Capital Group International Focus Equity ETF
Investment portfolio
February 28, 2022
unaudited
Common stocks 94.12% Financials 20.04% | Shares | Value (000) | |
Kotak Mahindra Bank, Ltd. | 36,949 | $904 | |
ABN AMRO Bank NV1 | 65,545 | 872 | |
Banco Santander, SA | 237,524 | 795 | |
AIA Group, Ltd. | 74,400 | 774 | |
Deutsche Bank AG2 | 55,284 | 698 | |
Barclays PLC | 279,357 | 685 | |
BNP Paribas SA | 8,943 | 526 | |
HDFC Bank, Ltd. (ADR) | 6,717 | 418 | |
Aegon NV | 61,651 | 305 | |
XP, Inc., Class A2 | 8,413 | 272 | |
ING Groep NV | 16,961 | 200 | |
Bajaj Finance, Ltd. | 2,034 | 189 | |
CaixaBank, SA | 55,786 | 184 | |
Nu Holdings, Ltd., Class A2 | 22,510 | 172 | |
KBC Groep NV | 2,272 | 164 | |
Lufax Holding, Ltd. (ADR)2 | 20,699 | 134 | |
7,292 | |||
Industrials 13.35% | |||
Airbus SE, non-registered shares2 | 8,338 | 1,074 | |
Recruit Holdings Co., Ltd. | 17,200 | 721 | |
Ryanair Holdings PLC (ADR)2 | 4,158 | 415 | |
Safran SA | 3,178 | 409 | |
Melrose Industries PLC | 188,064 | 374 | |
MTU Aero Engines AG | 1,103 | 267 | |
Ashtead Group PLC | 4,080 | 267 | |
International Container Terminal Services, Inc. | 63,870 | 262 | |
ASSA ABLOY AB, Class B | 9,273 | 246 | |
NIBE Industrier AB, Class B | 26,384 | 237 | |
Kingspan Group PLC | 2,181 | 212 | |
Aena SME, SA, non-registered shares1,2 | 1,189 | 195 | |
SMC Corp. | 300 | 178 | |
4,857 | |||
Information technology 12.14% | |||
Taiwan Semiconductor Manufacturing Company, Ltd. | 35,000 | 754 | |
ASML Holding NV | 1,064 | 714 | |
Nomura Research Institute, Ltd. | 15,100 | 522 | |
Nice, Ltd. (ADR)2 | 2,181 | 493 | |
Atlassian Corp. PLC, Class A2 | 1,249 | 382 | |
Fujitsu, Ltd. | 2,600 | 375 | |
NXP Semiconductors NV | 1,182 | 225 | |
Samsung Electronics Co., Ltd. | 3,716 | 223 | |
Shopify, Inc., Class A, subordinate voting shares2 | 305 | 212 | |
Snowflake, Inc., Class A2 | 765 | 203 |
Capital Group International Focus Equity ETF — Page 1 of 5
unaudited
Common stocks (continued) Information technology (continued) | Shares | Value (000) | |
SK hynix, Inc. | 1,701 | $175 | |
Keyence Corp. | 300 | 140 | |
4,418 | |||
Health care 11.02% | |||
Daiichi Sankyo Company, Ltd. | 56,500 | 1,373 | |
Olympus Corp. | 29,100 | 582 | |
WuXi Biologics (Cayman), Inc.1,2 | 57,000 | 469 | |
Grifols, SA, Class A, non-registered shares | 20,448 | 390 | |
WuXi AppTec Co., Ltd., Class H1 | 22,000 | 312 | |
M3, Inc. | 7,300 | 271 | |
Hapvida Participacoes e Investimentos SA1 | 112,290 | 265 | |
Alcon, Inc. | 2,996 | 232 | |
CanSino Biologics, Inc., Class H1,2 | 6,400 | 115 | |
4,009 | |||
Materials 9.78% | |||
First Quantum Minerals, Ltd. | 49,937 | 1,465 | |
Vale SA, ordinary nominative shares (ADR) | 41,729 | 772 | |
Shin-Etsu Chemical Co., Ltd. | 2,800 | 430 | |
BASF SE | 4,702 | 312 | |
Fortescue Metals Group, Ltd. | 23,447 | 309 | |
Linde PLC (EUR denominated) | 925 | 270 | |
3,558 | |||
Energy 9.68% | |||
Reliance Industries, Ltd. | 47,148 | 1,477 | |
Petróleo Brasileiro SA (Petrobras), ordinary nominative shares (ADR) | 56,536 | 808 | |
Cenovus Energy, Inc. | 23,437 | 369 | |
Neste OYJ | 8,832 | 348 | |
TotalEnergies SE | 5,165 | 264 | |
Canadian Natural Resources, Ltd. (CAD denominated) | 4,569 | 255 | |
3,521 | |||
Consumer discretionary 9.53% | |||
MercadoLibre, Inc.2 | 747 | 842 | |
Evolution AB1 | 4,484 | 521 | |
Sony Group Corp. | 4,400 | 452 | |
LVMH Moët Hennessy-Louis Vuitton SE | 491 | 363 | |
Ferrari NV | 1,558 | 337 | |
Grab Holdings, Ltd., Class A2 | 47,489 | 273 | |
Entain PLC2 | 10,194 | 230 | |
Coupang, Inc., Class A2 | 8,528 | 226 | |
Maruti Suzuki India, Ltd. | 2,045 | 226 | |
3,470 | |||
Communication services 3.79% | |||
Bharti Airtel, Ltd.2 | 65,210 | 594 | |
Sea, Ltd., Class A (ADR)2 | 2,675 | 389 | |
Universal Music Group NV | 8,934 | 204 | |
Ubisoft Entertainment SA2 | 3,526 | 191 | |
1,378 |
Capital Group International Focus Equity ETF — Page 2 of 5
unaudited
Common stocks (continued) Consumer staples 2.83% | Shares | Value (000) | |
Danone SA | 5,411 | $329 | |
Kweichow Moutai Co., Ltd., Class A | 1,000 | 284 | |
Treasury Wine Estates, Ltd. | 26,998 | 228 | |
British American Tobacco PLC | 4,349 | 190 | |
1,031 | |||
Utilities 1.96% | |||
ENN Energy Holdings, Ltd. | 49,100 | 713 | |
Total common stocks (cost: $34,284,000) | 34,247 | ||
Short-term securities 7.45% Money market investments 7.45% | |||
Capital Group Central Cash Fund 0.15%3,4 | 27,102 | 2,710 | |
Total short-term securities (cost: $2,710,000) | 2,710 | ||
Total investment securities 101.57% (cost: $36,994,000) | 36,957 | ||
Other assets less liabilities (1.57)% | (572) | ||
Net assets 100.00% | $36,385 |
Investments in affiliates4
Value of affiliate at 2/22/20225 (000) | Additions (000) | Reductions (000) | Net realized gain (000) | Net unrealized depreciation (000) | Value of affiliate at 2/28/2022 (000) | Dividend income (000) | |
Short-term securities 7.45% | |||||||
Money market investments 7.45% | |||||||
Capital Group Central Cash Fund 0.15%3 | $— | $4,870 | $2,160 | $—6 | $(—)6 | $2,710 | $—6 |
1 | Acquired in a transaction exempt from registration under Rule 144A of the Securities Act of 1933. May be resold in the U.S. in transactions exempt from registration, normally to qualified institutional buyers. The total value of all such securities was $2,749,000, which represented 7.56% of the net assets of the fund. |
2 | Security did not produce income during the last 12 months. |
3 | Rate represents the seven-day yield at February 28, 2022. |
4 | Part of the same "group of investment companies" as the fund as defined under the Investment Company Act of 1940, as amended. |
5 | Commencement of operations. |
6 | Amount less than one thousand. |
Valuation disclosures
Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by accounting principles generally accepted in the United States of America. The net asset value per share is calculated once daily as of the close of regular trading on the New York Stock Exchange, normally 4 p.m. New York time, each day the New York Stock Exchange is open. Security transactions are recorded by the fund as of the date the trades are executed with brokers. Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date.
Methods and inputs — The fund’s investment adviser uses the following methods and inputs to establish the fair value of the fund’s assets and liabilities. Use of particular methods and inputs may vary over time based on availability and relevance as market and economic conditions evolve.
Capital Group International Focus Equity ETF — Page 3 of 5
unaudited
Equity securities are generally valued at the official closing price of, or the last reported sale price on, the exchange or market on which such securities are traded, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price. Prices for each security are taken from the principal exchange or market on which the security trades.
Fixed-income securities, including short-term securities, are generally valued at prices obtained from one or more pricing vendors. Vendors value such securities based on one or more of the inputs described in the following table. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed-income securities in which the fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income security.
Fixed-income class | Examples of standard inputs |
All | Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”) |
Corporate bonds, notes & loans; convertible securities | Standard inputs and underlying equity of the issuer |
Bonds & notes of governments & government agencies | Standard inputs and interest rate volatilities |
Mortgage-backed; asset-backed obligations | Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information |
When the fund’s investment adviser deems it appropriate to do so (such as when vendor prices are unavailable or deemed to be not representative), fixed-income securities will be valued in good faith at the mean quoted bid and ask prices that are reasonably and timely available (or bid prices, if ask prices are not available) or at prices for securities of comparable maturity, quality and type.
Securities with both fixed-income and equity characteristics, or equity securities traded principally among fixed-income dealers, are generally valued in the manner described for either equity or fixed-income securities, depending on which method is deemed most appropriate by the fund’s investment adviser. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds“), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.
Securities and other assets for which representative market quotations are not readily available or are considered unreliable by the fund’s investment adviser are fair valued as determined in good faith under fair value guidelines adopted by authority of the fund’s board of trustees as further described. The investment adviser follows fair valuation guidelines, consistent with U.S. Securities and Exchange Commission rules and guidance, to consider relevant principles and factors when making fair value determinations. The investment adviser considers relevant indications of value that are reasonably and timely available to it in determining the fair value to be assigned to a particular security, such as the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events occurring after the close of trading in the security; and changes in overall market conditions. In addition, the closing prices of equity securities and futures that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of the fund is determined. Fair valuations and valuations of investments that are not actively trading involve judgment and may differ materially from valuations that would have been used had greater market activity occurred.
Processes and structure — The fund’s board of trustees has delegated authority to the fund’s investment adviser to make fair value determinations, subject to board oversight. The investment adviser has established a Joint Fair Valuation Committee (the “Fair Valuation Committee”) to administer, implement and oversee the fair valuation process, and to make fair value decisions. The Fair Valuation Committee regularly reviews its own fair value decisions, as well as decisions made under its standing instructions to the investment adviser’s valuation teams. The Fair Valuation Committee reviews changes in fair value measurements from period to period and may, as deemed appropriate, update the fair valuation guidelines to better reflect the results of back testing and address new or evolving issues. The Fair Valuation Committee reports any changes to the fair valuation guidelines to the board of trustees. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.
The fund’s investment adviser has also established a Fixed-Income Pricing Review Group to administer and oversee the fixed-income valuation process, including the use of fixed-income pricing vendors. This group regularly reviews pricing vendor information and market data. Pricing decisions, processes and controls over security valuation are also subject to additional internal reviews facilitated by the investment adviser’s global risk management group.
Capital Group International Focus Equity ETF — Page 4 of 5
unaudited
Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. Level 3 values are based on significant unobservable inputs that reflect the investment adviser’s determination of assumptions that market participants might reasonably use in valuing the securities. The valuation levels are not necessarily an indication of the risk or liquidity associated with the underlying investment. For example, U.S. government securities are reflected as Level 2 because the inputs used to determine fair value may not always be quoted prices in an active market. At February 28, 2022, all of the fund’s investments were classified as Level 1.
Key to abbreviations |
ADR = American Depositary Receipts |
CAD = Canadian dollars |
EUR = Euros |
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectus, which can be obtained from your financial professional and should be read carefully before investing. You may also call American Funds Service Company (AFS) at (800) 421-4225 or visit the Capital Group website at capitalgroup.com.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
American Funds Distributors, Inc., member FINRA.
© 2022 Capital Group. All rights reserved.
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