
 Number of
Days
 

Columbia Emerging Markets Consumer ETF

       

September 14, 2010 – March 31, 2017

       
   

0 - 49.9

   

728

   

365

  
   

50 - 99.9

   

328

   

128

  
   

100 - 199.9

   

48

   

43

  
   

> 200

   

6

   

3

  
  

Total

  

1110

   

539

  
    Market Price Above
or Equal to NAV
 

Market Price Below NAV

 
  

Basis Point Differential

 Number of
Days
 Number of
Days
 

Columbia Emerging Markets Core ETF

       

October 16, 2012 – March 31, 2017

       
   

0 - 49.9

   

349

   

235

  
   

50 - 99.9

   

243

   

122

  
   

100 - 199.9

   

64

   

95

  
   

> 200

   

4

   

9

  
  

Total

  

660

   

461

  

Annual Report 2017
44



COLUMBIA ETF TRUST II

FREQUENCY DISTRIBUTION OF PREMIUMS AND DISCOUNTS (continued)

(Unaudited)

    Market Price Above
or Equal to NAV
 

Market Price Below NAV

 
  

Basis Point Differential

 Number of
Days
 Number of
Days
 

Columbia India Consumer ETF

       

August 10, 2011 – March 31, 2017

       
   

0 - 49.9

   

334

   

289

  
   

50 - 99.9

   

274

   

143

  
   

100 - 199.9

   

227

   

82

  
   

> 200

   

59

   

12

  
  

Total

  

894

   

526

  
    Market Price Above
or Equal to NAV
 

Market Price Below NAV

 
  

Basis Point Differential

 Number of
Days
 Number of
Days
 

Columbia India Infrastructure ETF

       

August 11, 2010 – March 31, 2017

       
   

0 - 49.9

   

399

   

296

  
   

50 - 99.9

   

292

   

242

  
   

100 - 199.9

   

222

   

145

  
   

> 200

   

39

   

37

  
  

Total

  

952

   

720

  
    Market Price Above
or Equal to NAV
 

Market Price Below NAV

 
  

Basis Point Differential

 Number of
Days
 Number of
Days
 

Columbia India Small Cap ETF

       

July 7, 2010 – March 31, 2017

       
   

0 - 49.9

   

363

   

324

  
   

50 - 99.9

   

228

   

259

  
   

100 - 199.9

   

194

   

242

  
   

> 200

   

35

   

52

  
  

Total

  

820

   

877

  

Annual Report 2017
45




COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS

Columbia Beyond BRICs ETF

March 31, 2017

(Percentages represent value of investments compared to net assets)

Common Stocks — 98.6%

Issuer

 

Shares

 

Value ($)

 

BANGLADESH — 2.5%

 

Bangladesh Steel Re-Rolling Mills, Ltd.

  

229,598

   

413,314

  

Square Pharmaceuticals, Ltd.

  

402,932

   

1,395,933

  

Total Bangladesh

    

1,809,247

  

CHILE — 1.1%

 

Cencosud SA

  

114,158

   

349,627

  

S.A.C.I. Falabella

  

49,124

   

411,767

  

Total Chile

    

761,394

  

COLOMBIA — 0.3%

 

Ecopetrol SA(a)

  

497,801

   

232,226

  

CZECH REPUBLIC — 0.4%

 

CEZ AS

  

16,139

   

278,498

  

INDONESIA — 9.8%

 

PT Astra International Tbk

  

2,039,993

   

1,320,396

  

PT Bank Central Asia Tbk

  

1,244,501

   

1,545,645

  

PT Bank Mandiri Persero Tbk

  

941,657

   

826,790

  

PT Bank Rakyat Indonesia Persero Tbk

  

1,091,542

   

1,062,831

  

PT Gudang Garam Tbk

  

46,547

   

228,884

  
PT Telekomunikasi Indonesia
Persero Tbk
  

5,117,105

   

1,585,955

  

PT Unilever Indonesia Tbk

  

115,424

   

375,276

  

Total Indonesia

    

6,945,777

  

KENYA — 3.4%

 

Equity Group Holdings, Ltd.(a)

  

2,730,929

   

875,383

  

Safaricom, Ltd.

  

8,789,544

   

1,536,783

  

Total Kenya

    

2,412,166

  

MALAYSIA — 10.7%

 

Axiata Group Bhd

  

459,300

   

525,151

  

CIMB Group Holdings Bhd

  

572,600

   

720,683

  

DiGi.Com Bhd

  

376,500

   

436,435

  

IHH Healthcare Bhd

  

281,800

   

382,058

  

Malayan Banking Bhd

  

569,200

   

1,147,275

  

MISC Bhd

  

148,600

   

245,792

  

Petronas Chemicals Group Bhd

  

290,600

   

505,620

  

Petronas Gas Bhd

  

79,900

   

356,756

  

Public Bank Bhd

  

315,520

   

1,418,788

  

Sime Darby Bhd

  

356,800

   

748,188

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Tenaga Nasional Bhd

  

361,500

   

1,120,728

  

Total Malaysia

    

7,607,474

  

MEXICO — 15.5%

 

Alfa SAB de CV Class A

  

259,256

   

377,167

  

America Movil SAB de CV Series L

  

2,720,150

   

1,917,984

  

Arca Continental SAB de CV

  

26,122

   

180,442

  

Cemex SAB de CV Series CPO(a)

  

1,178,433

   

1,060,544

  
Fomento Economico Mexicano SAB de
CV Series UBD
  

199,353

   

1,757,476

  

Grupo Bimbo SAB de CV Series A

  

172,456

   

426,604

  
Grupo Financiero Banorte SAB de
CV Class O
  

209,802

   

1,199,273

  
Grupo Financiero Inbursa SAB de
CV Class O
  

189,446

   

312,120

  

Grupo Mexico SAB de CV Series B

  

359,953

   

1,075,607

  

Grupo Televisa SAB Series CPO

  

229,427

   

1,181,112

  

Industrias Penoles SAB de CV

  

11,659

   

299,000

  

Wal-Mart de Mexico SAB de CV

  

518,417

   

1,187,995

  

Total Mexico

    

10,975,324

  

MOROCCO — 3.7%

 

Attijariwafa Bank

  

32,347

   

1,289,361

  

Maroc Telecom

  

96,915

   

1,325,995

  

Total Morocco

    

2,615,356

  

NIGERIA — 5.4%

 

Guaranty Trust Bank PLC

  

16,943,125

   

1,378,480

  

Nigerian Breweries PLC

  

2,816,349

   

1,168,686

  

Zenith Bank PLC

  

27,477,717

   

1,261,434

  

Total Nigeria

    

3,808,600

  

OMAN — 1.7%

 

Bank Muscat SAOG

  

1,184,128

   

1,181,052

  

PHILIPPINES — 4.4%

 

Ayala Corp.

  

24,370

   

410,416

  

Ayala Land, Inc.

  

236,900

   

156,045

  

BDO Unibank, Inc.

  

175,986

   

412,475

  

JG Summit Holdings, Inc.

  

310,750

   

503,827

  

PLDT, Inc.

  

4,545

   

149,100

  

SM Investments Corp.

  

48,184

   

669,342

  

SM Prime Holdings, Inc.

  

932,400

   

525,898

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
46



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (continued)

Columbia Beyond BRICs ETF

March 31, 2017

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Universal Robina Corp.

  

88,950

   

289,852

  

Total Philippines

    

3,116,955

  

POLAND — 3.2%

 

Bank Pekao SA

  

15,770

   

525,806

  

Polski Koncern Naftowy Orlen SA

  

32,364

   

816,871

  
Polskie Gornictwo Naftowe i
Gazownictwo SA
  

175,771

   

262,639

  
Powszechna Kasa Oszczednosci Bank
Polski SA(a)
  

87,019

   

704,156

  

Total Poland

    

2,309,472

  

QATAR — 1.3%

 

Qatar National Bank QPSC

  

23,444

   

940,696

  

ROMANIA — 1.9%

 

Banca Transilvania SA

  

2,136,283

   

1,334,973

  

SOUTH AFRICA — 14.4%

 

Aspen Pharmacare Holdings, Ltd.

  

28,126

   

576,249

  

Barclays Africa Group, Ltd.

  

33,184

   

345,260

  

FirstRand, Ltd.

  

238,813

   

825,682

  

MTN Group, Ltd.

  

141,024

   

1,283,112

  

Naspers, Ltd. N Shares

  

13,562

   

2,341,458

  

Nedbank Group, Ltd.

  

16,807

   

302,705

  

Remgro, Ltd.

  

41,430

   

636,771

  

Sanlam, Ltd.

  

137,380

   

690,243

  

Sasol, Ltd.

  

43,548

   

1,268,531

  

Shoprite Holdings, Ltd.

  

33,948

   

490,152

  

Standard Bank Group, Ltd.

  

94,856

   

1,016,914

  

Vodacom Group, Ltd.

  

39,605

   

448,958

  

Total South Africa

    

10,226,035

  

THAILAND — 8.1%

 

Advanced Info Service PCL NVDR

  

121,500

   

629,378

  

Airports of Thailand PCL NVDR

  

437,800

   

500,070

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 
Bangkok Dusit Medical Services
PCL NVDR
  

882,600

   

544,522

  
CP ALL PCL NVDR  

529,100

   

908,458

  

PTT Exploration & Production PCL NVDR

  

141,400

   

382,690

  

PTT PCL NVDR

  

147,500

   

1,661,186

  

Siam Commercial Bank PCL NVDR

  

243,700

   

1,156,002

  

Total Thailand

    

5,782,306

  

TURKEY — 2.6%

 

Akbank TAS

  

205,814

   

482,087

  

KOC Holding AS

  

63,963

   

269,612

  

Turk Telekomunikasyon AS

  

52,968

   

85,816

  

Turkcell Iletisim Hizmetleri AS(a)

  

79,907

   

262,652

  

Turkiye Garanti Bankasi AS

  

211,875

   

515,484

  

Turkiye Is Bankasi Class C(a)

  

136,178

   

247,926

  

Total Turkey

    

1,863,577

  

UNITED ARAB EMIRATES — 2.2%

 

Emaar Properties PJSC

  

356,197

   

707,933

  
Emirates Telecommunications
Group Co. PJSC
  

176,597

   

867,840

  

Total United Arab Emirates

    

1,575,773

  

VIETNAM — 6.0%

 

Hoa Phat Group JSC

  

733,372

   

984,597

  

Saigon Securities, Inc.

  

421,540

   

441,825

  

Vietnam Dairy Products JSC

  

239,500

   

1,508,255

  

Vingroup JSC(a)

  

707,132

   

1,298,973

  

Total Vietnam

    

4,233,650

  
Total Investments
(Cost: $78,735,925)
    

70,010,551

  

Other Assets & Liabilities, Net

    

1,007,423

  

Net Assets

    

71,017,974

  

Notes to Portfolio of Investments

(a)  Non-income producing security.

Abbreviation Legend

NVDR  Non-Voting Depositary Receipts

PJSC  Private Joint Stock Company

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
47



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (continued)

Columbia Beyond BRICs ETF

March 31, 2017

Fair Value Measurements

The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund's assumptions about the information market participants would use in pricing an investment. An investment's level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset's or liability's fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

Fair value inputs are summarized in the three broad levels listed below:

>  Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.

>  Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

>  Level 3 — Valuations based on significant unobservable inputs (including the Fund's own assumptions and judgment in determining the fair value of investments).

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment's fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.

Under the direction of the Fund's Board of Trustees (the Board), the Investment Manager's Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.

The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendation of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.

For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
48



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (continued)

Columbia Beyond BRICs ETF

March 31, 2017

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2017:

Valuation Inputs

 Level 1
Quoted Prices in Active
Markets for Identical
Assets ($)
 Level 2
Other Significant
Observable Inputs ($)
 Level 3
Significant
Unobservable Inputs ($)
 

Total ($)

 

Common Stocks

 

Bangladesh

  

1,809,247

   

   

   

1,809,247

  

Chile

  

761,394

   

   

   

761,394

  

Colombia

  

232,226

   

   

   

232,226

  

Czech Republic

  

278,498

   

   

   

278,498

  

Indonesia

  

6,945,777

   

   

   

6,945,777

  

Kenya

  

2,412,166

   

   

   

2,412,166

  

Malaysia

  

7,607,474

   

   

   

7,607,474

  

Mexico

  

10,975,324

   

   

   

10,975,324

  

Morocco

  

2,615,356

   

   

   

2,615,356

  

Nigeria

  

3,808,600

   

   

   

3,808,600

  

Oman

  

1,181,052

   

   

   

1,181,052

  

Philippines

  

3,116,955

   

   

   

3,116,955

  

Poland

  

2,309,472

   

   

   

2,309,472

  

Qatar

  

940,696

   

   

   

940,696

  

Romania

  

1,334,973

   

   

   

1,334,973

  

South Africa

  

10,226,035

   

   

   

10,226,035

  

Thailand

  

5,782,306

   

   

   

5,782,306

  

Turkey

  

1,863,577

   

   

   

1,863,577

  

United Arab Emirates

  

1,575,773

   

   

   

1,575,773

  

Vietnam

  

4,233,650

   

   

   

4,233,650

  

Total Common Stocks

  

70,010,551

   

   

   

70,010,551

  

Total Investments

  

70,010,551

   

   

   

70,010,551

  

See the Portfolio of Investments for all investment classifications not indicated in the table.

There were no transfers of financial assets between levels during the period.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
49



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS

Columbia EM Core ex-China ETF

March 31, 2017

(Percentages represent value of investments compared to net assets)

Common Stocks — 88.4%

Issuer

 

Shares

 

Value ($)

 

BRAZIL — 4.2%

 

Ambev SA

  

22,658

   

130,170

  

Banco do Brasil SA

  

5,075

   

53,980

  
BM&FBovespa SA — Bolsa de Valores
Mercadorias e Futuros
  

11,244

   

68,316

  
BRF SA  

5,266

   

64,039

  

Cielo SA

  

4,967

   

44,289

  

Itausa — Investimentos Itau SA(a)

  

713

   

2,133

  

Kroton Educacional SA

  

12,411

   

51,912

  

Ultrapar Participacoes SA

  

2,334

   

52,650

  

Total Brazil

    

467,489

  

CHILE — 1.2%

 

Cencosud SA

  

13,758

   

42,136

  

Cia Cervecerias Unidas SA

  

3,392

   

42,616

  

Empresas COPEC SA

  

4,388

   

47,533

  

Total Chile

    

132,285

  

INDIA — 11.8%

 

HDFC Bank, Ltd. ADR

  

5,624

   

423,037

  

ICICI Bank, Ltd. ADR

  

37,953

   

326,396

  

Infosys, Ltd. ADR

  

18,203

   

287,607

  

Tata Motors, Ltd. ADR

  

8,115

   

289,300

  

Total India

    

1,326,340

  

INDONESIA — 3.6%

 

PT Astra International Tbk

  

131,076

   

84,840

  

PT Bank Central Asia Tbk

  

114,144

   

141,765

  

PT Bank Mandiri Persero Tbk

  

97,928

   

85,982

  
PT Telekomunikasi Indonesia
Persero Tbk
  

284,518

   

88,181

  

Total Indonesia

    

400,768

  

MALAYSIA — 2.5%

 

IHH Healthcare Bhd

  

90,500

   

122,698

  

Sime Darby Bhd

  

25,700

   

53,891

  

Tenaga Nasional Bhd

  

32,100

   

99,517

  

Total Malaysia

    

276,106

  

MEXICO — 6.8%

 

Alfa SAB de CV Class A

  

42,357

   

61,621

  

Cemex SAB de CV Series CPO(a)

  

107,996

   

97,192

  

Coca-Cola Femsa SAB de CV Series L

  

15,613

   

111,480

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Fibra Uno Administracion SA de CV

  

22,417

   

38,183

  
Fomento Economico Mexicano SAB de
CV Series UBD
  

5,296

   

46,689

  

Grupo Bimbo SAB de CV Series A

  

33,673

   

83,297

  

Grupo Mexico SAB de CV Series B

  

38,911

   

116,274

  

Grupo Televisa SAB Series CPO

  

20,615

   

106,128

  

Wal-Mart de Mexico SAB de CV

  

47,302

   

108,396

  

Total Mexico

    

769,260

  

PERU — 0.7%

 

Credicorp, Ltd.

  

252

   

41,151

  

Southern Copper Corp.

  

1,093

   

39,228

  

Total Peru

    

80,379

  

PHILIPPINES — 1.4%

 

JG Summit Holdings, Inc.

  

39,150

   

63,475

  

PLDT, Inc.

  

1,620

   

53,144

  

SM Investments Corp.

  

3,380

   

46,953

  

Total Philippines

    

163,572

  

POLAND — 2.1%

 
Powszechna Kasa Oszczednosci
Bank Polski SA(a)
  

15,573

   

126,016

  

Powszechny Zaklad Ubezpieczen SA

  

12,258

   

107,669

  

Total Poland

    

233,685

  

RUSSIA — 4.0%

 

Gazprom PJSC ADR

  

21,697

   

96,985

  

LUKOIL PJSC ADR

  

3,730

   

197,541

  

Sberbank of Russia PJSC ADR

  

13,165

   

151,924

  

Total Russia

    

446,450

  

SOUTH AFRICA — 9.4%

 

Aspen Pharmacare Holdings, Ltd.

  

2,982

   

61,096

  

Bid Corp., Ltd.

  

7,193

   

139,314

  

Bidvest Group, Ltd. (The)

  

7,392

   

84,826

  

FirstRand, Ltd.

  

11,625

   

40,193

  

MTN Group, Ltd.

  

8,831

   

80,349

  

Naspers, Ltd. N Shares

  

1,214

   

209,595

  

Redefine Properties, Ltd.

  

45,487

   

37,350

  

Remgro, Ltd.

  

2,971

   

45,664

  

Sanlam, Ltd.

  

14,118

   

70,933

  

Sasol, Ltd.

  

3,576

   

104,167

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
50



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Core ex-China ETF

March 31, 2017

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Standard Bank Group, Ltd.

  

6,084

   

65,224

  

Steinhoff International Holdings NV

  

24,098

   

115,325

  

Total South Africa

    

1,054,036

  

SOUTH KOREA — 20.1%

 

Amorepacific Corp.

  

134

   

33,611

  

Celltrion, Inc.(a)

  

940

   

75,735

  

Hana Financial Group, Inc.

  

1,651

   

54,551

  

Hyundai Motor Co.

  

1,223

   

172,246

  

KB Financial Group, Inc.

  

4,167

   

182,583

  

Kia Motors Corp.

  

2,800

   

92,766

  

Korea Electric Power Corp.

  

2,277

   

94,578

  

KT&G Corp.

  

877

   

76,462

  

LG Chem, Ltd.

  

210

   

55,209

  

LG Household & Health Care, Ltd.

  

35

   

25,382

  

NAVER Corp.

  

127

   

97,098

  

POSCO

  

532

   

138,435

  

Samsung C&T Corp.

  

479

   

54,612

  

Samsung Electronics Co., Ltd.

  

351

   

646,571

  

Samsung Fire & Marine Insurance Co., Ltd.

  

143

   

34,270

  

Shinhan Financial Group Co., Ltd.

  

3,991

   

166,306

  

SK Hynix, Inc.

  

3,351

   

151,324

  

SK Telecom Co., Ltd.

  

449

   

101,179

  

Total South Korea

    

2,252,918

  

TAIWAN — 14.6%

 

Advanced Semiconductor Engineering, Inc.

  

43,616

   

55,701

  

Cathay Financial Holding Co., Ltd.

  

53,376

   

85,669

  

China Steel Corp.

  

119,717

   

99,822

  

Chunghwa Telecom Co., Ltd.

  

33,097

   

112,350

  

CTBC Financial Holding Co., Ltd.

  

98,687

   

60,983

  

Far Eastern New Century Corp.

  

98,396

   

85,287

  

Formosa Chemicals & Fibre Corp.

  

17,005

   

52,905

  

Formosa Plastics Corp.

  

36,822

   

109,826

  

Hon Hai Precision Industry Co., Ltd.

  

62,262

   

186,730

  

MediaTek, Inc.

  

8,805

   

62,390

  

Nan Ya Plastics Corp.

  

52,044

   

123,324

  

President Chain Store Corp.

  

14,007

   

115,407

  
Taiwan Semiconductor Manufacturing
Co., Ltd.
  

77,416

   

482,216

  

Total Taiwan

    

1,632,610

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

THAILAND — 4.0%

 

Airports of Thailand PCL NVDR

  

65,000

   

74,245

  

BTS Group Holdings PCL NVDR

  

274,100

   

67,403

  
CP ALL PCL NVDR  

27,700

   

47,561

  

PTT PCL

  

7,600

   

85,594

  

Siam Cement PCL (The)

  

4,600

   

72,288

  

Siam Commercial Bank PCL (The)

  

22,100

   

104,832

  

Total Thailand

    

451,923

  

TURKEY — 2.0%

 

Haci Omer Sabanci Holding AS

  

22,064

   

60,588

  

Turkiye Garanti Bankasi AS

  

35,630

   

86,686

  

Turkiye Is Bankasi Class C(a)

  

43,485

   

79,169

  

Total Turkey

    

226,443

  
Total Common Stocks
(Cost: $8,778,611)
    

9,914,264

  

Preferred Stocks — 9.8%

BRAZIL — 9.8%

 

Banco Bradesco SA Preference Shares

  

8,169

   

83,312

  
Cia Brasileira de Distribuicao
Preference Shares
  

1,889

   

35,758

  
Itau Unibanco Holding SA
Preference Shares
  

23,026

   

274,866

  
Itausa — Investimentos Itau SA
Preference Shares
  

43,535

   

130,264

  

Petroleo Brasileiro SA Preference Shares(a)

  

55,581

   

253,664

  

Telefonica Brasil SA Preference Shares

  

5,037

   

74,168

  

Vale SA Preference Shares

  

27,485

   

244,209

  

Total Brazil

    

1,096,241

  
Total Preferred Stocks
(Cost: $681,212)
    

1,096,241

  
Total Investments
(Cost: $9,459,823)
    

11,010,505

  

Other Assets & Liabilities, Net

    

198,464

  

Net Assets

    

11,208,969

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
51



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Core ex-China ETF

March 31, 2017

Notes to Portfolio of Investments

(a)  Non-income producing security.

Abbreviation Legend

ADR  American Depositary Receipts

NVDR  Non-Voting Depositary Receipts

PJSC  Private Joint Stock Company

Fair Value Measurements

The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund's assumptions about the information market participants would use in pricing an investment. An investment's level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset's or liability's fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

Fair value inputs are summarized in the three broad levels listed below:

>  Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.

>  Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

>  Level 3 — Valuations based on significant unobservable inputs (including the Fund's own assumptions and judgment in determining the fair value of investments).

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment's fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.

Under the direction of the Fund's Board of Trustees (the Board), the Investment Manager's Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.

The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendation of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.

For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
52



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Core ex-China ETF

March 31, 2017

Fair Value Measurements (continued)

and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2017:

Valuation Inputs

 Level 1
Quoted Prices in Active
Markets for Identical
Assets ($)
 Level 2
Other Significant
Observable Inputs ($)
 Level 3
Significant
Unobservable Inputs ($)
 

Total ($)

 

Common Stocks

 

Brazil

  

467,489

   

   

   

467,489

  

Chile

  

132,285

   

   

   

132,285

  

India

  

1,326,340

   

   

   

1,326,340

  

Indonesia

  

400,768

   

   

   

400,768

  

Malaysia

  

276,106

   

   

   

276,106

  

Mexico

  

769,260

   

   

   

769,260

  

Peru

  

80,379

   

   

   

80,379

  

Philippines

  

163,572

   

   

   

163,572

  

Poland

  

233,685

   

   

   

233,685

  

Russia

  

446,450

   

   

   

446,450

  

South Africa

  

1,054,036

   

   

   

1,054,036

  

South Korea

  

2,252,918

   

   

   

2,252,918

  

Taiwan

  

1,632,610

   

   

   

1,632,610

  

Thailand

  

451,923

   

   

   

451,923

  

Turkey

  

226,443

   

   

   

226,443

  

Total Common Stocks

  

9,914,264

   

   

   

9,914,264

  

Preferred Stocks

 

Brazil

  

1,096,241

   

   

   

1,096,241

  

Total Preferred Stocks

  

1,096,241

   

   

   

1,096,241

  

Total Investments

  

11,010,505

   

   

   

11,010,505

  

See the Portfolio of Investments for all investment classifications not indicated in the table.

There were no transfers of financial assets between levels during the period.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
53



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS

Columbia EM Quality Dividend ETF

March 31, 2017

(Percentages represent value of investments compared to net assets)

Common Stocks — 95.4%

Issuer

 

Shares

 

Value ($)

 

BRAZIL — 14.3%

 

Ambev SA

  

47,289

   

271,674

  
BM&FBovespa SA — Bolsa de Valores
Mercadorias e Futuros
  

43,219

   

262,585

  
BRF SA  

23,006

   

279,772

  

Itausa — Investimentos Itau SA(a)

  

1,613

   

4,826

  

JBS SA

  

74,755

   

240,397

  

Kroton Educacional SA

  

63,210

   

264,391

  

Lojas Renner SA

  

31,339

   

274,406

  

WEG SA

  

49,913

   

273,543

  

Total Brazil

    

1,871,594

  

CHILE — 2.0%

 

Aguas Andinas SA Class A

  

451,565

   

262,378

  

HONG KONG — 6.1%

 

CLP Holdings, Ltd.

  

25,291

   

264,414

  

Hong Kong & China Gas Co., Ltd.

  

133,584

   

267,117

  

Hong Kong Exchanges & Clearing, Ltd.

  

10,382

   

261,303

  

Total Hong Kong

    

792,834

  

INDONESIA — 7.9%

 

PT Bank Rakyat Indonesia Persero Tbk

  

265,994

   

258,998

  

PT Hanjaya Mandala Sampoerna Tbk

  

871,003

   

254,918

  

PT Surya Citra Media Tbk

  

1,285,885

   

260,545

  
PT Telekomunikasi Indonesia
Persero Tbk
  

858,563

   

266,096

  

Total Indonesia

    

1,040,557

  

KENYA — 1.9%

 

Safaricom, Ltd.

  

1,460,094

   

255,286

  

MALAYSIA — 10.3%

 

AirAsia Bhd

  

403,500

   

286,293

  

Axiata Group Bhd

  

233,800

   

267,321

  

Maxis Bhd

  

182,400

   

265,429

  

Petronas Chemicals Group Bhd

  

154,700

   

269,165

  

Public Bank Bhd

  

58,200

   

261,706

  

Total Malaysia

    

1,349,914

  

PHILIPPINES — 2.0%

 

Aboitiz Power Corp.

  

309,400

   

257,448

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

SOUTH AFRICA — 8.8%

 

Netcare, Ltd.

  

107,376

   

205,002

  

Sasol, Ltd.

  

9,129

   

265,923

  

Standard Bank Group, Ltd.

  

20,634

   

221,209

  

Truworths International, Ltd.

  

35,334

   

228,230

  

Woolworths Holdings, Ltd.

  

44,667

   

232,883

  

Total South Africa

    

1,153,247

  

TAIWAN — 18.0%

 

Cathay Financial Holding Co., Ltd.

  

157,909

   

253,445

  

Chunghwa Telecom Co., Ltd.

  

76,696

   

260,351

  

Formosa Plastics Corp.

  

86,260

   

257,280

  

Hon Hai Precision Industry Co., Ltd.

  

87,608

   

262,745

  

Nan Ya Plastics Corp.

  

111,987

   

265,366

  

Pegatron Corp.

  

91,150

   

269,762

  

Taiwan Mobile Co., Ltd.

  

72,041

   

264,730

  
Taiwan Semiconductor Manufacturing
Co., Ltd.
  

41,147

   

256,300

  

Uni-President Enterprises Corp.

  

138,128

   

259,026

  

Total Taiwan

    

2,349,005

  

THAILAND — 18.1%

 

Advanced Info Service PCL NVDR

  

51,400

   

266,255

  

Airports of Thailand PCL NVDR

  

226,900

   

259,173

  

Berli Jucker PCL NVDR

  

192,100

   

259,953

  
CP ALL PCL NVDR  

153,200

   

263,043

  

Home Product Center PCL NVDR

  

931,000

   

261,452

  

Intouch Holdings PCL NVDR

  

165,000

   

267,697

  

Robinson Department Store PCL NVDR(a)

  

140,500

   

261,681

  

Thai Beverage PCL

  

392,700

   

264,180

  

Thai Union Group PCL NVDR

  

424,200

   

264,180

  

Total Thailand

    

2,367,614

  

TURKEY — 4.0%

 

KOC Holding AS

  

61,242

   

258,142

  

Turkiye Sise ve Cam Fabrikalari AS

  

227,911

   

260,978

  

Total Turkey

    

519,120

  

UNITED ARAB EMIRATES — 2.0%

 

Emaar Properties PJSC

  

130,823

   

260,007

  
Total Common Stocks
(Cost: $12,461,218)
    

12,479,004

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
54



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Quality Dividend ETF

March 31, 2017

Preferred Stocks — 4.0%

Issuer

 

Shares

 

Value ($)

 

BRAZIL — 4.0%

 

Banco Bradesco SA Preference Shares

  

26,194

   

267,142

  
Itausa — Investimentos Itau SA
Preference Shares
  

84,826

   

253,814

  

Total Brazil

    

520,956

  
Total Preferred Stocks
(Cost: $334,291)
    

520,956

  
Total Investments
(Cost: $12,795,509)
    

12,999,960

  

Other Assets & Liabilities, Net

    

80,090

  

Net Assets

    

13,080,050

  

 

Notes to Portfolio of Investments

(a)  Non-income producing security.

Abbreviation Legend

NVDR  Non-Voting Depositary Receipts

PJSC  Private Joint Stock Company

Fair Value Measurements

The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund's assumptions about the information market participants would use in pricing an investment. An investment's level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset's or liability's fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

Fair value inputs are summarized in the three broad levels listed below:

>  Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.

>  Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

>  Level 3 — Valuations based on significant unobservable inputs (including the Fund's own assumptions and judgment in determining the fair value of investments).

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment's fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
55



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Quality Dividend ETF

March 31, 2017

Fair Value Measurements (continued)

used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.

Under the direction of the Fund's Board of Trustees (the Board), the Investment Manager's Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.

The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendation of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.

For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2017:

Valuation Inputs

 Level 1
Quoted Prices in Active
Markets for Identical
Assets ($)
 Level 2
Other Significant
Observable Inputs ($)
 Level 3
Significant
Unobservable Inputs ($)
 

Total ($)

 

Common Stocks

 

Brazil

  

1,871,594

   

   

   

1,871,594

  

Chile

  

262,378

   

   

   

262,378

  

Hong Kong

  

792,834

   

   

   

792,834

  

Indonesia

  

1,040,557

   

   

   

1,040,557

  

Kenya

  

255,286

   

   

   

255,286

  

Malaysia

  

1,349,914

   

   

   

1,349,914

  

Philippines

  

257,448

   

   

   

257,448

  

South Africa

  

1,153,247

   

   

   

1,153,247

  

Taiwan

  

2,349,005

   

   

   

2,349,005

  

Thailand

  

2,367,614

   

   

   

2,367,614

  

Turkey

  

519,120

   

   

   

519,120

  

United Arab Emirates

  

260,007

   

   

   

260,007

  

Total Common Stocks

  

12,479,004

   

   

   

12,479,004

  

Preferred Stocks

 

Brazil

  

520,956

   

   

   

520,956

  

Total Preferred Stocks

  

520,956

   

   

   

520,956

  

Total Investments

  

12,999,960

   

   

   

12,999,960

  

See the Portfolio of Investments for all investment classifications not indicated in the table.

There were no transfers of financial assets between levels during the period.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
56




COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated)

Columbia EM Strategic Opportunities ETF

March 31, 2017

(Percentages represent value of investments compared to net assets)

Common Stocks — 99.5%

Issuer

 

Shares

 

Value ($)

 

BRAZIL — 8.2%

 

Ambev SA ADR

  

66,337

   

382,101

  
BRF SA ADR  

10,175

   

124,644

  

Telefonica Brasil SA ADR

  

7,435

   

110,410

  

Total Brazil

    

617,155

  

CHINA — 25.2%

 

Belle International Holdings, Ltd.

  

94,770

   

61,582

  

BYD Co., Ltd. Class H

  

9,573

   

53,091

  

China Mengniu Dairy Co., Ltd.

  

45,775

   

94,831

  

China Mobile, Ltd.

  

32,603

   

356,802

  

China Telecom Corp., Ltd. Class H

  

249,059

   

121,461

  

China Unicom Hong Kong, Ltd.

  

108,389

   

145,048

  

Ctrip.com International, Ltd. ADR(a)

  

5,509

   

270,767

  

Guangdong Investment, Ltd.

  

49,972

   

71,246

  

Hengan International Group Co., Ltd.

  

12,868

   

95,705

  

JD.com, Inc. ADR(a)

  

11,416

   

355,152

  
New Oriental Education & Technology
Group, Inc. ADR(a)
  

1,852

   

111,824

  

Sinopharm Group Co., Ltd. Class H

  

21,326

   

98,926

  

Vipshop Holdings, Ltd. ADR(a)

  

5,115

   

68,234

  

Total China

    

1,904,669

  

HONG KONG — 1.3%

 

WH Group, Ltd.(b)

  

117,932

   

101,672

  

INDIA — 15.1%

 

Bharti Airtel, Ltd.

  

23,682

   

127,665

  

Hindustan Unilever, Ltd.

  

11,968

   

168,042

  

ITC, Ltd.

  

48,784

   

210,582

  

Lupin, Ltd.

  

3,972

   

88,401

  

Mahindra & Mahindra, Ltd.

  

4,338

   

85,972

  

NTPC, Ltd.

  

35,525

   

90,816

  

Sun Pharmaceutical Industries, Ltd.

  

19,382

   

205,401

  

Tata Motors, Ltd. ADR

  

2,824

   

100,676

  

Zee Entertainment Enterprises, Ltd.

  

7,804

   

64,363

  

Total India

    

1,141,918

  

INDONESIA — 6.1%

 

PT Astra International Tbk

  

288,577

   

186,783

  
PT Telekomunikasi Indonesia Persero
Tbk ADR
  

8,736

   

272,301

  

Total Indonesia

    

459,084

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

MALAYSIA — 3.7%

 

Axiata Group Bhd

  

58,000

   

66,316

  

IHH Healthcare Bhd

  

45,800

   

62,095

  

Tenaga Nasional Bhd

  

48,700

   

150,980

  

Total Malaysia

    

279,391

  

MEXICO — 13.0%

 

America Movil SAB de CV Class L ADR

  

21,302

   

301,849

  
Fomento Economico Mexicano SAB
de CV ADR
  

3,597

   

318,407

  

Grupo Televisa SAB ADR

  

6,823

   

176,989

  

Wal-Mart de Mexico SAB de CV

  

81,927

   

187,742

  

Total Mexico

    

984,987

  

RUSSIA — 3.7%

 

Magnit PJSC GDR

  

4,833

   

184,621

  

Mobile TeleSystems PJSC ADR

  

8,969

   

98,928

  

Total Russia

    

283,549

  

SOUTH AFRICA — 18.8%

 

Aspen Pharmacare Holdings, Ltd.

  

5,817

   

119,179

  

Mediclinic International PLC

  

6,353

   

56,467

  

Mr Price Group, Ltd.

  

3,650

   

43,526

  

MTN Group, Ltd.

  

28,414

   

258,526

  

Naspers, Ltd. N Shares

  

2,189

   

377,927

  

Shoprite Holdings, Ltd.

  

6,336

   

91,481

  

Steinhoff International Holdings NV

  

46,549

   

222,769

  

Tiger Brands, Ltd.

  

3,056

   

91,267

  

Vodacom Group, Ltd.

  

9,082

   

102,953

  

Woolworths Holdings, Ltd.

  

11,780

   

61,418

  

Total South Africa

    

1,425,513

  

THAILAND — 4.4%

 

Advanced Info Service PCL

  

19,200

   

99,457

  
CP ALL PCL NVDR  

73,600

   

126,370

  

Thai Beverage PCL

  

155,700

   

104,744

  

Total Thailand

    

330,571

  
Total Investments
(Cost: $8,163,660)
    

7,528,509

  

Other Assets & Liabilities, Net

    

34,090

  

Net Assets

    

7,562,599

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
57



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia EM Strategic Opportunities ETF

March 31, 2017

Notes to Consolidated Portfolio of Investments

(a)  Non-income producing security.

(b)  Represents privately placed and other securities and instruments exempt from SEC registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund's Board of Trustees. At March 31, 2017, the value of this security amounted to $101,672 or 1.34% of net assets.

Abbreviation Legend

ADR  American Depositary Receipts

GDR  Global Depositary Receipts

NVDR  Non-Voting Depositary Receipts

PJSC  Private Joint Stock Company

Fair Value Measurements

The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund's assumptions about the information market participants would use in pricing an investment. An investment's level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset's or liability's fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

Fair value inputs are summarized in the three broad levels listed below:

>  Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.

>  Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

>  Level 3 — Valuations based on significant unobservable inputs (including the Fund's own assumptions and judgment in determining the fair value of investments).

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment's fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.

Under the direction of the Fund's Board of Trustees (the Board), the Investment Manager's Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.

The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendation of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
58



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia EM Strategic Opportunities ETF

March 31, 2017

Fair Value Measurements (continued)

back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.

For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2017:

Valuation Inputs

 Level 1
Quoted Prices in Active
Markets for Identical
Assets ($)
 Level 2
Other Significant
Observable Inputs ($)
 Level 3
Significant
Unobservable Inputs ($)
 

Total ($)

 

Common Stocks

 

Brazil

  

617,155

   

   

   

617,155

  

China

  

1,904,669

   

   

   

1,904,669

  

Hong Kong

  

101,672

   

   

   

101,672

  

India

  

1,141,918

   

   

   

1,141,918

  

Indonesia

  

459,084

   

   

   

459,084

  

Malaysia

  

279,391

   

   

   

279,391

  

Mexico

  

984,987

   

   

   

984,987

  

Russia

  

283,549

   

   

   

283,549

  

South Africa

  

1,425,513

   

   

   

1,425,513

  

Thailand

  

330,571

   

   

   

330,571

  

Total Common Stocks

  

7,528,509

   

   

   

7,528,509

  

Total Investments

  

7,528,509

   

   

   

7,528,509

  

See the Consolidated Portfolio of Investments for all investment classifications not indicated in the table.

There were no transfers of financial assets between levels during the period.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
59



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated)

Columbia Emerging Markets Consumer ETF

March 31, 2017

(Percentages represent value of investments compared to net assets)

Common Stocks — 99.7%

Issuer

 

Shares

 

Value ($)

 

BRAZIL — 10.5%

 

Ambev SA ADR

  

7,103,632

   

40,916,920

  
BRF SA ADR  

1,593,926

   

19,525,594

  

Lojas Renner SA

  

1,990,252

   

17,426,733

  

Total Brazil

    

77,869,247

  

CHILE — 3.0%

 

S.A.C.I. Falabella

  

2,679,710

   

22,461,879

  

CHINA — 21.0%

 

Belle International Holdings, Ltd.

  

22,004,895

   

14,299,005

  

China Mengniu Dairy Co., Ltd.

  

8,263,372

   

17,118,997

  

Ctrip.com International Ltd. ADR(a)

  

698,391

   

34,325,918

  

Hengan International Group Co., Ltd.

  

2,156,981

   

16,042,399

  

JD.com, Inc. ADR(a)

  

1,399,035

   

43,523,979

  

Vipshop Holdings, Ltd. ADR(a)

  

1,161,816

   

15,498,625

  

Want Want China Holdings, Ltd.

  

21,517,007

   

14,895,644

  

Total China

    

155,704,567

  

INDIA — 14.3%

 

Hindustan Unilever, Ltd.

  

1,726,133

   

24,236,571

  

ITC, Ltd.

  

6,422,290

   

27,722,613

  

Maruti Suzuki India, Ltd.

  

276,095

   

25,577,958

  

Tata Motors, Ltd. ADR

  

789,837

   

28,157,689

  

Total India

    

105,694,831

  

INDONESIA — 3.7%

 

PT Astra International Tbk

  

42,766,749

   

27,681,003

  

MALAYSIA — 2.0%

 

Genting Bhd

  

6,861,262

   

14,868,264

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

MEXICO — 11.8%

 
Fomento Economico Mexicano SAB de
CV Series UBD
  

3,870,983

   

34,126,203

  

Grupo Televisa SAB Series CPO

  

5,200,272

   

26,771,496

  

Wal-Mart de Mexico SAB de CV

  

11,575,168

   

26,525,447

  

Total Mexico

    

87,423,146

  

PHILIPPINES — 2.6%

 

SM Investments Corp.

  

1,382,132

   

19,199,721

  

RUSSIA — 3.4%

 

Magnit PJSC GDR

  

661,148

   

25,255,854

  

SOUTH AFRICA — 22.2%

 

Mr Price Group, Ltd.

  

968,834

   

11,553,393

  

Naspers, Ltd. N Shares

  

438,738

   

75,747,439

  

Shoprite Holdings, Ltd.

  

1,130,783

   

16,326,622

  

Steinhoff International Holdings NV

  

6,320,198

   

30,246,451

  

Tiger Brands, Ltd.

  

544,568

   

16,263,429

  

Woolworths Holdings, Ltd.

  

2,760,473

   

14,392,443

  

Total South Africa

    

164,529,777

  

THAILAND — 5.2%

 
CP ALL PCL  

11,776,083

   

20,219,393

  

Thai Beverage PCL

  

26,909,200

   

18,102,518

  

Total Thailand

    

38,321,911

  
Total Investments
(Cost: $720,433,577)
    

739,010,200

  

Other Assets & Liabilities, Net

    

2,160,790

  

Net Assets

    

741,170,990

  

Notes to Consolidated Portfolio of Investments

(a)  Non-income producing security.

Abbreviation Legend

ADR  American Depositary Receipts

GDR  Global Depositary Receipts

PJSC  Private Joint Stock Company

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
60



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia Emerging Markets Consumer ETF

March 31, 2017

Fair Value Measurements

The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund's assumptions about the information market participants would use in pricing an investment. An investment's level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset's or liability's fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

Fair value inputs are summarized in the three broad levels listed below:

>  Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.

>  Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

>  Level 3 — Valuations based on significant unobservable inputs (including the Fund's own assumptions and judgment in determining the fair value of investments).

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment's fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.

Under the direction of the Fund's Board of Trustees (the Board), the Investment Manager's Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.

The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendation of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.

For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
61



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia Emerging Markets Consumer ETF

March 31, 2017

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2017:

Valuation Inputs

 Level 1
Quoted Prices in Active
Markets for Identical
Assets ($)
 Level 2
Other Significant
Observable Inputs ($)
 Level 3
Significant
Unobservable Inputs ($)
 

Total ($)

 

Common Stocks

 

Brazil

  

77,869,247

   

   

   

77,869,247

  

Chile

  

22,461,879

   

   

   

22,461,879

  

China

  

155,704,567

   

   

   

155,704,567

  

India

  

105,694,831

   

   

   

105,694,831

  

Indonesia

  

27,681,003

   

   

   

27,681,003

  

Malaysia

  

14,868,264

   

   

   

14,868,264

  

Mexico

  

87,423,146

   

   

   

87,423,146

  

Philippines

  

19,199,721

   

   

   

19,199,721

  

Russia

  

25,255,854

   

   

   

25,255,854

  

South Africa

  

164,529,777

   

   

   

164,529,777

  

Thailand

  

38,321,911

   

   

   

38,321,911

  

Total Common Stocks

  

739,010,200

   

   

   

739,010,200

  

Total Investments

  

739,010,200

   

   

   

739,010,200

  

See the Consolidated Portfolio of Investments for all investment classifications not indicated in the table.

There were no transfers of financial assets between levels during the period.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
62



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated)

Columbia Emerging Markets Core ETF

March 31, 2017

(Percentages represent value of investments compared to net assets)

Common Stocks — 97.1%

Issuer

 

Shares

 

Value ($)

 

BRAZIL — 6.2%

 

Ambev SA ADR

  

10,819

   

62,317

  
BRF SA ADR  

4,608

   

56,448

  
CPFL Energia SA ADR  

3,640

   

59,659

  

Petroleo Brasileiro SA ADR(a)

  

6,242

   

60,485

  

Vale SA ADR

  

6,176

   

58,672

  

Total Brazil

    

297,581

  

CHILE — 1.3%

 

S.A.C.I. Falabella

  

7,270

   

60,939

  

CHINA — 13.6%

 

AAC Technologies Holdings, Inc.

  

1,762

   

20,621

  

Alibaba Group Holding, Ltd. ADR(a)

  

179

   

19,302

  

Baidu, Inc. ADR(a)

  

106

   

18,287

  

Bank of China, Ltd. Class H

  

37,359

   

18,556

  

Belle International Holdings, Ltd.

  

27,224

   

17,690

  
China Communications Construction
Co., Ltd. Class H
  

13,000

   

18,334

  

China Construction Bank Corp. Class H

  

23,398

   

18,817

  

China Everbright International, Ltd.

  

12,866

   

17,317

  

China Life Insurance Co., Ltd. ADR

  

1,156

   

17,721

  

China Mobile, Ltd. ADR

  

326

   

18,005

  

China Overseas Land & Investment, Ltd.

  

5,460

   

15,597

  
China Pacific Insurance Group Co., Ltd.
Class H
  

4,912

   

17,729

  
China Railway Signal & Communication
Corp., Ltd. Class H(b)
  

22,950

   

18,486

  

China Resources Land, Ltd.

  

6,804

   

18,386

  

China Unicom Hong Kong, Ltd. ADR

  

1,405

   

18,925

  

CITIC, Ltd.

  

12,921

   

18,422

  

CNOOC, Ltd.

  

15,712

   

18,762

  

Ctrip.com International, Ltd. ADR(a)

  

390

   

19,168

  

Guangdong Investment, Ltd.

  

14,000

   

19,960

  

Haitong Securities Co., Ltd. Class H

  

10,168

   

17,192

  

Hanergy Thin Film Power Group, Ltd.(a)(c)

  

60,421

   

603

  

Hengan International Group Co., Ltd.

  

1,972

   

14,667

  
Industrial and Commercial Bank of
China, Ltd. Class H
  

28,321

   

18,513

  

JD.com, Inc. ADR(a)

  

589

   

18,324

  

Lenovo Group, Ltd.

  

30,216

   

19,907

  

NetEase, Inc. ADR

  

63

   

17,892

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 
New Oriental Education & Technology
Group, Inc. ADR(a)
  

366

   

22,099

  

PICC Property & Casualty Co., Ltd. Class H

  

12,364

   

19,059

  
Ping An Insurance Group Co. of China,
Ltd. Class H
  

3,624

   

20,285

  
Semiconductor Manufacturing
International Corp.(a)
  

13,827

   

17,116

  
Shenzhou International Group
Holdings, Ltd.
  

3,000

   

18,935

  

Sinopharm Group Co., Ltd. Class H

  

4,075

   

18,903

  

Tencent Holdings, Ltd.

  

615

   

17,631

  

Want Want China Holdings, Ltd.

  

28,150

   

19,487

  

Xinyi Solar Holdings, Ltd.(a)

  

55,066

   

17,572

  

ZTE Corp. Class H

  

11,109

   

20,384

  

Total China

    

648,654

  

HONG KONG — 1.3%

 

Alibaba Pictures Group, Ltd.(a)

  

112,521

   

20,415

  

GCL-Poly Energy Holdings, Ltd.(a)

  

139,426

   

18,479

  

Haier Electronics Group Co., Ltd.

  

9,292

   

21,282

  

Total Hong Kong

    

60,176

  

INDIA — 15.5%

 
Adani Ports and Special Economic
Zone, Ltd.(a)
  

9,529

   

49,835

  

Dr. Reddy's Laboratories, Ltd.

  

1,025

   

41,552

  

Hindustan Unilever, Ltd.

  

3,356

   

47,122

  

Housing Development Finance Corp., Ltd.

  

2,138

   

49,457

  

Infosys, Ltd. ADR

  

2,817

   

44,509

  

ITC, Ltd.

  

11,070

   

47,785

  

Larsen & Toubro, Ltd.

  

1,981

   

48,046

  

Lupin, Ltd.

  

2,019

   

44,935

  

Mahindra & Mahindra, Ltd.

  

2,244

   

44,472

  

Maruti Suzuki India, Ltd.

  

498

   

46,136

  

NTPC, Ltd.

  

18,595

   

47,536

  

Reliance Industries, Ltd.(a)

  

2,263

   

46,034

  

Sun Pharmaceutical Industries, Ltd.

  

4,295

   

45,516

  

Tata Consultancy Services, Ltd.

  

1,163

   

43,554

  

Tata Motors, Ltd. ADR

  

1,239

   

44,170

  

Zee Entertainment Enterprises, Ltd.

  

5,694

   

46,961

  

Total India

    

737,620

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
63



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia Emerging Markets Core ETF

March 31, 2017

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

INDONESIA — 3.8%

 

PT Astra International Tbk

  

92,814

   

60,074

  
PT Telekomunikasi Indonesia
Persero Tbk ADR
  

1,970

   

61,405

  

PT Unilever Indonesia Tbk

  

18,329

   

59,593

  

Total Indonesia

    

181,072

  

MALAYSIA — 6.2%

 

Genting Bhd

  

27,800

   

60,242

  

Genting Malaysia Bhd

  

48,200

   

59,358

  

IHH Healthcare Bhd

  

43,400

   

58,841

  

Sime Darby Bhd

  

28,600

   

59,973

  

Tenaga Nasional Bhd

�� 

19,000

   

58,904

  

Total Malaysia

    

297,318

  

MEXICO — 15.4%

 

Alfa SAB de CV Class A

  

43,045

   

62,622

  

America Movil SAB de CV Class L ADR

  

4,259

   

60,350

  

Cemex SAB de CV Series CPO(a)

  

66,830

   

60,144

  

Fibra Uno Administracion SA de CV

  

39,076

   

66,558

  
Fomento Economico Mexicano SAB
de CV ADR
  

663

   

58,689

  
Grupo Aeroportuario del Pacifico SAB
de CV Class B
  

6,514

   

62,988

  
Grupo Aeroportuario del Sureste SAB
de CV Class B
  

3,544

   

61,166

  

Grupo Mexico SAB de CV Series B

  

19,158

   

57,248

  

Grupo Televisa SAB ADR

  

2,229

   

57,820

  
Kimberly-Clark de Mexico SAB de CV
Class A
  

29,307

   

63,223

  
Megacable Holdings SAB de CV
Series CPO
  

15,310

   

58,983

  

Wal-Mart de Mexico SAB de CV

  

29,202

   

66,919

  

Total Mexico

    

736,710

  

PERU — 1.2%

 

Southern Copper Corp.

  

1,620

   

58,142

  

PHILIPPINES — 4.9%

 

Ayala Land, Inc.

  

81,700

   

53,815

  

Jollibee Foods Corp.

  

15,180

   

59,752

  

SM Investments Corp.

  

4,490

   

62,372

  

SM Prime Holdings, Inc.

  

101,300

   

57,136

  

Total Philippines

    

233,075

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

POLAND — 2.5%

 

Cyfrowy Polsat SA(a)

  

10,038

   

61,313

  

Powszechny Zaklad Ubezpieczen SA

  

6,570

   

57,708

  

Total Poland

    

119,021

  

RUSSIA — 5.0%

 

Gazprom PJSC ADR

  

1,483

   

6,666

  

Gazprom PJSC ADR

  

11,496

   

51,387

  

LUKOIL PJSC ADR

  

55

   

2,919

  

LUKOIL PJSC ADR

  

1,070

   

56,667

  

Magnit PJSC GDR

  

1,598

   

61,044

  

MMC Norilsk Nickel PJSC ADR

  

3,103

   

48,779

  

MMC Norilsk Nickel PJSC ADR

  

741

   

11,626

  

Total Russia

    

239,088

  

SOUTH AFRICA — 14.1%

 

Aspen Pharmacare Holdings, Ltd.

  

2,568

   

52,613

  

FirstRand, Ltd.

  

13,762

   

47,581

  

Mediclinic International PLC

  

6,021

   

53,516

  

MTN Group, Ltd.

  

5,739

   

52,217

  

Naspers, Ltd. N Shares

  

329

   

56,801

  

Netcare, Ltd.

  

23,044

   

43,996

  

Remgro, Ltd.

  

3,148

   

48,384

  

Sanlam, Ltd.

  

10,302

   

51,761

  

Sasol, Ltd. ADR

  

1,860

   

54,684

  

Shoprite Holdings, Ltd.

  

3,584

   

51,747

  

Steinhoff International Holdings NV

  

11,284

   

54,002

  

Tiger Brands, Ltd.

  

1,723

   

51,457

  

Woolworths Holdings, Ltd.

  

10,123

   

52,779

  

Total South Africa

    

671,538

  

THAILAND — 3.7%

 

Airports of Thailand PCL NVDR

  

51,100

   

58,368

  
CP ALL PCL NVDR  

34,800

   

59,751

  

Siam Cement PCL NVDR

  

3,800

   

59,716

  

Total Thailand

    

177,835

  

TURKEY — 1.2%

 

Haci Omer Sabanci Holding AS

  

21,695

   

59,575

  

UNITED ARAB EMIRATES — 1.2%

 

Emaar Properties PJSC

  

29,185

   

58,004

  
Total Common Stocks
(Cost $4,448,744)
    

4,636,348

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
64



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia Emerging Markets Core ETF

March 31, 2017

Preferred Stocks — 2.5%

Issuer

 

Shares

 

Value ($)

 

BRAZIL — 2.5%

 
Banco Bradesco SA Preference
Shares ADR
  

5,728

   

58,655

  
Itau Unibanco Holding SA Preference
Shares ADR
  

4,754

   

57,381

  

Total Brazil

    

116,036

  
Total Preferred Stocks
(Cost $81,381)
    

116,036

  
Total Investments
(Cost: $4,530,125)
    

4,752,384

  

Other Assets & Liabilities, Net

    

19,915

  

Net Assets

    

4,772,299

  

 

Notes to Consolidated Portfolio of Investments

(a)  Non-income producing security.

(b)  Represents privately placed and other securities and instruments exempt from SEC registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund's Board of Trustees. At March 31, 2017, the value of this security amounted to $18,486, or 0.39% of net assets.

(c)  Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At March 31, 2017, the value of this security amounted to $603, which represents less than 0.01% of net assets.

Abbreviation Legend

ADR  American Depositary Receipts

GDR  Global Depositary Receipts

NVDR  Non-Voting Depositary Receipts

PJSC  Private Joint Stock Company

Fair Value Measurements

The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund's assumptions about the information market participants would use in pricing an investment. An investment's level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset's or liability's fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

Fair value inputs are summarized in the three broad levels listed below:

>  Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.

>  Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

>  Level 3 — Valuations based on significant unobservable inputs (including the Fund's own assumptions and judgment in determining the fair value of investments).

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
65



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia Emerging Markets Core ETF

March 31, 2017

Fair Value Measurements (continued)

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment's fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.

Under the direction of the Fund's Board of Trustees (the Board), the Investment Manager's Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.

The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendation of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.

For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2017:

Valuation Inputs

 Level 1
Quoted Prices in Active
Markets for Identical
Assets ($)
 Level 2
Other Significant
Observable Inputs ($)
 Level 3
Significant
Unobservable Inputs ($)
 

Total ($)

 

Common Stocks

 

Brazil

  

297,581

   

   

   

297,581

  

Chile

  

60,939

   

   

   

60,939

  

China

  

648,051

   

   

603

   

648,654

  

Hong Kong

  

60,176

   

   

   

60,176

  

India

  

737,620

   

   

   

737,620

  

Indonesia

  

181,072

   

   

   

181,072

  

Malaysia

  

297,318

   

   

   

297,318

  

Mexico

  

736,710

   

   

   

736,710

  

Peru

  

58,142

   

   

   

58,142

  

Philippines

  

233,075

   

   

   

233,075

  

Poland

  

119,021

   

   

   

119,021

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
66



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia Emerging Markets Core ETF

March 31, 2017

Fair Value Measurements (continued)

Valuation Inputs

 Level 1
Quoted Prices in Active
Markets for Identical
Assets ($)
 Level 2
Other Significant
Observable Inputs ($)
 Level 3
Significant
Unobservable Inputs ($)
 

Total ($)

 

Russia

  

239,088

   

   

   

239,088

  

South Africa

  

671,538

   

   

   

671,538

  

Thailand

  

177,835

   

   

   

177,835

  

Turkey

  

59,575

   

   

   

59,575

  

United Arab Emirates

  

58,004

   

   

   

58,004

  

Total Common Stocks

  

4,635,745

   

   

603

   

4,636,348

  

Preferred Stocks

 

Brazil

  

116,036

   

   

   

116,036

  

Total Preferred Stocks

  

116,036

   

   

   

116,036

  

Total Investments

  

4,751,781

   

   

603

   

4,752,384

  

See the Consolidated Portfolio of Investments for all investment classifications not indicated in the table.

Financial assets were transferred from Level 3 to Level 1 as the market for these assets was deemed to be active during the period and fair values were consequently obtained using quoted prices for identical assets rather than being based upon other observable market inputs as of year-end.

The following table shows transfers between Level 1 and Level 3 of the fair value hierarchy:

Transfers In

 

Transfers Out

 
Level 1 ($) 

Level 3 ($)

 

Level 1 ($)

 

Level 3 ($)

 
 15,914   

   

   

15,914

  

Transfers between Level 1 and Level 3 are determined based on the fair value at the beginning of the period for security positions held throughout the period.

There were no transfers of financial assets between Levels 1 and 2 during the period.

There were no transfers of financial assets between Levels 2 and 3 during the period.

The Fund's assets assigned to the Level 3 category are valued utilizing the valuation technique deemed the most appropriate in the circumstances. Certain common stocks classified as Level 3 securities are valued using the market approach. To determine fair value for these securities, management considered various factors which may have included, but were not limited to, the halt price of the security, discount rates observed in the market for similar assets as well as the movement in certain foreign or domestic market indices. Significant increases (decreases) to any of these inputs would result in a significantly lower (higher) fair value measurement. Generally, a change in observable yields on comparable securities would result in a directionally similar change to discount rates.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
67




COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated)

Columbia India Consumer ETF

March 31, 2017

(Percentages represent value of investments compared to net assets)

Common Stocks — 99.5%

Issuer

 

Shares

 

Value ($)

 

CONSUMER GOODS — 80.8%

 

Aditya Birla Fashion and Retail, Ltd.(a)

  

973,590

   

2,306,719

  

Bajaj Auto, Ltd.

  

94,047

   

4,063,204

  

Bosch, Ltd.

  

11,875

   

4,160,639

  

Britannia Industries Ltd.

  

83,584

   

4,342,996

  

Colgate-Palmolive India, Ltd.

  

188,382

   

2,888,031

  

Dabur India, Ltd.

  

796,566

   

3,402,288

  

Emami, Ltd.

  

88,956

   

1,458,078

  

Exide Industries, Ltd.

  

598,510

   

2,067,848

  
GlaxoSmithKline Consumer
Healthcare, Ltd.
  

16,470

   

1,307,772

  

Godrej Consumer Products, Ltd.

  

163,256

   

4,202,142

  

Hero MotoCorp, Ltd.

  

81,296

   

4,033,751

  

Hindustan Unilever, Ltd.

  

308,361

   

4,329,686

  

Marico, Ltd.

  

734,486

   

3,335,077

  

Maruti Suzuki India, Ltd.

  

45,288

   

4,195,565

  

Motherson Sumi Systems, Ltd.(a)

  

737,201

   

4,222,146

  

MRF, Ltd.

  

3,533

   

3,316,425

  

Nestle India, Ltd.

  

43,899

   

4,516,422

  

Page Industries, Ltd.

  

5,201

   

1,171,060

  
Procter & Gamble Hygiene & Health
Care, Ltd.
  

13,552

   

1,584,489

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Rajesh Exports, Ltd.

  

77,272

   

721,074

  

Titan Co., Ltd.(a)

  

452,653

   

3,225,767

  

TVS Motor Co., Ltd.

  

256,803

   

1,703,715

  

United Breweries, Ltd.

  

93,718

   

1,112,464

  

United Spirits, Ltd.(a)

  

80,357

   

2,691,189

  

Whirlpool of India, Ltd.(a)

  

44,833

   

843,497

  

Total

    

71,202,044

  

CONSUMER SERVICES — 6.2%

 

Sun TV Network, Ltd.

  

94,170

   

1,146,616

  

Zee Entertainment Enterprises, Ltd.

  

525,036

   

4,330,223

  

Total

    

5,476,839

  

INDUSTRIALS — 12.5%

 

Bharat Forge, Ltd.

  

171,226

   

2,747,896

  

Mahindra & Mahindra, Ltd.

  

206,024

   

4,083,041

  

Tata Motors, Ltd.

  

574,803

   

4,123,693

  

Total

    

10,954,630

  
Total Investments
(Cost: $71,231,411)
    

87,633,513

  

Other Assets & Liabilities, Net

    

467,992

  

Net Assets

    

88,101,505

  

Notes to Consolidated Portfolio of Investments

(a)  Non-income producing security.

Fair Value Measurements

The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund's assumptions about the information market participants would use in pricing an investment. An investment's level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset's or liability's fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

Fair value inputs are summarized in the three broad levels listed below:

>  Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.

>  Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

>  Level 3 — Valuations based on significant unobservable inputs (including the Fund's own assumptions and judgment in determining the fair value of investments).

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
68



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Consumer ETF

March 31, 2017

Fair Value Measurements (continued)

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment's fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.

Under the direction of the Fund's Board of Trustees (the Board), the Investment Manager's Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.

The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendation of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.

For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2017:

Valuation Inputs

 Level 1
Quoted Prices in Active
Markets for Identical
Assets ($)
 Level 2
Other Significant
Observable Inputs ($)
 Level 3
Significant
Unobservable Inputs ($)
 

Total ($)

 

Common Stocks

 

Consumer Goods

  

71,202,044

   

   

   

71,202,044

  

Consumer Services

  

5,476,839

   

   

   

5,476,839

  

Industrials

  

10,954,630

   

   

   

10,954,630

  

Total Common Stocks

  

87,633,513

   

   

   

87,633,513

  

Total Investments

  

87,633,513

   

   

   

87,633,513

  

See the Consolidated Portfolio of Investments for all investment classifications not indicated in the table.

There were no transfers of financial assets between levels during the period.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
69



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated)

Columbia India Infrastructure ETF

March 31, 2017

(Percentages represent value of investments compared to net assets)

Common Stocks — 99.5%

Issuer

 

Shares

 

Value ($)

 

BASIC MATERIALS — 14.1%

 

JSW Steel, Ltd.

  

641,880

   

1,860,350

  

NMDC, Ltd.

  

520,103

   

1,066,077

  

Vedanta, Ltd.

  

693,293

   

2,935,565

  

Total

    

5,861,992

  

CONSUMER GOODS — 5.2%

 

Aditya Birla Nuvo, Ltd.

  

36,621

   

856,351

  

Cummins India, Ltd.

  

89,135

   

1,303,291

  

Total

    

2,159,642

  

FINANCIALS — 1.6%

 

DLF, Ltd.(a)

  

293,855

   

672,697

  

INDUSTRIALS — 45.1%

 

ACC, Ltd.

  

61,248

   

1,363,944

  
Adani Ports and Special Economic
Zone, Ltd.(a)
  

450,181

   

2,354,377

  

Ambuja Cements, Ltd.

  

450,501

   

1,641,812

  

Ashok Leyland, Ltd.

  

902,989

   

1,175,756

  

Bharat Heavy Electricals, Ltd.

  

592,982

   

1,487,135

  

Container Corp. of India, Ltd.

  

55,267

   

1,084,062

  

Eicher Motors, Ltd.(a)

  

5,345

   

2,106,186

  

Havells India, Ltd.

  

135,610

   

972,671

  

Larsen & Toubro, Ltd.

  

80,740

   

1,958,226

  

NBCC India, Ltd.

  

59,022

   

156,383

  

Shree Cement, Ltd.

  

5,273

   

1,387,229

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Siemens, Ltd.

  

58,439

   

1,129,632

  

UltraTech Cement, Ltd.

  

30,994

   

1,901,953

  

Total

    

18,719,366

  

OIL & GAS — 5.7%

 

GAIL India, Ltd.

  

405,602

   

2,354,534

  

TELECOMMUNICATIONS — 13.0%

 

Bharti Airtel, Ltd.

  

380,439

   

2,050,861

  

Bharti Infratel, Ltd.

  

349,641

   

1,754,801

  

Idea Cellular, Ltd.

  

818,895

   

1,082,654

  

Tata Communications, Ltd.

  

46,714

   

519,440

  

Total

    

5,407,756

  

UTILITIES — 14.8%

 

JSW Energy, Ltd.

  

198,009

   

191,194

  

NTPC, Ltd.

  

771,658

   

1,972,668

  

Petronet LNG, Ltd.

  

196,818

   

1,221,948

  

Reliance Infrastructure, Ltd.

  

89,029

   

779,646

  

Reliance Power, Ltd.(a)

  

460,377

   

340,311

  

Tata Power Co., Ltd. (The)

  

1,186,865

   

1,651,394

  

Total

    

6,157,161

  
Total Investments
(Cost: $32,025,358)
    

41,333,148

  

Other Assets & Liabilities, Net

    

195,530

  

Net Assets

    

41,528,678

  

Notes to Consolidated Portfolio of Investments

(a)  Non-income producing security.

Fair Value Measurements

The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund's assumptions about the information market participants would use in pricing an investment. An investment's level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset's or liability's fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
70



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Infrastructure ETF

March 31, 2017

Fair Value Measurements (continued)

Fair value inputs are summarized in the three broad levels listed below:

>  Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.

>  Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

>  Level 3 — Valuations based on significant unobservable inputs (including the Fund's own assumptions and judgment in determining the fair value of investments).

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment's fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3. These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.

Under the direction of the Fund's Board of Trustees (the Board), the Investment Manager's Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.

The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendation of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.

For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
71



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Infrastructure ETF

March 31, 2017

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2017:

Valuation Inputs

 Level 1
Quoted Prices in Active
Markets for Identical
Assets ($)
 Level 2
Other Significant
Observable Inputs ($)
 Level 3
Significant
Unobservable Inputs ($)
 

Total ($)

 

Common Stocks

 

Basic Materials

  

5,861,992

   

   

   

5,861,992

  

Consumer Goods

  

2,159,642

   

   

   

2,159,642

  

Financials

  

672,697

   

   

   

672,697

  

Industrials

  

18,719,366

   

   

   

18,719,366

  

Oil & Gas

  

2,354,534

   

   

   

2,354,534

  

Telecommunications

  

5,407,756

   

   

   

5,407,756

  

Utilities

  

6,157,161

   

   

   

6,157,161

  

Total Common Stocks

  

41,333,148

   

   

   

41,333,148

  

Total Investments

  

41,333,148

   

   

   

41,333,148

  

See the Consolidated Portfolio of Investments for all investment classifications not indicated in the table.

There were no transfers of financial assets between levels during the period.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
72



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated)

Columbia India Small Cap ETF

March 31, 2017

(Percentages represent value of investments compared to net assets)

Common Stocks — 99.7%

Issuer

 

Shares

 

Value ($)

 

BASIC MATERIALS — 3.6%

 

Advanced Enzyme Technologies, Ltd.(a)

  

7,050

   

223,594

  
Gujarat Narmada Valley Fertilizers &
Chemicals, Ltd.
  

86,170

   

380,921

  

MOIL, Ltd.

  

43,217

   

208,814

  

NOCIL, Ltd.

  

79,638

   

115,039

  

Total

    

928,368

  

CONSUMER GOODS — 15.8%

 

Balrampur Chini Mills, Ltd.

  

120,779

   

270,351

  

Bata India, Ltd.

  

54,997

   

481,028

  

Bombay Dyeing & Manufacturing Co., Ltd.

  

167,649

   

214,289

  

Ceat, Ltd.(a)

  

14,500

   

295,839

  

Delta Corp., Ltd.

  

97,962

   

273,210

  

Godfrey Phillips India, Ltd.

  

13,693

   

238,940

  

Indo Count Industries, Ltd.

  

76,405

   

232,327

  

JK Tyre & Industries, Ltd.

  

159,309

   

323,721

  

Kaveri Seed Co., Ltd.(a)

  

24,204

   

208,065

  

Kwality, Ltd.

  

45,514

   

109,518

  

PC Jeweller, Ltd.

  

25,820

   

166,209

  

Raymond, Ltd.

  

33,021

   

322,226

  

Tata Global Beverages, Ltd.

  

389,796

   

903,731

  

Total

    

4,039,454

  

CONSUMER SERVICES — 9.6%

 

Cox & Kings, Ltd.

  

75,880

   

270,169

 ��

Infibeam Incorporation, Ltd.(a)

  

21,290

   

310,539

  

Jet Airways India, Ltd.(a)

  

26,773

   

216,831

  

Jubilant Foodworks, Ltd.

  

32,433

   

553,087

  

PVR, Ltd.

  

19,222

   

423,677

  

SpiceJet, Ltd.(a)

  

216,427

   

338,964

  

TV18 Broadcast, Ltd.(a)

  

511,586

   

330,894

  

Total

    

2,444,161

  

FINANCIALS — 20.8%

 

Allahabad Bank(a)

  

238,948

   

270,281

  

Andhra Bank

  

248,726

   

221,971

  

Can Fin Homes, Ltd.

  

8,706

   

284,428

  

Capital First, Ltd.

  

30,934

   

372,771

  
Housing Development &
Infrastructure, Ltd.(a)
  

255,732

   

322,742

  

IFCI, Ltd.(a)

  

696,665

   

318,104

  

Indiabulls Real Estate, Ltd.(a)

  

187,138

   

252,169

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Karnataka Bank, Ltd. (The)

  

247,429

   

536,125

  

Karur Vysya Bank, Ltd. (The)

  

455,451

   

785,563

  

Manappuram Finance, Ltd.

  

405,027

   

612,203

  

Multi Commodity Exchange of India, Ltd.

  

33,787

   

627,012

  

Oriental Bank of Commerce

  

135,828

   

294,623

  

Syndicate Bank(a)

  

230,931

   

253,389

  

Unitech, Ltd.(a)

  

1,881,092

   

162,226

  

Total

    

5,313,607

  

HEALTH CARE — 4.9%

 
Dishman Pharmaceuticals &
Chemicals, Ltd.
  

58,725

   

261,091

  

Dr Lal PathLabs, Ltd.(b)

  

24,135

   

359,618

  

Granules India, Ltd.

  

89,969

   

192,380

  

Marksans Pharma, Ltd.

  

199,678

   

144,988

  

Wockhardt, Ltd.

  

25,884

   

286,703

  

Total

    

1,244,780

  

INDUSTRIALS — 26.1%

 

BEML, Ltd.

  

18,025

   

378,071

  

Crompton Greaves, Ltd.(a)

  

380,112

   

454,542

  

Escorts, Ltd.

  

104,111

   

863,784

  

Force Motors, Ltd.(a)

  

4,715

   

325,813

  

Gayatri Projects, Ltd.

  

76,514

   

170,267

  

Gujarat Pipavav Port, Ltd.

  

230,896

   

587,063

  

Hindustan Construction Co., Ltd.(a)

  

689,594

   

420,011

  

India Cements, Ltd.

  

165,648

   

414,407

  

IRB Infrastructure Developers, Ltd.

  

140,872

   

512,854

  

Jain Irrigation Systems, Ltd.

  

287,842

   

416,016

  

Jaiprakash Associates, Ltd.(a)

  

1,389,998

   

294,332

  

Kesoram Industries, Ltd.(a)

  

95,333

   

209,722

  

NCC, Ltd.

  

308,202

   

388,961

  

NIIT, Ltd.(a)

  

95,749

   

124,156

  

Nilkamal, Ltd.

  

5,046

   

151,679

  

Reliance Defence and Engineering, Ltd.(a)

  

119,086

   

123,240

  

Sintex Industries, Ltd.

  

339,668

   

553,167

  

V-Guard Industries, Ltd.

  

106,763

   

285,096

  

Total

    

6,673,181

  

OIL & GAS — 5.0%

 

Aban Offshore, Ltd.(a)

  

29,321

   

101,665

  

Chennai Petroleum Corp., Ltd.

  

45,919

   

256,732

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
73



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Small Cap ETF

March 31, 2017

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Suzlon Energy, Ltd.(a)

  

3,174,817

   

933,842

  

Total

    

1,292,239

  

TECHNOLOGY — 7.8%

 

Hexaware Technologies, Ltd.

  

81,995

   

271,423

  

Intellect Design Arena, Ltd.(a)

  

56,305

   

99,716

  

Just Dial, Ltd.(a)

  

24,726

   

200,881

  

KPIT Technologies, Ltd.

  

115,313

   

230,324

  

Mindtree, Ltd.

  

81,302

   

567,117

  

NIIT Technologies, Ltd.

  

38,026

   

255,088

  

Tata Elxsi, Ltd.

  

16,138

   

364,065

  

Total

    

1,988,614

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

TELECOMMUNICATIONS — 2.2%

 

Reliance Communications, Ltd.(a)

  

945,498

   

557,674

  

UTILITIES — 3.9%

 

GMR Infrastructure, Ltd.(a)

  

2,179,172

   

536,948

  

Mahanagar Gas, Ltd.

  

9,312

   

128,405

  

PTC India, Ltd.

  

229,858

   

330,619

  

Total

    

995,972

  
Total Investments
(Cost: $24,359,629)
    

25,478,050

  

Other Assets & Liabilities, Net

    

86,835

  

Net Assets

    

25,564,885

  

Notes to Consolidated Portfolio of Investments

(a)  Non-income producing security.

(b)  Represents privately placed and other securities and instruments exempt from SEC registration (collectively, private placements), such as Section 4(a)(2) and Rule 144A eligible securities, which are often sold only to qualified institutional buyers. The Fund may invest in private placements determined to be liquid as well as those determined to be illiquid. Private placements may be determined to be liquid under guidelines established by the Fund's Board of Trustees. At March 31, 2017, the value of this security amounted to $359,618, or 1.40% of net assets.

Fair Value Measurements

The Fund categorizes its fair value measurements according to a three-level hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs by prioritizing that the most observable input be used when available. Observable inputs are those that market participants would use in pricing an investment based on market data obtained from sources independent of the reporting entity. Unobservable inputs are those that reflect the Fund's assumptions about the information market participants would use in pricing an investment. An investment's level within the fair value hierarchy is based on the lowest level of any input that is deemed significant to the asset's or liability's fair value measurement. The input levels are not necessarily an indication of the risk or liquidity associated with investments at that level. For example, certain U.S. government securities are generally high quality and liquid, however, they are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market.

Fair value inputs are summarized in the three broad levels listed below:

>  Level 1 — Valuations based on quoted prices for investments in active markets that the Fund has the ability to access at the measurement date (including NAV for open-end mutual funds). Valuation adjustments are not applied to Level 1 investments.

>  Level 2 — Valuations based on other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risks, etc.).

>  Level 3 — Valuations based on significant unobservable inputs (including the Fund's own assumptions and judgment in determining the fair value of investments).

Inputs that are used in determining fair value of an investment may include price information, credit data, volatility statistics, and other factors. These inputs can be either observable or unobservable. The availability of observable inputs can vary between investments, and is affected by various factors such as the type of investment, and the volume and level of activity for that investment or similar investments in the marketplace. The inputs will be considered by the Investment Manager, along with any other relevant factors in the calculation of an investment's fair value. The Fund uses prices and inputs that are current as of the measurement date, which may include periods of market dislocations. During these periods, the availability of prices and inputs may be reduced for many investments. This condition could cause an investment to be reclassified between the various levels within the hierarchy.

Investments falling into the Level 3 category are primarily supported by quoted prices from brokers and dealers participating in the market for those investments. However, these may be classified as Level 3 investments due to lack of market transparency and corroboration to support these quoted prices. Additionally, valuation models may be used as the pricing source for any remaining investments classified as Level 3.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
74



COLUMBIA ETF TRUST II

PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Small Cap ETF

March 31, 2017

Fair Value Measurements (continued)

These models may rely on one or more significant unobservable inputs and/or significant assumptions by the Investment Manager. Inputs used in valuations may include, but are not limited to, financial statement analysis, capital account balances, discount rates and estimated cash flows, and comparable company data.

Under the direction of the Fund's Board of Trustees (the Board), the Investment Manager's Valuation Committee (the Committee) is responsible for overseeing the valuation procedures approved by the Board. The Committee consists of voting and non-voting members from various groups within the Investment Manager's organization, including operations and accounting, trading and investments, compliance, risk management and legal.

The Committee meets at least monthly to review and approve valuation matters, which may include a description of specific valuation determinations, data regarding pricing information received from approved pricing vendors and brokers and the results of Board-approved valuation control policies and procedures (the Policies). The Policies address, among other things, instances when market quotations are or are not readily available, including recommendation of third party pricing vendors and a determination of appropriate pricing methodologies; events that require specific valuation determinations and assessment of fair value techniques; securities with a potential for stale pricing, including those that are illiquid, restricted, or in default; and the effectiveness of third-party pricing vendors, including periodic reviews of vendors. The Committee meets more frequently, as needed, to discuss additional valuation matters, which may include the need to review back-testing results, review time-sensitive information or approve related valuation actions. The Committee reports to the Board, with members of the Committee meeting with the Board at each of its regularly scheduled meetings to discuss valuation matters and actions during the period, similar to those described earlier.

For investments categorized as Level 3, the Committee monitors information similar to that described above, which may include: (i) data specific to the issuer or comparable issuers, (ii) general market or specific sector news and (iii) quoted prices and specific or similar security transactions. The Committee considers this data and any changes from prior periods in order to assess the reasonableness of observable and unobservable inputs, any assumptions or internal models used to value those securities and changes in fair value. This data is also used to corroborate, when available, information received from approved pricing vendors and brokers. Various factors impact the frequency of monitoring this information (which may occur as often as daily). However, the Committee may determine that changes to inputs, assumptions and models are not required as a result of the monitoring procedures performed.

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2017:

Valuation Inputs

 Level 1
Quoted Prices in Active
Markets for Identical
Assets ($)
 Level 2
Other Significant
Observable Inputs ($)
 Level 3
Significant
Unobservable Inputs ($)
 

Total ($)

 

Common Stocks

 

Basic Materials

  

928,368

   

   

   

928,368

  

Consumer Goods

  

4,039,454

   

   

   

4,039,454

  

Consumer Services

  

2,444,161

   

   

   

2,444,161

  

Financials

  

5,313,607

   

   

   

5,313,607

  

Health Care

  

1,244,780

   

   

   

1,244,780

  

Industrials

  

6,673,181

   

   

   

6,673,181

  

Oil & Gas

  

1,292,239

   

   

   

1,292,239

  

Technology

  

1,988,614

   

   

   

1,988,614

  

Telecommunications

  

557,674

   

   

   

557,674

  

Utilities

  

995,972

   

   

   

995,972

  

Total Common Stocks

  

25,478,050

   

   

   

25,478,050

  

Total Investments

  

25,478,050

   

   

   

25,478,050

  

See the Consolidated Portfolio of Investments for all investment classifications not indicated in the table.

There were no transfers of financial assets between levels during the period.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
75




COLUMBIA ETF TRUST II

STATEMENT OF ASSETS AND LIABILITIES

March 31, 2017

  Columbia
Beyond
BRICs ETF
 Columbia EM Core
ex-China ETF
 Columbia EM
Quality
Dividend ETF
 

Assets

 

Investments, at cost:

 

$

78,735,925

  

$

9,459,823

  

$

12,795,509

  

Investments, at value

  

70,010,551

   

11,010,505

   

12,999,960

  

Cash

  

56,768

   

124,704

   

57,334

  

Foreign cash (identified cost $545,087, $—, $—)

  

558,217

   

   

  

Receivable for:

 

Investment sold

  

456,476

   

50,084

   

  

Capital shares sold

  

11,321

   

   

  

Dividends

  

491,396

   

46,855

   

34,922

  

Spot foreign currency contracts

  

   

   

  

Foreign tax reclaims

  

5,826

   

152

   

339

  

Expense reimbursement due from Investment Manager

  

16,122

   

3,308

   

  

Total assets

  

71,606,677

   

11,235,608

   

13,092,555

  

Liabilities

 

Payable for:

 

Investment purchased

  

537,948

   

19,630

   

  

Capital shares purchased

  

   

   

  

Investment management fees

  

50,755

   

6,616

   

9,407

  

Due to custodian

  

   

   

3,098

  

Income payable

  

   

   

  

Accrued expenses and other liabilities

  

   

393

   

  

Total liabilities

  

588,703

   

26,639

   

12,505

  

Net assets applicable to outstanding capital stock

 

$

71,017,974

  

$

11,208,969

  

$

13,080,050

  

Represented by

 

Paid-in capital

 

$

139,614,823

  

$

9,771,018

  

$

40,960,010

  

Undistributed (accumulated) net investment income (loss)

  

550,404

   

18,063

   

511

  
Accumulated net realized loss on investments and foreign currency
transactions
  

(60,436,273

)

  

(132,820

)

  

(28,085,355)

  

Net unrealized appreciation (depreciation) on:

 

Investments

  

(8,725,374

)

  

1,550,682

   

204,451

  

Foreign curency translations

  

14,394

   

2,026

   

433

  

Total — representing net assets applicable to outstanding capital stock

 

$

71,017,974

  

$

11,208,969

  

$

13,080,050

  

Shares outstanding

  

4,400,000

   

450,000

   

950,000

  

Net asset value per share

 

$

16.14

  

$

24.91

  

$

13.77

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
76



COLUMBIA ETF TRUST II

STATEMENT OF ASSETS AND LIABILITIES (continued)

March 31, 2017

  Columbia EM
Strategic
Opportunities ETF
(Consolidated)
 Columbia Emerging
Markets Consumer
ETF (Consolidated)
 Columbia Emerging
Markets Core ETF
(Consolidated)
 

Assets

 

Investments, at cost:

 

$

8,163,660

  

$

720,433,577

  

$

4,530,125

  

Investments, at value

  

7,528,509

   

739,010,200

   

4,752,384

  

Cash

  

   

2,556,860

   

21,167

  

Foreign cash (identified cost $—, $423,814, $447)

  

1

   

423,732

   

447

  

Receivable for:

 

Investment sold

  

23,105

   

49,742

   

  

Capital shares sold

  

   

2,069,652

   

  

Dividends

  

6,364

   

150,665

   

1,037

  

Spot foreign currency contracts

  

129,868

   

   

  

Foreign tax reclaims

  

   

   

96

  

Expense reimbursement due from Investment Manager

  

1,459

   

   

  

Total assets

  

7,689,306

   

744,260,851

   

4,775,131

  

Liabilities

 

Payable for:

 

Investment purchased

  

   

2,564,276

   

  

Capital shares purchased

  

23,468

   

   

  

Investment management fees

  

6,216

   

525,585

   

2,832

  

Due to custodian

  

97,023

   

   

  

Income payable

  

   

   

  

Accrued expenses and other liabilities

  

   

   

  

Total liabilities

  

126,707

   

3,089,861

   

2,832

  

Net assets applicable to outstanding capital stock

 

$

7,562,599

  

$

741,170,990

  

$

4,772,299

  

Represented by

 

Paid-in capital

 

$

11,761,894

  

$

874,439,532

  

$

5,359,831

  

Undistributed (accumulated) net investment income (loss)

  

15,590

   

(23,291

)

  

13,328

  
Accumulated net realized loss on investments and foreign currency
transactions
  

(3,579,735

)

  

(151,826,579

)

  

(823,083

)

 

Net unrealized appreciation (depreciation) on:

 

Investments

  

(635,151

)

  

18,576,623

   

222,259

  

Foreign curency translations

  

1

   

4,705

   

(36

)

 

Total — representing net assets applicable to outstanding capital stock

 

$

7,562,599

  

$

741,170,990

  

$

4,772,299

  

Shares outstanding

  

400,000

   

29,950,000

   

250,000

  

Net asset value per share

 

$

18.91

  

$

24.75

  

$

19.09

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
77



COLUMBIA ETF TRUST II

STATEMENT OF ASSETS AND LIABILITIES (continued)

March 31, 2017

  Columbia India
Consumer ETF
(Consolidated)
 Columbia India
Infrastructure ETF
(Consolidated)
 Columbia India
Small Cap ETF
(Consolidated)
 

Assets

 

Investments, at cost:

 

$

71,231,411

  

$

32,025,358

  

$

24,359,629

  

Investments, at value

  

87,633,513

   

41,333,148

   

25,478,050

  

Cash

  

525,306

   

112,166

   

  

Foreign cash (identified cost $6,872, $33,127, $25,164)

  

7,251

   

33,240

   

25,627

  

Receivable for:

 

Investment sold

  

   

   

  

Capital shares sold

  

   

   

  

Dividends

  

   

79,080

   

  

Spot foreign currency contracts

  

   

   

617,713

  

Foreign tax reclaims

  

   

   

  

Expense reimbursement due from Investment Manager

  

   

   

  

Total assets

  

88,166,070

   

41,557,634

   

26,121,390

  

Liabilities

 

Payable for:

 

Investment purchased

  

   

   

  

Capital shares purchased

  

   

   

  

Investment management fees

  

64,565

   

28,956

   

16,585

  

Due to custodian

  

   

   

539,913

  

Income payable

  

   

   

7

  

Accrued expenses and other liabilities

  

   

   

  

Total liabilities

  

64,565

   

28,956

   

556,505

  

Net assets applicable to outstanding capital stock

 

$

88,101,505

  

$

41,528,678

  

$

25,564,885

  

Represented by

 

Paid-in capital

  

$80,962,339

  

$

95,174,122

  

$

36,635,632

  

Undistributed (accumulated) net investment income (loss)

  

49,782

   

40,258

   

(17,874

)

 
Accumulated net realized loss on investments and foreign currency
transactions
  

(9,313,097

)

  

(62,993,605

)

  

(12,171,757

)

 

Net unrealized appreciation (depreciation) on:

 

Investments

  

16,402,102

   

9,307,790

   

1,118,421

  

Foreign curency translations

  

379

   

113

   

463

  

Total — representing net assets applicable to outstanding capital stock

 

$

88,101,505

  

$

41,528,678

  

$

25,564,885

  

Shares outstanding

  

2,300,000

   

3,200,000

   

1,400,000

  

Net asset value per share

 

$

38.31

  

$

12.98

  

$

18.26

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
78



COLUMBIA ETF TRUST II

STATEMENT OF OPERATIONS

For the Year Ended March 31, 2017

  Columbia Beyond
BRICs ETF
 Columbia EM Core
ex-China ETF
 Columbia EM
Quality Dividend
ETF
 

Investment Income

 

Dividends

 

$

2,578,493

  

$

229,848

  

$

593,355

  

Interest

  

21

   

   

536

  

Foreign taxes withheld

  

(244,844

)

  

(30,203

)

  

(64,554

)

 

Total income

  

2,333,670

   

199,645

   

529,337

  

Expenses:

 

Excise tax

  

   

   

  

Investment management fees

  

719,907

   

64,866

   

123,625

  

Mauritius taxes paid

  

   

   

  

Total expenses

  

719,907

   

64,866

   

123,625

  

Fees waived by the Investment Manager and its affiliates

  

(228,676

)

  

(32,433

)

  

  

Total net expenses

  

491,231

   

32,433

   

123,625

  

Net investment income (loss)

  

1,842,439

   

167,212

   

405,712

  

Realized and unrealized gain (loss) — net

 

Net realized gain (loss) on:

 

Investments

  

(7,322,421

)

  

(111,714

)

  

(97,233

)

 

In-kind transactions

  

(674,977

)

  

   

(25,464

)

 

Foreign currency translations

  

(422,588

)

  

(28,604

)

  

(71,522

)

 

Net realized gain (loss)

  

(8,419,986

)

  

(140,318

)

  

(194,219

)

 

Change in net unrealized appreciation (depreciation) on:

 

Investments

  

9,880,974

   

1,477,180

   

1,029,381

  

Foreign currency translations

  

6,371

   

1,853

   

(5,169

)

 

Net change in unrealized appreciation (depreciation)

  

9,887,345

   

1,479,033

   

1,024,212

  

Net realized and unrealized gain (loss)

  

1,467,359

   

1,338,715

   

829,993

  

Net increase (decrease) in net assets resulting from operations

 

$

3,309,798

  

$

1,505,927

  

$

1,235,705

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
79



COLUMBIA ETF TRUST II

STATEMENT OF OPERATIONS (continued)

For the Year Ended March 31, 2017

  Columbia EM
Strategic
Opportunities ETF
(Consolidated)
 Columbia Emerging
Markets Consumer
ETF (Consolidated)
 Columbia Emerging
Markets Core ETF
(Consolidated)
 

Investment Income

 

Dividends

 

$

292,608

  

$

11,715,527

  

$

110,597

  

Interest

  

   

   

  

Foreign taxes withheld

  

(28,148

)

  

(939,199

)

  

(11,774

)

 

Total income

  

264,460

   

10,776,328

   

98,823

  

Expenses:

 

Excise tax

  

   

6,014

   

32

  

Investment management fees

  

104,723

   

5,652,827

   

32,240

  

Mauritius taxes paid

  

   

12,728

   

  

Total expenses

  

104,723

   

5,671,569

   

32,272

  

Fees waived by the Investment Manager and its affiliates

  

(24,654

)

  

   

  

Total net expenses

  

80,069

   

5,671,569

   

32,272

  

Net investment income (loss)

  

184,391

   

5,104,759

   

66,551

  

Realized and unrealized gain (loss) — net

 

Net realized gain (loss) on:

 

Investments

  

(815,713

)

  

(27,899,635

)

  

(252,117

)

 

In-kind transactions

  

(244,823

)

  

1,544,727

   

95,453

  

Foreign currency translations

  

3,027

   

30,904

   

(119

)

 

Net realized gain (loss)

  

(1,057,509

)

  

(26,324,004

)

  

(156,783

)

 

Change in net unrealized appreciation (depreciation) on:

 

Investments

  

811,319

   

83,732,689

   

548,635

  

Foreign currency translations

  

(1,451

)

  

(5,007

)

  

(240

)

 

Net change in unrealized appreciation (depreciation)

  

809,868

   

83,727,682

   

548,395

  

Net realized and unrealized gain (loss)

  

(247,641

)

  

57,403,678

   

391,612

  

Net increase (decrease) in net assets resulting from operations

 

$

(63,250

)

 

$

62,508,437

  

$

458,163

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
80



COLUMBIA ETF TRUST II

STATEMENT OF OPERATIONS (continued)

For the Year Ended March 31, 2017

  Columbia India
Consumer ETF
(Consolidated)
 Columbia India
Infrastructure ETF
(Consolidated)
 Columbia India
Small Cap ETF
(Consolidated)
 

Investment Income

 

Dividends

 

$

628,274

  

$

525,021

  

$

149,164

  

Interest

  

   

   

  

Foreign taxes withheld

  

   

   

  

Total income

  

628,274

   

525,021

   

149,164

  

Expenses:

 

Excise tax

  

   

   

  

Investment management fees

  

702,511

   

355,103

   

170,540

  

Mauritius taxes paid

  

651

   

53,823

   

2,157

  

Total expenses

  

703,162

   

408,926

   

172,697

  

Fees waived by the Investment Manager and its affiliates

  

   

   

  

Total net expenses

  

703,162

   

408,926

   

172,697

  

Net investment income (loss)

  

(74,888

)

  

116,095

   

(23,533

)

 

Realized and unrealized gain (loss) — net

 

Net realized gain (loss) on:

 

Investments

  

411,671

   

(993,606

)

  

2,790,725

  

In-kind transactions

  

   

   

  

Foreign currency translations

  

124,670

   

(74,698

)

  

66,078

  

Net realized gain (loss)

  

536,341

   

(1,068,304

)

  

2,856,803

  

Change in net unrealized appreciation (depreciation) on:

 

Investments

  

16,323,119

   

10,976,366

   

3,589,681

  

Foreign currency translations

  

(189

)

  

(374

)

  

118

  

Net change in unrealized appreciation (depreciation)

  

16,322,930

   

10,975,992

   

3,589,799

  

Net realized and unrealized gain (loss)

  

16,859,271

   

9,907,688

   

6,446,602

  

Net increase (decrease) in net assets resulting from operations

 

$

16,784,383

  

$

10,023,783

  

$

6,423,069

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
81



COLUMBIA ETF TRUST II

STATEMENT OF CHANGES IN NET ASSETS

 

Columbia Beyond BRICs ETF

 

Columbia EM Core ex-China ETF

 
  For the
Year Ended
March 31,
2017
 For the
Year Ended
March 31,
2016
 For the
Year Ended
March 31,
2017
 For the Period
September 2, 2015(a)
Through
March 31, 2016
 

Operations

 

Net investment income

 

$

1,842,439

  

$

4,676,451

  

$

167,212

  

$

17,020

  

Net realized gain (loss)

  

(8,419,986

)

  

(69,123,203

)

  

(140,318

)

  

(27,085

)

 

Net change in unrealized appreciation (depreciation)

  

9,887,345

   

8,073,359

   

1,479,033

   

73,675

  

Net increase (decrease) in net assets resulting from operations

  

3,309,798

   

(56,373,393

)

  

1,505,927

   

63,610

  

Distributions to shareholders

 

Net investment income

  

(1,842,516

)

  

(6,442,630

)

  

(126,499

)

  

(25,672

)

 

Shareholder transactions

 

Proceeds from shares sold

  

6,254,796

   

9,095,023

   

8,767,910

   

2,003,012

  

Cost of shares redeemed

  

(28,946,398

)

  

(155,077,249

)

  

   

(979,263

)

 

Transaction fees

  

   

   

(56

)

  

  
Net increase (decrease) in net assets reulting from
shareholder transactions
  

(22,691,602

)

  

(145,982,226

)

  

8,767,854

   

1,023,749

  

Increase (decrease) in net assets

  

(21,224,320

)

  

(208,798,249

)

  

10,147,282

   

1,061,687

  

Net assets

 

Net assets at beginning of year

  

92,242,294

   

301,040,543

   

1,061,687

   

  

Net assets at end of year

 

$

71,017,974

  

$

92,242,294

  

$

11,208,969

  

$

1,061,687

  

Undistributed (accumulated) net investment income (loss)

 

$

550,404

  

$

971,474

  

$

18,063

  

$

2,891

  

Capital stock activity

 

Shares outstanding, beginning of year

  

5,850,000

   

15,150,000

   

50,000

   

  

Subsciptions

  

400,000

   

500,000

   

400,000

   

100,000

  

Redemptions

  

(1,850,000

)

  

(9,800,000

)

  

   

(50,000

)

 

Shares outstanding, end of year

  

4,400,000

   

5,850,000

   

450,000

   

50,000

  

(a) Commencement of operations.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
82



COLUMBIA ETF TRUST II

STATEMENT OF CHANGES IN NET ASSETS (continued)

  Columbia EM Quality
Dividend ETF
 Columbia EM Strategic
Opportunities ETF
(Consolidated)
 
  For the
Year Ended
March 31,
2017
 For the
Year Ended
March 31,
2016
 For the
Year Ended
March 31,
2017
 For the
Year Ended
March 31,
2016
 

Operations

 

Net investment income

 

$

405,712

  

$

578,085

  

$

184,391

  

$

435,911

  

Net realized gain (loss)

  

(194,219

)

  

(2,158,928

)

  

(1,057,509

)

  

(3,529,041

)

 

Net change in unrealized appreciation (depreciation)

  

1,024,212

   

(301,020

)

  

809,868

   

(3,486,431

)

 

Net increase (decrease) in net assets resulting from operations

  

1,235,705

   

(1,881,863

)

  

(63,250

)

  

(6,579,561

)

 

Distributions to shareholders

 

Net investment income

  

(331,695

)

  

(552,553

)

  

(222,458

)

  

(428,513

)

 

Shareholder transactions

 

Proceeds from shares sold

  

656,756

   

   

   

6,892,494

  

Cost of shares redeemed

  

(4,492,266

)

  

(6,487,251

)

  

(7,181,808

)

  

(20,647,452

)

 

Transaction fees

  

   

(1,532

)

  

(1,951

)

  

(3,177

)

 

Net increase (decrease) in net assets reulting from shareholder transactions

  

(3,835,510

)

  

(6,488,783

)

  

(7,183,759

)

  

(13,758,135

)

 

Increase (decrease) in net assets

  

(2,931,500

)

  

(8,923,199

)

  

(7,469,467

)

  

(20,766,209

)

 

Net assets

 

Net assets at beginning of year

  

16,011,550

   

24,934,749

   

15,032,066

   

35,798,275

  

Net assets at end of year

 

$

13,080,050

  

$

16,011,550

  

$

7,562,599

  

$

15,032,066

  

Undistributed (accumulated) net investment income (loss)

 

$

511

  

$

(1,984

)

 

$

15,590

  

$

50,630

  

Capital stock activity

 

Shares outstanding, beginning of year

  

1,250,000

   

1,750,000

   

800,000

   

1,550,000

  

Subsciptions

  

50,000

   

   

   

350,000

  

Redemptions

  

(350,000

)

  

(500,000

)

  

(400,000

)

  

(1,100,000

)

 

Shares outstanding, end of year

  

950,000

   

1,250,000

   

400,000

   

800,000

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
83



COLUMBIA ETF TRUST II

STATEMENT OF CHANGES IN NET ASSETS (continued)

  Columbia Emerging Markets
Consumer ETF (Consolidated)
 Columbia Emerging Markets
Core ETF (Consolidated)
 
  For the
Year Ended
March 31,
2017
 For the
Year Ended
March 31,
2016
 For the
Year Ended
March 31,
2017
 For the
Year Ended
March 31,
2016
 

Operations

 

Net investment income (loss)

 

$

5,104,759

  

$

6,926,431

  

$

66,551

  

$

86,601

  

Net realized gain (loss)

  

(26,324,004

)

  

(75,169,970

)

  

(156,783

)

  

(580,213

)

 

Net change in unrealized appreciation (depreciation)

  

83,727,682

   

(76,773,402

)

  

548,395

   

(227,659

)

 

Net increase (decrease) in net assets resulting from operations

  

62,508,437

   

(145,016,941

)

  

458,163

   

(721,271

)

 

Distributions to shareholders

 

Net investment income

  

(4,854,400

)

  

(6,520,768

)

  

(58,710

)

  

(77,847

)

 

Shareholder transactions

 

Proceeds from shares sold

  

82,309,612

   

73,668,244

   

   

1,008,047

  

Cost of shares redeemed

  

(11,152,187

)

  

(454,930,424

)

  

(899,537

)

  

  

Transaction fees

  

(158

)

  

1,341

   

(2,478

)

  

(2,171

)

 
Net increase (decrease) in net assets reulting from shareholder
transactions
  

71,157,267

   

(381,260,839

)

  

(902,015

)

  

1,005,876

  

Increase (decrease) in net assets

  

128,811,304

   

(532,798,548

)

  

(502,562

)

  

206,758

  

Net assets

 

Net assets at beginning of year

  

612,359,686

   

1,145,158,234

   

5,274,861

   

5,068,103

  

Net assets at end of year

 

$

741,170,990

  

$

612,359,686

  

$

4,772,299

  

$

5,274,861

  

Undistributed (accumulated) net investment income (loss)

 

$

(23,291

)

 

$

(309,437

)

 

$

13,328

  

$

4,780

  

Capital stock activity

 

Shares outstanding, beginning of year

  

27,100,000

   

43,300,000

   

300,000

   

250,000

  

Subsciptions

  

3,350,000

   

3,100,000

   

   

50,000

  

Redemptions

  

(500,000

)

  

(19,300,000

)

  

(50,000

)

  

  

Shares outstanding, end of year

  

29,950,000

   

27,100,000

   

250,000

   

300,000

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
84



COLUMBIA ETF TRUST II

STATEMENT OF CHANGES IN NET ASSETS (continued)

  Columbia India Consumer ETF
(Consolidated)
 Columbia India Infrastructure
ETF (Consolidated)
 
  For the
Year Ended
March 31,
2017
 For the
Year Ended
March 31,
2016
 For the
Year Ended
March 31,
2017
 For the
Year Ended
March 31,
2016
 

Operations

 

Net investment income (loss)

 

$

(74,888

)

 

$

98,516

  

$

116,095

  

$

1,204,099

  

Net realized gain (loss)

  

536,341

   

(8,230,437

)

  

(1,068,304

)

  

(8,594,761

)

 

Net change in unrealized appreciation (depreciation)

  

16,322,930

   

(4,436,125

)

  

10,975,992

   

(4,228,116

)

 

Net increase (decrease) in net assets resulting from operations

  

16,784,383

   

(12,568,046

)

  

10,023,783

   

(11,618,778

)

 

Distributions to shareholders

 

Net investment income

  

(72,600

)

  

   

(1,015,616

)

  

(369,715

)

 

Shareholder transactions

 

Proceeds from shares sold

  

15,312,097

   

18,805,894

   

3,069,689

   

15,149,937

  

Cost of shares redeemed

  

(15,598,335

)

  

(23,265,499

)

  

(10,483,631

)

  

(10,954,836

)

 

Transaction fees

  

(3,220

)

  

(3,264

)

  

(3,795

)

  

(3,988

)

 
Net increase (decrease) in net assets reulting from shareholder
transactions
  

(289,458

)

  

(4,462,869

)

  

(7,417,737

)

  

4,191,113

  

Increase (decrease) in net assets

  

16,422,325

   

(17,030,915

)

  

1,590,430

   

(7,797,380

)

 

Net assets

 

Net assets at beginning of year

  

71,679,180

   

88,710,095

   

39,938,248

   

47,735,628

  

Net assets at end of year

 

$

88,101,505

  

$

71,679,180

  

$

41,528,678

  

$

39,938,248

  

Undistributed (accumulated) net investment income (loss)

 

$

49,782

  

$

73,483

  

$

40,258

  

$

1,014,477

  

Capital stock activity

 

Shares outstanding, beginning of year

  

2,300,000

   

2,500,000

   

3,900,000

   

3,650,000

  

Subsciptions

  

450,000

   

550,000

   

250,000

   

1,250,000

  

Redemptions

  

(450,000

)

  

(750,000

)

  

(950,000

)

  

(1,000,000

)

 

Shares outstanding, end of year

  

2,300,000

   

2,300,000

   

3,200,000

   

3,900,000

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
85



COLUMBIA ETF TRUST II

STATEMENT OF CHANGES IN NET ASSETS (continued)

  Columbia India Small Cap ETF
(Consolidated)
 
  For the
Year Ended
March 31,
2017
 For the
Year Ended
March 31,
2016
 

Operations

 

Net investment income (loss)

 

$

(23,533

)

 

$

92,229

  

Net realized gain (loss)

  

2,856,803

   

(5,033,514

)

 

Net change in unrealized appreciation (depreciation)

  

3,589,799

   

(1,213,602

)

 

Net increase (decrease) in net assets resulting from operations

  

6,423,069

   

(6,154,887

)

 

Distributions to shareholders

 

Net investment income

  

(160,975

)

  

(132,552

)

 

Shareholder transactions

 

Proceeds from shares sold

  

2,653,031

   

  

Cost of shares redeemed

  

(2,373,895

)

  

(3,528,774

)

 

Transaction fees

  

(3,344

)

  

(6,360

)

 

Net increase (decrease) in net assets reulting from shareholder transactions

  

275,792

   

(3,535,134

)

 

Increase (decrease) in net assets

  

6,537,886

   

(9,822,573

)

 

Net assets

 

Net assets at beginning of year

  

19,026,999

   

28,849,572

  

Net assets at end of year

 

$

25,564,885

  

$

19,026,999

  

Undistributed (accumulated) net investment income (loss)

 

$

(17,874

)

 

$

98,180

  

Capital stock activity

 

Shares outstanding, beginning of year

  

1,400,000

   

1,650,000

  

Subsciptions

  

150,000

   

  

Redemptions

  

(150,000

)

  

(250,000

)

 

Shares outstanding, end of year

  

1,400,000

   

1,400,000

  

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
86




COLUMBIA ETF TRUST II

FINANCIAL HIGHLIGHTS

Columbia Beyond BRICs ETF

  

For the Year Ended March 31,

 
  

2017

 

2016

 

2015

 

2014

 

2013(a)

 

Per share data

 

Net asset value, beginning of year

 

$

15.77

  

$

19.87

  

$

21.01

  

$

21.97

  

$

20.00

  

Net investment income(b)

  

0.34

   

0.40

   

0.56

   

0.99

   

0.17

  

Net realized and unrealized gain (loss)

  

0.43

   

(3.83

)

  

(1.43

)

  

(1.77

)

  

1.91

  

Total from investment operations

  

0.77

   

(3.43

)

  

(0.87

)

  

(0.78

)

  

2.08

  

Less distributions to shareholders:

 

Net investment income

  

(0.40

)

  

(0.67

)

  

(0.25

)

  

(0.18

)

  

(0.11

)

 

Net realized gains

  

   

   

(0.02

)

  

   

  

Total distribution to shareholders

  

(0.40

)

  

(0.67

)

  

(0.27

)

  

(0.18

)

  

(0.11

)

 

Net asset value, end of year

 

$

16.14

  

$

15.77

  

$

19.87

  

$

21.01

  

$

21.97

  

Total Return at NAV(c)

  

5.12

%

  

(17.05

)%

  

(4.16

)%

  

(3.51

)%

  

10.41

%

 

Total Return at Market(c)

  

4.01

%

  

(17.00

)%

  

(4.78

)%

  

(3.66

)%

  

11.46

%

 

Ratios to average net assets of:

 

Expenses, prior to expense reimbursements/waivers(d)(e)

  

0.85

%

  

0.85

%

  

0.85

%

  

0.85

%

  

2.43

%(f)

 

Expenses, net of expense reimbursements/waivers(d)(e)

  

0.58

%

  

0.58

%

  

0.58

%

  

0.66

%

  

0.85

%(f)

 

Net Investment income, net of reimbursement/waivers

  

2.18

%

  

2.26

%

  

2.65

%

  

4.92

%

  

1.26

%(f)

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

71,018

  

$

92,242

  

$

301,041

  

$

49,385

  

$

7,688

  

Portfolio turnover rate(g)

  

36

%

  

32

%

  

33

%

  

63

%

  

1

%(h)

 

Notes to Financial Highlights

(a)  Based on operations from August 15, 2012 (commencement of operations) through the stated period end.

(b)  Based on average shares outstanding.

(c)  Total Return at Net Asset Value is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period. Total Return at Market is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period and redemption on the last day of the period. The total return would have been lower if certain expenses had not been reimbursed/waived by the Investment Manager. The price used to calculate Market Price return is based on the midpoint of the 4:00 PM Eastern (U.S.) bid/ask spread on the NYSE and does not represent returns an investor would receive if shares were traded at other times. Total return calculated for a period of less than one year is not annualized.

(d)  Effective April 1, 2013, EGA replaced the fee and expense structure with a Unitary Fee (as defined in Note 3).

(e)  Effective October 1, 2013 the Fund entered into a fee waiver agreement pursuant to which the Investment Manager has agreed to waive its investment management fee to 0.58% of the Fund's average daily net assets.

(f)  Annualized.

(g)  The portfolio turnover rate is calculated without regard to purchase and sales transactions of short-term instruments, certain derivatives and in-kind transactions, if any. If such transactions were included, the Fund's portfolio turnover may be higher.

(h)  Not annualized.

The accompanying Notes to Financial Statements are an integral part of these financial statements.

Annual Report 2017
87



COLUMBIA ETF TRUST II

FINANCIAL HIGHLIGHTS

Columbia EM Core ex-China ETF

  

For the Year Ended March 31,

 
  

2017

 

2016(a)

 

Per share data

 

Net asset value, beginning of year

 

$

21.23

  

$

20.00

  

Net investment income(b)

  

0.41

   

0.22

  

Net realized and unrealized gain

  

3.55

   

1.52

  

Total from investment operations

  

3.96

   

1.74

  

Less distributions to shareholders:

 

Net investment income

  

(0.28

)

  

(0.51

)

 

Net asset value, end of year

 

$

24.91

  

$

21.23

  

Total Return at NAV(c)

  

18.83

%

  

8.98

%

 

Total Return at Market(c)

  

23.20

%

  

8.49

%

 

Ratios to average net assets of:

 

Expenses, prior to expense reimbursements/waivers

  

0.70

%

  

0.70

%(d)