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Annual
Report |
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August
31, 2023 |
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American
Century®
Mid Cap Growth Impact ETF (MID) |
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American
Century®
Sustainable Equity ETF (ESGA) |
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American
Century®
Sustainable Growth ETF (ESGY) |
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President’s
Letter |
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Mid
Cap Growth Impact ETF |
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Performance |
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Portfolio
Commentary |
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Fund
Characteristics |
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Sustainable
Equity ETF |
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Performance |
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Portfolio
Commentary |
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Fund
Characteristics |
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Sustainable
Growth ETF |
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Performance |
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Portfolio
Commentary |
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Fund
Characteristics |
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Shareholder
Fee Examples |
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Schedules
of Investments |
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Statements
of Assets and Liabilities |
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Statements
of Operations |
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Statements
of Changes in Net Assets |
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Notes
to Financial Statements |
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Financial
Highlights |
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Report
of Independent Registered Public Accounting Firm |
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Management |
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Approval
of Management Agreement |
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Liquidity
Risk Management Program |
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Additional
Information |
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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.
Jonathan
Thomas
Dear
Investor:
Thank
you for reviewing this annual report for the period ended August 31, 2023.
Annual reports help convey important information about fund returns, including
market factors that affected performance. For additional investment insights,
please visit americancentury.com.
Stocks
Rebounded, Bonds Struggled
Asset
class returns, particularly for U.S. and global stocks, improved dramatically
compared with the previous fiscal year. The bounce back occurred despite ongoing
volatility, rising interest rates and Fitch Ratings’ first-ever downgrade of
U.S. debt.
Investor
expectations for the Federal Reserve (Fed) to conclude its rate-hike campaign
partly fueled the optimism. Inflation’s steady slowdown, mounting recession
worries and a series of U.S. regional bank failures prompted investors to
regularly recalibrate their monetary policy outlooks. However, with inflation
still higher than central bank targets, the Fed and its developed markets peers
continued to raise interest rates.
After
pausing in June, the Fed resumed its tightening campaign in July, raising rates
to a range of 5.25% to 5.5%, a 22-year high. Citing still-higher-than-target
inflation and still-strong economic data, policymakers left their future policy
options open. Inflation remained even higher in the eurozone and the U.K.,
prompting central bankers there to steadily raise interest rates. Government
bond yields soared, including the benchmark 10-year Treasury yield, which surged
to a 16-year high late in the period.
Despite
the inflation and rate backdrops, better-than-expected corporate earnings helped
the S&P 500 Index return 15.94% for the 12-month period. Non-U.S. developed
markets stocks delivered modestly higher returns, while emerging markets stocks
gained only 1.25%. Meanwhile, amid elevated inflation and sharply higher
Treasury yields, most U.S. bond and other rate-sensitive sectors declined,
though not as much as in the prior fiscal year. Exceptions included corporate
and municipal bonds, which delivered modest gains.
Remaining
Diligent in Uncertain Times
We
expect market volatility to linger as investors navigate a complex environment
of persistent inflation, tighter financial conditions, banking industry
turbulence and recession risk. In addition, increasingly tense geopolitical
considerations complicate the market backdrop.
We
appreciate your confidence in us during these extraordinary times. American
Century Investments has a long history of helping clients weather unpredictable
and volatile markets, and we’re confident we will continue to meet today’s
challenges.
Sincerely,
Jonathan
Thomas
President
and Chief Executive Officer
American
Century Investments
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Mid
Cap Growth Impact ETF (MID) |
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Total
Returns as of August 31, 2023 |
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Average
Annual Returns |
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1
year |
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Since
Inception |
Inception
Date |
Net
Asset Value |
6.78% |
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6.63% |
7/13/2020 |
Market
Price |
6.80% |
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6.63% |
7/13/2020 |
Russell
Midcap Growth Index |
13.00% |
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|
6.97% |
— |
Market
price is determined using the bid/ask midpoint at 4:00 p.m. Eastern time, when
the net asset value (NAV) is typically calculated. Market performance does not
represent the returns you would receive if you traded shares at other times. NAV
prices are used to calculate market price performance prior to the date when the
fund first traded on the NYSE Arca, Inc.
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Growth
of $10,000 Over Life of Fund |
$10,000
investment made July 13, 2020 |
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Value
on August 31, 2023 |
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Net
Asset Value — $12,228 |
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Russell
Midcap Growth Index — $12,352 |
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Total
Annual Fund Operating Expenses |
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0.45% |
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The
total annual fund operating expenses shown is as stated in the fund’s prospectus
current as of the date of this report. The prospectus may vary from the expense
ratio shown elsewhere in this report because it is based on a different time
period, includes acquired fund fees and expenses, and, if applicable, does not
include fee waivers or expense reimbursements.
Data
presented reflect past performance. Past performance is no guarantee of future
results. Current performance may be higher or lower than the performance shown.
Total returns for periods less than one year are not annualized. Investment
return and principal value will fluctuate, and redemption value may be more or
less than original cost. Data assumes reinvestment of dividends and capital
gains, and none of the charts reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. To obtain
performance data current to the most recent month end, please call
1-800-345-6488 or visit americancentury.com. For additional information about
the funds, please consult the prospectus.
Portfolio
Managers: Rob Brookby, Nalin Yogasundram and Rene Casis
Performance
Review
American
Century Mid Cap Growth Impact ETF returned 6.80% on a market price basis for the
12-month period ended August 31, 2023. On a net asset value (NAV) basis, the
fund returned 6.78%. For the same time period, the Russell Midcap Growth Index,
the fund’s benchmark, returned 13.00%. The fund’s NAV and market price returns
reflect fees and operating expenses, while the index return does not.
Health
Care Detracted
An
overweight allocation to pharmaceuticals hampered performance in the health care
sector relative to the benchmark. The chief financial officer of Catalent, a
contract drug manufacturer, left the firm as the company restated prior
financial statements, delayed its quarterly earnings call and lowered guidance.
Operational and financial missteps eroded investor confidence in management’s
ability to execute. We eliminated our holding. Biotechnology company Viking
Therapeutics underperformed over concerns about competition from
large-capitalization pharmaceutical companies related to the company’s obesity
and NASH (nonalcoholic steatohepatitis, or fatty liver) drugs in development.
Stock
choices in information technology also detracted. Enphase Energy was the fund’s
top detractor. The maker of microinverters for solar panels fell on sluggish
demand for solar amid higher interest rates. Keysight Technologies detracted.
The company manufactures test and measurement instruments for use in
communications, networking and electronics applications. It posted mixed
quarterly results with revenues and earnings that beat expectations but new
orders that lagged. The company also issued disappointing guidance. Generac
Holdings, which manufactures generators, preannounced revenue and earnings that
were below consensus, citing rising inventories and lower dealer orders for its
core product. We sold our holding.
Industrials
Benefited Performance
Stock
selection among electrical equipment companies led positive contributors in the
industrials sector. Vertiv Holdings was the fund’s top contributor. The
manufacturer of power and cooling equipment for data centers reported strong
results driven by increased spending by large cloud computing providers and data
center real estate investment trusts to meet increased demand from artificial
intelligence. The financials sector also was a solid contributor. Performance
was led by our lack of exposure to the banks that were most involved in a
liquidity crisis early in 2023.
Elsewhere,
IVERIC bio was a top contributor. Astellas Pharma agreed to acquire the
biotechnology company, sending IVERIC’s stock higher. Our holding was eliminated
due to the acquisition. Manhattan Associates, a provider of warehouse management
software solutions, began to see an acceleration by customers moving from
on-premise to its cloud offering. Cadence Design Systems sells software to help
design semiconductor chips. Semiconductor companies have to spend on research
and development regardless of economic conditions, which benefits
Cadence.
Because
the portfolio managers consider the United Nations Sustainable Development Goals
(SDG) in stock selection, the fund may exclude the securities of certain issuers
for extra-financial reasons, and the fund may forgo some market opportunities
available to funds that do not consider SDG. The fund’s investment process may
also result in the portfolio investing in securities or industry sectors that
perform differently or maintain a different risk profile than the market
generally or compared to funds that do not use the SDG. SDG considerations may
be linked to long-term rather than short-term returns. Furthermore, when
analyzing securities for SDG impact, the portfolio managers rely on the veracity
of management’s claims about its business operations and governance, as well as
information published by commercial and industry sources. Stocks selected by the
portfolio managers may perform differently or not have the impact expected due
to the portfolio managers’ judgments given available information, the weight
placed on each SDG and changes from historical trends. There is no guarantee
that the investment process will result in effective investment decisions for
the fund.
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AUGUST
31, 2023 |
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Mid
Cap Growth Impact ETF |
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Types
of Investments in Portfolio |
%
of net assets |
Common
Stocks |
97.4% |
Short-Term
Investments |
2.6% |
Other
Assets and Liabilities |
—* |
*Category
is less than 0.05% of total net assets. |
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|
Top
Five Industries |
%
of net assets |
Software |
14.8% |
Chemicals |
7.9% |
Semiconductors
and Semiconductor Equipment |
7.8% |
Hotels,
Restaurants and Leisure |
7.3% |
Life
Sciences Tools and Services |
7.2% |
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Sustainable
Equity ETF (ESGA) |
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Total
Returns as of August 31, 2023 |
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Average
Annual Returns |
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|
1
year |
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|
Since
Inception |
Inception
Date |
Net
Asset Value |
16.44% |
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|
12.81% |
7/13/2020 |
Market
Price |
16.51% |
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|
12.83% |
7/13/2020 |
S&P
500 Index |
15.94% |
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|
13.84% |
— |
Market
price is determined using the bid/ask midpoint at 4:00 p.m. Eastern time, when
the net asset value (NAV) is typically calculated. Market performance does not
represent the returns you would receive if you traded shares at other times. NAV
prices are used to calculate market price performance prior to the date when the
fund first traded on the NYSE Arca, Inc.
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Growth
of $10,000 Over Life of Fund |
$10,000
investment made July 13, 2020 |
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Value
on August 31, 2023 |
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Net
Asset Value — $14,590 |
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S&P
500 Index — $15,012 |
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Total
Annual Fund Operating Expenses |
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0.39% |
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The
total annual fund operating expenses shown is as stated in the fund’s prospectus
current as of the date of this report. The prospectus may vary from the expense
ratio shown elsewhere in this report because it is based on a different time
period, includes acquired fund fees and expenses, and, if applicable, does not
include fee waivers or expense reimbursements.
Data
presented reflect past performance. Past performance is no guarantee of future
results. Current performance may be higher or lower than the performance shown.
Total returns for periods less than one year are not annualized. Investment
return and principal value will fluctuate, and redemption value may be more or
less than original cost. Data assumes reinvestment of dividends and capital
gains, and none of the charts reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. To obtain
performance data current to the most recent month end, please call
1-800-345-6488 or visit americancentury.com. For additional information about
the funds, please consult the prospectus.
Portfolio
Managers: Joe Reiland, Justin Brown, Rob Bove and Rene Casis
Performance
Review
American
Century Sustainable Equity ETF returned 16.51% on a market price basis for its
fiscal year ended August 31, 2023. On a net asset value (NAV) basis, the fund
returned 16.44%. For the same time period, the S&P 500 Index, the fund’s
benchmark, returned 15.94%. The fund’s NAV and market price returns reflect fees
and operating expenses, while the index return does not.
Energy
Benefited Performance
Energy
companies benefited from rising oil and gas prices, especially during the first
half of our reporting period Schlumberger was a top contributor. The oil
services company reported better-than-expected revenues, margins and earnings.
Pricing was strong, supporting margins, and the company’s growing focus on its
new energy division (energy transition, low carbon solutions) continued to gain
momentum. The financials sector also was a solid contributor. Performance was
led by positive stock selection in the banking industry, where we did not own
holdings of the banks that were most involved in a liquidity crisis early in
2023, such as SVB Financial Group and First Republic Bank.
Elsewhere,
NVIDIA and Applied Materials were significant contributors. NVIDIA beat
quarterly expectations and raised guidance due to demand for its graphics
processing units for generative artificial intelligence, which relies on NVIDIA
for training models and inference (utilizing the model to perform a function).
The semiconductor equipment maker Applied Materials delivered strong results due
to its exposure to lagging edge demand and its substantial backlog. Also,
sentiment around its growth profile in 2024 improved.
Communication
Services Detracted
Stock
selection in the communication services sector weighed on performance relative
to the benchmark. We did not own benchmark component Netflix, which
outperformed, aided by its new advertising-supported streaming video tier. The
health care sector also hampered performance. CVS Health, a diversified health
services company, beat revenue and earnings expectations and reaffirmed guidance
for all of 2023. Nevertheless, the stock fell as investors worried about
potential drug pricing legislation, which could affect CVS Health’s pharmacy
benefit management business.
NextEra
Energy was the fund’s top detractor. Utilities generally underperformed on a
combination of higher interest rates and investor rotation to growth-oriented
sectors. Semiconductor company Broadcom detracted from relative performance
because the fund was underweight relative to the benchmark. Broadcom delivered
solid results and recently detailed strong exposure to artificial intelligence,
specifically in its custom ASIC and networking businesses. Broadcom was not in
the portfolio at the end of the period.
Because
the fund considers environmental, social and governance (ESG) metrics in
addition to fundamental financial metrics when selecting securities, its
portfolio may perform differently than funds that do not use ESG metrics. ESG
considerations may prioritize long-term rather than short-term returns.
Furthermore, when analyzing ESG criteria for securities, if the portfolio
management team relies on the information and scoring models published by
third-party sources, there is a risk that this information might be incorrect or
only take into account one of many ESG-related components of portfolio
companies. Moreover, scores and ratings across third-party providers may be
inconsistent or incomparable.
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AUGUST
31, 2023 |
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Sustainable
Equity ETF |
|
Types
of Investments in Portfolio |
%
of net assets |
Common
Stocks |
99.6% |
Short-Term
Investments |
0.3% |
Other
Assets and Liabilities |
0.1% |
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|
Top
Five Industries |
%
of net assets |
Software |
10.4% |
Semiconductors
and Semiconductor Equipment |
7.6% |
Interactive
Media and Services |
6.3% |
Technology
Hardware, Storage and Peripherals |
5.1% |
Health
Care Providers and Services |
4.3% |
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Sustainable
Growth ETF (ESGY) |
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Total
Returns as of August 31, 2023 |
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Average
Annual Returns |
|
|
1
year |
|
|
Since
Inception |
Inception
Date |
Net
Asset Value |
23.50% |
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|
2.86% |
6/29/2021 |
Market
Price |
23.56% |
|
|
2.88% |
6/29/2021 |
Russell
1000 Growth Index |
21.94% |
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|
2.51% |
— |
Market
price is determined using the bid/ask midpoint at 4:00 p.m. Eastern time, when
the net asset value (NAV) is typically calculated. Market performance does not
represent the returns you would receive if you traded shares at other times. NAV
prices are used to calculate market price performance prior to the date when the
fund first traded on the NYSE Arca, Inc.
|
|
|
Growth
of $10,000 Over Life of Fund |
$10,000
investment made June 29, 2021 |
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Value
on August 31, 2023 |
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Net
Asset Value — $10,632 |
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Russell
1000 Growth Index — $10,553 |
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Total
Annual Fund Operating Expenses |
|
|
|
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0.39% |
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|
The
total annual fund operating expenses shown is as stated in the fund’s prospectus
current as of the date of this report. The prospectus may vary from the expense
ratio shown elsewhere in this report because it is based on a different time
period, includes acquired fund fees and expenses, and, if applicable, does not
include fee waivers or expense reimbursements.
Data
presented reflect past performance. Past performance is no guarantee of future
results. Current performance may be higher or lower than the performance shown.
Total returns for periods less than one year are not annualized. Investment
return and principal value will fluctuate, and redemption value may be more or
less than original cost. Data assumes reinvestment of dividends and capital
gains, and none of the charts reflect the deduction of taxes that a shareholder
would pay on fund distributions or the redemption of fund shares. To obtain
performance data current to the most recent month end, please call
1-800-345-6488 or visit americancentury.com. For additional information about
the funds, please consult the prospectus.
Portfolio
Managers: Joe Reiland, Rob Bove, David Cross, Scott Marolf and Rene
Casis
Performance
Review
American
Century Sustainable Growth ETF returned 23.56% on a market price basis for the
12-month period ended August 31, 2023. On a net asset value (NAV) basis, the
fund returned 23.50%. For the same period, the Russell 1000 Growth Index, the
fund’s benchmark, returned 21.94%. The fund’s NAV and market price returns
reflect fees and operating expenses, while the index return does not.
Information
Technology Benefited Performance
Stock
selection and an overweight allocation in the semiconductors and semiconductor
equipment industry helped drive outperformance in information technology. Both
chipmakers and semiconductor equipment manufacturers benefited from strong chip
demand and excitement about artificial intelligence. Semiconductor company
NVIDIA posted strong revenue and earnings and raised guidance due to demand for
its graphics processing units for generative artificial intelligence, which
relies on NVIDIA for training models and inference (utilizing the model to
perform a function). ASML Holding, a Netherlands-based semiconductor capital
equipment maker, outperformed on demand for its photolithography systems. Fund
performance was also helped by not owning a lagging semiconductor company.
Qualcomm delivered weak results and guidance due to continued smartphone
inventory digestion caused by the macroeconomic uncertainty and a slower China
recovery.
Other
top contributors included Novo Nordisk. The Denmark-based pharmaceutical
company’s stock rose sharply on the strength of its weight-loss drugs Ozempic
and Wegovy, which are demonstrating positive results for heart-related and other
health issues tied to excess weight. Energy companies benefited from rising oil
and gas prices, especially during the first half of our reporting period
Schlumberger was a top contributor. The oil services company reported
better-than-expected revenues, margins and earnings. Pricing was strong,
supporting margins, and the company’s growing focus on its new energy division
(energy transition, low carbon solutions) continued to gain
momentum.
Communication
Services Hampered Performance
Stock
choices in the entertainment industry detracted from performance in
communication services. The Walt Disney Co. lagged due to a variety of issues,
including disappointing revenues in its streaming television service. We
eliminated the position.
Elsewhere,
semiconductor company Broadcom detracted from relative performance because the
fund was underweight relative to the benchmark. Broadcom delivered solid results
and recently detailed strong exposure to artificial intelligence. Broadcom was
not in the portfolio at the end of the period. UnitedHealth Group, the world’s
largest private health insurer, fell after a company executive said health care
costs were likely to soar as people resume elective procedures. Headwinds in the
managed health care industry weighed on Cigna Group. There is increased
congressional scrutiny of pharmacy benefit managers (PBM). Cigna has the highest
mix of PBM earnings within the group of publicly traded managed care companies.
Keysight Technologies detracted. The company manufactures test and measurement
instruments for use in communications, networking and electronics applications.
It posted mixed quarterly results and also issued disappointing guidance.
Because
the fund considers environmental, social and governance (ESG) metrics in
addition to fundamental financial metrics when selecting securities, its
portfolio may perform differently than funds that do not use ESG metrics. ESG
considerations may prioritize long-term rather than short-term returns.
Furthermore, when analyzing ESG criteria for securities, if the portfolio
management team relies on the information and scoring models published by
third-party sources, there is a risk that this information might be incorrect or
only take into account one of many ESG-related components of portfolio
companies. Moreover, scores and ratings across third-party providers may be
inconsistent or incomparable.
|
|
|
|
|
|
AUGUST
31, 2023 |
|
|
|
Sustainable
Growth ETF |
|
Types
of Investments in Portfolio |
%
of net assets |
Common
Stocks |
99.7% |
Short-Term
Investments |
0.3% |
Other
Assets and Liabilities |
—* |
*Category
is less than 0.05% of total net assets. |
|
|
|
Top
Five Industries |
%
of net assets |
Software |
21.5% |
Semiconductors
and Semiconductor Equipment |
10.9% |
Technology
Hardware, Storage and Peripherals |
10.1% |
Interactive
Media and Services |
9.6% |
Financial
Services |
6.2% |
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 March 1, 2023 to August 31,
2023.
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.
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Beginning Account
Value 3/1/23 |
Ending Account
Value 8/31/23 |
Expenses
Paid
During
Period(1)
3/1/23
- 8/31/23 |
Annualized
Expense
Ratio(1) |
Mid
Cap Growth Impact ETF |
|
|
Actual |
$1,000 |
$1,049.10 |
$2.32 |
0.45% |
Hypothetical |
$1,000 |
$1,022.94 |
$2.29 |
0.45% |
Sustainable
Equity ETF |
|
|
Actual |
$1,000 |
$1,133.40 |
$2.10 |
0.39% |
Hypothetical |
$1,000 |
$1,023.24 |
$1.99 |
0.39% |
Sustainable
Growth ETF |
|
|
Actual |
$1,000 |
$1,237.50 |
$2.20 |
0.39% |
Hypothetical |
$1,000 |
$1,023.24 |
$1.99 |
0.39% |
(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 184, 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.
AUGUST 31,
2023
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Mid
Cap Growth Impact ETF |
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|
Shares |
Value |
COMMON
STOCKS — 97.4% |
|
|
Aerospace
and Defense — 2.3% |
|
|
CAE,
Inc.(1) |
43,852 |
|
$ |
1,057,272 |
|
Automobile
Components — 7.2% |
|
|
Aptiv
PLC(1) |
20,826 |
|
2,112,798 |
|
Mobileye
Global, Inc., Class A(1) |
31,397 |
|
1,114,907 |
|
|
|
3,227,705 |
|
Biotechnology
— 6.5% |
|
|
Cytokinetics,
Inc.(1) |
24,248 |
|
847,225 |
|
Natera,
Inc.(1) |
8,340 |
|
489,808 |
|
Sarepta
Therapeutics, Inc.(1) |
7,804 |
|
944,362 |
|
Viking
Therapeutics, Inc.(1) |
45,683 |
|
630,883 |
|
|
|
2,912,278 |
|
Building
Products — 3.5% |
|
|
Trane
Technologies PLC |
7,802 |
|
1,601,438 |
|
Capital
Markets — 4.2% |
|
|
MSCI,
Inc. |
3,493 |
|
1,898,865 |
|
Chemicals
— 7.9% |
|
|
Avient
Corp. |
43,153 |
|
1,730,867 |
|
Element
Solutions, Inc. |
89,139 |
|
1,838,046 |
|
|
|
3,568,913 |
|
Commercial
Services and Supplies — 3.4% |
|
|
Republic
Services, Inc. |
10,539 |
|
1,518,986 |
|
Electrical
Equipment — 6.1% |
|
|
Vertiv
Holdings Co. |
70,458 |
|
2,775,341 |
|
Electronic
Equipment, Instruments and Components — 2.9% |
|
|
Keysight
Technologies, Inc.(1) |
9,847 |
|
1,312,605 |
|
Health
Care Equipment and Supplies — 6.3% |
|
|
Dexcom,
Inc.(1) |
15,820 |
|
1,597,504 |
|
GE
HealthCare Technologies, Inc. |
9,578 |
|
674,770 |
|
Lantheus
Holdings, Inc.(1) |
8,451 |
|
578,386 |
|
|
|
2,850,660 |
|
Health
Care Providers and Services — 1.0% |
|
|
R1
RCM, Inc.(1) |
25,931 |
|
447,050 |
|
Hotels,
Restaurants and Leisure — 7.3% |
|
|
Airbnb,
Inc., Class A(1) |
13,901 |
|
1,828,676 |
|
Chipotle
Mexican Grill, Inc.(1) |
753 |
1,450,760 |
|
|
|
3,279,436 |
|
Life
Sciences Tools and Services — 7.2% |
|
|
Bio-Techne
Corp. |
18,405 |
|
1,442,952 |
|
IQVIA
Holdings, Inc.(1) |
8,144 |
|
1,813,099 |
|
|
|
3,256,051 |
|
Oil,
Gas and Consumable Fuels — 2.8% |
|
|
Excelerate
Energy, Inc., Class A |
66,977 |
|
1,245,772 |
|
Professional
Services — 3.3% |
|
|
Jacobs
Solutions, Inc. |
11,024 |
|
1,486,256 |
|
|
|
|
|
|
|
|
|
|
Mid
Cap Growth Impact ETF |
|
|
|
Shares |
Value |
Semiconductors
and Semiconductor Equipment — 7.8% |
|
|
Enphase
Energy, Inc.(1) |
9,108 |
|
$ |
1,152,435 |
|
Monolithic
Power Systems, Inc. |
4,586 |
|
2,390,269 |
|
|
|
3,542,704 |
|
Software
— 14.8% |
|
|
Cadence
Design Systems, Inc.(1) |
10,130 |
|
2,435,657 |
|
DocuSign,
Inc.(1) |
30,022 |
|
1,510,107 |
|
Manhattan
Associates, Inc.(1) |
13,568 |
|
2,749,148 |
|
|
|
6,694,912 |
|
Textiles,
Apparel and Luxury Goods — 2.9% |
|
|
On
Holding AG, Class A(1) |
44,848 |
|
1,292,968 |
|
TOTAL
COMMON STOCKS
(Cost
$41,990,814) |
|
43,969,212 |
|
SHORT-TERM
INVESTMENTS — 2.6% |
|
|
Money
Market Funds — 2.6% |
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier
Class
(Cost
$1,167,829) |
1,167,829 |
|
1,167,829 |
|
TOTAL
INVESTMENT SECURITIES — 100.0%
(Cost
$43,158,643) |
|
45,137,041 |
|
OTHER
ASSETS AND LIABILITIES† |
|
4,635 |
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
45,141,676 |
|
|
|
|
|
|
|
|
|
|
NOTES
TO SCHEDULE OF INVESTMENTS |
†Category
is less than 0.05% of total net assets.
(1)Non-income
producing.
See
Notes to Financial Statements.
AUGUST 31,
2023
|
|
|
|
|
|
|
|
|
Sustainable
Equity ETF |
|
|
|
Shares |
Value |
COMMON
STOCKS — 99.6% |
|
|
Aerospace
and Defense — 0.9% |
|
|
Lockheed
Martin Corp. |
2,966 |
|
$ |
1,329,806 |
|
Air
Freight and Logistics — 0.8% |
|
|
United
Parcel Service, Inc., Class B |
6,953 |
|
1,177,838 |
|
Automobile
Components — 0.9% |
|
|
Aptiv
PLC(1) |
12,244 |
|
1,242,154 |
|
Automobiles
— 1.3% |
|
|
Tesla,
Inc.(1) |
7,084 |
|
1,828,239 |
|
Banks
— 2.9% |
|
|
Bank
of America Corp. |
42,547 |
|
1,219,822 |
|
JPMorgan
Chase & Co. |
14,772 |
|
2,161,587 |
|
Regions
Financial Corp. |
49,284 |
|
903,869 |
|
|
|
4,285,278 |
|
Beverages
— 1.5% |
|
|
PepsiCo,
Inc. |
12,403 |
|
2,206,742 |
|
Biotechnology
— 2.2% |
|
|
AbbVie,
Inc. |
11,573 |
|
1,700,768 |
|
Amgen,
Inc. |
3,902 |
|
1,000,239 |
|
Vertex
Pharmaceuticals, Inc.(1) |
1,629 |
|
567,446 |
|
|
|
3,268,453 |
|
Broadline
Retail — 2.7% |
|
|
Amazon.com,
Inc.(1) |
28,557 |
|
3,941,152 |
|
Building
Products — 1.5% |
|
|
Johnson
Controls International PLC |
25,286 |
|
1,493,391 |
|
Masco
Corp. |
12,194 |
|
719,568 |
|
|
|
2,212,959 |
|
Capital
Markets — 4.2% |
|
|
Ameriprise
Financial, Inc. |
2,693 |
|
909,103 |
|
BlackRock,
Inc. |
1,537 |
|
1,076,730 |
|
Charles
Schwab Corp. |
5,776 |
|
341,650 |
|
Intercontinental
Exchange, Inc. |
6,325 |
|
746,287 |
|
Morgan
Stanley |
25,781 |
|
2,195,252 |
|
S&P
Global, Inc. |
2,385 |
|
932,201 |
|
|
|
6,201,223 |
|
Chemicals
— 2.3% |
|
|
Air
Products & Chemicals, Inc. |
2,418 |
|
714,495 |
|
Ecolab,
Inc. |
3,576 |
|
657,304 |
|
Linde
PLC |
5,129 |
|
1,985,128 |
|
|
|
3,356,927 |
|
Communications
Equipment — 1.3% |
|
|
Cisco
Systems, Inc. |
33,665 |
|
1,930,688 |
|
Consumer
Finance — 0.5% |
|
|
American
Express Co. |
4,778 |
|
754,876 |
|
Consumer
Staples Distribution & Retail — 2.8% |
|
|
Costco
Wholesale Corp. |
1,690 |
|
928,283 |
|
Kroger
Co. |
19,041 |
|
883,312 |
|
Sysco
Corp. |
19,065 |
|
1,327,877 |
|
Target
Corp. |
7,523 |
|
952,036 |
|
|
|
4,091,508 |
|
|
|
|
|
|
|
|
|
|
Sustainable
Equity ETF |
|
|
|
Shares |
Value |
Containers
and Packaging — 0.5% |
|
|
Ball
Corp. |
12,438 |
|
$ |
677,249 |
|
Distributors
— 0.6% |
|
|
LKQ
Corp. |
17,045 |
|
895,374 |
|
Diversified
Telecommunication Services — 1.1% |
|
|
Verizon
Communications, Inc. |
45,498 |
|
1,591,520 |
|
Electric
Utilities — 1.6% |
|
|
NextEra
Energy, Inc. |
34,945 |
|
2,334,326 |
|
Electrical
Equipment — 1.2% |
|
|
Eaton
Corp. PLC |
6,743 |
|
1,553,385 |
|
Generac
Holdings, Inc.(1) |
1,579 |
|
187,601 |
|
|
|
1,740,986 |
|
Electronic
Equipment, Instruments and Components — 1.7% |
|
|
CDW
Corp. |
6,865 |
|
1,449,545 |
|
Keysight
Technologies, Inc.(1) |
7,257 |
|
967,358 |
|
|
|
2,416,903 |
|
Energy
Equipment and Services — 1.5% |
|
|
Schlumberger
NV |
37,134 |
|
2,189,421 |
|
Entertainment
— 1.0% |
|
|
Electronic
Arts, Inc. |
4,231 |
|
507,636 |
|
Liberty
Media Corp.-Liberty Formula One, Class C(1) |
4,522 |
|
311,068 |
|
Walt
Disney Co.(1) |
7,147 |
|
598,061 |
|
|
|
1,416,765 |
|
Financial
Services — 3.0% |
|
|
Mastercard,
Inc., Class A |
4,194 |
|
1,730,612 |
|
Visa,
Inc., Class A |
10,904 |
|
2,678,895 |
|
|
|
4,409,507 |
|
Food
Products — 0.8% |
|
|
Mondelez
International, Inc., Class A |
16,208 |
|
1,154,982 |
|
Ground
Transportation — 1.0% |
|
|
Norfolk
Southern Corp. |
3,177 |
|
651,317 |
|
Uber
Technologies, Inc.(1) |
8,497 |
|
401,313 |
|
Union
Pacific Corp. |
2,028 |
|
447,316 |
|
|
|
1,499,946 |
|
Health
Care Equipment and Supplies — 0.7% |
|
|
Intuitive
Surgical, Inc.(1) |
2,571 |
|
803,900 |
|
ResMed,
Inc. |
1,196 |
|
190,870 |
|
|
|
994,770 |
|
Health
Care Providers and Services — 4.3% |
|
|
Cigna
Group |
6,963 |
|
1,923,598 |
|
CVS
Health Corp. |
15,942 |
|
1,038,940 |
|
Humana,
Inc. |
1,377 |
|
635,665 |
|
UnitedHealth
Group, Inc. |
5,685 |
|
2,709,357 |
|
|
|
6,307,560 |
|
Hotels,
Restaurants and Leisure — 1.0% |
|
|
Airbnb,
Inc., Class A(1) |
2,714 |
|
357,027 |
|
Chipotle
Mexican Grill, Inc.(1) |
175 |
|
337,162 |
|
Starbucks
Corp. |
7,524 |
|
733,138 |
|
|
|
1,427,327 |
|
Household
Products — 1.3% |
|
|
Colgate-Palmolive
Co. |
7,529 |
|
553,156 |
|
|
|
|
|
|
|
|
|
|
Sustainable
Equity ETF |
|
|
|
Shares |
Value |
Procter
& Gamble Co. |
9,024 |
|
$ |
1,392,764 |
|
|
|
1,945,920 |
|
Industrial
Conglomerates — 0.8% |
|
|
Honeywell
International, Inc. |
5,987 |
|
1,125,197 |
|
Industrial
REITs — 1.7% |
|
|
Prologis,
Inc. |
20,199 |
|
2,508,716 |
|
Insurance
— 2.2% |
|
|
Marsh
& McLennan Cos., Inc. |
6,027 |
|
1,175,204 |
|
Prudential
Financial, Inc. |
9,425 |
|
892,265 |
|
Travelers
Cos., Inc. |
6,717 |
|
1,082,982 |
|
|
|
3,150,451 |
|
Interactive
Media and Services — 6.3% |
|
|
Alphabet,
Inc., Class A(1) |
49,008 |
|
6,673,419 |
|
Meta
Platforms, Inc., Class A(1) |
8,576 |
|
2,537,553 |
|
|
|
9,210,972 |
|
IT
Services — 2.0% |
|
|
Accenture
PLC, Class A |
5,088 |
|
1,647,342 |
|
International
Business Machines Corp. |
8,628 |
|
1,266,849 |
|
|
|
2,914,191 |
|
Life
Sciences Tools and Services — 2.6% |
|
|
Agilent
Technologies, Inc. |
9,712 |
|
1,175,832 |
|
Danaher
Corp. |
4,925 |
|
1,305,125 |
|
Thermo
Fisher Scientific, Inc. |
2,495 |
|
1,389,964 |
|
|
|
3,870,921 |
|
Machinery
— 2.3% |
|
|
Cummins,
Inc. |
4,626 |
|
1,064,165 |
|
Deere
& Co. |
1,917 |
|
787,772 |
|
Parker-Hannifin
Corp. |
2,115 |
|
881,743 |
|
Xylem,
Inc. |
6,763 |
|
700,241 |
|
|
|
3,433,921 |
|
Oil,
Gas and Consumable Fuels — 2.9% |
|
|
ConocoPhillips |
19,407 |
|
2,310,015 |
|
EOG
Resources, Inc. |
15,599 |
|
2,006,344 |
|
|
|
4,316,359 |
|
Pharmaceuticals
— 4.0% |
|
|
Bristol-Myers
Squibb Co. |
23,419 |
|
1,443,781 |
|
Eli
Lilly & Co. |
1,489 |
|
825,204 |
|
Merck
& Co., Inc. |
12,419 |
|
1,353,423 |
|
Novo
Nordisk A/S, ADR |
5,257 |
|
975,804 |
|
Zoetis,
Inc. |
6,447 |
|
1,228,218 |
|
|
|
5,826,430 |
|
Semiconductors
and Semiconductor Equipment — 7.6% |
|
|
Advanced
Micro Devices, Inc.(1) |
10,768 |
|
1,138,393 |
|
Analog
Devices, Inc. |
7,764 |
|
1,411,340 |
|
Applied
Materials, Inc. |
12,864 |
|
1,965,105 |
|
ASML
Holding NV, NY Shares |
1,371 |
|
905,587 |
|
GLOBALFOUNDRIES,
Inc.(1) |
5,181 |
|
286,250 |
|
NVIDIA
Corp. |
11,104 |
|
5,480,379 |
|
|
|
11,187,054 |
|
Software
— 10.4% |
|
|
Adobe,
Inc.(1) |
898 |
|
502,287 |
|
|
|
|
|
|
|
|
|
|
Sustainable
Equity ETF |
|
|
|
Shares |
Value |
Cadence
Design Systems, Inc.(1) |
3,322 |
|
$ |
798,742 |
|
Microsoft
Corp. |
35,180 |
|
11,530,597 |
|
Salesforce,
Inc.(1) |
7,043 |
|
1,559,743 |
|
ServiceNow,
Inc.(1) |
612 |
|
360,364 |
|
Workday,
Inc., Class A(1) |
2,225 |
|
544,012 |
|
|
|
15,295,745 |
|
Specialized
REITs — 0.6% |
|
|
Equinix,
Inc. |
1,092 |
|
853,267 |
|
Specialty
Retail — 3.5% |
|
|
CarMax,
Inc.(1) |
4,888 |
|
399,252 |
|
Home
Depot, Inc. |
7,769 |
|
2,566,100 |
|
TJX
Cos., Inc. |
17,129 |
|
1,584,090 |
|
Tractor
Supply Co. |
2,450 |
|
535,325 |
|
|
|
5,084,767 |
|
Technology
Hardware, Storage and Peripherals — 5.1% |
|
|
Apple,
Inc. |
39,954 |
|
7,506,158 |
|
Textiles,
Apparel and Luxury Goods — 0.5% |
|
|
Deckers
Outdoor Corp.(1) |
1,359 |
|
719,033 |
|
TOTAL
COMMON STOCKS
(Cost
$126,883,039) |
|
145,833,581 |
|
SHORT-TERM
INVESTMENTS — 0.3% |
|
|
Money
Market Funds — 0.3% |
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier
Class
(Cost
$469,642) |
469,642 |
|
469,642 |
|
TOTAL
INVESTMENT SECURITIES — 99.9%
(Cost
$127,352,681) |
|
146,303,223 |
|
OTHER
ASSETS AND LIABILITIES — 0.1% |
|
150,776 |
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
146,453,999 |
|
|
|
|
|
|
|
|
|
|
NOTES
TO SCHEDULE OF INVESTMENTS |
ADR |
– |
American
Depositary Receipt |
(1)Non-income
producing.
See
Notes to Financial Statements.
AUGUST 31,
2023
|
|
|
|
|
|
|
|
|
Sustainable
Growth ETF |
|
|
|
Shares |
Value |
COMMON
STOCKS — 99.7% |
|
|
Air
Freight and Logistics — 0.3% |
|
|
United
Parcel Service, Inc., Class B |
221 |
|
$ |
37,437 |
|
Automobile
Components — 0.8% |
|
|
Aptiv
PLC(1) |
1,073 |
|
108,856 |
|
Automobiles
— 2.6% |
|
|
Tesla,
Inc.(1) |
1,411 |
|
364,151 |
|
Beverages
— 2.4% |
|
|
Coca-Cola
Co. |
2,289 |
|
136,951 |
|
PepsiCo,
Inc. |
1,144 |
|
203,540 |
|
|
|
340,491 |
|
Biotechnology
— 1.9% |
|
|
AbbVie,
Inc. |
1,210 |
|
177,822 |
|
Vertex
Pharmaceuticals, Inc.(1) |
244 |
|
84,995 |
|
|
|
262,817 |
|
Broadline
Retail — 5.0% |
|
|
Amazon.com,
Inc.(1) |
4,841 |
|
668,107 |
|
eBay,
Inc. |
794 |
|
35,555 |
|
|
|
703,662 |
|
Building
Products — 1.6% |
|
|
Johnson
Controls International PLC |
1,974 |
|
116,585 |
|
Trane
Technologies PLC |
423 |
|
86,825 |
|
Trex
Co., Inc.(1) |
374 |
|
26,692 |
|
|
|
230,102 |
|
Capital
Markets — 0.6% |
|
|
MSCI,
Inc. |
34 |
|
18,483 |
|
S&P
Global, Inc. |
153 |
|
59,802 |
|
|
|
78,285 |
|
Chemicals
— 1.3% |
|
|
Linde
PLC |
477 |
|
184,618 |
|
Commercial
Services and Supplies — 0.2% |
|
|
Copart,
Inc.(1) |
554 |
|
24,836 |
|
Communications
Equipment — 0.7% |
|
|
Cisco
Systems, Inc. |
1,781 |
|
102,140 |
|
Consumer
Staples Distribution & Retail — 0.3% |
|
|
Kroger
Co. |
411 |
|
19,066 |
|
Target
Corp. |
195 |
|
24,677 |
|
|
|
43,743 |
|
Distributors
— 0.2% |
|
|
Pool
Corp. |
77 |
|
28,151 |
|
Electrical
Equipment — 0.1% |
|
|
Eaton
Corp. PLC |
83 |
|
19,121 |
|
Electronic
Equipment, Instruments and Components — 1.0% |
|
|
CDW
Corp. |
343 |
|
72,425 |
|
Keysight
Technologies, Inc.(1) |
517 |
|
68,916 |
|
|
|
141,341 |
|
Energy
Equipment and Services — 0.3% |
|
|
Schlumberger
NV |
770 |
|
45,399 |
|
Entertainment
— 0.9% |
|
|
Electronic
Arts, Inc. |
509 |
|
61,070 |
|
|
|
|
|
|
|
|
|
|
Sustainable
Growth ETF |
|
|
|
Shares |
Value |
Netflix,
Inc.(1) |
138 |
|
$ |
59,848 |
|
|
|
120,918 |
|
Financial
Services — 6.2% |
|
|
Block,
Inc.(1) |
675 |
|
38,914 |
|
Mastercard,
Inc., Class A |
780 |
|
321,859 |
|
Visa,
Inc., Class A |
2,080 |
|
511,014 |
|
|
|
871,787 |
|
Food
Products — 0.4% |
|
|
Mondelez
International, Inc., Class A |
699 |
|
49,811 |
|
Ground
Transportation — 0.9% |
|
|
Uber
Technologies, Inc.(1) |
2,647 |
|
125,018 |
|
Health
Care Equipment and Supplies — 1.0% |
|
|
Dexcom,
Inc.(1) |
306 |
|
30,900 |
|
IDEXX
Laboratories, Inc.(1) |
148 |
|
75,689 |
|
Shockwave
Medical, Inc.(1) |
137 |
|
30,193 |
|
|
|
136,782 |
|
Health
Care Providers and Services — 3.4% |
|
|
Cigna
Group |
373 |
|
103,045 |
|
Elevance
Health, Inc. |
71 |
|
31,383 |
|
UnitedHealth
Group, Inc. |
727 |
|
346,473 |
|
|
|
480,901 |
|
Hotels,
Restaurants and Leisure — 1.6% |
|
|
Airbnb,
Inc., Class A(1) |
417 |
|
54,856 |
|
Chipotle
Mexican Grill, Inc.(1) |
28 |
|
53,946 |
|
Hilton
Worldwide Holdings, Inc. |
450 |
|
66,893 |
|
Starbucks
Corp. |
476 |
|
46,381 |
|
|
|
222,076 |
|
Interactive
Media and Services — 9.6% |
|
|
Alphabet,
Inc., Class A(1) |
7,172 |
|
976,611 |
|
Meta
Platforms, Inc., Class A(1) |
1,242 |
|
367,496 |
|
|
|
1,344,107 |
|
IT
Services — 1.5% |
|
|
Accenture
PLC, Class A |
489 |
|
158,324 |
|
Okta,
Inc.(1) |
489 |
|
40,836 |
|
Snowflake,
Inc., Class A(1) |
66 |
|
10,352 |
|
|
|
209,512 |
|
Leisure
Products — 0.1% |
|
|
YETI
Holdings, Inc.(1) |
414 |
|
20,679 |
|
Life
Sciences Tools and Services — 1.5% |
|
|
Agilent
Technologies, Inc. |
650 |
|
78,695 |
|
Danaher
Corp. |
287 |
|
76,055 |
|
West
Pharmaceutical Services, Inc. |
131 |
|
53,304 |
|
|
|
208,054 |
|
Machinery
— 1.3% |
|
|
Deere
& Co. |
357 |
|
146,706 |
|
Xylem,
Inc. |
313 |
|
32,408 |
|
|
|
179,114 |
|
Pharmaceuticals
— 4.0% |
|
|
Eli
Lilly & Co. |
411 |
|
227,776 |
|
Novo
Nordisk A/S, ADR |
1,246 |
|
231,282 |
|
|
|
|
|
|
|
|
|
|
Sustainable
Growth ETF |
|
|
|
Shares |
Value |
Zoetis,
Inc. |
517 |
|
$ |
98,494 |
|
|
|
557,552 |
|
Professional
Services — 0.6% |
|
|
Automatic
Data Processing, Inc. |
308 |
|
78,420 |
|
Semiconductors
and Semiconductor Equipment — 10.9% |
|
|
Advanced
Micro Devices, Inc.(1) |
1,533 |
|
162,069 |
|
Analog
Devices, Inc. |
150 |
|
27,267 |
|
Applied
Materials, Inc. |
924 |
|
141,150 |
|
ASML
Holding NV, NY Shares |
329 |
|
217,314 |
|
Enphase
Energy, Inc.(1) |
78 |
|
9,869 |
|
GLOBALFOUNDRIES,
Inc.(1) |
465 |
|
25,691 |
|
Lam
Research Corp. |
41 |
|
28,799 |
|
NVIDIA
Corp. |
1,852 |
|
914,055 |
|
|
|
1,526,214 |
|
Software
— 21.5% |
|
|
Adobe,
Inc.(1) |
156 |
|
87,257 |
|
Cadence
Design Systems, Inc.(1) |
483 |
|
116,133 |
|
Crowdstrike
Holdings, Inc., Class A(1) |
320 |
|
52,170 |
|
Datadog,
Inc., Class A(1) |
385 |
|
37,145 |
|
Intuit,
Inc. |
261 |
|
141,412 |
|
Microsoft
Corp. |
5,812 |
|
1,904,941 |
|
PagerDuty,
Inc.(1) |
1,094 |
|
28,182 |
|
Palo
Alto Networks, Inc.(1) |
281 |
|
68,367 |
|
Salesforce,
Inc.(1) |
1,037 |
|
229,654 |
|
ServiceNow,
Inc.(1) |
345 |
|
203,146 |
|
Splunk,
Inc.(1) |
443 |
|
53,718 |
|
Workday,
Inc., Class A(1) |
358 |
|
87,531 |
|
|
|
3,009,656 |
|
Specialized
REITs — 0.6% |
|
|
Equinix,
Inc. |
102 |
|
79,701 |
|
Specialty
Retail — 3.6% |
|
|
Burlington
Stores, Inc.(1) |
79 |
|
12,819 |
|
CarMax,
Inc.(1) |
413 |
|
33,734 |
|
Home
Depot, Inc. |
661 |
|
218,328 |
|
TJX
Cos., Inc. |
1,858 |
|
171,828 |
|
Ulta
Beauty, Inc.(1) |
147 |
|
61,009 |
|
|
|
497,718 |
|
Technology
Hardware, Storage and Peripherals — 10.1% |
|
|
Apple,
Inc. |
7,508 |
|
1,410,528 |
|
Textiles,
Apparel and Luxury Goods — 0.7% |
|
|
Crocs,
Inc.(1) |
49 |
|
4,769 |
|
Deckers
Outdoor Corp.(1) |
176 |
|
93,120 |
|
|
|
97,889 |
|
TOTAL
COMMON STOCKS
(Cost
$12,649,740) |
|
13,941,587 |
|
SHORT-TERM
INVESTMENTS — 0.3% |
|
|
Money
Market Funds — 0.3% |
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier
Class
(Cost
$37,574) |
37,574 |
|
37,574 |
|
TOTAL
INVESTMENT SECURITIES — 100.0%
(Cost
$12,687,314) |
|
13,979,161 |
|
OTHER
ASSETS AND LIABILITIES† |
|
6,233 |
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
13,985,394 |
|
Sustainable
Growth ETF
|
|
|
|
|
|
|
|
|
NOTES
TO SCHEDULE OF INVESTMENTS |
ADR |
– |
American
Depositary Receipt |
†Category
is less than 0.05% of total net assets.
(1)Non-income
producing.
See
Notes to Financial Statements.
|
|
|
Statements
of Assets and Liabilities |
|
|
|
|
|
|
|
|
|
AUGUST 31,
2023 |
|
|
Mid
Cap Growth Impact ETF |
Sustainable Equity
ETF |
Assets |
|
Investment
securities, at value (cost of $43,158,643 and $127,352,681,
respectively) |
$ |
45,137,041 |
|
$ |
146,303,223 |
|
Receivable
for investments sold |
— |
|
549,533 |
|
Dividends
and interest receivable |
21,655 |
|
219,147 |
|
|
45,158,696 |
|
147,071,903 |
|
|
|
|
Liabilities |
|
|
Payable
for investments purchased |
— |
|
8,890 |
|
Payable
for capital shares redeemed |
— |
|
561,126 |
|
Accrued
management fees |
17,020 |
|
47,888 |
|
|
17,020 |
|
617,904 |
|
|
|
|
Net
Assets |
$ |
45,141,676 |
|
$ |
146,453,999 |
|
|
|
|
Shares
outstanding (unlimited number of shares authorized) |
960,000 |
|
2,610,000 |
|
|
|
|
Net
Asset Value Per Share |
$ |
47.02 |
|
$ |
56.11 |
|
|
|
|
Net
Assets Consist of: |
|
|
Capital
paid in |
$ |
47,766,276 |
|
$ |
134,132,378 |
|
Distributable
earnings (loss) |
(2,624,600) |
|
12,321,621 |
|
|
$ |
45,141,676 |
|
$ |
146,453,999 |
|
See
Notes to Financial Statements.
|
|
|
|
|
|
AUGUST 31,
2023 |
|
Sustainable
Growth ETF |
Assets |
Investment
securities, at value (cost of $12,687,314) |
$ |
13,979,161 |
|
Dividends
and interest receivable |
10,537 |
|
|
13,989,698 |
|
|
|
Liabilities |
|
Accrued
management fees |
4,304 |
|
|
|
Net
Assets |
$ |
13,985,394 |
|
|
|
Shares
outstanding (unlimited number of shares authorized) |
330,000 |
|
|
|
Net
Asset Value Per Share |
$ |
42.38 |
|
|
|
Net
Assets Consist of: |
|
Capital
paid in |
$ |
13,537,705 |
|
Distributable
earnings (loss) |
447,689 |
|
|
$ |
13,985,394 |
|
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
YEAR
ENDED AUGUST 31, 2023 |
|
|
Mid
Cap Growth Impact ETF |
Sustainable
Equity ETF |
Investment
Income (Loss) |
|
Income: |
|
|
Dividends
(net of foreign taxes withheld of $— and $3,674, respectively) |
$ |
144,042 |
|
$ |
2,001,969 |
|
Interest |
23,150 |
|
15,469 |
|
Securities
lending, net |
243 |
|
— |
|
|
167,435 |
|
2,017,438 |
|
|
|
|
Expenses: |
|
|
Management
fees |
150,665 |
|
462,089 |
|
Other
expenses |
57 |
|
— |
|
|
150,722 |
|
462,089 |
|
|
|
|
Net
investment income (loss) |
16,713 |
|
1,555,349 |
|
|
|
|
Realized
and Unrealized Gain (Loss) |
|
|
Net
realized gain (loss) on investment transactions |
(1,721,372) |
|
(1,352,376) |
|
Change
in net unrealized appreciation (depreciation) on investments |
4,357,716 |
|
18,959,969 |
|
|
|
|
Net
realized and unrealized gain (loss) |
2,636,344 |
|
17,607,593 |
|
|
|
|
Net
Increase (Decrease) in Net Assets Resulting from Operations |
$ |
2,653,057 |
|
$ |
19,162,942 |
|
See
Notes to Financial Statements.
|
|
|
|
|
|
YEAR
ENDED AUGUST 31, 2023 |
|
Sustainable
Growth ETF |
Investment
Income (Loss) |
Income: |
|
Dividends
(net of foreign taxes withheld of $696) |
$ |
71,446 |
|
Interest |
773 |
|
|
72,219 |
|
|
|
Expenses: |
|
Management
fees |
30,940 |
|
|
|
Net
investment income (loss) |
41,279 |
|
|
|
Realized
and Unrealized Gain (Loss) |
|
Net
realized gain (loss) on investment transactions |
(299,906) |
|
Change
in net unrealized appreciation (depreciation) on investments |
2,050,410 |
|
|
|
Net
realized and unrealized gain (loss) |
1,750,504 |
|
|
|
Net
Increase (Decrease) in Net Assets Resulting from Operations |
$ |
1,791,783 |
|
See
Notes to Financial Statements.
|
|
|
Statements
of Changes in Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEARS
ENDED AUGUST 31, 2023 AND AUGUST 31, 2022 |
|
Mid
Cap Growth Impact ETF |
Sustainable
Equity ETF |
Increase
(Decrease) in Net Assets |
August
31, 2023 |
August
31, 2022 |
August
31, 2023 |
August
31, 2022 |
Operations |
|
|
Net
investment income (loss) |
$ |
16,713 |
|
$ |
(38,150) |
|
$ |
1,555,349 |
|
$ |
1,288,438 |
|
Net
realized gain (loss) |
(1,721,372) |
|
(1,116,341) |
|
(1,352,376) |
|
12,237,994 |
|
Change
in net unrealized appreciation (depreciation) |
4,357,716 |
|
(6,850,129) |
|
18,959,969 |
|
(34,780,883) |
|
Net
increase (decrease) in net assets resulting from operations |
2,653,057 |
|
(8,004,620) |
|
19,162,942 |
|
(21,254,451) |
|
|
|
|
|
|
Distributions
to Shareholders |
|
|
|
|
From
earnings |
— |
|
— |
|
(1,302,542) |
|
(1,219,340) |
|
|
|
|
|
|
Capital
Share Transactions |
|
|
|
|
Proceeds
from shares sold |
18,924,772 |
|
17,585,267 |
|
28,821,576 |
|
52,262,088 |
|
Payments
for shares redeemed |
(215,481) |
|
(7,918,146) |
|
(5,028,111) |
|
(75,423,895) |
|
Net
increase (decrease) in net assets from capital share
transactions |
18,709,291 |
|
9,667,121 |
|
23,793,465 |
|
(23,161,807) |
|
|
|
|
|
|
Net
increase (decrease) in net assets |
21,362,348 |
|
1,662,501 |
|
41,653,865 |
|
(45,635,598) |
|
|
|
|
|
|
Net
Assets |
|
|
|
|
Beginning
of period |
23,779,328 |
|
22,116,827 |
|
104,800,134 |
|
150,435,732 |
|
End
of period |
$ |
45,141,676 |
|
$ |
23,779,328 |
|
$ |
146,453,999 |
|
$ |
104,800,134 |
|
|
|
|
|
|
Transactions
in Shares of the Funds |
|
|
|
|
Sold |
425,000 |
|
340,000 |
|
560,000 |
|
940,000 |
|
Redeemed |
(5,000) |
|
(165,000) |
|
(100,000) |
|
(1,420,000) |
|
Net
increase (decrease) in shares of the funds |
420,000 |
|
175,000 |
|
460,000 |
|
(480,000) |
|
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
YEARS
ENDED AUGUST 31, 2023 AND AUGUST 31, 2022 |
|
Sustainable
Growth ETF |
Increase
(Decrease) in Net Assets |
August
31, 2023 |
August
31, 2022 |
Operations |
|
Net
investment income (loss) |
$ |
41,279 |
|
$ |
18,914 |
|
Net
realized gain (loss) |
(299,906) |
|
(409,268) |
|
Change
in net unrealized appreciation (depreciation) |
2,050,410 |
|
(1,158,774) |
|
Net
increase (decrease) in net assets resulting from operations |
1,791,783 |
|
(1,549,128) |
|
|
|
|
Distributions
to Shareholders |
|
|
From
earnings |
(36,337) |
|
(13,482) |
|
|
|
|
Capital
Share Transactions |
|
|
Proceeds
from shares sold |
6,817,351 |
|
2,444,496 |
|
Payments
for shares redeemed |
(1,140,216) |
|
(372,643) |
|
Net
increase (decrease) in net assets from capital share
transactions |
5,677,135 |
|
2,071,853 |
|
|
|
|
Net
increase (decrease) in net assets |
7,432,581 |
|
509,243 |
|
|
|
|
Net
Assets |
|
|
Beginning
of period |
6,552,813 |
|
6,043,570 |
|
End
of period |
$ |
13,985,394 |
|
$ |
6,552,813 |
|
|
|
|
Transactions
in Shares of the Funds |
|
|
Sold |
170,000 |
|
60,000 |
|
Redeemed |
(30,000) |
|
(10,000) |
|
Net
increase (decrease) in shares of the funds |
140,000 |
|
50,000 |
|
See
Notes to Financial Statements.
|
|
|
Notes
to Financial Statements |
AUGUST 31,
2023
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 Mid
Cap Growth Impact ETF (Mid Cap Growth Impact ETF), American Century Sustainable
Equity ETF (Sustainable Equity ETF) and American Century Sustainable Growth ETF
(Sustainable Growth ETF) (collectively, the funds) are three funds in a series
issued by the trust. The investment objective for Mid Cap Growth Impact ETF and
Sustainable Equity ETF is to seek long-term capital growth. Sustainable Growth
ETF's investment objective is to seek capital appreciation. Shares of each fund
are listed for trading on the NYSE Arca, Inc.
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 (NAV) 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 value of investments of the funds are
determined by American Century Investment Management, Inc. (ACIM) (the
investment advisor), as the valuation designee, pursuant to its valuation
policies and procedures. The Board of Trustees oversees the valuation designee
and reviews its valuation policies and procedures at least annually.
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.
Open-end
management investment companies are valued at the reported NAV per share.
If
the valuation designee determines that the market price for a portfolio security
is not readily available or is believed by the valuation designee to be
unreliable, such security is valued at fair value as determined in good faith by
the valuation designee, in accordance with its policies and procedures.
Circumstances that may cause the funds to determine that market quotations are
not available or reliable include, but are not limited to: when there is a
significant event subsequent to the market quotation; trading in a security has
been halted during the trading day; or trading in a security is insufficient or
did not take place due to a closure or holiday.
The
valuation designee monitors for significant events occurring after the close of
an investment’s primary exchange but before each fund’s NAV per share is
determined. Significant events may include, but are not limited to: corporate
announcements and transactions; regulatory news, 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. The valuation designee also
monitors for significant fluctuations between domestic and foreign markets, as
evidenced by the U.S. market or such other indicators that it deems appropriate.
The valuation designee may apply a model-derived factor to the closing price of
equity securities traded on foreign securities exchanges. The factor is based on
observable market data as provided by an independent pricing
service.
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. Securities lending income is net of fees and rebates earned by the
lending agent for its services.
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.
Distributions
to Shareholders — Distributions
from net investment income, if any, are generally declared and paid quarterly.
Distributions from net realized gains, if any, are generally declared and paid
annually.
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.
Securities
Lending —
Securities are lent to qualified financial institutions and brokers. State
Street Bank & Trust Co. serves as securities lending agent to the funds
pursuant to a Securities Lending Agreement. The lending of securities exposes
the funds to risks such as: the borrowers may fail to return the loaned
securities, the borrowers may not be able to provide additional collateral, the
funds may experience delays in recovery of the loaned securities or delays in
access to collateral, or the funds may experience losses related to the
investment collateral. To minimize certain risks, loan counterparties pledge
collateral in the form of cash and/or securities. The lending agent has agreed
to indemnify the funds in the case of default of any securities borrowed. Cash
collateral received is invested in the State Street Navigator Securities Lending
Government Money Market Portfolio, a money market mutual fund registered under
the 1940 Act. The loans may also be secured by U.S. government securities in an
amount at least equal to the market value of the securities loaned, plus accrued
interest and dividends, determined on a daily basis and adjusted accordingly. By
lending securities, the funds seek to increase their net investment
income through the receipt of interest and fees. Such income is reflected
separately within the Statements of Operations. The value of loaned securities
and related collateral outstanding at period end, if any, are shown on a gross
basis within the Schedules of Investments and Statements of Assets and
Liabilities.
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. ACIM owns 38% of the shares of Sustainable
Growth ETF. Related parties do not invest in the fund for the purpose of
exercising management or control.
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 ACIM
will pay 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 and extraordinary expenses. The fee is computed and accrued
daily based on the daily net assets of each fund and
paid monthly in arrears.
The
annual management fee for each fund is as follows:
|
|
|
|
|
|
|
Annual
Management Fee |
Mid
Cap Growth Impact ETF |
0.45% |
Sustainable
Equity ETF |
0.39% |
Sustainable
Growth ETF |
0.39% |
Other
Expenses — A
fund’s other expenses may include interest charges, clearing exchange fees,
proxy solicitation expenses, fees associated with the recovery of foreign tax
reclaims and other miscellaneous expenses.
Interfund
Transactions — The
funds may enter into security transactions with other American Century
Investments funds and other client accounts of the investment advisor, in
accordance with the 1940 Act rules and procedures adopted by the Board of
Trustees. The rules and procedures require, among other things, that these
transactions be effected at the independent current market price of the
security. There were no interfund transactions during the period.
4.
Investment Transactions
Purchases
and sales of investment securities, excluding short-term investments and in kind
transactions, for the period ended August 31, 2023 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid
Cap Growth Impact ETF |
Sustainable
Equity ETF |
Sustainable
Growth ETF |
Purchases |
$21,291,145 |
$22,612,333 |
$2,622,691 |
Sales |
$21,040,361 |
$20,518,881 |
$2,518,539 |
Securities
received or delivered in kind through subscriptions and redemptions and in kind
net realized gain (loss) for the period ended August 31, 2023 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
In
kind Subscriptions |
In
kind Redemptions |
In
kind Net Realized Gain/(Loss)* |
Mid
Cap Growth Impact ETF |
$18,216,090 |
$206,634 |
$41,688 |
Sustainable
Equity ETF |
$26,734,160 |
$4,925,519 |
$1,105,308 |
Sustainable
Growth ETF |
$6,676,826 |
$1,118,951 |
$175,595 |
*Net
realized gain (loss) on in kind transactions are not considered taxable for
federal income tax purposes.
5.
Capital Share Transactions
Each fund’s
shares may only be bought and sold in a secondary market through a broker-dealer
at a market price. Because ETF shares trade at market prices rather than NAV,
shares may trade at a price greater than NAV (a premium) or less than NAV (a
discount). Each fund issues and redeems shares at their NAV only in
aggregations of a specified number of shares (a creation unit) generally in
exchange for a designated portfolio of securities and/or cash (including any
portion of such securities for which cash may be substituted). Authorized
participants may be required to pay an additional variable charge to cover
certain brokerage, tax, foreign exchange, execution, market impact and other
costs and expenses related to the execution of trades resulting from creation
unit transactions. Such variable charges, if any, are included in other capital
within the Statements of Changes in Net Assets.
6.
Fair Value Measurements
The
funds' investment 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.
As
of period end, the funds' investment securities were classified as Level 1. The
Schedules of Investments provide additional information on the funds' portfolio
holdings.
7.
Risk Factors
The
value of the funds’ shares will go up and down, sometimes rapidly or
unpredictably, based on the performance of the securities owned by the funds and
other factors generally affecting the securities market. Market risks, including
political, regulatory, economic and social developments, can affect the value of
the funds’ investments. Natural disasters, public health emergencies, war,
terrorism and other unforeseeable events may lead to increased market volatility
and may have adverse long-term effects on world economies and markets
generally.
8.
Federal Tax Information
The
tax character of distributions paid during the years ended August 31, 2023 and
August 31, 2022 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
2022 |
|
Distributions
Paid From: |
Distributions
Paid From: |
|
Ordinary
Income |
Long-term
Capital Gains |
Ordinary
Income |
Long-term
Capital Gains |
Mid
Cap Growth Impact ETF |
— |
— |
— |
— |
Sustainable
Equity ETF |
$ |
1,302,542 |
— |
$ |
1,219,340 |
— |
Sustainable
Growth ETF |
$ |
36,337 |
— |
$ |
13,482 |
— |
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.
The
reclassifications, which are primarily due to in kind transactions, were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid
Cap Growth Impact ETF |
Sustainable
Equity ETF |
Sustainable
Growth ETF |
Capital
paid in |
$ |
15,755 |
|
$ |
1,086,774 |
|
$ |
157,511 |
|
Distributable
earnings (loss) |
$ |
(15,755) |
|
$ |
(1,086,774) |
|
$ |
(157,511) |
|
As
of period end, the federal tax cost of investments and the components of
distributable earnings on a tax-basis were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid
Cap Growth Impact ETF |
Sustainable
Equity ETF |
Sustainable
Growth ETF |
Federal
tax cost of investments |
$ |
43,402,261 |
|
$ |
127,974,067 |
|
$ |
12,767,658 |
|
Gross
tax appreciation of investments |
$ |
4,575,637 |
|
$ |
22,438,469 |
|
$ |
1,419,726 |
|
Gross
tax depreciation of investments |
(2,840,857) |
|
(4,109,313) |
|
(208,223) |
|
Net
tax appreciation (depreciation) of investments |
$ |
1,734,780 |
|
$ |
18,329,156 |
|
$ |
1,211,503 |
|
Undistributed
ordinary income |
— |
|
$ |
394,166 |
|
$ |
11,600 |
|
Accumulated
short-term capital losses |
$ |
(2,942,774) |
|
$ |
(3,593,205) |
|
$ |
(451,449) |
|
Accumulated
long-term capital losses |
$ |
(1,416,606) |
|
$ |
(2,808,496) |
|
$ |
(323,965) |
|
The
difference between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to the tax deferral of losses on wash
sales.
Accumulated
capital losses 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.
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
a Share Outstanding Throughout the Years Ended August 31 (except as
noted) |
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 |
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) |
Mid
Cap Growth Impact ETF |
2023 |
$44.04 |
0.02 |
2.96 |
2.98 |
$47.02 |
6.78% |
0.45% |
0.05% |
64% |
$45,142 |
|
2022 |
$60.59 |
(0.08) |
(16.47) |
(16.55) |
$44.04 |
(27.33)% |
0.45% |
(0.16)% |
44% |
$23,779 |
|
2021 |
$42.74 |
(0.11) |
17.96 |
17.85 |
$60.59 |
41.78% |
0.45% |
(0.20)% |
48% |
$22,117 |
|
2020(4) |
$38.45 |
(0.02) |
4.31 |
4.29 |
$42.74 |
11.14% |
0.45%(5) |
(0.29)%(5) |
2% |
$6,411 |
|
|
|
|
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)July
13, 2020 (fund inception) through August 31, 2020.
(5)Annualized.
*The
amount shown for a share outstanding throughout the period may not correlate
with the Statement(s) of Operations due to the timing of transactions in shares
of a fund in relation to income earned and/or fluctuations in the fair value of
a fund's investments.
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
a Share Outstanding Throughout the Years Ended August 31 (except as
noted) |
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) |
Sustainable
Equity ETF |
|
2023 |
$48.74 |
0.67 |
7.27 |
7.94 |
(0.57) |
$56.11 |
16.44% |
0.39% |
1.31% |
17% |
$146,454 |
|
2022 |
$57.20 |
0.50 |
(8.49) |
(7.99) |
(0.47) |
$48.74 |
(14.03)% |
0.39% |
0.93% |
21% |
$104,800 |
|
2021 |
$44.16 |
0.45 |
13.01 |
13.46 |
(0.42) |
$57.20 |
30.65% |
0.39% |
0.91% |
22% |
$150,436 |
|
2020(4) |
$39.59 |
0.06 |
4.51 |
4.57 |
— |
$44.16 |
11.56% |
0.39%(5) |
1.13%(5) |
10% |
$84,794 |
|
|
|
|
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)July
13, 2020 (fund inception) through August 31, 2020.
(5)Annualized.
*The
amount shown for a share outstanding throughout the period may not correlate
with the Statement(s) of Operations due to the timing of transactions in shares
of a fund in relation to income earned and/or fluctuations in the fair value of
a fund's investments.
See
Notes to Financial Statements.
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
a Share Outstanding Throughout the Years Ended August 31 (except as
noted) |
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) |
Sustainable
Growth ETF |
|
2023 |
$34.49 |
0.19 |
7.88 |
8.07 |
(0.18) |
$42.38 |
23.50% |
0.39% |
0.52% |
31% |
$13,985 |
|
2022 |
$43.17 |
0.12 |
(8.72) |
(8.60) |
(0.08) |
$34.49 |
(19.93)% |
0.39% |
0.29% |
29% |
$6,553 |
|
2021(4) |
$40.15 |
0.01 |
3.01 |
3.02 |
— |
$43.17 |
7.52% |
0.39%(5) |
0.14%(5) |
4% |
$6,044 |
|
|
|
|
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)June
29, 2021 (fund inception) through August 31, 2021.
(5)Annualized.
*The
amount shown for a share outstanding throughout the period may not correlate
with the Statement(s) of Operations due to the timing of transactions in shares
of a fund in relation to income earned and/or fluctuations in the fair value of
a fund's investments.
See
Notes to Financial Statements.
|
|
|
Report
of Independent Registered Public Accounting
Firm |
To
the Shareholders and the Board of Trustees of American Century ETF
Trust
Opinion
on the Financial Statements and Financial Highlights
We
have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of American Century Mid Cap Growth Impact ETF,
American Century Sustainable Equity ETF, and American Century Sustainable Growth
ETF (the “Funds”), three of the funds constituting the American Century ETF
Trust, as of August 31, 2023, the related statements of operations, the
statements of changes in net assets, and the financial highlights for the
periods indicated in the table below; and the related notes. In our opinion, the
financial statements and financial highlights present fairly, in all material
respects, the financial position of each of the Funds as of August 31, 2023, and
the results of their operations, the changes in their net assets, and the
financial highlights for the periods listed in the table below, in conformity
with accounting principles generally accepted in the United States of
America.
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|
|
Individual
Fund Constituting the American Century ETF Trust |
Statement
of Operations |
Statements
of Changes in Net Assets |
Financial
Highlights |
American
Century Mid Cap Growth Impact ETF |
For
the year ended August 31, 2023 |
For
the years ended August 31, 2023 and 2022 |
For
the years ended August 31, 2023, 2022, and 2021, and the period from July
13, 2020 (fund inception) through August 31, 2020 |
American
Century Sustainable Equity ETF |
American
Century Sustainable Growth ETF |
For
the year ended August 31, 2023 |
For
the years ended August 31, 2023 and 2022 |
For
the years ended August 31, 2023, and 2022, and the period from June 29,
2021 (fund inception) through August 31,
2021 |
Basis
for Opinion
These
financial statements and financial highlights are the responsibility of the
Funds’ management. Our responsibility is to express an opinion on the Funds’
financial statements and financial highlights based on our audits. We are a
public accounting firm registered with the Public Company Accounting Oversight
Board (United States) (PCAOB) and are required to be independent with respect to
the Funds in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement, whether due to error or fraud. The Funds are not
required to have, nor were we engaged to perform, an audit of their internal
control over financial reporting. As part of our audits, we are required to
obtain an understanding of internal control over financial reporting but not for
the purpose of expressing an opinion on the effectiveness of the Funds’ internal
control over financial reporting. Accordingly, we express no such
opinion.
Our
audits included performing procedures to assess the risks of material
misstatement of the financial statements and financial highlights, whether due
to error or fraud, and performing procedures that respond to those risks. Such
procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements and financial highlights. Our audits
also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of August 31, 2023, by correspondence with
the custodian and brokers; when replies were not received from brokers, we
performed other auditing procedures. We believe that our audits provide a
reasonable basis for our opinion.
/s/
Deloitte & Touche LLP
Kansas
City, Missouri
October
17, 2023
We
have served as the auditor of one or more American Century investment companies
since 1997.
The
Board of Trustees
The
individuals listed below serve as trustees of the funds. Each trustee will
continue to serve in this capacity until death, retirement, resignation or
removal from office. The board has adopted a mandatory retirement age for
trustees who are not “interested persons,” as that term is defined in the
Investment Company Act (independent trustees). Trustees who are not also
officers of the trust shall retire on December 31st of the year in which they
reach their 75th birthday.
Jonathan
S. Thomas is an “interested person” because he currently serves as President and
Chief Executive Officer of American Century Companies, Inc. (ACC), the parent
company of American Century Investment Management, Inc. (ACIM or the advisor).
The other trustees are independent. They are not employees, directors or
officers of, and have no financial interest in, ACC or any of its wholly owned,
direct or indirect, subsidiaries, including ACIM and American Century Services,
LLC (ACS), and they do not have any other affiliations, positions or
relationships that would cause them to be considered “interested persons” under
the Investment Company Act. The following trustees also serve in this capacity
for a number of other registered investment companies in the American Century
Investments family of funds: Jonathan S. Thomas, 15; Jeremy I. Bulow, 8; and
Stephen E. Yates, 7.
The
following table presents additional information about the trustees. The mailing
address for each trustee other than Jonathan S. Thomas is 330 Madison Avenue,
New York, New York 10017. The mailing address for Jonathan S. Thomas is 4500
Main Street, Kansas City, Missouri 64111.
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|
|
Name (Year
of Birth) |
Position(s)
Held with Funds |
Length
of Time Served |
Principal
Occupation(s) During Past 5 Years |
Number
of American Century Portfolios Overseen by Trustee |
Other
Directorships Held During Past 5 Years |
Independent
Trustees |
|
|
Reginald
M. Browne (1968) |
Trustee
and Board Chair |
Since
2017 (Board Chair since 2019) |
Principal,
GTS Securities (automated capital markets trading firm) (2019 to present);
Senior Managing Director, Co Global Head-ETF Group, Cantor Fitzgerald
(financial services firm) (2013 to 2019) |
50 |
None |
Jeremy
I. Bulow (1954) |
Trustee |
Since
2022 |
Professor
of Economics, Stanford University Graduate School of Business (1979 to
present) |
82 |
None |
Barry
A. Mendelson (1958) |
Trustee |
Since
2017 |
Retired |
50 |
None |
Stephen
E. Yates (1948) |
Trustee |
Since
2017 |
Retired |
115 |
None |
Interested
Trustees |
|
|
Jonathan
S. Thomas (1963) |
Trustee |
Since
2017 |
President
and Chief Executive Officer, ACC (2007 to present). Also serves as Chief
Executive Officer, ACS; Director, ACC and other ACC subsidiaries |
147 |
None |
The
Statement of Additional Information has additional information about the funds'
trustees and is available without charge, upon request, by calling
1-800-345-6488.
Officers
The
following table presents certain information about the executive officers of the
funds. Each officer, except Cleo Chang, serves as an officer for each of the 16
investment companies in the American Century family of funds. No officer is
compensated for his or her service as an officer of the funds. The listed
officers are interested persons of the funds and are appointed or re-appointed
on an annual basis. The mailing address for each officer listed below is 4500
Main Street, Kansas City, Missouri 64111.
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|
|
|
Name
(Year of Birth) |
Offices
with the Funds |
Principal
Occupation(s) During the Past Five Years |
Patrick
Bannigan (1965)
|
President
since 2019 |
Executive
Vice President and Director, ACC (2012 to present); Chief Financial
Officer, Chief Accounting Officer and Treasurer, ACC (2015 to present).
Also serves as President, ACS; Vice President, ACIM; Chief Financial
Officer, Chief Accounting Officer and/or Director, ACIM, ACS and other ACC
subsidiaries |
R.
Wes Campbell (1974) |
Chief
Financial Officer and Treasurer since 2018 |
Vice
President, ACS (2020 to present); Investment Operations and Investment
Accounting, ACS (2000 to present) |
Amy
D. Shelton (1964) |
Chief
Compliance Officer and Vice President since 2017 |
Chief
Compliance Officer, American Century funds, (2014 to present); Chief
Compliance Officer, ACIM (2014 to present); Chief Compliance Officer, ACIS
(2009 to present). Also serves as Vice President, ACIS |
John
Pak (1968) |
General
Counsel and Vice President since 2021 |
General
Counsel and Senior Vice President, ACC (2021 to present). Also serves as
General Counsel and Senior Vice President, ACIM, ACS and ACIS. Chief Legal
Officer of Investment and Wealth Management, The Bank of New York Mellon
(2014 to 2021) |
Cleo
Chang (1977) |
Vice
President since 2019 |
Senior
Vice President, ACIM (2015 to present)
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David
H. Reinmiller (1963) |
Vice
President since 2017 |
Attorney,
ACC (1994 to present). Also serves as Vice President, ACIM and
ACS |
Ward
D. Stauffer (1960) |
Secretary
since 2019 |
Attorney,
ACS (2003 to present) |
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Approval
of Management Agreement |
At
a meeting held on June 21, 2023, the Funds’ Board of Trustees (the "Board")
unanimously approved the renewal of the management agreement pursuant to which
American Century Investment Management, Inc. (the “Advisor”) acts as the
investment advisor for each of the Funds. Under the Investment Company Act of
1940 (the “Investment Company Act”), contracts for investment advisory services
are required to be reviewed, evaluated, and approved by a majority of a fund’s
Trustees, including a majority of the independent Trustees.
Prior
to its consideration of the management agreement renewal, the Trustees requested
and reviewed extensive data and information compiled by the Advisor and certain
independent data providers concerning the Funds. This review was in addition to
the oversight and evaluation undertaken by the Board and its Audit Committee on
a continual basis and the information received was supplemental to the extensive
information that the Board and its Audit Committee receive and consider over
time.
In
connection with its consideration of the management agreement renewal, the
Board’s review and evaluation of the services provided by the Advisor included,
but was not limited to
•the
nature, extent, and quality of investment management, shareholder services,
distribution services, and other services provided to the Funds;
•the
wide range of programs and services the Advisor and other service providers
provide to the Funds and their shareholders on a routine and non-routine basis;
•the
Funds’ investment performance compared to appropriate benchmarks and/or peer
groups of other funds with similar investment objectives and strategies;
•the
cost of owning the Funds compared to the cost of owning similarly-managed funds;
•the
Advisor’s compliance policies, procedures, and regulatory experience and those
of certain other service providers;
•the
Advisor’s strategic plans, generally, and with respect to areas of heightened
regulatory interest in the mutual fund industry and certain recent geopolitical
and other issues;
•the
Advisor’s business continuity plans, vendor management practices, and
information security practices;
•the
cost of services provided to the Funds, the profitability of the Funds to the
Advisor, and the Advisor’s financial results of operation;
•possible
economies of scale associated with the Advisor’s management of the Funds;
•any
collateral benefits derived by the Advisor from the management of the
Funds;
•fees
and expenses associated with any investment by the Funds in other funds;
•payments
to intermediaries by the Funds and the Advisor and services provided by
intermediaries in connection therewith; and
•services
provided and charges to the Advisor’s other investment management
clients.
The
independent Trustees met separately in private sessions to discuss the renewal
and to review and discuss the information provided in response to their request.
The independent Trustees also held active discussions with the Advisor regarding
the renewal of the management agreement. The independent Trustees had the
benefit of the advice of their independent counsel throughout the
process.
Factors
Considered
The
Trustees considered all of the information provided by the Advisor, the
independent data providers, and independent counsel in connection with the
approval. They determined that the information was sufficient for them to
evaluate the management agreement for the 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.
In
deciding to renew the management agreement, the Board based its decision on a
number of factors, including without limitation the following:
Nature,
Extent and Quality of Services — Generally.
Under each Fund’s management agreement, the Advisor is responsible for providing
or arranging for all services necessary for the operation of each Fund. The
Board noted that the Advisor provides or arranges at its own expense a wide
variety of services which include the following:
•constructing
and designing each Fund
•portfolio
research and security selection
•initial
capitalization/funding
•securities
trading
•Fund
administration
•custody
of Fund assets
•daily
valuation of each Fund’s portfolio
•liquidity
monitoring and management
•risk
management, including information security
•shareholder
servicing and transfer agency, including shareholder confirmations,
recordkeeping, and communications
•legal
services (except the independent Trustees’ counsel)
•regulatory
and portfolio compliance
•financial
reporting
•marketing
and distribution (except amounts paid by each Fund under Rule 12b-1 plans)
Investment
Management Services.
The nature of the investment management services provided to the Funds is quite
complex and allows Fund shareholders access to professional money management,
instant diversification of their investments, and liquidity. In evaluating
investment performance, the Board expects the Advisor to manage each Fund in
accordance with its investment objectives and principal investment strategies.
Further, the Trustees recognize that the Advisor has an obligation to monitor
trading activities, and in particular to seek the best execution of fund trades,
and to evaluate the use of and payment for research. In providing these
services, the Advisor utilizes teams of investment professionals who require
extensive information technology, research, training, compliance, and other
systems to conduct their business. The Board provides oversight of the
investment performance process. It regularly reviews investment performance
information for each Fund, together with comparative information for appropriate
benchmarks over different time horizons. The Trustees also review investment
performance information during the management agreement renewal process. If
performance concerns are identified, the Board discusses with the Advisor the
reasons for such results and any actions being taken to improve performance. The
performance for American Century Mid Cap Growth Impact ETF, American Century
Sustainable Equity ETF, and American Century Sustainable Growth ETF was below
each Fund’s respective benchmark for the one-year period reviewed by the Board.
The Board found the investment management services provided by the Advisor to
each Fund to be satisfactory and consistent with the management agreement.
Shareholder
and Other Services.
Under the management agreement, the Advisor provides or arranges for a
comprehensive package of services to the Funds. The Board, directly and through
its Audit Committee, regularly reviews reports and evaluations of such services
at its regular meetings. These reports include, but are not limited to,
information regarding the operational efficiency and accuracy of the shareholder
and transfer agency services provided, staffing levels, shareholder
satisfaction, technology support (including information security), new products
and services offered to Fund shareholders, securities trading activities,
portfolio valuation services, auditing services, and legal and operational
compliance activities. The Board found the services provided by the Advisor to
each Fund under the management agreement to be competitive and of high
quality.
Costs
of Services and Profitability. The
Advisor provides detailed information concerning its cost of providing various
services to the Funds, its profitability in managing each Fund (pre- and
post-distribution),
and its financial results of operation. The Trustees have reviewed with the
Advisor the methodology used to prepare this financial information. This
information is considered in evaluating the Advisor’s financial condition, its
ability to continue to provide services under the management agreement, and the
reasonableness of the terms of the current management agreement. The Board
concluded that the Advisor’s profits were reasonable in light of the services
provided to the Funds.
Ethics.
The
Board generally considers the Advisor’s commitment to providing quality services
to the Funds and to conducting its business ethically. They noted that the
Advisor’s practices generally meet or exceed industry best practices.
Economies
of Scale.
The Board also reviewed information provided by the Advisor regarding the
possible existence of economies of scale in connection with the management of
each Fund. The Board concluded that economies of scale are difficult to measure
and predict with precision, especially on a fund-by-fund basis. The Board
concluded that the Advisor is sharing economies of scale, to the extent they
exist, through its fee structure and through reinvestment in its business,
infrastructure, investment capabilities and initiatives to provide shareholders
additional content and services.
Comparison
to Other Funds’ Fees. The
management agreement provides that each Fund pays the Advisor a single,
all-inclusive (or unified) management fee for providing all services necessary
for the management and operation of the Fund, other than brokerage and other
transaction fees and expenses relating to acquisition and disposition of
portfolio securities, acquired fund fees and expenses, taxes, interest,
extraordinary expenses, fund litigation expenses, expenses incurred in
connection with the provision of shareholder services and distribution services
under a plan adopted pursuant to Investment Company Act Rule 12b-1, and, for
certain funds, fees and expenses of the Fund’s independent Trustees (including
their independent legal counsel). Under the unified fee structure, the Advisor
is responsible for providing investment advisory, custody, audit,
administrative, compliance, recordkeeping, marketing and shareholder services,
or arranging and supervising third parties to provide such services. The Board
believes the unified fee structure is a benefit to Fund shareholders because it
clearly discloses to shareholders the cost of owning Fund shares, and, since the
unified fee cannot be increased without a vote of Fund shareholders, it shifts
to the Advisor the risk of increased costs of operating the Fund and provides a
direct incentive to minimize administrative inefficiencies. Part of the Board’s
analysis of fee levels involves reviewing certain evaluative data compiled by an
independent provider comparing the Fund’s unified fee to the total expense
ratios of its peers. The unified fee charged to shareholders of American Century
Mid Cap Growth Impact ETF, American Century Sustainable Equity ETF, and American
Century Sustainable Growth ETF was below the median of the total expense ratios
of each Fund’s peer expense universe and was within the range of its peer
expense group. The Board concluded that the management fee paid by each Fund to
the Advisor under its management agreement is reasonable in light of the
services provided to the Fund.
Comparison
to Fees and Services Provided to Other Clients of the Advisor. The
Board also requested and received information from the Advisor concerning the
nature of the services, fees, costs, and profitability of its advisory services
to funds or other advisory clients managed similarly to the Funds. They observed
that these varying types of client accounts require different services and
involve different regulatory and entrepreneurial risks than the management of
the Funds. The Board analyzed this information and concluded that the fees
charged and services provided to the Funds were reasonable by comparison.
Payments
to Intermediaries. The
Trustees also requested and received a description of payments made to
intermediaries by each Fund and the Advisor and services provided in response
thereto. These payments could include various payments made by each Fund or the
Advisor to different types of intermediaries and recordkeepers for distribution
and service activities provided for each Fund. The Trustees reviewed such
information and received representations from the Advisor that all such payments
by the Advisor were made from the Advisor’s resources and reasonable profits.
Collateral
or “Fall-Out” Benefits Derived by the Advisor. The
Board considered the possible existence of collateral benefits the Advisor may
receive as a result of its relationship with the Funds. They concluded that the
Advisor’s primary business is managing funds and it generally does not use fund
or shareholder information to generate profits in other lines of business, and
therefore does not derive any significant collateral benefits from them. The
Board noted that additional assets from other clients may offer the Advisor some
benefit from increased leverage with prospective clients, service providers, and
counterparties. The Board also determined that the Advisor is able to provide
investment management services to certain clients other than the Funds, at least
in part, due to its existing infrastructure built to serve the fund complex. The
Board concluded that appropriate allocation methodologies had been employed to
assign resources and the cost of those resources to these other clients.
Existing
Relationship. The
Board also considered whether there was any reason for not continuing the
existing arrangement with the Advisor. In this regard, the Board was mindful of
the potential disruptions of the Funds’ operations and various risks,
uncertainties, and other effects that could occur as a result of a decision not
to continue such relationship. In particular, the Board recognized that most
shareholders have invested in each Fund on the strength of the Advisor’s
industry standing and reputation and in the expectation that the Advisor will
have a continuing role in providing advisory services to each Fund.
Conclusion
of the Trustees. As
a result of this process, the Board, including all of the independent Trustees,
taking into account all of the factors discussed above and the information
provided by the Advisor and others in connection with its review and received
over time, determined that the terms of the management agreement are fair and
reasonable and that the management fee charged to each Fund is fair in light of
the services provided and that the investment management agreement between each
Fund and the Advisor should be renewed for an additional one-year
period.
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Liquidity
Risk Management Program |
The
Funds have adopted a liquidity risk management program (the “program”). The
Funds' Board of Trustees (the "Board") has designated American Century
Investment Management, Inc. (“ACIM”) as the administrator of the program.
Personnel of ACIM or its affiliates, including members of ACIM’s Investment
Oversight Committee who are members of ACIM’s Investment Management and Global
Analytics departments, conduct the day-to-day operation of the program pursuant
to the program.
Under
the program, ACIM manages the Funds' liquidity risk, which is the risk that the
Funds could not meet shareholder redemption requests without significant
dilution of remaining shareholders’ interests in the Funds. This risk is managed
by monitoring the degree of liquidity of the Funds' investments, limiting the
amount of the Funds' illiquid investments, and utilizing various risk management
tools and facilities available to the Funds for meeting shareholder redemptions,
among other means. ACIM’s process of determining the degree of liquidity of
certain investments held by the Funds are supported by a third-party liquidity
assessment vendor.
The
Board reviewed a report prepared by ACIM regarding the operation and
effectiveness of the program for the period January 1, 2022 through December 31,
2022. No significant liquidity events impacting the Funds were noted in the
report. In addition, ACIM provided its assessment that the program had been
effective in managing the Funds' liquidity risk.
Retirement
Account Information
As
required by law, distributions you receive from certain retirement accounts are
subject to federal income tax withholding at the IRS default rate of 10%.* 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 according to state regulations if, at the time of your
distribution, your tax residency is within one of the mandatory withholding
states.
*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 American Century Investments’ website at
americancentury.com/proxy 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 at americancentury.com/proxy. 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
as an exhibit to their reports on Form N-PORT. The funds' Form N-PORT reports
are available on the SEC’s website at sec.gov.
Other
Tax Information
The
following information is provided pursuant to provisions of the Internal Revenue
Code.
Sustainable
Equity ETF and Sustainable Growth ETF hereby designate up to the maximum amount
allowable as qualified dividend income for the fiscal year ended August 31,
2023.
For
corporate taxpayers, the funds hereby designate the following, or up to the
maximum amount allowable, of ordinary income distributions paid during the
fiscal year ended August 31, 2023 as qualified for the corporate dividends
received deduction.
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Mid
Cap Growth Impact ETF |
Sustainable
Equity ETF |
Sustainable
Growth ETF |
— |
$1,302,542 |
$36,337 |
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Contact
Us |
americancentury.com |
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American
Century Sales Representatives, Financial Professionals, Broker Dealers,
Insurance Companies, Banks and Trust Companies |
1-833-ACI-ETFS |
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Telecommunications
Relay Service for the Deaf |
711 |
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American
Century ETF Trust |
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Investment
Advisor:
American
Century Investment Management, Inc.
Kansas
City, Missouri |
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Distributor:
Foreside
Fund Services, LLC - Distributor, not affiliated with American Century
Investment Services, Inc. |
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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. |
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©2023
American Century Proprietary Holdings, Inc. All rights
reserved. CL-ANN-96950 2310 |
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