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Columbia ETF Trust II

Filed: 31 May 19, 2:03pm

 

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)

 

Christopher O. Petersen, Esq.

c/o Columbia Management Investment Advisers, LLC

225 Franklin Street

Boston, Massachusetts 02110

 

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, 2019

 

 

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, 100 F Street, NE, Washington, DC 20549. 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, 2019

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

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds' annual and semiannual shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds' website (columbiathreadneedleus.com/etfs), and each time a report is posted you will be notified by mail and provided with a website address to access the report.

If you have already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Funds electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank).

You may elect to receive all future reports in paper free of charge. You can contact your financial intermediary to request that you continue receiving paper copies of your shareholder reports. Your election to receive paper reports will apply to all Columbia Funds held in your account.



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  

62

  
Statement of Operations  

65

  
Statement of Changes in Net Assets  

68

  
Financial Highlights  

72

  
Notes to Financial Statements  

79

  
Report of Independent Registered Public Accounting Firm  

91

  
Federal Income Tax Information  

92

  
Trustees and Officers  

93

  
Additional Information  

99

  

Columbia ETF Trust II | Annual Report 2019



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, CFA

Portfolio Manager

Managed Fund since 2016

The Board of Trustees of Columbia ETF Trust II, based upon the recommendation of the Investment Manager, determined to close and liquidate the Fund. The last day of trading for the Fund on the NYSE Arca Exchange is expected to be June 14, 2019. On or about June 21, 2019, the Fund will make a liquidating distribution to remaining shareholders equal to the shareholder's proportionate interest in the net assets of the Fund.

Average annual total returns (%) (for period ended March 31, 2019)  

 

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

08/15/12

  

-10.15

   

-1.43

   

-0.01

  

Net Asset Value

 

08/15/12

  

-9.46

   

-1.25

   

0.01

  

Tracked Index(1)

    

-9.01

   

-0.02

   

1.57

  

(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 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 columbiathreadneedleus.com/etfs.

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 2019
2



FUND AT A GLANCE (continued)

Columbia Beyond BRICs ETF

Performance of a hypothetical $10,000 investment (August 15, 2012 — March 31, 2019)

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, 2019)

Naspers, Ltd. N Shares (South Africa)

  

3.6

  

Qatar National Bank QPSC (Qatar)

  

2.6

  

PTT PCL NVDR (Thailand)

  

2.5

  

America Movil SAB de CV Series L (Mexico)

  

2.3

  

Fomento Economico Mexicano SAB de CV Series UBD (Mexico)

  

2.3

  

PT Bank Central Asia Tbk (Indonesia)

  

2.2

  

Banca Transilvania SA (Romania)

  

2.1

  

Safaricom PLC (Kenya)

  

2.1

  

National Bank of Kuwait SAKP (Kuwait)

  

2.1

  

Guaranty Trust Bank PLC (Nigeria)

  

2.1

  

Percentages indicated are based upon total investments (excluding Money Market Funds and derivatives, if any).

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, 2019)

Bangladesh

  

5.5

  

Chile

  

3.4

  

Colombia

  

0.6

  

Czech Republic

  

0.4

  

Hungary

  

1.2

  

Indonesia

  

9.4

  

Kenya

  

3.4

  

Kuwait

  

2.9

  

Malaysia

  

8.2

  

Mexico

  

11.1

  

Morocco

  

3.8

  

Nigeria

  

3.9

  

Philippines

  

3.5

  

Qatar

  

3.9

  

Romania

  

2.1

  

South Africa

  

14.8

  

Thailand

  

12.4

  

United Arab Emirates

  

3.0

  

United States(a)

  

0.5

  

Vietnam

  

6.0

  

Total

  

100.0

  

Country Breakdown is based primarily on issuer's place of organization/incorporation. Percentages indicated are based upon total investments and excludes investments in derivatives, if any. The Fund's portfolio composition is subject to change.

(a) Includes investments in Money Market Funds.

Columbia ETF Trust II | Annual Report 2019
3



FUND AT A GLANCE (continued)

Columbia Beyond BRICs ETF

Equity sector breakdown (%) (at March 31, 2019)

Communication Services

  

14.0

  

Consumer Discretionary

  

5.4

  

Consumer Staples

  

8.7

  

Energy

  

4.8

  

Financials

  

43.5

  

Health Care

  

3.5

  

Industrials

  

2.9

  

Materials

  

9.1

  

Real Estate

  

3.7

  

Utilities

  

4.4

  

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 2019
4



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia Beyond BRICs ETF (BBRC)

For the 12-month period that ended March 31, 2019, the Fund returned -9.46% based on net asset value (NAV) and -10.15% based on market price. The Fund's Tracked Index, the FTSE Beyond BRICS Index, returned -9.01%.

The Fund's NAV on March 31, 2018 was $19.49, and it ended the annual period on March 31, 2019 with an NAV of $16.70. The Fund's market price on March 31, 2019 was $16.66 per share.

Emerging market equities struggled amid escalating trade tensions and more

Emerging market equities underperformed both U.S. and developed market international equities during the annual period. The MSCI Emerging Markets Index (Net) returned -7.41% during the annual period, as compared to S&P 500 Index and MSCI EAFE Index (Net) returns of 9.50% and -3.71%, respectively, for the same time period.

Emerging market equities had a challenging start to the annual period, primarily because of escalating trade tensions between the U.S. and China, a hawkish U.S. Federal Reserve (Fed) and resultant currency pressures. Fed tightening, rising bond yields and a stronger U.S. dollar weighed on emerging market currencies. Emerging market equities declined in the third quarter of 2018 as well. The quarter started positively with political developments in Latin America. Brazilian equities initially rebounded, driven by strong earnings results and reduced political uncertainty. Positive trade rhetoric from the Mexican president-elect also boosted investor sentiment, as his inclination toward a re-negotiation of the North American Free Trade Agreement and maintaining fiscal prudence mitigated concerns. However, Chinese equities fell, as the U.S. heightened the trade conflict by threatening to impose tariffs on an additional $267 billion worth of Chinese imports in addition to those already announced. Further, U.S. sanctions and concerns around central bank policy in the face of rising inflation spurred a sell-off in Turkish assets.

Emerging equity markets, like most global equity markets, ended calendar year 2018 on a down note, led by the threat of slowing global economic growth and tightening liquidity. Emerging market equities remained particularly challenged, primarily around persistent U.S.-China trade tensions and the resultant concerns of a Chinese economic slowdown. The success of Jair Bolsonaro in the Brazilian elections brought some relief for markets as did a subsequent temporary truce in the U.S.-China trade war and the accommodative stance of the Chinese government, particularly toward the private sector. But the optimism was short-lived following the arrest of technology company Huawei's Chief Financial Officer. Asian equities broadly suffered, including the equity markets of China, South Korea, Taiwan and Hong Kong. Elsewhere, falling oil prices and geopolitical tensions dampened Russian equities, though Turkish equities rallied as political tensions began to fade.

Following on the heels of a trying year in 2018, emerging market equities, like global equities broadly, came roaring back in the first quarter of 2019. Much of the impetus for the strong equity recovery can be attributed to an abrupt change in monetary policy direction by the Fed, where its bias shifted from a tightening mode to a more dovish stance. Other contributing factors to the sharp market turnaround included a sizable fiscal and monetary stimulus program in China, which seems to have had a fairly immediate impact based on leading economic indicators, and progress made on trade talks between the U.S. and China.

Contributors and detractors

Constituents in the financials, materials and energy sectors detracted most from the Fund's absolute returns during the annual period. Constituents in the information technology, consumer discretionary and utilities sectors contributed most positively to the Fund's absolute returns during the annual period.

From a country perspective, constituents in South Africa, Mexico and Malaysia detracted most from the Fund's absolute returns during the annual period. Conversely, constituents in United Arab Emirates, Qatar and Indonesia contributed most positively to the Fund's absolute returns during the annual period.

Positions in South African communication services provider MTN Group, Vietnamese industrial production company Hoa Phat Group and Mexican telecommunication services provider America Movil detracted most. Each generated a double-digit negative absolute return during the annual period. Positions in United Arab Emirates bank First Abu Dhabi Bank,

Columbia ETF Trust II | Annual Report 2019
5



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia Beyond BRICs ETF (BBRC)

Bangladesh utilities company United Power Generation & Distribution Company and Qatari bank Qatar National Bank contributed most positively. Each generated a double-digit absolute gain 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.

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 2019
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, CFA

Portfolio Manager

Managed Fund since 2016

Average annual total returns (%) (for period ended March 31, 2019)

 

Inception

 

1 Year

 

Life

 

Market Price

 

09/02/15

  

-7.37

   

11.80

  

Net Asset Value

 

09/02/15

  

-6.38

   

11.74

  

MSCI Emerging Markets Index (Net)

    

-7.41

   

10.51

  

Beta Thematic Emerging Markets ex-China Index

    

-8.44

   

10.19

  

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 columbiathreadneedleus.com/etfs.

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 2019
7



FUND AT A GLANCE (continued)

Columbia EM Core ex-China ETF

Performance of a hypothetical $10,000 investment (September 2, 2015 — March 31, 2019)

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, 2019)

Samsung Electronics Co., Ltd. (South Korea)

  

6.6

  

Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan)

  

5.4

  

Infosys, Ltd. ADR (India)

  

3.5

  

ICICI Bank, Ltd. ADR (India)

  

3.5

  

LUKOIL PJSC ADR (Russia)

  

2.9

  

Naspers, Ltd. N Shares (South Africa)

  

2.7

  

Petroleo Brasileiro SA Preference Shares (Brazil)

  

2.2

  

Vale SA (Brazil)

  

2.0

  

Itau Unibanco Holding SA Preference Shares (Brazil)

  

2.0

  

BTS Group Holdings PCL NVDR (Thailand)

  

1.9

  

Percentages indicated are based upon total investments (excluding Money Market Funds and derivatives, if any).

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, 2019)

Brazil

  

9.3

  

Chile

  

1.4

  

India

  

13.1

  

Indonesia

  

3.8

  

Malaysia

  

4.0

  

Mexico

  

3.5

  

Philippines

  

2.3

  

Poland

  

2.3

  

Russia

  

5.3

  

South Africa

  

10.0

  

South Korea

  

16.9

  

Taiwan

  

19.8

  

Thailand

  

6.8

  

Turkey

  

0.7

  

United Kingdom

  

0.5

  

United States(a)

  

0.3

  

Total

  

100.0

  

Country Breakdown is based primarily on issuer's place of organization/incorporation. Percentages indicated are based upon total investments and excludes investments in derivatives, if any. The Fund's portfolio composition is subject to change.

(a) Includes investments in Money Market Funds.

Columbia ETF Trust II | Annual Report 2019
8



FUND AT A GLANCE (continued)

Columbia EM Core ex-China ETF

Equity sector breakdown (%) (at March 31, 2019)

Communication Services

  

3.3

  

Consumer Discretionary

  

9.0

  

Consumer Staples

  

7.2

  

Energy

  

9.4

  

Financials

  

24.6

  

Health Care

  

3.1

  

Industrials

  

5.8

  

Information Technology

  

22.7

  

Materials

  

11.0

  

Real Estate

  

1.8

  

Utilities

  

2.1

  

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 2019
9



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia EM Core ex-China ETF (XCEM)

For the 12-month period that ended March 31, 2019, the Fund returned -6.38% based on net asset value (NAV) and -7.37% based on market price. The MSCI Emerging Markets Index (Net) returned -7.41%, and the Beta Thematic Emerging Markets ex-China Index returned -8.44% during the same time period.

The Fund's NAV on March 31, 2018 was $28.03, and it ended the annual period on March 31, 2019 with an NAV of $25.40. The Fund's market price on March 31, 2019 was $25.51 per share.

Emerging market equities struggled amid escalating trade tensions and more

Emerging market equities underperformed both U.S. and developed market international equities during the annual period. The MSCI Emerging Markets Index (Net) returned -7.41% during the annual period, as compared to S&P 500 Index and MSCI EAFE Index (Net) returns of 9.50% and -3.71%, respectively, for the same time period.

Emerging market equities had a challenging start to the annual period, primarily because of escalating trade tensions between the U.S. and China, a hawkish U.S. Federal Reserve (Fed) and resultant currency pressures. Fed tightening, rising bond yields and a stronger U.S. dollar weighed on emerging market currencies. Emerging market equities declined in the third quarter of 2018 as well. The quarter started positively with political developments in Latin America. Brazilian equities initially rebounded, driven by strong earnings results and reduced political uncertainty. Positive trade rhetoric from the Mexican president-elect also boosted investor sentiment, as his inclination toward a re-negotiation of the North American Free Trade Agreement and maintaining fiscal prudence mitigated concerns. However, Chinese equities fell, as the U.S. heightened the trade conflict by threatening to impose tariffs on an additional $267 billion worth of Chinese imports in addition to those already announced. Further, U.S. sanctions and concerns around central bank policy in the face of rising inflation spurred a sell-off in Turkish assets.

Emerging equity markets, like most global equity markets, ended calendar year 2018 on a down note, led by the threat of slowing global economic growth and tightening liquidity. Emerging market equities remained particularly challenged, primarily around persistent U.S.-China trade tensions and the resultant concerns of a Chinese economic slowdown. The success of Jair Bolsonaro in the Brazilian elections brought some relief for markets as did a subsequent temporary truce in the U.S.-China trade war and the accommodative stance of the Chinese government, particularly toward the private sector. But the optimism was short-lived following the arrest of technology company Huawei's Chief Financial Officer. Asian equities broadly suffered, including the equity markets of China, South Korea, Taiwan and Hong Kong. Elsewhere, falling oil prices and geopolitical tensions dampened Russian equities, though Turkish equities rallied as political tensions began to fade.

Following on the heels of a trying year in 2018, emerging market equities, like global equities broadly, came roaring back in the first quarter of 2019. Much of the impetus for the strong equity recovery can be attributed to an abrupt change in monetary policy direction by the Fed, where its bias shifted from a tightening mode to a more dovish stance. Other contributing factors to the sharp market turnaround included a sizable fiscal and monetary stimulus program in China, which seems to have had a fairly immediate impact based on leading economic indicators, and progress made on trade talks between the U.S. and China.

Contributors and detractors

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

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

Positions in India-based bank Icici Bank, India-based technology services company Infosys and Russian energy company Lukoil contributed most positively. Each generated a double-digit absolute gain during the annual period. Positions in

Columbia ETF Trust II | Annual Report 2019
10



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia EM Core ex-China ETF (XCEM)

South Korea-based biotechnology firm Celltrion, India-based auto manufacturer Tata Motors and South Korea-based electronic equipment and products manufacturer Samsung Electronics 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 MSCI Emerging Markets Index (Net) is a free float-adjusted market capitalization index that is designed to measure market performance of emerging markets.

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 2019
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, CFA

Portfolio Manager

Managed Fund since 2016

The Board of Trustees of Columbia ETF Trust II, based upon the recommendation of the Investment Manager, determined to close and liquidate the Fund. The last day of trading for the Fund on the NYSE Arca Exchange is expected to be June 14, 2019. On or about June 21, 2019, the Fund will make a liquidating distribution to remaining shareholders equal to the shareholder's proportionate interest in the net assets of the Fund.

Average annual total returns (%) (for period ended March 31, 2019)

 

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

08/04/11

  

-10.44

   

0.23

   

-1.20

  

Net Asset Value

 

08/04/11

  

-9.01

   

0.22

   

-1.15

  

MSCI Emerging Markets Index (Net)

    

-7.41

   

3.68

   

1.85

  

Tracked Index(1)

    

-7.98

   

1.96

   

0.31

  

(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 columbiathreadneedleus.com/etfs.

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 2019
12



FUND AT A GLANCE (continued)

Columbia EM Quality Dividend ETF

Performance of a hypothetical $10,000 investment (August 4, 2011 — March 31, 2019)

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, 2019)

Bharat Petroleum Corp., Ltd. (India)

  

2.1

  

Link REIT (Hong Kong)

  

2.1

  

Grupo Mexico SAB de CV Series B (Mexico)

  

2.1

  

Indian Oil Corp., Ltd. (India)

  

2.1

  

PT Telekomunikasi Indonesia Persero Tbk (Indonesia)

  

2.1

  

Formosa Chemicals & Fibre Corp. (Taiwan)

  

2.1

  

Nan Ya Plastics Corp. (Taiwan)

  

2.1

  

CK Asset Holdings Ltd. (Hong Kong)

  

2.1

  

Vale SA (Brazil)

  

2.0

  

Formosa Plastics Corp. (Taiwan)

  

2.0

  

Percentages indicated are based upon total investments (excluding Money Market Funds and derivatives, if any).

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, 2019)

Brazil

  

6.0

  

Chile

  

4.1

  

China

  

9.8

  

Colombia

  

2.0

  

Hong Kong

  

10.2

  

India

  

12.2

  

Indonesia

  

7.9

  

Kenya

  

2.0

  

Malaysia

  

11.9

  

Mexico

  

4.1

  

Poland

  

1.9

  

Qatar

  

2.0

  

South Africa

  

4.0

  

South Korea

  

5.7

  

Taiwan

  

12.2

  

Thailand

  

2.0

  

United Arab Emirates

  

2.0

  

Total

  

100.0

  

Country Breakdown is based primarily on issuer's place of organization/incorporation. Percentages indicated are based upon total investments and excludes investments in derivatives, if any. The Fund's portfolio composition is subject to change.

Columbia ETF Trust II | Annual Report 2019
13



FUND AT A GLANCE (continued)

Columbia EM Quality Dividend ETF

Equity sector breakdown (%) (at March 31, 2019)

Communication Services

  

9.9

  

Consumer Discretionary

  

2.0

  

Consumer Staples

  

10.0

  

Energy

  

11.9

  

Financials

  

19.9

  

Information Technology

  

9.8

  

Materials

  

18.4

  

Real Estate

  

6.1

  

Utilities

  

12.0

  

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 2019
14



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia EM Quality Dividend ETF (HILO)

For the 12-month period that ended March 31, 2019, the Fund returned -9.01% based on net asset value (NAV) and -10.44% based on market price. The MSCI Emerging Markets Index (Net) returned -7.41%, and the Fund's Tracked Index, the Beta Advantage® Emerging Markets Quality Dividend Index, returned -7.98% during the same time period.

The Fund's NAV on March 31, 2018 was $16.00, and it ended the annual period on March 31, 2019 with an NAV of $14.10. The Fund's market price on March 31, 2019 was $14.04 per share.

Emerging market equities struggled amid escalating trade tensions and more

Emerging market equities underperformed both U.S. and developed market international equities during the annual period. The MSCI Emerging Markets Index (Net) returned -7.41% during the annual period, as compared to S&P 500 Index and MSCI EAFE Index (Net) returns of 9.50% and -3.71%, respectively, for the same time period.

Emerging market equities had a challenging start to the annual period, primarily because of escalating trade tensions between the U.S. and China, a hawkish U.S. Federal Reserve (Fed) and resultant currency pressures. Fed tightening, rising bond yields and a stronger U.S. dollar weighed on emerging market currencies. Emerging market equities declined in the third quarter of 2018 as well. The quarter started positively with political developments in Latin America. Brazilian equities initially rebounded, driven by strong earnings results and reduced political uncertainty. Positive trade rhetoric from the Mexican president-elect also boosted investor sentiment, as his inclination toward a re-negotiation of the North American Free Trade Agreement and maintaining fiscal prudence mitigated concerns. However, Chinese equities fell, as the U.S. heightened the trade conflict by threatening to impose tariffs on an additional $267 billion worth of Chinese imports in addition to those already announced. Further, U.S. sanctions and concerns around central bank policy in the face of rising inflation spurred a sell-off in Turkish assets.

Emerging equity markets, like most global equity markets, ended calendar year 2018 on a down note, led by the threat of slowing global economic growth and tightening liquidity. Emerging market equities remained particularly challenged, primarily around persistent U.S.-China trade tensions and the resultant concerns of a Chinese economic slowdown. The success of Jair Bolsonaro in the Brazilian elections brought some relief for markets as did a subsequent temporary truce in the U.S.-China trade war and the accommodative stance of the Chinese government, particularly toward the private sector. But the optimism was short-lived following the arrest of technology company Huawei's Chief Financial Officer. Asian equities broadly suffered, including the equity markets of China, South Korea, Taiwan and Hong Kong. Elsewhere, falling oil prices and geopolitical tensions dampened Russian equities, though Turkish equities rallied as political tensions began to fade.

Following on the heels of a trying year in 2018, emerging market equities, like global equities broadly, came roaring back in the first quarter of 2019. Much of the impetus for the strong equity recovery can be attributed to an abrupt change in monetary policy direction by the Fed, where its bias shifted from a tightening mode to a more dovish stance. Other contributing factors to the sharp market turnaround included a sizable fiscal and monetary stimulus program in China, which seems to have had a fairly immediate impact based on leading economic indicators, and progress made on trade talks between the U.S. and China.

Contributors and detractors

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

From a country perspective, constituents in Brazil, South Africa and China detracted most from absolute returns during the annual period. Conversely, constituents in Hong Kong, Qatar and Kenya contributed most positively to the Fund's absolute returns during the annual period.

Positions in China-based acoustic components manufacturer AAC Technologies, Brazilian highway manager CCR and Brazilian energy company Ultrapar Participacoes detracted most. Each generated a double-digit negative absolute return

Columbia ETF Trust II | Annual Report 2019
15



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia EM Quality Dividend ETF (HILO)

during the annual period. Positions in Qatari bank Qatar National Bank, Hong Kong-based retail real estate investment trust Link REIT and India-based technology services company Infosys contributed most positively. Each of these companies produced a double-digit absolute gain 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.

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. 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 2019
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 TitansTM Index.

Portfolio management

Christopher Lo, CFA

Portfolio Manager

Managed Fund since 2016

Average annual total returns (%) (for period ended March 31, 2019)

 

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

09/14/10

  

-13.90

   

-2.33

   

2.17

  

Net Asset Value

 

09/14/10

  

-13.08

   

-2.25

   

2.21

  

Dow Jones Emerging Markets Consumer TitansTM Index*

    

-12.28

   

-1.20

   

3.38

  

* As of 3/18/2019, the index name changed from Dow Jones Emerging Markets Consumer Titans 30TM Index to Dow Jones Emerging Markets Consumer TitansTM Index.

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 columbiathreadneedleus.com/etfs.

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 TitansTM Index is a free-float market capitalization-weighted index that measures the performance of 60 leading emerging market companies in the Consumer Discretionary, Consumer Staples, and Communication Services sectors as defined by the 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 2019
17



FUND AT A GLANCE (continued)

Columbia Emerging Markets Consumer ETF

Performance of a hypothetical $10,000 investment (September 14, 2010 — March 31, 2019)

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, 2019)

Tencent Holdings, Ltd. (China)

  

5.0

  

Alibaba Group Holding, Ltd. ADR (China)

  

4.9

  

China Mobile, Ltd. (China)

  

4.9

  

Baidu, Inc. ADR (China)

  

4.8

  

Hindustan Unilever, Ltd. (India)

  

4.7

  

Chunghwa Telecom Co., Ltd. (Taiwan)

  

3.9

  

Uni-President Enterprises Corp. (Taiwan)

  

3.5

  

ITC, Ltd. (India)

  

3.3

  

Maruti Suzuki India, Ltd. (India)

  

3.1

  

JD.com, Inc. ADR (China)

  

3.0

  

Percentages indicated are based upon total investments (excluding Money Market Funds and derivatives, if any).

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, 2019)

Brazil

  

7.2

  

Chile

  

1.5

  

China

  

42.8

  

Hong Kong

  

0.4

  

India

  

16.6

  

Indonesia

  

3.2

  

Mexico

  

3.6

  

Russia

  

4.5

  

South Africa

  

4.5

  

Taiwan

  

10.6

  

Thailand

  

3.8

  

United Arab Emirates

  

0.9

  

United States(a)

  

0.4

  

Total

  

100.0

  

Country Breakdown is based primarily on issuer's place of organization/incorporation. Percentages indicated are based upon total investments and excludes investments in derivatives, if any. The Fund's portfolio composition is subject to change.

(a) Includes investments in Money Market Funds.

Columbia ETF Trust II | Annual Report 2019
18



FUND AT A GLANCE (continued)

Columbia Emerging Markets Consumer ETF

Equity sector breakdown (%) (at March 31, 2019)

Communication Services

  

39.2

  

Consumer Discretionary

  

30.9

  

Consumer Staples

  

29.9

  

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 2019
19



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia Emerging Markets Consumer ETF (ECON)

Effective prior to the market open on March 18, 2019, the Fund's benchmark, the Dow Jones Emerging Markets Consumer Titans 30TM Index changed its name to the Dow Jones Emerging Markets Consumer TitansTM Index and modified its construction criteria to more effectively and comprehensively capture the emerging market consumer theme while limiting geographic and single stock concentration. The revised Dow Jones Emerging Markets Consumer TitansTM Index is designed to measure the performance of 60 leading emerging market companies classified in the GICS consumer discretionary, consumer staples and communication services sectors.

For the 12-month period that ended March 31, 2019, the Fund returned -13.08% based on net asset value (NAV) and -13.90% based on market price. The Dow Jones Emerging Markets Consumer TitansTM Index returned -12.28%, during the same time period.

The Fund's NAV on March 31, 2018 was $26.34, and it ended the annual period on March 31, 2019 with an NAV of $22.67. The Fund's market price on March 31, 2019 was $22.60 per share.

Emerging market equities struggled amid escalating trade tensions and more

Emerging market equities underperformed both U.S. and developed market international equities during the annual period. The MSCI Emerging Markets Index (Net) returned -7.41% during the annual period, as compared to S&P 500 Index and MSCI EAFE Index (Net) returns of 9.50% and -3.71%, respectively, for the same time period.

Emerging market equities had a challenging start to the annual period, primarily because of escalating trade tensions between the U.S. and China, a hawkish U.S. Federal Reserve (Fed) and resultant currency pressures. Fed tightening, rising bond yields and a stronger U.S. dollar weighed on emerging market currencies. Emerging market equities declined in the third quarter of 2018 as well. The quarter started positively with political developments in Latin America. Brazilian equities initially rebounded, driven by strong earnings results and reduced political uncertainty. Positive trade rhetoric from the Mexican president-elect also boosted investor sentiment, as his inclination toward a re-negotiation of the North American Free Trade Agreement and maintaining fiscal prudence mitigated concerns. However, Chinese equities fell, as the U.S. heightened the trade conflict by threatening to impose tariffs on an additional $267 billion worth of Chinese imports in addition to those already announced. Further, U.S. sanctions and concerns around central bank policy in the face of rising inflation spurred a sell-off in Turkish assets.

Emerging equity markets, like most global equity markets, ended calendar year 2018 on a down note, led by the threat of slowing global economic growth and tightening liquidity. Emerging market equities remained particularly challenged, primarily around persistent U.S.-China trade tensions and the resultant concerns of a Chinese economic slowdown. The success of Jair Bolsonaro in the Brazilian elections brought some relief for markets as did a subsequent temporary truce in the U.S.-China trade war and the accommodative stance of the Chinese government, particularly toward the private sector. But the optimism was short-lived following the arrest of technology company Huawei's Chief Financial Officer. Asian equities broadly suffered, including the equity markets of China, South Korea, Taiwan and Hong Kong. Elsewhere, falling oil prices and geopolitical tensions dampened Russian equities, though Turkish equities rallied as political tensions began to fade.

Following on the heels of a trying year in 2018, emerging market equities, like global equities broadly, came roaring back in the first quarter of 2019. Much of the impetus for the strong equity recovery can be attributed to an abrupt change in monetary policy direction by the Fed, where its bias shifted from a tightening mode to a more dovish stance. Other contributing factors to the sharp market turnaround included a sizable fiscal and monetary stimulus program in China, which seems to have had a fairly immediate impact based on leading economic indicators, and progress made on trade talks between the U.S. and China.

Columbia ETF Trust II | Annual Report 2019
20



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia Emerging Markets Consumer ETF (ECON)

Contributors and detractors

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

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

Positions in Brazilian beverage producer and distributor Ambev, India-based auto manufacturer Tata Motors and South African consumer staples retailer Shoprite Holdings detracted most. Each of these companies produced a double-digit negative absolute return during the annual period. Positions in China-based educational services provider Tal Education Group, India-based consumer products manufacturer Hindustan Unilever and India-based diversified consumer products company ITC contributed most positively. Each generated a double-digit absolute gain 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.

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 2019
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, CFA

Portfolio Manager

Managed Fund since 2016

Average annual total returns (%) (for period ended March 31, 2019)

 

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

08/10/11

  

-8.44

   

11.34

   

10.32

  

Net Asset Value

 

08/10/11

  

-8.03

   

11.30

   

10.27

  

Indxx India Consumer Index

    

-6.72

   

12.93

   

11.91

 

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 columbiathreadneedleus.com/etfs.

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 maximum 30-stock free-float adjusted market capitalization weighted index designed to measure the market performance of companies in the consumer industry in India as defined by Indxx's proprietary methodology. The index consists of common stocks listed on the primary 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 2019
22



FUND AT A GLANCE (continued)

Columbia India Consumer ETF

Performance of a hypothetical $10,000 investment (August 10, 2011 — March 31, 2019)

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, 2019)

Nestle India, Ltd.

  

5.3

  

Titan Co., Ltd.

  

5.3

  

ITC, Ltd.

  

5.0

  

Britannia Industries Ltd.

  

4.9

  

Mahindra & Mahindra, Ltd.

  

4.9

  

Hindustan Unilever, Ltd.

  

4.9

  

Bajaj Auto, Ltd.

  

4.8

  

Tata Motors, Ltd.

  

4.7

  

Maruti Suzuki India, Ltd.

  

4.7

  

Eicher Motors, Ltd.

  

4.6

  

Percentages indicated are based upon total investments (excluding Money Market Funds and derivatives, if any).

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, 2019)

Consumer Discretionary

  

54.3

  

Consumer Staples

  

45.7

  

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 2019
23



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia India Consumer ETF (INCO)

For the 12-month period that ended March 31, 2019, the Fund returned -8.03% based on net asset value (NAV) and -8.44% based on market price. The Indxx India Consumer Index returned -6.72% during the same time period.

The Fund's NAV on March 31, 2018 was $45.81, and it ended the annual period on March 31, 2019 with an NAV of $42.08. The Fund's market price on March 31, 2019 was $42.23 per share.

Indian equities gained despite rising crude prices and financial sector concerns

The Indian equity market enjoyed solid returns during the annual period despite rising crude oil prices and financial sector concerns. The MSCI India Index returned 6.75% for the annual period, significantly outperforming the -7.41% return of the MSCI Emerging Markets Index (Net). Still, there were challenges. Brent crude oil rose to as high as $85 per barrel in October 2018, the highest level seen since November 2014. This increase was a result of the Organization of Petroleum Exporting Countries (OPEC) refusing to ramp up production, and the U.S. persuading buyers to cut down imports of Iranian oil. As the world's third largest oil importer, India faced the brunt of the rising crude oil prices, a situation exacerbated by a depreciating rupee. The annual period also saw a major liquidity issue surrounding Infrastructure Leasing and Financial Services, an Indian infrastructure development and finance company. The lender defaulted on its short-term commercial papers, which rocked the debt market. Throughout September and October 2018, the Indian equity market declined substantially on the back of non-banking financial company sector liquidity fears. Further pressuring investor sentiment was Finance Minister Arun Jaitley re-introducing a long-term capital gains tax and levying a tax on profits generated from assets such as shares and share-oriented products. On the positive side, Indian Prime Minister Narendra Modi's government released on February 1, 2019 its last budget before the April 2019 general elections. It focused on supporting farmers and those economically less privileged, while continuing its push toward better physical and social infrastructure. India's general election was scheduled to begin on April 11, 2019, and after seven phases, the results are anticipated to be reported on May 23. Campaign promises of both Modi's Bharatiya Janata Party (BJP) and Gandhi's Indian National Congress include increased spending to provide income support to the poor and to farmers. Also, BJP has pledged to spend significant monies on infrastructure. If campaign promises are implemented, such spending should help support demand in consumer-oriented sectors.

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.

Contributors and detractors

Constituents in consumer discretionary, information technology and energy detracted most from the Fund's absolute returns during the annual period. Consumer staples, materials and utilities contributed most positively to the Fund's absolute returns during the annual period.

Positions in auto manufacturer Maruti Suzuki India, motorcycle manufacturer Hero MotoCorp and auto manufacturer Tata Motors detracted most. Each generated a double-digit negative absolute return during the annual period. Positions in food products manufacturer Nestle India, diversified consumer products manufacturer Hindustan Unilever and jewelry manufacturer and retailer and perfume producer Titan contributed most positively. Each of these companies produced a double-digit absolute gain 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.

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

Columbia ETF Trust II | Annual Report 2019
24



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia India Consumer ETF (INCO)

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 2019
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, CFA

Portfolio Manager

Managed Fund since 2016

The Board of Trustees of Columbia ETF Trust II, based upon the recommendation of the Investment Manager, determined to close and liquidate the Fund. The last day of trading for the Fund on the NYSE Arca Exchange is expected to be June 14, 2019. On or about June 21, 2019, the Fund will make a liquidating distribution to remaining shareholders equal to the shareholder's proportionate interest in the net assets of the Fund.

Average annual total returns (%) (for period ended March 31, 2019)

 

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

08/11/10

  

-14.36

   

2.20

   

-3.57

  

Net Asset Value

 

08/11/10

  

-12.39

   

2.52

   

-3.46

  

Indxx India Infrastructure Index

    

-11.41

   

3.65

   

-2.36

  

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 columbiathreadneedleus.com/etfs.

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 2019
26



FUND AT A GLANCE (continued)

Columbia India Infrastructure ETF

Performance of a hypothetical $10,000 investment (August 11, 2010 — March 31, 2019)

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, 2019)

Larsen & Toubro, Ltd.

  

5.6

  

Power Grid Corp. of India, Ltd.

  

5.5

  

NTPC, Ltd.

  

5.2

  

Adani Ports and Special Economic Zone, Ltd.

  

5.1

  

UltraTech Cement, Ltd.

  

5.1

  

GAIL India, Ltd.

  

5.0

  

Bharti Airtel, Ltd.

  

4.6

  

Hindalco Industries, Ltd.

  

4.6

  

Tata Steel, Ltd.

  

4.5

  

Grasim Industries Ltd.

  

4.5

  

Percentages indicated are based upon total investments (excluding Money Market Funds and derivatives, if any).

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, 2019)

Communication Services

  

12.5

  

Consumer Discretionary

  

3.9

  

Energy

  

3.2

  

Industrials

  

26.8

  

Materials

  

32.2

  

Real Estate

  

1.6

  

Utilities

  

19.8

  

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 2019
27



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia India Infrastructure ETF (INXX)

For the 12-month period that ended March 31, 2019, the Fund returned -12.39% based on net asset value (NAV) and -14.36% based on market price. The Indxx India Infrastructure Index returned -11.41% during the same time period.

The Fund's NAV on March 31, 2018 was $13.98, and it ended the annual period on March 31, 2019 with an NAV of $12.08. The Fund's market price on March 31, 2019 was $11.96 per share.

Indian equities gained despite rising crude prices and financial sector concerns

The Indian equity market enjoyed solid returns during the annual period despite rising crude oil prices and financial sector concerns. The MSCI India Index returned 6.75% for the annual period, significantly outperforming the -7.41% return of the MSCI Emerging Markets Index (Net). Still, there were challenges. Brent crude oil rose to as high as $85 per barrel in October 2018, the highest level seen since November 2014. This increase was a result of the Organization of Petroleum Exporting Countries (OPEC) refusing to ramp up production, and the U.S. persuading buyers to cut down imports of Iranian oil. As the world's third largest oil importer, India faced the brunt of the rising crude oil prices, a situation exacerbated by a depreciating rupee. The annual period also saw a major liquidity issue surrounding Infrastructure Leasing and Financial Services, an Indian infrastructure development and finance company. The lender defaulted on its short-term commercial papers, which rocked the debt market. Throughout September and October 2018, the Indian equity market declined substantially on the back of non-banking financial company sector liquidity fears. Further pressuring investor sentiment was Finance Minister Arun Jaitley re-introducing a long-term capital gains tax and levying a tax on profits generated from assets such as shares and share-oriented products. On the positive side, Indian Prime Minister Narendra Modi's government released on February 1, 2019 its last budget before the April 2019 general elections. It focused on supporting farmers and those economically less privileged, while continuing its push toward better physical and social infrastructure. India's general election was scheduled to begin on April 11, 2019, and after seven phases, the results are anticipated to be reported on May 23. Campaign promises of both Modi's Bharatiya Janata Party (BJP) and Gandhi's Indian National Congress include increased spending to provide income support to the poor and to farmers. Also, BJP has pledged to spend significant monies on infrastructure. If campaign promises are implemented, such spending should help support demand in consumer-oriented sectors.

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.

Contributors and detractors

Constituents in the materials, information technology and energy sectors detracted most from the Fund's absolute returns during the annual period. Constituents in the consumer discretionary sector contributed positively to the Fund's absolute returns during the annual period.

Positions in commercial vehicles manufacturer Eicher Motors, transportation equipment manufacturer Ashok Leyland and telecommunication services provider Vodafone Idea detracted most. Each generated a double-digit negative absolute return during the annual period. Positions in electrical equipment manufacturer Havells India, integrated steel producer JSW Steel and utilities company Power Grid Corp of India contributed most positively. Havells India produced a double-digit absolute gain during the annual period; JSW Steel posted a modestly negative absolute return during the annual period; and Power Grid Corp of India generated a single-digit absolute gain 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.

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

Columbia ETF Trust II | Annual Report 2019
28



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia India Infrastructure ETF (INXX)

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 2019
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, CFA

Portfolio Manager

Managed Fund since 2016

The Board of Trustees of Columbia ETF Trust II, based upon the recommendation of the Investment Manager, determined to close and liquidate the Fund. The last day of trading for the Fund on the NYSE Arca Exchange is expected to be June 14, 2019. On or about June 21, 2019, the Fund will make a liquidating distribution to remaining shareholders equal to the shareholder's proportionate interest in the net assets of the Fund.

Average annual total returns (%) (for period ended March 31, 2019)

 

Inception

 

1 Year

 

5 Years

 

Life

 

Market Price

 

07/07/10

  

-22.98

   

4.26

   

-2.31

  

Net Asset Value

 

07/07/10

  

-22.00

   

4.18

   

-2.32

  

Indxx India Small Cap Index

    

-20.41

   

5.67

   

-0.94

  

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 columbiathreadneedleus.com/etfs.

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 2019
30



FUND AT A GLANCE (continued)

Columbia India Small Cap ETF

Performance of a hypothetical $10,000 Investment (July 7, 2010 — March 31, 2019)

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, 2019)

IDFC Ltd.

  

2.9

  

Mahanagar Gas, Ltd.

  

2.8

  

Kajaria Ceramics Ltd.

  

2.7

  

NIIT Technologies, Ltd.

  

2.6

  

Escorts, Ltd.

  

2.6

  

DCB Bank, Ltd.

  

2.6

  

Century Textiles & Industries, Ltd.

  

2.6

  

NCC, Ltd.

  

2.6

  

VIP Industries, Ltd.

  

2.5

  

Dewan Housing Finance Corp., Ltd.

  

2.4

  

Percentages indicated are based upon total investments (excluding Money Market Funds and derivatives, if any).

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, 2019)

Communication Services

  

5.8

  

Consumer Discretionary

  

10.1

  

Consumer Staples

  

6.6

  

Energy

  

0.7

  

Financials

  

23.5

  

Health Care

  

5.8

  

Industrials

  

20.8

  

Information Technology

  

11.3

  

Materials

  

8.4

  

Real Estate

  

1.6

  

Utilities

  

5.4

  

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 2019
31



MANAGER DISCUSSION OF FUND PERFORMANCE

Columbia India Small Cap ETF (SCIN)

For the 12-month period that ended March 31, 2019, the Fund returned -22.00% based on net asset value (NAV) and -22.98% based on market price. The Indxx India Small Cap Index returned -20.41% during the same time period.

The Fund's NAV on March 31, 2018 was $19.50, and it ended the annual period on March 31, 2019 with an NAV of $15.21. The Fund's market price on March 31, 2019 was $15.22 per share.

Indian equities gained despite rising crude prices and financial sector concerns

The Indian equity market enjoyed solid returns during the annual period despite rising crude oil prices and financial sector concerns. The MSCI India Index returned 6.75% for the annual period, significantly outperforming the -7.41% return of the MSCI Emerging Markets Index (Net). Still, there were challenges. Brent crude oil rose to as high as $85 per barrel in October 2018, the highest level seen since November 2014. This increase was a result of the Organization of Petroleum Exporting Countries (OPEC) refusing to ramp up production, and the U.S. persuading buyers to cut down imports of Iranian oil. As the world's third largest oil importer, India faced the brunt of the rising crude oil prices, a situation exacerbated by a depreciating rupee. The annual period also saw a major liquidity issue surrounding Infrastructure Leasing and Financial Services, an Indian infrastructure development and finance company. The lender defaulted on its short-term commercial papers, which rocked the debt market. Throughout September and October 2018, the Indian equity market declined substantially on the back of non-banking financial company sector liquidity fears. Further pressuring investor sentiment was Finance Minister Arun Jaitley re-introducing a long-term capital gains tax and levying a tax on profits generated from assets such as shares and share-oriented products. On the positive side, Indian Prime Minister Narendra Modi's government released on February 1, 2019 its last budget before the April 2019 general elections. It focused on supporting farmers and those economically less privileged, while continuing its push toward better physical and social infrastructure. India's general election was scheduled to begin on April 11, 2019, and after seven phases, the results are anticipated to be reported on May 23. Campaign promises of both Modi's Bharatiya Janata Party (BJP) and Gandhi's Indian National Congress include increased spending to provide income support to the poor and to farmers. Also, BJP has pledged to spend significant monies on infrastructure. If campaign promises are implemented, such spending should help support demand in consumer-oriented sectors.

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.

Contributors and detractors

Constituents in the information technology, materials and financials sectors detracted most from absolute returns during the annual period. Constituents in the communication services and utilities sectors contributed most positively to the Fund's absolute returns.

Positions in automotive technology solutions provider Birlasoft India, home improvement and building products retailer Shankara Building Products and plastic storage and material handling products company Sintex Plastics Technology detracted most. Each generated a double-digit negative absolute return during the annual period. Positions in ethyl alcohol, ethanol and organic manure manufacturer Balrampur Chini Mills, fermentation systems engineering firm Praj Industries and search engine operator Just Dial contributed most positively. Each produced a double-digit absolute gain 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.

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

Columbia ETF Trust II | Annual Report 2019
32



MANAGER DISCUSSION OF FUND PERFORMANCE (continued)

Columbia India Small Cap ETF (SCIN)

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 2019
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, 2019.

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, 2018 — March 31, 2019

  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

   

986.40

   

1,021.79

   

3.12

   

3.18

   

0.63

  

Columbia EM Core ex-China ETF

  

1,000.00

   

1,000.00

   

1,012.00

   

1,023.19

   

1.76

   

1.77

   

0.35

  

Columbia EM Quality Dividend ETF

  

1,000.00

   

1,000.00

   

981.40

   

1,021.94

   

2.96

   

3.02

   

0.60

  

Columbia Emerging Markets Consumer ETF

  

1,000.00

   

1,000.00

   

1,022.10

   

1,021.84

   

3.13

   

3.13

   

0.62

  

Columbia India Consumer ETF

  

1,000.00

   

1,000.00

   

1,022.60

   

1,021.09

   

3.88

   

3.88

   

0.77

  

Columbia India Infrastructure ETF

  

1,000.00

   

1,000.00

   

1,030.10

   

1,020.24

   

4.76

   

4.73

   

0.94

  

Columbia India Small Cap ETF

  

1,000.00

   

1,000.00

   

1,078.70

   

1,021.19

   

3.89

   

3.78

   

0.75

  

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.

Columbia ETF Trust II | Annual Report 2019
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, 2019.

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, 2019
   
     

0 - 49.9

   

365

   

361

  
     

50 - 99.9

   

336

   

327

  
     

100 - 199.9

   

120

   

140

  
     

> 200

   

5

   

11

  
     Total   

826

   

839

  
    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, 2019
   
     

0 - 49.9

   

248

   

150

  
     

50 - 99.9

   

262

   

57

  
     

100 - 199.9

   

149

   

20

  
     

> 200

   

12

   

1

  
     Total   

671

   

228

  
    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, 2019
   
     

0 - 49.9

   

430

   

528

  
     

50 - 99.9

   

189

   

464

  
     

100 - 199.9

   

50

   

230

  
     

> 200

   

8

   

26

  
     Total   

677

   

1248

  

Columbia ETF Trust II | Annual Report 2019
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, 2019
   
     

0 - 49.9

   

892

   

502

  
     

50 - 99.9

   

383

   

229

  
     

100 - 199.9

   

58

   

63

  
     

> 200

   

8

   

15

  
     

Total

   

1341

   

809

  
    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, 2019
   
     

0 - 49.9

   

523

   

400

  
     

50 - 99.9

   

362

   

196

  
     

100 - 199.9

   

261

   

102

  
     

> 200

   

61

   

16

  
     

Total

   

1207

   

714

  
    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, 2019
   
     

0 - 49.9

   

525

   

435

  
     

50 - 99.9

   

359

   

324

  
     

100 - 199.9

   

244

   

201

  
     

> 200

   

40

   

45

  
     Total   

1168

   

1005

  
    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, 2019
   
     

0 - 49.9

   

493

   

435

  
     

50 - 99.9

   

306

   

339

  
     

100 - 199.9

   

242

   

284

  
     

> 200

   

40

   

59

  
     Total   

1081

   

1117

  

Columbia ETF Trust II | Annual Report 2019
36



PORTFOLIO OF INVESTMENTS

Columbia Beyond BRICs ETF

March 31, 2019

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 99.0%

Issuer

 

Shares

 

Value ($)

 

Bangladesh 5.5%

 

BRAC Bank Ltd.(a)

  

182,352

   

167,180

  

GrameenPhone, Ltd.

  

45,902

   

221,793

  

Square Pharmaceuticals, Ltd.

  

153,518

   

488,148

  

United Power Generation and Distribution Co. Ltd.

  

103,099

   

492,904

  

Total Bangladesh

    

1,370,025

  

Chile 3.3%

 

Banco de Chile

  

799,518

   

117,717

  

Banco Santander Chile

  

1,783,976

   

134,203

  

Empresas CMPC SA

  

32,123

   

113,296

  

Empresas COPEC SA

  

14,022

   

178,036

  

Enel Americas SA

  

793,770

   

141,122

  

S.A.C.I. Falabella

  

20,766

   

154,416

  

Total Chile

    

838,790

  

Colombia 0.6%

 

Ecopetrol SA

  

136,479

   

146,313

  

Czech Republic 0.4%

 

CEZ AS

  

4,547

   

106,832

  

Hungary 1.1%

 

OTP Bank Nyrt.

  

6,565

   

288,782

  

Indonesia 9.3%

 

PT Astra International Tbk

  

582,532

   

299,652

  

PT Bank Central Asia Tbk

  

277,808

   

541,375

  

PT Bank Mandiri Persero Tbk(a)

  

533,003

   

278,853

  

PT Bank Negara Indonesia Persero Tbk(a)

  

212,981

   

140,591

  

PT Bank Rakyat Indonesia Persero Tbk

  

1,523,256

   

440,717

  

PT Hanjaya Mandala Sampoerna Tbk

  

251,615

   

66,261

  

PT Telekomunikasi Indonesia Persero Tbk

  

1,336,010

   

370,593

  

PT Unilever Indonesia Tbk

  

33,010

   

114,109

  

PT United Tractors Tbk

  

43,590

   

82,803

  

Total Indonesia

    

2,334,954

  

Kenya 3.4%

 

Equity Group Holdings PLC

  

775,795

   

320,328

  

Safaricom PLC

  

1,917,811

   

524,424

  

Total Kenya

    

844,752

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Kuwait 2.9%

 

Kuwait Finance House KSCP

  

93,883

   

215,490

  

National Bank of Kuwait SAKP

  

175,039

   

518,037

  

Total Kuwait

    

733,527

  

Malaysia 8.1%

 

Axiata Group Bhd

  

127,913

   

130,028

  

CIMB Group Holdings Bhd

  

193,906

   

244,609

  

DiGi.Com Bhd

  

105,425

   

117,497

  

IHH Healthcare Bhd

  

85,606

   

120,991

  

Malayan Banking Bhd

  

168,213

   

381,956

  

Petronas Chemicals Group Bhd

  

81,499

   

182,861

  

Public Bank Bhd

  

88,724

   

503,331

  

Tenaga Nasional Bhd

  

113,896

   

353,196

  

Total Malaysia

    

2,034,469

  

Mexico 11.1%

 

America Movil SAB de CV Series L

  

789,837

   

565,173

  

Arca Continental SAB de CV

  

11,195

   

62,406

  

Cemex SAB de CV Series CPO(a)

  

434,494

   

203,163

  
Fomento Economico Mexicano SAB de CV
Series UBD
  

60,500

   

558,761

  

Grupo Elektra, SAB de CV(a)

  

1,863

   

100,790

  

Grupo Financiero Banorte SAB de CV Class O

  

80,972

   

440,561

  

Grupo Mexico SAB de CV Series B

  

103,203

   

283,898

  

Grupo Televisa SAB Series CPO

  

71,670

   

158,840

  

Wal-Mart de Mexico SAB de CV

  

148,519

   

397,531

  

Total Mexico

    

2,771,123

  

Morocco 3.8%

 

Attijariwafa Bank

  

10,663

   

468,914

  

Maroc Telecom

  

32,341

   

480,209

  

Total Morocco

    

949,123

  

Nigeria 3.9%

 

Guaranty Trust Bank PLC

  

5,100,361

   

509,330

  

Zenith Bank PLC

  

7,560,035

   

456,534

  

Total Nigeria

    

965,864

  

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

Columbia ETF Trust II | Annual Report 2019
37



PORTFOLIO OF INVESTMENTS (continued)

Columbia Beyond BRICs ETF

March 31, 2019

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Philippines 3.5%

 

Ayala Corp.

  

7,090

   

126,921

  

Ayala Land, Inc.

  

199,577

   

170,653

  

BDO Unibank, Inc.

  

56,357

   

143,603

  

SM Investments Corp.

  

13,901

   

247,258

  

SM Prime Holdings, Inc.

  

260,060

   

197,608

  

Total Philippines

    

886,043

  

Qatar 3.9%

 

Industries Qatar QSC

  

5,759

   

195,987

  

Qatar Islamic Bank SAQ

  

3,336

   

138,956

  

Qatar National Bank QPSC

  

12,791

   

634,149

  

Total Qatar

    

969,092

  

Romania 2.1%

 

Banca Transilvania SA

  

1,090,889

   

531,785

  

South Africa 14.7%

 

Absa Group Ltd.

  

17,596

   

185,584

  

Aspen Pharmacare Holdings, Ltd.

  

9,256

   

59,677

  

FirstRand, Ltd.

  

79,086

   

345,272

  

MTN Group, Ltd.

  

44,764

   

275,079

  

MultiChoice Group Ltd.(a)

  

10,602

   

88,734

  

Naspers, Ltd. N Shares

  

3,885

   

897,659

  

Nedbank Group, Ltd.

  

9,828

   

171,219

  

Old Mutual Ltd.

  

120,092

   

182,121

  

Remgro, Ltd.

  

12,803

   

164,472

  

Sanlam, Ltd.

  

43,277

   

221,348

  

Sasol, Ltd.

  

13,847

   

432,081

  

Shoprite Holdings, Ltd.

  

11,725

   

128,956

  

Standard Bank Group, Ltd.

  

31,758

   

407,907

  

Vodacom Group, Ltd.

  

15,789

   

121,998

  

Total South Africa

    

3,682,107

  

Thailand 12.4%

 

Advanced Info Service PCL NVDR

  

32,171

   

186,528

  

Airports of Thailand PCL NVDR

  

123,628

   

264,903

  

Bangkok Bank PCL NVDR

  

14,575

   

95,069

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Bangkok Dusit Medical Services PCL NVDR

  

253,007

   

197,718

  

Central Pattana PCL NVDR

  

71,147

   

164,220

  
CP ALL PCL NVDR  

150,245

   

353,894

  

Indorama Ventures PCL NVDR

  

51,426

   

80,619

  

Kasikornbank PCL NVDR

  

33,903

   

200,309

  

PTT Exploration & Production PCL NVDR

  

39,789

   

157,350

  

PTT Global Chemical PCL NVDR NVDR

  

58,517

   

124,004

  

PTT PCL NVDR

  

411,930

   

623,055

  

Siam Cement PCL (The) NVDR

  

24,188

   

367,374

  

Siam Commercial Bank PCL NVDR

  

69,300

   

288,250

  

Total Thailand

    

3,103,293

  

United Arab Emirates 3.0%

 

Dubai Islamic Bank PJSC

  

47,361

   

63,181

  

Emaar Properties PJSC

  

101,069

   

128,775

  

Emirates Telecommunications Group Co. PJSC

  

50,108

   

227,819

  

First Abu Dhabi Bank PJSC

  

78,209

   

324,921

  

Total United Arab Emirates

    

744,696

  

Vietnam 6.0%

 

Bank for Foreign Trade of Vietnam JSC

  

99,620

   

288,934

  

Hoa Phat Group JSC(a)

  

338,846

   

470,214

  

No Va Land Investment Group Corp.(a)

  

107,694

   

258,978

  

Vietnam Dairy Products JSC

  

82,074

   

476,796

  

Total Vietnam

    

1,494,922

  
Total Common Stocks
(Cost: $24,335,358)
    

24,796,492

  

Money Market Funds 0.5%

  

Shares

 

Value ($)

 
Goldman Sachs Financial Square Funds — Treasury
Instruments Fund, Institutional Shares, 2.263%(b)
  

136,124

   

136,124

  
Total Money Market Funds
(Cost $136,124)
    

136,124

  
Total Investments in Securities
(Cost: $24,471,482)
    

24,932,616

  

Other Assets & Liabilities, Net

    

113,026

  

Net Assets

    

25,045,642

  

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

Columbia ETF Trust II | Annual Report 2019
38



PORTFOLIO OF INVESTMENTS (continued)

Columbia Beyond BRICs ETF

March 31, 2019

Notes to Portfolio of Investments

(a)  Non-income producing investment.

(b)  The rate shown is the seven-day current annualized yield at March 31, 2019.

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 recommendations 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 2019
39



PORTFOLIO OF INVESTMENTS (continued)

Columbia Beyond BRICs ETF

March 31, 2019

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments at March 31, 2019:

  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

  

1,370,025

   

   

   

1,370,025

  

Chile

  

838,790

   

   

   

838,790

  

Colombia

  

146,313

   

   

   

146,313

  

Czech Republic

  

106,832

   

   

   

106,832

  

Hungary

  

288,782

   

   

   

288,782

  

Indonesia

  

2,334,954

   

   

   

2,334,954

  

Kenya

  

844,752

   

   

   

844,752

  

Kuwait

  

733,527

   

   

   

733,527

  

Malaysia

  

2,034,469

   

   

   

2,034,469

  

Mexico

  

2,771,123

   

   

   

2,771,123

  

Morocco

  

949,123

   

   

   

949,123

  

Nigeria

  

965,864

   

   

   

965,864

  

Philippines

  

886,043

   

   

   

886,043

  

Qatar

  

969,092

   

   

   

969,092

  

Romania

  

531,785

   

   

   

531,785

  

South Africa

  

3,682,107

   

   

   

3,682,107

  

Thailand

  

3,103,293

   

   

   

3,103,293

  

United Arab Emirates

  

744,696

   

   

   

744,696

  

Vietnam

  

1,494,922

   

   

   

1,494,922

  

Total Common Stocks

  

24,796,492

   

   

   

24,796,492

  

Money Market Funds

  

136,124

   

   

   

136,124

  

Total Investments in Securities

  

24,932,616

   

   

   

24,932,616

  

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 2019
40



PORTFOLIO OF INVESTMENTS

Columbia EM Core ex-China ETF

March 31, 2019

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 93.3%

Issuer

 

Shares

 

Value ($)

 

Brazil 3.2%

 

B3 SA — Brasil Bolsa Balcao

  

9,944

   

82,073

  

Banco do Brasil SA

  

4,157

   

52,041

  

Vale SA

  

17,603

   

230,367

  

Total Brazil

    

364,481

  

Chile 1.3%

 

Cia Cervecerias Unidas SA

  

4,459

   

63,838

  

Empresas COPEC SA

  

7,214

   

91,595

  

Total Chile

    

155,433

  

India 13.0%

 

Dr. Reddy's Laboratories, Ltd. ADR

  

3,150

   

127,575

  

HDFC Bank, Ltd. ADR

  

1,779

   

206,204

  

ICICI Bank, Ltd. ADR

  

34,481

   

395,152

  

Infosys, Ltd. ADR

  

36,160

   

395,229

  

Tata Motors, Ltd. ADR(a)

  

6,544

   

82,192

  

Vedanta, Ltd. ADR

  

9,759

   

103,055

  

Wipro, Ltd. ADR

  

25,601

   

101,892

  

WNS Holdings, Ltd. ADR(a)

  

1,447

   

77,082

  

Total India

    

1,488,381

  

Indonesia 3.8%

 

PT Astra International Tbk

  

116,514

   

59,934

  

PT Bank Central Asia Tbk

  

106,908

   

208,336

  

PT Bank Mandiri Persero Tbk(a)

  

179,858

   

94,097

  

PT Telekomunikasi Indonesia Persero Tbk

  

255,058

   

70,750

  

Total Indonesia

    

433,117

  

Malaysia 3.9%

 

Dialog Group Bhd

  

203,000

   

157,627

  

IHH Healthcare Bhd

  

83,400

   

117,873

  

Petronas Dagangan Bhd

  

14,300

   

87,569

  

Tenaga Nasional Bhd

  

29,000

   

89,930

  

Total Malaysia

    

452,999

  

Mexico 3.5%

 

Cemex SAB de CV Series CPO(a)

  

58,517

   

27,362

  

Coca-Cola Femsa SAB de CV Series L

  

14,246

   

94,234

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Grupo Bimbo SAB de CV Series A

  

29,598

   

61,919

  

Grupo Mexico SAB de CV Series B

  

35,324

   

97,172

  

Wal-Mart de Mexico SAB de CV

  

43,629

   

116,779

  

Total Mexico

    

397,466

  

Philippines 2.3%

 

Aboitiz Power Corp.

  

75,300

   

50,764

  

Jollibee Foods Corp.

  

9,440

   

56,989

  

Manila Electric Co.

  

5,620

   

40,670

  

Puregold Price Club, Inc.

  

44,500

   

40,763

  

SM Investments Corp.

  

4,110

   

73,105

  

Total Philippines

    

262,291

  

Poland 2.3%

 

Powszechna Kasa Oszczednosci Bank Polski SA

  

14,512

   

146,034

  

Powszechny Zaklad Ubezpieczen SA

  

10,714

   

113,181

  

Total Poland

    

259,215

  

Russia 5.3%

 

Gazprom PJSC ADR

  

21,695

   

97,931

  

LUKOIL PJSC ADR

  

3,725

   

333,760

  

Sberbank of Russia PJSC ADR

  

13,162

   

174,528

  

Total Russia

    

606,219

  

South Africa 10.0%

 

AngloGold Ashanti, Ltd.

  

4,923

   

65,403

  

Bid Corp., Ltd.

  

5,483

   

113,300

  

Bidvest Group, Ltd. (The)

  

6,822

   

91,535

  

Coronation Fund Managers, Ltd.

  

19,014

   

60,571

  

FirstRand, Ltd.

  

17,463

   

76,240

  

Hyprop Investments, Ltd.

  

11,459

   

56,003

  

MTN Group, Ltd.

  

7,227

   

44,411

  

Naspers, Ltd. N Shares

  

1,343

   

310,310

  

Sanlam, Ltd.

  

12,712

   

65,018

  

Sasol, Ltd.

  

3,287

   

102,567

  

Standard Bank Group, Ltd.

  

6,897

   

88,587

  

Woolworths Holdings, Ltd.

  

21,107

   

68,028

  

Total South Africa

    

1,141,973

  

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

Columbia ETF Trust II | Annual Report 2019
41



PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Core ex-China ETF

March 31, 2019

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

South Korea 16.9%

 

Celltrion, Inc.(a)

  

708

   

112,877

  

Hana Financial Group, Inc.

  

1,965

   

63,013

  

Hyundai Mobis Co., Ltd.

  

286

   

52,534

  

Hyundai Motor Co.

  

873

   

91,907

  

KB Financial Group, Inc.

  

3,625

   

133,650

  

Kia Motors Corp.

  

2,328

   

72,500

  

KT&G Corp.

  

798

   

72,763

  

LG Electronics, Inc.

  

1,034

   

68,411

  

POSCO

  

494

   

110,106

  

Samsung Electro-Mechanics Co., Ltd.

  

607

   

55,882

  

Samsung Electronics Co., Ltd.

  

19,161

   

753,712

  

Shinhan Financial Group Co., Ltd.

  

3,708

   

137,200

  

SK Hynix, Inc.

  

3,121

   

204,016

  

Total South Korea

    

1,928,571

  

Taiwan 19.8%

 

ASE Industrial Holding Co., Ltd.(a)

  

18,160

   

39,772

  

Catcher Technology Co., Ltd.

  

7,000

   

53,828

  

Chang Hwa Commercial Bank, Ltd.

  

89,796

   

53,754

  

China Steel Corp.

  

109,015

   

89,489

  

Chipbond Technology Corp.

  

30,858

   

71,086

  

Chunghwa Telecom Co., Ltd.

  

30,597

   

108,706

  

CTBC Financial Holding Co., Ltd.

  

85,911

   

57,004

  

Eva Airways Corp.

  

110,992

   

54,379

  

Far Eastern New Century Corp.

  

88,772

   

87,705

  

Far EasTone Telecommunications Co., Ltd.

  

35,034

   

84,458

  

Formosa Chemicals & Fibre Corp.

  

14,371

   

52,223

  

Formosa Petrochemical Corp.

  

14,144

   

53,005

  

Formosa Plastics Corp.

  

34,090

   

121,116

  

Formosa Taffeta Co., Ltd.

  

45,002

   

53,733

  

Hon Hai Precision Industry Co., Ltd.

  

60,953

   

145,359

  

Makalot Industrial Co., Ltd.

  

5,144

   

36,051

  

MediaTek, Inc.

  

7,814

   

71,623

  

Nan Ya Plastics Corp.

  

48,364

   

123,811

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

President Chain Store Corp.

  

10,839

   

106,735

  

Taiwan Business Bank

  

158,144

   

61,574

  

Taiwan Mobile Co., Ltd.

  

17,942

   

64,909

  

Taiwan Semiconductor Manufacturing Co., Ltd.

  

77,017

   

613,477

  

Uni-President Enterprises Corp.

  

22,846

   

55,446

  

Total Taiwan

    

2,259,243

  

Thailand 6.8%

 

Airports of Thailand PCL NVDR

  

60,400

   

129,422

  

BTS Group Holdings PCL NVDR

  

622,555

   

215,790

  
CP ALL PCL NVDR  

24,000

   

56,531

  

Home Product Center PCL NVDR

  

135,400

   

65,279

  

Ratchaburi Electricity Generating Holding PCL

  

32,300

   

59,541

  

Siam Cement PCL (The)

  

4,100

   

62,272

  

Siam Commercial Bank PCL (The)

  

19,600

   

81,525

  
Tesco Lotus Retail Growth Freehold & Leasehold
Property Fund
  

99,400

   

65,149

  

Thai Union Group PCL NVDR

  

64,696

   

39,346

  

Total Thailand

    

774,855

  

Turkey 0.7%

 

Emlak Konut Gayrimenkul Yatirim Ortakligi AS

  

304,417

   

82,441

  

United Kingdom 0.5%

 

Mondi PLC

  

2,705

   

59,625

  
Total Common Stocks
(Cost: $9,165,058)
    

10,666,310

  

Preferred Stocks 6.0%

Issuer

 

Shares

 

Value ($)

 

Brazil 6.0%

 

Banco Bradesco SA Preference Shares

  

8,969

   

98,962

  

Itau Unibanco Holding SA Preference Shares

  

25,123

   

222,264

  

Itausa — Investimentos Itau SA Preference Shares

  

38,614

   

118,867

  

Petroleo Brasileiro SA Preference Shares

  

34,471

   

248,543

  

Total Brazil

    

688,636

  
Total Preferred Stocks
(Cost: $397,769)
    

688,636

  

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

Columbia ETF Trust II | Annual Report 2019
42



PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Core ex-China ETF

March 31, 2019

Warrants 0.0%

Issuer

 

Shares

 

Value ($)

 

Thailand 0.0%

 

BTS Group Holdings PCL, expiring 12/29/19(a)

  

56,295

   

1,987

  
Total Warrants
(Cost $0)
    

1,987

  

Money Market Funds 0.3%

  

Shares

 

Value ($)

 
Goldman Sachs Financial Square Funds — Treasury
Instruments Fund, Institutional Shares, 2.263%(b)
  

31,980

   

31,980

  
Total Money Market Funds
(Cost $31,980)
    

31,980

  
Total Investments in Securities
(Cost: $9,594,807)
    

11,388,913

  

Other Assets & Liabilities, Net

    

42,178

  

Net Assets

    

11,431,091

  

Notes to Portfolio of Investments

(a)  Non-income producing investment.

(b)  The rate shown is the seven-day current annualized yield at March 31, 2019.

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.

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

Columbia ETF Trust II | Annual Report 2019
43



PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Core ex-China ETF

March 31, 2019

Fair Value Measurements (continued)

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 recommendations 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 2019
44



PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Core ex-China ETF

March 31, 2019

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments at March 31, 2019:

  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

  

364,481

   

   

   

364,481

  

Chile

  

155,433

   

   

   

155,433

  

India

  

1,488,381

   

   

   

1,488,381

  

Indonesia

  

433,117

   

   

   

433,117

  

Malaysia

  

452,999

   

   

   

452,999

  

Mexico

  

397,466

   

   

   

397,466

  

Philippines

  

262,291

   

   

   

262,291

  

Poland

  

259,215

   

   

   

259,215

  

Russia

  

606,219

   

   

   

606,219

  

South Africa

  

1,141,973

   

   

   

1,141,973

  

South Korea

  

1,928,571

   

   

   

1,928,571

  

Taiwan

  

2,259,243

   

   

   

2,259,243

  

Thailand

  

774,855

   

   

   

774,855

  

Turkey

  

82,441

   

   

   

82,441

  

United Kingdom

  

59,625

   

   

   

59,625

  

Total Common Stocks

  

10,666,310

   

   

   

10,666,310

  

Preferred Stocks

 

Brazil

  

688,636

   

   

   

688,636

  

Total Preferred Stocks

  

688,636

   

   

   

688,636

  

Warrants

 

Thailand

  

1,987

   

   

   

1,987

  

Total Warrants

  

1,987

   

   

   

1,987

  

Money Market Funds

  

31,980

   

   

   

31,980

  

Total Investments in Securities

  

11,388,913

   

   

   

11,388,913

  

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 2019
45



PORTFOLIO OF INVESTMENTS

Columbia EM Quality Dividend ETF

March 31, 2019

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 97.3%

Issuer

 

Shares

 

Value ($)

 

Brazil 6.0%

 

Cielo SA

  

44,032

   

107,373

  

Suzano Papel e Celulose SA

  

9,556

   

114,303

  

Vale SA

  

8,763

   

114,680

  

Total Brazil

    

336,356

  

Chile 2.0%

 

Enel Americas SA

  

643,583

   

114,421

  

China 9.8%

 

Bank of China, Ltd. Class H

  

241,274

   

109,419

  

China Construction Bank Corp. Class H

  

127,243

   

109,089

  

China Mobile, Ltd.

  

10,782

   

109,881

  

Industrial & Commercial Bank of China, Ltd. Class H

  

148,165

   

108,529

  

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

  

10,209

   

114,316

  

Total China

    

551,234

  

Colombia 2.0%

 

Ecopetrol SA

  

102,869

   

110,281

  

Hong Kong 10.1%

 

CK Asset Holdings Ltd.

  

12,948

   

115,131

  

CLP Holdings, Ltd.

  

9,688

   

112,307

  

Hang Seng Bank Ltd.

  

4,609

   

113,729

  

Hong Kong Exchanges & Clearing, Ltd.

  

3,237

   

112,821

  

Link REIT

  

10,029

   

117,283

  

Total Hong Kong

    

571,271

  

India 12.1%

 

Bharat Petroleum Corp., Ltd.

  

20,481

   

117,535

  

GAIL India, Ltd.

  

22,241

   

111,614

  

Indian Oil Corp., Ltd.

  

49,418

   

116,171

  

Infosys, Ltd.

  

10,444

   

112,144

  

ITC, Ltd.

  

26,027

   

111,679

  

Power Grid Corp. of India, Ltd.

  

39,099

   

111,695

  

Total India

    

680,838

  

Indonesia 7.9%

 

PT Astra International Tbk

  

219,876

   

113,103

  

PT Gudang Garam Tbk

  

18,558

   

108,429

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

PT Telekomunikasi Indonesia Persero Tbk

  

417,305

   

115,755

  

PT United Tractors Tbk

  

56,935

   

108,153

  

Total Indonesia

    

445,440

  

Kenya 1.9%

 

Safaricom PLC

  

402,379

   

110,030

  

Malaysia 11.8%

 

Malayan Banking Bhd

  

49,200

   

111,717

  

Maxis Bhd

  

82,258

   

107,998

  

Nestle Malaysia Bhd

  

3,100

   

111,471

  

Petronas Chemicals Group Bhd

  

50,590

   

113,510

  

Petronas Gas Bhd

  

25,600

   

110,489

  

Tenaga Nasional Bhd

  

35,531

   

110,183

  

Total Malaysia

    

665,368

  

Mexico 4.1%

 

Grupo Mexico SAB de CV Series B

  

42,448

   

116,769

  

Wal-Mart de Mexico SAB de CV

  

42,582

   

113,977

  

Total Mexico

    

230,746

  

Poland 1.9%

 

Polski Koncern Naftowy Orlen SA

  

4,288

   

109,206

  

Qatar 2.0%

 

Qatar National Bank QPSC

  

2,276

   

112,839

  

South Africa 3.9%

 

Standard Bank Group, Ltd.

  

8,905

   

114,378

  

Vodacom Group, Ltd.

  

14,025

   

108,368

  

Total South Africa

    

222,746

  

South Korea 5.7%

 

KB Financial Group, Inc.

  

2,992

   

110,312

  

Samsung Electronics Co., Ltd.

  

2,732

   

107,465

  

S-Oil Corp.

  

1,323

   

104,432

  

Total South Korea

    

322,209

  

Taiwan 12.1%

 

Formosa Chemicals & Fibre Corp.

  

31,797

   

115,549

  

Formosa Plastics Corp.

  

32,240

   

114,543

  

Nan Ya Plastics Corp.

  

45,011

   

115,227

  

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

Columbia ETF Trust II | Annual Report 2019
46



PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Quality Dividend ETF

March 31, 2019

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Taiwan Semiconductor Manufacturing Co., Ltd.

  

13,947

   

111,094

  

Uni-President Enterprises Corp.

  

46,899

   

113,822

  

Yageo Corp.

  

10,592

   

111,005

  

Total Taiwan

    

681,240

  

Thailand 2.0%

 

PTT Global Chemical PCL NVDR

  

52,608

   

111,482

  

United Arab Emirates 2.0%

 

Emaar Properties PJSC

  

87,951

   

112,061

  
Total Common Stocks
(Cost: $5,445,570)
    

5,487,768

  

Preferred Stocks 2.0%

Issuer

 

Shares

 

Value ($)

 

Chile 2.0%

 

Sociedad Quimica y Minera de Chile SA Class B

  

2,950

   

113,361

  
Total Preferred Stocks
(Cost $143,800)
    

113,361

  
Total Investments in Securities
(Cost: $5,589,370)
    

5,601,129

  

Other Assets & Liabilities, Net

    

38,852

  

Net Assets

    

5,639,981

  

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 2019
47



PORTFOLIO OF INVESTMENTS (continued)

Columbia EM Quality Dividend ETF

March 31, 2019

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 recommendations 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 at March 31, 2019:

  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

  

336,356

   

   

   

336,356

  

Chile

  

114,421

   

   

   

114,421

  

China

  

551,234

   

   

   

551,234

  

Colombia

  

110,281

   

   

   

110,281

  

Hong Kong

  

571,271

   

   

   

571,271

  

India

  

680,838

   

   

   

680,838

  

Indonesia

  

445,440

   

   

   

445,440

  

Kenya

  

110,030

   

   

   

110,030

  

Malaysia

  

665,368

   

   

   

665,368

  

Mexico

  

230,746

   

   

   

230,746

  

Poland

  

109,206

   

   

   

109,206

  

Qatar

  

112,839

   

   

   

112,839

  

South Africa

  

222,746

   

   

   

222,746

  

South Korea

  

322,209

   

   

   

322,209

  

Taiwan

  

681,240

   

   

   

681,240

  

Thailand

  

111,482

   

   

   

111,482

  

United Arab Emirates

  

112,061

   

   

   

112,061

  

Total Common Stocks

  

5,487,768

   

   

   

5,487,768

  

Preferred Stocks

 

Chile

  

113,361

   

   

   

113,361

  

Total Preferred Stocks

  

113,361

   

   

   

113,361

  

Total Investments in Securities

  

5,601,129

   

   

   

5,601,129

  

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 2019
48



PORTFOLIO OF INVESTMENTS

Columbia Emerging Markets Consumer ETF

March 31, 2019

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 96.1%

Issuer

 

Shares

 

Value ($)

 

Brazil 3.8%

 

Lojas Americanas SA

  

144,605

   

491,219

  

Lojas Renner SA

  

602,843

   

6,784,830

  

Raia Drogasil SA

  

218,538

   

3,666,915

  

Total Brazil

    

10,942,964

  

Chile 1.4%

 

Cencosud SA

  

788,888

   

1,365,794

  

S.A.C.I. Falabella

  

382,405

   

2,843,557

  

Total Chile

    

4,209,351

  

China 42.8%

 

58.com, Inc. ADR(a)

  

31,118

   

2,043,830

  

Alibaba Group Holding, Ltd. ADR(a)

  

78,007

   

14,232,377

  

ANTA Sports Products, Ltd.

  

307,397

   

2,091,096

  

Autohome, Inc. ADR(a)

  

19,131

   

2,011,051

  

Baidu, Inc. ADR(a)

  

84,390

   

13,911,692

  

BYD Co., Ltd. Class H

  

212,539

   

1,280,657

  

China Mengniu Dairy Co., Ltd.(a)

  

939,600

   

3,495,095

  

China Mobile, Ltd.

  

1,392,305

   

14,189,186

  

China Resources Beer Holdings Co., Ltd.

  

482,348

   

2,030,790

  

China Telecom Corp., Ltd. Class H

  

4,811,152

   

2,672,198

  

China Tower Corp. Ltd. Class H(a)(b)

  

15,367,892

   

3,563,024

  

China Unicom Hong Kong, Ltd.

  

2,015,528

   

2,554,730

  

Ctrip.com International, Ltd. ADR(a)

  

132,314

   

5,780,799

  

Dongfeng Motor Group Co., Ltd. Class H

  

911,320

   

912,487

  

Geely Automobile Holdings, Ltd.

  

1,930,738

   

3,689,332

  

Guangzhou Automobile Group Co., Ltd. Class H

  

976,555

   

1,153,213

  

Hengan International Group Co., Ltd.

  

251,592

   

2,205,050

  

JD.com, Inc. ADR(a)

  

283,838

   

8,557,716

  

NetEase, Inc. ADR

  

25,496

   

6,156,009

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

40,567

   

3,654,681

  

TAL Education Group ADR(a)

  

123,290

   

4,448,303

  

Tencent Holdings, Ltd.

  

311,538

   

14,326,871

  

Want Want China Holdings, Ltd.

  

2,201,179

   

1,828,252

  

Weibo Corp. ADR(a)

  

21,883

   

1,356,527

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Yum China Holdings, Inc.

  

131,396

   

5,900,994

  

Total China

    

124,045,960

  

Hong Kong 0.4%

 

Haier Electronics Group Co., Ltd.(a)

  

427,605

   

1,241,969

  

India 16.6%

 

Bharti Airtel, Ltd.

  

1,009,580

   

4,854,437

  

Hero MotoCorp, Ltd.

  

74,887

   

2,759,982

  

Hindustan Unilever, Ltd.

  

546,654

   

13,468,481

  

ITC, Ltd.

  

2,236,484

   

9,596,461

  

Mahindra & Mahindra, Ltd.

  

465,833

   

4,531,575

  

Maruti Suzuki India, Ltd.

  

92,477

   

8,907,361

  

Titan Co., Ltd.

  

237,807

   

3,919,739

  

Total India

    

48,038,036

  

Indonesia 3.2%

 

PT Astra International Tbk

  

6,721,115

   

3,457,315

  

PT Telekomunikasi Indonesia Persero Tbk

  

16,117,462

   

4,470,785

  

PT Unilever Indonesia Tbk

  

380,020

   

1,313,658

  

Total Indonesia

    

9,241,758

  

Mexico 3.6%

 

Coca-Cola Femsa SAB de CV Series L

  

142,753

   

944,278

  
Fomento Economico Mexicano SAB de CV
Series UBD
  

505,177

   

4,665,677

  

Grupo Televisa SAB Series CPO

  

594,656

   

1,317,915

  

Wal-Mart de Mexico SAB de CV

  

1,328,902

   

3,556,984

  

Total Mexico

    

10,484,854

  

Russia 4.5%

 

Magnit PJSC GDR

  

269,183

   

3,795,480

  

X5 Retail Group NV GDR

  

93,215

   

2,322,918

  

Yandex NV Class A(a)

  

199,336

   

6,845,198

  

Total Russia

    

12,963,596

  

South Africa 4.5%

 

Shoprite Holdings, Ltd.

  

578,756

   

6,365,363

  

Vodacom Group, Ltd.

  

874,119

   

6,754,136

  

Total South Africa

    

13,119,499

  

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

Columbia ETF Trust II | Annual Report 2019
49



PORTFOLIO OF INVESTMENTS (continued)

Columbia Emerging Markets Consumer ETF

March 31, 2019

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Taiwan 10.6%

 

Chunghwa Telecom Co., Ltd.

  

3,182,527

   

11,306,978

  

President Chain Store Corp.

  

470,032

   

4,628,566

  

Taiwan Mobile Co., Ltd.

  

1,346,137

   

4,869,949

  

Uni-President Enterprises Corp.

  

4,138,842

   

10,044,788

  

Total Taiwan

    

30,850,281

  

Thailand 3.8%

 

Advanced Info Service PCL

  

522,900

   

3,031,782

  
CP ALL PCL  

2,149,805

   

5,063,744

  

Thai Beverage PCL

  

4,783,044

   

2,983,885

  

Total Thailand

    

11,079,411

  

United Arab Emirates 0.9%

 

Emirates Telecommunications Group Co. PJSC

  

581,897

   

2,645,634

  
Total Common Stocks
(Cost: $284,081,555)
    

278,863,313

  

Preferred Stocks 3.5%

Issuer

 

Shares

 

Value ($)

 

Brazil 3.5%

 

Cia Brasileira de Distribuicao Preference Shares

  

131,542

   

3,091,408

  

Lojas Americanas SA Preference Shares

  

621,613

   

2,678,636

  

Telefonica Brasil SA Preference Shares

  

346,753

   

4,232,281

  

Total Brazil

    

10,002,325

  
Total Preferred Stocks
(Cost: $10,820,523)
    

10,002,325

  

Money Market Funds 0.4%

  

Shares

 

Value ($)

 
Goldman Sachs Financial Square Funds — Treasury
Instruments Fund, Institutional Shares, 2.263%(c)
  

1,160,736

   

1,160,736

  
Total Money Market Funds
(Cost $1,160,736)
    

1,160,736

  
Total Investments in Securities
(Cost: $296,062,814)
    

290,026,374

  

Other Assets & Liabilities, Net

    

92,287

  

Net Assets

    

290,118,661

  

Notes to Portfolio of Investments

(a)  Non-income producing investment.

(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, 2019, the total value of these securities amounted to $3,563,024, which represents 1.23% of net assets.

(c)  The rate shown is the seven-day current annualized yield at March 31, 2019.

Abbreviation Legend

ADR  American Depositary Receipts

GDR  Global Depositary Receipts

PJSC  Private Joint Stock Company

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

Columbia ETF Trust II | Annual Report 2019
50



PORTFOLIO OF INVESTMENTS (continued)

Columbia Emerging Markets Consumer ETF

March 31, 2019

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 recommendations 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 2019
51



PORTFOLIO OF INVESTMENTS (continued)

Columbia Emerging Markets Consumer ETF

March 31, 2019

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments at March 31, 2019:

  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

  

10,942,964

   

   

   

10,942,964

  

Chile

  

4,209,351

   

   

   

4,209,351

  

China

  

124,045,960

   

   

   

124,045,960

  

Hong Kong

  

1,241,969

   

   

   

1,241,969

  

India

  

48,038,036

   

   

   

48,038,036

  

Indonesia

  

9,241,758

   

   

   

9,241,758

  

Mexico

  

10,484,854

   

   

   

10,484,854

  

Russia

  

12,963,596

   

   

   

12,963,596

  

South Africa

  

13,119,499

   

   

   

13,119,499

  

Taiwan

  

30,850,281

   

   

   

30,850,281

  

Thailand

  

11,079,411

   

   

   

11,079,411

  

United Arab Emirates

  

2,645,634

   

   

   

2,645,634

  

Total Common Stocks

  

278,863,313

   

   

   

278,863,313

  

Preferred Stocks

 

Brazil

  

10,002,325

   

   

   

10,002,325

  

Total Preferred Stocks

  

10,002,325

   

   

   

10,002,325

  

Money Market Funds

  

1,160,736

   

   

   

1,160,736

  

Total Investments in Securities

  

290,026,374

   

   

   

290,026,374

  

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 2019
52



PORTFOLIO OF INVESTMENTS (Consolidated)

Columbia India Consumer ETF

March 31, 2019

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 100.4%

Issuer

 

Shares

 

Value ($)

 

Consumer Discretionary 54.5%

 

Aditya Birla Fashion and Retail, Ltd.(a)

  

451,389

   

1,435,779

  

Bajaj Auto, Ltd.

  

150,446

   

6,322,099

  

Bharat Forge, Ltd.

  

391,208

   

2,893,612

  

Bosch, Ltd.

  

14,923

   

3,917,322

  

Eicher Motors, Ltd.

  

20,338

   

6,032,467

  

Exide Industries, Ltd.

  

701,838

   

2,215,691

  

Future Retail, Ltd.(a)

  

273,334

   

1,790,727

  

Hero MotoCorp, Ltd.

  

161,799

   

5,963,148

  

Jubilant Foodworks, Ltd.

  

118,355

   

2,467,046

  

Mahindra & Mahindra, Ltd.

  

663,787

   

6,457,251

  

Maruti Suzuki India, Ltd.

  

63,776

   

6,142,888

  

Motherson Sumi Systems, Ltd.

  

1,957,211

   

4,229,441

  

MRF, Ltd.

  

4,136

   

3,462,069

  

Page Industries, Ltd.

  

6,964

   

2,510,382

  

Rajesh Exports, Ltd.

  

225,581

   

2,168,541

  

Tata Motors, Ltd.(a)

  

2,448,136

   

6,157,888

  

Titan Co., Ltd.

  

422,060

   

6,956,755

  

Total

    

71,123,106

  

Consumer Staples 45.9%

 

Avenue Supermarts, Ltd.(a)(b)

  

166,915

   

3,544,549

  

Britannia Industries Ltd.

  

145,143

   

6,464,651

  

Colgate-Palmolive India, Ltd.

  

221,168

   

4,016,781

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Dabur India, Ltd.

  

925,200

   

5,459,715

  

GlaxoSmithKline Consumer Healthcare, Ltd.

  

19,221

   

2,010,693

  

Godrej Consumer Products, Ltd.

  

574,542

   

5,689,438

  

Hindustan Unilever, Ltd.

  

261,437

   

6,441,294

  

ITC, Ltd.

  

1,522,698

   

6,533,699

  

Marico, Ltd.

  

861,669

   

4,311,766

  

Nestle India, Ltd.

  

44,005

   

6,962,636

  

Procter & Gamble Hygiene & Health Care, Ltd.

  

15,840

   

2,477,134

  

United Breweries, Ltd.

  

107,579

   

2,166,022

  

United Spirits, Ltd.(a)

  

467,106

   

3,734,825

  

Total

    

59,813,203

  
Total Common Stocks
(Cost: $110,267,028)
    

130,936,309

  

Money Market Funds 0.1%

  

Shares

 

Value ($)

 
Goldman Sachs Financial Square Funds — Treasury
Instruments Fund, Institutional Shares, 2.263%(c)
  

159,999

   

159,999

  
Total Money Market Funds
(Cost $159,999)
    

159,999

  
Total Investments in Securities
(Cost: $110,427,027)
    

131,096,308

  

Other Assets & Liabilities, Net

    

(660,064

)

 

Net Assets

    

130,436,244

  

Notes to Consolidated Portfolio of Investments

(a)  Non-income producing investment.

(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, 2019, the total value of these securities amounted to $3,544,549, which represents 2.72% of net assets.

(c)  The rate shown is the seven-day current annualized yield at March 31, 2019.

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 2019
53



PORTFOLIO OF INVESTMENTS (Consolidated) (continued)

Columbia India Consumer ETF

March 31, 2019

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 recommendations 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 at March 31, 2019:

  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

  

71,123,106

   

   

   

71,123,106

  

Consumer Staples

  

59,813,203

   

   

   

59,813,203

  

Total Common Stocks

  

130,936,309

   

   

   

130,936,309

  

Money Market Funds

  

159,999

   

   

   

159,999

  

Total Investments in Securities

  

131,096,308

   

   

   

131,096,308

  

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 2019
54



PORTFOLIO OF INVESTMENTS

Columbia India Infrastructure ETF

March 31, 2019

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 98.1%

Issuer

 

Shares

 

Value ($)

 

Communication Services 11.0%

 

Bharti Airtel, Ltd.

  

299,959

   

1,442,315

  

Bharti Infratel, Ltd.

  

262,286

   

1,186,581

  

Tata Communications, Ltd.

  

24,952

   

220,705

  

Vodafone Idea, Ltd.(a)

  

2,323,796

   

612,187

  

Total

    

3,461,788

  

Consumer Discretionary 3.9%

 

Eicher Motors, Ltd.

  

4,091

   

1,213,434

  

Energy 3.2%

 

Petronet LNG, Ltd.

  

276,546

   

1,004,188

  

Industrials 26.7%

 

Adani Ports and Special Economic Zone, Ltd.

  

294,156

   

1,605,703

  

Ashok Leyland, Ltd.

  

708,061

   

933,179

  

Bharat Heavy Electricals, Ltd.

  

511,951

   

553,890

  

Container Corp. Of India, Ltd.

  

101,567

   

770,164

  

Cummins India, Ltd.

  

51,272

   

552,132

  

Havells India, Ltd.

  

82,529

   

920,298

  

Larsen & Toubro, Ltd.

  

86,913

   

1,738,009

  

Siemens, Ltd.

  

32,636

   

531,787

  

Voltas, Ltd.

  

84,733

   

769,905

  

Total

    

8,375,067

  

Materials 32.0%

 

Grasim Industries Ltd.

  

114,431

   

1,417,194

  

Hindalco Industries, Ltd.

  

483,498

   

1,434,267

  

JSW Steel, Ltd.

  

288,942

   

1,222,295

  

NMDC, Ltd.

  

320,928

   

483,882

  

Shree Cement, Ltd.

  

3,145

   

847,488

  

Steel Authority of India, Ltd.(a)

  

382,169

   

296,522

  

Tata Steel, Ltd.

  

189,376

   

1,424,250

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

UltraTech Cement, Ltd.

  

27,447

   

1,584,160

  

Vedanta, Ltd.

  

507,353

   

1,350,866

  

Total

    

10,060,924

  

Real Estate 1.6%

 

DLF, Ltd.

  

168,852

   

493,455

  

Utilities 19.7%

 

GAIL India, Ltd.

  

310,691

   

1,559,173

  

Indraprastha Gas, Ltd.

  

132,119

   

582,544

  

NTPC, Ltd.

  

830,149

   

1,614,162

  

Power Grid Corp. of India, Ltd.

  

598,846

   

1,710,742

  

Tata Power Co., Ltd. (The)

  

681,005

   

725,488

  

Total

    

6,192,109

  
Total Common Stocks
(Cost: $29,354,526)
    

30,800,965

  

Rights 1.4%

Issuer

 

Shares

 

Value ($)

 

Communication Services 1.4%

 

Vodafone Idea, Ltd., expiring 4/29/19(a)

  

5,320,269

   

441,596

  
Total Rights
(Cost: $574,112)
    

441,596

  

Money Market Funds 0.5%

  

Shares

 

Value ($)

 
Goldman Sachs Financial Square Funds — Treasury
Instruments Fund, Institutional Shares, 2.263%(b)
  

152,972

   

152,972

  
Total Money Market Funds
(Cost $152,972)
    

152,972

  
Total Investments in Securities
(Cost: $30,081,610)
    

31,395,533

  

Other Assets & Liabilities, Net

    

6,447

  

Net Assets

    

31,401,980

  

Notes to Portfolio of Investments

(a)  Non-income producing investment.

(b)  The rate shown is the seven-day current annualized yield at March 31, 2019.

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

Columbia ETF Trust II | Annual Report 2019
55



PORTFOLIO OF INVESTMENTS (continued)

Columbia India Infrastructure ETF

March 31, 2019

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 recommendations 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 2019
56



PORTFOLIO OF INVESTMENTS (continued)

Columbia India Infrastructure ETF

March 31, 2019

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments at March 31, 2019:

  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

 

Communication Services

  

3,461,788

   

   

   

3,461,788

  

Consumer Discretionary

  

1,213,434

   

   

   

1,213,434

  

Energy

  

1,004,188

   

   

   

1,004,188

  

Industrials

  

8,375,067

   

   

   

8,375,067

  

Materials

  

10,060,924

   

   

   

10,060,924

  

Real Estate

  

493,455

   

   

   

493,455

  

Utilities

  

6,192,109

   

   

   

6,192,109

  

Total Common Stocks

  

30,800,965

   

   

   

30,800,965

  

Rights

 

Communication Services

  

   

441,596

   

   

441,596

  

Total Rights

  

   

441,596

   

   

441,596

  

Money Market Funds

  

152,972

   

   

   

152,972

  

Total Investments in Securities

  

30,953,937

   

441,596

   

   

31,395,533

  

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

The Fund's assets assigned to the Level 2 input category are generally valued using the market approach, in which a security's value is determined through reference to prices and information from market transactions for similar or identical assets.

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 2019
57



PORTFOLIO OF INVESTMENTS

Columbia India Small Cap ETF

March 31, 2019

(Percentages represent value of investments compared to net assets)

Investments in Securities

Common Stocks 99.5%

Issuer

 

Shares

 

Value ($)

 

Communication Services 5.8%

 

Dish TV India, Ltd.

  

316,500

   

177,724

  

Just Dial, Ltd.(a)

  

19,381

   

168,827

  

PVR, Ltd.

  

13,884

   

330,029

  

TV18 Broadcast, Ltd.(a)

  

314,654

   

161,245

  

Total

    

837,825

  

Consumer Discretionary 10.0%

 

Arvind, Ltd.

  

79,089

   

103,835

  

Bajaj Electricals Ltd.

  

18,003

   

145,037

  

Bombay Dyeing & Manufacturing Co., Ltd.

  

54,172

   

105,529

  

Ceat, Ltd.

  

8,461

   

136,780

  

KPIT Engineering Ltd.(a)(b)(c)

  

244,608

   

288,304

  

PC Jeweller, Ltd.

  

82,894

   

98,360

  

Raymond, Ltd.

  

17,862

   

209,239

  

VIP Industries, Ltd.

  

51,784

   

361,311

  

Total

    

1,448,395

  

Consumer Staples 6.5%

 

Avanti Feeds Ltd.

  

20,914

   

123,416

  

Balrampur Chini Mills, Ltd.

  

68,999

   

136,554

  

Bombay Burmah Trading Co.

  

8,655

   

162,330

  

Godfrey Phillips India, Ltd.

  

7,916

   

132,449

  

Kaveri Seed Co., Ltd.

  

14,897

   

98,887

  

Radico Khaitan, Ltd.

  

36,226

   

206,610

  

Venky's India, Ltd.

  

2,497

   

81,726

  

Total

    

941,972

  

Energy 0.8%

 

Chennai Petroleum Corp., Ltd.

  

26,892

   

106,093

  

Financials 23.3%

 

Allahabad Bank(a)

  

113,734

   

89,641

  

Can Fin Homes Ltd.

  

30,414

   

153,157

  

DCB Bank, Ltd.

  

127,365

   

376,350

  

Dewan Housing Finance Corp., Ltd.

  

158,228

   

343,179

  

Equitas Holdings Ltd.(a)

  

142,411

   

281,430

  

IDFC Ltd.

  

615,544

   

413,621

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Indian Energy Exchange Ltd.(d)

  

65,076

   

154,999

  

Karnataka Bank, Ltd. (The)

  

149,712

   

288,834

  

Oriental Bank of Commerce(a)

  

48,596

   

81,549

  

Reliance Capital, Ltd.

  

72,373

   

213,645

  

Repco Home Finance, Ltd.

  

21,110

   

141,454

  

South Indian Bank Ltd. (The)

  

861,049

   

205,086

  

Syndicate Bank(a)

  

212,050

   

132,235

  

Ujjivan Financial Services Ltd.

  

40,568

   

203,674

  

Union Bank of India(a)

  

211,454

   

291,808

  

Total

    

3,370,662

  

Health Care 5.8%

 

Ajanta Pharma Ltd.

  

13,108

   

195,877

  

Granules India, Ltd.

  

74,332

   

122,805

  

Strides Pharma Science Ltd.

  

32,550

   

221,965

  

Sun Pharma Advanced Research Co., Ltd.(a)

  

33,826

   

93,311

  

Suven Life Sciences, Ltd.

  

25,470

   

95,924

  

Wockhardt, Ltd.(a)

  

15,943

   

101,952

  

Total

    

831,834

  

Industrials 20.7%

 

BEML, Ltd.

  

10,610

   

155,080

  

CG Power and Industrial Solutions, Ltd.(a)

  

227,837

   

140,435

  

Dilip Buildcon Ltd.(d)

  

17,066

   

158,035

  

Engineers India, Ltd.

  

168,438

   

285,208

  

Escorts, Ltd.

  

32,818

   

377,117

  

Graphite India Ltd.

  

35,103

   

226,453

  

Hindustan Construction Co., Ltd.(a)

  

402,693

   

87,194

  

IRB Infrastructure Developers, Ltd.

  

82,954

   

173,452

  

Jain Irrigation Systems, Ltd.

  

169,950

   

144,497

  

Kajaria Ceramics Ltd.

  

45,085

   

383,881

  

NCC, Ltd.

  

227,951

   

371,336

  

Praj Industries, Ltd.

  

53,228

   

119,172

  

Suzlon Energy, Ltd.(a)

  

1,698,202

   

150,761

  

V-Guard Industries, Ltd.

  

66,890

   

214,695

  

Total

    

2,987,316

  

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

Columbia ETF Trust II | Annual Report 2019
58



PORTFOLIO OF INVESTMENTS (continued)

Columbia India Small Cap ETF

March 31, 2019

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Information Technology 11.3%

 

Birlasoft Ltd.

  

127,308

   

181,291

  

Firstsource Solutions, Ltd.

  

147,059

   

99,667

  

Intellect Design Arena, Ltd.(a)

  

37,274

   

109,414

  

NIIT Technologies, Ltd.

  

19,894

   

380,750

  

Persistent Systems Ltd.

  

28,402

   

258,109

  

Tata Elxsi, Ltd.

  

19,020

   

264,427

  

Vakrangee Ltd.

  

333,767

   

242,345

  

Zensar Technologies Ltd.

  

26,758

   

88,878

  

Total

    

1,624,881

  

Materials 8.3%

 

Century Textiles & Industries, Ltd.

  

27,669

   

372,688

  

Gujarat Narmada Valley Fertilizers & Chemicals, Ltd.

  

49,794

   

219,913

  

Gujarat State Fertilizers & Chemicals Ltd.

  

119,930

   

180,479

  

India Cements, Ltd. (The)

  

104,581

   

163,495

  

JK Paper, Ltd.

  

45,675

   

93,526

  

Phillips Carbon Black, Ltd.

  

42,474

   

108,185

  

Prakash Industries, Ltd.(a)

  

48,469

   

62,655

  

Total

    

1,200,941

  

Real Estate 1.6%

 

Housing Development & Infrastructure, Ltd.(a)

  

153,124

   

57,138

  

Indiabulls Real Estate, Ltd.(a)

  

132,297

   

176,078

  

Total

    

233,216

  

Common Stocks (continued)

Issuer

 

Shares

 

Value ($)

 

Utilities 5.4%

 

Mahanagar Gas, Ltd.

  

26,064

   

396,951

  

PTC India, Ltd.

  

132,212

   

140,180

  

Reliance Infrastructure, Ltd.

  

79,633

   

157,484

  

Reliance Power, Ltd.(a)

  

537,938

   

88,136

  

Total

    

782,751

  
Total Common Stocks
(Cost: $14,156,425)
    

14,365,886

  

Money Market Funds 0.6%

  

Shares

 

Value ($)

 
Goldman Sachs Financial Square Funds — Treasury
Instruments Fund, Institutional Shares, 2.263%(e)
  

92,658

   

92,658

  
Total Money Market Funds
(Cost $92,658)
    

92,658

  
Total Investments in Securities
(Cost: $14,249,083)
    

14,458,544

  

Other Assets & Liabilities, Net

    

(8,442

)

 

Net Assets

    

14,450,102

  

Notes to Portfolio of Investments

(a)  Non-income producing investment.

(b)  Represents fair value as determined in good faith under procedures approved by the Board of Trustees. At March 31, 2019, the value of these securities amounted to $288,304, which represents less than 2.00% of net assets.

(c)  Valuation based on significant unobservable inputs.

(d)  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, 2019, the total value of these securities amounted to $313,034, which represents 2.17% of net assets.

(e)  The rate shown is the seven-day current annualized yield at March 31, 2019.

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

Columbia ETF Trust II | Annual Report 2019
59



PORTFOLIO OF INVESTMENTS (continued)

Columbia India Small Cap ETF

March 31, 2019

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 recommendations 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 2019
60



PORTFOLIO OF INVESTMENTS (continued)

Columbia India Small Cap ETF

March 31, 2019

Fair Value Measurements (continued)

The following table is a summary of the inputs used to value the Fund's investments at March 31, 2019:

  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

 

Communication Services

  

837,825

   

   

   

837,825

  

Consumer Discretionary

  

1,160,091

   

   

288,304

   

1,448,395

  

Consumer Staples

  

941,972

   

   

   

941,972

  

Energy

  

106,093

   

   

   

106,093

  

Financials

  

3,370,662

   

   

   

3,370,662

  

Health Care

  

831,834

   

   

   

831,834

  

Industrials

  

2,987,316

   

   

   

2,987,316

  

Information Technology

  

1,624,881

   

   

   

1,624,881

  

Materials

  

1,200,941

   

   

   

1,200,941

  

Real Estate

  

233,216

   

   

   

233,216

  

Utilities

  

782,751

   

   

   

782,751

  

Total Common Stocks

  

14,077,582

   

   

288,304

   

14,365,886

  

Money Market Funds

  

92,658

   

   

   

92,658

  

Total Investments in Securities

  

14,170,240

   

   

288,304

   

14,458,544

  

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 following table is a reconciliation of Level 3 assets for which significant observable and unobservable inputs were used to determine fair value:

  Balance as of
03/31/2018
($)
 Increase
(decrease)
in accrued
discounts/
premiums ($)
 Realized
gain
(loss) ($)
 Change in
unrealized
appreciation
(depreciation)(a)
($)
 

Purchases ($)

 

Sales ($)

 Transfers
into
Level 3 ($)
 Transfers
out of
Level 3 ($)
 Balance as of
03/31/2019
($)
 

Common Stocks

  

   

   

   

7,677

   

280,627

   

   

   

   

288,304

  

Total

  

   

   

   

7,677

   

280,627

   

   

   

   

288,304

  

(a)  Change in unrealized appreciation (depreciation) relating to securities held at March 31, 2019 was $7,677 which is comprised of Common Stocks.

The Fund's assets assigned to the Level 3 category are valued utilizing the valuation technique deemed the most appropriate in the circumstances. Certain common stocks classified as Level 3 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, estimated cash flows of the securities, observed yields on securities deemed comparable, the subscription prices of the security, closing prices of similar securities from the issuer and single market quotation from broker dealers. Significant increases (decreases) to any of these inputs would result in a significantly higher (lower) fair value measurement.

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

Columbia ETF Trust II | Annual Report 2019
61



STATEMENT OF ASSETS AND LIABILITIES

March 31, 2019

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

Assets

 

Investments in securities, at value

 

Unaffiliated issuers (cost $24,471,482, $9,594,807 and $5,589,370, respectively)

 

$

24,932,616

  

$

11,388,913

  

$

5,601,129

  

Cash

  

   

   

13,929

  

Foreign currency (cost $1,484, $847 and $1,132, respectively)

  

1,484

   

846

   

1,132

  

Receivable for:

 

Investments sold

  

   

   

2,766

  

Dividends

  

101,376

   

44,650

   

14,620

  

Foreign tax reclaims

  

25,156

   

303

   

9,406

  

Total assets

  

25,060,632

   

11,434,712

   

5,642,982

  

Liabilities

 

Due to custodian

  

   

   

  

Payable for:

 

Capital shares purchased

  

   

   

  

Investments management fees

  

13,218

   

3,377

   

3,001

  

Foreign capital gains taxes deferred

  

   

   

  

Accrued expenses and other liabilities

  

1,772

   

244

   

  

Total liabilities

  

14,990

   

3,621

   

3,001

  

Net assets applicable to outstanding capital stock

 

$

25,045,642

  

$

11,431,091

  

$

5,639,981

  

Represented by:

 

Paid-in capital

 

$

87,674,902

  

$

10,122,033

  

$

33,047,070

  

Total distributable earnings (loss) (Note 2)

  

(62,629,260

)

  

1,309,058

   

(27,407,089

)

 

Total — representing net assets applicable to outstanding capital stock

 

$

25,045,642

  

$

11,431,091

  

$

5,639,981

  

Shares outstanding

  

1,500,000

   

450,000

   

400,000

  

Net asset value per share

 

$

16.70

  

$

25.40

  

$

14.10

  

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

Columbia ETF Trust II | Annual Report 2019
62



STATEMENT OF ASSETS AND LIABILITIES (continued)

March 31, 2019

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

Assets

 

Investments in securities, at value

 

Unaffiliated issuers (cost $296,062,814, $110,427,027 and $30,081,610, respectively)

 

$

290,026,374

  

$

131,096,308

  

$

31,395,533

  

Cash

  

   

961

   

  

Foreign currency (cost $—, $12 and $—, respectively)

  

   

13

   

  

Receivable for:

 

Investments sold

  

1,212,271

   

   

  

Dividends

  

278,385

   

326

   

25,775

  

Foreign tax reclaims

  

14,378

   

   

  

Total assets

  

291,531,408

   

131,097,608

   

31,421,308

  

Liabilities

 

Due to custodian

  

749

   

   

  

Payable for:

 

Capital shares purchased

  

1,264,844

   

   

  

Investments management fees

  

147,154

   

83,808

   

19,328

  

Foreign capital gains taxes deferred

  

   

577,251

   

  

Accrued expenses and other liabilities

  

   

305

   

  

Total liabilities

  

1,412,747

   

661,364

   

19,328

  

Net assets applicable to outstanding capital stock

 

$

290,118,661

  

$

130,436,244

  

$

31,401,980

  

Represented by:

 

Paid-in capital

 

$

498,944,218

  

$

115,397,035

  

$

88,065,221

  

Total distributable earnings (loss) (Note 2)

  

(208,825,557

)

  

15,039,209

   

(56,663,241

)

 

Total — representing net assets applicable to outstanding capital stock

 

$

290,118,661

  

$

130,436,244

  

$

31,401,980

  

Shares outstanding

  

12,800,000

   

3,100,000

   

2,600,000

  

Net asset value per share

 

$

22.67

  

$

42.08

  

$

12.08

  

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

Columbia ETF Trust II | Annual Report 2019
63



STATEMENT OF ASSETS AND LIABILITIES (continued)

March 31, 2019

  Columbia India
Small Cap ETF
 

Assets

 

Investments in securities, at value

 

Unaffiliated issuers (cost $14,249,083)

 

$

14,458,544

  

Cash

  

  

Foreign currency (cost $—)

  

  

Receivable for:

 

Investments sold

  

  

Dividends

  

713

  

Foreign tax reclaims

  

  

Total assets

  

14,459,257

  

Liabilities

 

Due to custodian

  

  

Payable for:

 

Capital shares purchased

  

  

Investments management fees

  

9,155

  

Foreign capital gains taxes deferred

  

  

Accrued expenses and other liabilities

  

  

Total liabilities

  

9,155

  

Net assets applicable to outstanding capital stock

 

$

14,450,102

  

Represented by:

 

Paid-in capital

 

$

29,329,113

  

Total distributable earnings (loss) (Note 2)

  

(14,879,011

)

 

Total — representing net assets applicable to outstanding capital stock

 

$

14,450,102

  

Shares outstanding

  

950,000

  

Net asset value per share

 

$

15.21

  

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

Columbia ETF Trust II | Annual Report 2019
64



STATEMENT OF OPERATIONS

For the Year Ended March 31, 2019

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

Investment Income:

 

Dividends — unaffiliated issuers

 

$

1,907,787

  

$

309,929

  

$

348,365

  

Foreign taxes withheld

  

(164,637

)

  

(40,380

)

  

(32,765

)

 

Total income

  

1,743,150

   

269,549

   

315,600

  

Expenses:

 

Investment management fees

  

365,515

   

43,507

   

47,889

  

Mauritius taxes paid

  

   

   

  

Line of credit interest

  

   

   

  

Overdraft expense

  

7,358

   

21

   

535

  

Total expenses

  

372,873

   

43,528

   

48,424

  

Fees waived by the Investment Manager and its affiliates

  

(61,339

)

  

(10,831

)

  

  

Total net expenses

  

311,534

   

32,697

   

48,424

  

Net investment income

  

1,431,616

   

236,852

   

267,176

  

Realized and unrealized gain (loss) — net

 

Net realized gain (loss) on:

 

Investments — unaffiliated issuers

  

(2,322,850

)

  

(409,532

)

  

(466,883

)

 

In-kind transactions

  

(1,624,353

)

  

   

69,832

  

Foreign currency translations

  

(78,245

)

  

(6,172

)

  

(28,538

)

 

Net realized loss

  

(4,025,448

)

  

(415,704

)

  

(425,589

)

 

Change in net unrealized appreciation (depreciation) on:

 

Investments — unaffiliated issuers

  

(5,329,271

)

  

(422,049

)

  

(855,380

)

 

Foreign capital gains tax

  

   

   

  

Foreign currency translations

  

(2,531

)

  

(380

)

  

(1,325

)

 

Net change in unrealized depreciation

  

(5,331,802

)

  

(422,429

)

  

(856,705

)

 

Net realized and unrealized loss

  

(9,357,250

)

  

(838,133

)

  

(1,282,294

)

 

Net decrease in net assets resulting from operations

 

$

(7,925,634

)

 

$

(601,281

)

 

$

(1,015,118

)

 

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

Columbia ETF Trust II | Annual Report 2019
65



STATEMENT OF OPERATIONS (continued)

For the Year Ended March 31, 2019

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

Investment Income:

 

Dividends — unaffiliated issuers

 

$

8,650,029

  

$

1,430,962

  

$

737,452

  

Interest

  

24,430

   

   

  

Foreign taxes withheld

  

(617,794

)

  

   

  

Total income

  

8,056,665

   

1,430,962

   

737,452

  

Expenses:

 

Investment management fees

  

2,836,748

   

1,036,908

   

264,161

  

Mauritius taxes paid

  

52,942

   

31,796

   

43,722

  

Line of credit interest

  

   

   

2,167

  

Overdraft expense

  

35,845

   

   

14,488

  

Total expenses

  

2,925,535

   

1,068,704

   

324,538

  

Net investment income

  

5,131,130

   

362,258

   

412,914

  

Realized and unrealized gain (loss) — net

 

Net realized gain (loss) on:

 

Investments — unaffiliated issuers

  

(26,138,022

)

  

2,790,427

   

3,233,147

  

In-kind transactions

  

6,704,594

   

   

  

Foreign currency translations

  

(721,209

)

  

(167,903

)

  

(65,981

)

 

Net realized gain (loss)

  

(20,154,637

)

  

2,622,524

   

3,167,166

  

Change in net unrealized appreciation (depreciation) on:

 

Investments — unaffiliated issuers

  

(89,089,306

)

  

(13,900,179

)

  

(8,950,143

)

 

Foreign capital gains tax

  

   

(577,251

)

  

  

Foreign currency translations

  

(6,529

)

  

8

   

(17

)

 

Net change in unrealized depreciation

  

(89,095,835

)

  

(14,477,422

)

  

(8,950,160

)

 

Net realized and unrealized loss

  

(109,250,472

)

  

(11,854,898

)

  

(5,782,994

)

 

Net decrease in net assets resulting from operations

 

$

(104,119,342

)

 

$

(11,492,640

)

 

$

(5,370,080

)

 

(a)  EG Shares Consumer Mauritius, the Fund's Subsidiary, was liquidated on November 30, 2018.

(b)  EG Shares India Infrastructure Mauritius, the Fund's Subsidiary, was liquidated on November 16, 2018.

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

Columbia ETF Trust II | Annual Report 2019
66



STATEMENT OF OPERATIONS (continued)

For the Year Ended March 31, 2019

  Columbia India
Small Cap ETF(a)
(Consolidated)
 

Investment Income:

 

Dividends — unaffiliated issuers

 

$

479,849

  

Foreign taxes withheld

  

  

Total income

  

479,849

  

Expenses:

 

Investment management fees

  

145,780

  

Mauritius taxes paid

  

1,010

  

Line of credit interest

  

  

Overdraft expense

  

3,020

  

Total expenses

  

149,810

  

Net investment income

  

330,039

  

Realized and unrealized gain (loss) — net

 

Net realized gain (loss) on:

 

Investments — unaffiliated issuers

  

(8,431,975

)

 

In-kind transactions

  

  

Foreign currency translations

  

(9,084

)

 

Net realized loss

  

(8,441,059

)

 

Change in net unrealized appreciation (depreciation) on:

 

Investments — unaffiliated issuers

  

2,814,309

  

Foreign capital gains tax

  

  

Foreign currency translations

  

1,422

  

Net change in unrealized appreciation

  

2,815,731

  

Net realized and unrealized loss

  

(5,625,328

)

 

Net decrease in net assets resulting from operations

 

$

(5,295,289

)

 

(a)  EG Shares India Small Cap Mauritius, the Fund's Subsidiary, was liquidated on August 24, 2018.

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

Columbia ETF Trust II | Annual Report 2019
67



STATEMENT OF CHANGES IN NET ASSETS

  

Columbia Beyond BRICs ETF

 

Columbia EM Core ex-China ETF

 
  Year Ended
March 31, 2019
 Year Ended
March 31, 2018
 Year Ended
March 31, 2019
 Year Ended
March 31, 2018
 

Operations

 

Net investment income

 

$

1,431,616

  

$

1,947,687

  

$

236,852

  

$

230,653

  

Net realized gain (loss)

  

(4,025,448

)

  

(1,284,006

)

  

(415,704

)

  

1,044,388

  

Net change in unrealized appreciation (depreciation)

  

(5,331,802

)

  

14,501,873

   

(422,429

)

  

663,520

  

Net increase (decrease) in net assets resulting from operations

  

(7,925,634

)

  

15,165,554

   

(601,281

)

  

1,938,561

  

Distributions to shareholders

 

Net investment income and net realized gains

  

(1,602,594

)

  

   

(269,920

)

  

  

Net investment income

  

   

(1,818,029

)

  

   

(212,870

)

 

Net realized gain

  

   

   

   

(617,043

)

 

Total distributions to shareholders (Note 2)

  

(1,602,594

)

  

(1,818,029

)

  

(269,920

)

  

(829,913

)

 

Shareholder transactions

 

Proceeds from shares sold

  

   

   

2,491,783

   

3,931,470

  

Cost of shares redeemed

  

(36,553,343

)

  

(13,238,286

)

  

   

(6,438,578

)

 

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

  

(36,553,343

)

  

(13,238,286

)

  

2,491,783

   

(2,507,108

)

 

Increase (decrease) in net assets

  

(46,081,571

)

  

109,239

   

1,620,582

   

(1,398,460

)

 

Net Assets:

 

Net assets at beginning of year

  

71,127,213

   

71,017,974

   

9,810,509

   

11,208,969

  

Net assets at end of year

 

$

25,045,642

  

$

71,127,213

  

$

11,431,091

  

$

9,810,509

  

Undistributed (accumulated) net investment income (loss)

 

$

198,405

  

$

447,628

  

$

52,149

  

$

38,617

  

Capital stock activity

 

Shares outstanding, beginning of year

  

3,650,000

   

4,400,000

   

350,000

   

450,000

  

Subscriptions

  

   

   

100,000

   

150,000

  

Redemptions

  

(2,150,000

)

  

(750,000

)

  

   

(250,000

)

 

Shares outstanding, end of year

  

1,500,000

   

3,650,000

   

450,000

   

350,000

  

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

Columbia ETF Trust II | Annual Report 2019
68



STATEMENT OF CHANGES IN NET ASSETS (continued)

  

Columbia EM Quality Dividend ETF

 Columbia Emerging Markets
Consumer ETF(a) (Consolidated)
 
  Year Ended
March 31, 2019
 Year Ended
March 31, 2018
 Year Ended
March 31, 2019
 Year Ended
March 31, 2018
 

Operations

 

Net investment income

 

$

267,176

  

$

312,749

  

$

5,131,130

  

$

3,316,550

  

Net realized gain (loss)

  

(425,589

)

  

1,193,776

   

(20,154,637

)

  

(11,616,922

)

 

Net change in unrealized appreciation (depreciation)

  

(856,705

)

  

662,997

   

(89,095,835

)

  

64,475,955

  

Net increase (decrease) in net assets resulting from operations

  

(1,015,118

)

  

2,169,522

   

(104,119,342

)

  

56,175,583

  

Distributions to shareholders

 

Net investment income and net realized gains

  

(238,019

)

  

   

(2,714,200

)

  

  

Net investment income

  

   

(279,712

)

  

   

(3,335,918

)

 

Total distributions to shareholders (Note 2)

  

(238,019

)

  

(279,712

)

  

(2,714,200

)

  

(3,335,918

)

 

Shareholder transactions

 

Proceeds from shares sold

  

   

   

   

102,899,683

  

Cost of shares redeemed

  

(4,309,714

)

  

(3,767,028

)

  

(412,983,788

)

  

(87,000,586

)

 

Transaction fees

  

   

   

24,964

   

1,275

  

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

  

(4,309,714

)

  

(3,767,028

)

  

(412,958,824

)

  

15,900,372

  

Increase (decrease) in net assets

  

(5,562,851

)

  

(1,877,218

)

  

(519,792,366

)

  

68,740,037

  

Net Assets:

 

Net assets at beginning of year

  

11,202,832

   

13,080,050

   

809,911,027

   

741,170,990

  

Net assets at end of year

 

$

5,639,981

  

$

11,202,832

  

$

290,118,661

  

$

809,911,027

  

Undistributed (accumulated) net investment income (loss)

 

$

2,431

  

$

(9,998

)

 

$

1,147,300

  

$

(666,235

)

 

Capital stock activity

 

Shares outstanding, beginning of year

  

700,000

   

950,000

   

30,750,000

   

29,950,000

  

Subscriptions

  

   

   

   

3,900,000

  

Redemptions

  

(300,000

)

  

(250,000

)

  

(17,950,000

)

  

(3,100,000

)

 

Shares outstanding, end of year

  

400,000

   

700,000

   

12,800,000

   

30,750,000

  

(a)  EG Shares Consumer Mauritius, the Fund's Subsidiary, was liquidated on November 30, 2018.

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

Columbia ETF Trust II | Annual Report 2019
69



STATEMENT OF CHANGES IN NET ASSETS (continued)

  Columbia India
Consumer ETF (Consolidated)
 Columbia India
Infrastructure ETF(a) (Consolidated)
 
  Year Ended
March 31, 2019
 Year Ended
March 31, 2018
 Year Ended
March 31, 2019
 Year Ended
March 31, 2018
 

Operations

 

Net investment income

 

$

362,258

  

$

16,257

  

$

412,914

  

$

655,425

  

Net realized gain

  

2,622,524

   

1,435,618

   

3,167,166

   

1,537,495

  

Net change in unrealized appreciation (depreciation)

  

(14,477,422

)

  

18,166,972

   

(8,950,160

)

  

956,065

  

Net increase (decrease) in net assets resulting from operations

  

(11,492,640

)

  

19,618,847

   

(5,370,080

)

  

3,148,985

  

Distributions to shareholders

 

Net investment income and net realized gains

  

(167,832

)

  

   

(433,673

)

  

  

Net investment income

  

   

(79,763

)

  

   

(363,029

)

 

Total distributions to shareholders (Note 2)

  

(167,832

)

  

(79,763

)

  

(433,673

)

  

(363,029

)

 

Shareholder transactions

 

Proceeds from shares sold

  

   

52,477,343

   

   

23,501,348

  

Cost of shares redeemed

  

(2,192,452

)

  

(15,827,789

)

  

(12,406,577

)

  

(18,202,473

)

 

Transaction fees

  

   

(975

)

  

   

(1,199

)

 

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

  

(2,192,452

)

  

36,648,579

   

(12,406,577

)

  

5,297,676

  

Increase (decrease) in net assets

  

(13,852,924

)

  

56,187,663

   

(18,210,330

)

  

8,083,632

  

Net Assets:

 

Net assets at beginning of year

  

144,289,168

   

88,101,505

   

49,612,310

   

41,528,678

  

Net assets at end of year

 

$

130,436,244

  

$

144,289,168

  

$

31,401,980

  

$

49,612,310

  

Undistributed (accumulated) net investment income (loss)

 

$

(165,192

)

 

$

(211,068

)

 

$

128,461

  

$

214,089

  

Capital stock activity

 

Shares outstanding, beginning of year

  

3,150,000

   

2,300,000

   

3,550,000

   

3,200,000

  

Subscriptions

  

   

1,200,000

   

   

1,600,000

  

Redemptions

  

(50,000

)

  

(350,000

)

  

(950,000

)

  

(1,250,000

)

 

Shares outstanding, end of year

  

3,100,000

   

3,150,000

   

2,600,000

   

3,550,000

  

(a)  EG Shares India Infrastructure Mauritius, the Fund's Subsidiary, was liquidated on November 16, 2018.

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

Columbia ETF Trust II | Annual Report 2019
70



STATEMENT OF CHANGES IN NET ASSETS (continued)

  Columbia India Small Cap
ETF(a) (Consolidated)
 
  Year Ended
March 31, 2019
 Year Ended
March 31, 2018
 

Operations

 

Net investment income

 

$

330,039

  

$

4,915

  

Net realized gain (loss)

  

(8,441,059

)

  

5,356,315

  

Net change in unrealized appreciation (depreciation)

  

2,815,731

   

(3,725,155

)

 

Net increase (decrease) in net assets resulting from operations

  

(5,295,289

)

  

1,636,075

  

Distributions to shareholders

 

Net investment income

  

   

(247,725

)

 

Shareholder transactions

 

Proceeds from shares sold

  

   

7,647,176

  

Cost of shares redeemed

  

(8,536,653

)

  

(6,314,661

)

 

Transaction fees

  

   

(3,706

)

 

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

  

(8,536,653

)

  

1,328,809

  

Increase (decrease) in net assets

  

(13,831,942

)

  

2,717,159

  

Net Assets:

 

Net assets at beginning of year

  

28,282,044

   

25,564,885

  

Net assets at end of year

 

$

14,450,102

  

$

28,282,044

  

Undistributed (accumulated) net investment income (loss)

 

$

  

$

(427,545

)

 

Capital stock activity

 

Shares outstanding, beginning of year

  

1,450,000

   

1,400,000

  

Subscriptions

  

   

350,000

  

Redemptions

  

(500,000

)

  

(300,000

)

 

Shares outstanding, end of year

  

950,000

   

1,450,000

  

(a)  EG Shares India Small Cap Mauritius, the Fund's Subsidiary, was liquidated on August 24, 2018.

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

Columbia ETF Trust II | Annual Report 2019
71



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 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 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

  

Year Ended March 31,

 
  

2019

 

2018

 

2017

 

2016

 

2015

 

Per share data

 

Net asset value, beginning of year

 

$

19.49

  

$

16.14

  

$

15.77

  

$

19.87

  

$

21.01

  

Income (loss) from investment operations:

 

Net investment income

  

0.49

   

0.49

   

0.34

   

0.40

   

0.56

  

Net realized and unrealized gain (loss)

  

(2.39

)

  

3.36

   

0.43

   

(3.83

)

  

(1.43

)

 

Total from investment operations

  

(1.90

)

  

3.85

   

0.77

   

(3.43

)

  

(0.87

)

 

Less distributions to shareholders:

 

Net investment income

  

(0.89

)

  

(0.50

)

  

(0.40

)

  

(0.67

)

  

(0.25

)

 

Net realized gains

  

   

   

   

   

(0.02

)

 

Total distribution to shareholders

  

(0.89

)

  

(0.50

)

  

(0.40

)

  

(0.67

)

  

(0.27

)

 

Net asset value, end of year

 

$

16.70

  

$

19.49

  

$

16.14

  

$

15.77

  

$

19.87

  

Total Return at NAV

  

(9.46

)%

  

24.11

%

  

5.12

%

  

(17.05

)%

  

(4.16

)%

 

Total Return at Market

  

(10.15

)%

  

25.97

%

  

4.01

%

  

(17.00

)%

  

(4.78

)%

 

Ratios to average net assets:

 

Total gross expenses(a)

  

0.72

%(b)

  

0.86

%(c)

  

0.85

%

  

0.85

%

  

0.85

%

 

Total net expenses(a)(d)

  

0.60

%(b)

  

0.59

%(c)

  

0.58

%

  

0.58

%

  

0.58

%

 

Net Investment income

  

2.75

%

  

2.69

%

  

2.18

%

  

2.26

%

  

2.65

%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

25,046

  

$

71,127

  

$

71,018

  

$

92,242

  

$

301,041

  

Portfolio turnover

  

23

%

  

34

%

  

36

%

  

32

%

  

33

%

 

Notes to Financial Highlights

(a)  In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund's reported expense ratios.

(b)  The ratio includes 0.01% for the year ended March 31, 2019 attributed to overdraft expense, which is outside the Unitary Fee (as defined in Note 3).

(c)  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).

(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 2019
72



FINANCIAL HIGHLIGHTS

Columbia EM Core ex-China ETF

  

Year Ended March 31,

 
  

2019

 

2018

 

2017

 

2016(a)

 

Per share data

 

Net asset value, beginning of year

 

$

28.03

  

$

24.91

  

$

21.23

  

$

20.00

  

Income (loss) from investment operations:

 

Net investment income

  

0.65

   

0.66

   

0.41

   

0.22

  

Net realized and unrealized gain (loss)

  

(2.51

)

  

4.83

   

3.55

   

1.52

  

Total from investment operations

  

(1.86

)

  

5.49

   

3.96

   

1.74

  

Less distributions to shareholders:

 

Net investment income

  

(0.62

)

  

(0.61

)

  

(0.28

)

  

(0.51

)

 

Net realized gains

  

(0.15

)

  

(1.76

)

  

   

  

Total distribution to shareholders

  

(0.77

)

  

(2.37

)

  

(0.28

)

  

(0.51

)

 

Net asset value, end of year

 

$

25.40

  

$

28.03

  

$

24.91

  

$

21.23

  

Total Return at NAV

  

(6.38

)%

  

22.76

%

  

18.83

%

  

8.98

%

 

Total Return at Market

  

(7.37

)%

  

20.45

%

  

23.20

%

  

8.49

%

 

Ratios to average net assets:

 

Total gross expenses(b)

  

0.47

%(c)

  

0.70

%(d)

  

0.70

%

  

0.70

%(e)

 

Total net expenses(b)(f)

  

0.35

%(c)

  

0.35

%(d)

  

0.35

%

  

0.35

%(e)

 

Net Investment income

  

2.54

%

  

2.40

%

  

1.80

%

  

1.92

%(e)

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

11,431

  

$

9,811

  

$

11,209

  

$

1,062

  

Portfolio turnover

  

24

%

  

37

%

  

30

%

  

45

%

 

Notes to Financial Highlights

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

(b)  In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund's reported expense ratios.

(c)  The ratio includes less than 0.01% for the year ended March 31, 2019 attributed to overdraft expense, which is outside the Unitary Fee (as defined in Note 3).

(d)  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).

(e)  Annualized.

(f)  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 2019
73



FINANCIAL HIGHLIGHTS

Columbia EM Quality Dividend ETF

  

Year Ended March 31,

 
  

2019

 

2018

 

2017

 

2016

 

2015

 

Per share data

 

Net asset value, beginning of year

 

$

16.00

  

$

13.77

  

$

12.81

  

$

14.25

  

$

16.15

  

Income (loss) from investment operations:

 

Net investment income

  

0.48

   

0.38

   

0.37

   

0.38

   

0.77

  

Net realized and unrealized gain (loss)

  

(1.93

)

  

2.21

   

0.90

   

(1.45

)

  

(2.08

)

 

Total from investment operations

  

(1.45

)

  

2.59

   

1.27

   

(1.07

)

  

(1.31

)

 

Less distributions to shareholders:

 

Net investment income

  

(0.45

)

  

(0.36

)

  

(0.31

)

  

(0.37

)

  

(0.59

)

 

Net asset value, end of year

 

$

14.10

  

$

16.00

  

$

13.77

  

$

12.81

  

$

14.25

  

Total Return at NAV

  

(9.01

)%

  

18.96

%

  

10.05

%

  

(7.38

)%

  

(8.37

)%

 

Total Return at Market

  

(10.44

)%

  

20.31

%

  

11.09

%

  

(7.78

)%

  

(8.34

)%

 

Ratios to average net assets:

 

Total gross expenses(a)

  

0.60

%(b)

  

0.82

%(c)

  

0.85

%

  

0.85

%

  

0.89

%(d)

 

Total net expenses(a)(e)

  

0.60

%(b)

  

0.82

%(c)

  

0.85

%

  

0.85

%

  

0.89

%(d)

 

Net Investment income

  

3.29

%

  

2.55

%

  

2.79

%

  

2.88

%

  

4.76

%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

5,640

  

$

11,203

  

$

13,080

  

$

16,012

  

$

24,935

  

Portfolio turnover

  

71

%

  

91

%

  

100

%

  

85

%

  

168

%

 

Notes to Financial Highlights

(a)  In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund's reported expense ratios.

(b)  The ratio includes 0.01% for the year ended March 31, 2019 attributed to overdraft expense, which is outside the Unitary Fee (as defined in Note 3).

(c)  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).

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

(e)  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 2019
74



FINANCIAL HIGHLIGHTS

Columbia Emerging Markets Consumer ETF(a) (Consolidated)

  

Year Ended March 31,

 
  

2019

 

2018

 

2017

 

2016

 

2015

 

Per share data

 

Net asset value, beginning of year

 

$

26.34

  

$

24.75

  

$

22.60

  

$

26.45

  

$

26.53

  

Income (loss) from investment operations:

 

Net investment income

  

0.25

   

0.10

   

0.18

   

0.21

   

0.25

  

Net realized and unrealized gain (loss)

  

(3.72

)

  

1.59

   

2.13

   

(3.83

)

  

(0.03

)

 

Total from investment operations

  

(3.47

)

  

1.69

   

2.31

   

(3.62

)

  

0.22

  

Less distributions to shareholders:

 

Net investment income

  

(0.20

)

  

(0.10

)

  

(0.16

)

  

(0.23

)

  

(0.30

)

 

Net asset value, end of year

 

$

22.67

  

$

26.34

  

$

24.75

  

$

22.60

  

$

26.45

  

Total Return at NAV

  

(13.08

)%

  

6.81

%

  

10.35

%

  

(13.63

)%

  

0.88

%

 

Total Return at Market

  

(13.90

)%

  

7.16

%

  

10.75

%

  

(13.64

)%

  

0.74

%

 

Ratios to average net assets:

 

Total gross expenses(b)

  

0.61

%(c)

  

0.81

%(d)

  

0.85

%(e)

  

0.85

%

  

0.83

%

 

Total net expenses(b)(f)

  

0.61

%(c)

  

0.81

%(d)

  

0.85

%(e)

  

0.85

%

  

0.83

%

 

Net Investment income

  

1.07

%

  

0.37

%

  

0.77

%

  

0.86

%

  

0.92

%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

290,119

  

$

809,911

  

$

741,171

  

$

612,360

  

$

1,145,158

  

Portfolio turnover

  

61

%

  

27

%

  

17

%

  

32

%

  

12

%

 

Notes to Financial Highlights

(a)  EG Shares Consumer Mauritius, the Fund's Subsidiary, was liquidated on November 30, 2018.

(b)  In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund's reported expense ratios.

(c)  The ratio includes 0.02% for the year ended March 31, 2019 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3).

(d)  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).

(e)  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).

(f)  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 2019
75



FINANCIAL HIGHLIGHTS

Columbia India Consumer ETF (Consolidated)

  

Year Ended March 31,

 
  

2019

 

2018

 

2017

 

2016

 

2015

 

Per share data

 

Net asset value, beginning of year

 

$

45.81

  

$

38.31

  

$

31.16

  

$

35.48

  

$

24.72

  

Income (loss) from investment operations:

 

Net investment income (loss)

  

0.12

   

0.01

   

(0.03

)

  

0.04

   

(0.12

)

 

Net realized and unrealized gain (loss)

  

(3.80

)

  

7.52

   

7.21

   

(4.36

)

  

10.91

  

Total from investment operations

  

(3.68

)

  

7.53

   

7.18

   

(4.32

)

  

10.79

  

Less distributions to shareholders:

 

Net investment income

  

(0.05

)

  

(0.03

)

  

(0.03

)

  

   

(0.03

)

 

Net asset value, end of year

 

$

42.08

  

$

45.81

  

$

38.31

  

$

31.16

  

$

35.48

  

Total Return at NAV

  

(8.03

)%

  

19.64

%

  

23.06

%

  

(12.18

)%

  

43.64

%

 

Total Return at Market

  

(8.44

)%

  

19.98

%

  

23.67

%

  

(12.57

)%

  

44.04

%

 

Ratios to average net assets:

 

Total gross expenses(a)

  

0.77

%(b)

  

0.87

%(c)

  

0.89

%(d)

  

0.89

%

  

0.90

%(e)

 

Total net expenses(a)(f)

  

0.77

%(b)

  

0.87

%(c)

  

0.89

%(d)

  

0.89

%

  

0.90

%(e)

 

Net Investment income (loss)

  

0.26

%

  

0.01

%

  

(0.09

)%

  

0.13

%

  

(0.36

)%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

130,436

  

$

144,289

  

$

88,102

  

$

71,679

  

$

88,710

  

Portfolio turnover

  

15

%

  

28

%

  

31

%

  

47

%

  

82

%

 

Notes to Financial Highlights

(a)  In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund's reported expense ratios.

(b)  The ratio includes 0.02% for the year ended March 31, 2019 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, 2018 attributed to line of credit interest expense and tax expense, which is outside the Unitary Fee (as defined in Note 3).

(d)  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).

(e)  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).

(f)  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 2019
76



FINANCIAL HIGHLIGHTS

Columbia India Infrastructure ETF(a) (Consolidated)

  

Year Ended March 31,

 
  

2019

 

2018

 

2017

 

2016

 

2015

 

Per share data

 

Net asset value, beginning of year

 

$

13.98

  

$

12.98

  

$

10.24

  

$

13.08

  

$

11.35

  

Income (loss) from investment operations:

 

Net investment income

  

0.15

   

0.18

   

0.03

   

0.30

   

0.12

  

Net realized and unrealized gain (loss)

  

(1.89

)

  

0.92

   

3.03

   

(3.04

)

  

1.65

(b)

 

Total from investment operations

  

(1.74

)

  

1.10

   

3.06

   

(2.74

)

  

1.77

  

Less distributions to shareholders:

 

Net investment income

  

(0.16

)

  

(0.10

)

  

(0.32

)

  

(0.10

)

  

(0.04

)

 

Net asset value, end of year

 

$

12.08

  

$

13.98

  

$

12.98

  

$

10.24

  

$

13.08

  

Total Return at NAV

  

(12.39

)%

  

8.41

%

  

30.61

%

  

(21.00

)%

  

15.59

%

 

Total Return at Market

  

(14.36

)%

  

9.13

%

  

30.93

%

  

(21.41

)%

  

15.93

%

 

Ratios to average net assets:

 

Total gross expenses(c)

  

0.92

%(d)

  

0.84

%(e)

  

0.98

%(f)

  

0.88

%(g)

  

0.88

%(h)

 

Total net expenses(c)(i)

  

0.92

%(d)

  

0.84

%(e)

  

0.98

%(f)

  

0.88

%(g)

  

0.88

%(h)

 

Net Investment income

  

1.17

%

  

1.25

%

  

0.28

%

  

2.68

%

  

0.90

%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

31,402

  

$

49,612

  

$

41,529

  

$

39,938

  

$

47,736

  

Portfolio turnover

  

88

%

  

54

%

  

34

%

  

59

%

  

75

%

 

Notes to Financial Highlights

(a)  EG Shares India Infrastructure Mauritius, the Fund's Subsidiary, was liquidated on November 16, 2018.

(b)  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).

(c)  In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund's reported expense ratios.

(d)  The ratio includes 0.17% for the year ended March 31, 2019 attributed to line of credit interest expense, overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3).

(e)  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).

(f)  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).

(g)  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).

(h)  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).

(i)  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 2019
77



FINANCIAL HIGHLIGHTS

Columbia India Small Cap ETF(a) (Consolidated)

  

Year Ended March 31,

 
  

2019

 

2018

 

2017

 

2016

 

2015

 

Per share data

 

Net asset value, beginning of year

 

$

19.50

  

$

18.26

  

$

13.59

  

$

17.48

  

$

12.74

  

Income (loss) from investment operations:

 

Net investment income (loss)

  

0.28

   

0.00

(b)

  

(0.02

)

  

0.06

   

0.05

  

Net realized and unrealized gain (loss)

  

(4.57

)

  

1.41

   

4.82

   

(3.86

)

  

4.77

  

Total from investment operations

  

(4.29

)

  

1.41

   

4.80

   

(3.80

)

  

4.82

  

Less distributions to shareholders:

 

Net investment income

  

   

(0.17

)

  

(0.13

)

  

(0.09

)

  

(0.08

)

 

Net asset value, end of year

 

$

15.21

  

$

19.50

  

$

18.26

  

$

13.59

  

$

17.48

  

Total Return at NAV

  

(22.00

)%

  

7.61

%

  

35.62

%

  

(21.78

)%

  

37.86

%

 

Total Return at Market

  

(22.98

)%

  

8.51

%

  

36.29

%

  

(22.27

)%

  

39.17

%

 

Ratios to average net assets:

 

Total gross expenses(c)

  

0.77

%(d)

  

0.86

%(e)

  

0.86

%(f)

  

0.86

%(g)

  

0.92

%(h)

 

Total net expenses(c)(i)

  

0.77

%(d)

  

0.86

%(e)

  

0.86

%(f)

  

0.86

%(g)

  

0.92

%(h)

 

Net Investment income (loss)

  

1.70

%

  

0.02

%

  

(0.12

)%

  

0.40

%

  

0.33

%

 

Supplemental data

 

Net assets, end of year (in thousands)

 

$

14,450

  

$

28,282

  

$

25,565

  

$

19,027

  

$

28,850

  

Portfolio turnover

  

84

%

  

107

%

  

71

%

  

45

%

  

117

%

 

Notes to Financial Highlights

(a)  EG Shares India Small Cap Mauritius, the Fund's Subsidiary, was liquidated on August 24, 2018.

(b)  Rounds to zero.

(c)  In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund's reported expense ratios.

(d)  The ratio includes 0.02% for the year ended March 31, 2019 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3).

(e)  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).

(f)  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).

(g)  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).

(h)  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).

(i)  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 2019
78



NOTES TO FINANCIAL STATEMENTS

March 31, 2019

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 non-diversified 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 (or previously included) 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.

Fund

 

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 India Consumer ETF invests in Indian securities both directly (in India), and through its corresponding Subsidiary, which in turn invests virtually all of its assets in Indian securities.

As of the date of this report, Columbia Emerging Markets Consumer ETF, Columbia India Infrastructure ETF and Columbia India Small Cap ETF have transitioned all of their Indian securities out of their corresponding Subsidiary and hold investments in Indian 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, 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) have resulted in the imposition of additional taxes by India on each Fund and Subsidiary listed in the table above. For more information, see India-Mauritius Tax Treaty Risk.

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

  

0.0

%

  

   

955,012

   

36,926,304

   

(37,343,283

)

 

Columbia India Consumer ETF

  

72.5

%

  

94,548,810

   

1,218,907

   

3,436,219

   

(11,663,047

)

 

Columbia India Infrastructure ETF

  

0.0

%

  

   

374,050

   

3,216,931

   

(10,263,968

)

 

Columbia India Small Cap ETF

  

0.0

%

  

   

17,641

   

(1,565,514

)

  

1,278,558

 

Columbia ETF Trust II | Annual Report 2019
79



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2019

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 Fund's 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 results 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 and exchange-traded funds are valued at the close of business of the New York Stock Exchange. Equity securities and exchange-traded funds 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.

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 Funds' Portfolio of Investments.

Columbia ETF Trust II | Annual Report 2019
80



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2019

Foreign currency transactions and translation

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 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.

Columbia ETF Trust II | Annual Report 2019
81



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2019

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 pronouncements

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. Management does not expect the implementation of this guidance to have a material impact on the financial statement amounts and footnote disclosures.

Accounting Standards Update 2018-13 Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2018-13 Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for the timing of transfers between levels. The standard is effective for annual periods beginning after December 15, 2019 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 disclosures, if any.

Disclosure Update and Simplification

In September 2018, the Securities and Exchange Commission (SEC) released Final Rule 33-10532, Disclosure Update and Simplification, which amends certain financial statement disclosure requirements that the SEC determined to be redundant, outdated, or superseded in light of other SEC disclosure requirements, GAAP, or changes in the information environment. As a result of the amendments, management implemented disclosure changes which included removing the components of distributable earnings presented on the Statement of Assets and Liabilities and combining income and gain distributions paid to shareholders as presented on the Statement of Changes in Net Assets. Any values presented to meet prior year requirements were left unchanged. The amendments had no effect on the Funds' net assets or results of operation.

Columbia ETF Trust II | Annual Report 2019
82



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2019

Note 3. 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 Funds (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 Funds' 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.

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:

  

Effective August 1, 2018

 

Prior to August 1, 2018

 

Fund

 

Assets (billions)

 Investment
management
fee rate (%)
 

Assets (billions)

 Investment
management
fee rate (%)
 

Columbia Beyond BRICs ETF

 

All

  

0.59

  

All

  

0.85

  

Columbia EM Core ex-China ETF

 

All

  

0.35

  

All

  

0.70

  

Columbia EM Quality Dividend ETF

 

All

  

0.59

  

All

  

0.59

  

Columbia Emerging Markets Consumer ETF

 

All

  

0.59

  

All

  

0.59

  

Columbia India Consumer ETF

 

All

  

0.75

  

All

  

0.75

  

Columbia India Infrastructure ETF

 

All

  

0.75

  

All

  

0.75

  

Columbia India Small Cap ETF

 

All

  

0.75

  

All

  

0.75

  

The effective management services fee rate for the year ended March 31, 2019 was as follows:

Fund

 Effective investment
management
fee rate (%)
 

Columbia Beyond BRICs ETF

  

0.70

  

Columbia EM Core ex-China ETF

  

0.47

  

Columbia EM Quality Dividend ETF

  

0.59

  

Columbia Emerging Markets Consumer ETF

  

0.59

  

Columbia India Consumer ETF

  

0.75

  

Columbia India Infrastructure ETF

  

0.75

  

Columbia India Small Cap ETF

  

0.75

  

The Investment Manager had 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 was limited as a percentage of the respective Fund's average daily net assets to the annual rate noted below:

Fund

 Prior to
September 1, 2018
 

Columbia Beyond BRICs ETF

  

0.58

%

 

Columbia EM Core ex-China ETF

  

0.35

  

Columbia ETF Trust II | Annual Report 2019
83



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2019

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 Deferred 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 Deferred Plan. All amounts payable under the Deferred Plan constitute a general unsecured obligation of the Funds. 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 registered investment companies managed by the Investment Manager and its affiliates, 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, 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, 2019, these differences are primarily due to differing treatments for deferral/reversal of wash sale losses, foreign currency transactions, disallowed capital gains (losses) on a redemption in-kind, re-characterization of distributions for investments 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

  

(78,245

)

  

2,046,170

   

(1,967,925

)

 

Columbia EM Core ex-China ETF

  

(6,096

)

  

6,096

   

  

Columbia EM Quality Dividend ETF

  

(16,728

)

  

(31,266

)

  

47,994

  

Columbia Emerging Markets Consumer ETF

  

(603,395

)

  

(2,860,263

)

  

3,463,658

  

Columbia India Consumer ETF

  

(148,550

)

  

167,903

   

(19,353

)

 

Columbia India Infrastructure ETF

  

(64,869

)

  

64,869

   

  

Columbia India Small Cap ETF

  

97,506

   

727

   

(98,233

)

 

Columbia ETF Trust II | Annual Report 2019
84



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2019

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.

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

 

Year Ended March 31, 2019

 

Year Ended March 31, 2018

 
Funds Ordinary
income ($)
 Long-term
capital gain ($)
 

Total ($)

 Ordinary
income ($)
 Long-term
capital gain ($)
 

Total ($)

 

Columbia Beyond BRICs ETF

  

1,602,594

   

   

1,602,594

   

1,818,029

   

   

1,818,029

  

Columbia EM Core ex-China ETF

  

224,521

   

45,399

   

269,920

   

308,666

   

521,247

   

829,913

  

Columbia EM Quality Dividend ETF

  

238,019

   

   

238,019

   

279,712

   

   

279,712

  

Columbia Emerging Markets Consumer ETF

  

2,714,200

   

   

2,714,200

   

3,335,918

   

   

3,335,918

  

Columbia India Consumer ETF

  

167,832

   

   

167,832

   

79,763

   

   

79,763

  

Columbia India Infrastructure ETF

  

433,673

   

   

433,673

   

363,029

   

   

363,029

  

Columbia India Small Cap ETF

  

   

   

   

247,725

   

   

247,725

  

Short-term capital gain distributions, if any, are considered ordinary income distributions for tax purposes.

At March 31, 2019, the components of distributable earnings on a tax basis were as follows:

Funds Undistributed
ordinary income ($)
 Undistributed
long-term capital
gains ($)
 Capital loss
carryforwards ($)
 Net unrealized
appreciation
(depreciation) ($)
 

Columbia Beyond BRICs ETF

  

198,405

   

   

(61,479,061

)

  

(1,348,604

)

 

Columbia EM Core ex-China ETF

  

64,208

   

   

(468,339

)

  

1,713,189

  

Columbia EM Quality Dividend ETF

  

38,244

   

   

(27,327,654

)

  

(117,679

)

 

Columbia Emerging Markets Consumer ETF

  

1,147,300

   

   

(202,083,868

)

  

(7,888,989

)

 

Columbia India Consumer ETF

  

   

   

(2,518,272

)

  

17,722,673

  

Columbia India Infrastructure ETF

  

128,461

   

   

(52,619,357

)

  

(4,172,345

)

 

Columbia India Small Cap ETF

  

   

   

(14,773,105

)

  

(105,906

)

 

At March 31, 2019, the cost of all 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

  

26,279,177

   

3,378,980

   

(4,725,541

)

  

(1,346,561

)

 

Columbia EM Core ex-China ETF

  

9,675,417

   

2,035,767

   

(322,271

)

  

1,713,496

  

Columbia EM Quality Dividend ETF

  

5,718,225

   

424,584

   

(541,680

)

  

(117,096

)

 

Columbia Emerging Markets Consumer ETF

  

297,913,251

   

16,368,710

   

(24,255,587

)

  

(7,886,877

)

 

Columbia India Consumer ETF

  

112,796,385

   

28,563,598

   

(10,263,675

)

  

18,299,923

  

Columbia India Infrastructure ETF

  

35,567,763

   

1,993,666

   

(6,165,896

)

  

(4,172,230

)

 

Columbia India Small Cap ETF

  

14,564,449

   

531,492

   

(637,397

)

  

(105,905

)

 

Tax cost of investments and unrealized appreciation/(depreciation) may also include timing differences that do not constitute adjustments to tax basis.

Columbia ETF Trust II | Annual Report 2019
85



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2019

The following capital loss carryforward, determined at March 31, 2019, 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:

Funds No expiration
short-term ($)
 No expiration
long-term ($)
 

Total ($)

 

Utilized ($)

 Expired ($) 

Columbia Beyond BRICs ETF

  

17,918,647

   

43,560,414

   

61,479,061

   

   

  

Columbia EM Core ex-China ETF

  

   

   

   

   

  

Columbia EM Quality Dividend ETF

  

21,430,417

   

5,897,237

   

27,327,654

   

   

  

Columbia Emerging Markets Consumer ETF

  

5,503,691

   

196,580,177

   

202,083,868

   

   

  

Columbia India Consumer ETF

  

2,518,272

   

   

2,518,272

   

3,004,148

   

  

Columbia India Infrastructure ETF

  

16,835,384

   

35,783,973

   

52,619,357

   

3,438,824

   

  

Columbia India Small Cap ETF

  

6,379,617

   

8,393,488

   

14,773,105

   

   

  

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, 2019, the Funds will elect to treat the following late-year ordinary losses and post-October capital losses as arising on April 1, 2019.

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

Columbia Beyond BRICs ETF

  

   

  

Columbia EM Core ex-China ETF

  

   

468,339

  

Columbia EM Quality Dividend ETF

  

   

  

Columbia Emerging Markets Consumer ETF

  

   

  

Columbia India Consumer ETF

  

165,192

   

  

Columbia India Infrastructure ETF

  

   

  

Columbia India Small Cap ETF

  

   

  

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 adjustment 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, 2019, were as follows:

Funds 

Purchases ($)

 Proceeds from
sales ($)
 

Columbia Beyond BRICs ETF

  

11,847,408

   

28,828,234

  

Columbia EM Core ex-China ETF

  

3,608,072

   

2,233,816

  

Columbia EM Quality Dividend ETF

  

5,811,941

   

8,271,488

  

Columbia Emerging Markets Consumer ETF

  

293,599,851

   

384,557,833

  

Columbia India Consumer ETF

  

20,676,608

   

24,853,692

  

Columbia India Infrastructure ETF

  

31,275,967

   

44,347,762

  

Columbia India Small Cap ETF

  

16,202,635

   

24,499,528

  

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

Columbia ETF Trust II | Annual Report 2019
86



NOTES TO FINANCIAL STATEMENTS (continued)

March 31, 2019

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, 2019, the cost basis of securities contributed was as follows:

Funds

 

Contributions ($)

 

Columbia Beyond BRICs ETF

  

  

Columbia EM Core ex-China ETF

  

1,079,869