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: 811-23759
Thrivent ETF Trust
(Exact name of registrant as specified in charter)
901 Marquette Avenue, Suite 2500
Minneapolis, Minnesota 55402-3211
(Address of principal executive offices) (Zip code)
John D. Jackson, Secretary and Chief Legal Officer
Thrivent ETF Trust
901 Marquette Avenue, Suite 2500
Minneapolis, Minnesota 55402-3211
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612) 844-7190
Date of fiscal year end: September 30
Date of reporting period: March 31, 2023
Item 1. Report to Stockholders
(a) | A copy of the registrant’s report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the “Act”), as amended, is provided. |
March 31, 2023
President
Thrivent ETF Trust
The Fed’s efforts have managed to slow inflation in some areas—energy prices have dropped, corporate earnings growth has slipped, and manufacturing activity has declined—but consumers continue to face rising prices in some areas.
The two leading sectors of the S&P 500 in the first quarter were Information Technology, up 21.82% for the quarter, and Communications Services, up 20.50%. Other leading sectors included Consumer Discretionary, up 16.13%, and Materials, up 4.29%. Rocked by the banking crisis, the Financials sector was down 9.55% in March and 5.56% in the first quarter.
With expectations for a challenging macroeconomic environment, credit risk is elevated and will impact corporate and high yield bond returns over the balance of the year. Higher risk areas of the fixed income markets now trade at yields that are substantially higher than the rest of the bond market, a reflection of increasing economic risk.
Chief Investment Officer
Thrivent ETF Trust
Portfolio Composition | |
(% of Portfolio) | |
Common Stock | 98.4% |
U.S. Treasury Obligations | 1.6% |
Total | 100.0% |
Major Market Sectors | |
(% of Net Assets) | |
Industrials | 21.5% |
Financials | 14.4% |
Information Technology | 13.7% |
Consumer Discretionary | 13.1% |
Real Estate | 8.4% |
Materials | 8.3% |
Health Care | 8.0% |
Consumer Staples | 4.3% |
Utilities | 2.7% |
Energy | 2.3% |
Communication Services | 1.6% |
Top 10 Holdings | ||
(% of Net Assets) | ||
Timken Co. | 2.6% | |
Lamb Weston Holdings, Inc. | 2.5% | |
Quanta Services, Inc. | 2.5% | |
Arch Capital Group, Ltd. | 2.4% | |
Littelfuse, Inc. | 2.3% | |
R1 RCM, Inc. | 2.3% | |
Fair Isaac Corp. | 2.2% | |
Wyndham Hotels & Resorts, Inc. | 2.2% | |
Burlington Stores, Inc. | 2.2% | |
Skyline Champion Corp. | 2.2% | |
These securities represent 23.4% of the total net assets of the fund. |
The lists of Major Market Sectors and Top 10 Holdings exclude short-term investments and collateral held for securities loaned.
The Portfolio Composition chart excludes collateral held for securities loaned. The Top 10 Holdings chart does not include derivatives.
(unaudited)
Beginning Account Value 10/1/22 | Ending Account Value 3/31/23 | Expenses Paid During Period 10/1/22 – 3/31/23* | Annualized Expense Ratio | |
Thrivent Small-Mid Cap ESG ETF | ||||
Actual | $1,000.00 | $1,076.50 | $3.29** | 0.65 % |
Hypothetical*** | $1,000.00 | $1,021.70 | $3.28 | 0.65 % |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/365 to reflect the one-half year period. |
** | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 178/365 to reflect the inception date short period. |
*** | Assuming 5% annualized total return before expenses. |
Schedule of Investments as of March 31, 2023(unaudited)
Shares | Common Stock (98.3%) | Value |
Communication Services (1.6%) | ||
25,029 | Ziff Davis, Inc.a | $1,953,513 |
Total | 1,953,513 | |
Consumer Discretionary (13.1%) | ||
21,228 | Aptiv plca | 2,381,569 |
13,337 | Burlington Stores, Inc.a | 2,695,408 |
4,230 | Domino's Pizza, Inc. | 1,395,350 |
35,311 | Skyline Champion Corp.a | 2,656,447 |
10,804 | Tractor Supply Co. | 2,539,372 |
7,437 | Vail Resorts, Inc. | 1,737,878 |
40,245 | Wyndham Hotels & Resorts, Inc. | 2,730,623 |
Total | 16,136,647 | |
Consumer Staples (4.3%) | ||
39,545 | Darling Ingredients, Inc.a | 2,309,428 |
29,073 | Lamb Weston Holdings, Inc. | 3,038,710 |
Total | 5,348,138 | |
Energy (2.3%) | ||
98,879 | NOV, Inc. | 1,830,250 |
71,601 | TechnipFMC plca | 977,354 |
Total | 2,807,604 | |
Financials (14.4%) | ||
7,302 | Ameriprise Financial, Inc. | 2,238,063 |
43,755 | Arch Capital Group, Ltd.a | 2,969,652 |
26,751 | Banner Corp. | 1,454,452 |
73,015 | Berkshire Hills Bancorp, Inc. | 1,829,756 |
77,546 | Cadence Bank | 1,609,855 |
43,244 | Enterprise Financial Services Corp. | 1,928,250 |
6,290 | Kinsale Capital Group, Inc. | 1,887,943 |
22,760 | Raymond James Financial, Inc. | 2,122,825 |
28,376 | Triumph Financial, Inc.a | 1,647,511 |
Total | 17,688,307 | |
Health Care (8.0%) | ||
53,626 | Envista Holdings Corp.a | 2,192,231 |
22,871 | Halozyme Therapeutics, Inc.a | 873,443 |
10,306 | Laboratory Corp. of America Holdings | 2,364,403 |
51,247 | Progyny, Inc.a | 1,646,054 |
186,161 | R1 RCM, Inc.a | 2,792,415 |
Total | 9,868,546 | |
Industrials (21.5%) | ||
16,213 | Advanced Drainage Systems, Inc. | 1,365,297 |
21,417 | ASGN, Inc.a | 1,770,543 |
44,135 | Barnes Group, Inc. | 1,777,758 |
6,654 | Carlisle Cos., Inc. | 1,504,270 |
71,722 | Core & Main, Inc.a | 1,656,778 |
11,389 | Forward Air Corp. | 1,227,279 |
21,902 | ManpowerGroup, Inc. | 1,807,572 |
18,118 | Quanta Services, Inc. | 3,019,183 |
17,419 | Regal Rexnord Corp. | 2,451,376 |
8,646 | Saia, Inc.a | 2,352,404 |
38,763 | Timken Co. | 3,167,712 |
5,633 | United Rentals, Inc. | 2,229,316 |
13,353 | WESCO International, Inc. | 2,063,573 |
Total | 26,393,061 | |
Information Technology (13.7%) | ||
18,951 | Concentrix Corp. | 2,303,494 |
17,906 | Entegris, Inc. | 1,468,471 |
3,935 | Fair Isaac Corp.a | 2,765,085 |
Shares | Common Stock (98.3%) | Value |
Information Technology (13.7%) – continued | ||
8,449 | Insight Enterprises, Inc.a | $1,207,869 |
21,723 | Lattice Semiconductor Corp.a | 2,074,546 |
10,575 | Littelfuse, Inc. | 2,835,052 |
4,413 | Paycom Software, Inc.a | 1,341,596 |
4,818 | Tyler Technologies, Inc.a | 1,708,656 |
17,565 | Wolfspeed, Inc.a | 1,140,847 |
Total | 16,845,616 | |
Materials (8.3%) | ||
37,396 | Berry Global Group, Inc. | 2,202,624 |
22,425 | Eastman Chemical Co. | 1,891,325 |
30,124 | Ingevity Corp.a | 2,154,468 |
20,863 | Steel Dynamics, Inc. | 2,358,771 |
57,116 | Summit Materials, Inc.a | 1,627,235 |
Total | 10,234,423 | |
Real Estate (8.4%) | ||
11,842 | Alexandria Real Estate Equities, Inc. | 1,487,237 |
13,609 | Life Storage, Inc. | 1,784,004 |
12,005 | Mid-America Apartment Communities, Inc. | 1,813,235 |
32,670 | National Storage Affiliates Trust | 1,364,952 |
34,784 | Regency Centers Corp. | 2,128,085 |
30,103 | Rexford Industrial Realty, Inc. | 1,795,644 |
Total | 10,373,157 | |
Utilities (2.7%) | ||
56,209 | CenterPoint Energy, Inc. | 1,655,917 |
15,383 | Entergy Corp. | 1,657,365 |
Total | 3,313,282 | |
Total Common Stock (Cost $117,740,992) | 120,962,294 |
Shares or Principal Amount | Short-Term Investments (1.6%) | Value |
100,000 | U.S. Treasury Bills, 0.12%, 04/06/2023 b | 99,962 |
1,900,000 | U.S. Treasury Bills, 2.10%, 04/04/2023 b | 1,899,757 |
Total Short-Term Investments (Cost $1,999,342) | 1,999,719 | |
Total Investments (Cost $119,740,334) 99.9% | 122,962,013 | |
Other Assets and Liabilities, Net 0.1% | 107,115 | |
Total Net Assets 100.0% | $123,069,128 |
a | Non-income producing security. |
b | The interest rate shown reflects the yield. |
Gross unrealized appreciation | $7,639,336 |
Gross unrealized depreciation | (4,417,657) |
Net unrealized appreciation (depreciation) | $3,221,679 |
Cost for federal income tax purposes | $119,740,334 |
Schedule of Investments as of March 31, 2023(unaudited)
Investments in Securities | Total | Level 1 | Level 2 | Level 3 |
Common Stock | ||||
Communication Services | 1,953,513 | 1,953,513 | — | — |
Consumer Discretionary | 16,136,647 | 16,136,647 | — | — |
Consumer Staples | 5,348,138 | 5,348,138 | — | — |
Energy | 2,807,604 | 2,807,604 | — | — |
Financials | 17,688,307 | 17,688,307 | — | — |
Health Care | 9,868,546 | 9,868,546 | — | — |
Industrials | 26,393,061 | 26,393,061 | — | — |
Information Technology | 16,845,616 | 16,845,616 | — | — |
Materials | 10,234,423 | 10,234,423 | — | — |
Real Estate | 10,373,157 | 10,373,157 | — | — |
Utilities | 3,313,282 | 3,313,282 | — | — |
Short-Term Investments | 1,999,719 | — | 1,999,719 | — |
Total Investments at Value | $122,962,013 | $120,962,294 | $1,999,719 | $— |
Statement of Assets and Liabilities
As of March 31, 2023 (unaudited) | Small-Mid Cap ESG ETF |
Assets | |
Investments in unaffiliated securities at cost | $119,740,334 |
Investments in unaffiliated securities, at value | 122,962,013 |
Cash | 7,574 |
Dividends and interest receivable | 117,364 |
Receivable for: | |
Investments sold | 109,976 |
Fund shares sold | 3,012,718 |
Total Assets | 126,209,645 |
Liabilities | |
Payable for: | |
Investments purchased | 3,078,227 |
Investment advisory fees | 62,290 |
Total Liabilities | 3,140,517 |
Net Assets | |
Capital stock (beneficial interest) | 119,646,249 |
Distributable earnings/(accumulated loss) | 3,422,879 |
Total Net Assets | $123,069,128 |
Shares of beneficial interest outstanding | 4,424,000 |
Net asset value per share | $27.82 |
Statement of Operations
For the six months ended March 31, 2023 (unaudited) | Small-Mid Cap ESG ETF# |
Investment Income | |
Dividend | $474,386 |
Interest | 10,886 |
Other | 15 |
Total Investment Income | 485,287 |
Expenses | |
Adviser fees | 227,782 |
Total Expenses Before Reimbursement | 227,782 |
Less: | |
Reimbursement from adviser | — |
Total Net Expenses | 227,782 |
Net Investment Income/(Loss) | 257,505 |
Realized and Unrealized Gains/(Losses) | |
Net realized gains/(losses) on: | |
Investments | 48,705 |
Change in net unrealized appreciation/(depreciation) on: | |
Investments | 3,221,679 |
Net Realized and Unrealized Gains/(Losses) | 3,270,384 |
Net Increase/(Decrease) in Net Assets Resulting From Operations | $3,527,889 |
# | For the period from October 5, 2022 (inception) through March 31, 2023. |
Statement of Changes in Net Assets
For the period ended March 31, 2023 (unaudited) | Small-Mid Cap ESG ETF# |
Operations | |
Net investment income/(loss) | $257,505 |
Net realized gains/(losses) | 48,705 |
Change in net unrealized appreciation/(depreciation) | 3,221,679 |
Net Change in Net Assets Resulting From Operations | 3,527,889 |
Distributions to Shareholders | |
From net investment income/net realized gains | (105,010 ) |
Total Distributions to Shareholders | (105,010 ) |
Capital Stock Transactions | |
Sold | 123,326,205 |
Distributions reinvested | — |
Redeemed | (3,679,956 ) |
Total Capital Stock Transactions | 119,646,249 |
Net Increase/(Decrease) in Net Assets | 123,069,128 |
Net Assets, Beginning of Period | — |
Net Assets, End of Period | $123,069,128 |
Capital Stock Share Transactions | |
Sold | 4,564,000 |
Distributions reinvested | — |
Redeemed | (140,000 ) |
Total Capital Stock Share Transactions | 4,424,000 |
# | For the period from October 5, 2022 (inception) through March 31, 2023. |
Notes to Financial Statements
March 31, 2023
(unaudited)
Notes to Financial Statements
March 31, 2023
(unaudited)
Notes to Financial Statements
March 31, 2023
(unaudited)
Notes to Financial Statements
March 31, 2023
(unaudited)
Notes to Financial Statements
March 31, 2023
(unaudited)
Notes to Financial Statements
March 31, 2023
(unaudited)
Notes to Financial Statements
March 31, 2023
(unaudited)
Financial Highlights
Per Share Outstanding Throughout Each Period * | ||||||
Income from Investment Operations | Less Distributions From | |||||
Net Asset Value, Beginning of Period | Net Investment Income/(Loss) | Net Realized and Unrealized Gain/(Loss) on Investments (a) | Total from Investment Operations | Net Investment Income | Net Realized Gain on Investments | |
Small-Mid Cap ESG ETF# | ||||||
Period Ended 3/31/2023 (unaudited) | $25.00 | $0.10 | $2.72 | $2.82 | $0.00 | $0.00 |
(a) | The amount shown may not correlate with the change in aggregate gains and losses of portfolio securities due to the timing of sales and redemptions of fund shares. |
(b) | Total return assumes dividend reinvestment and does not reflect any deduction for applicable sales charges. Not annualized for periods less than one year. |
* | All per share amounts have been rounded to the nearest cent. |
** | Computed on an annualized basis for periods less than one year. |
# | For the period from October 5, 2022 (inception) through March 31, 2023. |
Financial Highlights
Ratios/Supplemental Data | ||||||||
Ratio to Average Net Assets** | Ratio to Average Net Assets Before Expenses Waived, Credited or Acquired Fund Fees and Expenses ** | |||||||
Total Distributions | Net Asset Value, End of Period | Total Return (b) | Net Assets, End of Period (in millions) | Expenses | Net Investment Income/ (Loss) | Expenses | Net Investment Income/(Loss) | Portfolio Turnover Rate |
$0.00 | $27.82 | 7.65 | $123.1 | 0.65% | 0.74% | 0.65% | 0.74% | 22% |
(unaudited)
(unaudited)
(unaudited)
Appleton, WI 54919-0001
(b) | A form of the notice transmitted to shareholders in reliance on Rule 30e-3 under the Act is provided. |
ID: | 12345 12345 12345 12345 |
Important Fund Report(s) Now Available Online and In Print by Request. Annual and Semi-Annual Reports contain important information about the fund, including its holdings and financials. We encourage you to review the report(s) at the website listed or by scanning the QR Code below:
thriventETFs.com/prospectus
Thrivent Small-Mid Cap ESG ETF
Request a printed/email report at no charge and/or elect to receive paper reports in the future, by calling or visiting (otherwise you will not receive a paper/email report): 1-866-345-5954 www.FundReports.com |
Save Time! Scan this QR Code with your mobile device camera for easy access to Fund Material. |
Item 2. Code of Ethics
Not applicable to semiannual report
Item 3. Audit Committee Financial Expert
Not applicable to semiannual report
Item 4. Principal Accountant Fees and Services
Not applicable to semiannual report
Item 5. Audit Committee of Listed Registrants
Not applicable
Item 6. Investments
(a) | Registrant’s Schedule of Investments is included in the report to shareholders filed under Item 1. |
(b) | Not applicable to this filing. |
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
There have been no material changes to the procedures by which shareholders may recommend nominees to registrant’s board of trustees.
Item 11. Controls and Procedures
(a) | Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that 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 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, 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) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. |
(a)(2) |
(a)(3) | Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable. |
(a)(4) | Change in the registrant’s independent public accountant: Not applicable |
(b) |
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.
Date: May 23, 2023 | Thrivent ETF Trust | |||||
By: | /s/ Michael W. Kremenak | |||||
Michael W. Kremenak | ||||||
President |
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.
Date: May 23, 2023 | By: | /s/ Michael W. Kremenak | ||||
Michael W. Kremenak | ||||||
President | ||||||
(principal executive officer) | ||||||
Date: May 23, 2023 | By: | /s/ Sarah L. Bergstrom | ||||
Sarah L. Bergstrom | ||||||
Treasurer and Principal Accounting Officer | ||||||
(principal financial officer) |