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 | 811-23305 | |||||
AMERICAN CENTURY ETF TRUST | ||||||
(Exact name of registrant as specified in charter) | ||||||
4500 MAIN STREET, KANSAS CITY, MISSOURI | 64111 | |||||
(Address of principal executive offices) | (Zip Code) | |||||
CHARLES A. ETHERINGTON 4500 MAIN STREET, KANSAS CITY, MISSOURI 64111 | ||||||
(Name and address of agent for service) | ||||||
Registrant’s telephone number, including area code: | 816-531-5575 | |||||
Date of fiscal year end: | 08-31 | |||||
Date of reporting period: | 02-28-2019 |
ITEM 1. REPORTS TO STOCKHOLDERS.
Semiannual Report | |
February 28, 2019 | |
American Century® Diversified Corporate Bond ETF (KORP) | |
American Century® Diversified Municipal Bond ETF (TAXF) | |
American Century® Quality Diversified International ETF (QINT) | |
American Century® STOXX® U.S. Quality Growth ETF (QGRO) | |
American Century® STOXX® U.S. Quality Value ETF (VALQ) |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the funds' shareholder reports like this one will no longer be sent by mail, unless you specifically request paper copies of the reports from the funds or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you 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 or your financial intermediary electronically by calling or sending an email request to your appropriate contacts as listed on the back cover of this report.
You may elect to receive all future reports in paper free of charge. You can inform the funds or your financial intermediary that you wish to continue receiving paper copies of your shareholder reports by calling or sending an email request to your appropriate contacts as listed on the back cover of this report. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Table of Contents |
President’s Letter | |
Diversified Corporate Bond ETF | |
Fund Characteristics | |
Diversified Municipal Bond ETF | |
Fund Characteristics | |
Quality Diversified International ETF | |
Fund Characteristics | |
STOXX® U.S. Quality Growth ETF | |
Fund Characteristics | |
STOXX® U.S. Quality Value ETF | |
Fund Characteristics | |
Shareholder Fee Examples | |
Schedules of Investments | |
Statements of Assets and Liabilities | |
Statements of Operations | |
Statements of Changes in Net Assets | |
Notes to Financial Statements | |
Financial Highlights | |
Approval of Management Agreement | |
Additional Information |
The iSTOXX American Century USA Quality Value Index is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland (“STOXX”), Deutsche Börse Group or their licensors, which is used under license. American Century STOXX U.S. Quality Value ETF is neither sponsored nor promoted, distributed or in any other manner supported by STOXX, Deutsche Börse Group or their licensors, research partners or data providers and STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions or interruptions in the iSTOXX American Century USA Quality Value Index or its data.
Any opinions expressed in this report reflect those of the author as of the date of the report, and do not necessarily represent the opinions of American Century Investments® or any other person in the American Century Investments organization. Any such opinions are subject to change at any time based upon market or other conditions and American Century Investments disclaims any responsibility to update such opinions. These opinions may not be relied upon as investment advice and, because investment decisions made by American Century Investments funds are based on numerous factors, may not be relied upon as an indication of trading intent on behalf of any American Century Investments fund. Security examples are used for representational purposes only and are not intended as recommendations to purchase or sell securities. Performance information for comparative indices and securities is provided to American Century Investments by third party vendors. To the best of American Century Investments’ knowledge, such information is accurate at the time of printing.
President’s Letter |
Jonathan Thomas
Dear Investor:
Thank you for reviewing this semiannual report for the period ended February 28, 2019. It provides a market overview (below), followed by a schedule of fund investments and other financial information. For additional commentary and information on ETF performance, plus other investment insights, please visit our website, americancenturyetfs.com.
Stocks Struggle, Bonds Persevere as Volatility Grips Markets
Investor sentiment generally remained upbeat through the first nine months of 2018. Beginning in October, mounting concerns about slowing global economic and earnings growth, U.S.-China trade tensions and rising U.S. interest rates triggered a steep stock market sell-off that lasted through year-end. Meanwhile, the Federal Reserve (Fed) raised its short-term interest rate target in September, which helped keep U.S. Treasury yields climbing through early November.
After reaching 3.24% in early November, the benchmark 10-year Treasury yield tumbled on signs of moderating U.S. economic growth. In addition, continued stock market volatility triggered safe-haven buying, which drove Treasury yields lower. Then, along with its December rate increase, the Fed delivered a surprisingly bullish outlook. Investors believed the Fed’s plans for two rate hikes in 2019 were too aggressive, fueling additional risk-off investing.
January brought a renewed sense of stability to the financial markets. Investors’ growth concerns eased as U.S. economic and earnings data were better than expected. In addition, the Fed changed course, pausing its rate-hike campaign amid moderating global growth and muted inflation. Risk-on sentiment returned, and stocks rallied to start the year. However, the early 2019 gains were not enough to offset the late 2018 losses, and U.S. stocks declined for the six-month period. Losses among non-U.S. developed markets stocks were steeper, while emerging markets stocks eked out a slight gain. Bonds were a bright spot, with Treasuries, corporates and municipals posting positive returns.
As recent performance trends indicate, market volatility remains a formidable force. We believe this factor underscores the importance of using professionally managed portfolios in pursuit of investment goals. We appreciate your continued trust and confidence in us.
Sincerely,
Jonathan Thomas
President and Chief Executive Officer
American Century Investments
2
Fund Characteristics |
FEBRUARY 28, 2019 | |
Diversified Corporate Bond ETF | |
Portfolio at a Glance | |
Weighted Average Life to Maturity | 4.9 years |
Average Duration (Effective) | 3.6 years |
Types of Investments in Portfolio | % of net assets |
Corporate Bonds | 97.6% |
Temporary Cash Investments | 1.4% |
Other Assets and Liabilities | 1.0% |
3
Fund Characteristics |
FEBRUARY 28, 2019 | |
Diversified Municipal Bond ETF | |
Portfolio at a Glance | |
Weighted Average Life to Maturity | 12.4 years |
Average Duration (Modified) | 4.8 years |
Top Five States and Territories | % of net assets |
Illinois | 12.7% |
New Jersey | 10.6% |
New York | 8.7% |
Pennsylvania | 7.8% |
Ohio | 5.7% |
Top Five Sectors | % of fund investments |
Special Tax | 22% |
Corporate Muni | 15% |
General Obligation (GO) - State | 14% |
General Obligation (GO) - Local | 10% |
Hospital | 8% |
Types of Investments in Portfolio | % of net assets |
Municipal Securities | 98.7% |
Other Assets and Liabilities | 1.3% |
4
Fund Characteristics |
FEBRUARY 28, 2019 | |
Quality Diversified International ETF | |
Top Ten Holdings | % of net assets |
Lloyds Banking Group plc | 1.6% |
Japan Tobacco, Inc. | 1.6% |
Sanofi | 1.6% |
Astellas Pharma, Inc. | 1.5% |
Eni SpA | 1.5% |
Repsol SA | 1.3% |
Muenchener Rueckversicherungs-Gesellschaft AG | 1.3% |
Koninklijke Ahold Delhaize NV | 1.2% |
NEC Corp. | 1.2% |
Peugeot SA | 1.2% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.5% |
Temporary Cash Investments | 0.3% |
Other Assets and Liabilities | 0.2% |
Investments by Country | % of net assets |
Japan | 22.6% |
United Kingdom | 15.1% |
France | 9.0% |
Switzerland | 7.0% |
Canada | 5.5% |
Australia | 5.3% |
Netherlands | 4.7% |
Germany | 4.1% |
China | 4.1% |
Sweden | 3.3% |
Spain | 3.1% |
Italy | 3.0% |
Other Countries | 12.7% |
Cash and Equivalents* | 0.5% |
* Includes temporary cash investments and other assets and liabilities. |
5
Fund Characteristics |
FEBRUARY 28, 2019 |
STOXX® U.S. Quality Growth ETF | |
Top Ten Holdings | % of net assets |
Intuit, Inc. | 2.4% |
Vertex Pharmaceuticals, Inc. | 2.3% |
Zoetis, Inc. | 1.9% |
Starbucks Corp. | 1.8% |
Boeing Co. (The) | 1.7% |
Monster Beverage Corp. | 1.6% |
Mastercard, Inc., Class A | 1.6% |
Burlington Stores, Inc. | 1.5% |
Cintas Corp. | 1.5% |
Biogen, Inc. | 1.5% |
Top Five Industries | % of net assets |
Software | 16.3% |
IT Services | 7.5% |
Biotechnology | 7.3% |
Semiconductors and Semiconductor Equipment | 6.2% |
Specialty Retail | 5.3% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.7% |
Temporary Cash Investments | 0.2% |
Other Assets and Liabilities | 0.1% |
6
Fund Characteristics |
FEBRUARY 28, 2019 |
STOXX® U.S. Quality Value ETF | |
Top Ten Holdings | % of net assets |
Gilead Sciences, Inc. | 2.4% |
AbbVie, Inc. | 2.3% |
Merck & Co., Inc. | 2.1% |
Chevron Corp. | 2.0% |
Verizon Communications, Inc. | 2.0% |
American Electric Power Co., Inc. | 2.0% |
Pfizer, Inc. | 2.0% |
Philip Morris International, Inc. | 2.0% |
Ventas, Inc. | 2.0% |
PPL Corp. | 2.0% |
Top Five Industries | % of net assets |
Equity Real Estate Investment Trusts (REITs) | 12.4% |
Electric Utilities | 8.7% |
Pharmaceuticals | 6.3% |
Biotechnology | 6.0% |
Household Products | 5.1% |
Types of Investments in Portfolio | % of net assets |
Common Stocks | 99.7% |
Temporary Cash Investments | 0.2% |
Other Assets and Liabilities | 0.1% |
7
Shareholder Fee Examples |
Fund shareholders may incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of fund shares; and (2) ongoing costs, including management fees and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in your fund and to compare these costs with the ongoing cost of investing in other funds.
The example is based on an investment of $1,000 made at the beginning of the period and held for the entire period from September 1, 2018 to February 28, 2019 (except as noted).
Actual Expenses
The table provides information about actual account values and actual expenses for each fund. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. First, identify the fund you own. Then 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 under the heading “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The table also provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio of your fund and an assumed rate of return of 5% per year before expenses, which is not the actual return of a fund. 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 table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
8
Beginning Account Value 9/1/18 | Ending Account Value 2/28/19 | Expenses Paid During Period(1) 9/1/18 - 2/28/19 | Annualized Expense Ratio(1) | |
Diversified Corporate Bond ETF | ||||
Actual | $1,000 | $1,020.00 | $2.25 | 0.45% |
Hypothetical | $1,000 | $1,022.56 | $2.26 | 0.45% |
Diversified Municipal Bond ETF | ||||
Actual | $1,000 | $1,018.90(2) | $1.38(3) | 0.29% |
Hypothetical | $1,000 | $1,023.36(4) | $1.45(4) | 0.29% |
Quality Diversified International ETF | ||||
Actual | $1,000 | $957.30(2) | $1.80(3) | 0.39% |
Hypothetical | $1,000 | $1,022.86(4) | $1.96(4) | 0.39% |
STOXX® U.S. Quality Growth ETF | ||||
Actual | $1,000 | $990.80(2) | $1.36(3) | 0.29% |
Hypothetical | $1,000 | $1,023.36(4) | $1.45(4) | 0.29% |
STOXX® U.S. Quality Value ETF | ||||
Actual | $1,000 | $960.10 | $1.41 | 0.29% |
Hypothetical | $1,000 | $1,023.36 | $1.45 | 0.29% |
(1) | Expenses are equal to the fund's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 181, the number of days in the most recent fiscal half-year, divided by 365, to reflect the one-half year period. Annualized expense ratio reflects actual expenses, including any applicable fee waivers or expense reimbursements and excluding any acquired fund fees and expenses. |
(2) | Ending account value based on actual return from September 10, 2018 (fund inception) through February 28, 2019. |
(3) | Expenses are equal to the fund's annualized expense ratio listed in the table above, multiplied by the average account value over the period, multiplied by 172, the number of days in the period from September 10, 2018 (fund inception) through February 28, 2019, divided by 365, to reflect the period. Had the fund been available for the full period, the expenses paid during the period would have been higher. |
(4) | Ending account value and expenses paid during the period assumes the fund had been available throughout the entire period and are calculated using the fund's annualized expense ratio listed in the table above. |
9
Schedules of Investments |
FEBRUARY 28, 2019 (UNAUDITED)
Diversified Corporate Bond ETF | ||||||
Principal Amount | Value | |||||
CORPORATE BONDS — 97.6% | ||||||
Airlines — 0.6% | ||||||
Delta Air Lines, Inc., 3.80%, 4/19/23 | $ | 196,000 | $ | 194,527 | ||
Auto Components — 0.8% | ||||||
Lear Corp., 3.80%, 9/15/27 | 280,000 | 260,910 | ||||
Automobiles — 1.8% | ||||||
Ally Financial, Inc., 4.625%, 5/19/22 | 154,000 | 157,272 | ||||
General Motors Co., 4.875%, 10/2/23 | 252,000 | 260,254 | ||||
Harley-Davidson, Inc., 3.50%, 7/28/25 | 210,000 | 200,973 | ||||
618,499 | ||||||
Banks — 16.4% | ||||||
Bank of America Corp., VRN, 3.00%, 12/20/23 | 742,000 | 732,847 | ||||
Capital One Financial Corp., 3.50%, 6/15/23 | 742,000 | 734,942 | ||||
CIT Group, Inc., 5.00%, 8/1/23 | 154,000 | 160,008 | ||||
Citigroup, Inc., 4.05%, 7/30/22 | 714,000 | 728,322 | ||||
Huntington Bancshares, Inc., 2.30%, 1/14/22 | 742,000 | 724,674 | ||||
KeyCorp, MTN, 2.90%, 9/15/20 | 532,000 | 532,422 | ||||
Regions Financial Corp., 2.75%, 8/14/22 | 742,000 | 727,405 | ||||
SunTrust Bank, 2.45%, 8/1/22 | 560,000 | 548,867 | ||||
Wells Fargo & Co., 4.125%, 8/15/23 | 728,000 | 743,923 | ||||
5,633,410 | ||||||
Beverages — 2.0% | ||||||
Constellation Brands, Inc., 3.20%, 2/15/23 | 322,000 | 317,651 | ||||
Keurig Dr Pepper, Inc., 4.06%, 5/25/23(1) | 350,000 | 354,088 | ||||
671,739 | ||||||
Biotechnology — 1.8% | ||||||
Biogen, Inc., 3.625%, 9/15/22 | 322,000 | 326,842 | ||||
Celgene Corp., 2.875%, 8/15/20 | 280,000 | 279,286 | ||||
606,128 | ||||||
Building Products — 0.5% | ||||||
Masco Corp., 4.375%, 4/1/26 | 182,000 | 180,745 | ||||
Chemicals — 3.4% | ||||||
Celanese US Holdings LLC, 4.625%, 11/15/22 | 210,000 | 214,888 | ||||
Dow Chemical Co. (The), 3.00%, 11/15/22 | 266,000 | 263,987 | ||||
LYB International Finance BV, 4.00%, 7/15/23 | 350,000 | 353,037 | ||||
Rayonier AM Products, Inc., 5.50%, 6/1/24(1) | 154,000 | 143,309 | ||||
Westlake Chemical Corp., 3.60%, 8/15/26 | 224,000 | 211,784 | ||||
1,187,005 | ||||||
Construction and Engineering — 0.4% | ||||||
MasTec, Inc., 4.875%, 3/15/23 | 154,000 | 154,963 | ||||
Construction Materials — 0.6% | ||||||
Vulcan Materials Co., 4.50%, 4/1/25 | 210,000 | 213,723 |
10
Diversified Corporate Bond ETF | ||||||
Principal Amount | Value | |||||
Consumer Finance — 7.8% | ||||||
American Express Co., 2.50%, 8/1/22 | $ | 742,000 | $ | 727,092 | ||
Block Financial LLC, 5.50%, 11/1/22 | 252,000 | 262,169 | ||||
Discover Financial Services, 3.85%, 11/21/22 | 742,000 | 746,921 | ||||
S&P Global, Inc., 4.00%, 6/15/25 | 210,000 | 216,735 | ||||
Synchrony Financial, 3.75%, 8/15/21 | 742,000 | 744,117 | ||||
2,697,034 | ||||||
Containers and Packaging — 0.4% | ||||||
Berry Global, Inc., 5.125%, 7/15/23 | 140,000 | 140,700 | ||||
Packaging Corp. of America, 4.50%, 11/1/23 | 13,000 | 13,503 | ||||
154,203 | ||||||
Diversified Financial Services — 6.3% | ||||||
Goldman Sachs Group, Inc. (The), VRN, 2.91%, 6/5/23 | 742,000 | 728,531 | ||||
JPMorgan Chase & Co., 3.375%, 5/1/23 | 728,000 | 728,641 | ||||
Morgan Stanley, MTN, 4.10%, 5/22/23 | 714,000 | 726,363 | ||||
2,183,535 | ||||||
Diversified Telecommunication Services — 2.6% | ||||||
AT&T, Inc., 4.45%, 4/1/24 | 490,000 | 507,632 | ||||
Verizon Communications, Inc., 5.15%, 9/15/23 | 350,000 | 380,119 | ||||
887,751 | ||||||
Electric Utilities — 1.7% | ||||||
Edison International, 4.125%, 3/15/28 | 294,000 | 271,693 | ||||
Exelon Corp., 3.50%, 6/1/22 | 308,000 | 306,035 | ||||
577,728 | ||||||
Electronic Equipment, Instruments and Components — 0.8% | ||||||
Avnet, Inc., 4.625%, 4/15/26 | 294,000 | 292,615 | ||||
Entertainment — 1.5% | ||||||
Activision Blizzard, Inc., 2.30%, 9/15/21 | 532,000 | 520,380 | ||||
Equity Real Estate Investment Trusts (REITs) — 3.3% | ||||||
American Tower Corp., 3.50%, 1/31/23 | 518,000 | 517,972 | ||||
Boston Properties LP, 2.75%, 10/1/26 | 224,000 | 207,478 | ||||
SITE Centers Corp., 3.625%, 2/1/25 | 210,000 | 202,796 | ||||
Weyerhaeuser Co., 4.625%, 9/15/23 | 196,000 | 202,060 | ||||
1,130,306 | ||||||
Food Products — 2.0% | ||||||
Conagra Brands, Inc., 3.20%, 1/25/23 | 308,000 | 302,463 | ||||
JBS USA LUX SA / JBS USA Finance, Inc., 5.75%, 6/15/25(1) | 168,000 | 171,032 | ||||
Kraft Heinz Foods Co., 2.80%, 7/2/20 | 210,000 | 208,965 | ||||
682,460 | ||||||
Gas Utilities — 2.8% | ||||||
Andeavor Logistics LP / Tesoro Logistics Finance Corp., 5.25%, 1/15/25 | 392,000 | 399,010 | ||||
EQM Midstream Partners LP, 4.125%, 12/1/26 | 406,000 | 374,688 | ||||
Plains All American Pipeline LP / PAA Finance Corp., 5.75%, 1/15/20 | 196,000 | 200,088 | ||||
973,786 |
11
Diversified Corporate Bond ETF | ||||||
Principal Amount | Value | |||||
Health Care Equipment and Supplies — 2.2% | ||||||
Becton Dickinson and Co., 2.40%, 6/5/20 | $ | 336,000 | $ | 332,687 | ||
Boston Scientific Corp., 2.85%, 5/15/20 | 420,000 | 420,589 | ||||
753,276 | ||||||
Health Care Providers and Services — 4.0% | ||||||
AmerisourceBergen Corp., 3.50%, 11/15/21 | 322,000 | 323,849 | ||||
Anthem, Inc., 3.30%, 1/15/23 | 196,000 | 196,510 | ||||
Encompass Health Corp., 5.75%, 11/1/24 | 140,000 | 141,967 | ||||
Express Scripts Holding Co., 3.05%, 11/30/22 | 336,000 | 331,881 | ||||
MEDNAX, Inc., 5.25%, 12/1/23(1) | 168,000 | 170,310 | ||||
Universal Health Services, Inc., 4.75%, 8/1/22(1) | 210,000 | 212,625 | ||||
1,377,142 | ||||||
Hotels, Restaurants and Leisure — 2.2% | ||||||
Hyatt Hotels Corp., 4.85%, 3/15/26 | 210,000 | 216,815 | ||||
KFC Holding Co. / Pizza Hut Holdings LLC / Taco Bell of America LLC, 5.00%, 6/1/24(1) | 140,000 | 142,139 | ||||
Wyndham Destinations, Inc., 4.25%, 3/1/22 | 266,000 | 265,349 | ||||
Wyndham Hotels & Resorts, Inc., 5.375%, 4/15/26(1) | 140,000 | 142,331 | ||||
766,634 | ||||||
Household Durables — 1.2% | ||||||
Century Communities, Inc., 5.875%, 7/15/25 | 154,000 | 143,605 | ||||
DR Horton, Inc., 4.00%, 2/15/20 | 266,000 | 268,074 | ||||
411,679 | ||||||
Independent Power and Renewable Electricity Producers — 0.5% | ||||||
NRG Energy, Inc., 5.75%, 1/15/28 | 154,000 | 158,620 | ||||
Industrial Conglomerates — 0.9% | ||||||
Hasbro, Inc., 3.50%, 9/15/27 | 350,000 | 324,716 | ||||
Insurance — 3.0% | ||||||
Allstate Corp. (The), VRN, 5.75%, 8/15/53 | 182,000 | 184,088 | ||||
American International Group, Inc., 4.875%, 6/1/22 | 182,000 | 190,866 | ||||
International Lease Finance Corp., 5.875%, 8/15/22 | 252,000 | 268,106 | ||||
Prudential Financial, Inc., VRN, 5.625%, 6/15/43 | 182,000 | 189,012 | ||||
Voya Financial, Inc., 3.65%, 6/15/26 | 210,000 | 202,498 | ||||
1,034,570 | ||||||
Interactive Media and Services — 0.4% | ||||||
Match Group, Inc., 5.00%, 12/15/27(1) | 143,000 | 142,146 | ||||
Internet and Direct Marketing Retail — 0.8% | ||||||
Expedia Group, Inc., 3.80%, 2/15/28 | 280,000 | 265,010 | ||||
IT Services — 0.4% | ||||||
VeriSign, Inc., 4.625%, 5/1/23 | 140,000 | 142,738 | ||||
Media — 1.4% | ||||||
Charter Communications Operating LLC / Charter Communications Operating Capital, 3.58%, 7/23/20 | 336,000 | 337,627 | ||||
DISH DBS Corp., 5.125%, 5/1/20 | 140,000 | 142,026 | ||||
479,653 | ||||||
Metals and Mining — 2.3% | ||||||
Kinross Gold Corp., 4.50%, 7/15/27 | 392,000 | 367,990 |
12
Diversified Corporate Bond ETF | ||||||
Principal Amount | Value | |||||
Newmont Mining Corp., 3.50%, 3/15/22 | $ | 210,000 | $ | 211,126 | ||
Southern Copper Corp., 3.875%, 4/23/25 | 210,000 | 209,767 | ||||
788,883 | ||||||
Multi-Utilities — 1.7% | ||||||
Enel Americas SA, 4.00%, 10/25/26 | 308,000 | 301,840 | ||||
PSEG Power LLC, 3.00%, 6/15/21 | 280,000 | 277,481 | ||||
579,321 | ||||||
Oil, Gas and Consumable Fuels — 11.1% | ||||||
Anadarko Petroleum Corp., 4.85%, 3/15/21 | 378,000 | 388,553 | ||||
Carrizo Oil & Gas, Inc., 6.25%, 4/15/23 | 140,000 | 138,775 | ||||
Cenovus Energy, Inc., 3.00%, 8/15/22 | 406,000 | 392,670 | ||||
Cimarex Energy Co., 3.90%, 5/15/27 | 392,000 | 378,829 | ||||
Concho Resources, Inc., 4.375%, 1/15/25 | 392,000 | 397,617 | ||||
Hess Corp., 7.30%, 8/15/31 | 336,000 | 383,163 | ||||
HollyFrontier Corp., 5.875%, 4/1/26 | 364,000 | 384,218 | ||||
Peabody Energy Corp., 6.375%, 3/31/25(1) | 154,000 | 151,998 | ||||
Pioneer Natural Resources Co., 3.95%, 7/15/22 | 280,000 | 284,115 | ||||
Suburban Propane Partners LP / Suburban Energy Finance Corp., 5.50%, 6/1/24 | 140,000 | 138,950 | ||||
Valero Energy Corp., 7.50%, 4/15/32 | 294,000 | 365,704 | ||||
Williams Cos., Inc. (The), 4.30%, 3/4/24 | 392,000 | 401,258 | ||||
3,805,850 | ||||||
Paper and Forest Products — 0.6% | ||||||
Fibria Overseas Finance Ltd., 5.50%, 1/17/27 | 196,000 | 203,597 | ||||
Pharmaceuticals — 0.5% | ||||||
Teva Pharmaceutical Finance Netherlands III BV, 2.20%, 7/21/21 | 168,000 | 159,741 | ||||
Semiconductors and Semiconductor Equipment — 1.2% | ||||||
Broadcom Corp. / Broadcom Cayman Finance Ltd., 2.65%, 1/15/23 | 322,000 | 307,190 | ||||
Entegris, Inc., 4.625%, 2/10/26(1) | 125,000 | 123,438 | ||||
430,628 | ||||||
Software — 0.9% | ||||||
Citrix Systems, Inc., 4.50%, 12/1/27 | 308,000 | 295,479 | ||||
Specialty Retail — 1.2% | ||||||
Best Buy Co., Inc., 5.50%, 3/15/21 | 252,000 | 262,083 | ||||
United Rentals North America, Inc., 4.625%, 10/15/25 | 140,000 | 136,500 | ||||
398,583 | ||||||
Technology Hardware, Storage and Peripherals — 2.8% | ||||||
Dell International LLC / EMC Corp., 4.42%, 6/15/21(1) | 196,000 | 199,653 | ||||
Hewlett Packard Enterprise Co., 4.40%, 10/15/22 | 294,000 | 303,789 | ||||
j2 Cloud Services LLC / j2 Global Co-Obligor, Inc., 6.00%, 7/15/25(1) | 140,000 | 144,267 | ||||
Seagate HDD Cayman, 4.875%, 3/1/24 | 308,000 | 299,810 | ||||
947,519 | ||||||
Textiles, Apparel and Luxury Goods — 0.8% | ||||||
Tapestry, Inc., 4.25%, 4/1/25 | 280,000 | 271,949 | ||||
TOTAL CORPORATE BONDS (Cost $33,531,207) | 33,559,181 |
13
Diversified Corporate Bond ETF | |||||
Shares | Value | ||||
TEMPORARY CASH INVESTMENTS — 1.4% | |||||
State Street Institutional U.S. Government Money Market Fund, Premier Class (Cost $502,634) | 502,634 | $ | 502,634 | ||
TOTAL INVESTMENT SECURITIES — 99.0% (Cost $34,033,841) | 34,061,815 | ||||
OTHER ASSETS AND LIABILITIES — 1.0% | 332,099 | ||||
TOTAL NET ASSETS — 100.0% | $ | 34,393,914 |
FUTURES CONTRACTS SOLD | |||||||||||
Reference Entity | Contracts | Expiration Date | Notional Amount | Underlying Contract Value | Unrealized Appreciation (Depreciation) | ||||||
U.S. Treasury 5-Year Notes | 7 | June 2019 | $ | 700,000 | $ | 801,938 | $ | 2,281 |
NOTES TO SCHEDULE OF INVESTMENTS | ||
MTN | - | Medium Term Note |
VRN | - | Variable Rate Note. The rate adjusts periodically based upon the terms set forth in the security’s offering documents. The rate shown is effective at the period end and the reference rate and spread, if any, is indicated. |
(1) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration, normally to qualified institutional investors. The aggregate value of these securities at the period end was $2,097,336, which represented 6.1% of total net assets. |
See Notes to Financial Statements.
14
FEBRUARY 28, 2019 (UNAUDITED)
Diversified Municipal Bond ETF | ||||||
Principal Amount | Value | |||||
MUNICIPAL SECURITIES — 98.7% | ||||||
Alabama — 2.3% | ||||||
Southeast Alabama Gas Supply District Rev., VRDN, 4.00%, 4/1/24 | $ | 280,000 | $ | 295,263 | ||
Arizona — 3.5% | ||||||
Tempe Industrial Development Authority Rev., (Mirabella at ASU, Inc.), 4.00%, 10/1/23(1) | 440,000 | 441,993 | ||||
California — 2.9% | ||||||
California Statewide Communities Development Authority Rev., (Loma Linda University Medical Center Obligated Group), 5.25%, 12/1/38(1) | 240,000 | 263,318 | ||||
Morongo Band of Mission Indians Rev., 5.00%, 10/1/42(1) | 100,000 | 105,927 | ||||
369,245 | ||||||
Colorado — 2.3% | ||||||
City & County of Denver Rev., (United Airlines, Inc.), 5.00%, 10/1/32 | 180,000 | 191,365 | ||||
Denver Urban Renewal Authority Tax Allocation, 5.25%, 12/1/39(1) | 100,000 | 100,878 | ||||
292,243 | ||||||
Florida — 5.2% | ||||||
Greater Orlando Aviation Authority Rev., 5.00%, 10/1/33 | 180,000 | 206,818 | ||||
State of Florida GO, 5.00%, 6/1/21 | 420,000 | 451,446 | ||||
658,264 | ||||||
Hawaii — 2.1% | ||||||
City & County Honolulu Wastewater System Rev., 4.00%, 7/1/32 | 250,000 | 266,388 | ||||
Illinois — 12.7% | ||||||
Chicago GO, 5.00%, 1/1/40 | 280,000 | 283,192 | ||||
Chicago Board of Education GO, 5.00%, 12/1/34 | 280,000 | 291,858 | ||||
Illinois State Toll Highway Authority Rev., 5.00%, 1/1/37 | 325,000 | 363,837 | ||||
State of Illinois GO, 5.00%, 11/1/21 | 440,000 | 465,432 | ||||
State of Illinois GO, 5.00%, 11/1/29 | 180,000 | 192,908 | ||||
1,597,227 | ||||||
Iowa — 1.7% | ||||||
Iowa Finance Authority Rev., (Lifespace Communities, Inc. Obligated Group), 5.00%, 5/15/48 | 200,000 | 208,102 | ||||
Kentucky — 4.4% | ||||||
Kentucky Bond Development Corp. Rev., 5.00%, 9/1/38 | 250,000 | 282,422 | ||||
Kentucky Public Energy Authority Rev., VRDN, 4.00%, 1/1/25 | 250,000 | 268,418 | ||||
550,840 | ||||||
Louisiana — 2.2% | ||||||
New Orleans Aviation Board Rev., (Parking Facilities Corp.), 5.00%, 10/1/48 (AGM) | 250,000 | 280,300 | ||||
Maryland — 1.7% | ||||||
State of Maryland Department of Transportation Rev., 5.00%, 2/1/22 | 200,000 | 219,234 | ||||
Michigan — 5.5% | ||||||
Detroit Downtown Development Authority Tax Allocation, 5.00%, 7/1/23 (AGM) | 350,000 | 388,045 | ||||
Michigan Finance Authority Rev., (Trinity Health Corp. Obligated Group), 5.00%, 12/1/47 | 280,000 | 300,314 | ||||
688,359 |
15
Diversified Municipal Bond ETF | ||||||
Principal Amount | Value | |||||
Nebraska — 1.8% | ||||||
Omaha Public Power District Rev., 5.00%, 2/1/23 | $ | 200,000 | $ | 225,174 | ||
Nevada — 4.2% | ||||||
Clark County Department of Aviation Rev., 5.00%, 7/1/21 | 140,000 | 149,305 | ||||
State of Nevada Highway Improvement Rev., 4.00%, 12/1/33 | 350,000 | 378,490 | ||||
527,795 | ||||||
New Jersey — 10.6% | ||||||
New Jersey Economic Development Authority Rev., 5.50%, 6/15/30 | 260,000 | 296,959 | ||||
New Jersey Transportation Trust Fund Authority Rev., 5.00%, 6/15/22 | 440,000 | 475,745 | ||||
New Jersey Transportation Trust Fund Authority Rev., 5.00%, 12/15/28 | 250,000 | 285,805 | ||||
Tobacco Settlement Financing Corp. Rev., 5.00%, 6/1/46 | 280,000 | 283,912 | ||||
1,342,421 | ||||||
New York — 8.7% | ||||||
Build NYC Resource Corp. Rev., (Albert Einstein College of Medicine, Inc.), 5.50%, 9/1/45(1) | 100,000 | 106,573 | ||||
New York Liberty Development Corp. Rev., (3 World Trade Center LLC), 5.00%, 11/15/44(1) | 280,000 | 291,948 | ||||
New York Liberty Development Corp. Rev., (Goldman Sachs Headquarters LLC), 5.25%, 10/1/35 | 240,000 | 294,897 | ||||
New York Transportation Development Corp. Rev., (American Airlines, Inc.), 5.00%, 8/1/26 (GA: American Airlines Group) | 380,000 | 398,107 | ||||
1,091,525 | ||||||
Ohio — 5.7% | ||||||
Buckeye Tobacco Settlement Financing Authority Rev., 5.125%, 6/1/24 | 250,000 | 231,950 | ||||
Cuyahoga County Rev., (MetroHealth System), 5.00%, 2/15/42 | 360,000 | 380,315 | ||||
Ohio Higher Educational Facility Commission Rev., (Cleveland Institute of Art), 5.50%, 12/1/53 | 100,000 | 103,809 | ||||
716,074 | ||||||
Oregon — 0.8% | ||||||
Clackamas County Hospital Facility Authority Rev., (Willamette View, Inc.), 5.00%, 11/15/47 | 100,000 | 106,522 | ||||
Pennsylvania — 7.8% | ||||||
Pennsylvania GO, 5.00%, 7/1/20 | 400,000 | 417,160 | ||||
Pennsylvania Turnpike Commission Rev., 5.00%, 12/1/46 | 180,000 | 196,803 | ||||
School District of Philadelphia GO, 5.00%, 9/1/20 | 350,000 | 365,145 | ||||
979,108 | ||||||
Tennessee — 0.7% | ||||||
Tennessee Energy Acquisition Corp. Rev., VRDN, 4.00%, 11/1/25 | 85,000 | 90,069 | ||||
Texas — 4.5% | ||||||
Clifton Higher Education Finance Corp. Rev., (International American Education Federation, Inc.), 6.125%, 8/15/48 | 50,000 | 51,593 | ||||
New Hope Cultural Education Facilities Finance Corp. Rev., (CHF-Collegiate Housing Island Campus LLC), 5.00%, 4/1/27 | 40,000 | 40,609 | ||||
North Texas Tollway Authority Rev. (North Texas Tollway System, 5.00%, 1/1/26 | 420,000 | 477,645 | ||||
569,847 |
16
Diversified Municipal Bond ETF | ||||||
Principal Amount | Value | |||||
Virginia — 1.7% | ||||||
Peninsula Town Center Community Development Authority Special Assessment, 5.00%, 9/1/45(1) | $ | 200,000 | $ | 207,850 | ||
Washington — 3.1% | ||||||
State of Washington GO, 5.25%, 2/1/22 | 350,000 | 385,924 | ||||
Wisconsin — 2.6% | ||||||
Public Finance Authority Rev., (Ameream LLC), 7.00%, 12/1/50(1) | 100,000 | 112,580 | ||||
Public Finance Authority Rev., (Bancroft Neurohealth Obligated Group), 5.125%, 6/1/48(1) | 25,000 | 25,096 | ||||
Public Finance Authority Rev., (CHF-Wilmington LLC), 5.00%, 7/1/31 (AGM) | 75,000 | 85,979 | ||||
Public Finance Authority Rev., (Guilford College), 5.00%, 1/1/38 | 105,000 | 109,647 | ||||
333,302 | ||||||
TOTAL INVESTMENT SECURITIES — 98.7% (Cost $12,381,530) | 12,443,069 | |||||
OTHER ASSETS AND LIABILITIES — 1.3% | 169,175 | |||||
TOTAL NET ASSETS — 100.0% | $ | 12,612,244 |
NOTES TO SCHEDULE OF INVESTMENTS | ||
AGM | - | Assured Guaranty Municipal Corporation |
GA | - | Guaranty Agreement |
GO | - | General Obligation |
VRDN | - | Variable Rate Demand Note. The instrument may be payable upon demand and adjusts periodically based upon the terms set forth in the security's offering documents. The rate shown is effective at the period end and the reference rate and spread, if any, is indicated. The date of the demand feature is disclosed. |
(1) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from registration, normally to qualified institutional investors. The aggregate value of these securities at the period end was $1,656,163, which represented 13.1% of total net assets. |
See Notes to Financial Statements.
17
FEBRUARY 28, 2019 (UNAUDITED)
Quality Diversified International ETF | |||||
Shares | Value | ||||
COMMON STOCKS — 99.5% | |||||
Australia — 5.3% | |||||
Alumina Ltd. | 6,167 | $ | 11,188 | ||
Aristocrat Leisure Ltd. | 3,486 | 61,060 | |||
BlueScope Steel Ltd. | 2,268 | 21,719 | |||
CIMIC Group Ltd. | 630 | 22,478 | |||
Coca-Cola Amatil Ltd. | 3,087 | 17,504 | |||
Cochlear Ltd. | 147 | 17,831 | |||
CSL Ltd. | 532 | 73,337 | |||
Fortescue Metals Group Ltd. | 6,370 | 27,464 | |||
Goodman Group | 1,827 | 16,638 | |||
Macquarie Group Ltd. | 658 | 60,221 | |||
Medibank Pvt Ltd. | 5,684 | 11,485 | |||
Mirvac Group | 83,881 | 153,370 | |||
Qantas Airways Ltd. | 6,874 | 28,023 | |||
Ramsay Health Care Ltd. | 469 | 21,615 | |||
Scentre Group | 7,000 | 19,273 | |||
Sonic Healthcare Ltd. | 2,044 | 35,075 | |||
Telstra Corp. Ltd. | 8,701 | 19,376 | |||
Wesfarmers Ltd. | 3,227 | 76,176 | |||
Woolworths Group Ltd. | 476 | 9,709 | |||
703,542 | |||||
Austria — 0.9% | |||||
ANDRITZ AG | 385 | 19,246 | |||
OMV AG | 623 | 32,824 | |||
Raiffeisen Bank International AG | 2,422 | 61,833 | |||
113,903 | |||||
Belgium — 0.7% | |||||
Ageas | 399 | 19,687 | |||
Colruyt SA | 154 | 10,995 | |||
Proximus SADP | 672 | 17,776 | |||
Telenet Group Holding NV | 609 | 27,517 | |||
UCB SA | 224 | 18,793 | |||
94,768 | |||||
Canada — 5.5% | |||||
Air Canada(1) | 1,400 | 35,197 | |||
CAE, Inc. | 700 | 14,750 | |||
Canadian Pacific Railway Ltd. | 700 | 144,529 | |||
Canadian Tire Corp. Ltd., Class A | 700 | 77,175 | |||
CGI, Inc.(1) | 700 | 46,895 | |||
Dollarama, Inc. | 700 | 18,932 | |||
Empire Co. Ltd., Class A | 1,400 | 32,497 | |||
H&R Real Estate Investment Trust | 8,400 | 144,847 | |||
Husky Energy, Inc. | 1,400 | 15,552 | |||
Kirkland Lake Gold Ltd. | 700 | 25,576 |
18
Quality Diversified International ETF | |||||
Shares | Value | ||||
Manulife Financial Corp. | 1,400 | $ | 23,642 | ||
Methanex Corp. | 700 | 39,369 | |||
Royal Bank of Canada | 700 | 54,666 | |||
Teck Resources Ltd., Class B | 700 | 15,674 | |||
Toronto-Dominion Bank (The) | 700 | 40,108 | |||
729,409 | |||||
China — 4.1% | |||||
Anhui Conch Cement Co. Ltd., H Shares | 10,500 | 60,059 | |||
ANTA Sports Products Ltd. | 7,000 | 41,020 | |||
Autohome, Inc. ADR(1) | 700 | 65,835 | |||
China Communications Services Corp. Ltd., H Shares | 42,000 | 42,215 | |||
China Resources Gas Group Ltd. | 14,000 | 60,817 | |||
CSPC Pharmaceutical Group Ltd. | 28,000 | 47,797 | |||
Huazhu Group Ltd. ADR | 700 | 24,549 | |||
Kunlun Energy Co. Ltd. | 28,000 | 30,747 | |||
Shenzhou International Group Holdings Ltd. | 7,000 | 87,391 | |||
Sino Biopharmaceutical Ltd. | 28,000 | 24,291 | |||
Tencent Holdings Ltd. | 1,400 | 59,890 | |||
544,611 | |||||
Denmark — 1.5% | |||||
Carlsberg A/S, B Shares | 203 | 24,618 | |||
Chr Hansen Holding A/S | 126 | 12,849 | |||
DSV A/S | 392 | 32,641 | |||
GN Store Nord A/S | 287 | 13,846 | |||
H Lundbeck A/S | 700 | 32,050 | |||
Novo Nordisk A/S, B Shares | 1,470 | 72,207 | |||
Pandora A/S | 343 | 18,018 | |||
206,229 | |||||
Finland — 1.4% | |||||
Elisa Oyj | 273 | 11,468 | |||
Fortum Oyj | 511 | 11,358 | |||
Metso Oyj | 651 | 22,098 | |||
Neste Oyj | 644 | 61,966 | |||
Nokian Renkaat Oyj | 315 | 11,155 | |||
Stora Enso Oyj R Shares | 2,247 | 30,154 | |||
UPM-Kymmene Oyj | 1,127 | 34,033 | |||
182,232 | |||||
France — 9.0% | |||||
Arkema SA | 301 | 30,381 | |||
Atos SE | 658 | 63,253 | |||
Bouygues SA | 483 | 18,287 | |||
CNP Assurances | 812 | 18,788 | |||
Danone SA | 252 | 19,034 | |||
Engie SA | 1,379 | 20,806 | |||
Faurecia SA | 476 | 22,732 | |||
Hermes International | 182 | 115,393 |
19
Quality Diversified International ETF | |||||
Shares | Value | ||||
Ipsen SA | 322 | $ | 44,586 | ||
Kering SA | 182 | 99,498 | |||
L'Oreal SA | 42 | 10,612 | |||
LVMH Moet Hennessy Louis Vuitton SE | 42 | 14,443 | |||
Orange SA | 1,085 | 16,605 | |||
Pernod Ricard SA | 77 | 13,275 | |||
Peugeot SA | 6,391 | 162,723 | |||
Publicis Groupe SA | 2,198 | 121,965 | |||
Remy Cointreau SA | 84 | 10,952 | |||
Safran SA | 91 | 12,424 | |||
Sanofi | 2,471 | 206,809 | |||
Sartorius Stedim Biotech | 231 | 27,225 | |||
Schneider Electric SE | 259 | 20,179 | |||
SCOR SE | 210 | 9,467 | |||
Sodexo SA | 182 | 20,016 | |||
Teleperformance | 63 | 11,263 | |||
Thales SA | 84 | 10,354 | |||
TOTAL SA | 336 | 19,126 | |||
Ubisoft Entertainment SA(1) | 490 | 35,431 | |||
Vinci SA | 210 | 20,068 | |||
1,195,695 | |||||
Germany — 4.1% | |||||
adidas AG | 56 | 13,621 | |||
Deutsche Boerse AG | 77 | 9,741 | |||
Deutsche Lufthansa AG | 4,585 | 117,210 | |||
Deutsche Telekom AG | 1,631 | 26,902 | |||
Evonik Industries AG | 2,947 | 83,055 | |||
FUCHS PETROLUB SE Preference Shares | 245 | 10,964 | |||
GEA Group AG | 686 | 16,459 | |||
HUGO BOSS AG | 266 | 19,694 | |||
MTU Aero Engines AG | 56 | 12,020 | |||
Muenchener Rueckversicherungs-Gesellschaft AG | 749 | 176,633 | |||
ProSiebenSat.1 Media SE | 1,834 | 33,497 | |||
Sartorius AG Preference Shares | 77 | 12,223 | |||
Wacker Chemie AG | 196 | 20,100 | |||
552,119 | |||||
Hong Kong — 1.6% | |||||
CK Infrastructure Holdings Ltd. | 3,500 | 29,182 | |||
HKT Trust & HKT Ltd. | 21,000 | 32,798 | |||
Link REIT | 10,500 | 118,713 | |||
Wynn Macau Ltd. | 11,200 | 27,680 | |||
208,373 | |||||
Ireland — 0.2% | |||||
Glanbia plc | 693 | 14,070 | |||
Smurfit Kappa Group plc | 686 | 19,482 | |||
33,552 |
20
Quality Diversified International ETF | |||||
Shares | Value | ||||
Israel — 1.1% | |||||
Bank Hapoalim BM | 4,193 | $ | 28,874 | ||
Bank Leumi Le-Israel BM | 4,753 | 31,445 | |||
Mizrahi Tefahot Bank Ltd. | 553 | 10,596 | |||
Teva Pharmaceutical Industries Ltd.(1) | 4,305 | 73,311 | |||
144,226 | |||||
Italy — 3.0% | |||||
Davide Campari-Milano SpA | 1,323 | 12,632 | |||
DiaSorin SpA | 119 | 11,687 | |||
Enel SpA | 3,430 | 20,779 | |||
Eni SpA | 11,200 | 193,419 | |||
EXOR NV | 315 | 19,405 | |||
Fiat Chrysler Automobiles NV(1) | 1,890 | 27,939 | |||
Mediobanca Banca di Credito Finanziario SpA | 5,222 | 52,458 | |||
Moncler SpA | 924 | 35,479 | |||
Recordati SpA | 315 | 11,862 | |||
Terna Rete Elettrica Nazionale SpA | 1,799 | 11,201 | |||
396,861 | |||||
Japan — 22.6% | |||||
Advantest Corp. | 700 | 16,532 | |||
Alfresa Holdings Corp. | 700 | 20,279 | |||
Alps Alpine Co. Ltd. | 700 | 13,752 | |||
ANA Holdings, Inc. | 700 | 25,983 | |||
Asahi Intecc Co. Ltd. | 700 | 33,642 | |||
Asahi Kasei Corp. | 2,800 | 30,535 | |||
Astellas Pharma, Inc. | 13,300 | 205,318 | |||
Bandai Namco Holdings, Inc. | 700 | 29,806 | |||
Brother Industries Ltd. | 2,100 | 38,389 | |||
Canon, Inc. | 700 | 20,128 | |||
Chugai Pharmaceutical Co. Ltd. | 1,400 | 95,203 | |||
CyberAgent, Inc. | 700 | 21,788 | |||
Daiwa House Industry Co. Ltd. | 700 | 21,663 | |||
Fuji Electric Co. Ltd. | 700 | 22,009 | |||
FUJIFILM Holdings Corp. | 700 | 31,384 | |||
Fujitsu Ltd. | 700 | 47,218 | |||
Hitachi Construction Machinery Co. Ltd. | 700 | 17,475 | |||
Hitachi High-Technologies Corp. | 700 | 26,630 | |||
Hitachi Ltd. | 700 | 20,971 | |||
Honda Motor Co. Ltd. | 700 | 19,827 | |||
Hoya Corp. | 1,400 | 85,582 | |||
Isuzu Motors Ltd. | 700 | 10,033 | |||
ITOCHU Corp. | 1,400 | 25,128 | |||
Japan Airlines Co. Ltd. | 700 | 25,561 | |||
Japan Tobacco, Inc. | 8,400 | 213,773 | |||
JXTG Holdings, Inc. | 2,800 | 13,097 | |||
Kajima Corp. | 1,400 | 20,726 |
21
Quality Diversified International ETF | |||||
Shares | Value | ||||
KDDI Corp. | 700 | $ | 16,906 | ||
Kikkoman Corp. | 700 | 34,836 | |||
Kirin Holdings Co. Ltd. | 700 | 15,651 | |||
Komatsu Ltd. | 700 | 17,173 | |||
Konami Holdings Corp. | 700 | 28,894 | |||
Konica Minolta, Inc. | 2,100 | 20,374 | |||
Kubota Corp. | 1,400 | 18,896 | |||
Kuraray Co. Ltd. | 1,400 | 18,789 | |||
Kyocera Corp. | 700 | 38,616 | |||
Lion Corp. | 1,400 | 28,712 | |||
Marubeni Corp. | 2,800 | 19,989 | |||
Medipal Holdings Corp. | 700 | 16,324 | |||
Mitsubishi Chemical Holdings Corp. | 13,300 | 98,197 | |||
Mitsubishi Corp. | 700 | 19,739 | |||
Mitsubishi Tanabe Pharma Corp. | 1,400 | 20,198 | |||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 3,500 | 17,827 | |||
Mitsui & Co. Ltd. | 1,400 | 22,009 | |||
MonotaRO Co. Ltd. | 700 | 16,513 | |||
NEC Corp. | 4,900 | 163,524 | |||
Nexon Co. Ltd.(1) | 700 | 11,111 | |||
Nikon Corp. | 1,400 | 21,204 | |||
Nippon Telegraph & Telephone Corp. | 700 | 30,189 | |||
Nissan Chemical Corp. | 700 | 35,340 | |||
NTT DOCOMO, Inc. | 700 | 16,296 | |||
Obayashi Corp. | 2,100 | 20,468 | |||
Ono Pharmaceutical Co. Ltd. | 700 | 14,390 | |||
ORIX Corp. | 1,400 | 20,273 | |||
Persol Holdings Co. Ltd. | 700 | 11,998 | |||
Pigeon Corp. | 700 | 28,548 | |||
Pola Orbis Holdings, Inc. | 700 | 19,651 | |||
Recruit Holdings Co. Ltd. | 2,800 | 78,326 | |||
Relo Group, Inc. | 700 | 18,261 | |||
Resona Holdings, Inc. | 3,500 | 15,824 | |||
Ricoh Co. Ltd. | 2,100 | 21,317 | |||
SBI Holdings, Inc. | 700 | 14,739 | |||
SCSK Corp. | 700 | 30,623 | |||
Sekisui Chemical Co. Ltd. | 1,400 | 21,971 | |||
Shimadzu Corp. | 700 | 17,261 | |||
Shimizu Corp. | 2,100 | 18,449 | |||
Showa Denko KK | 700 | 26,064 | |||
Showa Shell Sekiyu KK | 2,100 | 31,504 | |||
Sony Corp. | 700 | 33,585 | |||
Sony Financial Holdings, Inc. | 700 | 13,237 | |||
Subaru Corp. | 700 | 17,774 | |||
SUMCO Corp. | 1,400 | 17,770 | |||
Sumitomo Chemical Co. Ltd. | 11,900 | 59,008 |
22
Quality Diversified International ETF | |||||
Shares | Value | ||||
Sumitomo Corp. | 5,600 | $ | 80,514 | ||
Sumitomo Mitsui Financial Group, Inc. | 700 | 24,788 | |||
Sumitomo Mitsui Trust Holdings, Inc. | 700 | 26,530 | |||
Suntory Beverage & Food Ltd. | 700 | 30,875 | |||
Suzuki Motor Corp. | 2,100 | 107,547 | |||
Taisei Corp. | 700 | 33,076 | |||
Takeda Pharmaceutical Co., Ltd. | 1,400 | 56,204 | |||
Tokyo Electron Ltd. | 700 | 95,266 | |||
Tosoh Corp. | 2,800 | 41,326 | |||
Unicharm Corp. | 700 | 22,292 | |||
Yamato Holdings Co. Ltd. | 700 | 18,229 | |||
ZOZO, Inc. | 700 | 13,180 | |||
3,000,607 | |||||
Netherlands — 4.7% | |||||
ASML Holding NV | 427 | 78,341 | |||
ING Groep NV | 1,540 | 20,398 | |||
Koninklijke Ahold Delhaize NV | 6,426 | 165,920 | |||
Koninklijke DSM NV | 112 | 12,039 | |||
Koninklijke Philips NV | 3,640 | 145,070 | |||
Randstad NV | 385 | 20,583 | |||
Unilever NV CVA | 2,583 | 139,901 | |||
Wolters Kluwer NV | 756 | 49,912 | |||
632,164 | |||||
New Zealand — 0.2% | |||||
a2 Milk Co. Ltd.(1) | 2,807 | 27,499 | |||
Norway — 1.5% | |||||
Aker BP ASA | 1,064 | 36,104 | |||
DNB ASA | 1,085 | 20,820 | |||
Equinor ASA | 1,253 | 28,201 | |||
Mowi ASA | 1,393 | 32,175 | |||
Norsk Hydro ASA | 6,083 | 25,225 | |||
Orkla ASA | 2,254 | 17,781 | |||
Telenor ASA | 1,806 | 35,258 | |||
195,564 | |||||
Portugal — 0.3% | |||||
Galp Energia SGPS SA | 644 | 10,582 | |||
Jeronimo Martins SGPS SA | 1,561 | 23,552 | |||
34,134 | |||||
Singapore — 0.7% | |||||
DBS Group Holdings Ltd. | 1,400 | 25,737 | |||
Jardine Cycle & Carriage Ltd. | 700 | 17,272 | |||
Singapore Airlines Ltd. | 2,800 | 20,743 | |||
Singapore Exchange Ltd. | 2,100 | 12,185 | |||
Singapore Technologies Engineering Ltd. | 7,000 | 19,375 | |||
95,312 |
23
Quality Diversified International ETF | |||||
Shares | Value | ||||
South Korea — 1.4% | |||||
Celltrion, Inc.(1) | 245 | $ | 44,547 | ||
Coway Co. Ltd. | 175 | 14,720 | |||
LG Household & Health Care Ltd. | 63 | 69,795 | |||
SK Hynix, Inc. | 868 | 54,023 | |||
183,085 | |||||
Spain — 3.1% | |||||
ACS Actividades de Construccion y Servicios SA | 2,030 | 90,105 | |||
Aena SME SA | 63 | 11,256 | |||
Amadeus IT Group SA | 448 | 33,771 | |||
Banco Bilbao Vizcaya Argentaria SA | 3,276 | 20,420 | |||
Banco Santander SA | 3,927 | 19,210 | |||
Bankinter SA | 1,316 | 10,822 | |||
CaixaBank SA | 4,522 | 16,148 | |||
Mapfre SA | 6,860 | 19,404 | |||
Repsol SA | 10,346 | 178,188 | |||
Telefonica SA | 2,072 | 17,905 | |||
417,229 | |||||
Sweden — 3.3% | |||||
Alfa Laval AB | 469 | 10,263 | |||
Atlas Copco AB, A Shares | 413 | 11,197 | |||
Boliden AB | 833 | 22,809 | |||
Electrolux AB, Series B | 1,001 | 26,211 | |||
Elekta AB, B Shares | 2,450 | 28,227 | |||
Hennes & Mauritz AB, B Shares | 1,008 | 15,264 | |||
Hexagon AB, B Shares | 203 | 10,684 | |||
Kinnevik AB, B Shares | 735 | 18,632 | |||
Lundin Petroleum AB | 385 | 12,596 | |||
Millicom International Cellular SA | 266 | 16,022 | |||
Nibe Industrier AB, B Shares | 966 | 12,092 | |||
Sandvik AB | 1,946 | 31,992 | |||
Skanska AB, B Shares | 1,183 | 21,351 | |||
SKF AB, B Shares | 4,711 | 79,336 | |||
Svenska Cellulosa AB SCA, B Shares | 1,246 | 11,495 | |||
Swedish Match AB | 770 | 36,120 | |||
Swedish Orphan Biovitrum AB(1) | 931 | 20,243 | |||
Telefonaktiebolaget LM Ericsson, B Shares | 1,211 | 11,091 | |||
Volvo AB, B Shares | 3,143 | 46,307 | |||
441,932 | |||||
Switzerland — 7.0% | |||||
ABB Ltd. | 917 | 18,194 | |||
Adecco Group AG | 378 | 19,678 | |||
Baloise Holding AG | 126 | 20,616 | |||
Barry Callebaut AG | 7 | 12,079 | |||
EMS-Chemie Holding AG | 98 | 56,713 | |||
Flughafen Zurich AG | 63 | 11,244 |
24
Quality Diversified International ETF | |||||
Shares | Value | ||||
Givaudan SA | 7 | $ | 17,546 | ||
Helvetia Holding AG | 14 | 8,418 | |||
Kuehne + Nagel International AG | 70 | 9,152 | |||
Logitech International SA | 413 | 15,559 | |||
Nestle SA | 336 | 30,477 | |||
Novartis AG | 203 | 18,552 | |||
Pargesa Holding SA | 1,757 | 144,624 | |||
Partners Group Holding AG | 168 | 121,759 | |||
Roche Holding AG | 364 | 101,322 | |||
SGS SA | 7 | 17,883 | |||
Sika AG | 84 | 11,383 | |||
Sonova Holding AG | 175 | 32,788 | |||
Straumann Holding AG | 63 | 49,264 | |||
Swiss Life Holding AG(1) | 49 | 21,396 | |||
Swiss Re AG | 1,617 | 160,401 | |||
Temenos AG(1) | 84 | 12,201 | |||
Zurich Insurance Group AG | 56 | 18,550 | |||
929,799 | |||||
Taiwan — 1.2% | |||||
President Chain Store Corp. | 7,000 | 72,442 | |||
Uni-President Enterprises Corp. | 35,000 | 85,292 | |||
157,734 | |||||
United Kingdom — 15.1% | |||||
Admiral Group plc | 462 | 13,409 | |||
Anglo American plc | 1,519 | 40,479 | |||
Ashtead Group plc | 2,240 | 59,678 | |||
Associated British Foods plc | 602 | 17,960 | |||
Auto Trader Group plc | 2,016 | 12,756 | |||
BAE Systems plc | 22,876 | 141,792 | |||
Barclays plc | 8,946 | 19,534 | |||
Barratt Developments plc | 12,628 | 100,611 | |||
Berkeley Group Holdings plc | 700 | 36,777 | |||
BHP Group plc | 525 | 12,192 | |||
BP plc | 2,807 | 19,952 | |||
BT Group plc | 5,579 | 15,932 | |||
Carnival plc | 322 | 18,057 | |||
Centrica plc | 10,871 | 18,002 | |||
Coca-Cola HBC AG(1) | 966 | 32,585 | |||
Compass Group plc | 546 | 12,092 | |||
Croda International plc | 189 | 12,094 | |||
Diageo plc | 1,379 | 53,440 | |||
easyJet plc | 2,023 | 33,030 | |||
Evraz plc | 8,414 | 63,187 | |||
Experian plc | 483 | 12,614 | |||
Ferguson plc | 294 | 20,417 | |||
GlaxoSmithKline plc | 1,001 | 19,937 |
25
Quality Diversified International ETF | |||||
Shares | Value | ||||
Glencore plc(1) | 5,033 | $ | 20,348 | ||
Halma plc | 665 | 13,745 | |||
Hargreaves Lansdown plc | 2,485 | 57,578 | |||
Hikma Pharmaceuticals plc | 441 | 9,787 | |||
Imperial Brands plc | 931 | 31,088 | |||
InterContinental Hotels Group plc | 1,477 | 88,592 | |||
International Consolidated Airlines Group SA | 3,717 | 29,614 | |||
Intertek Group plc | 182 | 12,312 | |||
ITV plc | 10,052 | 17,528 | |||
Kingfisher plc | 5,838 | 18,799 | |||
Land Securities Group plc | 1,792 | 21,442 | |||
Lloyds Banking Group plc | 258,195 | 218,212 | |||
London Stock Exchange Group plc | 196 | 11,750 | |||
Marks & Spencer Group plc | 24,955 | 90,616 | |||
Meggitt plc | 2,821 | 20,232 | |||
Mondi plc | 462 | 10,622 | |||
Next plc | 462 | 31,266 | |||
Persimmon plc | 1,183 | 38,283 | |||
Rightmove plc | 10,801 | 69,261 | |||
Rio Tinto plc | 245 | 14,130 | |||
Royal Dutch Shell plc, A Shares | 973 | 30,391 | |||
Smith & Nephew plc | 1,022 | 19,527 | |||
Spirax-Sarco Engineering plc | 147 | 13,032 | |||
Tate & Lyle plc | 7,196 | 66,521 | |||
Taylor Wimpey plc | 32,613 | 78,689 | |||
Tesco plc | 22,778 | 68,471 | |||
TUI AG | 1,309 | 13,932 | |||
Vodafone Group plc | 9,457 | 16,891 | |||
WM Morrison Supermarkets plc | 6,223 | 19,046 | |||
WPP plc | 6,846 | 75,196 | |||
2,013,428 | |||||
TOTAL COMMON STOCKS (Cost $12,879,571) | 13,234,007 | ||||
TEMPORARY CASH INVESTMENTS — 0.3% | |||||
State Street Institutional U.S. Government Money Market Fund, Premier Class (Cost $35,029) | 35,029 | 35,029 | |||
TOTAL INVESTMENT SECURITIES — 99.8% (Cost $12,914,600) | 13,269,036 | ||||
OTHER ASSETS AND LIABILITIES — 0.2% | 26,960 | ||||
TOTAL NET ASSETS — 100.0% | $ | 13,295,996 |
26
Quality Diversified International ETF | ||
MARKET SECTOR DIVERSIFICATION | ||
(as a % of net assets) | ||
Industrials | 15.0 | % |
Consumer Discretionary | 14.0 | % |
Health Care | 13.4 | % |
Financials | 13.1 | % |
Consumer Staples | 11.4 | % |
Materials | 7.9 | % |
Information Technology | 7.5 | % |
Communication Services | 6.6 | % |
Energy | 5.3 | % |
Real Estate | 3.9 | % |
Utilities | 1.4 | % |
Cash and Equivalents* | 0.5 | % |
* Includes temporary cash investments and other assets and liabilities.
NOTES TO SCHEDULE OF INVESTMENTS | ||
ADR | - | American Depositary Receipt |
CVA | - | Certificaten Van Aandelen |
(1) | Non-income producing. |
See Notes to Financial Statements.
27
FEBRUARY 28, 2019 (UNAUDITED)
STOXX® U.S. Quality Growth ETF | |||||
Shares | Value | ||||
COMMON STOCKS — 99.7% | |||||
Aerospace and Defense — 3.0% | |||||
Boeing Co. (The) | 532 | $ | 234,059 | ||
Curtiss-Wright Corp. | 140 | 17,261 | |||
Huntington Ingalls Industries, Inc. | 84 | 17,591 | |||
Spirit AeroSystems Holdings, Inc., Class A | 1,274 | 125,884 | |||
Textron, Inc. | 308 | 16,727 | |||
411,522 | |||||
Air Freight and Logistics — 0.2% | |||||
CH Robinson Worldwide, Inc. | 182 | 16,449 | |||
Expeditors International of Washington, Inc. | 224 | 16,789 | |||
33,238 | |||||
Airlines — 1.4% | |||||
Delta Air Lines, Inc. | 336 | 16,659 | |||
Southwest Airlines Co. | 3,220 | 180,449 | |||
197,108 | |||||
Beverages — 1.6% | |||||
Monster Beverage Corp.(1) | 3,542 | 226,086 | |||
Biotechnology — 7.3% | |||||
Biogen, Inc.(1) | 630 | 206,646 | |||
Celgene Corp.(1) | 1,932 | 160,607 | |||
Exelixis, Inc.(1) | 2,408 | 53,915 | |||
Incyte Corp.(1) | 1,218 | 105,040 | |||
Regeneron Pharmaceuticals, Inc.(1) | 406 | 174,881 | |||
Vertex Pharmaceuticals, Inc.(1) | 1,694 | 319,743 | |||
1,020,832 | |||||
Building Products — 0.4% | |||||
Allegion plc | 196 | 17,632 | |||
Lennox International, Inc. | 70 | 17,167 | |||
Trex Co., Inc.(1) | 224 | 16,789 | |||
51,588 | |||||
Capital Markets — 3.8% | |||||
Charles Schwab Corp. (The) | 378 | 17,392 | |||
Evercore, Inc., Class A | 378 | 34,814 | |||
LPL Financial Holdings, Inc. | 1,120 | 84,459 | |||
MarketAxess Holdings, Inc. | 728 | 177,544 | |||
Moody's Corp. | 98 | 16,966 | |||
MSCI, Inc. | 882 | 162,923 | |||
SEI Investments Co. | 322 | 16,985 | |||
TD Ameritrade Holding Corp. | 308 | 17,353 | |||
528,436 | |||||
Chemicals — 0.6% | |||||
Air Products & Chemicals, Inc. | 98 | 17,756 | |||
Axalta Coating Systems Ltd.(1) | 644 | 17,221 | |||
Ingevity Corp.(1) | 154 | 17,745 |
28
STOXX® U.S. Quality Growth ETF | |||||
Shares | Value | ||||
Olin Corp. | 1,344 | $ | 34,769 | ||
87,491 | |||||
Commercial Services and Supplies — 1.5% | |||||
Cintas Corp. | 1,008 | 208,253 | |||
Communications Equipment — 1.9% | |||||
Arista Networks, Inc.(1) | 308 | 87,857 | |||
Ciena Corp.(1) | 392 | 16,726 | |||
Cisco Systems, Inc. | 350 | 18,123 | |||
F5 Networks, Inc.(1) | 798 | 134,176 | |||
256,882 | |||||
Construction Materials — 0.7% | |||||
Vulcan Materials Co. | 924 | 102,989 | |||
Consumer Finance — 0.2% | |||||
Green Dot Corp., Class A(1) | 504 | 32,538 | |||
Containers and Packaging — 0.1% | |||||
Sonoco Products Co. | 294 | 17,023 | |||
Diversified Consumer Services — 0.1% | |||||
Bright Horizons Family Solutions, Inc.(1) | 140 | 17,360 | |||
Electric Utilities — 0.3% | |||||
IDACORP, Inc. | 168 | 16,533 | |||
NextEra Energy, Inc. | 98 | 18,396 | |||
34,929 | |||||
Electrical Equipment — 0.2% | |||||
Acuity Brands, Inc. | 126 | 16,396 | |||
Rockwell Automation, Inc. | 98 | 17,500 | |||
33,896 | |||||
Electronic Equipment, Instruments and Components — 0.5% | |||||
Cognex Corp. | 336 | 17,946 | |||
Dolby Laboratories, Inc., Class A | 266 | 17,239 | |||
National Instruments Corp. | 364 | 17,013 | |||
Zebra Technologies Corp., Class A(1) | 84 | 16,843 | |||
69,041 | |||||
Entertainment — 1.0% | |||||
Netflix, Inc.(1) | 336 | 120,325 | |||
Take-Two Interactive Software, Inc.(1) | 196 | 17,103 | |||
137,428 | |||||
Equity Real Estate Investment Trusts (REITs) — 1.5% | |||||
American Tower Corp. | 770 | 135,643 | |||
Crown Castle International Corp. | 140 | 16,625 | |||
Equinix, Inc. | 42 | 17,787 | |||
Lamar Advertising Co., Class A | 224 | 17,378 | |||
SBA Communications Corp.(1) | 98 | 17,696 | |||
205,129 | |||||
Food and Staples Retailing — 0.1% | |||||
US Foods Holding Corp.(1) | 490 | 17,268 |
29
STOXX® U.S. Quality Growth ETF | |||||
Shares | Value | ||||
Health Care Equipment and Supplies — 4.0% | |||||
ABIOMED, Inc.(1) | 266 | $ | 88,977 | ||
Align Technology, Inc.(1) | 546 | 141,398 | |||
Baxter International, Inc. | 462 | 34,525 | |||
Boston Scientific Corp.(1) | 420 | 16,854 | |||
Edwards Lifesciences Corp.(1) | 196 | 33,181 | |||
ICU Medical, Inc.(1) | 70 | 17,204 | |||
IDEXX Laboratories, Inc.(1) | 728 | 153,630 | |||
Masimo Corp.(1) | 140 | 18,379 | |||
Stryker Corp. | 98 | 18,475 | |||
Teleflex, Inc. | 56 | 16,232 | |||
West Pharmaceutical Services, Inc. | 168 | 17,598 | |||
556,453 | |||||
Health Care Providers and Services — 2.5% | |||||
Chemed Corp. | 266 | 87,647 | |||
HCA Healthcare, Inc. | 126 | 17,520 | |||
HealthEquity, Inc.(1) | 434 | 34,928 | |||
Humana, Inc. | 56 | 15,962 | |||
Universal Health Services, Inc., Class B | 1,260 | 174,926 | |||
WellCare Health Plans, Inc.(1) | 56 | 14,201 | |||
345,184 | |||||
Health Care Technology — 1.9% | |||||
Cerner Corp.(1) | 2,982 | 166,843 | |||
Medidata Solutions, Inc.(1) | 224 | 16,804 | |||
Veeva Systems, Inc., Class A(1) | 728 | 85,839 | |||
269,486 | |||||
Hotels, Restaurants and Leisure — 4.8% | |||||
Chipotle Mexican Grill, Inc.(1) | 230 | 139,732 | |||
Darden Restaurants, Inc. | 154 | 17,265 | |||
Domino's Pizza, Inc. | 70 | 17,566 | |||
Planet Fitness, Inc., Class A(1) | 588 | 34,563 | |||
Starbucks Corp. | 3,626 | 254,763 | |||
Texas Roadhouse, Inc. | 546 | 34,567 | |||
Wendy's Co. (The) | 8,750 | 151,637 | |||
Yum China Holdings, Inc. | 420 | 17,522 | |||
667,615 | |||||
Household Durables — 1.0% | |||||
NVR, Inc.(1) | 51 | 133,620 | |||
Interactive Media and Services — 2.3% | |||||
Alphabet, Inc., Class C(1) | 16 | 17,919 | |||
Facebook, Inc., Class A(1) | 1,176 | 189,865 | |||
IAC/InterActiveCorp(1) | 546 | 116,325 | |||
324,109 | |||||
Internet and Direct Marketing Retail — 1.9% | |||||
Amazon.com, Inc.(1) | 106 | 173,822 | |||
Booking Holdings, Inc.(1) | 18 | 30,547 |
30
STOXX® U.S. Quality Growth ETF | |||||
Shares | Value | ||||
eBay, Inc. | 462 | $ | 17,168 | ||
Etsy, Inc.(1) | 602 | 42,904 | |||
264,441 | |||||
IT Services — 7.5% | |||||
Accenture plc, Class A | 112 | 18,076 | |||
Automatic Data Processing, Inc. | 112 | 17,139 | |||
Black Knight, Inc.(1) | 336 | 17,556 | |||
Booz Allen Hamilton Holding Corp. | 3,066 | 162,069 | |||
Broadridge Financial Solutions, Inc. | 168 | 17,010 | |||
Cognizant Technology Solutions Corp., Class A | 238 | 16,893 | |||
EPAM Systems, Inc.(1) | 658 | 106,451 | |||
Global Payments, Inc. | 140 | 18,253 | |||
GoDaddy, Inc., Class A(1) | 224 | 16,724 | |||
Mastercard, Inc., Class A | 980 | 220,275 | |||
MAXIMUS, Inc. | 1,064 | 75,204 | |||
Pagseguro Digital Ltd., Class A(1) | 1,316 | 37,032 | |||
PayPal Holdings, Inc.(1) | 1,792 | 175,741 | |||
Square, Inc., Class A(1) | 1,358 | 110,324 | |||
Visa, Inc., Class A | 238 | 35,253 | |||
1,044,000 | |||||
Life Sciences Tools and Services — 1.8% | |||||
Bio-Rad Laboratories, Inc., Class A(1) | 56 | 15,170 | |||
Illumina, Inc.(1) | 462 | 144,500 | |||
Mettler-Toledo International, Inc.(1) | 28 | 19,066 | |||
PRA Health Sciences, Inc.(1) | 602 | 64,402 | |||
243,138 | |||||
Machinery — 2.8% | |||||
Allison Transmission Holdings, Inc. | 2,730 | 135,681 | |||
Crane Co. | 196 | 16,578 | |||
Graco, Inc. | 364 | 17,093 | |||
Illinois Tool Works, Inc. | 112 | 16,137 | |||
Lincoln Electric Holdings, Inc. | 196 | 16,938 | |||
Oshkosh Corp. | 210 | 16,342 | |||
Parker-Hannifin Corp. | 98 | 17,265 | |||
Toro Co. (The) | 1,876 | 128,656 | |||
Woodward, Inc. | 182 | 17,536 | |||
382,226 | |||||
Media — 0.2% | |||||
Cable One, Inc. | 18 | 17,082 | |||
Interpublic Group of Cos., Inc. (The) | 728 | 16,773 | |||
33,855 | |||||
Multi-Utilities — 1.0% | |||||
CenterPoint Energy, Inc. | 2,632 | 79,329 | |||
WEC Energy Group, Inc. | 742 | 56,607 | |||
135,936 |
31
STOXX® U.S. Quality Growth ETF | |||||
Shares | Value | ||||
Multiline Retail — 1.1% | |||||
Dollar General Corp. | 154 | $ | 18,243 | ||
Dollar Tree, Inc.(1) | 196 | 18,881 | |||
Kohl's Corp. | 1,610 | 108,723 | |||
145,847 | |||||
Oil, Gas and Consumable Fuels — 2.2% | |||||
Cabot Oil & Gas Corp. | 4,256 | 104,783 | |||
EOG Resources, Inc. | 182 | 17,108 | |||
Exxon Mobil Corp. | 224 | 17,703 | |||
HollyFrontier Corp. | 308 | 15,769 | |||
Marathon Petroleum Corp. | 532 | 32,995 | |||
ONEOK, Inc. | 420 | 26,993 | |||
Phillips 66 | 966 | 93,084 | |||
308,435 | |||||
Personal Products — 1.2% | |||||
Herbalife Nutrition Ltd.(1) | 3,052 | 171,248 | |||
Pharmaceuticals — 2.0% | |||||
Bristol-Myers Squibb Co. | 336 | 17,358 | |||
Zoetis, Inc. | 2,730 | 257,248 | |||
274,606 | |||||
Professional Services — 2.0% | |||||
CoStar Group, Inc.(1) | 420 | 192,163 | |||
Insperity, Inc. | 392 | 49,498 | |||
Robert Half International, Inc. | 266 | 18,138 | |||
Verisk Analytics, Inc.(1) | 140 | 17,702 | |||
277,501 | |||||
Real Estate Management and Development — 0.1% | |||||
CBRE Group, Inc., Class A(1) | 336 | 16,723 | |||
Road and Rail — 1.0% | |||||
CSX Corp. | 238 | 17,295 | |||
Landstar System, Inc. | 154 | 16,737 | |||
Old Dominion Freight Line, Inc. | 686 | 103,428 | |||
137,460 | |||||
Semiconductors and Semiconductor Equipment — 6.2% | |||||
Entegris, Inc. | 952 | 33,634 | |||
KLA-Tencor Corp. | 910 | 105,096 | |||
Lam Research Corp. | 770 | 135,589 | |||
Maxim Integrated Products, Inc. | 308 | 16,764 | |||
Mellanox Technologies Ltd.(1) | 168 | 18,052 | |||
MKS Instruments, Inc. | 406 | 33,645 | |||
Monolithic Power Systems, Inc. | 378 | 50,694 | |||
NVIDIA Corp. | 210 | 32,395 | |||
ON Semiconductor Corp.(1) | 3,024 | 64,955 | |||
Skyworks Solutions, Inc. | 1,260 | 102,904 | |||
Teradyne, Inc. | 420 | 17,153 | |||
Texas Instruments, Inc. | 1,610 | 170,306 |
32
STOXX® U.S. Quality Growth ETF | |||||
Shares | Value | ||||
Universal Display Corp. | 112 | $ | 16,715 | ||
Versum Materials, Inc. | 616 | 30,190 | |||
Xilinx, Inc. | 280 | 35,084 | |||
863,176 | |||||
Software — 16.3% | |||||
Adobe, Inc.(1) | 728 | 191,100 | |||
ANSYS, Inc.(1) | 98 | 17,372 | |||
Aspen Technology, Inc.(1) | 168 | 16,921 | |||
Atlassian Corp. plc, Class A(1) | 658 | 70,722 | |||
Cadence Design Systems, Inc.(1) | 658 | 37,671 | |||
CDK Global, Inc. | 2,366 | 137,275 | |||
Fair Isaac Corp.(1) | 70 | 17,347 | |||
Fortinet, Inc.(1) | 1,582 | 137,302 | |||
Guidewire Software, Inc.(1) | 756 | 69,355 | |||
HubSpot, Inc.(1) | 210 | 35,360 | |||
Intuit, Inc. | 1,372 | 339,062 | |||
Microsoft Corp. | 154 | 17,254 | |||
New Relic, Inc.(1) | 168 | 17,768 | |||
Palo Alto Networks, Inc.(1) | 602 | 148,261 | |||
Paycom Software, Inc.(1) | 378 | 68,694 | |||
Proofpoint, Inc.(1) | 294 | 34,719 | |||
PTC, Inc.(1) | 742 | 68,872 | |||
Red Hat, Inc.(1) | 560 | 102,256 | |||
RingCentral, Inc., Class A(1) | 322 | 33,903 | |||
salesforce.com, Inc.(1) | 1,064 | 174,124 | |||
ServiceNow, Inc.(1) | 588 | 140,791 | |||
Splunk, Inc.(1) | 770 | 104,628 | |||
Tyler Technologies, Inc.(1) | 84 | 17,202 | |||
Ultimate Software Group, Inc. (The)(1) | 210 | 69,615 | |||
VMware, Inc., Class A | 98 | 16,838 | |||
Workday, Inc., Class A(1) | 532 | 105,299 | |||
Zendesk, Inc.(1) | 868 | 68,598 | |||
2,258,309 | |||||
Specialty Retail — 5.3% | |||||
Advance Auto Parts, Inc. | 112 | 18,120 | |||
American Eagle Outfitters, Inc. | 1,722 | 35,129 | |||
Best Buy Co., Inc. | 1,708 | 117,579 | |||
Burlington Stores, Inc.(1) | 1,260 | 213,872 | |||
Five Below, Inc.(1) | 546 | 65,711 | |||
Home Depot, Inc. (The) | 182 | 33,696 | |||
Lowe's Cos., Inc. | 182 | 19,126 | |||
O'Reilly Automotive, Inc.(1) | 280 | 104,149 | |||
Ross Stores, Inc. | 378 | 35,846 | |||
TJX Cos., Inc. (The) | 336 | 17,237 | |||
Tractor Supply Co. | 238 | 22,693 | |||
Ulta Beauty, Inc.(1) | 56 | 17,499 |
33
STOXX® U.S. Quality Growth ETF | |||||
Shares | Value | ||||
Williams-Sonoma, Inc. | 616 | $ | 35,833 | ||
736,490 | |||||
Technology Hardware, Storage and Peripherals — 0.7% | |||||
NetApp, Inc. | 1,568 | 102,234 | |||
Textiles, Apparel and Luxury Goods — 1.8% | |||||
Carter's, Inc. | 182 | 17,736 | |||
Deckers Outdoor Corp.(1) | 238 | 35,214 | |||
Hanesbrands, Inc. | 896 | 16,666 | |||
Lululemon Athletica, Inc.(1) | 812 | 122,141 | |||
NIKE, Inc., Class B | 210 | 18,005 | |||
Ralph Lauren Corp. | 140 | 17,525 | |||
Skechers U.S.A., Inc., Class A(1) | 504 | 16,955 | |||
244,242 | |||||
Trading Companies and Distributors — 1.7% | |||||
HD Supply Holdings, Inc.(1) | 3,892 | 167,395 | |||
W.W. Grainger, Inc. | 224 | 68,268 | |||
235,663 | |||||
TOTAL COMMON STOCKS (Cost $13,037,399) | 13,861,034 | ||||
TEMPORARY CASH INVESTMENTS — 0.2% | |||||
State Street Institutional U.S. Government Money Market Fund, Premier Class (Cost $22,612) | 22,612 | 22,612 | |||
TOTAL INVESTMENT SECURITIES — 99.9% (Cost $13,060,011) | 13,883,646 | ||||
OTHER ASSETS AND LIABILITIES — 0.1% | 18,863 | ||||
TOTAL NET ASSETS — 100.0% | $ | 13,902,509 |
NOTES TO SCHEDULE OF INVESTMENTS |
(1) | Non-income producing. |
See Notes to Financial Statements.
34
FEBRUARY 28, 2019 (UNAUDITED)
STOXX® U.S. Quality Value ETF | |||||
Shares | Value | ||||
COMMON STOCKS — 99.7% | |||||
Aerospace and Defense — 0.7% | |||||
Boeing Co. (The) | 32 | $ | 14,079 | ||
General Dynamics Corp. | 77 | 13,107 | |||
Huntington Ingalls Industries, Inc. | 62 | 12,983 | |||
Lockheed Martin Corp. | 46 | 14,233 | |||
Raytheon Co. | 77 | 14,360 | |||
Spirit AeroSystems Holdings, Inc., Class A | 141 | 13,931 | |||
Textron, Inc. | 246 | 13,358 | |||
United Technologies Corp. | 10 | 1,257 | |||
97,308 | |||||
Air Freight and Logistics — 0.2% | |||||
FedEx Corp. | 75 | 13,575 | |||
United Parcel Service, Inc., Class B | 123 | 13,555 | |||
27,130 | |||||
Airlines — 1.3% | |||||
Alaska Air Group, Inc. | 214 | 13,204 | |||
American Airlines Group, Inc. | 336 | 11,972 | |||
Delta Air Lines, Inc. | 261 | 12,940 | |||
JetBlue Airways Corp.(1) | 772 | 12,892 | |||
Southwest Airlines Co. | 889 | 49,820 | |||
United Continental Holdings, Inc.(1) | 988 | 86,756 | |||
187,584 | |||||
Auto Components — 0.3% | |||||
Goodyear Tire & Rubber Co. (The) | 1,312 | 25,951 | |||
Lear Corp. | 93 | 14,143 | |||
40,094 | |||||
Automobiles — 0.2% | |||||
Ford Motor Co. | 1,077 | 9,445 | |||
Thor Industries, Inc. | 386 | 24,924 | |||
34,369 | |||||
Banks — 1.6% | |||||
Bank of America Corp. | 4,618 | 134,292 | |||
Bank OZK | 728 | 23,878 | |||
BB&T Corp. | 262 | 13,354 | |||
Citigroup, Inc. | 193 | 12,348 | |||
Fifth Third Bancorp | 479 | 13,211 | |||
Investors Bancorp, Inc. | 1,778 | 22,350 | |||
SunTrust Banks, Inc. | 201 | 13,039 | |||
Umpqua Holdings Corp. | 246 | 4,472 | |||
236,944 | |||||
Beverages — 0.2% | |||||
PepsiCo, Inc. | 222 | 25,672 | |||
Biotechnology — 6.0% | |||||
AbbVie, Inc. | 4,245 | 336,374 |
35
STOXX® U.S. Quality Value ETF | |||||
Shares | Value | ||||
Amgen, Inc. | 77 | $ | 14,636 | ||
Biogen, Inc.(1) | 261 | 85,611 | |||
Celgene Corp.(1) | 952 | 79,130 | |||
Gilead Sciences, Inc. | 5,370 | 349,157 | |||
United Therapeutics Corp.(1) | 139 | 17,554 | |||
882,462 | |||||
Building Products — 0.3% | |||||
Fortune Brands Home & Security, Inc. | 280 | 13,194 | |||
Owens Corning | 714 | 35,650 | |||
48,844 | |||||
Capital Markets — 1.4% | |||||
Affiliated Managers Group, Inc. | 123 | 13,482 | |||
Ameriprise Financial, Inc. | 10 | 1,316 | |||
Bank of New York Mellon Corp. (The) | 248 | 13,015 | |||
Janus Henderson Group plc | 6,330 | 155,085 | |||
Lazard Ltd., Class A | 119 | 4,454 | |||
State Street Corp. | 185 | 13,296 | |||
200,648 | |||||
Chemicals — 2.2% | |||||
Chemours Co. (The) | 883 | 33,580 | |||
Eastman Chemical Co. | 155 | 12,817 | |||
Huntsman Corp. | 1,221 | 30,269 | |||
LyondellBasell Industries NV, Class A | 2,820 | 241,166 | |||
Mosaic Co. (The) | 478 | 14,947 | |||
332,779 | |||||
Commercial Services and Supplies — 0.2% | |||||
Republic Services, Inc. | 170 | 13,333 | |||
Waste Management, Inc. | 139 | 14,074 | |||
27,407 | |||||
Communications Equipment — 0.5% | |||||
ARRIS International plc(1) | 40 | 1,267 | |||
Cisco Systems, Inc. | 987 | 51,097 | |||
Juniper Networks, Inc. | 942 | 25,510 | |||
77,874 | |||||
Construction and Engineering — 0.2% | |||||
EMCOR Group, Inc. | 185 | 13,344 | |||
Jacobs Engineering Group, Inc. | 19 | 1,402 | |||
Quanta Services, Inc. | 375 | 13,365 | |||
28,111 | |||||
Consumer Finance — 0.2% | |||||
American Express Co. | 123 | 13,252 | |||
Discover Financial Services | 185 | 13,248 | |||
26,500 | |||||
Containers and Packaging — 0.6% | |||||
Bemis Co., Inc. | 253 | 13,384 | |||
Packaging Corp. of America | 601 | 57,450 |
36
STOXX® U.S. Quality Value ETF | |||||
Shares | Value | ||||
Sonoco Products Co. | 277 | $ | 16,035 | ||
86,869 | |||||
Diversified Consumer Services — 0.6% | |||||
H&R Block, Inc. | 3,598 | 86,892 | |||
Diversified Telecommunication Services — 2.9% | |||||
AT&T, Inc. | 4,262 | 132,634 | |||
Verizon Communications, Inc. | 5,235 | 297,976 | |||
430,610 | |||||
Electric Utilities — 8.7% | |||||
Alliant Energy Corp. | 576 | 26,421 | |||
American Electric Power Co., Inc. | 3,665 | 297,415 | |||
Edison International | 994 | 59,531 | |||
Entergy Corp. | 3,081 | 287,550 | |||
Eversource Energy | 1,106 | 77,210 | |||
Exelon Corp. | 27 | 1,312 | |||
IDACORP, Inc. | 251 | 24,701 | |||
NextEra Energy, Inc. | 162 | 30,410 | |||
OGE Energy Corp. | 33 | 1,403 | |||
Portland General Electric Co. | 3,254 | 163,155 | |||
PPL Corp. | 9,025 | 290,334 | |||
Xcel Energy, Inc. | 488 | 26,772 | |||
1,286,214 | |||||
Electrical Equipment — 0.4% | |||||
Acuity Brands, Inc. | 108 | 14,053 | |||
Eaton Corp. plc | 340 | 27,122 | |||
Regal Beloit Corp. | 157 | 13,150 | |||
54,325 | |||||
Electronic Equipment, Instruments and Components — 0.5% | |||||
Coherent, Inc.(1) | 14 | 1,863 | |||
Corning, Inc. | 494 | 17,196 | |||
Jabil, Inc. | 1,380 | 39,192 | |||
TE Connectivity Ltd. | 156 | 12,806 | |||
71,057 | |||||
Energy Equipment and Services — 0.4% | |||||
Schlumberger Ltd. | 1,342 | 59,128 | |||
Entertainment — 0.8% | |||||
Cinemark Holdings, Inc. | 1,198 | 45,081 | |||
Viacom, Inc., Class B | 2,129 | 62,209 | |||
Walt Disney Co. (The) | 112 | 12,638 | |||
119,928 | |||||
Equity Real Estate Investment Trusts (REITs) — 12.4% | |||||
Apple Hospitality REIT, Inc. | 819 | 13,497 | |||
Brixmor Property Group, Inc. | 7,672 | 133,953 | |||
CubeSmart | 3,108 | 95,229 | |||
EPR Properties | 17 | 1,249 | |||
HCP, Inc. | 7,529 | 231,667 |
37
STOXX® U.S. Quality Value ETF | |||||
Shares | Value | ||||
Host Hotels & Resorts, Inc. | 6,937 | $ | 136,035 | ||
Lamar Advertising Co., Class A | 2,001 | 155,218 | |||
Life Storage, Inc. | 238 | 23,229 | |||
Medical Properties Trust, Inc. | 587 | 10,701 | |||
National Retail Properties, Inc. | 4,414 | 229,969 | |||
Park Hotels & Resorts, Inc. | 481 | 15,026 | |||
Public Storage | 61 | 12,901 | |||
Ryman Hospitality Properties, Inc. | 1,036 | 83,906 | |||
Simon Property Group, Inc. | 1,462 | 264,856 | |||
Ventas, Inc. | 4,651 | 291,850 | |||
Weingarten Realty Investors | 4,758 | 137,078 | |||
1,836,364 | |||||
Food and Staples Retailing — 1.3% | |||||
Kroger Co. (The) | 3,023 | 88,665 | |||
US Foods Holding Corp.(1) | 446 | 15,717 | |||
Walgreens Boots Alliance, Inc. | 444 | 31,608 | |||
Walmart, Inc. | 646 | 63,947 | |||
199,937 | |||||
Food Products — 4.9% | |||||
Archer-Daniels-Midland Co. | 307 | 13,047 | |||
Flowers Foods, Inc. | 5,750 | 117,702 | |||
General Mills, Inc. | 989 | 46,612 | |||
Hershey Co. (The) | 251 | 27,781 | |||
Ingredion, Inc. | 126 | 11,649 | |||
J.M. Smucker Co. (The) | 1,644 | 174,116 | |||
Kellogg Co. | 3,996 | 224,815 | |||
Tyson Foods, Inc., Class A | 1,888 | 116,414 | |||
732,136 | |||||
Gas Utilities — 0.5% | |||||
National Fuel Gas Co. | 842 | 50,680 | |||
Southwest Gas Holdings, Inc. | 310 | 25,401 | |||
76,081 | |||||
Health Care Equipment and Supplies — 0.3% | |||||
Danaher Corp. | 124 | 15,750 | |||
DENTSPLY SIRONA, Inc. | 327 | 13,656 | |||
Medtronic plc | 144 | 13,032 | |||
42,438 | |||||
Health Care Providers and Services — 2.1% | |||||
Anthem, Inc. | 46 | 13,834 | |||
Cardinal Health, Inc. | 1,715 | 93,193 | |||
Cigna Corp. | 57 | 9,943 | |||
CVS Health Corp. | 124 | 7,171 | |||
Encompass Health Corp. | 199 | 12,565 | |||
HCA Healthcare, Inc. | 170 | 23,637 | |||
Henry Schein, Inc.(1) | 196 | 11,623 | |||
Humana, Inc. | 46 | 13,112 |
38
STOXX® U.S. Quality Value ETF | |||||
Shares | Value | ||||
Laboratory Corp. of America Holdings(1) | 8 | $ | 1,186 | ||
McKesson Corp. | 266 | 33,824 | |||
MEDNAX, Inc.(1) | 125 | 4,114 | |||
Molina Healthcare, Inc.(1) | 10 | 1,346 | |||
Quest Diagnostics, Inc. | 464 | 40,159 | |||
UnitedHealth Group, Inc. | 63 | 15,260 | |||
Universal Health Services, Inc., Class B | 123 | 17,076 | |||
WellCare Health Plans, Inc.(1) | 47 | 11,918 | |||
309,961 | |||||
Health Care Technology — 0.1% | |||||
Cerner Corp.(1) | 210 | 11,749 | |||
Hotels, Restaurants and Leisure — 3.1% | |||||
Carnival Corp. | 1,663 | 96,055 | |||
Darden Restaurants, Inc. | 1,284 | 143,949 | |||
Las Vegas Sands Corp. | 2,331 | 143,193 | |||
McDonald's Corp. | 177 | 32,540 | |||
Royal Caribbean Cruises Ltd. | 109 | 12,914 | |||
Six Flags Entertainment Corp. | 39 | 2,173 | |||
Wyndham Destinations, Inc. | 324 | 14,590 | |||
Yum China Holdings, Inc. | 329 | 13,726 | |||
459,140 | |||||
Household Durables — 2.2% | |||||
Garmin Ltd. | 2,189 | 183,810 | |||
Leggett & Platt, Inc. | 490 | 22,256 | |||
Mohawk Industries, Inc.(1) | 295 | 40,156 | |||
PulteGroup, Inc. | 1,877 | 50,679 | |||
Toll Brothers, Inc. | 322 | 11,463 | |||
Whirlpool Corp. | 108 | 15,283 | |||
323,647 | |||||
Household Products — 5.1% | |||||
Clorox Co. (The) | 576 | 91,026 | |||
Colgate-Palmolive Co. | 2,006 | 132,135 | |||
Kimberly-Clark Corp. | 2,175 | 254,105 | |||
Procter & Gamble Co. (The) | 2,775 | 273,476 | |||
750,742 | |||||
Independent Power and Renewable Electricity Producers — 0.1% | |||||
AES Corp. | 1,282 | 22,089 | |||
Industrial Conglomerates — 0.2% | |||||
3M Co. | 62 | 12,858 | |||
Honeywell International, Inc. | 93 | 14,329 | |||
27,187 | |||||
Insurance — 1.2% | |||||
Aflac, Inc. | 279 | 13,710 | |||
Allstate Corp. (The) | 140 | 13,213 | |||
Fidelity National Financial, Inc. | 694 | 24,353 | |||
Hartford Financial Services Group, Inc. (The) | 279 | 13,771 |
39
STOXX® U.S. Quality Value ETF | |||||
Shares | Value | ||||
MetLife, Inc. | 308 | $ | 13,919 | ||
Principal Financial Group, Inc. | 249 | 13,107 | |||
Progressive Corp. (The) | 308 | 22,453 | |||
Travelers Cos., Inc. (The) | 111 | 14,753 | |||
Unum Group | 1,438 | 53,724 | |||
183,003 | |||||
Interactive Media and Services — 0.2% | |||||
Alphabet, Inc., Class C(1) | 11 | 12,319 | |||
Facebook, Inc., Class A(1) | 79 | 12,755 | |||
SINA Corp.(1) | 39 | 2,627 | |||
27,701 | |||||
IT Services — 4.3% | |||||
Accenture plc, Class A | 78 | 12,588 | |||
Akamai Technologies, Inc.(1) | 215 | 14,977 | |||
Amdocs Ltd. | 210 | 11,670 | |||
Cognizant Technology Solutions Corp., Class A | 200 | 14,196 | |||
CoreLogic, Inc.(1) | 294 | 10,781 | |||
DXC Technology Co. | 910 | 59,933 | |||
Genpact Ltd. | 41 | 1,362 | |||
International Business Machines Corp. | 998 | 137,854 | |||
Leidos Holdings, Inc. | 182 | 11,755 | |||
MAXIMUS, Inc. | 186 | 13,146 | |||
Paychex, Inc. | 1,461 | 112,526 | |||
Sabre Corp. | 49 | 1,099 | |||
Western Union Co. (The) | 13,293 | 237,546 | |||
639,433 | |||||
Leisure Products — 0.1% | |||||
Brunswick Corp. | 266 | 14,029 | |||
Machinery — 1.1% | |||||
AGCO Corp. | 232 | 15,679 | |||
Allison Transmission Holdings, Inc. | 270 | 13,419 | |||
Caterpillar, Inc. | 94 | 12,910 | |||
Crane Co. | 154 | 13,024 | |||
Cummins, Inc. | 93 | 14,330 | |||
Dover Corp. | 141 | 12,765 | |||
Ingersoll-Rand plc | 124 | 13,089 | |||
ITT, Inc. | 232 | 13,400 | |||
Oshkosh Corp. | 190 | 14,784 | |||
PACCAR, Inc. | 188 | 12,746 | |||
Parker-Hannifin Corp. | 78 | 13,741 | |||
Snap-on, Inc. | 78 | 12,480 | |||
162,367 | |||||
Media — 2.8% | |||||
Comcast Corp., Class A | 695 | 26,876 | |||
Discovery, Inc., Class A(1) | 116 | 3,352 | |||
DISH Network Corp., Class A(1) | 1,165 | 37,874 |
40
STOXX® U.S. Quality Value ETF | |||||
Shares | Value | ||||
Interpublic Group of Cos., Inc. (The) | 6,009 | $ | 138,387 | ||
News Corp., Class A | 1,032 | 13,437 | |||
Omnicom Group, Inc. | 2,621 | 198,410 | |||
418,336 | |||||
Metals and Mining† | |||||
Southern Copper Corp. | 75 | 2,671 | |||
United States Steel Corp. | 94 | 2,106 | |||
4,777 | |||||
Multi-Utilities — 1.2% | |||||
Ameren Corp. | 385 | 27,428 | |||
CenterPoint Energy, Inc. | 436 | 13,141 | |||
CMS Energy Corp. | 502 | 27,309 | |||
Consolidated Edison, Inc. | 154 | 12,697 | |||
DTE Energy Co. | 221 | 27,307 | |||
Public Service Enterprise Group, Inc. | 690 | 40,579 | |||
WEC Energy Group, Inc. | 355 | 27,079 | |||
175,540 | |||||
Multiline Retail — 2.9% | |||||
Kohl's Corp. | 2,231 | 150,659 | |||
Macy's, Inc. | 1,626 | 40,309 | |||
Nordstrom, Inc. | 1,879 | 88,839 | |||
Target Corp. | 2,086 | 151,527 | |||
431,334 | |||||
Oil, Gas and Consumable Fuels — 4.2% | |||||
Chevron Corp. | 2,504 | 299,428 | |||
Exxon Mobil Corp. | 479 | 37,855 | |||
HollyFrontier Corp. | 251 | 12,851 | |||
Marathon Petroleum Corp. | 182 | 11,286 | |||
Murphy Oil Corp. | 446 | 12,890 | |||
Phillips 66 | 139 | 13,394 | |||
Plains GP Holdings LP, Class A(1) | 1,904 | 44,154 | |||
Valero Energy Corp. | 2,406 | 196,233 | |||
628,091 | |||||
Pharmaceuticals — 6.3% | |||||
Bristol-Myers Squibb Co. | 709 | 36,627 | |||
Eli Lilly & Co. | 295 | 37,256 | |||
Johnson & Johnson | 1,889 | 258,113 | |||
Merck & Co., Inc. | 3,754 | 305,163 | |||
Pfizer, Inc. | 6,807 | 295,083 | |||
932,242 | |||||
Professional Services — 0.3% | |||||
ManpowerGroup, Inc. | 478 | 40,271 | |||
Real Estate Management and Development — 0.1% | |||||
Jones Lang LaSalle, Inc. | 93 | 15,356 | |||
Road and Rail — 0.3% | |||||
Kansas City Southern | 124 | 13,472 |
41
STOXX® U.S. Quality Value ETF | |||||
Shares | Value | ||||
Norfolk Southern Corp. | 77 | $ | 13,806 | ||
Union Pacific Corp. | 79 | 13,248 | |||
40,526 | |||||
Semiconductors and Semiconductor Equipment — 3.2% | |||||
Applied Materials, Inc. | 1,976 | 75,760 | |||
Cypress Semiconductor Corp. | 89 | 1,373 | |||
Intel Corp. | 2,055 | 108,833 | |||
Lam Research Corp. | 386 | 67,971 | |||
Maxim Integrated Products, Inc. | 442 | 24,058 | |||
Mellanox Technologies Ltd.(1) | 112 | 12,033 | |||
Micron Technology, Inc.(1) | 1,910 | 78,081 | |||
MKS Instruments, Inc. | 172 | 14,254 | |||
ON Semiconductor Corp.(1) | 1,792 | 38,492 | |||
Qorvo, Inc.(1) | 425 | 29,809 | |||
QUALCOMM, Inc. | 238 | 12,707 | |||
Skyworks Solutions, Inc. | 185 | 15,107 | |||
Teradyne, Inc. | 33 | 1,347 | |||
479,825 | |||||
Software — 0.7% | |||||
Check Point Software Technologies Ltd.(1) | 109 | 13,331 | |||
j2 Global, Inc. | 140 | 11,901 | |||
LogMeIn, Inc. | 14 | 1,112 | |||
Microsoft Corp. | 128 | 14,340 | |||
Nuance Communications, Inc.(1) | 80 | 1,342 | |||
Oracle Corp. (New York) | 25 | 1,303 | |||
Symantec Corp. | 2,874 | 64,636 | |||
107,965 | |||||
Specialty Retail — 1.2% | |||||
American Eagle Outfitters, Inc. | 801 | 16,340 | |||
Best Buy Co., Inc. | 215 | 14,801 | |||
Foot Locker, Inc. | 478 | 28,451 | |||
Gap, Inc. (The) | 3,773 | 95,834 | |||
Lowe's Cos., Inc. | 112 | 11,770 | |||
Williams-Sonoma, Inc. | 246 | 14,307 | |||
181,503 | |||||
Technology Hardware, Storage and Peripherals — 1.8% | |||||
Apple, Inc. | 616 | 106,660 | |||
Hewlett Packard Enterprise Co. | 2,720 | 44,554 | |||
HP, Inc. | 572 | 11,286 | |||
NetApp, Inc. | 200 | 13,040 | |||
Seagate Technology plc | 1,148 | 53,451 | |||
Xerox Corp. | 1,209 | 37,358 | |||
266,349 | |||||
Textiles, Apparel and Luxury Goods — 1.3% | |||||
Capri Holdings Ltd.(1) | 81 | 3,694 | |||
Hanesbrands, Inc. | 630 | 11,712 |
42
STOXX® U.S. Quality Value ETF | |||||
Shares | Value | ||||
PVH Corp. | 109 | $ | 12,517 | ||
Ralph Lauren Corp. | 295 | 36,925 | |||
Skechers U.S.A., Inc., Class A(1) | 805 | 27,072 | |||
Tapestry, Inc. | 2,884 | 100,767 | |||
192,687 | |||||
Thrifts and Mortgage Finance — 1.2% | |||||
Essent Group Ltd.(1) | 311 | 13,416 | |||
MGIC Investment Corp.(1) | 1,050 | 13,629 | |||
New York Community Bancorp, Inc. | 10,962 | 137,135 | |||
Radian Group, Inc. | 705 | 14,354 | |||
178,534 | |||||
Tobacco — 2.1% | |||||
Altria Group, Inc. | 272 | 14,256 | |||
Philip Morris International, Inc. | 3,392 | 294,900 | |||
309,156 | |||||
Trading Companies and Distributors — 0.5% | |||||
HD Supply Holdings, Inc.(1) | 311 | 13,376 | |||
MSC Industrial Direct Co., Inc., Class A | 154 | 12,999 | |||
United Rentals, Inc.(1) | 266 | 35,801 | |||
W.W. Grainger, Inc. | 46 | 14,020 | |||
76,196 | |||||
TOTAL COMMON STOCKS (Cost $14,103,501) | 14,765,441 | ||||
TEMPORARY CASH INVESTMENTS — 0.2% | |||||
State Street Institutional U.S. Government Money Market Fund, Premier Class (Cost $32,882) | 32,882 | 32,882 | |||
TOTAL INVESTMENT SECURITIES — 99.9% (Cost $14,136,383) | 14,798,323 | ||||
OTHER ASSETS AND LIABILITIES — 0.1% | 12,910 | ||||
TOTAL NET ASSETS — 100.0% | $ | 14,811,233 |
NOTES TO SCHEDULE OF INVESTMENTS |
† | Category is less than 0.05% of total net assets. |
(1) | Non-income producing. |
See Notes to Financial Statements.
43
Statements of Assets and Liabilities |
FEBRUARY 28, 2019 (UNAUDITED) | ||||||
Diversified Corporate Bond ETF | Diversified Municipal Bond ETF | |||||
Assets | ||||||
Investment securities, at value (cost of $34,033,841 and $12,381,530, respectively) | $ | 34,061,815 | $ | 12,443,069 | ||
Cash | — | 25,797 | ||||
Deposits with broker for futures contracts | 5,180 | — | ||||
Receivable for variation margin on futures contracts | 8,356 | — | ||||
Interest receivable | 330,398 | 146,174 | ||||
34,405,749 | 12,615,040 | |||||
Liabilities | ||||||
Accrued management fees | 11,835 | 2,796 | ||||
Net Assets | $ | 34,393,914 | $ | 12,612,244 | ||
Shares outstanding (unlimited number of shares authorized) | 702,000 | 250,000 | ||||
Net Asset Value Per Share | $ | 48.99 | $ | 50.45 | ||
Net Assets Consist of: | ||||||
Capital paid in | $ | 34,379,611 | $ | 12,506,033 | ||
Distributable earnings | 14,303 | 106,211 | ||||
$ | 34,393,914 | $ | 12,612,244 |
See Notes to Financial Statements.
44
FEBRUARY 28, 2019 (UNAUDITED) | ||||||
Quality Diversified International ETF | STOXX® U.S. Quality Growth ETF | |||||
Assets | ||||||
Investment securities, at value (cost of $12,914,600 and $13,060,011, respectively) | $ | 13,269,036 | $ | 13,883,646 | ||
Foreign currency holdings, at value (cost of $2,332 and $—, respectively) | 2,330 | — | ||||
Receivable for investments sold | — | 5,140,042 | ||||
Dividends and interest receivable | 28,550 | 9,818 | ||||
13,299,916 | 19,033,506 | |||||
Liabilities | ||||||
Payable for investments purchased | — | 5,128,078 | ||||
Accrued management fees | 3,920 | 2,919 | ||||
3,920 | 5,130,997 | |||||
Net Assets | $ | 13,295,996 | $ | 13,902,509 | ||
Shares outstanding (unlimited number of shares authorized) | 350,000 | 350,000 | ||||
Net Asset Value Per Share | $ | 37.99 | $ | 39.72 | ||
Net Assets Consist of: | ||||||
Capital paid in | $ | 13,559,996 | $ | 13,436,853 | ||
Distributable earnings | (264,000 | ) | 465,656 | |||
$ | 13,295,996 | $ | 13,902,509 |
See Notes to Financial Statements.
45
FEBRUARY 28, 2019 (UNAUDITED) | |||
STOXX® U.S. Quality Value ETF | |||
Assets | |||
Investment securities, at value (cost of $14,136,383) | $ | 14,798,323 | |
Cash | 1,652 | ||
Receivable for investments sold | 4,016,082 | ||
Receivable for capital shares sold | 987,545 | ||
Dividends and interest receivable | 37,506 | ||
19,841,108 | |||
Liabilities | |||
Payable for investments purchased | 5,026,840 | ||
Accrued management fees | 3,035 | ||
5,029,875 | |||
Net Assets | $ | 14,811,233 | |
Shares outstanding (unlimited number of shares authorized) | 375,001 | ||
Net Asset Value Per Share | $ | 39.50 | |
Net Assets Consist of: | |||
Capital paid in | $ | 14,854,730 | |
Distributable earnings | (43,497 | ) | |
$ | 14,811,233 |
See Notes to Financial Statements.
46
Statements of Operations |
FOR THE SIX MONTHS AND PERIOD ENDED FEBRUARY 28, 2019 (UNAUDITED) | ||||||
Diversified Corporate Bond ETF | Diversified Municipal Bond ETF(1) | |||||
Investment Income (Loss) | ||||||
Income: | ||||||
Interest | $ | 566,081 | $ | 209,237 | ||
Expenses: | ||||||
Management fees | 64,116 | 16,919 | ||||
Net investment income (loss) | 501,965 | 192,318 | ||||
Realized and Unrealized Gain (Loss) | ||||||
Net realized gain (loss) on: | ||||||
Investment transactions | (24,580 | ) | (16,619 | ) | ||
Futures contract transactions | (30,623 | ) | (9,502 | ) | ||
(55,203 | ) | (26,121 | ) | |||
Change in net unrealized appreciation (depreciation) on: | ||||||
Investments | 316,620 | 61,539 | ||||
Futures contracts | 2,281 | — | ||||
318,901 | 61,539 | |||||
Net realized and unrealized gain (loss) | 263,698 | 35,418 | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 765,663 | $ | 227,736 |
(1) | September 10, 2018 (fund inception) through February 28, 2019. |
See Notes to Financial Statements.
47
FOR THE PERIOD ENDED FEBRUARY 28, 2019 (UNAUDITED)(1) | ||||||
Quality Diversified International ETF | STOXX® U.S. Quality Growth ETF | |||||
Investment Income (Loss) | ||||||
Income: | ||||||
Dividends (net of foreign taxes withheld of $9,087 and $9, respectively) | $ | 89,119 | $ | 37,971 | ||
Interest | 795 | 267 | ||||
89,914 | 38,238 | |||||
Expenses: | ||||||
Management fees | 20,214 | 13,486 | ||||
Net investment income (loss) | 69,700 | 24,752 | ||||
Realized and Unrealized Gain (Loss) | ||||||
Net realized gain (loss) on: | ||||||
Investment transactions | (636,372 | ) | (369,651 | ) | ||
Foreign currency translation transactions | (1,473 | ) | — | |||
(637,845 | ) | (369,651 | ) | |||
Change in net unrealized appreciation (depreciation) on: | ||||||
Investments | 354,436 | 823,635 | ||||
Translation of assets and liabilities in foreign currencies | (66 | ) | — | |||
354,370 | 823,635 | |||||
Net realized and unrealized gain (loss) | (283,475 | ) | 453,984 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (213,775 | ) | $ | 478,736 |
(1) | September 10, 2018 (fund inception) through February 28, 2019. |
See Notes to Financial Statements.
48
FOR THE SIX MONTHS ENDED FEBRUARY 28, 2019 (UNAUDITED) | |||
STOXX® U.S. Quality Value ETF | |||
Investment Income (Loss) | |||
Income: | |||
Dividends | $ | 158,535 | |
Interest | 339 | ||
158,874 | |||
Expenses: | |||
Management fees | 15,174 | ||
Net investment income (loss) | 143,700 | ||
Realized and Unrealized Gain (Loss) | |||
Net realized gain (loss) on investment transactions | (631,012 | ) | |
Change in net unrealized appreciation (depreciation) on investments | 384,918 | ||
Net realized and unrealized gain (loss) | (246,094 | ) | |
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (102,394 | ) |
See Notes to Financial Statements.
49
Statements of Changes in Net Assets |
SIX MONTHS ENDED FEBRUARY 28, 2019 (EXCEPT AS NOTED) (UNAUDITED) AND PERIOD ENDED AUGUST 31, 2018 | |||||||||
Diversified Corporate Bond ETF | Diversified Municipal Bond ETF | ||||||||
Increase (Decrease) in Net Assets | February 28, 2019 | August 31, 2018(1) | February 28, 2019(2) | ||||||
Operations | |||||||||
Net investment income (loss) | $ | 501,965 | $ | 241,720 | $ | 192,318 | |||
Net realized gain (loss) | (55,203 | ) | (65,609 | ) | (26,121 | ) | |||
Change in net unrealized appreciation (depreciation) | 318,901 | (288,646 | ) | 61,539 | |||||
Net increase (decrease) in net assets resulting from operations | 765,663 | (112,535 | ) | 227,736 | |||||
Distributions to Shareholders | |||||||||
From earnings | (431,681 | ) | (207,144 | ) | (121,525 | ) | |||
Capital Share Transactions | |||||||||
Proceeds from shares sold | 21,769,165 | 12,610,446 | 12,506,033 | ||||||
Net increase (decrease) in net assets | 22,103,147 | 12,290,767 | 12,612,244 | ||||||
Net Assets | |||||||||
Beginning of period | 12,290,767 | — | — | ||||||
End of period | $ | 34,393,914 | $ | 12,290,767 | $ | 12,612,244 | |||
Transactions in Shares of the Fund | |||||||||
Sold | 450,000 | 252,000 | 250,000 |
(1) | January 11, 2018 (fund inception) through August 31, 2018. |
(2) | September 10, 2018 (fund inception) through February 28, 2019. |
See Notes to Financial Statements.
50
PERIOD ENDED FEBRUARY 28, 2019 (UNAUDITED)(1) | ||||||
Quality Diversified International ETF | STOXX® U.S. Quality Growth ETF | |||||
Increase (Decrease) in Net Assets | ||||||
Operations | ||||||
Net investment income (loss) | $ | 69,700 | $ | 24,752 | ||
Net realized gain (loss) | (637,845 | ) | (369,651 | ) | ||
Change in net unrealized appreciation (depreciation) | 354,370 | 823,635 | ||||
Net increase (decrease) in net assets resulting from operations | (213,775 | ) | 478,736 | |||
Distributions to Shareholders | ||||||
From earnings | (50,225 | ) | (13,080 | ) | ||
Capital Share Transactions | ||||||
Proceeds from shares sold | 13,559,996 | 13,436,853 | ||||
Net increase (decrease) in net assets | 13,295,996 | 13,902,509 | ||||
Net Assets | ||||||
End of period | $ | 13,295,996 | $ | 13,902,509 | ||
Transactions in Shares of the Fund | ||||||
Sold | 350,000 | 350,000 |
(1) | September 10, 2018 (fund inception) through February 28, 2019. |
See Notes to Financial Statements.
51
SIX MONTHS ENDED FEBRUARY 28, 2019 (UNAUDITED) AND PERIOD ENDED AUGUST 31, 2018 | ||||||
STOXX® U.S. Quality Value ETF | ||||||
Increase (Decrease) in Net Assets | February 28, 2019 | August 31, 2018(1) | ||||
Operations | ||||||
Net investment income (loss) | $ | 143,700 | $ | 94,339 | ||
Net realized gain (loss) | (631,012 | ) | (126,279 | ) | ||
Change in net unrealized appreciation (depreciation) | 384,918 | 277,022 | ||||
Net increase (decrease) in net assets resulting from operations | (102,394 | ) | 245,082 | |||
Distributions to Shareholders | ||||||
From earnings | (121,260 | ) | (64,925 | ) | ||
Capital Share Transactions | ||||||
Proceeds from shares sold | 7,744,137 | 7,110,593 | ||||
Net increase (decrease) in net assets | 7,520,483 | 7,290,750 | ||||
Net Assets | ||||||
Beginning of period | 7,290,750 | — | ||||
End of period | $ | 14,811,233 | $ | 7,290,750 | ||
Transactions in Shares of the Fund | ||||||
Sold | 200,000 | 175,001 |
(1) | January 11, 2018 (fund inception) through August 31, 2018. |
See Notes to Financial Statements.
52
Notes to Financial Statements |
FEBRUARY 28, 2019 (UNAUDITED)
1. Organization
American Century ETF Trust (the trust) was registered as a Delaware statutory trust in 2017 and is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. American Century Diversified Corporate Bond ETF (Diversified Corporate Bond ETF), American Century Diversified Municipal Bond ETF (Diversified Municipal Bond ETF), American Century Quality Diversified International ETF (Quality Diversified International ETF), American Century STOXX® U.S. Quality Growth ETF (STOXX® U.S. Quality Growth ETF) and American Century STOXX® U.S. Quality Value ETF (STOXX® U.S. Quality Value ETF) (collectively, the funds) are five series issued by the trust. Diversified Corporate Bond ETF's investment objective is to seek to provide current income. Diversified Municipal Bond ETF's investment objective is to seek current income that is exempt from federal income tax. Quality Diversified International ETF's investment objective is to seek to provide investment results that closely correspond, before fees and expenses, to the performance of the Alpha Vee American Century Diversified International Equity Index. STOXX® U.S. Quality Growth ETF's investment objective is to seek to provide investment results that closely correspond, before fees and expenses, to the performance of the iSTOXX® American Century USA Quality Growth Index. STOXX® U.S. Quality Value ETF's investment objective is to seek to provide investment results that closely correspond, before fees and expenses, to the performance of the iSTOXX® American Century USA Quality Value Index. Shares of each fund are listed for trading on the NYSE Arca, Inc. The Diversified Corporate Bond ETF and STOXX® U.S. Quality Value ETF incepted on January 11, 2018. Diversified Municipal Bond ETF, Quality Diversified International ETF and STOXX® U.S. Quality Growth ETF incepted on September 10, 2018.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently followed by the funds in preparation of their financial statements. Each fund is an investment company and follows accounting and reporting guidance in accordance with accounting principles generally accepted in the United States of America. This may require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from these estimates. Management evaluated the impact of events or transactions occurring through the date the financial statements were issued that would merit recognition or disclosure.
Investment Valuations — The funds determine the fair value of their investments and compute their net asset value per share at the close of regular trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on each day the NYSE is open. The Board of Trustees has adopted valuation policies and procedures to guide the investment advisor in the funds' investment valuation process and to provide methodologies for the oversight of the funds' pricing function.
Equity securities that are listed or traded on a domestic securities exchange are valued at the last reported sales price or at the official closing price as provided by the exchange. Equity securities traded on foreign securities exchanges are generally valued at the closing price of such securities on the exchange where primarily traded or at the close of the NYSE, if that is earlier. If no last sales price is reported, or if local convention or regulation so provides, the mean of the latest bid and asked prices may be used. Securities traded over-the-counter are valued at the mean of the latest bid and asked prices, the last sales price, or the official closing price. Equity securities initially expressed in local currencies are translated into U.S. dollars at the mean of the appropriate currency exchange rate at the close of the London Stock Exchange as provided by an independent pricing service.
Fixed income securities are valued at the evaluated mean as provided by independent pricing services or at the mean of the most recent bid and asked prices as provided by investment dealers. Corporate bonds and municipal securities are valued using market models that consider trade data, quotations from dealers and active market makers, relevant yield curve and spread data, creditworthiness, trade data or market information on comparable securities, and other relevant security specific information.
Open-end management investment companies are valued at the reported net asset value per share. Exchange-traded futures contracts are valued at the settlement price as provided by the appropriate exchange.
53
If the funds determine that the market price for an investment is not readily available or the valuation methods mentioned above do not reflect an investment’s fair value, such investment is valued as determined in good faith by the Board of Trustees or its delegate, in accordance with policies and procedures adopted by the Board of Trustees. In its determination of fair value, the funds may review several factors including, but not limited to, market information regarding the specific investment or comparable investments and correlation with other investment types, futures indices or general market indicators. Circumstances that may cause the funds to use these procedures to value an investment include, but are not limited to: an investment has been declared in default or is distressed; trading in a security has been suspended during the trading day or a security is not actively trading on its principal exchange; prices received from a regular pricing source are deemed unreliable; or there is a foreign market holiday and no trading occurred.
The funds monitor for significant events occurring after the close of an investment’s primary exchange but before each fund’s net asset value per share is determined. Significant events may include, but are not limited to: corporate announcements and transactions; governmental action and political unrest that could impact a specific investment or an investment sector; or armed conflicts, natural disasters and similar events that could affect investments in a specific country or region.
Security Transactions — Security transactions are accounted for as of the trade date. Net realized gains and losses are determined on the identified cost basis, which is also used for federal income tax purposes.
Investment Income — Dividend income less foreign taxes withheld, if any, is recorded as of the ex-dividend date. Distributions received on securities that represent a return of capital or long-term capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The funds may estimate the components of distributions received that may be considered nontaxable distributions or long-term capital gain distributions for income tax purposes. Interest income is recorded on the accrual basis and includes accretion of discounts and amortization of premiums.
Foreign Currency Translations — All assets and liabilities initially expressed in foreign currencies are translated into U.S. dollars at prevailing exchange rates at period end. The funds may enter into spot foreign currency exchange contracts to facilitate transactions denominated in a foreign currency. Purchases and sales of investment securities, dividend and interest income, spot foreign currency exchange contracts, and expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses related to investment securities are a component of net realized gain (loss) on investment transactions and change in net unrealized appreciation (depreciation) on investments, respectively.
Income Tax Status — It is each fund’s policy to distribute substantially all net investment income and net realized gains to shareholders and to otherwise qualify as a regulated investment company under provisions of the Internal Revenue Code. Accordingly, no provision has been made for income taxes. The funds file U.S. federal, state, local and non-U.S. tax returns as applicable. The funds' tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years from the date of filing but can be longer in certain jurisdictions. At this time, management believes there are no uncertain tax positions which, based on their technical merit, would not be sustained upon examination and for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.
Segregated Assets — In accordance with the 1940 Act, the funds segregate assets on their books and records to cover certain types of investment securities and other financial instruments. American Century Investment Management, Inc. (ACIM) (the investment advisor) monitors, on a daily basis, the securities segregated to ensure the funds designate a sufficient amount of liquid assets, marked-to-market daily. The funds may also receive assets or be required to pledge assets at the custodian bank or with a broker for collateral requirements.
Distributions to Shareholders — Distributions from net investment income, if any, are declared and paid monthly for Diversified Corporate Bond ETF and Diversified Municipal Bond ETF. Distributions from net investment income, if any, are declared and paid semiannually for Quality Diversified International ETF. Distributions from net investment income, if any, are declared and paid quarterly for STOXX® U.S. Quality Growth ETF and STOXX® U.S. Quality Value ETF. Distributions from net realized gains, if any, are generally declared and paid annually for all funds.
54
Indemnifications — Under the trust’s organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the funds. In addition, in the normal course of business, the funds enter into contracts that provide general indemnifications. The maximum exposure under these arrangements is unknown as this would involve future claims that may be made against a fund. The risk of material loss from such claims is considered by management to be remote.
3. Fees and Transactions with Related Parties
Certain officers and trustees of the trust are also officers and/or directors of American Century Companies, Inc. (ACC). The trust's investment advisor, ACIM, and the trust’s administrator, American Century Services, LLC, are wholly owned, directly or indirectly, by ACC.
Management Fees — The trust has entered into a management agreement with ACIM, under which ACIM provides the funds with investment advisory and management services in exchange for a single, unified management fee (the fee). The agreement provides that all expenses of managing and operating the funds, except brokerage and other transaction fees and expenses relating to the acquisition and disposition of portfolio securities, acquired fund fees and expenses, interest, taxes, litigation expenses, extraordinary expenses and expenses incurred in connection with the provision of shareholder and distribution services under a plan adopted pursuant to Rule 12b-1 under the 1940 Act, if any, will be paid by ACIM. The fee is computed and accrued daily based on each fund's daily net assets and paid monthly in arrears.
The annual management fee for each fund is as follows:
Annual Management Fee | |
Diversified Corporate Bond ETF | 0.45% |
Diversified Municipal Bond ETF | 0.29% |
Quality Diversified International ETF | 0.39% |
STOXX® U.S. Quality Growth ETF | 0.29% |
STOXX® U.S. Quality Value ETF | 0.29% |
4. Investment Transactions
Purchases and sales of investment securities, excluding short-term investments and in-kind transactions, for the period ended February 28, 2019 were as follows:
Diversified Corporate Bond ETF | Diversified Municipal Bond ETF(1) | Quality Diversified International ETF(1) | STOXX® U.S. Quality Growth ETF(1) | STOXX® U.S. Quality Value ETF | |||||||||||
Purchases | $ | 4,676,019 | $ | 4,616,779 | $ | 6,799,872 | $ | 8,904,042 | $ | 11,319,214 | |||||
Sales | $ | 2,389,842 | $ | 1,542,844 | $ | 5,708,262 | $ | 8,775,914 | $ | 11,131,459 |
(1) | September 10, 2018 (fund inception) through February 28, 2019. |
Securities received or delivered in-kind through subscriptions and redemptions and in-kind net realized gain (loss) for the period ended February 28, 2019 were as follows:
In-kind Subscriptions | In-kind Redemptions | In-kind Net Realized Gain/(Loss)* | |||
Diversified Corporate Bond ETF | $ | 19,175,596 | – | – | |
Diversified Municipal Bond ETF(1) | $ | 9,375,268 | – | – | |
Quality Diversified International ETF(1) | $ | 12,442,383 | – | – | |
STOXX® U.S. Quality Growth ETF(1) | $ | 13,403,660 | – | – | |
STOXX® U.S. Quality Value ETF | $ | 7,714,176 | – | – |
*Net realized gain (loss) on in-kind transactions are not considered taxable for federal income tax purposes.
(1) | September 10, 2018 (fund inception) through February 28, 2019. |
55
5. Capital Share Transactions
Each fund’s shares may only be purchased and sold on a national securities exchange through a broker-dealer. The price of each fund’s shares is based on market price, and because ETF shares trade at market prices rather than net asset value (NAV), shares may trade at a price greater than NAV (a premium) or less than NAV (a discount). Each fund issues and redeems shares that have been aggregated into blocks of 50,000 shares or multiples thereof for Diversified Corporate Bond ETF, Diversified Municipal Bond ETF and Quality Diversified International ETF and 25,000 shares or multiples thereof for STOXX® U.S. Quality Growth ETF and STOXX® U.S. Quality Value ETF (Creation Units) to authorized participants who have entered into agreements with the funds’ distributor. Quality Diversified International ETF, STOXX® U.S. Quality Growth ETF and STOXX® U.S. Quality Value ETF will generally issue and redeem Creation Units in return for a basket of securities (and an amount of cash) that the funds specify each day. Diversified Corporate Bond ETF and Diversified Municipal Bond ETF may issue and redeem Creation Units in return for a basket of securities (and an amount of cash) or entirely for cash. Investors transacting in Creation Units for cash may also pay an additional variable charge to compensate a fund for certain transaction costs and market impact expenses relating to investing in portfolio securities. Such variable charges, if any, are included in proceeds from shares sold in the Statements of Changes in Net Assets.
6. Fair Value Measurements
The funds’ investments valuation process is based on several considerations and may use multiple inputs to determine the fair value of the investments held by the funds. In conformity with accounting principles generally accepted in the United States of America, the inputs used to determine a valuation are classified into three broad levels.
• | Level 1 valuation inputs consist of unadjusted quoted prices in an active market for identical investments. |
• | Level 2 valuation inputs consist of direct or indirect observable market data (including quoted prices for comparable investments, evaluations of subsequent market events, interest rates, prepayment speeds, credit risk, etc.). These inputs also consist of quoted prices for identical investments initially expressed in local currencies that are adjusted through translation into U.S. dollars. |
• | Level 3 valuation inputs consist of unobservable data (including a fund’s own assumptions). |
The level classification is based on the lowest level input that is significant to the fair valuation measurement. The valuation inputs are not necessarily an indication of the risks associated with investing in these securities or other financial instruments.
The following is a summary of the level classifications as of period end. The Schedules of Investments provide additional information on the funds’ portfolio holdings.
Diversified Corporate Bond ETF | ||||||||
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Corporate Bonds | — | $ | 33,559,181 | — | ||||
Temporary Cash Investments | $ | 502,634 | — | — | ||||
$ | 502,634 | $ | 33,559,181 | — | ||||
Other Financial Instruments | ||||||||
Futures Contracts | $ | 2,281 | — | — |
Diversified Municipal Bond ETF | |||||||
Level 1 | Level 2 | Level 3 | |||||
Assets | |||||||
Investment Securities | |||||||
Municipal Securities | — | $ | 12,443,069 | — |
56
Quality Diversified International ETF | ||||||||
Level 1 | Level 2 | Level 3 | ||||||
Assets | ||||||||
Investment Securities | ||||||||
Common Stocks | $ | 90,384 | $ | 13,143,623 | — | |||
Temporary Cash Investments | 35,029 | — | — | |||||
$ | 125,413 | $ | 13,143,623 | — |
STOXX® U.S. Quality Growth ETF | |||||||
Level 1 | Level 2 | Level 3 | |||||
Assets | |||||||
Investment Securities | |||||||
Common Stocks | $ | 13,861,034 | — | — | |||
Temporary Cash Investments | 22,612 | — | — | ||||
$ | 13,883,646 | — | — |
STOXX® U.S. Quality Value ETF | |||||||
Level 1 | Level 2 | Level 3 | |||||
Assets | |||||||
Investment Securities | |||||||
Common Stocks | $ | 14,765,441 | — | — | |||
Temporary Cash Investments | 32,882 | — | — | ||||
$ | 14,798,323 | — | — |
7. Derivative Instruments
Interest Rate Risk — The funds are subject to interest rate risk in the normal course of pursuing their investment objectives. The value of bonds generally declines as interest rates rise. The funds may enter into futures contracts based on a bond index or a specific underlying security. The funds may purchase futures contracts to gain exposure to increases in market value or sell futures contracts to protect against a decline in market value. Upon entering into a futures contract, the funds will segregate cash, cash equivalents or other appropriate liquid securities on their records in amounts sufficient to meet requirements. Subsequent payments (variation margin) are made or received daily, in cash, by the funds. The variation margin is equal to the daily change in the contract value and is recorded as unrealized gains and losses. The funds recognize a realized gain or loss when the futures contract is closed or expires. Net realized and unrealized gains or losses occurring during the holding period of futures contracts are a component of net realized gain (loss) on futures contract transactions and change in net unrealized appreciation (depreciation) on futures contracts, respectively. One of the risks of entering into futures contracts is the possibility that the change in value of the contract may not correlate with the changes in value of the underlying securities. Quality Diversified International ETF, STOXX® U.S. Quality Growth ETF and STOXX® U.S. Quality Value ETF did not participate in interest rate risk derivative instruments during the period. Diversified Corporate Bond ETF's average notional exposure to interest rate risk derivative instruments held during the period was $1,116,667 for futures contracts sold. Diversified Municipal Bond ETF's average notional exposure to interest rate risk derivative instruments held during the period was $200,000 for futures contracts sold.
The value of interest rate risk derivative instruments for Diversified Corporate Bond ETF as of February 28, 2019, is disclosed on the Statement of Assets and Liabilities as an asset of $8,356 in receivable for variation margin on futures contracts.* For the six months ended February 28, 2019, the effect of interest rate risk derivative instruments on the Statement of Operations was $(30,623) in net realized gain (loss) on futures contract transactions and $2,281 in change in net unrealized appreciation (depreciation) on futures contracts.
At period end, Diversified Municipal Bond ETF did not have any derivative instruments disclosed on the Statement of Assets and Liabilities. For the period from September 10, 2018 (fund inception) through February 28, 2019, the effect of interest rate risk derivative instruments on the Statement of Operations was $(9,502) in net realized gain (loss) on futures contract transactions.
* Included in the unrealized appreciation (depreciation) on futures contracts, as reported in the Schedules of Investments.
57
8. Risk Factors
There are certain risks involved in investing in foreign securities. These risks include those resulting from political events (such as civil unrest, national elections and imposition of exchange controls), social and economic events (such as labor strikes and rising inflation), and natural disasters. Securities of foreign issuers may be less liquid and more volatile. Investing in emerging markets or a significant portion of assets in one country or region may accentuate these risks.
Quality Diversified International ETF, STOXX® U.S. Quality Growth ETF and STOXX® U.S. Quality Value ETF each seek to track an index. If the funds' respective indexes have high portfolio turnover, the funds may also have high portfolio turnover, which could mean high transaction costs, affecting both performance and capital gains tax liabilities to investors.
Quality Diversified International ETF, STOXX® U.S. Quality Growth ETF and STOXX® U.S. Quality Value ETF are not actively managed and do not attempt to take defensive positions under any market conditions, including declining markets. Therefore, the funds generally will not buy or sell securities unless they are added or removed from their respective indexes, even if the security is underperforming.
9. Federal Tax Information
The book-basis character of distributions made during the year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. These differences reflect the differing character of certain income items and net realized gains and losses for financial statement and tax purposes, and may result in reclassification among certain capital accounts on the financial statements.
As of period end, the components of investments for federal income tax purposes were as follows:
Diversified Corporate Bond ETF | Diversified Municipal Bond ETF | Quality Diversified International ETF | STOXX® U.S. Quality Growth ETF | STOXX® U.S. Quality Value ETF | |||||||||||
Federal tax cost of investments | $ | 34,035,400 | $ | 12,381,530 | $ | 13,008,134 | $ | 13,065,120 | $ | 14,281,473 | |||||
Gross tax appreciation of investments | $ | 168,758 | $ | 113,918 | $ | 647,954 | $ | 883,832 | $ | 605,941 | |||||
Gross tax depreciation of investments | (142,343 | ) | (52,379 | ) | (387,052 | ) | (65,306 | ) | (89,091 | ) | |||||
Net tax appreciation (depreciation) of investments | $ | 26,415 | $ | 61,539 | $ | 260,902 | $ | 818,526 | $ | 516,850 |
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to the tax deferral of losses on wash sales.
As of August 31, 2018, the funds in the table below had accumulated short-term capital losses, which represent net capital loss carryovers that may be used to offset future realized capital gains for federal income tax purposes. The capital loss carryovers may be carried forward for an unlimited period. Future capital loss carryover utilization in any given year may be subject to Internal Revenue Code limitations. Short-term capital losses were as follows:
Short-term capital losses | |
Diversified Corporate Bond ETF | $(64,050) |
STOXX® U.S. Quality Value ETF | $(107,831) |
10. Recently Issued Accounting Standards
In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” (ASU 2017-08). ASU 2017-08 amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Management is currently evaluating the impact that adopting ASU 2017-08 will have on the financial statements.
58
Financial Highlights |
For a Share Outstanding Throughout the Periods Indicated | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(3) | Net Assets, End of Period (in thousands) | |||
Diversified Corporate Bond ETF | |||||||||||||
2019(4) | $48.77 | 0.84 | 0.13 | 0.97 | (0.75) | $48.99 | 2.00% | 0.45%(5) | 3.52%(5) | 9% | $34,394 | ||
2018(6) | $50.00 | 0.96 | (1.37) | (0.41) | (0.82) | $48.77 | (0.77)% | 0.45%(5) | 3.09%(5) | 38% | $12,291 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Excludes securities received or delivered in-kind. |
(4) | Six months ended February 28, 2019 (unaudited). |
(5) | Annualized. |
(6) | January 11, 2018 (fund inception) through August 31, 2018. |
See Notes to Financial Statements.
For a Share Outstanding Throughout the Period Indicated | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(3) | Net Assets, End of Period (in thousands) | |||
Diversified Municipal Bond ETF | |||||||||||||
2019(4) | $50.00 | 0.77 | 0.17 | 0.94 | (0.49) | $50.45 | 1.89% | 0.29%(5) | 3.30%(5) | 13% | $12,612 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Excludes securities received or delivered in-kind. |
(4) | September 10, 2018 (fund inception) through February 28, 2019 (unaudited). |
(5) | Annualized. |
See Notes to Financial Statements.
For a Share Outstanding Throughout the Period Indicated | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(3) | Net Assets, End of Period (in thousands) | |||
Quality Diversified International ETF | |||||||||||||
2019(4) | $39.85 | 0.23 | (1.95) | (1.72) | (0.14) | $37.99 | (4.27)% | 0.39%(5) | 1.34%(5) | 54% | $13,296 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Excludes securities received or delivered in-kind. |
(4) | September 10, 2018 (fund inception) through February 28, 2019 (unaudited). |
(5) | Annualized. |
See Notes to Financial Statements.
For a Share Outstanding Throughout the Period Indicated | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(3) | Net Assets, End of Period (in thousands) | |||
STOXX® U.S. Quality Growth ETF | |||||||||||||
2019(4) | $40.15 | 0.09 | (0.48) | (0.39) | (0.04) | $39.72 | (0.92)% | 0.29%(5) | 0.53%(5) | 90% | $13,903 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Excludes securities received or delivered in-kind. |
(4) | September 10, 2018 (fund inception) through February 28, 2019 (unaudited). |
(5) | Annualized. |
See Notes to Financial Statements.
For a Share Outstanding Throughout the Periods Indicated | |||||||||||||
Per-Share Data | Ratios and Supplemental Data | ||||||||||||
Income From Investment Operations: | Ratio to Average Net Assets of: | ||||||||||||
Net Asset Value, Beginning of Period | Net Investment Income (Loss)(1) | Net Realized and Unrealized Gain (Loss) | Total From Investment Operations | Distributions From Net Investment Income | Net Asset Value, End of Period | Total Return(2) | Operating Expenses | Net Investment Income (Loss) | Portfolio Turnover Rate(3) | Net Assets, End of Period (in thousands) | |||
STOXX® U.S. Quality Value ETF | |||||||||||||
2019(4) | $41.66 | 0.53 | (2.22) | (1.69) | (0.47) | $39.50 | (3.99)% | 0.29%(5) | 2.75%(5) | 106% | $14,811 | ||
2018(6) | $40.37 | 0.55 | 1.11 | 1.66 | (0.37) | $41.66 | 4.16% | 0.29%(5) | 2.17%(5) | 77% | $7,291 |
Notes to Financial Highlights |
(1) | Computed using average shares outstanding throughout the period. |
(2) | Total returns are calculated based on the net asset value of the last business day. Total returns for periods less than one year are not annualized. |
(3) | Excludes securities received or delivered in-kind. |
(4) | Six months ended February 28, 2019 (unaudited). |
(5) | Annualized. |
(6) | January 11, 2018 (fund inception) through August 31, 2018. |
See Notes to Financial Statements.
Approval of Management Agreement |
At meetings held on April 19, 2018 and July 19, 2018, the Funds’ Board of Trustees unanimously approved the initial management agreement pursuant to which American Century Investment Management, Inc. (the “Advisor”) acts as the investment advisor for the American Century Quality Diversified International ETF, the American Century STOXX® U.S. Quality Growth ETF and the American Century Diversified Municipal Bond ETF (collectively, the "New Funds"). Under Section 15(c) of the Investment Company Act, new contracts for investment advisory services are required to be approved by a majority of a fund’s independent trustees and to be evaluated on an annual basis thereafter.
In advance of the Board’s consideration, the Advisor provided information concerning the New Funds. The materials circulated and the discussions held detailed the investment objective and strategy proposed to be utilized by the Advisor, the New Funds’ characteristics and key attributes, the rationale for launching the New Funds, the experience of the staff designated to manage the New Funds, the proposed pricing, and the markets in which the New Funds would be sold. The information considered and the discussions held included, but were not limited to:
• | the nature, extent, and quality of investment management and other services to be provided to the New Funds; |
• | the wide range of other programs and services the Advisor would provide to each New Fund and its shareholders on a routine and non-routine basis; |
• | each New Fund’s proposed investment objective and strategy, including a discussion of it's anticipated investment performance and proposed benchmark; |
• | the cost of owning each New Fund compared to the cost of owning similar funds; |
• | the Advisor’s compliance policies, procedures, and regulatory experience; and |
• | any collateral benefits derived by the Advisor from the management of the New Funds. |
Part of the Board’s analysis of fee levels involves reviewing certain evaluative data compiled by an independent provider and comparing each New Fund's fee to the total expense ratio of peer funds. The annual management fees charged to shareholders of each of the American Century Quality Diversified International ETF, the American Century STOXX® U.S. Quality Growth ETF and the American Century Diversified Municipal Bond ETF were below the median of the total expense ratios of their respective peer universe.
When considering the approval of the management agreement for the New Funds, the independent Trustees considered the entrepreneurial risk that the Advisor assumes in launching a new fund. In particular, they considered the fact that the Advisor will assume a substantial part of the start-up costs of the New Funds and the risk that the New Funds will not grow to a level that will become profitable to the Advisor. The Board considered the position that the New Funds would take in the lineup of the American Century Investments’ family of funds and the benefits to shareholders of existing funds of the broadened product offering. Finally, while not specifically discussed, but important in the decision to approve the management agreement, is the Trustees’ familiarity with the Advisor. A majority of the Board oversees and evaluates on a continuous basis the nature and quality of all services the Advisor performs for other funds within the American Century Investments’ complex. As such, the Trustees have confidence in the Advisor’s integrity and competence in providing services to the New Funds.
The independent Trustees considered all of the information provided by the Advisor and the independent Trustees’ independent counsel in connection with the approval, and evaluated such information for the New Funds. In connection with their review, the Trustees did not identify any single factor as being all-important or controlling, and each Trustee may have attributed different levels of importance to different factors. The independent Trustees concluded that the overall arrangements between the New Funds and the Advisor, as provided in the management agreement, were fair and reasonable in light of the services to be provided and should be approved.
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Additional Information |
Retirement Account Information
As required by law, distributions you receive from certain retirement accounts are subject to federal income tax withholding, unless you elect not to have withholding apply*. Tax will be withheld on the total amount withdrawn even though you may be receiving amounts that are not subject to withholding, such as nondeductible contributions. In such case, excess amounts of withholding could occur. You may adjust your withholding election so that a greater or lesser amount will be withheld.
Remember, even if you elect not to have income tax withheld, you are liable for paying income tax on the taxable portion of your withdrawal. If you elect not to have income tax withheld or you don’t have enough income tax withheld, you may be responsible for payment of estimated tax. You may incur penalties under the estimated tax rules if your withholding and estimated tax payments are not sufficient. You can reduce or defer the income tax on a distribution by directly or indirectly rolling such distribution over to another IRA or eligible plan. You should consult your tax advisor for additional information.
State tax will be withheld if, at the time of your distribution, your address is within one of the mandatory withholding states and you have federal income tax withheld (or as otherwise required by state law). State taxes will be withheld from your distribution in accordance with the respective state rules.
*Some 403(b), 457 and qualified retirement plan distributions may be subject to 20% mandatory withholding, as they are subject to special tax and withholding rules. Your plan administrator or plan sponsor is required to provide you with a special tax notice explaining those rules at the time you request a distribution. If applicable, federal and/or state taxes may be withheld from your distribution amount.
Proxy Voting Policies
A description of the policies that the funds' investment advisor uses in exercising the voting rights associated with the securities purchased and/or held by the funds is available without charge, upon request, by calling 1-800-345-6488. It is also available on the "About Us" page of American Century Investments’ website at americancentury.com and on the Securities and Exchange Commission’s website at sec.gov. Information regarding how the investment advisor voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the "About Us" page at americancentury.com. It is also available at sec.gov.
Quarterly Portfolio Disclosure
The funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (SEC) for the first and third quarters of each fiscal year on Form N-Q or as an exhibit to its reports on Form N-PORT. The funds' Forms N-Q and Form N-PORT reports are available on the SEC’s website at sec.gov.
65
Notes |
66
Notes |
67
Notes |
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Contact Us | americancenturyetfs.com | |
American Century Sales Representatives, Financial Professionals, Broker Dealers, Insurance Companies, Banks and Trust Companies | 1-833-ACI-ETFS | |
Telecommunications Relay Service for the Deaf | 711 | |
American Century ETF Trust | ||
Investment Advisor: American Century Investment Management, Inc. Kansas City, Missouri | ||
Distributor: Foreside Fund Services, not affiliated with American Century Investment Services, Inc. | ||
This report and the statements it contains are submitted for the general information of our shareholders. The report is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. | ||
©2019 American Century Proprietary Holdings, Inc. All rights reserved. CL-SAN-93830 1904 |
ITEM 2. CODE OF ETHICS.
Not applicable for semiannual report filings.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semiannual report filings.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semiannual report filings.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for semiannual report filings.
ITEM 6. INVESTMENTS.
(a) | The schedule of investments is included as part of the report to stockholders filed under Item 1 of this Form. |
(b) | Not applicable. |
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During the reporting period, there were no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board.
ITEM 11. CONTROLS AND PROCEDURES.
(a) | The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) |
are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(b) | There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) | Not applicable for semiannual report filings. |
(a)(2) | Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are filed and attached hereto as EX-99.CERT. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | A certification by the registrant’s chief executive officer and chief financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is furnished and attached hereto as EX- 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: | American Century ETF Trust | |||
By: | /s/ Jonathan S. Thomas | |||
Name: | Jonathan S. Thomas | |||
Title: | President | |||
Date: | April 24, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Jonathan S. Thomas | ||
Name: | Jonathan S. Thomas | ||
Title: | President | ||
(principal executive officer) | |||
Date: | April 24, 2019 |
By: | /s/ R. Wes Campbell | ||
Name: | R. Wes Campbell | ||
Title: | Treasurer, and Chief Financial Officer | ||
(principal financial officer) | |||
Date: | April 24, 2019 |