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Columbia ETF Trust II

Filed: 31 May 18, 12:59pm

 

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, 2018

 

 

 

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, 2018

COLUMBIA ETF TRUST II

Columbia Beyond BRICs ETF

Columbia EM Core ex-China ETF

Columbia EM Quality Dividend ETF

Columbia Emerging Markets Consumer ETF

Columbia India Consumer ETF

Columbia India Infrastructure ETF

Columbia India Small Cap ETF




PRESIDENT'S MESSAGE

Dear Shareholders,

The year 2017 was an extraordinary year in the financial markets. The S&P 500 Index didn't experience a single down month and returned over 20% during the 12-month period. The index continued this trend into January 2018, which marked the fastest start for the index ever. Low volatility, which had been a feature of the U.S. equity market for several years, along with the surge in the S&P 500 Index, seemingly drove investor sentiment to very high levels. This arguably set the stage for an overdue correction, which we witnessed in February 2018.

A return to volatility

There have been few periods of market upheaval such as were experienced in the first part of 2018. While investors were taken by surprise by the sudden and pronounced market swings, the return to some level of volatility actually marked a resumption of relatively normal market conditions. Having said that, it's important to distinguish between a good technical correction where excess enthusiasm in the marketplace is being let out, versus a real change in the underlying fundamentals — things like an underperforming economy or weaker corporate earnings. Our view is that the recent market volatility falls into the former category, and the fundamentals remain strong. We're continuing to see improvements in global economic activity, and we're seeing corporate earnings expectations continue to rise — and not just because of tax reform.

Consistency is more important than ever

It's important to keep in mind that when it comes to long-term investing, it's the destination, not the journey that matters most. If you have a financial goal that you've worked out with your financial advisor, and you have a good asset allocation plan to reach it, it's a question of sticking with your plan rather than become focused on near-term volatility. Bouts of volatility are normal. After all, it's hard to cross the ocean without hitting an occasional rough patch. You need to focus on the destination.

One final thought. In weathering volatility, we believe it's the consistency of the return that is essential. Investors who chase higher returns are usually the first to sell when an investment goes through a bad patch, and they therefore don't tend to benefit from the recovery. More disciplined investors who perhaps panic less or not at all during periods of volatility, tend to have improved long-term results and are more likely to reach their financial goals. Nothing is more important to us than making sure those who have entrusted us to protect and grow their assets are able to do what matters most to them.

Your success is our priority. Talk to your financial advisor about how working with Columbia Threadneedle Investments may help you position your portfolio for consistent, sustainable outcomes, no matter the market conditions.

Sincerely,

Christopher O. Petersen

President, Columbia ETF Trust II

The S&P 500 Index, an unmanaged index, measures the performance of 500 widely held, large-capitalization U.S. stocks and is frequently used as a general measure of market performance. Past performance is no guarantee of future results.

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.

© 2018 Columbia Management Investment Advisers, LLC. All rights reserved.

Columbia ETF Trust II | Annual Report 2018



TABLE OF CONTENTS

Columbia Beyond BRICs ETF

 

Fund at a Glance

  

2

  
Manager Discussion of Fund Performance  

5

  

Columbia EM Core ex-China ETF

 

Fund at a Glance

  

7

  
Manager Discussion of Fund Performance  

10

  

Columbia EM Quality Dividend ETF

 

Fund at a Glance

  

12

  
Manager Discussion of Fund Performance  

15

  

Columbia Emerging Markets Consumer ETF

 
Fund at a Glance  

17

  
Manager Discussion of Fund Performance  

20

  

Columbia India Consumer ETF

 
Fund at a Glance  

22

  
Manager Discussion of Fund Performance  

24

  

Columbia India Infrastructure ETF

 
Fund at a Glance  

26

  
Manager Discussion of Fund Performance  

28

  

Columbia India Small Cap ETF

 
Fund at a Glance  

30

  
Manager Discussion of Fund Performance  

32

  
Understanding Your Fund's Expenses  

34

  
Frequency Distribution of Premiums and Discounts  

35

  
Portfolio of Investments  

37

  
Statement of Assets and Liabilities  

60

  
Statement of Operations  

63

  
Statement of Changes in Net Assets  

66

  
Financial Highlights  

70

  
Notes to Financial Statements  

77

  
Report of Independent Registered Public Accounting Firm  

88

  
Federal Income Tax Information  

89

  
Trustees and Officers  

90

  
Additional Information  

95

  

Columbia ETF Trust II | Annual Report 2018




FUND AT A GLANCE

Columbia Beyond BRICs ETF

Investment objective

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.

Portfolio management

Christopher Lo, Ph.D., CFA

Portfolio Manager

Managed Fund since September 2016

Average annual total returns (%) (for period ended March 31, 2018)

  

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

08/15/12

  

25.97

   

-0.05

   

1.90

  

Net Asset Value

 

08/15/12

  

24.11

   

0.01

   

1.79

  

Tracked Index(1)

 

  

25.59

   

1.77

   

3.57

  

(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 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 Index 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.

Columbia ETF Trust II | Annual Report 2018
2



FUND AT A GLANCE (continued)

Columbia Beyond BRICs ETF

Performance of a hypothetical $10,000 investment (August 15, 2012 — March 31, 2018)

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.

Top ten holdings (%) (at March 31, 2018)

First Abu Dhabi Bank PJSC (United Arab Emirates)

  

3.7

  

America Movil SAB de CV Series L (Mexico)

  

3.0

  

Naspers, Ltd. N Shares (South Africa)

  

2.9

  

PTT PCL NVDR (Thailand)

  

2.7

  

Banca Transilvania SA (Romania)

  

2.2

  

Safaricom PLC (Kenya)

  

2.2

  

Vietnam Dairy Products JSC (Vietnam)

  

2.1

  

Public Bank Bhd (Malaysia)

  

2.0

  

Fomento Economico Mexicano SAB de CV Series UBD (Mexico)

  

2.0

  

Maroc Telecom (Morocco)

  

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.

Country breakdown (%) (at March 31, 2018)

Bangladesh

  

4.7

  

Chile

  

2.3

  

Colombia

  

0.5

  

Czech Republic

  

0.4

  

Hungary

  

1.2

  

Indonesia

  

8.0

  

Kenya

  

2.2

  

Malaysia

  

9.8

  

Mexico

  

12.2

  

Morocco

  

4.0

  

Nigeria

  

3.8

  

Philippines

  

2.7

  

Poland

  

3.5

  

Qatar

  

1.3

  

Romania

  

2.2

  

South Africa

  

14.5

  

Sri Lanka

  

2.0

  

Thailand

  

11.0

  

Turkey

  

1.8

  

United Arab Emirates

  

5.2

  

United States(a)

  

0.4

  

Vietnam

  

6.3

  

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.

(a) Includes investments in Money Market Funds.

Columbia ETF Trust II | Annual Report 2018
3



FUND AT A GLANCE (continued)

Columbia Beyond BRICs ETF

Equity sector breakdown (%) (at March 31, 2018)

Consumer Discretionary

  

5.5

  

Consumer Staples

  

10.4

  

Energy

  

4.9

  

Financials

  

40.9

  

Health Care

  

4.7

  

Industrials

  

5.0

  

Materials

  

8.0

  

Real Estate

  

3.7

  

Telecommunication Services

  

14.0

  

Utilities

  

2.9

  

Total

  

100.0

  

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

Columbia ETF Trust II | Annual Report 2018
4



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia Beyond BRICs ETF (BBRC)

For the 12-month period that ended March 31, 2018, the Fund returned 24.11% based on net asset value (NAV) and 25.97% based on market price. The Fund's Tracked Index, the FTSE Beyond BRICS Index, returned 25.59%.

The Fund's NAV on March 31, 2017 was $16.14, and it ended the annual period on March 31, 2018 with a NAV of $19.49. The Fund's market price on March 31, 2018 was $19.61 per share.

Emerging market equities posted strong gains despite geopolitical tensions

After a four-year stretch of weak relative performance, emerging market equities delivered a strong gain during the annual period, a gain soundly ahead of both U.S. and developed market international equities' advances. The MSCI Emerging Markets Index returned 24.93% during the annual period, as compared to S&P 500 Index and MSCI EAFE Index returns of 13.99% and 14.80%, respectively, for the same time period.

Several factors came together to fuel emerging market equities' positive performance. First, data indicated the global economy had begun to experience synchronized growth across regions — a development last witnessed prior to the 2007-2008 financial crisis. This scenario had a multi-layered benefit for the emerging markets, especially those with resource-heavy economies, in that it contributed to increasing exports, stronger domestic consumption and higher commodity prices. These trends, in turn, boosted corporate earnings to well-above consensus expectations and led to a general improvement in individual company fundamentals.

Further, the downturn in the U.S. dollar relative to other major currencies boosted the returns of emerging market equities for U.S.-based investors. The equity markets gained an additional benefit from investors' confidence that the U.S. Federal Reserve would maintain its gradual approach to raising interest rates. Emerging market equities were also buoyed by investors' hearty appetite for risk and the resulting surge in investment inflows into the asset class.

The last two months or so of the annual period saw some of these strong gains given back. During February and March 2018, there was a significant increase in market volatility, growing concerns about the potential for trade wars and persistent geopolitical tensions, most notably between the U.S. and North Korea.

Contributors and detractors

Constituents in the financials, telecommunication services and industrials sectors contributed most positively to the Fund's absolute returns during the annual period. Constituents in consumer discretionary, the only sector to detract from absolute returns during the annual period, dampened Fund performance.

From a country perspective, constituents in Vietnam, Nigeria and Thailand contributed most positively to the Fund's absolute returns during the annual period. Conversely, constituents in Mexico, Indonesia and Bangladesh contributed the least, albeit positively, to absolute returns. No countries detracted from absolute returns during the annual period.

Positions in Vietnamese industrial production company Hoa Phat Group, Kenyan integrated telecommunication services provider Safaricom and Nigerian commercial bank Zenith Bank contributed most positively. Hoa Phat Group generated a triple-digit absolute gain during the annual period, while Safaricom and Zenith Bank each generated a double-digit absolute return during the annual period. Positions in South African furniture retailer Steinhoff International Holdings, Mexican media and entertainment company Grupo Televisa and Mexican building materials producer Cemex detracted most. Each generated a double-digit negative absolute return during the annual period.

The MSCI EAFE Index (Net) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The index is compiled from a composite of securities markets of Europe, Australasia and the Far East and is widely recognized by investors in foreign markets as the measurement index for portfolios of non-North American securities.

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

Columbia ETF Trust II | Annual Report 2018
5



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia Beyond BRICs ETF (BBRC)

The S&P 500 Index, an unmanaged index, measures the performance of 500 widely held, large-capitalization U.S. stocks and is frequently used as a general measure of market performance.

Investing involves risks, including the risk of loss of principal. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The Fund is passively managed and seeks to track the performance of an index. The Fund may not sell a poorly performing security unless it was removed from the index. There is no guarantee that the index will achieve positive returns. Risk exists that the index provider may not follow its methodology for index construction. Errors may result in a negative fund performance. The Fund's net value will generally decline when the market value of its targeted index declines. Foreign investments subject the Fund to risks, including political, economic, market, social and other risks impacting a particular country, as well as to currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. These risks are enhanced for emerging or frontier market issuers. Investment in or exposure to foreign currencies subjects the Fund to currency fluctuation and risk of loss. Investments in small- and mid-cap companies involve risks and volatility greater than investments in larger, more established companies. The Fund concentrates its investments in issuers of one or more particular industries to the same extent as the underlying index. Although the Fund's shares are listed on an exchange, there can be no assurance that an active, liquid or otherwise orderly trading market for shares will be established or maintained. Active market trading may increase portfolio turnover, transaction costs and tracking error to the targeted index. The Fund may have portfolio turnover, which may cause an adverse cost impact. There may be additional portfolio turnover risk as active market trading of the Fund's shares may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions as well as tracking error to the Index and as high levels of transactions increase brokerage and other transaction costs and may result in increased taxable capital gains. See the Fund's prospectus for more information on these and other risks.

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.

Columbia ETF Trust II | Annual Report 2018
6



FUND AT A GLANCE

Columbia EM Core ex-China ETF

Investment objective

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.

Portfolio management

Christopher Lo, Ph.D., CFA

Portfolio Manager

Managed Fund since September 2016

Average annual total returns (%) (for period ended March 31, 2018)

  

Inception

 

1 Year

 

Life

 

Market Price

 

09/02/15

  

20.45

   

20.26

  

Net Asset Value

 

09/02/15

  

22.76

   

19.67

  

MSCI Emerging Markets Index (Net)

 

  

24.93

   

18.34

  

Beta Thematic Emerging Markets ex-China Index

 

  

19.66

   

18.39

  

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 Advisors, 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 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.

Columbia ETF Trust II | Annual Report 2018
7



FUND AT A GLANCE (continued)

Columbia EM Core ex-China ETF

Performance of a hypothetical $10,000 investment (September 2, 2015 — March 31, 2018)

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.

Top ten holdings (%) (at March 31, 2018)

Samsung Electronics Co., Ltd. (South Korea)

  

6.4

  

Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)

  

4.9

  

HDFC Bank, Ltd. ADR (India)

  

4.2

  

ICICI Bank, Ltd. ADR (India)

  

2.7

  

Petroleo Brasileiro SA Preference Shares (Brazil)

  

2.7

  

Itau Unibanco Holding SA Preference Shares (Brazil)

  

2.7

  

Vale SA (Brazil)

  

2.4

  

Infosys, Ltd. ADR (India)

  

2.4

  

Naspers, Ltd. N Shares (South Africa)

  

2.2

  

Celltrion, Inc. (South Korea)

  

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.

Country breakdown (%) (at March 31, 2018)

Brazil

  

13.9

  

Chile

  

1.1

  

India

  

10.9

  

Indonesia

  

3.4

  

Malaysia

  

4.5

  

Mexico

  

4.2

  

Philippines

  

1.1

  

Poland

  

2.5

  

Russia

  

4.8

  

South Africa

  

9.4

  

South Korea

  

19.3

  

Taiwan

  

16.7

  

Thailand

  

6.0

  

Turkey

  

1.8

  

United States(a)

  

0.4

  

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.

(a) Includes investments in Money Market Funds.

Columbia ETF Trust II | Annual Report 2018
8



FUND AT A GLANCE (continued)

Columbia EM Core ex-China ETF

Equity sector breakdown (%) (at March 31, 2018)

Consumer Discretionary

  

7.6

  

Consumer Staples

  

8.6

  

Energy

  

10.9

  

Financials

  

28.8

  

Health Care

  

3.7

  

Industrials

  

5.2

  

Information Technology

  

18.9

  

Materials

  

11.0

  

Telecommunication Services

  

3.8

  

Utilities

  

1.5

  

Total

  

100.0

  

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

Columbia ETF Trust II | Annual Report 2018
9



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia EM Core ex-China ETF (XCEM)

For the 12-month period that ended March 31, 2018, the Fund returned 22.76% based on net asset value (NAV) and 20.45% based on market price. The MSCI Emerging Markets Index (Net) returned 24.93%, and the Beta Thematic Emerging Markets ex-China Index returned 19.66% during the same time period.

The Fund's NAV on March 31, 2017 was $24.91, and it ended the annual period on March 31, 2018 with a NAV of $28.03. The Fund's market price on March 31, 2018 was $28.45 per share.

Emerging market equities posted strong gains despite geopolitical tensions

After a four-year stretch of weak relative performance, emerging market equities delivered a strong gain during the annual period, a gain soundly ahead of both U.S. and developed market international equities' advances. The MSCI Emerging Markets Index returned 24.93% during the annual period, as compared to S&P 500 Index and MSCI EAFE Index returns of 13.99% and 14.80%, respectively, for the same time period.

Several factors came together to fuel emerging market equities' positive performance. First, data indicated the global economy had begun to experience synchronized growth across regions — a development last witnessed prior to the 2007-2008 financial crisis. This scenario had a multi-layered benefit for the emerging markets, especially those with resource-heavy economies, in that it contributed to increasing exports, stronger domestic consumption and higher commodity prices. These trends, in turn, boosted corporate earnings to well-above consensus expectations and led to a general improvement in individual company fundamentals.

Further, the downturn in the U.S. dollar relative to other major currencies boosted the returns of emerging market equities for U.S.-based investors. The equity markets gained an additional benefit from investors' confidence that the U.S. Federal Reserve would maintain its gradual approach to raising interest rates. Emerging market equities were also buoyed by investors' hearty appetite for risk and the resulting surge in investment inflows into the asset class.

The last two months or so of the annual period saw some of these strong gains given back. During February and March 2018, there was a significant increase in market volatility, growing concerns about the potential for trade wars and persistent geopolitical tensions, most notably between the U.S. and North Korea.

Contributors and detractors

Constituents in the financials, energy and information technology sectors contributed most positively to the Fund's absolute returns during the annual period. Constituents in consumer discretionary, the only sector to detract from absolute returns during the annual period, dampened Fund performance.

From a country perspective, constituents in South Korea, Brazil and Taiwan contributed most positively to the Fund's absolute returns during the annual period. Conversely, constituents in Mexico and the Philippines detracted from absolute returns.

Positions in South Korea-based biotechnology firm Celltrion, India-based bank HDFC Bank and South Korea-based semiconductor manufacturer SK Hynix contributed most positively. Celltrion generated a triple-digit absolute gain during the annual period, while HDFC Bank and SK Hynix each generated a double-digit absolute return during the annual period. Positions in South African furniture retailer Steinhoff International Holdings, India-based auto manufacturer Tata Motors and Mexican media and entertainment company Grupo Televisa detracted most. Each produced a double-digit negative absolute return during the annual period.

The MSCI EAFE Index (Net) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The index is compiled from a composite of securities markets of Europe, Australasia and the Far East and is widely recognized by investors in foreign markets as the measurement index for portfolios of non-North American securities.

The S&P 500 Index, an unmanaged index, measures the performance of 500 widely held, large-capitalization U.S. stocks and is frequently used as a general measure of market performance.

Columbia ETF Trust II | Annual Report 2018
10



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia EM Core ex-China ETF (XCEM)

Investing involves risks, including the risk of loss of principal. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The Fund is passively managed and seeks to track the performance of an index. The Fund may not sell a poorly performing security unless it was removed from the index. There is no guarantee that the index will achieve positive returns. Risk exists that the index provider may not follow its methodology for index construction. Errors may result in a negative fund performance. The Fund's net value will generally decline when the market value of its targeted index declines. Foreign investments subject the Fund to risks, including political, economic, market, social and other risks impacting a particular country, as well as to currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. These risks are enhanced for emerging or frontier market issuers. Investment in or exposure to foreign currencies subjects the Fund to currency fluctuation and risk of loss. Investments in small- and mid-cap companies involve risks and volatility greater than investments in larger, more established companies. The Fund concentrates its investments in issuers of one or more particular industries to the same extent as the underlying index. Although the Fund's shares are listed on an exchange, there can be no assurance that an active, liquid or otherwise orderly trading market for shares will be established or maintained. Active market trading may increase portfolio turnover, transaction costs and tracking error to the targeted index. The Fund may have portfolio turnover, which may cause an adverse cost impact. There may be additional portfolio turnover risk as active market trading of the Fund's shares may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions as well as tracking error to the Index and as high levels of transactions increase brokerage and other transaction costs and may result in increased taxable capital gains. See the Fund's prospectus for more information on these and other risks.

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.

Columbia ETF Trust II | Annual Report 2018
11




FUND AT A GLANCE

Columbia EM Quality Dividend ETF

Investment objective

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 Advantage® Emerging Markets Quality Dividend Index.

Portfolio management

Christopher Lo, Ph.D., CFA

Portfolio Manager

Managed Fund since September 2016

Average annual total returns (%) (for period ended March 31, 2018)

  

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

08/04/11

  

20.31

   

-1.04

   

0.26

  

Net Asset Value

 

08/04/11

  

18.96

   

-1.17

   

0.09

  

MSCI Emerging Markets Index (Net)

 

  

24.93

   

4.99

   

3.32

  

Tracked Index(1)

 

  

21.31

   

0.37

   

1.62

  

(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 Advantage® 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 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 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 Advantage® 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.

Columbia ETF Trust II | Annual Report 2018
12



FUND AT A GLANCE (continued)

Columbia EM Quality Dividend ETF

Performance of a hypothetical $10,000 investment (August 4, 2011 — March 31, 2018)

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.

Top ten holdings (%) (at March 31, 2018)

Indian Oil Corp., Ltd. (India)

  

2.1

  

Tenaga Nasional Bhd (Malaysia)

  

2.1

  

Country Garden Holdings Co., Ltd. (China)

  

2.1

  

S-Oil Corp. (South Korea)

  

2.1

  

Kia Motors Corp. (South Korea)

  

2.1

  

CCR SA (Brazil)

  

2.1

  

Bharat Petroleum Corp., Ltd. (India)

  

2.1

  

KT&G Corp. (South Korea)

  

2.1

  

Ultrapar Participacoes SA (Brazil)

  

2.0

  

Public Bank Bhd (Malaysia)

  

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.

Country breakdown (%) (at March 31, 2018)

Brazil

  

6.1

  

Chile

  

2.0

  

China

  

11.9

  

Hong Kong

  

4.0

  

India

  

12.1

  

Indonesia

  

8.0

  

Malaysia

  

8.1

  

Poland

  

2.0

  

Qatar

  

1.9

  

South Africa

  

9.9

  

South Korea

  

6.2

  

Taiwan

  

14.0

  

Thailand

  

7.9

  

United Arab Emirates

  

5.9

  

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.

Columbia ETF Trust II | Annual Report 2018
13



FUND AT A GLANCE (continued)

Columbia EM Quality Dividend ETF

Equity sector breakdown (%) (at March 31, 2018)

Consumer Discretionary

  

4.1

  

Consumer Staples

  

8.1

  

Energy

  

12.3

  

Financials

  

19.6

  

Industrials

  

4.0

  

Information Technology

  

9.9

  

Materials

  

14.0

  

Real Estate

  

10.0

  

Telecommunication Services

  

9.9

  

Utilities

  

8.1

  

Total

  

100.0

  

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

Columbia ETF Trust II | Annual Report 2018
14



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia EM Quality Dividend ETF (HILO)

For the 12-month period that ended March 31, 2018, the Fund returned 18.96% based on net asset value (NAV) and 20.31% based on market price. The MSCI Emerging Markets Index (Net) returned 24.93%, and the Fund's Tracked Index, the Beta Advantage® Emerging Markets Quality Dividend Index returned 21.31% during the same time period.

The Fund's NAV on March 31, 2017 was $13.77, and it ended the annual period on March 31, 2018 with a NAV of $16.00. The Fund's market price on March 31, 2018 was $16.19 per share.

Emerging market equities posted strong gains despite geopolitical tensions

After a four-year stretch of weak relative performance, emerging market equities delivered a strong gain during the annual period, a gain soundly ahead of both U.S. and developed market international equities' advances. The MSCI Emerging Markets Index returned 24.93% during the annual period, as compared to S&P 500 Index and MSCI EAFE Index returns of 13.99% and 14.80%, respectively, for the same time period.

Several factors came together to fuel emerging market equities' positive performance. First, data indicated the global economy had begun to experience synchronized growth across regions — a development last witnessed prior to the 2007-2008 financial crisis. This scenario had a multi-layered benefit for the emerging markets, especially those with resource-heavy economies, in that it contributed to increasing exports, stronger domestic consumption and higher commodity prices. These trends, in turn, boosted corporate earnings to well-above consensus expectations and led to a general improvement in individual company fundamentals.

Further, the downturn in the U.S. dollar relative to other major currencies boosted the returns of emerging market equities for U.S.-based investors. The equity markets gained an additional benefit from investors' confidence that the U.S. Federal Reserve would maintain its gradual approach to raising interest rates. Emerging market equities were also buoyed by investors' hearty appetite for risk and the resulting surge in investment inflows into the asset class.

The last two months or so of the annual period saw some of these strong gains given back. During February and March 2018, there was a significant increase in market volatility, growing concerns about the potential for trade wars and persistent geopolitical tensions, most notably between the U.S. and North Korea.

Contributors and detractors

Constituents in the financials, consumer staples and information technology sectors contributed most positively to the Fund's absolute returns during the annual period. Constituents in health care, the only sector to detract from absolute returns during the annual period, dampened Fund performance.

From a country perspective, constituents in Brazil, Thailand and Taiwan contributed most positively to the Fund's absolute returns during the annual period. Conversely, constituents in Poland, Indonesia and the United Arab Emirates detracted most from absolute returns.

Positions in South African integrated financial services group Standard Bank Group, Thai airport operator Airports of Thailand, and Brazilian school operator and teaching services provider Kroton Educacional contributed most positively. Each of these companies produced a double-digit absolute gain during the annual period. Positions in Brazilian highway manager CCR, Polish petroleum products refiner and distributor Polski Koncern Naftowy Orlen and Indonesian media company Surya Citra Media detracted most. Each generated a double-digit negative absolute return during the annual period.

The MSCI EAFE Index (Net) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The index is compiled from a composite of securities markets of Europe, Australasia and the Far East and is widely recognized by investors in foreign markets as the measurement index for portfolios of non-North American securities.

The S&P 500 Index, an unmanaged index, measures the performance of 500 widely held, large-capitalization U.S. stocks and is frequently used as a general measure of market performance.

Columbia ETF Trust II | Annual Report 2018
15



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia EM Quality Dividend ETF (HILO)

Investing involves risks, including the risk of loss of principal. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The Fund is passively managed and seeks to track the performance of an index. The Fund may not sell a poorly performing security unless it was removed from the index. There is no guarantee that the index will achieve positive returns. Risk exists that the index provider may not follow its methodology for index construction. Errors may result in a negative fund performance. The Fund's net value will generally decline when the market value of its targeted index declines. Foreign investments subject the Fund to risks, including political, economic, market, social and other risks impacting a particular country, as well as to currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. These risks are enhanced for emerging or frontier market issuers. Investment in or exposure to foreign currencies subjects the Fund to currency fluctuation and risk of loss. Investments in small- and mid-cap companies involve risks and volatility greater than investments in larger, more established companies. The Fund concentrates its investments in issuers of one or more particular industries to the same extent as the underlying index. Although the Fund's shares are listed on an exchange, there can be no assurance that an active, liquid or otherwise orderly trading market for shares will be established or maintained. Active market trading may increase portfolio turnover, transaction costs and tracking error to the targeted index. The Fund may have portfolio turnover, which may cause an adverse cost impact. There may be additional portfolio turnover risk as active market trading of the Fund's shares may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions as well as tracking error to the Index and as high levels of transactions increase brokerage and other transaction costs and may result in increased taxable capital gains. Dividend quality is not guaranteed and the amount, if any, can vary over time. See the Fund's prospectus for more information on these and other risks.

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.

Columbia ETF Trust II | Annual Report 2018
16



FUND AT A GLANCE

Columbia Emerging Markets Consumer ETF

Investment objective

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.

Portfolio management

Christopher Lo, Ph.D., CFA

Portfolio Manager

Managed Fund since September 2016

Average annual total returns (%) (for period ended March 31, 2018)

  

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

09/14/10

  

7.16

   

0.76

   

4.52

  

Net Asset Value

 

09/14/10

  

6.81

   

0.70

   

4.43

  

Dow Jones Emerging Markets Consumer Titans 30TM Index

 

  

7.71

   

1.84

   

5.66

  

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 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.

Columbia ETF Trust II | Annual Report 2018
17



FUND AT A GLANCE (continued)

Columbia Emerging Markets Consumer ETF

Performance of a hypothetical $10,000 investment (September 14, 2010 — March 31, 2018)

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.

Top ten holdings (%) (at March 31, 2018)

Naspers, Ltd. N Shares (South Africa)

  

8.7

  

Ambev SA ADR (Brazil)

  

5.5

  

JD.com, Inc. ADR (China)

  

5.1

  

Fomento Economico Mexicano SAB de CV Series UBD (Mexico)

  

4.3

  

Ctrip.com International, Ltd. ADR (China)

  

4.2

  

Maruti Suzuki India, Ltd. (India)

  

4.0

  

Yum China Holdings, Inc. (China)

  

3.9

  

Hindustan Unilever, Ltd. (India)

  

3.8

  

Geely Automobile Holdings, Ltd. (China)

  

3.6

  

Wal-Mart de Mexico SAB de CV (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, 2018)

Brazil

  

12.6

  

Chile

  

3.3

  

China

  

28.2

  

India

  

14.6

  

Indonesia

  

3.1

  

Malaysia

  

2.3

  

Mexico

  

10.5

  

Philippines

  

2.9

  

Russia

  

2.4

  

South Africa

  

14.1

  

Thailand

  

5.8

  

United States(a)

  

0.2

  

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.

(a) Includes investments in Money Market Funds.

Columbia ETF Trust II | Annual Report 2018
18



FUND AT A GLANCE (continued)

Columbia Emerging Markets Consumer ETF

Equity sector breakdown (%) (at March 31, 2018)

Consumer Discretionary

  

52.7

  

Consumer Staples

  

44.4

  

Industrials

  

2.9

  

Total

  

100.0

  

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

Columbia ETF Trust II | Annual Report 2018
19



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia Emerging Markets Consumer ETF (ECON)

For the 12-month period that ended March 31, 2018, the Fund returned 6.81% based on net asset value (NAV) and 7.16% based on market price. The Dow Jones Emerging Markets Consumer Titans 30TM Index returned 7.71%, during the same time period.

The Fund's NAV on March 31, 2017 was $24.75, and it ended the annual period on March 31, 2018 with a NAV of $26.34. The Fund's market price on March 31, 2018 was $26.51 per share.

Emerging market equities posted strong gains despite geopolitical tensions

After a four-year stretch of weak relative performance, emerging market equities delivered a strong gain during the annual period, a gain soundly ahead of both U.S. and developed market international equities' advances. The MSCI Emerging Markets Index returned 24.93% during the annual period, as compared to S&P 500 Index and MSCI EAFE Index returns of 13.99% and 14.80%, respectively, for the same time period.

Several factors came together to fuel emerging market equities' positive performance. First, data indicated the global economy had begun to experience synchronized growth across regions — a development last witnessed prior to the 2007-2008 financial crisis. This scenario had a multi-layered benefit for the emerging markets, especially those with resource-heavy economies, in that it contributed to increasing exports, stronger domestic consumption and higher commodity prices. These trends, in turn, boosted corporate earnings to well-above consensus expectations and led to a general improvement in individual company fundamentals.

Further, the downturn in the U.S. dollar relative to other major currencies boosted the returns of emerging market equities for U.S.-based investors. The equity markets gained an additional benefit from investors' confidence that the U.S. Federal Reserve would maintain its gradual approach to raising interest rates. Emerging market equities were also buoyed by investors' hearty appetite for risk and the resulting surge in investment inflows into the asset class.

The last two months or so of the annual period saw some of these strong gains given back. During February and March 2018, there was a significant increase in market volatility, growing concerns about the potential for trade wars and persistent geopolitical tensions, most notably between the U.S. and North Korea.

Contributors and detractors

Constituents in the consumer staples and consumer discretionary sectors contributed most positively to the Fund's absolute returns during the annual period. Constituents in the industrials sector also contributed positively, albeit much more modestly, to absolute returns. No sectors detracted from absolute returns during the annual period.

From a country perspective, constituents in China, South Africa and India contributed most positively to the Fund's absolute returns during the annual period. Conversely, constituents in Russia, Indonesia and Mexico detracted most from absolute returns.

Positions in South African media company Naspers, Chinese online direct sales company JD.com and Thai convenience store and department store chain operator CP ALL contributed most positively. Each of these companies produced a double-digit absolute gain during the annual period. Positions in South African furniture retailer Steinhoff International Holdings, Russian supermarket operator Magnit and Mexican media and entertainment company Grupo Televisa detracted most. Each generated a double-digit negative absolute return during the annual period.

The MSCI EAFE Index (Net) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The index is compiled from a composite of securities markets of Europe, Australasia and the Far East and is widely recognized by investors in foreign markets as the measurement index for portfolios of non-North American securities.

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

Columbia ETF Trust II | Annual Report 2018
20



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia Emerging Markets Consumer ETF (ECON)

The S&P 500 Index, an unmanaged index, measures the performance of 500 widely held, large-capitalization U.S. stocks and is frequently used as a general measure of market performance.

Investing involves risks, including the risk of loss of principal. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The Fund is passively managed and seeks to track the performance of an index. The Fund may not sell a poorly performing security unless it was removed from the index. There is no guarantee that the index will achieve positive returns. Risk exists that the index provider may not follow its methodology for index construction. Errors may result in a negative fund performance. The Fund's net value will generally decline when the market value of its targeted index declines. Foreign investments subject the Fund to risks, including political, economic, market, social and other risks impacting a particular country, as well as to currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. These risks are enhanced for emerging or frontier market issuers. Investment in or exposure to foreign currencies subjects the Fund to currency fluctuation and risk of loss. Investments in small- and mid-cap companies involve risks and volatility greater than investments in larger, more established companies. The Fund concentrates its investments in issuers of one or more particular industries to the same extent as the underlying index. Although the Fund's shares are listed on an exchange, there can be no assurance that an active, liquid or otherwise orderly trading market for shares will be established or maintained. Active market trading may increase portfolio turnover, transaction costs and tracking error to the targeted index. The Fund may have portfolio turnover, which may cause an adverse cost impact. There may be additional portfolio turnover risk as active market trading of the Fund's shares may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions as well as tracking error to the Index and as high levels of transactions increase brokerage and other transaction costs and may result in increased taxable capital gains. See the Fund's prospectus for more information on these and other risks.

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.

Columbia ETF Trust II | Annual Report 2018
21




FUND AT A GLANCE

Columbia India Consumer ETF

Investment objective

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.

Portfolio management

Christopher Lo, Ph.D., CFA

Portfolio Manager

Managed Fund since September 2016

Average annual total returns (%) (for period ended March 31, 2018)

  

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

08/10/11

  

19.98

   

15.93

   

13.46

  

Net Asset Value

 

08/10/11

  

19.64

   

15.75

   

13.32

  

Indxx India Consumer Index

 

  

20.98

   

17.47

   

15.01

  

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 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.

Columbia ETF Trust II | Annual Report 2018
22



FUND AT A GLANCE (continued)

Columbia India Consumer ETF

Performance of a hypothetical $10,000 investment (August 10, 2011 — March 31, 2018)

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.

Top ten holdings (%) (at March 31, 2018)

Titan Co., Ltd.

  

5.6

  

Nestle India, Ltd.

  

5.2

  

Britannia Industries, Ltd.

  

4.9

  

Hindustan Unilever, Ltd.

  

4.9

  

Maruti Suzuki India, Ltd.

  

4.9

  

Mahindra & Mahindra, Ltd.

  

4.9

  

Zee Entertainment Enterprises, Ltd.

  

4.9

  

Godrej Consumer Products, Ltd.

  

4.8

  

Hero MotoCorp, Ltd.

  

4.8

  

ITC, 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, 2018)

Consumer Discretionary

  

54.9

  

Consumer Staples

  

45.1

  

Total

  

100.0

  

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

Columbia ETF Trust II | Annual Report 2018
23



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia India Consumer ETF (INCO)

For the 12-month period that ended March 31, 2018, the Fund returned 19.64% based on net asset value (NAV) and 19.98% based on market price. The Indxx India Consumer Index returned 20.98% during the same time period.

The Fund's NAV on March 31, 2017 was $38.31, and it ended the annual period on March 31, 2018 with a NAV of $45.81. The Fund's market price on March 31, 2018 was $46.18 per share.

Indian equities posted solid returns amid favorable reforms

The Indian equity market enjoyed solid returns during the annual period, as reforms by India's Prime Minister Narendra Modi took hold and a shift to more open investment policies drove an influx of foreign and institutional capital into the country. The MSCI India Index returned 10.23% for the annual period. While this was less than the 24.93% return of the MSCI Emerging Markets Index broadly during the same time period, it is well worth noting that for calendar year 2017, the MSCI India Index outperformed the broader MSCI Emerging Markets Index.

Significant tax reform via the Goods and Services Tax bill, passed by India's parliament at the end of March 2017 and launched on July 1, 2017, proved to be a positive shift for investors, as the country replaced and streamlined taxes on goods and services. Also, demonetization, put in place in November 2016, continued to benefit India's overall economy, as it was designed to reduce tax evasion and black-market activities. India's financials stocks showed particularly strong performance in the fourth quarter of 2017, driven by the late-October 2017 announcement of a recapitalization plan by the Indian government. The Indian government unveiled plans to inject $32.5 billion into its banks over the following two years in an effort to shore up the worsening balance sheets of the country's public-sector banks, boost liquidity in its economy and revive growth. Indian equities overall rallied to a record high on the news.

The start of 2018 saw a decline in Indian equities, mostly due to the concern over a fraud discovered at a state-owned bank. The reintroduction of long-term capital gains taxes, concerns about a trade conflict between the U.S. and China, and weak performance by Prime Minister Modi's party in two state by-elections also weighed on investor sentiment during the first quarter of 2018 as did heightened volatility in February and March 2018 across the global equity markets. (A by-election is a special election used to fill elected offices that have become vacant between general elections.)

Importantly, the fundamentals for India and its economy remained strong during the annual period. Its policy-driven, largely domestic-based economic growth, in synchronization with global economic growth provided a tailwind for its equity market performance. Also giving confidence to investors was the forecast by private agency Skymet that India's monsoon season would be "normal" in 2018. This forecast could propel farm growth, help rural rejuvenation and possibly reduce inflation as well. India's government has been focusing on doubling farmers income and job creation, which together with a better weather forecast, could push demand in consumer-oriented sectors.

Contributors and detractors

Constituents in both the consumer staples and consumer discretionary sectors, the only two sectors in which the Fund is invested, contributed positively to the Fund's absolute returns during the annual period.

Positions in jewelry manufacturer and retailer and perfume producer Titan and diversified consumer products manufacturers Hindustan Unilever and Britannia Industries contributed most positively. Titan generated a triple-digit absolute gain, and Hindustan Unilever and Britannia Industries each produced a double-digit absolute gain during the annual period. Positions in auto manufacturer Tata Motors, automotive parts manufacturer Bosch and clothing, footwear and accessories retailer Aditya Birla Fashion and Retail detracted most. Each generated a double-digit negative absolute return during the annual period.

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 MSCI India Index is designed to measure the performance of the large and mid-cap segments of the Indian market. With 79 constituents, the index covers approximately 85% of the Indian equity universe.

Columbia ETF Trust II | Annual Report 2018
24



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia India Consumer ETF (INCO)

Investing involves risks, including the risk of loss of principal. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The Fund is passively managed and seeks to track the performance of an index. The Fund may not sell a poorly performing security unless it was removed from the index. There is no guarantee that the index will achieve positive returns. Risk exists that the index provider may not follow its methodology for index construction. Errors may result in a negative fund performance. The Fund's net value will generally decline when the market value of its targeted index declines. Foreign investments subject the Fund to risks, including political, economic, market, social and other risks impacting a particular country, as well as to currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. These risks are enhanced for emerging market issuers. Investment in or exposure to foreign currencies subjects the Fund to currency fluctuation and risk of loss. Investments in small- and mid-cap companies involve risks and volatility greater than investments in larger, more established companies. The Fund concentrates its investments in issuers of one or more particular industries to the same extent as the underlying index. Concentration in the India region, where issuers tend to be less developed than U.S. issuers, presents increased risk of loss than a fund that does not concentrate its investments. Investments in a narrowly focused sector such as consumer may exhibit higher volatility than investments with a broader focus. Although the Fund's shares are listed on an exchange, there can be no assurance that an active, liquid or otherwise orderly trading market for shares will be established or maintained. Active market trading may increase portfolio turnover, transaction costs and tracking error to the targeted index. The Fund may have portfolio turnover, which may cause an adverse cost impact. There may be additional portfolio turnover risk as active market trading of the Fund's shares may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions as well as tracking error to the Index and as high levels of transactions increase brokerage and other transaction costs and may result in increased taxable capital gains. See the Fund's prospectus for more information on these and other risks.

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.

Columbia ETF Trust II | Annual Report 2018
25



FUND AT A GLANCE

Columbia India Infrastructure ETF

Investment objective

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.

Portfolio management

Christopher Lo, Ph.D., CFA

Portfolio Manager

Managed Fund since September 2016

Average annual total returns (%) (for period ended March 31, 2018)

  

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

08/11/10

  

9.13

   

6.35

   

-2.07

  

Net Asset Value

 

08/11/10

  

8.41

   

6.11

   

-2.23

  

Indxx India Infrastructure Index

 

  

9.73

   

7.50

   

-1.11

  

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 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 & 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.

Columbia ETF Trust II | Annual Report 2018
26



FUND AT A GLANCE (continued)

Columbia India Infrastructure ETF

Performance of a hypothetical $10,000 investment (August 11, 2010 — March 31, 2018)

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.

Top ten holdings (%) (at March 31, 2018)

Ashok Leyland, Ltd.

  

6.0

  

GAIL India, Ltd.

  

5.7

  

Larsen & Toubro, Ltd.

  

5.6

  

JSW Steel, Ltd.

  

5.5

  

NTPC, Ltd.

  

5.0

  

Tata Steel, Ltd.

  

5.0

  

Bharti Airtel, Ltd.

  

4.9

  

UltraTech Cement, Ltd.

  

4.8

  

Adani Ports and Special Economic Zone, Ltd.

  

4.6

  

Eicher Motors, Ltd.

  

4.3

  

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.

Equity sector breakdown (%) (at March 31, 2018)

Energy

  

3.6

  

Industrials

  

37.3

  

Materials

  

26.0

  

Real Estate

  

1.9

  

Telecommunication Services

  

12.1

  

Utilities

  

19.1

  

Total

  

100.0

  

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

Columbia ETF Trust II | Annual Report 2018
27



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia India Infrastructure ETF (INXX)

For the 12-month period that ended March 31, 2018, the Fund returned 8.41% based on net asset value (NAV) and 9.13% based on market price. The Indxx India Infrastructure Index returned 9.73% during the same time period.

The Fund's NAV on March 31, 2017 was $12.98, and it ended the annual period on March 31, 2018 with a NAV of $13.98. The Fund's market price on March 31, 2018 was $14.16 per share.

Indian equities posted solid returns amid favorable reforms

The Indian equity market enjoyed solid returns during the annual period, as reforms by India's Prime Minister Narendra Modi took hold and a shift to more open investment policies drove an influx of foreign and institutional capital into the country. The MSCI India Index returned 10.23% for the annual period. While this was less than the 24.93% return of the MSCI Emerging Markets Index broadly during the same time period, it is well worth noting that for calendar year 2017, the MSCI India Index outperformed the broader MSCI Emerging Markets Index.

Significant tax reform via the Goods and Services Tax bill, passed by India's parliament at the end of March 2017 and launched on July 1, 2017, proved to be a positive shift for investors, as the country replaced and streamlined taxes on goods and services. Also, demonetization, put in place in November 2016, continued to benefit India's overall economy, as it was designed to reduce tax evasion and black-market activities. India's financials stocks showed particularly strong performance in the fourth quarter of 2017, driven by the late-October 2017 announcement of a recapitalization plan by the Indian government. The Indian government unveiled plans to inject $32.5 billion into its banks over the following two years in an effort to shore up the worsening balance sheets of the country's public-sector banks, boost liquidity in its economy and revive growth. Indian equities overall rallied to a record high on the news.

The start of 2018 saw a decline in Indian equities, mostly due to the concern over a fraud discovered at a state-owned bank. The reintroduction of long-term capital gains taxes, concerns about a trade conflict between the U.S. and China, and weak performance by Prime Minister Modi's party in two state by-elections also weighed on investor sentiment during the first quarter of 2018 as did heightened volatility in February and March 2018 across the global equity markets. (A by-election is a special election used to fill elected offices that have become vacant between general elections.)

Importantly, the fundamentals for India and its economy remained strong during the annual period. Its policy-driven, largely domestic-based economic growth, in synchronization with global economic growth provided a tailwind for its equity market performance. Also giving confidence to investors was the forecast by private agency Skymet that India's monsoon season would be "normal" in 2018. This forecast could propel farm growth, help rural rejuvenation and possibly reduce inflation as well. India's government has been focusing on doubling farmers income and job creation, which together with a better weather forecast, could push demand in consumer-oriented sectors.

Contributors and detractors

Constituents in the industrials and materials sectors contributed most positively to the Fund's absolute returns during the annual period. Constituents in the financials sector detracted, albeit modestly, from absolute returns.

Positions in transportation equipment manufacturer Ashok Leyland, integrated steel producer JSW Steel and base metals miner Vedanta contributed most positively. Each of these companies produced a double-digit absolute gain during the annual period. Positions in power plant equipment manufacturer Bharat Heavy Electricals, machinery manufacturer Cummins India and integrated steel producer Tata Steel detracted most. Each generated a double-digit negative absolute return during the annual period.

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 MSCI India Index is designed to measure the performance of the large and mid-cap segments of the Indian market. With 79 constituents, the index covers approximately 85% of the Indian equity universe.

Columbia ETF Trust II | Annual Report 2018
28



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia India Infrastructure ETF (INXX)

Investing involves risks, including the risk of loss of principal. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The Fund is passively managed and seeks to track the performance of an index. The Fund may not sell a poorly performing security unless it was removed from the index. There is no guarantee that the index will achieve positive returns. Risk exists that the index provider may not follow its methodology for index construction. Errors may result in a negative fund performance. The Fund's net value will generally decline when the market value of its targeted index declines. Foreign investments subject the Fund to risks, including political, economic, market, social and other risks impacting a particular country, as well as to currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. These risks are enhanced for emerging market issuers. Investment in or exposure to foreign currencies subjects the Fund to currency fluctuation and risk of loss. Investments in small- and mid-cap companies involve risks and volatility greater than investments in larger, more established companies. The Fund concentrates its investments in issuers of one or more particular industries to the same extent as the underlying index. Concentration in the India region, where issuers tend to be less developed than U.S. issuers, presents increased risk of loss than a fund that does not concentrate its investments. Investments in a narrowly focused sector such as consumer may exhibit higher volatility than investments with a broader focus. Although the Fund's shares are listed on an exchange, there can be no assurance that an active, liquid or otherwise orderly trading market for shares will be established or maintained. Active market trading may increase portfolio turnover, transaction costs and tracking error to the targeted index. The Fund may have portfolio turnover, which may cause an adverse cost impact. There may be additional portfolio turnover risk as active market trading of the Fund's shares may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions as well as tracking error to the Index and as high levels of transactions increase brokerage and other transaction costs and may result in increased taxable capital gains. See the Fund's prospectus for more information on these and other risks.

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.

Columbia ETF Trust II | Annual Report 2018
29




FUND AT A GLANCE

Columbia India Small Cap ETF

Investment objective

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.

Portfolio management

Christopher Lo, Ph.D., CFA

Portfolio Manager

Managed Fund since September 2016

Average annual total returns (%) (for period ended March 31, 2018)

  

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

07/07/10

  

8.51

   

10.78

   

0.74

  

Net Asset Value

 

07/07/10

  

7.61

   

10.42

   

0.57

  

Indxx India Small Cap Index

 

  

7.62

   

12.05

   

1.90

  

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 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.

Columbia ETF Trust II | Annual Report 2018
30



FUND AT A GLANCE (continued)

Columbia India Small Cap ETF

Performance of a hypothetical $10,000 Investment (July 7, 2010 — March 31, 2018)

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.

Top ten holdings (%) (at March 31, 2018)

KPIT Technologies, Ltd.

  

3.7

  

Karnataka Bank, Ltd. (The)

  

3.4

  

Multi Commodity Exchange of India, Ltd.

  

3.0

  

Sintex Plastics Technology, Ltd.

  

2.7

  

Repco Home Finance, Ltd.

  

2.5

  

PTC India, Ltd.

  

2.4

  

Meghmani Organics, Ltd.

  

2.4

  

Lakshmi Vilas Bank, Ltd. (The)

  

2.3

  

NOCIL, Ltd.

  

2.1

  

Venky's India, Ltd.

  

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.

Equity sector breakdown (%) (at March 31, 2018)

Consumer Discretionary

  

9.2

  

Consumer Staples

  

7.7

  

Energy

  

1.2

  

Financials

  

19.1

  

Health Care

  

5.5

  

Industrials

  

16.7

  

Information Technology

  

11.2

  

Materials

  

23.7

  

Real Estate

  

2.2

  

Telecommunication Services

  

1.1

  

Utilities

  

2.4

  

Total

  

100.0

  

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

Columbia ETF Trust II | Annual Report 2018
31



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia India Small Cap ETF (SCIN)

For the 12-month period that ended March 31, 2018, the Fund returned 7.61% based on net asset value (NAV) and 8.51% based on market price. The Indxx India Small Cap Index returned 7.62% during the same time period.

The Fund's NAV on March 31, 2017 was $18.26, and it ended the annual period on March 31, 2018 with a NAV of $19.50. The Fund's market price on March 31, 2018 was $19.76 per share.

Indian equities posted solid returns amid favorable reforms

The Indian equity market enjoyed solid returns during the annual period, as reforms by India's Prime Minister Narendra Modi took hold and a shift to more open investment policies drove an influx of foreign and institutional capital into the country. The MSCI India Index returned 10.23% for the annual period. While this was less than the 24.93% return of the MSCI Emerging Markets Index broadly during the same time period, it is well worth noting that for calendar year 2017, the MSCI India Index outperformed the broader MSCI Emerging Markets Index.

Significant tax reform via the Goods and Services Tax bill, passed by India's parliament at the end of March 2017 and launched on July 1, 2017, proved to be a positive shift for investors, as the country replaced and streamlined taxes on goods and services. Also, demonetization, put in place in November 2016, continued to benefit India's overall economy, as it was designed to reduce tax evasion and black-market activities. India's financials stocks showed particularly strong performance in the fourth quarter of 2017, driven by the late-October 2017 announcement of a recapitalization plan by the Indian government. The Indian government unveiled plans to inject $32.5 billion into its banks over the following two years in an effort to shore up the worsening balance sheets of the country's public-sector banks, boost liquidity in its economy and revive growth. Indian equities overall rallied to a record high on the news.

The start of 2018 saw a decline in Indian equities, mostly due to the concern over a fraud discovered at a state-owned bank. The reintroduction of long-term capital gains taxes, concerns about a trade conflict between the U.S. and China, and weak performance by Prime Minister Modi's party in two state by-elections also weighed on investor sentiment during the first quarter of 2018 as did heightened volatility in February and March 2018 across the global equity markets. (A by-election is a special election used to fill elected offices that have become vacant between general elections.)

Importantly, the fundamentals for India and its economy remained strong during the annual period. Its policy-driven, largely domestic-based economic growth, in synchronization with global economic growth provided a tailwind for its equity market performance. Also giving confidence to investors was the forecast by private agency Skymet that India's monsoon season would be "normal" in 2018. This forecast could propel farm growth, help rural rejuvenation and possibly reduce inflation as well. India's government has been focusing on doubling farmers income and job creation, which together with a better weather forecast, could push demand in consumer-oriented sectors.

Contributors and detractors

Constituents in the consumer discretionary, information technology and consumer staples sectors contributed most positively to the Fund's absolute returns during the annual period. Constituents in the financials, telecommunication services and health care sectors detracted most from absolute returns.

Positions in tea and coffee producer Tata Global Beverages, fast food chain owner and operator Jubilant Foodworks and textile and fabric manufacturer Bombay Dyeing & Manufacturing contributed most positively. Tata Global Beverages generated a triple-digit absolute gain, and Jubilant Foodworks and Bombay Dyeing & Manufacturing each produced a double-digit absolute gain during the annual period. Positions in wind generating equipment manufacturer Suzlon Energy, independent commodity futures markets exchange Multi Commodity Exchange of India and integrated telephone services provider Reliance Communications detracted most. Each generated a double-digit negative absolute return during the annual period.

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

Columbia ETF Trust II | Annual Report 2018
32



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia India Small Cap ETF (SCIN)

The MSCI India Index is designed to measure the performance of the large and mid-cap segments of the Indian market. With 79 constituents, the index covers approximately 85% of the Indian equity universe.

Investing involves risks, including the risk of loss of principal. Market risk may affect a single issuer, sector of the economy, industry or the market as a whole. The Fund is passively managed and seeks to track the performance of an index. The Fund may not sell a poorly performing security unless it was removed from the index. There is no guarantee that the index will achieve positive returns. Risk exists that the index provider may not follow its methodology for index construction. Errors may result in a negative fund performance. The Fund's net value will generally decline when the market value of its targeted index declines. Foreign investments subject the Fund to risks, including political, economic, market, social and other risks impacting a particular country, as well as to currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. These risks are enhanced for emerging market issuers. Investment in or exposure to foreign currencies subjects the Fund to currency fluctuation and risk of loss. Investments in small- and mid-cap companies involve risks and volatility greater than investments in larger, more established companies. The Fund concentrates its investments in issuers of one or more particular industries to the same extent as the underlying index. Concentration in the India region, where issuers tend to be less developed than U.S. issuers, presents increased risk of loss than a fund that does not concentrate its investments. Investments in a narrowly focused sector such as consumer may exhibit higher volatility than investments with a broader focus. Although the Fund's shares are listed on an exchange, there can be no assurance that an active, liquid or otherwise orderly trading market for shares will be established or maintained. Active market trading may increase portfolio turnover, transaction costs and tracking error to the targeted index. The Fund may have portfolio turnover, which may cause an adverse cost impact. There may be additional portfolio turnover risk as active market trading of the Fund's shares may cause more frequent creation or redemption activities that could, in certain circumstances, increase the number of portfolio transactions as well as tracking error to the Index and as high levels of transactions increase brokerage and other transaction costs and may result in increased taxable capital gains. See the Fund's prospectus for more information on these and other risks.

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.

Columbia ETF Trust II | Annual Report 2018
33



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, 2018.

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" 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, 2017 — March 31, 2018

  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

   

1,113.50

   

1,022.04

   

3.06

   

2.92

   

0.58

  

Columbia EM Core ex-China ETF

  

1,000.00

   

1,000.00

   

1,105.50

   

1,023.14

   

1.89

   

1.82

   

0.36

  

Columbia EM Quality Dividend ETF

  

1,000.00

   

1,000.00

   

1,082.70

   

1,021.09

   

4.00

   

3.88

   

0.77

  

Columbia Emerging Markets Consumer ETF

  

1,000.00

   

1,000.00

   

960.30

   

1,021.09

   

3.76

   

3.88

   

0.77

  

Columbia India Consumer ETF

  

1,000.00

   

1,000.00

   

1,078.20

   

1,020.64

   

4.46

   

4.33

   

0.86

  

Columbia India Infrastructure ETF

  

1,000.00

   

1,000.00

   

993.10

   

1,020.79

   

4.12

   

4.18

   

0.83

  

Columbia India Small Cap ETF

  

1,000.00

   

1,000.00

   

1,014.50

   

1,020.64

   

4.32

   

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 investment management fee caps for Columbia Beyond BRICs ETF and Columbia EM Core ex-China ETF through the period ended March 31, 2018.

Had the Investment Manager not waived fees or reimbursed a portion of expenses for Columbia Beyond BRICs ETF and Columbia EM Core ex-China ETF, account values at the end of the period would have been reduced.

Effective February 1, 2018, the investment management fee (unitary fee) rates are 0.59%, 0.59%, 0.75%, 0.75%, and 0.75% respectively for Columbia EM Quality Dividend ETF, Columbia Emerging Markets Consumer ETF, Columbia India Consumer ETF, Columbia India Infrastructure ETF and Columbia India Small Cap ETF. If these rates had been in place for the entire six month period ended March 31, 2018, the actual expenses paid would have been $3.06 for Columbia EM Quality Dividend ETF, $2.88 for Columbia Emerging Markets Consumer ETF, $3.94 for Columbia India Consumer ETF, $3.78 for Columbia India Infrastructure ETF and $3.97 Columbia India Small Cap ETF; and the hypothetical expenses paid would have been $2.97 for Columbia EM Quality Dividend ETF, $2.97 for Columbia Emerging Markets Consumer ETF, $3.83 for Columbia India Consumer ETF, $3.83 for Columbia India Infrastructure ETF and $3.98 for Columbia India Small Cap ETF.

Columbia ETF Trust II | Annual Report 2018
34



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, 2018.

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, 2018
   
     

0 - 49.9

   

328

   

289

  
     

50 - 99.9

   

332

   

240

  
     

100 - 199.9

   

116

   

97

  
     

> 200

   

5

   

7

  
     

Total

   

781

   

633

  
    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, 2018
   
     

0 - 49.9

   

176

   

89

  
     

50 - 99.9

   

214

   

33

  
     

100 - 199.9

   

115

   

11

  
     

> 200

   

9

   

1

  
     

Total

   

514

   

134

  
    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, 2018
   
     

0 - 49.9

   

399

   

479

  
     

50 - 99.9

   

183

   

382

  
     

100 - 199.9

   

49

   

156

  
     

> 200

   

8

   

18

  
     

Total

   

639

   

1035

  

Columbia ETF Trust II | Annual Report 2018
35



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 Emerging Markets Consumer ETF
September 14, 2010 – March 31, 2018
   
     

0 - 49.9

   

865

   

437

  
     

50 - 99.9

   

349

   

140

  
     

100 - 199.9

   

49

   

48

  
     

> 200

   

6

   

5

  
     

Total

   

1269

   

630

  
    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, 2018
   
     

0 - 49.9

   

439

   

330

  
     

50 - 99.9

   

331

   

167

  
     

100 - 199.9

   

241

   

89

  
     

> 200

   

59

   

14

  
     

Total

   

1070

   

600

  
    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, 2018
   
     

0 - 49.9

   

478

   

370

  
     

50 - 99.9

   

342

   

262

  
     

100 - 199.9

   

239

   

153

  
     

> 200

   

39

   

39

  
     

Total

   

1098

   

824

  
    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, 2018
   
     

0 - 49.9

   

448

   

370

  
     

50 - 99.9

   

288

   

282

  
     

100 - 199.9

   

223

   

247

  
     

> 200

   

35

   

54

  
     

Total

   

994

   

953

  

Columbia ETF Trust II | Annual Report 2018
36




PORTFOLIO OF INVESTMENTS

Columbia Beyond BRICs ETF

March 31, 2018

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 99.3%

Issuer

 

Shares

 

Value ($)

 

Bangladesh 4.7%

 

Beximco Pharmaceuticals Ltd.

  

499,337

   

617,118

  

BRAC Bank Ltd.

  

684,119

   

799,427

  

City Bank Ltd. (The)

  

1,097,268

   

522,383

  

Square Pharmaceuticals, Ltd.

  

376,064

   

1,401,537

  

Total Bangladesh

    

3,340,465

  

Chile 2.3%

 

Banco Santander Chile

  

4,708,829

   

396,950

  

Cencosud SA

  

101,499

   

310,770

  

Enel Americas SA

  

2,095,065

   

489,363

  

S.A.C.I. Falabella

  

42,626

   

411,263

  

Total Chile

    

1,608,346

  

Colombia 0.5%

 

Ecopetrol SA

  

360,257

   

337,285

  

Czech Republic 0.4%

 

CEZ AS

  

11,999

   

298,802

  

Hungary 1.2%

 

OTP Bank PLC

  

18,755

   

843,782

  

Indonesia 8.0%

 

PT Astra International Tbk

  

1,537,392

   

815,178

  

PT Bank Central Asia Tbk

  

733,151

   

1,240,779

  

PT Bank Mandiri Persero Tbk

  

1,406,681

   

784,186

  

PT Bank Negara Indonesia Persero Tbk

  

562,216

   

354,256

  

PT Bank Rakyat Indonesia Persero Tbk(a)

  

4,020,010

   

1,051,174

  

PT Hanjaya Mandala Sampoerna Tbk

  

664,292

   

192,038

  

PT Telekomunikasi Indonesia Persero Tbk

  

3,594,833

   

939,996

  

PT Unilever Indonesia Tbk

  

87,135

   

313,445

  

Total Indonesia

    

5,691,052

  

Kenya 2.2%

 

Safaricom PLC

  

4,981,420

   

1,528,951

  

Malaysia 9.8%

 

Axiata Group Bhd

  

334,713

   

472,475

  

CIMB Group Holdings Bhd

  

493,706

   

913,892

  

DiGi.Com Bhd

  

278,425

   

333,275

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

IHH Healthcare Bhd

  

212,006

   

328,861

  

Malayan Banking Bhd

  

446,013

   

1,213,045

  

Maxis Bhd

  

208,145

   

305,652

  

Petronas Chemicals Group Bhd

  

214,999

   

453,010

  

Public Bank Bhd

  

234,124

   

1,452,683

  

Sime Darby Bhd

  

268,071

   

181,579

  

Tenaga Nasional Bhd

  

309,396

   

1,292,616

  

Total Malaysia

    

6,947,088

  

Mexico 12.1%

 

America Movil SAB de CV Series L

  

2,242,346

   

2,119,071

  

Arca Continental SAB de CV

  

26,870

   

185,051

  

Cemex SAB de CV Series CPO(a)

  

1,107,058

   

729,608

  
Fomento Economico Mexicano SAB de CV
Series UBD
  

159,661

   

1,450,406

  

Grupo Bimbo SAB de CV Series A

  

181,932

   

396,486

  

Grupo Financiero Banorte SAB de CV Class O

  

185,580

   

1,129,838

  

Grupo Mexico SAB de CV Series B

  

253,727

   

841,656

  

Grupo Televisa SAB Series CPO

  

189,397

   

600,040

  

Industrias Penoles SAB de CV

  

9,439

   

189,913

  

Wal-Mart de Mexico SAB de CV

  

392,264

   

994,118

  

Total Mexico

    

8,636,187

  

Morocco 3.9%

 

Attijariwafa Bank

  

25,996

   

1,386,122

  

Maroc Telecom

  

87,991

   

1,421,375

  

Total Morocco

    

2,807,497

  

Nigeria 3.7%

 

Guaranty Trust Bank PLC

  

10,676,592

   

1,325,861

  

Zenith Bank PLC

  

16,467,438

   

1,340,453

  

Total Nigeria

    

2,666,314

  

Philippines 2.7%

 

Ayala Land, Inc.

  

526,377

   

414,625

  

BDO Unibank, Inc.

  

148,677

   

396,073

  

SM Investments Corp.

  

36,681

   

644,655

  

SM Prime Holdings, Inc.

  

685,260

   

442,590

  

Total Philippines

    

1,897,943

  

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

Columbia ETF Trust II | Annual Report 2018
37



PORTFOLIO OF INVESTMENTS (continued)

Columbia Beyond BRICs ETF

March 31, 2018

(Percentages represent value of investments compared to net assets)

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Poland 3.5%

 

Bank Pekao SA

  

11,909

   

428,686

  

Polski Koncern Naftowy Orlen SA

  

23,598

   

579,530

  

Polskie Gornictwo Naftowe i Gazownictwo SA

  

131,993

   

217,721

  

Powszechna Kasa Oszczednosci Bank Polski SA(a)

  

64,797

   

765,011

  

Powszechny Zaklad Ubezpieczen SA

  

42,603

   

519,276

  

Total Poland

    

2,510,224

  

Qatar 1.3%

 

Industries Qatar QSC

  

11,469

   

330,988

  

Qatar National Bank QPSC

  

17,510

   

625,048

  

Total Qatar

    

956,036

  

Romania 2.2%

 

Banca Transilvania SA

  

2,264,713

   

1,574,273

  

South Africa 14.5%

 

Aspen Pharmacare Holdings, Ltd.

  

22,586

   

494,581

  

Barclays Africa Group, Ltd.

  

39,391

   

630,655

  

FirstRand, Ltd.

  

193,985

   

1,095,271

  

MTN Group, Ltd.

  

109,209

   

1,096,998

  

Naspers, Ltd. N Shares

  

8,360

   

2,040,366

  

Remgro, Ltd.

  

31,137

   

583,388

  

Sanlam, Ltd.

  

102,127

   

735,219

  

Sasol, Ltd.

  

33,505

   

1,140,223

  

Shoprite Holdings, Ltd.

  

26,604

   

567,118

  

Standard Bank Group, Ltd.

  

76,889

   

1,419,060

  

Steinhoff International Holdings NV(a)

  

157,872

   

43,969

  

Vodacom Group, Ltd.

  

36,125

   

466,687

  

Total South Africa

    

10,313,535

  

Sri Lanka 2.0%

 

John Keells Holdings PLC

  

1,361,201

   

1,395,297

  

Thailand 11.0%

 

Advanced Info Service PCL NVDR

  

85,071

   

560,429

  

Airports of Thailand PCL NVDR

  

327,928

   

692,141

  

Bangkok Bank PCL NVDR

  

38,175

   

241,722

  

Bangkok Dusit Medical Services PCL NVDR

  

652,707

   

490,522

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 
CP ALL PCL NVDR  

397,245

   

1,108,399

  

Kasikornbank PCL NVDR

  

90,203

   

611,546

  

PTT Exploration & Production PCL NVDR

  

104,589

   

382,969

  

PTT PCL NVDR

  

109,233

   

1,914,285

  

Siam Cement PCL (The) NVDR

  

63,488

   

1,002,976

  

Siam Commercial Bank PCL NVDR

  

180,900

   

830,161

  

Total Thailand

    

7,835,150

  

Turkey 1.8%

 

Akbank TAS

  

155,302

   

374,788

  

KOC Holding AS

  

64,764

   

266,158

  

Turkiye Garanti Bankasi AS

  

158,682

   

436,622

  

Turkiye Is Bankasi AS Class C

  

106,841

   

192,300

  

Total Turkey

    

1,269,868

  

United Arab Emirates 5.2%

 

Emaar Properties PJSC

  

266,035

   

420,093

  

Emirates Telecommunications Group Co. PJSC

  

131,897

   

633,810

  

First Abu Dhabi Bank PJSC

  

822,969

   

2,621,491

  

Total United Arab Emirates

    

3,675,394

  

Vietnam 6.3%

 

Hoa Phat Group JSC(a)

  

493,799

   

1,316,249

  

No Va Land Investment Group Corp.(a)

  

461,264

   

1,340,748

  

Thanh Thanh Cong — Bien Hoa JSC(a)

  

410,420

   

307,687

  

Vietnam Dairy Products JSC

  

164,270

   

1,490,778

  

Vingroup JSC(a)

  

2

   

10

  

Total Vietnam

    

4,455,472

  
Total Common Stocks
(Cost: $64,798,556)
    

70,588,961

  

Money Market Fund 0.4%

  

Shares

 

Value ($)

 
Goldman Sachs Financial Square Funds — Treasury
Instruments Fund, Institutional Shares, 1.538%(b)
(Cost: $289,679)
  

289,679

   

289,679

  
Total Investments in Securities
(Cost: $65,088,235)
    

70,878,640

  

Other Assets & Liabilities, Net

    

248,573

  

Net Assets

    

71,127,213

  

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

Columbia ETF Trust II | Annual Report 2018
38



PORTFOLIO OF INVESTMENTS (continued)

Columbia Beyond BRICs ETF

March 31, 2018

Notes to Portfolio of Investments

(a)  Non-income producing security.

(b)  The rate shown is the seven-day current annualized yield at March 31, 2018.

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. 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.

Columbia ETF Trust II | Annual Report 2018
39



PORTFOLIO OF INVESTMENTS (continued)

Columbia Beyond BRICs ETF

March 31, 2018

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2018:

  Level 1
quoted prices
in active
markets for
identical
assets ($)
 Level 2
other
significant
observable
inputs ($)
 Level 3
significant
unobservable
inputs ($)
 

Total ($)

 

Investments in Securities

 

Common Stocks

 

Bangladesh

  

3,340,465

   

   

   

3,340,465

  

Chile

  

1,608,346

   

   

   

1,608,346

  

Colombia

  

337,285

   

   

   

337,285

  

Czech Republic

  

298,802

   

   

   

298,802

  

Hungary

  

843,782

   

   

   

843,782

  

Indonesia

  

5,691,052

   

   

   

5,691,052

  

Kenya

  

1,528,951

   

   

   

1,528,951

  

Malaysia

  

6,947,088

   

   

   

6,947,088

  

Mexico

  

8,636,187

   

   

   

8,636,187

  

Morocco

  

2,807,497

   

   

   

2,807,497

  

Nigeria

  

2,666,314

   

   

   

2,666,314

  

Philippines

  

1,897,943

   

   

   

1,897,943

  

Poland

  

2,510,224

   

   

   

2,510,224

  

Qatar

  

956,036

   

   

   

956,036

  

Romania

  

1,574,273

   

   

   

1,574,273

  

South Africa

  

10,313,535

   

   

   

10,313,535

  

Sri Lanka

  

1,395,297

   

   

   

1,395,297

  

Thailand

  

7,835,150

   

   

   

7,835,150

  

Turkey

  

1,269,868

   

   

   

1,269,868

  

United Arab Emirates

  

3,675,394

   

   

   

3,675,394

  

Vietnam

  

4,455,472

   

   

   

4,455,472

  

Total Common Stocks

  

70,588,961

   

   

   

70,588,961

  

Money Market Fund

  

289,679

   

   

   

289,679

  

Total Investments in Securities

  

70,878,640

   

   

   

70,878,640

  

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.

Columbia ETF Trust II | Annual Report 2018
40



PORTFOLIO OF INVESTMENTS

Columbia EM Core ex-China ETF

March 31, 2018

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 91.1%

Issuer

 

Shares

 

Value ($)

 

Brazil 5.7%

 

Ambev SA

  

16,795

   

121,632

  

B3 SA - Brasil Bolsa Balcao

  

8,134

   

65,319

  

Banco do Brasil SA

  

3,447

   

42,553

  
BRF SA(a)  

3,697

   

25,395

  

Kroton Educacional SA

  

8,894

   

36,394

  

Ultrapar Participacoes SA

  

1,610

   

34,355

  

Vale SA

  

18,769

   

238,368

  

Total Brazil

    

564,016

  

Chile 1.1%

 

Cia Cervecerias Unidas SA

  

2,916

   

42,927

  

Empresas COPEC SA

  

4,163

   

65,388

  

Total Chile

    

108,315

  

India 10.9%

 

HDFC Bank, Ltd. ADR

  

4,118

   

406,735

  

ICICI Bank, Ltd. ADR

  

30,293

   

268,093

  

Infosys, Ltd. ADR

  

13,326

   

237,869

  

Tata Motors, Ltd. ADR(a)

  

5,958

   

153,121

  

Total India

    

1,065,818

  

Indonesia 3.3%

 

PT Astra International Tbk

  

94,956

   

50,349

  

PT Bank Central Asia Tbk

  

84,396

   

142,831

  

PT Bank Mandiri Persero Tbk

  

144,682

   

80,656

  

PT Telekomunikasi Indonesia Persero Tbk

  

208,129

   

54,423

  

Total Indonesia

    

328,259

  

Malaysia 4.4%

 

Dialog Group BHD

  

210,100

   

160,780

  

IHH Healthcare Bhd

  

66,700

   

103,464

  

Petronas Dagangan Bhd

  

11,500

   

73,436

  

Tenaga Nasional Bhd

  

23,400

   

97,762

  

Total Malaysia

    

435,442

  

Mexico 4.2%

 

Cemex SAB de CV Series CPO(a)

  

81,765

   

53,887

  

Coca-Cola Femsa SAB de CV Series L

  

11,499

   

75,740

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Grupo Bimbo SAB de CV Series A

  

24,276

   

52,905

  

Grupo Mexico SAB de CV Series B

  

28,804

   

95,548

  

Grupo Televisa SAB Series CPO

  

14,926

   

47,288

  

Wal-Mart de Mexico SAB de CV

  

34,910

   

88,473

  

Total Mexico

    

413,841

  

Philippines 1.1%

 

JG Summit Holdings, Inc.

  

27,370

   

32,890

  

Semirara Mining & Power Corp.

  

55,100

   

31,997

  

SM Investments Corp.

  

2,370

   

41,652

  

Total Philippines

    

106,539

  

Poland 2.5%

 

Powszechna Kasa Oszczednosci Bank Polski SA(a)

  

11,495

   

135,713

  

Powszechny Zaklad Ubezpieczen SA

  

9,088

   

110,771

  

Total Poland

    

246,484

  

Russia 4.8%

 

Gazprom PJSC ADR

  

16,873

   

82,104

  

LUKOIL PJSC ADR

  

2,897

   

199,603

  

Sberbank of Russia PJSC ADR

  

10,236

   

190,697

  

Total Russia

    

472,404

  

South Africa 9.4%

 

AngloGold Ashanti, Ltd.

  

4,027

   

38,242

  

Aspen Pharmacare Holdings, Ltd.

  

2,132

   

46,686

  

Bid Corp., Ltd.

  

5,325

   

115,836

  

Bidvest Group, Ltd. (The)

  

5,472

   

103,494

  

FirstRand, Ltd.

  

8,220

   

46,411

  

MTN Group, Ltd.

  

6,479

   

65,081

  

Naspers, Ltd. N Shares

  

885

   

215,996

  

Remgro, Ltd.

  

2,066

   

38,709

  

Sanlam, Ltd.

  

10,355

   

74,546

  

Sasol, Ltd.

  

2,639

   

89,809

  

Standard Bank Group, Ltd.

  

4,458

   

82,277

  

Steinhoff International Holdings NV(a)

  

14,265

   

3,973

  

Total South Africa

    

921,060

  

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

Columbia ETF Trust II | Annual Report 2018
41



PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Core ex-China ETF

March 31, 2018

(Percentages represent value of investments compared to net assets)

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

South Korea 19.3%

 

Celltrion, Inc.(a)

  

706

   

209,829

  

Hana Financial Group, Inc.

  

1,191

   

50,952

  

Hyundai Motor Co.

  

905

   

121,838

  

KB Financial Group, Inc.

  

3,065

   

177,131

  

Kia Motors Corp.

  

2,044

   

61,076

  

Korea Electric Power Corp.

  

1,654

   

51,052

  

KT&G Corp.

  

646

   

60,606

  

LG Chem, Ltd.

  

156

   

56,493

  

POSCO

  

394

   

124,569

  

Samsung C&T Corp.

  

337

   

43,315

  

Samsung Electronics Co., Ltd.

  

270

   

621,109

  

Shinhan Financial Group Co., Ltd.

  

2,947

   

124,831

  

SK Hynix, Inc.

  

2,470

   

186,078

  

Total South Korea

    

1,888,879

  

Taiwan 16.7%

 

Advanced Semiconductor Engineering, Inc.

  

30,249

   

43,729

  

Asia Pacific Telecom Co., Ltd.(a)

  

162,000

   

50,672

  

China Steel Corp.

  

87,904

   

69,944

  

Chipbond Technology Corp.

  

25,000

   

58,734

  

Chunghwa Telecom Co., Ltd.

  

24,465

   

93,557

  

CTBC Financial Holding Co., Ltd.

  

70,546

   

50,568

  

Far Eastern New Century Corp.

  

71,765

   

64,610

  

Far EasTone Telecommunications Co., Ltd.

  

19,248

   

50,832

  

Formosa Chemicals & Fibre Corp.

  

11,882

   

44,419

  

Formosa Petrochemical Corp.

  

12,000

   

48,770

  

Formosa Plastics Corp.

  

27,233

   

96,203

  

Hon Hai Precision Industry Co., Ltd.

  

45,985

   

141,944

  

MediaTek, Inc.

  

6,409

   

72,757

  

Nan Ya Plastics Corp.

  

38,576

   

108,225

  

President Chain Store Corp.

  

10,375

   

104,259

  

Standard Foods Corp.

  

23,536

   

55,133

  

Taiwan Semiconductor Manufacturing Co., Ltd.

  

57,459

   

480,845

  

Total Taiwan

    

1,635,201

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Thailand 6.0%

 

Airports of Thailand PCL NVDR

  

48,200

   

101,733

  

BTS Group Holdings PCL NVDR

  

439,655

   

116,698

  
CP ALL PCL NVDR  

19,700

   

54,967

  

Home Product Center PCL NVDR

  

110,500

   

49,119

  

PTT PCL

  

6,000

   

105,149

  

Siam Cement PCL (The)

  

3,300

   

52,133

  

Siam Commercial Bank PCL (The)

  

15,800

   

72,507

  

Thai Union Group PCL NVDR

  

55,796

   

33,367

  

Total Thailand

    

585,673

  

Turkey 1.7%

 

Haci Omer Sabanci Holding AS

  

15,682

   

41,487

  

Turkiye Garanti Bankasi AS

  

26,183

   

72,044

  

Turkiye Is Bankasi Class C

  

31,575

   

56,831

  

Total Turkey

    

170,362

  
Total Common Stocks
(Cost: $7,078,385)
    

8,942,293

  

Preferred Stocks 8.1%

Issuer

 

Shares

 

Value ($)

 

Brazil 8.1%

 

Banco Bradesco SA Preference Shares

  

6,565

   

78,023

  

Itau Unibanco Holding SA Preference Shares

  

16,852

   

260,162

  

Itausa — Investimentos Itau SA Preference Shares

  

32,824

   

136,191

  

Petroleo Brasileiro SA Preference Shares(a)

  

40,792

   

262,774

  

Telefonica Brasil SA Preference Shares

  

3,634

   

55,107

  

Total Brazil

    

792,257

  
Total Preferred Stocks
(Cost: $440,010)
    

792,257

  

Money Market Fund 0.4%

  

Shares

 

Value ($)

 
Goldman Sachs Financial Square Funds — Treasury
Instruments Fund, Institutional Shares, 1.538%(b)
(Cost: $36,426)
  

36,426

   

36,426

  
Total Investments in Securities
(Cost: $7,554,821)
    

9,770,976

  

Other Assets & Liabilities, Net

    

39,533

  

Net Assets

    

9,810,509

  

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

Columbia ETF Trust II | Annual Report 2018
42



PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Core ex-China ETF

March 31, 2018

Notes to Portfolio of Investments

(a)  Non-income producing security.

(b)  The rate shown is the seven-day current annualized yield at March 31, 2018.

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. 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.

Columbia ETF Trust II | Annual Report 2018
43



PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Core ex-China ETF

March 31, 2018

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2018:

  Level 1
quoted prices
in active
markets for
identical
assets ($)
 Level 2
other
significant
observable
inputs ($)
 Level 3
significant
unobservable
inputs ($)
 

Total ($)

 

Investments in Securities

 

Common Stocks

 

Brazil

  

564,016

   

   

   

564,016

  

Chile

  

108,315

   

   

   

108,315

  

India

  

1,065,818

   

   

   

1,065,818

  

Indonesia

  

328,259

   

   

   

328,259

  

Malaysia

  

435,442

   

   

   

435,442

  

Mexico

  

413,841

   

   

   

413,841

  

Philippines

  

106,539

   

   

   

106,539

  

Poland

  

246,484

   

   

   

246,484

  

Russia

  

472,404

   

   

   

472,404

  

South Africa

  

921,060

   

   

   

921,060

  

South Korea

  

1,888,879

   

   

   

1,888,879

  

Taiwan

  

1,635,201

   

   

   

1,635,201

  

Thailand

  

585,673

   

   

   

585,673

  

Turkey

  

170,362

   

   

   

170,362

  

Total Common Stocks

  

8,942,293

   

   

   

8,942,293

  

Preferred Stocks

 

Brazil

  

792,257

   

   

   

792,257

  

Total Preferred Stocks

  

792,257

   

   

   

792,257

  

Money Market Fund

  

36,426

   

   

   

36,426

  

Total Investments in Securities

  

9,770,976

   

   

   

9,770,976

  

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.

Columbia ETF Trust II | Annual Report 2018
44



PORTFOLIO OF INVESTMENTS

Columbia EM Quality Dividend ETF

March 31, 2018

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 97.3%

Issuer

 

Shares

 

Value ($)

 

Brazil 6.1%

 

Ambev SA

  

30,984

   

224,391

  

CCR SA

  

61,453

   

231,124

  

Ultrapar Participacoes SA

  

10,702

   

228,362

  

Total Brazil

    

683,877

  

China 11.8%

 

AAC Technologies Holdings, Inc.

  

12,058

   

217,552

  

China Merchants Bank Co., Ltd. Class H

  

54,207

   

222,055

  

China Overseas Land & Investment, Ltd.

  

63,495

   

220,460

  

China Resources Land, Ltd.

  

60,643

   

220,603

  

Country Garden Holdings Co., Ltd.

  

112,744

   

232,145

  

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

  

20,789

   

211,379

  

Total China

    

1,324,194

  

Hong Kong 4.0%

 

Hong Kong & China Gas Co., Ltd.

  

108,640

   

223,141

  

Link REIT

  

25,894

   

221,054

  

Total Hong Kong

    

444,195

  

India 12.0%

 

Bharat Petroleum Corp., Ltd.

  

35,179

   

230,556

  

Bharti Infratel, Ltd.

  

42,531

   

219,203

  

Indian Oil Corp., Ltd.

  

86,222

   

233,462

  

Infosys, Ltd.

  

12,463

   

216,272

  

NTPC, Ltd.

  

85,513

   

222,496

  

Power Grid Corp. of India, Ltd.

  

74,903

   

221,936

  

Total India

    

1,343,925

  

Indonesia 7.9%

 

PT Astra International Tbk

  

423,882

   

224,756

  

PT Bank Rakyat Indonesia Persero Tbk(a)

  

856,594

   

223,987

  

PT Telekomunikasi Indonesia Persero Tbk

  

842,551

   

220,315

  

PT Unilever Indonesia Tbk

  

60,495

   

217,615

  

Total Indonesia

    

886,673

  

Malaysia 8.1%

 

Maxis Bhd

  

150,858

   

221,529

  

Petronas Chemicals Group Bhd

  

107,190

   

225,852

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Public Bank Bhd

  

36,579

   

226,964

  

Tenaga Nasional Bhd

  

55,631

   

232,419

  

Total Malaysia

    

906,764

  

Poland 2.0%

 

Polski Koncern Naftowy Orlen SA

  

8,895

   

218,447

  

Qatar 1.9%

 

Qatar National Bank QPSC

  

6,035

   

215,429

  

South Africa 9.8%

 

FirstRand, Ltd.

  

38,259

   

216,017

  

Mondi, Ltd.

  

8,281

   

225,204

  

Sanlam, Ltd.

  

29,006

   

208,816

  

Standard Bank Group, Ltd.

  

12,001

   

221,490

  

Vodacom Group, Ltd.

  

17,501

   

226,089

  

Total South Africa

    

1,097,616

  

South Korea 6.2%

 

Kia Motors Corp.

  

7,736

   

231,158

  

KT&G Corp.

  

2,453

   

230,134

  

S-Oil Corp.

  

2,070

   

232,072

  

Total South Korea

    

693,364

  

Taiwan 13.9%

 

Advanced Semiconductor Engineering, Inc.

  

155,377

   

224,617

  

Formosa Chemicals & Fibre Corp.

  

59,326

   

221,783

  

Formosa Plastics Corp.

  

62,448

   

220,604

  

Hon Hai Precision Industry Co., Ltd.

  

72,188

   

222,825

  

Nan Ya Plastics Corp.

  

79,390

   

222,729

  

Taiwan Semiconductor Manufacturing Co., Ltd.

  

26,636

   

222,903

  

Uni-President Enterprises Corp.

  

95,968

   

224,804

  

Total Taiwan

    

1,560,265

  

Thailand 7.8%

 

Kasikornbank PCL

  

31,675

   

214,745

  

PTT PCL

  

12,721

   

222,933

  

Siam Cement PCL (The) NVDR

  

13,944

   

220,286

  

Siam Commercial Bank PCL (The)

  

48,015

   

220,344

  

Total Thailand

    

878,308

  

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

Columbia ETF Trust II | Annual Report 2018
45



PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Quality Dividend ETF

March 31, 2018

(Percentages represent value of investments compared to net assets)

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

United Arab Emirates 5.8%

 

DP World, Ltd.

  

9,323

   

209,768

  

Emaar Properties PJSC

  

139,540

   

220,346

  

Emirates Telecommunications Group Co. PJSC

  

46,044

   

221,257

  

Total United Arab Emirates

    

651,371

  
Total Common Stocks
(Cost: $10,012,581)
    

10,904,428

  

Preferred Stock 2.0%

Issuer

 

Shares

 

Value ($)

 

Chile 2.0%

 
Sociedad Quimica y Minera de Chile SA Class B
(Cost: $250,264)
  

4,631

   

225,556

  
Total Investments in Securities
(Cost: $10,262,845)
    

11,129,984

  

Other Assets & Liabilities, Net

    

72,848

  

Net Assets

    

11,202,832

  

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

Columbia ETF Trust II | Annual Report 2018
46



PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Quality Dividend ETF

March 31, 2018

Fair Value Measurements (continued)

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, 2018:

  Level 1
quoted prices
in active
markets for
identical
assets ($)
 Level 2
other
significant
observable
inputs ($)
 Level 3
significant
unobservable
inputs ($)
 

Total ($)

 

Investments in Securities

 

Common Stocks

 

Brazil

  

683,877

   

   

   

683,877

  

China

  

1,324,194

   

   

   

1,324,194

  

Hong Kong

  

444,195

   

   

   

444,195

  

India

  

1,343,925

   

   

   

1,343,925

  

Indonesia

  

886,673

   

   

   

886,673

  

Malaysia

  

906,764

   

   

   

906,764

  

Poland

  

218,447

   

   

   

218,447

  

Qatar

  

215,429

   

   

   

215,429

  

South Africa

  

1,097,616

   

   

   

1,097,616

  

South Korea

  

693,364

   

   

   

693,364

  

Taiwan

  

1,560,265

   

   

   

1,560,265

  

Thailand

  

878,308

   

   

   

878,308

  

United Arab Emirates

  

651,371

   

   

   

651,371

  

Total Common Stocks

  

10,904,428

   

   

   

10,904,428

  

Preferred Stocks

 

Chile

  

225,556

   

   

   

225,556

  

Total Preferred Stocks

  

225,556

   

   

   

225,556

  

Total Investments in Securities

  

11,129,984

   

   

   

11,129,984

  

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.

Columbia ETF Trust II | Annual Report 2018
47




PORTFOLIO OF INVESTMENTS (Consolidated)

Columbia Emerging Markets Consumer ETF

March 31, 2018

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 99.8%

Issuer

 

Shares

 

Value ($)

 

Brazil 12.6%

 

Ambev SA ADR

  

6,162,599

   

44,802,095

  
BRF SA ADR(a)  

2,372,885

   

16,420,364

  

Kroton Educacional SA

  

4,676,943

   

19,137,810

  

Lojas Renner SA

  

2,117,589

   

21,885,661

  

Total Brazil

    

102,245,930

  

Chile 3.3%

 

S.A.C.I. Falabella

  

2,767,659

   

26,702,855

  

China 28.2%

 

China Mengniu Dairy Co., Ltd.(a)

  

7,497,149

   

25,696,432

  

Ctrip.com International, Ltd. ADR(a)

  

728,002

   

33,939,453

  

Geely Automobile Holdings, Ltd.

  

10,149,225

   

29,225,754

  

Hengan International Group Co., Ltd.

  

2,239,182

   

20,741,884

  

JD.com, Inc. ADR(a)

  

1,027,532

   

41,604,771

  
New Oriental Education & Technology
Group, Inc. ADR
  

306,008

   

26,821,601

  

Want Want China Holdings, Ltd.

  

23,306,583

   

18,679,001

  

Yum China Holdings, Inc.

  

765,301

   

31,759,992

  

Total China

    

228,468,888

  

India 14.6%

 

Hindustan Unilever, Ltd.

  

1,519,181

   

31,057,148

  

ITC, Ltd.

  

6,908,020

   

27,061,532

  

Maruti Suzuki India, Ltd.

  

240,075

   

32,616,883

  

Tata Motors, Ltd. ADR(a)

  

1,080,605

   

27,771,549

  

Total India

    

118,507,112

  

Indonesia 3.1%

 

PT Astra International Tbk

  

48,250,042

   

25,583,825

  

Malaysia 2.3%

 

Genting Bhd

  

8,142,094

   

18,313,397

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Mexico 10.5%

 
Fomento Economico Mexicano SAB de CV
Series UBD
  

3,839,892

   

34,882,674

  

Grupo Televisa SAB Series CPO

  

6,619,311

   

20,971,033

  

Wal-Mart de Mexico SAB de CV

  

11,531,796

   

29,225,129

  

Total Mexico

    

85,078,836

  

Philippines 2.9%

 

SM Investments Corp.

  

1,318,639

   

23,174,586

  

Russia 2.4%

 

Magnit PJSC GDR

  

1,048,762

   

19,333,927

  

South Africa 14.1%

 

Naspers, Ltd. N Shares

  

287,295

   

70,118,044

  

Shoprite Holdings, Ltd.

  

1,133,327

   

24,159,150

  

Tiger Brands, Ltd.

  

629,051

   

19,749,507

  

Total South Africa

    

114,026,701

  

Thailand 5.8%

 
CP ALL PCL  

10,238,305

   

28,567,064

  

Thai Beverage PCL

  

30,728,044

   

18,277,949

  

Total Thailand

    

46,845,013

  
Total Common Stocks
(Cost: $725,228,204)
    

808,281,070

  

Money Market Fund 0.2%

  

Shares

 

Value ($)

 
Goldman Sachs Financial Square Funds — Treasury
Instruments Fund, Institutional Shares, 1.538%(b)
(Cost: $1,238,005)
  

1,238,005

   

1,238,005

  
Total Investments in Securities
(Cost: $726,466,209)
    

809,519,075

  

Other Assets & Liabilities, Net

    

391,952

  

Net Assets

    

809,911,027

  

Notes to Consolidated Portfolio of Investments

(a)  Non-income producing security.

(b)  The rate shown is the seven-day current annualized yield at March 31, 2018.

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

Columbia ETF Trust II | Annual Report 2018
48



PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia Emerging Markets Consumer ETF

March 31, 2018

Abbreviation Legend

ADR  American Depositary Receipts

GDR  Global 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. 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.

Columbia ETF Trust II | Annual Report 2018
49



PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia Emerging Markets Consumer ETF

March 31, 2018

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2018:

  Level 1
quoted prices
in active
markets for
identical
assets ($)
 Level 2
other
significant
observable
inputs ($)
 Level 3
significant
unobservable
inputs ($)
 

Total ($)

 

Investments in Securities

 

Common Stocks

 

Brazil

  

102,245,930

   

   

   

102,245,930

  

Chile

  

26,702,855

   

   

   

26,702,855

  

China

  

228,468,888

   

   

   

228,468,888

  

India

  

118,507,112

   

   

   

118,507,112

  

Indonesia

  

25,583,825

   

   

   

25,583,825

  

Malaysia

  

18,313,397

   

   

   

18,313,397

  

Mexico

  

85,078,836

   

   

   

85,078,836

  

Philippines

  

23,174,586

   

   

   

23,174,586

  

Russia

  

19,333,927

   

   

   

19,333,927

  

South Africa

  

114,026,701

   

   

   

114,026,701

  

Thailand

  

46,845,013

   

   

   

46,845,013

  

Total Common Stocks

  

808,281,070

   

   

   

808,281,070

  

Money Market Fund

  

1,238,005

   

   

   

1,238,005

  

Total Investments in Securities

  

809,519,075

   

   

   

809,519,075

  

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.

Columbia ETF Trust II | Annual Report 2018
50



PORTFOLIO OF INVESTMENTS (Consolidated)

Columbia India Consumer ETF

March 31, 2018

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 101.3%

Issuer

 

Shares

 

Value ($)

 

Consumer Discretionary 55.6%

 

Bajaj Auto, Ltd.

  

157,092

   

6,610,843

  

Balkrishna Industries, Ltd.

  

137,049

   

2,245,532

  

Bharat Forge, Ltd.

  

437,933

   

4,697,820

  

Bosch, Ltd.

  

16,286

   

4,499,021

  

Future Retail, Ltd.(a)

  

246,179

   

2,078,992

  

Hero MotoCorp, Ltd.

  

128,671

   

6,989,325

  

Mahindra & Mahindra, Ltd.

  

633,162

   

7,173,125

  

Maruti Suzuki India, Ltd.

  

53,269

   

7,237,192

  

Motherson Sumi Systems, Ltd.

  

1,414,427

   

6,743,401

  

MRF, Ltd.

  

4,519

   

5,024,208

  

Page Industries, Ltd.

  

6,614

   

2,300,394

  

Rajesh Exports, Ltd.

  

98,254

   

1,114,179

  

Sun TV Network, Ltd.

  

108,887

   

1,416,729

  

Tata Motors, Ltd.(a)

  

1,350,728

   

6,768,996

  

Titan Co., Ltd.

  

563,958

   

8,147,865

  

Zee Entertainment Enterprises, Ltd.

  

811,934

   

7,164,303

  

Total

    

80,211,925

  

Consumer Staples 45.7%

 

Avenue Supermarts, Ltd.(a)(b)

  

176,016

   

3,575,282

  

Britannia Industries, Ltd.

  

95,347

   

7,266,474

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Colgate-Palmolive India, Ltd.

  

240,950

   

3,904,530

  

Dabur India, Ltd.

  

1,018,850

   

5,130,046

  

Emami, Ltd.

  

113,466

   

1,859,475

  

GlaxoSmithKline Consumer Healthcare, Ltd.

  

20,942

   

1,958,678

  

Godrej Consumer Products, Ltd.

  

417,706

   

7,004,175

  

Hindustan Unilever, Ltd.

  

354,870

   

7,254,731

  

ITC, Ltd.

  

1,779,274

   

6,970,142

  

Marico, Ltd.

  

874,694

   

4,372,685

  

Nestle India, Ltd.

  

60,328

   

7,588,023

  

Procter & Gamble Hygiene & Health Care, Ltd.

  

17,231

   

2,524,546

  

United Breweries, Ltd.

  

119,248

   

1,733,000

  

United Spirits, Ltd.(a)

  

99,880

   

4,792,722

  

Total

    

65,934,509

  
Total Common Stocks
(Cost: $111,576,974)
    

146,146,434

  

Money Market Fund 0.3%

  

Shares

 

Value ($)

 
Goldman Sachs Financial Square Funds — Treasury
Instruments Fund, Institutional Shares, 1.538%(c)
(Cost: $500,240)
  

500,240

   

500,240

  
Total Investments in Securities
(Cost: $112,077,214)
    

146,646,674

  

Other Assets & Liabilities, Net

    

(2,357,506

)

 

Net Assets

    

144,289,168

  

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, 2018, the value of this security amounted to $3,575,282, which represents 2.48% of net assets.

(c)  The rate shown is the seven-day current annualized yield at March 31, 2018.

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.

Columbia ETF Trust II | Annual Report 2018
51



PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Consumer ETF

March 31, 2018

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. 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 following table is a summary of the inputs used to value the Fund's investments as of March 31, 2018:

  Level 1
quoted prices
in active
markets for
identical
assets ($)
 Level 2
other
significant
observable
inputs ($)
 Level 3
significant
unobservable
inputs ($)
 

Total ($)

 

Investments in Securities

 

Common Stocks

 

Consumer Discretionary

  

80,211,925

   

   

   

80,211,925

  

Consumer Staples

  

65,934,509

   

   

   

65,934,509

  

Total Common Stocks

  

146,146,434

   

   

   

146,146,434

  

Money Market Fund

  

500,240

   

   

   

500,240

  

Total Investments in Securities

  

146,646,674

   

   

   

146,646,674

  

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.

Columbia ETF Trust II | Annual Report 2018
52



PORTFOLIO OF INVESTMENTS (Consolidated)

Columbia India Infrastructure ETF

March 31, 2018

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 100.8%

Issuer

 

Shares

 

Value ($)

 

Energy 3.6%

 

Petronet LNG, Ltd.

  

512,796

   

1,815,810

  

Industrials 37.6%

 

Adani Ports and Special Economic Zone, Ltd.

  

422,242

   

2,292,426

  

Amara Raja Batteries, Ltd.

  

54,049

   

658,814

  

Ashok Leyland, Ltd.

  

1,356,713

   

3,025,587

  

Bharat Heavy Electricals, Ltd.

  

958,117

   

1,195,044

  

Container Corp. of India, Ltd.

  

76,638

   

1,463,040

  

Cummins India, Ltd.

  

95,957

   

1,030,238

  

Eicher Motors, Ltd.

  

4,981

   

2,166,827

  

Havells India, Ltd.

  

145,394

   

1,087,529

  

Larsen & Toubro, Ltd.

  

138,652

   

2,786,786

  

NBCC India, Ltd.

  

154,333

   

450,540

  

Siemens, Ltd.

  

61,386

   

1,009,755

  

Voltas, Ltd.

  

159,195

   

1,515,511

  

Total

    

18,682,097

  

Materials 26.2%

 

Ambuja Cements, Ltd.

  

517,474

   

1,848,243

  

JSW Steel, Ltd.

  

618,737

   

2,733,585

  

Shree Cement, Ltd.

  

5,616

   

1,394,617

  

Tata Steel, Ltd.

  

287,641

   

2,518,447

  

UltraTech Cement, Ltd.

  

39,387

   

2,385,382

  

Vedanta, Ltd.

  

493,824

   

2,103,732

  

Total

    

12,984,006

  

Real Estate 2.0%

 

DLF, Ltd.

  

316,568

   

976,811

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Telecommunication Services 12.2%

 

Bharti Airtel, Ltd.

  

403,130

   

2,464,332

  

Bharti Infratel, Ltd.

  

391,980

   

2,020,249

  

Idea Cellular, Ltd.(a)

  

964,686

   

1,122,627

  

Tata Communications, Ltd.

  

45,030

   

428,161

  

Total

    

6,035,369

  

Utilities 19.2%

 

CESC, Ltd.

  

84,799

   

1,256,220

  

GAIL India, Ltd.

  

571,300

   

2,877,886

  

Indraprastha Gas Ltd.

  

247,261

   

1,059,419

  

NTPC, Ltd.

  

969,822

   

2,523,375

  

Reliance Power, Ltd.(a)

  

477,814

   

264,468

  

Tata Power Co., Ltd. (The)

  

1,279,804

   

1,550,167

  

Total

    

9,531,535

  
Total Common Stocks
(Cost: $39,761,562)
    

50,025,628

  

Money Market Fund 0.3%

  

Shares

 

Value ($)

 
Goldman Sachs Financial Square Funds — Treasury
Instruments Fund, Institutional Shares, 1.538%(b)
(Cost: $134,570)
  

134,570

   

134,570

  
Total Investments in Securities
(Cost: $39,896,132)
    

50,160,198

  

Other Assets & Liabilities, Net

    

(547,888

)

 

Net Assets

    

49,612,310

  

Notes to Consolidated Portfolio of Investments

(a)  Non-income producing security.

(b)  The rate shown is the seven-day current annualized yield at March 31, 2018.

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

Columbia ETF Trust II | Annual Report 2018
53



PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Infrastructure ETF

March 31, 2018

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. 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.

Columbia ETF Trust II | Annual Report 2018
54



PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Infrastructure ETF

March 31, 2018

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments as of March 31, 2018:

  Level 1
quoted prices
in active
markets for
identical
assets ($)
 Level 2
other
significant
observable
inputs ($)
 Level 3
significant
unobservable
inputs ($)
 

Total ($)

 

Investments in Securities

 

Common Stocks

 

Energy

  

1,815,810

   

   

   

1,815,810

  

Industrials

  

18,682,097

   

   

   

18,682,097

  

Materials

  

12,984,006

   

   

   

12,984,006

  

Real Estate

  

976,811

   

   

   

976,811

  

Telecommunication Services

  

6,035,369

   

   

   

6,035,369

  

Utilities

  

9,531,535

   

   

   

9,531,535

  

Total Common Stocks

  

50,025,628

   

   

   

50,025,628

  

Money Market Fund

  

134,570

   

   

   

134,570

  

Total Investments in Securities

  

50,160,198

   

   

   

50,160,198

  

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.

Columbia ETF Trust II | Annual Report 2018
55



PORTFOLIO OF INVESTMENTS (Consolidated)

Columbia India Small Cap ETF

March 31, 2018

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 99.8%

Issuer

 

Shares

 

Value ($)

 

Consumer Discretionary 9.1%

 

Eros International Media, Ltd.(a)

  

113,984

   

290,458

  

Indo Count Industries, Ltd.

  

139,920

   

182,350

  

Jamna Auto Industries, Ltd.

  

298,405

   

359,156

  

JK Tyre & Industries, Ltd.

  

178,465

   

445,877

  

Kesoram Industries, Ltd.(a)

  

209,043

   

346,954

  

Shankara Building Products, Ltd.

  

20,195

   

542,730

  

Sintex Industries, Ltd.

  

896,867

   

246,831

  

Trident, Ltd.

  

188,385

   

171,137

  

Total

    

2,585,493

  

Consumer Staples 7.7%

 

Balrampur Chini Mills, Ltd.

  

278,656

   

323,210

  

Dwarikesh Sugar Industries, Ltd.

  

330,800

   

127,559

  

Kaveri Seed Co., Ltd.

  

54,469

   

403,705

  

Kwality, Ltd.

  

121,953

   

110,413

  

LT Foods, Ltd.

  

261,003

   

340,152

  

Parag Milk Foods, Ltd.(b)

  

77,381

   

296,133

  

Venky's India, Ltd.

  

9,712

   

576,421

  

Total

    

2,177,593

  

Energy 1.2%

 

Aban Offshore, Ltd.(a)

  

61,138

   

148,483

  

Hindustan Oil Exploration Co., Ltd.(a)

  

117,198

   

198,469

  

Total

    

346,952

  

Financials 19.0%

 

Andhra Bank(a)

  

545,401

   

347,870

  

Central Depository Services India, Ltd.(a)

  

80,730

   

349,858

  

IFCI, Ltd.(a)

  

1,455,169

   

436,182

  

Karnataka Bank, Ltd. (The)

  

541,612

   

954,149

  

Lakshmi Vilas Bank, Ltd. (The)

  

422,406

   

637,932

  

Multi Commodity Exchange of India, Ltd.

  

82,876

   

847,989

  

Oriental Bank of Commerce(a)

  

297,840

   

418,299

  

Repco Home Finance, Ltd.

  

81,299

   

700,970

  

SREI Infrastructure Finance, Ltd.

  

361,282

   

407,138

  

Tourism Finance Corp. of India, Ltd.

  

121,567

   

283,407

  

Total

    

5,383,794

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Health Care 5.5%

 

Granules India, Ltd.

  

264,708

   

419,050

  

Marksans Pharma, Ltd.

  

428,137

   

207,761

  

Morepen Laboratories, Ltd.(a)

  

528,692

   

249,667

  

Suven Life Sciences, Ltd.

  

98,668

   

253,244

  

Unichem Laboratories, Ltd.

  

93,899

   

410,743

  

Total

    

1,540,465

  

Industrials 16.7%

 

Force Motors, Ltd.

  

10,046

   

420,960

  

Future Enterprises, Ltd.

  

467,744

   

256,743

  

Gati, Ltd.

  

138,881

   

186,533

  

Gayatri Highways, Ltd.(a)(c)(d)

  

99,938

   

10,167

  

Gayatri Projects, Ltd.(a)

  

160,951

   

495,771

  

Hindustan Construction Co., Ltd.(a)

  

1,084,185

   

369,032

  

KEI Industries, Ltd.

  

77,314

   

456,380

  

Mercator, Ltd.

  

405,814

   

214,973

  

Praj Industries, Ltd.

  

211,705

   

260,648

  

Reliance Naval and Engineering, Ltd.(a)

  

458,016

   

192,415

  

Shipping Corp. of India, Ltd.(a)

  

342,435

   

336,808

  

Sintex Plastics Technology, Ltd.(a)

  

850,351

   

749,677

  

Texmaco Rail & Engineering, Ltd.

  

216,705

   

277,104

  

Titagarh Wagons, Ltd.

  

117,548

   

197,711

  

Welspun Enterprises, Ltd.

  

130,642

   

283,130

  

Total

    

4,708,052

  

Information Technology 11.2%

 

8K Miles Software Services, Ltd.

  

19,795

   

203,362

  

Firstsource Solutions, Ltd.(a)

  

537,303

   

436,620

  

HCL Infosystems, Ltd.(a)

  

405,830

   

317,027

  

Intellect Design Arena, Ltd.(a)

  

142,521

   

361,210

  

Just Dial, Ltd.(a)

  

66,644

   

452,712

  

KPIT Technologies, Ltd.

  

317,508

   

1,054,194

  

NIIT, Ltd.(a)

  

216,180

   

330,625

  

Total

    

3,155,750

  

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

Columbia ETF Trust II | Annual Report 2018
56



PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Small Cap ETF

March 31, 2018

(Percentages represent value of investments compared to net assets)

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Materials 23.7%

 

Advanced Enzyme Technologies, Ltd.

  

153,615

   

502,145

  

Bhansali Engineering Polymers, Ltd.

  

146,013

   

381,925

  

Camlin Fine Sciences, Ltd.(a)

  

167,943

   

260,714

  

Deepak Nitrite, Ltd.

  

136,878

   

520,257

  

GHCL, Ltd.

  

111,639

   

442,385

  

Jai Corp., Ltd.

  

99,564

   

204,099

  

Jindal Saw, Ltd.

  

244,495

   

445,155

  

JK Paper, Ltd.

  

142,129

   

294,406

  

Kiri Industries, Ltd.(a)

  

31,378

   

201,195

  

Maithan Alloys, Ltd.

  

15,071

   

181,728

  

Meghmani Organics, Ltd.

  

522,891

   

675,443

  

Nilkamal, Ltd.

  

11,989

   

279,378

  

NOCIL, Ltd.

  

198,548

   

584,030

  

Phillips Carbon Black, Ltd.

  

32,118

   

534,597

  

Prakash Industries, Ltd.(a)

  

145,429

   

377,053

  

Tata Metaliks, Ltd.

  

25,448

   

289,960

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Tata Sponge Iron, Ltd.

  

14,483

   

204,216

  

Thirumalai Chemicals, Ltd.

  

12,112

   

316,181

  

Total

    

6,694,867

  

Real Estate 2.2%

 

Housing Development & Infrastructure, Ltd.(a)

  

546,791

   

323,606

  

Omaxe, Ltd.

  

90,171

   

304,917

  

Total

    

628,523

  

Telecommunication Services 1.1%

 

Himachal Futuristic Communications, Ltd.(a)

  

794,062

   

314,719

  

Utilities 2.4%

 

PTC India, Ltd.

  

504,763

   

676,405

  
Total Investments in Securities
(Cost: $30,817,461)
    

28,212,613

  

Other Assets & Liabilities, Net

    

69,431

  

Net Assets

    

28,282,044

  

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, 2018, the value of this security amounted to $296,133, which represents 1.05% of net assets.

(c)  Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At March 31, 2018, the value of these securities amounted to $10,167, which represents 0.04% of net assets.

(d)  Valuation based on significant unobservable inputs.

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. 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.

Columbia ETF Trust II | Annual Report 2018
57



PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Small Cap ETF

March 31, 2018

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, 2018:

  Level 1
quoted prices
in active
markets for
identical
assets ($)
 Level 2
other
significant
observable
inputs ($)
 Level 3
significant
unobservable
inputs ($)
 

Total ($)

 

Investments in Securities

 

Common Stocks

 

Consumer Discretionary

  

2,585,493

   

   

   

2,585,493

  

Consumer Staples

  

2,177,593

   

   

   

2,177,593

  

Energy

  

346,952

   

   

   

346,952

  

Financials

  

5,383,794

   

   

   

5,383,794

  

Health Care

  

1,540,465

   

   

   

1,540,465

  

Industrials

  

4,697,885

   

   

10,167

   

4,708,052

  

Information Technology

  

3,155,750

   

   

   

3,155,750

  

Materials

  

6,694,867

   

   

   

6,694,867

  

Real Estate

  

628,523

   

   

   

628,523

  

Telecommunication Services

  

314,719

   

   

   

314,719

  

Utilities

  

676,405

   

   

   

676,405

  

Total Common Stocks

  

28,202,446

   

   

10,167

   

28,212,613

  

Total Investments in Securities

  

28,202,446

   

   

10,167

   

28,212,613

  

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

Columbia ETF Trust II | Annual Report 2018
58



PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Small Cap ETF

March 31, 2018

Fair Value Measurements (continued)

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 Fund's assets assigned to the Level 3 category are valued utilizing the valuation technique deemed the most appropriate in the circumstances. Certain common stock classified as Level 3 are valued using a 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, the movement in observed market prices for other securities from the issuer and 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.

The Fund does not hold any significant investments (greater than one percent of net assets) categorized as Level 3.

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

Columbia ETF Trust II | Annual Report 2018
59




STATEMENT OF ASSETS AND LIABILITIES

March 31, 2018

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

Assets

 

Investments in securities, at value

 

Unaffiliated issuers (cost $65,088,235, $7,554,821, $10,262,845, respectively)

 

$

70,878,640

  

$

9,770,976

  

$

11,129,984

  

Cash

  

   

   

  

Foreign cash (cost $54,376, $1,253, $26,346, respectively)

  

54,334

   

1,253

   

26,282

  

Receivable for:

 

Investment sold

  

   

   

62,627

  

Capital shares sold

  

   

   

  

Dividends

  

222,874

   

40,876

   

37,387

  

Foreign tax reclaims

  

17,144

   

358

   

8,817

  

Expense reimbursement due from Investment Manager

  

16,502

   

2,953

   

  

Total assets

  

71,189,494

   

9,816,416

   

11,265,097

  

Liabilities

 

Payable for:

 

Investment purchased

  

   

   

15,372

  

Capital shares purchased

  

   

   

  

Investment management fees

  

51,951

   

5,907

   

5,714

  

Due to custodian

  

10,119

   

   

41,179

  

Accrued expenses and other liabilities

  

211

   

   

  

Total liabilities

  

62,281

   

5,907

   

62,265

  

Net assets applicable to outstanding capital stock

 

$

71,127,213

  

$

9,810,509

  

$

11,202,832

  

Represented by:

 

Paid-in capital

 

$

126,196,170

  

$

7,630,250

  

$

37,308,790

  

Undistributed (accumulated) net investment income (loss)

  

447,628

   

38,617

   

(9,998

)

 

Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions

  

(61,307,478

)

  

(74,586

)

  

(26,963,841

)

 

Net unrealized appreciation (depreciation) on:

 

Investments — unaffiliated issuers

  

5,790,405

   

2,216,155

   

867,139

  

Foreign currency translations

  

488

   

73

   

742

  

Total — representing net assets applicable to outstanding capital stock

 

$

71,127,213

  

$

9,810,509

  

$

11,202,832

  

Shares outstanding

  

3,650,000

   

350,000

   

700,000

  

Net asset value per share

 

$

19.49

  

$

28.03

  

$

16.00

  

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

Columbia ETF Trust II | Annual Report 2018
60



STATEMENT OF ASSETS AND LIABILITIES (continued)

March 31, 2018

  Columbia Emerging
Markets Consumer ETF
(Consolidated)
 Columbia India
Consumer ETF
(Consolidated)
 Columbia India
Infrastructure ETF
(Consolidated)
 

Assets

 

Investments in securities, at value

 

Unaffiliated issuers (cost $726,466,209, $112,077,214, $39,896,132, respectively)

 

$

809,519,075

  

$

146,646,674

  

$

50,160,198

  

Cash

  

3,763,440

   

2,916

   

424

  

Foreign cash (cost $82,552, $4,678, $177,630, respectively)

  

86,969

   

4,671

   

177,532

  

Receivable for:

 

Investment sold

  

426,026

   

   

  

Capital shares sold

  

990

   

   

  

Dividends

  

434,122

   

18,849

   

5,942

  

Foreign tax reclaims

  

101,573

   

   

  

Expense reimbursement due from Investment Manager

  

   

   

  

Total assets

  

814,332,195

   

146,673,110

   

50,344,096

  

Liabilities

 

Payable for:

 

Investment purchased

  

3,992,169

   

   

  

Capital shares purchased

  

1,601

   

2,290,304

   

698,765

  

Investment management fees

  

427,398

   

93,638

   

33,021

  

Due to custodian

  

   

   

  

Accrued expenses and other liabilities

  

   

   

  

Total liabilities

  

4,421,168

   

2,383,942

   

731,786

  

Net assets applicable to outstanding capital stock

 

$

809,911,027

  

$

144,289,168

  

$

49,612,310

  

Represented by:

 

Paid-in capital

 

$

908,439,384

  

$

117,608,840

  

$

100,471,798

  

Undistributed (accumulated) net investment income (loss)

  

(666,235

)

  

(211,068

)

  

214,089

  
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency
transactions
  

(180,919,405

)

  

(7,678,057

)

  

(61,337,545

)

 

Net unrealized appreciation (depreciation) on:

 

Investments — unaffiliated issuers

  

83,052,866

   

34,569,460

   

10,264,066

  

Foreign currency translations

  

4,417

   

(7

)

  

(98

)

 

Total — representing net assets applicable to outstanding capital stock

 

$

809,911,027

  

$

144,289,168

  

$

49,612,310

  

Shares outstanding

  

30,750,000

   

3,150,000

   

3,550,000

  

Net asset value per share

 

$

26.34

  

$

45.81

  

$

13.98

  

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

Columbia ETF Trust II | Annual Report 2018
61



STATEMENT OF ASSETS AND LIABILITIES (continued)

March 31, 2018

  Columbia India
Small Cap ETF
(Consolidated)
 

Assets

 

Investments in securities, at value

 

Unaffiliated issuers (cost $30,817,461)

 

$

28,212,613

  

Cash

  

  

Foreign cash (cost $1,685)

  

262

  

Receivable for:

 

Investment sold

  

350,453

  

Capital shares sold

  

  

Dividends

  

46

  

Foreign tax reclaims

  

  

Expense reimbursement due from Investment Manager

  

  

Total assets

  

28,563,374

  

Liabilities

 

Payable for:

 

Investment purchased

  

  

Capital shares purchased

  

  

Investment management fees

  

19,293

  

Due to custodian

  

262,037

  

Accrued expenses and other liabilities

  

  

Total liabilities

  

281,330

  

Net assets applicable to outstanding capital stock

 

$

28,282,044

  

Represented by:

 

Paid-in capital

 

$

37,963,999

  

Undistributed (accumulated) net investment income (loss)

  

(427,545

)

 

Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions

  

(6,648,139

)

 

Net unrealized appreciation (depreciation) on:

 

Investments — unaffiliated issuers

  

(2,604,848

)

 

Foreign currency translations

  

(1,423

)

 

Total — representing net assets applicable to outstanding capital stock

 

$

28,282,044

  

Shares outstanding

  

1,450,000

  

Net asset value per share

 

$

19.50

  

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

Columbia ETF Trust II | Annual Report 2018
62



STATEMENT OF OPERATIONS

For the Year Ended March 31, 2018

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

Investment Income:

 

Dividends — unaffiliated issuers

 

$

2,552,128

  

$

297,859

  

$

440,384

  

Miscellaneous income

  

780

   

   

10,421

  

Foreign taxes withheld

  

(181,349

)

  

(33,103

)

  

(37,862

)

 

Total income

  

2,371,559

   

264,756

   

412,943

  

Expenses:

 

Investment management fees

  

615,584

   

67,265

   

99,580

  

Line of credit interest

  

107

   

342

   

  

Overdraft expense

  

3,662

   

72

   

557

  

Tax expense

  

57

   

57

   

57

  

Total expenses

  

619,410

   

67,736

   

100,194

  

Fees waived by the Investment Manager and its affiliates

  

(195,538

)

  

(33,633

)

  

  

Total net expenses

  

423,872

   

34,103

   

100,194

  

Net investment income (loss)

  

1,947,687

   

230,653

   

312,749

  

Realized and unrealized gain (loss) — net

 

Net realized gain (loss) on:

 

Investments — unaffiliated issuers

  

(965,735

)

  

667,488

   

1,111,500

  

In-kind transactions

  

(85,837

)

  

380,012

   

143,268

  

Foreign currency translations

  

(232,434

)

  

(3,112

)

  

(60,992

)

 

Net realized gain (loss)

  

(1,284,006

)

  

1,044,388

   

1,193,776

  

Change in net unrealized appreciation (depreciation) on:

 

Investments — unaffiliated issuers

  

14,515,779

   

665,473

   

662,688

  

Foreign currency translations

  

(13,906

)

  

(1,953

)

  

309

  

Net change in unrealized appreciation (depreciation)

  

14,501,873

   

663,520

   

662,997

  

Net realized and unrealized gain

  

13,217,867

   

1,707,908

   

1,856,773

  

Net increase in net assets resulting from operations

 

$

15,165,554

  

$

1,938,561

  

$

2,169,522

  

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

Columbia ETF Trust II | Annual Report 2018
63



STATEMENT OF OPERATIONS (continued)

For the Year Ended March 31, 2018

  Columbia Emerging
Markets Consumer ETF
(Consolidated)
 Columbia India
Consumer ETF
(Consolidated)
 Columbia India
Infrastructure ETF
(Consolidated)
 

Investment Income:

 

Dividends — unaffiliated issuers

 

$

11,392,279

  

$

1,165,159

  

$

1,093,573

  

Miscellaneous income

  

1,805

   

26

   

  

Foreign taxes withheld

  

(881,764

)

  

   

  

Total income

  

10,512,320

   

1,165,185

   

1,093,573

  

Expenses:

 

Investment management fees

  

7,179,708

   

1,138,876

   

435,467

  

Line of credit interest

  

   

6,915

   

  

Overdraft expense

  

9,825

   

   

200

  

Tax expense

  

6,237

   

3,137

   

2,481

  

Total expenses

  

7,195,770

   

1,148,928

   

438,148

  

Fees waived by the Investment Manager and its affiliates

  

   

   

  

Total net expenses

  

7,195,770

   

1,148,928

   

438,148

  

Net investment income (loss)

  

3,316,550

   

16,257

   

655,425

  

Realized and unrealized gain (loss) — net

 

Net realized gain (loss) on:

 

Investments — unaffiliated issuers

  

(31,096,170

)

  

1,635,040

   

1,636,525

  

In-kind transactions

  

20,173,105

   

   

  

Foreign currency translations

  

(693,857

)

  

(199,422

)

  

(99,030

)

 

Net realized gain (loss)

  

(11,616,922

)

  

1,435,618

   

1,537,495

  

Change in net unrealized appreciation (depreciation) on:

 

Investments — unaffiliated issuers

  

64,476,243

   

18,167,358

   

956,276

  

Foreign currency translations

  

(288

)

  

(386

)

  

(211

)

 

Net change in unrealized appreciation (depreciation)

  

64,475,955

   

18,166,972

   

956,065

  

Net realized and unrealized gain

  

52,859,033

   

19,602,590

   

2,493,560

  

Net increase in net assets resulting from operations

 

$

56,175,583

  

$

19,618,847

  

$

3,148,985

  

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

Columbia ETF Trust II | Annual Report 2018
64



STATEMENT OF OPERATIONS (continued)

For the Year Ended March 31, 2018

  Columbia India
Small Cap ETF
(Consolidated)
 

Investment Income:

 

Dividends — unaffiliated issuers

 

$

270,030

  

Miscellaneous income

  

  

Foreign taxes withheld

  

  

Total income

  

270,030

  

Expenses:

 

Investment management fees

  

257,981

  

Line of credit interest

  

1,616

  

Overdraft expense

  

2,141

  

Tax expense

  

3,377

  

Total expenses

  

265,115

  

Fees waived by the Investment Manager and its affiliates

  

  

Total net expenses

  

265,115

  

Net investment income (loss)

  

4,915

  

Realized and unrealized gain (loss) — net

 

Net realized gain (loss) on:

 

Investments — unaffiliated issuers

  

5,517,806

  

In-kind transactions

  

  

Foreign currency translations

  

(161,491

)

 

Net realized gain (loss)

  

5,356,315

  

Change in net unrealized appreciation (depreciation) on:

 

Investments — unaffiliated issuers

  

(3,723,269

)

 

Foreign currency translations

  

(1,886

)

 

Net change in unrealized appreciation (depreciation)

  

(3,725,155

)

 

Net realized and unrealized gain

  

1,631,160

  

Net increase in net assets resulting from operations

 

$

1,636,075

  

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

Columbia ETF Trust II | Annual Report 2018
65



STATEMENT OF CHANGES IN NET ASSETS

  

Columbia Beyond BRICs ETF

 

Columbia EM Core ex-China ETF

 
  For the
Year Ended
March 31, 2018
 For the
Year Ended
March 31, 2017
 For the
Year Ended
March 31, 2018
 For the
Year Ended
March 31, 2017
 

Operations

 

Net investment income

 

$

1,947,687

  

$

1,842,439

  

$

230,653

  

$

167,212

  

Net realized gain (loss)

  

(1,284,006

)

  

(8,419,986

)

  

1,044,388

   

(140,318

)

 

Net change in unrealized appreciation

  

14,501,873

   

9,887,345

   

663,520

   

1,479,033

  

Net increase (decrease) in net assets resulting from operations

  

15,165,554

   

3,309,798

   

1,938,561

   

1,505,927

  

Distributions to shareholders

 

Net investment income

  

(1,818,029

)

  

(1,842,516

)

  

(212,870

)

  

(126,499

)

 

Net realized gain

  

   

   

(617,043

)

  

  

Total distributions to shareholders

  

(1,818,029

)

  

(1,842,516

)

  

(829,913

)

  

(126,499

)

 

Shareholder transactions

 

Proceeds from shares sold

  

   

6,254,796

   

3,931,470

   

8,767,910

  

Cost of shares redeemed

  

(13,238,286

)

  

(28,946,398

)

  

(6,438,578

)

  

  

Transaction fees

  

   

   

   

(56

)

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

(13,238,286

)

  

(22,691,602

)

  

(2,507,108

)

  

8,767,854

  

Increase (decrease) in net assets

  

109,239

   

(21,224,320

)

  

(1,398,460

)

  

10,147,282

  

Net Assets:

 

Net assets at beginning of year

  

71,017,974

   

92,242,294

   

11,208,969

   

1,061,687

  

Net assets at end of year

 

$

71,127,213

  

$

71,017,974

  

$

9,810,509

  

$

11,208,969

  

Undistributed (accumulated) net investment income (loss)

 

$

447,628

  

$

550,404

  

$

38,617

  

$

18,063

  

Capital stock activity

 

Shares outstanding, beginning of year

  

4,400,000

   

5,850,000

   

450,000

   

50,000

  

Subscriptions

  

   

400,000

   

150,000

   

400,000

  

Redemptions

  

(750,000

)

  

(1,850,000

)

  

(250,000

)

  

  

Shares outstanding, end of year

  

3,650,000

   

4,400,000

   

350,000

   

450,000

  

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

Columbia ETF Trust II | Annual Report 2018
66



STATEMENT OF CHANGES IN NET ASSETS (continued)

  

Columbia EM Quality Dividend ETF

 Columbia Emerging Markets
Consumer ETF (Consolidated)
 
  For the
Year Ended
March 31, 2018
 For the
Year Ended
March 31, 2017
 For the
Year Ended
March 31, 2018
 For the
Year Ended
March 31, 2017
 

Operations

 

Net investment income

 

$

312,749

  

$

405,712

  

$

3,316,550

  

$

5,104,759

  

Net realized gain (loss)

  

1,193,776

   

(194,219

)

  

(11,616,922

)

  

(26,324,004

)

 

Net change in unrealized appreciation

  

662,997

   

1,024,212

   

64,475,955

   

83,727,682

  

Net increase (decrease) in net assets resulting from operations

  

2,169,522

   

1,235,705

   

56,175,583

   

62,508,437

  

Distributions to shareholders

 

Net investment income

  

(279,712

)

  

(331,695

)

  

(3,335,918

)

  

(4,854,400

)

 

Net realized gain

  

   

   

   

  

Total distributions to shareholders

  

(279,712

)

  

(331,695

)

  

(3,335,918

)

  

(4,854,400

)

 

Shareholder transactions

 

Proceeds from shares sold

  

   

656,756

   

102,899,683

   

82,309,612

  

Cost of shares redeemed

  

(3,767,028

)

  

(4,492,266

)

  

(87,000,586

)

  

(11,152,187

)

 

Transaction fees

  

   

   

1,275

   

(158

)

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

(3,767,028

)

  

(3,835,510

)

  

15,900,372

   

71,157,267

  

Increase (decrease) in net assets

  

(1,877,218

)

  

(2,931,500

)

  

68,740,037

   

128,811,304

  

Net Assets:

 

Net assets at beginning of year

  

13,080,050

   

16,011,550

   

741,170,990

   

612,359,686

  

Net assets at end of year

 

$

11,202,832

  

$

13,080,050

  

$

809,911,027

  

$

741,170,990

  

Undistributed (accumulated) net investment income (loss)

 

$

(9,998

)

 

$

511

  

$

(666,235

)

 

$

(23,291

)

 

Capital stock activity

 

Shares outstanding, beginning of year

  

950,000

   

1,250,000

   

29,950,000

   

27,100,000

  

Subscriptions

  

   

50,000

   

3,900,000

   

3,350,000

  

Redemptions

  

(250,000

)

  

(350,000

)

  

(3,100,000

)

  

(500,000

)

 

Shares outstanding, end of year

  

700,000

   

950,000

   

30,750,000

   

29,950,000

  

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

Columbia ETF Trust II | Annual Report 2018
67



STATEMENT OF CHANGES IN NET ASSETS (continued)

  Columbia India
Consumer ETF (Consolidated)
 Columbia India
Infrastructure ETF (Consolidated)
 
  For the
Year Ended
March 31, 2018
 For the
Year Ended
March 31, 2017
 For the
Year Ended
March 31, 2018
 For the
Year Ended
March 31, 2017
 

Operations

 

Net investment income (loss)

 

$

16,257

  

$

(74,888

)

 

$

655,425

  

$

116,095

  

Net realized gain (loss)

  

1,435,618

   

536,341

   

1,537,495

   

(1,068,304

)

 

Net change in unrealized appreciation (depreciation)

  

18,166,972

   

16,322,930

   

956,065

   

10,975,992

  

Net increase (decrease) in net assets resulting from operations

  

19,618,847

   

16,784,383

   

3,148,985

   

10,023,783

  

Distributions to shareholders

 

Net investment income

  

(79,763

)

  

(72,600

)

  

(363,029

)

  

(1,015,616

)

 

Shareholder transactions

 

Proceeds from shares sold

  

52,477,343

   

15,312,097

   

23,501,348

   

3,069,689

  

Cost of shares redeemed

  

(15,827,789

)

  

(15,598,335

)

  

(18,202,473

)

  

(10,483,631

)

 

Transaction fees

  

(975

)

  

(3,220

)

  

(1,199

)

  

(3,795

)

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

36,648,579

   

(289,458

)

  

5,297,676

   

(7,417,737

)

 

Increase in net assets

  

56,187,663

   

16,422,325

   

8,083,632

   

1,590,430

  

Net Assets:

 

Net assets at beginning of year

  

88,101,505

   

71,679,180

   

41,528,678

   

39,938,248

  

Net assets at end of year

 

$

144,289,168

  

$

88,101,505

  

$

49,612,310

  

$

41,528,678

  

Undistributed (accumulated) net investment income (loss)

 

$

(211,068

)

 

$

49,782

  

$

214,089

  

$

40,258

  

Capital stock activity

 

Shares outstanding, beginning of year

  

2,300,000

   

2,300,000

   

3,200,000

   

3,900,000

  

Subscriptions

  

1,200,000

   

450,000

   

1,600,000

   

250,000

  

Redemptions

  

(350,000

)

  

(450,000

)

  

(1,250,000

)

  

(950,000

)

 

Shares outstanding, end of year

  

3,150,000

   

2,300,000

   

3,550,000

   

3,200,000

  

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

Columbia ETF Trust II | Annual Report 2018
68



STATEMENT OF CHANGES IN NET ASSETS (continued)

  Columbia India Small Cap
ETF (Consolidated)
 
  For the
Year Ended
March 31, 2018
 For the
Year Ended
March 31, 2017
 

Operations

 

Net investment income (loss)

 

$

4,915

  

$

(23,533

)

 

Net realized gain (loss)

  

5,356,315

   

2,856,803

  

Net change in unrealized appreciation (depreciation)

  

(3,725,155

)

  

3,589,799

  

Net increase (decrease) in net assets resulting from operations

  

1,636,075

   

6,423,069

  

Distributions to shareholders

 

Net investment income

  

(247,725

)

  

(160,975

)

 

Shareholder transactions

 

Proceeds from shares sold

  

7,647,176

   

2,653,031

  

Cost of shares redeemed

  

(6,314,661

)

  

(2,373,895

)

 

Transaction fees

  

(3,706

)

  

(3,344

)

 

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

  

1,328,809

   

275,792

  

Increase in net assets

  

2,717,159

   

6,537,886

  

Net Assets:

 

Net assets at beginning of year

  

25,564,885

   

19,026,999

  

Net assets at end of year

 

$

28,282,044

  

$

25,564,885

  

Undistributed (accumulated) net investment income (loss)

 

$

(427,545

)

 

$

(17,874

)

 

Capital stock activity

 

Shares outstanding, beginning of year

  

1,400,000

   

1,400,000

  

Subscriptions

  

350,000

   

150,000

  

Redemptions

  

(300,000

)

  

(150,000

)

 

Shares outstanding, end of year

  

1,450,000

   

1,400,000

  

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

Columbia ETF Trust II | Annual Report 2018
69




FINANCIAL HIGHLIGHTS

The following tables are intended to help you understand each Fund's financial performance. Per share net investment income (loss) amounts are calculated based on average shares outstanding during the period. Total return assumes reinvestment of all dividends and distributions, if any. Total Return at Net Asset Value (NAV) 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 Total Return at Market 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 and portfolio turnover are not annualized for periods of less than one year. 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 rate may be higher.

Columbia Beyond BRICs ETF

  

For the Year Ended March 31,

 
  

2018

 

2017

 

2016

 

2015

 

2014

 

Per share data

 

Net asset value, beginning of year

 

$

16.14

  

$

15.77

  

$

19.87

  

$

21.01

  

$

21.97

  

Net investment income

  

0.49

   

0.34

   

0.40

   

0.56

   

0.99

  

Net realized and unrealized gain (loss)

  

3.36

   

0.43

   

(3.83

)

  

(1.43

)

  

(1.77

)

 

Total from investment operations

  

3.85

   

0.77

   

(3.43

)

  

(0.87

)

  

(0.78

)

 

Less distributions to shareholders:

 

Net investment income

  

(0.50

)

  

(0.40

)

  

(0.67

)

  

(0.25

)

  

(0.18

)

 

Net realized gains

  

   

   

   

(0.02

)

  

  

Total distribution to shareholders

  

(0.50

)

  

(0.40

)

  

(0.67

)

  

(0.27

)

  

(0.18

)

 

Net asset value, end of year

 

$

19.49

  

$

16.14

  

$

15.77

  

$

19.87

  

$

21.01

  

Total Return at NAV

  

24.11

%

  

5.12

%

  

(17.05

)%

  

(4.16

)%

  

(3.51

)%

 

Total Return at Market

  

25.97

%

  

4.01

%

  

(17.00

)%

  

(4.78

)%

  

(3.66

)%

 

Ratios to average net assets of:

 

Expenses, prior to expense reimbursements/waivers

  

0.86

%(a)

  

0.85

%

  

0.85

%

  

0.85

%

  

0.85

%

 

Expenses, net of expense reimbursements/waivers(b)

  

0.59

%(a)

  

0.58

%

  

0.58

%

  

0.58

%

  

0.66

%

 

Net Investment income, net of reimbursements/waivers

  

2.69

%

  

2.18

%

  

2.26

%

  

2.65

%

  

4.92

%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

71,127

  

$

71,018

  

$

92,242

  

$

301,041

  

$

49,385

  

Portfolio turnover rate

  

34

%

  

36

%

  

32

%

  

33

%

  

63

%

 

Notes to Financial Highlights

(a)  The ratio includes 0.01% for the year ended March 31, 2018 attributed to line of credit interest expense, overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3).

(b)  Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.

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

Columbia ETF Trust II | Annual Report 2018
70



FINANCIAL HIGHLIGHTS

Columbia EM Core ex-China ETF

  

For the Year Ended March 31,

 
  

2018

 

2017

 

2016(a)

 

Per share data

 

Net asset value, beginning of year

 

$

24.91

  

$

21.23

  

$

20.00

  

Net investment income

  

0.66

   

0.41

   

0.22

  

Net realized and unrealized gain

  

4.83

   

3.55

   

1.52

  

Total from investment operations

  

5.49

   

3.96

   

1.74

  

Less distributions to shareholders:

 

Net investment income

  

(0.61

)

  

(0.28

)

  

(0.51

)

 

Net realized gains

  

(1.76

)

  

   

  

Total distribution to shareholders

  

(2.37

)

  

(0.28

)

  

(0.51

)

 

Net asset value, end of year

 

$

28.03

  

$

24.91

  

$

21.23

  

Total Return at NAV

  

22.76

%

  

18.83

%

  

8.98

%

 

Total Return at Market

  

20.45

%

  

23.20

%

  

8.49

%

 

Ratios to average net assets of:

 

Expenses, prior to expense reimbursements/waivers

  

0.70

%(b)

  

0.70

%

  

0.70

%(c)

 

Expenses, net of expense reimbursements/waivers(d)

  

0.35

%(b)

  

0.35

%

  

0.35

%(c)

 

Net Investment income, net of reimbursements/waivers

  

2.40

%

  

1.80

%

  

1.92

%(c)

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

9,811

  

$

11,209

  

$

1,062

  

Portfolio turnover rate

  

37

%

  

30

%

  

45

%

 

Notes to Financial Highlights

(a)  Based on operations from September 2, 2015 (commencement of operations) through the stated period end.

(b)  The ratio includes less than 0.01% for the year ended March 31, 2018 attributed to line of credit interest expense, overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3).

(c)  Annualized.

(d)  Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.

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

Columbia ETF Trust II | Annual Report 2018
71



FINANCIAL HIGHLIGHTS

Columbia EM Quality Dividend ETF

  

For the Year Ended March 31,

 
  

2018

 

2017

 

2016

 

2015

 

2014

 

Per share data

 

Net asset value, beginning of year

 

$

13.77

  

$

12.81

  

$

14.25

  

$

16.15

  

$

19.80

  

Net investment income

  

0.38

   

0.37

   

0.38

   

0.77

   

0.64

  

Net realized and unrealized gain (loss)

  

2.21

   

0.90

   

(1.45

)

  

(2.08

)

  

(3.61

)

 

Total from investment operations

  

2.59

   

1.27

   

(1.07

)

  

(1.31

)

  

(2.97

)

 

Less distributions to shareholders:

 

Net investment income

  

(0.36

)

  

(0.31

)

  

(0.37

)

  

(0.59

)

  

(0.65

)

 

Return of capital

  

   

   

   

   

(0.03

)

 

Total distribution to shareholders

  

(0.36

)

  

(0.31

)

  

(0.37

)

  

(0.59

)

  

(0.68

)

 

Net asset value, end of year

 

$

16.00

  

$

13.77

  

$

12.81

  

$

14.25

  

$

16.15

  

Total Return at NAV

  

18.96

%

  

10.05

%

  

(7.38

)%

  

(8.37

)%

  

(15.14

)%

 

Total Return at Market

  

20.31

%

  

11.09

%

  

(7.78

)%

  

(8.34

)%

  

(15.98

)%

 

Ratios to average net assets of:

 

Expenses, prior to expense reimbursements/waivers

  

0.82

%(a)

  

0.85

%

  

0.85

%

  

0.89

%(b)

  

0.85

%

 

Expenses, net of expense reimbursements/waivers(c)

  

0.82

%(a)

  

0.85

%

  

0.85

%

  

0.89

%(b)

  

0.85

%

 

Net Investment income, net of reimbursements/waivers

  

2.55

%

  

2.79

%

  

2.88

%

  

4.76

%

  

3.54

%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

11,203

  

$

13,080

  

$

16,012

  

$

24,935

  

$

57,335

  

Portfolio turnover rate

  

91

%

  

100

%

  

85

%

  

168

%

  

137

%

 

Notes to Financial Highlights

(a)  The ratio includes 0.01% for the year ended March 31, 2018 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3).

(b)  The ratio includes 0.04% for the period ended March 31, 2015 attributed to tax expense, which is outside the Unitary Fee (as defined in note 3).

(c)  Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.

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

Columbia ETF Trust II | Annual Report 2018
72



FINANCIAL HIGHLIGHTS

Columbia Emerging Markets Consumer ETF (Consolidated)

  

For the Year Ended March 31,

 
  

2018

 

2017

 

2016

 

2015

 

2014

 

Per share data

 

Net asset value, beginning of year

 

$

24.75

  

$

22.60

  

$

26.45

  

$

26.53

  

$

26.51

  

Net investment income

  

0.10

   

0.18

   

0.21

   

0.25

   

0.31

  

Net realized and unrealized gain (loss)

  

1.59

   

2.13

   

(3.83

)

  

(0.03

)

  

(0.09

)

 

Total from investment operations

  

1.69

   

2.31

   

(3.62

)

  

0.22

   

0.22

  

Less distributions to shareholders:

 

Net investment income

  

(0.10

)

  

(0.16

)

  

(0.23

)

  

(0.30

)

  

(0.20

)

 

Net asset value, end of year

 

$

26.34

  

$

24.75

  

$

22.60

  

$

26.45

  

$

26.53

  

Total Return at NAV

  

6.81

%

  

10.35

%

  

(13.63

)%

  

0.88

%

  

0.82

%

 

Total Return at Market

  

7.16

%

  

10.75

%

  

(13.64

)%

  

0.74

%

  

0.59

%

 

Ratios to average net assets of:

 

Expenses, prior to expense reimbursements/waivers

  

0.81

%(a)

  

0.85

%(b)

  

0.85

%

  

0.83

%

  

0.84

%

 

Expenses, net of expense reimbursements/waivers(c)

  

0.81

%(a)

  

0.85

%(b)

  

0.85

%

  

0.83

%

  

0.84

%

 

Net Investment income, net of reimbursements/waivers

  

0.37

%

  

0.77

%

  

0.86

%

  

0.92

%

  

1.20

%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

809,911

  

$

741,171

  

$

612,360

  

$

1,145,158

  

$

1,233,683

  

Portfolio turnover rate

  

27

%

  

17

%

  

32

%

  

12

%

  

14

%

 

Notes to Consolidated Financial Highlights

(a)  The ratio includes less than 0.01% for the year ended March 31, 2018 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3).

(b)  The ratio includes less than 0.01% for the year ended March 31, 2017 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3).

(c)  Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.

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

Columbia ETF Trust II | Annual Report 2018
73



FINANCIAL HIGHLIGHTS

Columbia India Consumer ETF (Consolidated)

  

For the Year Ended March 31,

 
  

2018

 

2017

 

2016

 

2015

 

2014

 

Per share data

 

Net asset value, beginning of year

 

$

38.31

  

$

31.16

  

$

35.48

  

$

24.72

  

$

22.10

  

Net investment income (loss)

  

0.01

   

(0.03

)

  

0.04

   

(0.12

)

  

0.11

  

Net realized and unrealized gain (loss)

  

7.52

   

7.21

   

(4.36

)

  

10.91

   

2.51

  

Total from investment operations

  

7.53

   

7.18

   

(4.32

)

  

10.79

   

2.62

  

Less distributions to shareholders:

 

Net investment income

  

(0.03

)

  

(0.03

)

  

   

(0.03

)

  

  

Net asset value, end of year

 

$

45.81

  

$

38.31

  

$

31.16

  

$

35.48

  

$

24.72

  

Total Return at NAV

  

19.64

%

  

23.06

%

  

(12.18

)%

  

43.64

%

  

11.86

%

 

Total Return at Market

  

19.98

%

  

23.67

%

  

(12.57

)%

  

44.04

%

  

12.08

%

 

Ratios to average net assets of:

 

Expenses, prior to expense reimbursements/waivers

  

0.87

%(a)

  

0.89

%(b)

  

0.89

%

  

0.90

%(c)

  

0.89

%

 

Expenses, net of expense reimbursements/waivers(d)

  

0.87

%(a)

  

0.89

%(b)

  

0.89

%

  

0.90

%(c)

  

0.89

%

 

Net Investment income (loss), net of reimbursements/waivers

  

0.01

%

  

(0.09

)%

  

0.13

%

  

(0.36

)%

  

0.50

%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

144,289

  

$

88,102

  

$

71,679

  

$

88,710

  

$

4,945

  

Portfolio turnover rate

  

28

%

  

31

%

  

47

%

  

82

%

  

43

%

 

Notes to Consolidated Financial Highlights

(a)  The ratio includes 0.01% for the year ended March 31, 2018 attributed to line of credit interest expense and tax expense, which is outside the Unitary Fee (as defined in Note 3).

(b)  The ratio includes less than 0.01% for the year ended March 31, 2017 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3).

(c)  The ratio includes 0.01% for the year ended March 31, 2015 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3).

(d)  Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.

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

Columbia ETF Trust II | Annual Report 2018
74



FINANCIAL HIGHLIGHTS

Columbia India Infrastructure ETF (Consolidated)

  

For the Year Ended March 31,

 
  

2018

 

2017

 

2016

 

2015

 

2014

 

Per share data

 

Net asset value, beginning of year

 

$

12.98

  

$

10.24

  

$

13.08

  

$

11.35

  

$

12.27

  

Net investment income

  

0.18

   

0.03

   

0.30

   

0.12

   

0.13

  

Net realized and unrealized gain (loss)

  

0.92

   

3.03

   

(3.04

)

  

1.65

(a)

  

0.27

  

Total from investment operations

  

1.10

   

3.06

   

(2.74

)

  

1.77

   

0.40

  

Less distributions to shareholders:

 

Net investment income

  

(0.10

)

  

(0.32

)

  

(0.10

)

  

(0.04

)

  

(1.32

)

 

Net asset value, end of year

 

$

13.98

  

$

12.98

  

$

10.24

  

$

13.08

  

$

11.35

  

Total Return at NAV

  

8.41

%

  

30.61

%

  

(21.00

)%

  

15.59

%

  

4.04

%

 

Total Return at Market

  

9.13

%

  

30.93

%

  

(21.41

)%

  

15.93

%

  

4.49

%

 

Ratios to average net assets of:

 

Expenses, prior to expense reimbursements/waivers

  

0.84

%(b)

  

0.98

%(c)

  

0.88

%(d)

  

0.88

%(e)

  

0.86

%(f)

 

Expenses, net of expense reimbursements/waivers(g)

  

0.84

%(b)

  

0.98

%(c)

  

0.88

%(d)

  

0.88

%(e)

  

0.86

%(f)

 

Net Investment income, net of reimbursements/waivers

  

1.25

%

  

0.28

%

  

2.68

%

  

0.90

%

  

1.18

%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

49,612

  

$

41,529

  

$

39,938

  

$

47,736

  

$

17,586

  

Portfolio turnover rate

  

54

%

  

34

%

  

59

%

  

75

%

  

76

%

 

Notes to Consolidated Financial Highlights

(a)  The realized and unrealized gain on investments and foreign currency transactions does not accord with the amounts reported in the Statement of Operations due to the timing of subscriptions of fund shares in relation to the investment performance during the period and contributions made by Authorized Participants to compensate the Fund for additional costs incurred in purchasing securities that were not transferred in kind (See Note 1).

(b)  The ratio includes 0.01% for the year ended March 31, 2018 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3).

(c)  The ratio includes 0.13% for the year ended March 31, 2017 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3).

(d)  The ratio includes 0.03% for the year ended March 31, 2016 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3).

(e)  The ratio includes 0.03% for the year ended March 31, 2015 attributed to tax expense, which is outside the Unitary Fee (as defined in note 3).

(f)  The ratio includes 0.01% for the year ended March 31, 2014 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3).

(g)  Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.

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

Columbia ETF Trust II | Annual Report 2018
75



FINANCIAL HIGHLIGHTS

Columbia India Small Cap ETF (Consolidated)

  

For the Year Ended March 31,

 
  

2018

 

2017

 

2016

 

2015

 

2014

 

Per share data

 

Net asset value, beginning of year

 

$

18.26

  

$

13.59

  

$

17.48

  

$

12.74

  

$

12.45

  

Net investment income (loss)

  

0.00

(a)

  

(0.02

)

  

0.06

   

0.05

   

0.26

  

Net realized and unrealized gain (loss)

  

1.41

   

4.82

   

(3.86

)

  

4.77

   

0.25

  

Total from investment operations

  

1.41

   

4.80

   

(3.80

)

  

4.82

   

0.51

  

Less distributions to shareholders:

 

Net investment income

  

(0.17

)

  

(0.13

)

  

(0.09

)

  

(0.08

)

  

(0.22

)

 

Net asset value, end of year

 

$

19.50

  

$

18.26

  

$

13.59

  

$

17.48

  

$

12.74

  

Total Return at NAV

  

7.61

%

  

35.62

%

  

(21.78

)%

  

37.86

%

  

4.29

%

 

Total Return at Market

  

8.51

%

  

36.29

%

  

(22.27

)%

  

39.17

%

  

4.30

%

 

Ratios to average net assets of:

 

Expenses, prior to expense reimbursements/waivers

  

0.86

%(b)

  

0.86

%(c)

  

0.86

%(d)

  

0.92

%(e)

  

0.86

%(f)

 

Expenses, net of expense reimbursements/waivers(g)

  

0.86

%(b)

  

0.86

%(c)

  

0.86

%(d)

  

0.92

%(e)

  

0.86

%(f)

 

Net Investment income (loss), net of reimbursement/waivers

  

0.02

%

  

(0.12

)%

  

0.40

%

  

0.33

%

  

2.36

%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

28,282

  

$

25,565

  

$

19,027

  

$

28,850

  

$

16,560

  

Portfolio turnover rate

  

107

%

  

71

%

  

45

%

  

117

%

  

56

%

 

Notes to Consolidated Financial Highlights

(a)  Rounds to zero.

(b)  The ratio includes 0.02% for the year ended March 31, 2018 attributed to line of credit interest expense, overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3).

(c)  The ratio includes 0.01% for the year ended March 31, 2017 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3).

(d)  The ratio includes 0.01% for the year ended March 31, 2016 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3).

(e)  The ratio includes 0.07% for the year ended March 31, 2015 attributed to tax expense, which is outside the Unitary Fee (as defined in note 3).

(f)  The ratio includes 0.01% for the year ended March 31, 2014 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3).

(g)  Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable.

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

Columbia ETF Trust II | Annual Report 2018
76




NOTES TO FINANCIAL STATEMENTS

March 31, 2018

Note 1. Organization

Columbia ETF Trust II (the Trust) is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end registered investment company organized as a Delaware statutory trust. The Trust may issue an unlimited number of shares (without par value).

Information presented in these financial statements pertains to the following series of the Trust (each, a Fund and collectively, the Funds): Columbia Beyond BRICs ETF, Columbia EM Core ex-China ETF, Columbia EM Quality Dividend ETF, Columbia Emerging Markets Consumer ETF, Columbia India Consumer ETF, Columbia India Infrastructure ETF, and Columbia India Small Cap ETF. Columbia Beyond BRICs ETF and Columbia EM Quality Dividend ETF are currently classified as diversified funds. Columbia EM Core ex-China ETF, Columbia Emerging Markets Consumer ETF, Columbia India Consumer ETF, Columbia India Infrastructure ETF and Columbia India Small Cap ETF are currently classified as nondiversified funds.

Basis for Consolidation

The Consolidated Portfolio of Investments; Consolidated Statements of Assets and Liabilities, of Operations and of Changes in Net Assets; and the Consolidated Financial Highlights of the Funds listed below include the accounts of wholly owned subsidiaries (each, a Subsidiary and collectively, the Subsidiaries) located in the Republic of Mauritius (Mauritius). All inter-company accounts and transactions have been eliminated in consolidations.

Funds

 

Wholly owned subsidiary

 

Columbia Emerging Markets Consumer ETF

 

EG Shares Consumer Mauritius

 

Columbia India Consumer ETF

 

EG Shares India Consumer Mauritius

 

Columbia India Infrastructure ETF

 

EG Shares India Infrastructure Mauritius

 

Columbia India Small Cap ETF

 

EG Shares India Small Cap Mauritius

 

As of the date of this report, Columbia Emerging Markets Consumer ETF may invest its assets in its corresponding Subsidiary, which in turn invests substantially all (but at least 90%) of its assets in Indian securities.

As of the date of this report, Columbia India Infrastructure ETF invests substantially all of its assets in its corresponding Subsidiary, which in turn invests virtually all of its assets in Indian securities.

As of the date of this report, Columbia India Consumer ETF and Columbia India Small Cap ETF invest in Indian securities both directly (in India), and through their corresponding Subsidiaries, which in turn invest virtually all of their assets in Indian securities.

Columbia India Infrastructure ETF, Columbia India Small Cap ETF, and Columbia Emerging Markets Consumer ETF each intend to transition their investments in Indian securities out of their respective Subsidiaries, and into direct investments in India, through 2018, by selling such securities out of the Subsidiaries, and purchasing the securities directly in the Fund.

Each Fund listed in the table above has historically relied on a tax treaty between India and Mauritius for relief from certain Indian taxes. The enactment of general anti-avoidance rules in India, and the signing of a protocol amending the India-Mauritius tax treaty, and enactment of a 10% tax on long-term capital gains from sales of Indian shares after March 31, 2018 (not otherwise exempt under a tax treaty) will result in the imposition of additional taxes by India on the Subsidiary and each Fund listed in the table above which will result in higher taxes paid indirectly by the Funds and lower returns for the Funds and their shareholders. For more information, see India-Mauritius Tax Treaty Risk.

Columbia ETF Trust II | Annual Report 2018
77



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2018

A summary of each Fund's investment in its corresponding Subsidiary is as follows:

Funds

 % of
consolidated
fund net
assets
 Net
assets ($)
 Net
investment
income
(loss) ($)
 Net
realized
gain
(loss) ($)
 Net change in
unrealized
appreciation
(depreciation) ($)
 

Columbia Emerging Markets Consumer ETF

  

11.2

   

90,742,398

   

1,304,749

   

4,863,260

   

15,768,794

  

Columbia India Consumer ETF

  

84.9

   

122,487,312

   

1,163,856

   

1,431,589

   

18,739,560

  

Columbia India Infrastructure ETF

  

99.8

   

49,510,643

   

1,073,256

   

1,557,029

   

956,065

  

Columbia India Small Cap ETF

  

20.2

   

5,717,751

   

141,180

   

5,547,181

   

(2,397,441

)

 

Fund shares

The market prices of each Fund's shares may differ to some degree from the Fund's net asset value (NAV). Unlike conventional mutual funds, each Fund issues and redeems shares on a continuous basis, at NAV, only in a large specified number of shares, each called a "Creation Unit." A Creation Unit consists of 50,000 shares. Creation Units are issued and redeemed generally in-kind for a basket of securities and/or for cash. Investors such as market makers, large investors and institutions who wish to deal in Creation Units directly with a Fund must have entered into an authorized participant agreement (Authorized Participants) with the principal underwriter and the transfer agent, or purchase through a dealer that has entered into such an agreement. Authorized participants may purchase or redeem Fund shares directly from the Fund only in Creation Units. The Funds' shares are also listed on the New York Stock Exchange for which investors can purchase and sell shares on the secondary market through a broker at market prices which may differ from the NAV of the Fund.

Note 2. Summary of significant accounting policies

Basis of preparation

Each Fund is an investment company that applies the accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946, Financial Services — Investment Companies (ASC 946). The financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP), which requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses during the reporting period. Actual amounts could differ from those estimates. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements.

Security valuation

All equity securities are valued at the close of business of the New York Stock Exchange. Equity securities are valued at the last quoted sales price on the principal exchange or market on which they trade, except for securities traded on the NASDAQ Stock market, which are valued at the NASDAQ official close price. Unlisted securities or listed securities for which there were no sales during the day are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets.

Foreign equity securities are valued based on the closing price on the foreign exchange in which such securities are primarily traded. If any foreign equity security closing prices are not readily available, the securities are valued at the mean of the latest quoted bid and ask prices on such exchanges or markets. Foreign currency exchange rates are generally determined at the close of London's exchange at 11:00 a.m. Eastern (U.S.) time.

Investments for which market quotations are not readily available, or that have quotations which management believes are not reflective of market value or reliable, are valued at fair value as determined in good faith under procedures approved by and under the general supervision of the Board of Trustees. If a security or class of securities (such as foreign securities) is valued at fair value, such value is likely to be different from the quoted or published price for the security.

Columbia ETF Trust II | Annual Report 2018
78



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2018

The determination of fair value often requires significant judgment. To determine fair value, management may use assumptions including but not limited to future cash flows and estimated risk premiums. Multiple inputs from various sources may be used to determine fair value.

GAAP requires disclosure regarding the inputs and valuation techniques used to measure fair value and any changes in valuation inputs or techniques. In addition, investments shall be disclosed by major category. This information is disclosed following the Fund's Portfolio of Investments.

Foreign currency transactions and translations

The values of all assets and liabilities denominated in foreign currencies are generally translated into U.S. dollars at exchange rates determined at the close of the London Stock Exchange on any given day. Net realized and unrealized gains (losses) on foreign currency transactions and translations include gains (losses) arising from the fluctuation in exchange rates between trade and settlement dates on securities transactions, gains (losses) arising from the disposition of foreign currency and currency gains (losses) between the accrual and payment dates on dividends, interest income and foreign withholding taxes.

For financial statement purposes, the Funds do not distinguish that portion of gains (losses) on investments which is due to changes in foreign exchange rates from that which is due to changes in market prices of the investments. Such fluctuations are included with the net realized and unrealized gains (losses) on investments in the Statement of Operations.

Security transactions

Security transactions are accounted for on the trade date. Cost is determined and gains (losses) are based upon the specific identification method for both financial statement and federal income tax purposes.

Income recognition

Corporate actions and dividend income are generally recorded net of any non-reclaimable tax withholdings, on the ex-dividend date or upon receipt of ex-dividend notification in the case of certain foreign securities.

Interest income is recorded on an accrual basis.

Awards from class action litigation are recorded as a reduction of cost basis if the Fund still owns the applicable securities on the payment date. If the Fund no longer owns the applicable securities, the proceeds are recorded as realized gains.

Expenses

General expenses of the Trust are allocated to the Funds based upon relative net assets or other expense allocation methodologies determined by the nature of the expense. Expenses directly attributable to a Fund are charged to that Fund.

Determination of net asset value

The NAV per share of each Fund is computed by dividing the value of the net assets of a Fund by the total number of outstanding shares of that Fund, rounded to the nearest cent, at the close of regular trading (ordinarily 4:00 p.m. Eastern Time) every day the New York Stock Exchange is open.

Federal income tax status

For federal income tax purposes, each Fund is treated as a separate entity. Each Fund intends to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code, as amended, and will distribute substantially all of its investment company taxable income and net capital gain, if any, for its tax year, and as such will not be subject to federal income taxes. In addition, each Fund intends to distribute in each calendar year substantially all of

Columbia ETF Trust II | Annual Report 2018
79



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2018

its ordinary income, capital gain net income and certain other amounts, if any, such that the Fund should not be subject to federal excise tax. Therefore, no federal income or excise tax provisions are recorded.

Foreign taxes

The Funds may be subject to foreign taxes on income, gains on investments or currency repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries, as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests.

Realized gains in certain countries may be subject to foreign taxes at the Fund level, based on statutory rates. The Fund accrues for such foreign taxes on realized and unrealized gains at the appropriate rate for each jurisdiction, as applicable. The amount, if any, is disclosed as a liability on the Statement of Assets and Liabilities.

Distributions to shareholders

Distributions from net investment income, if any, are declared and paid each calendar quarter for Columbia EM Quality Dividend ETF. The remaining Funds declare and distribute net investment income annually. Net realized capital gains, if any, are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.

Guarantees and indemnifications

Under the Trust's organizational documents and, in some cases, by contract, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust or its funds. In addition, certain of the Funds' contracts with their service providers contain general indemnification clauses. The Funds' maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Funds cannot be determined, and the Funds have no historical basis for predicting the likelihood of any such claims.

Recent accounting pronouncement

Accounting Standards Update 2017-08 Premium Amortization on Purchased Callable Debt Securities

In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2017-08 Premium Amortization on Purchased Callable Debt Securities. ASU No. 2017-08 updates the accounting standards to shorten the amortization period for certain purchased callable debt securities, held at a premium, to be amortized to the earliest call date. The update applies to securities with explicit, noncontingent call features that are callable at fixed prices and on preset dates. The standard is effective for annual periods beginning after December 15, 2018 and interim periods within those fiscal years. At this time, management is evaluating the implication of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.

Note 3. Fees and other transactions with affiliates

Investment management fees

Under an Investment Management Services Agreement, Columbia Management Investment Advisers, LLC (the Investment Manager), a wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial), determines which securities will be purchased, held or sold. The investment management fee is a unitary fee paid monthly to the Investment Manager at an annual rate based on each Fund's average daily net assets. In return for this fee, the Investment Manager pays the operating costs and expenses of each Fund other than the following expenses (which will be paid by the Fund): taxes; interest incurred on borrowing by the Fund (including but not limited to overdraft fees), if any; brokerage expenses, fees, commissions and other portfolio transaction expenses (including but not limited to service fees charged by custodians of depository receipts and scrip fees related to registrations on foreign exchanges); interest and fee expense related to the Fund's participation in inverse floater structures; infrequent and/or unusual expenses, including without limitation litigation expenses (including but not limited to arbitrations and indemnification expenses); distribution and/or service fees; expenses incurred in connection with lending securities; and any other expenses approved by the Board of Trustees.

Columbia ETF Trust II | Annual Report 2018
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NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2018

The investment management fee is an annual fee that is equal to a percentage of each Fund's average daily net assets and is paid as follows:

Fund 

Assets (billions)

 Investment
management
fee rate (%)
 

Columbia Beyond BRICs ETF

 

All

  

0.85

  

Columbia EM Core ex-China ETF

 

All

  

0.70

  

Effective February 1, 2018 the investment management fee is an annual fee that is equal to a percentage of each Fund's average daily net assets and is paid as follows:

Fund

 

Assets (billions)

 Investment
management
fee rate (%)
 

Columbia EM Quality Dividend ETF

 

All

  

0.59

  

Columbia Emerging Markets Consumer ETF

 

All

  

0.59

  

Columbia India Consumer ETF

 

All

  

0.75

  

Columbia India Infrastructure ETF

 

All

  

0.75

  

Columbia India Small Cap ETF

 

All

  

0.75

  

Prior to February 1, 2018, the investment management fee for each of these Funds was an annual fee that was equal to a percentage of each Fund's average daily net assets and was paid as follows:

Fund

 

Assets (billions)

 Investment
management
fee rate (%)
 

Columbia EM Quality Dividend ETF

 

All

  

0.85

  

Columbia Emerging Markets Consumer ETF

 $0-$1.0
>$1.0-$2.0
>$2.0
 0.85
0.75
0.70
 

Columbia India Consumer ETF

 

All

  

0.89

  

Columbia India Infrastructure ETF

 

All

  

0.85

  

Columbia India Small Cap ETF

 

All

  

0.85

  

The annualized effective management services fee rate for the year ended March 31, 2018 was as follows:

Fund

 Effective investment
management
fee rate (%)
 

Columbia Beyond BRICs ETF

  

0.85

  

Columbia EM Core ex-China ETF

  

0.70

  

Columbia EM Quality Dividend ETF

  

0.81

  

Columbia Emerging Markets Consumer ETF

  

0.81

  

Columbia India Consumer ETF

  

0.86

  

Columbia India Infrastructure ETF

  

0.83

  

Columbia India Small Cap ETF

  

0.83

  

The Investment Manager has contractually agreed to waive all or a portion of the investment management fee for the periods disclosed below, so that each Fund's investment management fee is limited as a percentage of the respective Fund's average daily net assets to the annual rate noted below:

Fund

 September 1, 2016
through
August 31, 2018
 

Columbia Beyond BRICs ETF

  

0.58

%

 

Columbia EM Core ex-China ETF

  

0.35

  

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NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2018

Compensation of board members

Members of the Board of Trustees who are not officers or employees of the Investment Manager or Ameriprise Financial are compensated for their services to the Funds as disclosed in the Statement of Operations. Under a Deferred Compensation Plan (the Plan), these members of the Board of Trustees may elect to defer payment of up to 100% of their compensation. Deferred amounts are treated as though equivalent dollar amounts had been invested in shares of certain funds managed by the Investment Manager. Each Fund's liability for these amounts is adjusted for market value changes and remains in the Fund until distributed in accordance with the Plan. All amounts payable under the Plan constitute a general unsecured obligation of the Fund. The expenses of the compensation of the members of the Board of Trustees that are allocated to the Fund are payable by the Investment Manager.

Compensation of Chief Compliance Officer

The Board of Trustees has appointed a Chief Compliance Officer to the Funds in accordance with federal securities regulations. A portion of the Chief Compliance Officer's total compensation is allocated to the Funds, along with other allocations to affiliated funds governed by the Board of Trustees, based on relative net assets. The expenses of the Chief Compliance Officer allocated to the Funds are payable by the Investment Manager.

Distribution and service fees

ALPS Distributors, Inc., (the Distributor) serves as the distributor for the Funds. The Funds have adopted a distribution and service plan (the Plan). Under the Plan, the Funds are authorized to pay distribution fees to the Distributor and other firms that provide distribution and shareholder services at the maximum annual rate of 0.25% of average daily net assets of each Fund. No distribution or service fees are currently paid by the Funds or have been approved for payment by the Board of Trustees, however, and there are no current plans to impose these fees.

Note 4. Federal tax information

The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP because of temporary or permanent book to tax differences.

At March 31, 2018, these differences are primarily due to differing treatments for deferral/reversal of wash sale losses, foreign currency transactions and passive foreign investment company (PFIC) holdings. To the extent these differences are permanent, reclassifications are made among the components of the applicable Fund's net assets in the Statement of Assets and Liabilities.

Temporary differences do not require reclassifications. In the Statement of Assets and Liabilities the following reclassifications were made:

Funds Undistributed
(excess of
distributions
over) net
investment
income ($)
 Accumulated
net realized
gain (loss) ($)
 Paid-in capital
increase
(decrease) ($)
 

Columbia Beyond BRICs ETF

  

(232,434

)

  

412,801

   

(180,367

)

 

Columbia EM Core ex-China ETF

  

2,771

   

(369,111

)

  

366,340

  

Columbia EM Quality Dividend ETF

  

(43,546

)

  

(72,262

)

  

115,808

  

Columbia Emerging Markets Consumer ETF

  

(623,576

)

  

(17,475,904

)

  

18,099,480

  

Columbia India Consumer ETF

  

(197,344

)

  

199,422

   

(2,078

)

 

Columbia India Infrastructure ETF

  

(118,565

)

  

118,565

   

  

Columbia India Small Cap ETF

  

(166,861

)

  

167,303

   

(442

)

 

Net investment income (loss) and net realized gains (losses), as disclosed in the Statement of Operations, and net assets were not affected by these reclassifications.

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NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2018

The tax character of distributions paid during the years indicated was as follows:

 

Year ended March 31, 2018

 

Year ended March 31, 2017

 
Funds Ordinary
income ($)
 Long-term
capital gain ($)
 Tax return
of capital ($)
 

Total ($)

 Ordinary
income ($)
 Long-term
capital gain ($)
 Tax return
of capital ($)
 

Total ($)

 

Columbia Beyond BRICs ETF

  

1,818,029

   

   

   

1,818,029

   

1,842,516

   

   

   

1,842,516

  

Columbia EM Core ex-China ETF

  

308,666

   

521,247

   

   

829,913

   

126,499

   

   

   

126,499

  

Columbia EM Quality Dividend ETF

  

279,712

   

   

   

279,712

   

331,695

   

   

   

331,695

  
Columbia Emerging Markets
Consumer ETF
  

3,335,918

   

   

   

3,335,918

   

4,854,400

   

   

   

4,854,400

  

Columbia India Consumer ETF

  

79,763

   

   

   

79,763

   

72,600

   

   

   

72,600

  

Columbia India Infrastructure ETF

  

363,029

   

   

   

363,029

   

1,015,616

   

   

   

1,015,616

  

Columbia India Small Cap ETF

  

247,725

   

   

   

247,725

   

160,975

   

   

   

160,975

  

Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes. At March 31, 2018, the components of distributable earnings on a tax basis were as follows:

Funds Undistributed
ordinary income ($)
 Accumulated
capital and
other losses ($)
 Net unrealized
appreciation
(depreciation) ($)
 Total accumulated
earnings
(losses) ($)
 

Columbia Beyond BRICs ETF

  

447,628

   

(58,045,519

)

  

2,528,934

   

(55,068,957

)

 

Columbia EM Core ex-China ETF

  

38,617

   

(7,463

)

  

2,149,105

   

2,180,259

  

Columbia EM Quality Dividend ETF

  

   

(26,945,023

)

  

839,065

   

(26,105,958

)

 

Columbia Emerging Markets Consumer ETF

  

48,094

   

(167,735,557

)

  

69,159,106

   

(98,528,357

)

 

Columbia India Consumer ETF

  

   

(5,522,420

)

  

32,413,816

   

26,891,396

  

Columbia India Infrastructure ETF

  

215,201

   

(56,058,181

)

  

4,983,492

   

(50,859,488

)

 

Columbia India Small Cap ETF

  

   

(6,095,120

)

  

(3,167,647

)

  

(9,262,767

)

 

At March 31, 2018, the cost of investments for federal income tax purposes along with the aggregate gross unrealized appreciation and depreciation based on that cost was:

Funds Tax cost ($) Gross unrealized
appreciation ($)
 Gross unrealized
depreciation ($)
 Net appreciation
(depreciation) ($)
 

Columbia Beyond BRICs ETF

  

68,350,194

   

11,617,173

   

(9,088,727

)

  

2,528,446

  

Columbia EM Core ex-China ETF

  

7,621,944

   

2,551,585

   

(402,553

)

  

2,149,032

  

Columbia EM Quality Dividend ETF

  

10,291,661

   

1,267,524

   

(429,201

)

  

838,323

  

Columbia Emerging Markets Consumer ETF

  

740,364,386

   

175,241,176

   

(106,086,487

)

  

69,154,689

  

Columbia India Consumer ETF

  

114,232,851

   

35,988,074

   

(3,574,251

)

  

32,413,823

  

Columbia India Infrastructure ETF

  

45,176,608

   

10,385,785

   

(5,402,195

)

  

4,983,590

  

Columbia India Small Cap ETF

  

31,378,837

   

633,822

   

(3,800,046

)

  

(3,166,224

)

 

The following capital loss carryforward, determined at March 31, 2018, may be available to reduce taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code:

 

Carryforwards with no expiration

 
Funds Short-term
capital loss
carryforward ($)
 Long-term
capital loss
carryforward ($)
 

Columbia Beyond BRICs ETF

  

17,608,572

   

40,436,947

  

Columbia EM Core ex-China ETF

  

   

  

Columbia EM Quality Dividend ETF

  

20,946,356

   

5,998,667

  

Columbia Emerging Markets Consumer ETF

  

   

167,735,557

  

Columbia India Consumer ETF

  

4,835,874

   

686,546

  

Columbia India Infrastructure ETF

  

15,926,335

   

40,131,846

  

Columbia India Small Cap ETF

  

   

6,095,120

  

Columbia ETF Trust II | Annual Report 2018
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NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2018

Capital loss carryforwards with no expiration are required to be utilized prior to any capital losses which carry an expiration date. As a result of this ordering rule, capital loss carryforwards which carry an expiration date, if any, may be more likely to expire unused.

Under current tax rules, regulated investment companies can elect to treat certain late-year ordinary losses incurred and post-October capital losses (capital losses realized after October 31) as arising on the first day of the following taxable year. At March 31, 2018, the Funds will elect to treat the following late-year ordinary losses and post-October capital losses as arising on April 1, 2018.

Funds Late year ordinary
losses ($)
 Post October
capital losses ($)
 

Columbia Beyond BRICs ETF

  

   

  

Columbia EM Core ex-China ETF

  

   

7,463

  

Columbia EM Quality Dividend ETF

  

   

  

Columbia Emerging Markets Consumer ETF

  

   

  

Columbia India Consumer ETF

  

211,068

   

  

Columbia India Infrastructure ETF

  

   

  

Columbia India Small Cap ETF

  

419,188

   

  

Management of the Funds has concluded that there are no significant uncertain tax positions in the Funds that would require recognition in the financial statements. However, management's conclusion may be subject to review and adjustments at a later date based on factors including, but not limited to, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Generally the Funds' federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.

Note 5. Portfolio information

The cost of purchases and proceeds from sales of securities, excluding short-term investments and in-kind transactions, for the year ended March 31, 2018, were as follows:

Funds

 

Purchases ($)

 

Sales ($)

 

Columbia Beyond BRICs ETF

  

24,075,393

   

29,475,785

  

Columbia EM Core ex-China ETF

  

2,808,444

   

4,672,798

  

Columbia EM Quality Dividend ETF

  

10,961,741

   

13,057,295

  

Columbia Emerging Markets Consumer ETF

  

234,596,257

   

233,627,523

  

Columbia India Consumer ETF

  

74,894,324

   

36,183,799

  

Columbia India Infrastructure ETF

  

33,979,088

   

27,877,295

  

Columbia India Small Cap ETF

  

33,719,337

   

32,901,755

  

The amount of purchase and sale activity impacts the portfolio turnover rate reported in the Financial Highlights.

Note 6. In-kind transactions

The Funds may accept in-kind contributions and redemptions. In-kind contributions are accounted for at the fair market value of the in-kind securities contributed on the date of contribution. For the year ended March 31, 2018, the cost basis of in-kind purchases and sales was as follows:

Funds

 

Purchases ($)

 

Sales ($)

 

Columbia Beyond BRICs ETF

  

   

7,484,831

  

Columbia EM Core ex-China ETF

  

1,834,398

   

2,957,525

  

Columbia EM Quality Dividend ETF

  

   

1,697,424

  

Columbia Emerging Markets Consumer ETF

  

83,039,638

   

68,285,790

  

Columbia India Consumer ETF

  

   

  

Columbia India Infrastructure ETF

  

   

  

Columbia India Small Cap ETF

  

   

  

Columbia ETF Trust II | Annual Report 2018
84



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2018

Note 7. Line of credit

Effective December 5, 2017, each Fund has access to a revolving credit facility with a syndicate of banks led by Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. whereby the Fund may borrow for the temporary funding of shareholder redemptions or for other temporary or emergency purposes. The credit facility, which is a collective agreement between the Fund and certain other funds managed by the Investment Manager, severally and not jointly, permits collective borrowings up to $1 billion. Interest is charged to each participating fund based on its borrowings at a rate equal to the higher of (i) the overnight federal funds rate plus 1.00% or (ii) the one-month LIBOR rate plus 1.00%.

Each borrowing under the credit facility matures no later than 60 days after the date of borrowing. Each Fund will pay a commitment fee equal to its pro rata share of the amount of the credit facility at a rate of 0.15% per annum.

During the year ended March 31, 2018, Columbia EM Quality Dividend ETF, Columbia Emerging Markets Consumer ETF and Columbia India Infrastructure ETF had no borrowings.

For the year ended March 31, 2018, the following funds had borrowings during the year:

Funds

 Average daily loan
balance ($)
 Weighted average
interest rate (%)
 

Columbia Beyond BRICs ETF

  

155,556

   

2.56

  

Columbia EM Core ex-China ETF

  

685,714

   

2.56

  

Columbia India Consumer ETF

  

10,887,500

   

2.87

  

Columbia India Small Cap ETF

  

6,800,000

   

2.85

  

Interest expense incurred by the Funds is recorded as a line of credit interest expense in the Statement of Operations. There were no outstanding borrowings at March 31, 2018.

Note 8. Significant risks

Emerging markets risk

The Funds are subject to emerging markets risk. Investments in emerging market securities are subject to even greater risks than for foreign investments generally, including increased risks of: illiquidity of securities; price volatility; inflation or deflation; restrictions on foreign investment; nationalization; higher taxation; economic and political instability; pervasive corruption and crime; less governmental regulation; and less developed legal systems. These risks may be greater for investments in frontier markets.

Concentration risk

Each Fund concentrates its investments in a particular sector or a group of sectors to approximately the same extent as its respective underlying index, and as such, may be adversely affected by increased price volatility of securities in those sectors, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those sectors.

Country and regional risk

Each Fund will invest in specific countries or geographic regions to approximately the same extent as its underlying index. To the extent that a Fund invests a significant portion of its assets in a particular country or a specific geographic region, the Fund will generally have more exposure to that country's or region's economic risks. In the event of economic or political turmoil or a deterioration of diplomatic relations in a country or region where a substantial portion of a Fund's assets are invested, the Fund may experience increased volatility or illiquidity of its portfolio holdings, which may adversely affect that Fund's performance.

Columbia ETF Trust II | Annual Report 2018
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NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2018

Infrastructure concentration risk

Because the Columbia India Infrastructure ETF concentrates its investments in the infrastructure sectors of India, the Fund may be adversely affected by increased price volatility of securities in that sector, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that sector.

Consumer concentration risk

Because the Columbia Emerging Markets Consumer ETF and Columbia India Consumer ETF concentrate their investments in the consumer goods and consumer services sectors (specifically the consumer goods and consumer services sectors of India for the Columbia India Consumer ETF), these Funds may be adversely affected by increased price volatility of securities in those sectors, and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting those sectors. The success of consumer goods and consumer services suppliers and retailers is tied closely to the performance of the domestic and international economy, interest rates, currency exchange rates, competition, preferences, and consumer confidence.

Financials concentration risk

Columbia Beyond BRICs ETF and Columbia EM Core ex-China ETF have concentrated investments in the financials sector. Because companies in the financials sector are subject to extensive governmental regulation, which may adversely affect the scope of their activities, the prices they can charge and the amount of capital they must maintain, these Funds may be adversely affected.

Industrials concentration risk

Columbia India Infrastructure ETF may be more susceptible to the particular risks that may affect companies in the industrials sector than if they were invested in a wider variety of companies in unrelated sectors. The performance of companies in the industrials sector may be affected by government regulation, world events and economic conditions.

Materials concentration risk

Columbia India Infrastructure ETF and Columbia India Small Cap ETF may be more susceptible to the particular risks that may affect companies in the materials sector than if it were invested in a wider variety of companies in unrelated sectors. Companies in the materials sector are subject to certain risks, including that many materials companies are significantly affected by the level and volatility of commodity prices, exchange rates, import controls, worldwide competition, environmental policies and consumer demand. Performance of such companies may be affected by factors including, among others, that at times worldwide production of industrial materials has exceeded demand as a result of over-building or economic downturns, leading to poor investment returns or losses. Other risks may include liabilities for environmental damage and general civil liabilities, depletion of resources, and mandated expenditures for safety and pollution control. The materials sector may also be affected by economic cycles, technical progress, labor relations, and government regulations.

India concentration risk

Because Columbia India Consumer ETF, Columbia India Infrastructure ETF and Columbia India Small Cap ETF invest predominantly in Indian securities, their NAVs will be much more sensitive to changes in economic, political and other factors within India than would a fund that invested in a greater variety of countries. Special risks include, among others, political and legal uncertainty, persistent religious, ethnic and border disputes, greater government control over the economy, currency fluctuations or blockage and the risk of nationalization or expropriation of assets.

Small cap and mid cap companies risk

Columbia India Small Cap ETF primarily invests in small capitalization companies. Small cap companies may have greater volatility in price than the stocks of large cap companies due to limited product lines or resources or a dependency upon a particular market niche.

Columbia ETF Trust II | Annual Report 2018
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NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2018

Non-diversification risk

Columbia EM Core ex-China ETF, Columbia Emerging Markets Consumer ETF, Columbia India Consumer ETF, Columbia India Infrastructure ETF and Columbia India Small Cap ETF are non-diversified funds. A non-diversified fund is permitted to invest a greater percentage of its total assets in fewer issuers than a diversified fund. The Fund may, therefore, have a greater risk of loss from a few issuers than a similar fund that invests more broadly.

India-Mauritius tax treaty risk

Each of Columbia Emerging Markets Consumer ETF, Columbia India Consumer ETF, Columbia India Infrastructure ETF and Columbia India Small Cap ETF and the respective Subsidiary of each has historically relied on a tax treaty between India and Mauritius for relief from certain Indian taxes. India and Mauritius have agreed to an amended protocol with respect to gains resulting from the alienation of shares in Indian companies acquired on or after April 1, 2017, which will result in higher taxes paid indirectly by the Fund and, therefore, lower returns for the Fund and its shareholders. Gains resulting from the alienation of shares acquired prior to April 1, 2017 will continue to be exempt from Indian tax under the India-Mauritius tax treaty. Additionally, India has enacted general anti-avoidance rules, and a 10% tax on long-term capital gains resulting from the alienation of Indian shares after March 31, 2018, to the extent that such gains are not otherwise exempt or reduced under a tax treaty, which could result in the imposition by India of various additional taxes on Indian securities invested in by the Subsidiary and the Fund.

Note 9. Subsequent events

Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment, and have determined that there are no other material events that impacted the Fund's financial statements.

Note 10. Information regarding pending and settled legal proceedings

Ameriprise Financial and certain of its affiliates have historically been involved in a number of legal, arbitration and regulatory proceedings, including routine litigation, class actions, and governmental actions, concerning matters arising in connection with the conduct of their business activities. Ameriprise Financial believes that the Funds are not currently the subject of, and that neither Ameriprise Financial nor any of its affiliates are the subject of, any pending legal, arbitration or regulatory proceedings that are likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds. Ameriprise Financial is required to make quarterly (10-Q), annual (10-K) and, as necessary, 8-K filings with the Securities and Exchange Commission (SEC) on legal and regulatory matters that relate to Ameriprise Financial and its affiliates. Copies of these filings may be obtained by accessing the SEC website at www.sec.gov.

There can be no assurance that these matters, or the adverse publicity associated with them, will not result in increased Fund redemptions, reduced sale of Fund shares or other adverse consequences to the Funds. Further, although we believe proceedings are not likely to have a material adverse effect on the Funds or the ability of Ameriprise Financial or its affiliates to perform under their contracts with the Funds, these proceedings are subject to uncertainties and, as such, we are unable to estimate the possible loss or range of loss that may result. An adverse outcome in one or more of these proceedings could result in adverse judgments, settlements, fines, penalties or other relief that could have a material adverse effect on the consolidated financial condition or results of operations of Ameriprise Financial.

Columbia ETF Trust II | Annual Report 2018
87




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Trustees of Columbia Funds ETF Trust II and Shareholders of each of the funds listed in the table below

Opinions on the Financial Statements

We have audited the financial statements and financial highlights of each of the funds listed in the table below (seven of the funds constituting Columbia Funds ETF Trust II, hereafter collectively referred to as the "Funds") as of the date listed in the table below and for the periods listed in the table below (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of the date listed in the table below, the results of each of their operations, the changes in each of their net assets and each of the financial highlights for each of the periods listed in the table below in conformity with accounting principles generally accepted in the United States of America.

Columbia Beyond BRICs ETF(1)

Columbia EM Core ex-China ETF(1)

Columbia EM Quality Dividend ETF(1)

Columbia Emerging Markets Consumer ETF(2)

Columbia India Consumer ETF(2)

Columbia India Infrastructure ETF(2)

Columbia India Small Cap ETF(2)

(1)  The statement of assets and liabilities, including the portfolio of investments, as of March 31, 2018, the related statement of operations for the year ended March 31, 2018, the statements of changes in net assets for each of the two years in the period ended March 31, 2018, including the related notes, and the financial highlights for each of the two years in the period ended March 31, 2018

(2)  The statement of assets and liabilities (consolidated), including the portfolio of investments (consolidated), as of March 31, 2018, the related statement of operations (consolidated) for the year ended March 31, 2018, the statements of changes in net assets (consolidated) for each of the two years in the period ended March 31, 2018, including the related notes, and the financial highlights (consolidated) for each of the two years in the period ended March 31, 2018

The financial statements of the Funds as of and for the year ended March 31, 2016, and the financial highlights for each of the periods ended on or prior to March 31, 2016 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated May 26, 2016 expressed unqualified opinions on those financial statements and financial highlights.

Basis for Opinions

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP
Minneapolis, Minnesota
May 22, 2018

We have served as auditors of one or more investment companies within the Columbia Funds Complex since 1977.

Columbia ETF Trust II | Annual Report 2018
88



FEDERAL INCOME TAX INFORMATION

(Unaudited)

The Funds hereby designate the following tax attributes for the fiscal year ended March 31, 2018. Shareholders will be notified in early 2019 of the amounts for use in preparing 2018 income tax returns.

  Qualified
dividend
income
 Foreign
taxes
paid
 Foreign
taxes
paid per
share
 Foreign
source
income
 Foreign
source
income
per share
 

Columbia Beyond BRICs ETF

  

80.60

%

 

$

181,060

  

$

0.05

  

$

2,550,610

  

$

0.70

  

Columbia EM Core ex-China ETF

  

41.87

%

 

$

33,103

  

$

0.09

  

$

297,554

  

$

0.85

  

Columbia EM Quality Dividend ETF

  

62.12

%

 

$

40,159

  

$

0.06

  

$

440,146

  

$

0.63

  

Columbia Emerging Markets Consumer ETF

  

100.00

%

 

$

876,882

  

$

0.03

  

$

11,400,714

  

$

0.37

  

Columbia India Consumer ETF

  

100.00

%

 

$

  

$

  

$

  

$

  

Columbia India Infrastructure ETF

  

100.00

%

 

$

19,535

  

$

0.01

  

$

1,092,791

  

$

0.31

  

Columbia India Small Cap ETF

  

83.43

%

 

$

126,519

  

$

0.09

  

$

269,764

  

$

0.19

  

Qualified dividend income. For taxable, non-corporate shareholders, the percentage of ordinary income distributed during the fiscal year that represents qualified dividend income subject to reduced tax rates.

Foreign Taxes. The Fund makes the election to pass through to shareholders the foreign taxes paid. Eligible shareholders may claim a foreign tax credit. These taxes, and the corresponding foreign source income, are provided.

Columbia ETF Trust II | Annual Report 2018
89



TRUSTEES AND OFFICERS

Shareholders elect the Board that oversees the Funds' operations. The Board appoints officers who are responsible for day-to-day business decisions based on policies set by the Board. The following table provides basic biographical information about the Funds' Trustees as of the date of this report, including their principal occupations during the past five years, although specific titles for individuals may have varied over the period. Certain Trustees may have served as a Trustee to other Funds in the Columbia Funds Complex prior to the date set forth in the Position Held with the Trusts and Length of Service column. Under current Board policy, Trustees not affiliated with the Investment Manager generally may serve through the end of the calendar year in which they reach either the mandatory retirement age established by the Board or the fifteenth anniversary of the first Columbia Funds Board meeting they attended as a member of the Board.

Independent trustees

Name,
address,
year of birth
 Position held
with the Trusts and
length of service
 Principal occupation(s)
during the past five years
and other relevant
professional experience
 Number of
Funds in the
Columbia Funds
complex
overseen
 Other directorships
held by Trustee
during the past
five years
 
George S. Batejan
c/o Columbia Management
Investment Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1953
 

Trustee since January 2017 for each Trust

 

Executive Vice President, Global Head of Technology and Operations, Janus Capital Group, Inc., 2010-2016

 

125

 

Advisory Board Member, University of Colorado Business School since November 2015; former Chairman of the Board, NICSA (National Investment Company Services Association) (Executive Committee, Nominating Committee and Governance Committee), 2014-2016; former Director, Intech Investment Management, 2011-2016; former Board Member, Metro Denver Chamber of Commerce, 2016

 
Kathleen Blatz
c/o Columbia Management
Investment Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1954
 

Trustee since April 2016 for CET I and September 2016 for CET II

 

Attorney, specializing in arbitration and mediation; Interim President and Chief Executive Officer, Blue Cross and Blue Shield of Minnesota (health care insurance) since February 2018; Chief Justice, Minnesota Supreme Court, 1998-2006; Associate Justice, Minnesota Supreme Court, 1996-1998; Fourth Judicial District Court Judge, Hennepin County, 1994-1996; Attorney in private practice and public service, 1984-1993; State Representative, Minnesota House of Representatives, 1979-1993, which included service on the Tax and Financial Institutions and Insurance Committees; Interim Chair, Minnesota Sports Facilities Authority, March 2017-July 2017

 

125

 

Trustee, BlueCross BlueShield of Minnesota since 2009 (Chair of the Business Development Committee 2014-2017; Chair of the Governance Committee since 2017); Chair of the Robina Foundation since August 2013; Former Member of the Board, Minnesota Sports Facilities Authority, January 2017-July 2017

 
Edward J. Boudreau, Jr.
c/o Columbia Management
Investment Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1944
 

Chair of the Board since January 2018; Trustee since April 2016 for CET I and September 2016 for CET II

 

Managing Director, E.J. Boudreau & Associates (consulting) since 2000; FINRA Industry Arbitrator, 2002-present; Chairman and Chief Executive Officer, John Hancock Investments (asset management), Chairman and Interested Trustee for open-end and closed-end funds offered by John Hancock, 1989-2000; John Hancock Mutual Life Insurance Company, including Senior Vice President and Treasurer and Senior Vice President Information Technology, 1968-1988

 

125

 

Former Trustee, Boston Museum of Science (Chair of Finance Committee), 1985-2013; former Trustee, BofA Funds Series Trust (11 funds), 2005-2011

 

Columbia ETF Trust II | Annual Report 2018
90



TRUSTEES AND OFFICERS (continued)

Independent trustees (continued)

Name,
address,
year of birth
 Position held
with the Trusts and
length of service
 Principal occupation(s)
during the past five years
and other relevant
professional experience
 Number of
Funds in the
Columbia Funds
complex
overseen
 Other directorships
held by Trustee
during the past
five years
 
Pamela G. Carlton
c/o Columbia Management
Investment Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1954
 

Trustee since April 2016 for CET I and September 2016 for CET II

 

President, Springboard- Partners in Cross Cultural Leadership (consulting company) since 2003; Managing Director of US Equity Research, JP Morgan Chase, 1999-2003; Director of US Equity Research, Chase Asset Management, 1996-1999; Co-Director Latin America Research, 1993-1996, COO Global Research, 1992-1996, Co-Director of US Research, 1991-1992, Investment Banker, Morgan Stanley, 1982-1991

 

125

 

Trustee, New York Presbyterian Hospital Board (Executive Committee and Chair of Human Resources Committee) since 1996; Director, Darien Rowayton Bank (Audit Committee) since 2017

 
William P. Carmichael
c/o Columbia Management
Investment Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1943
 

Trustee since April 2016 for CET I and September 2016 for CET II

 

Retired; Co-founder, The Succession Fund (provides exit strategies to owners of privately held companies), 1998-2007; Adjunct Professor of Finance, Kelley School of Business, Indiana University, 1993-2007; Senior Vice President, Sara Lee Corporation, 1991-1993; Senior Vice President and Chief Financial Officer, Beatrice Foods Company, 1984-1990; Vice President, Esmark, Inc., 1973-1984; Associate, Price Waterhouse, 1968-1972

 

125

 

Director, The Finish Line (athletic shoes and apparel) since July 2003; former Director, Cobra Electronics Corporation (electronic equipment manufacturer), 1994-August 2014; former Director, Spectrum Brands, Inc. (consumer products), 2002-2009; former Director, Simmons Company (bedding), 2004-2010; former Trustee, BofA Funds Series Trust (11 funds) 2003-2011; former Director, McMoRan Exploration Company (oil and gas exploration and development) 2010-2013; former Director, International Textile Corp., 2012-2016; former Director, hhgregg 2015-2017

 
Patricia M. Flynn
c/o Columbia Management
Investment Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1950
 

Trustee since April 2016 for CET I and September 2016 for CET II

 

Trustee Professor of Economics and Management, Bentley University since 1976 (also teaches and conducts research on corporate governance); Dean, McCallum Graduate School of Business, Bentley University, 1992-2002

 

125

 

Trustee, MA Taxpayers Foundation since 1997; Board of Directors, The MA Business Roundtable since 2003; Board of Governors, Innovation Institute, MA Technology Collaborative since 2010

 
Brian J. Gallagher
c/o Columbia Management
Investment Advisers, LLC,
225 Franklin Street
Mail Drop BX32 05228,
Boston, MA 02110
1954
 

Trustee since December 2017 for each Trust

 

Retired; Partner with Deloitte & Touche LLP and its predecessors, 1977-2016

 

123

 

Trustee, Catholic Schools Foundation since 2004

 

Columbia ETF Trust II | Annual Report 2018
91



TRUSTEES AND OFFICERS (continued)

Independent trustees (continued)

Name,
address,
year of birth
 Position held
with the Trusts and
length of service
 Principal occupation(s)
during the past five years
and other relevant
professional experience
 Number of
Funds in the
Columbia Funds
complex
overseen
 Other directorships
held by Trustee
during the past
five years
 
Catherine James Paglia
c/o Columbia Management
Investment Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1952
 

Trustee since April 2016 for CET I and September 2016 for CET II

 

Director, Enterprise Asset Management, Inc. (private real estate and asset management company) since September 1998; Managing Director and Partner, Interlaken Capital, Inc., 1989-1997; Managing Director, Morgan Stanley, 1982-1989; Vice President, Investment Banking, 1980-1982, Associate, Investment Banking, 1976-1980, Dean Witter Reynolds, Inc.

 

125

 

Director, Valmont Industries, Inc. (irrigation systems manufacturer) since 2012; Trustee, Carleton College (on the Investment Committee); Trustee, Carnegie Endowment for International Peace (on the Investment Committee)

 
Minor M. Shaw
c/o Columbia Management
Investment Advisers, LLC,
225 Franklin Street,
Mail Drop BX32 05228,
Boston, MA 02110
1947
 

Trustee since April 2016 for CET I and September 2016 for CET II

 

President, Micco LLC (private investments) since 2011; President, Micco Corp. (family investment business), 1998-2011

 

125

 

Director, BlueCross BlueShield of South Carolina since April 2008; Director, National Association of Corporate Directors, Carolinas Chapter, since 2013; Board Chair, Hollingsworth Funds since 2016; Advisory Board member, Duke Energy Corp. since