|
|
|
|
|
|
|
|
|
Annual
Report |
|
|
|
August
31, 2022 |
|
|
|
American
Century®
Mid Cap Growth Impact ETF (MID) |
|
American
Century®
Sustainable Equity ETF (ESGA) |
|
American
Century®
Sustainable Growth ETF (ESGY) |
|
|
|
|
|
|
President’s
Letter |
|
Mid
Cap Growth Impact ETF |
|
Performance |
|
Portfolio
Commentary |
|
Fund
Characteristics |
|
Sustainable
Equity ETF |
|
Performance |
|
Portfolio
Commentary |
|
Fund
Characteristics |
|
Sustainable
Growth ETF |
|
Performance |
|
Portfolio
Commentary |
|
Fund
Characteristics |
|
Shareholder
Fee Examples |
|
Schedules
of Investments |
|
Statements
of Assets and Liabilities |
|
Statements
of Operations |
|
Statements
of Changes in Net Assets |
|
Notes
to Financial Statements |
|
Financial
Highlights |
|
Report
of Independent Registered Public Accounting Firm |
|
Management |
|
Approval
of Management Agreement |
|
|
|
Liquidity
Risk Management Program |
|
Additional
Information |
|
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, 2022.
Annual reports
help
convey important information about fund returns, including market factors that
affected
performance.
For additional investment insights, please visit
americancenturyetfs.com.
Mounting
Market Challenges Hampered Performance
Asset
class performance weakened dramatically during the funds’ fiscal year. In late
2021,
generally
upbeat economic activity and corporate earnings supported gains for most U.S.
and
global
stock indices. Returns generally remained positive despite rapidly rising
inflation and waning
central
bank support—factors that had started to weigh on fixed-income
indices.
By
early 2022, the market climate shifted quickly. Inflation, which was already at
multiyear highs,
rose
to levels last seen in the early 1980s. Massive fiscal and monetary support
unleashed during
the
pandemic was partly to blame. In addition, escalating energy prices, supply
chain breakdowns
and
labor market shortages further aggravated inflation in the U.S. and other
developed markets.
Russia’s
invasion of Ukraine in February also exacerbated global inflationary
pressures.
The
Bank of England launched its inflation-fighting campaign in December and
continued to lift
rates
through period-end. The Federal Reserve responded to surging inflation in March,
launching
an
aggressive rate-hike campaign and ending its asset purchase program.
Policymakers indicated
taming
inflation remains their priority, even as the U.S. economy contracted in 2022’s
first two
quarters.
Facing record-high inflation in the eurozone, the European Central Bank in July
embarked
on
its first rate-hike effort in 11 years.
The
combination of sharply elevated inflation, tighter monetary policy, geopolitical
strife and weak
economies
triggered sharp market volatility and fueled global recession fears. Against
this
backdrop,
most U.S. and global stock and bond indices declined sharply for the reporting
period.
Staying
Disciplined in Uncertain Times
We
expect market volatility to linger as investors navigate a complex environment
of high inflation,
rising
interest rates and economic uncertainty. In addition, Russia’s invasion of
Ukraine
complicates
an increasingly tense geopolitical backdrop and threatens Europe’s winter
energy
supply.
We will continue to monitor the broad backdrop and its influence on financial
markets.
We
appreciate your confidence in us during these extraordinary times. Our firm has
a long history
of
helping clients weather unpredictable markets, and we’re confident we will
continue to meet
today’s
challenges.
Sincerely,
Jonathan
Thomas
President
and Chief Executive Officer
American
Century Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid
Cap Growth Impact ETF (MID) |
|
|
|
|
|
|
Total
Returns as of August 31, 2022 |
|
|
|
|
Average
Annual Returns |
|
|
|
1
year |
|
|
Since
Inception |
Inception
Date |
Net
Asset Value |
|
-27.33% |
|
|
6.56% |
7/13/2020 |
Market
Price |
|
-27.39% |
|
|
6.55% |
7/13/2020 |
Russell
Midcap Growth Index |
|
-26.69% |
|
|
4.26% |
— |
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 July 13, 2020 |
|
|
|
|
|
|
Value
on August 31, 2022 |
|
Net
Asset Value — $11,451 |
|
|
Russell
Midcap Growth Index — $10,931 |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
|
|
0.45% |
|
|
|
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 americancenturyetfs.com. For additional information
about the funds, please consult the prospectus.
Portfolio
Managers: Rob Brookby, Nalin Yogasundram and Rene Casis
Fund
Strategy
American
Century Mid Cap Growth Impact ETF is an actively managed fund that seeks
long-term capital growth. The portfolio managers look for stocks of
medium-capitalization companies they believe will increase in value over time,
using proprietary fundamental research. The initial research process begins by
analyzing themes aligned with the U.N. Sustainable Development Goals (SDG) to
identify companies that generate, or could generate, social and environmental
impact alongside a financial return. We make our investment decisions based
primarily on our analysis of individual companies, rather than on broad economic
forecasts. We generate an impact thesis to explain current or projected SDG
alignment in combination with each security’s fundamental growth profile.
Performance
Review
The
fund returned -27.39% on a market price basis for the 12-month period ended
August 31, 2022. On a net asset value (NAV) basis, the fund returned -27.33%.
For the same time period, the Russell Midcap Growth Index, the fund’s benchmark,
returned -26.69%. The fund’s NAV and market price returns reflect fees and
operating expenses, while the index return does not.
Industrials
Detracted
Road
and rail stocks weighed on performance in the industrials sector, largely due to
our position in Lyft. The ride-hailing company surprised investors with a
significant reduction in the company’s profit margin forecast due to launching
initiatives that deviated from plans communicated earlier in the year.
The
portfolio was underweight energy relative to the benchmark. Our lighter exposure
was a meaningful underperformer as sanctions on Russian oil purchases
effectively removed several million barrels of oil and refined products from
global markets. The resulting price increases boosted the sector.
Other
detractors included DocuSign. The company develops software for online
signatures and document management. DocuSign was a beneficiary of the
pandemic-driven work-from-home environment but offered weak guidance as that
tailwind subsides. We believe in the long-term adoption of e-signature and a
more efficient document workflow that DocuSign offers. The small- and
micro-merchant digital payments company Block (formerly Square) suffered during
the growth sell-off as initially rising interest rates and later recessionary
fears weighed on the stock. Additionally, Block’s focus on blockchain
technology—which enables cryptocurrencies—hurt as crypto prices fell. Surging
interest rates and investors’ move away from riskier assets because of the
Russia-Ukraine war led fast-growth and expensive technology stocks such as IT
services company Twilio to underperform. Block and Twilio were eliminated.
Natera hampered performance. The stock of this genetic testing company fell amid
allegations of marketing impropriety. We eliminated our position as Natera no
longer aligned with our mandate for proper governance.
Information
Technology Benefited Performance
Stock
selection in the software industry led performance in information technology,
driven by Palo Alto Networks.
Over
the past three years this cybersecurity software provider has transformed into a
cloud-based platform of next-generation cybersecurity products. On top of a very
strong environment for its products, Palo Alto said it expects greater free cash
flow generation now that the heavy lift in its transformation is over. Cadence
Design Systems sells software to help build semiconductor chips. Semiconductors
have unprecedented tailwinds enabling themes like the cloud, 5G, internet of
things and ultimately the metaverse. Cadence benefited from more customers and
more usage.
Enphase
Energy makes inverters to efficiently convert power from solar cells into usable
electricity for the home. Demand for solar is high now that prices have been cut
by 90% the past decade. After a period of revenue constrained by supply chain
issues, Enphase experienced accelerating growth as the company addressed the
supply challenges. Keysight Technologies sells measurement tools for
high-frequency applications such as 5G and in automobiles. Keysight benefited
from multiple tailwinds as complex communications capabilities are being added
to an increasing set of applications from cars to consumer devices.
Elsewhere,
Sarepta Therapeutics was a key contributor. This biopharmaceutical company
benefited from investor enthusiasm about its pipeline of burgeoning gene
therapies to treat rare diseases. Materials in general benefited from greater
demand and firmer pricing due to global supply chain disruptions. Albemarle was
a top contributor on demand for lithium, a key ingredient of batteries for
electric vehicles.
Portfolio
Positioning
Our
process uses fundamental analysis aimed at identifying mid-capitalization
companies producing attractive, sustained earnings growth. We seek to reduce
unintended, nonfundamental risks and align the portfolio with fundamental,
company-specific risks that we believe will be rewarded over time. As a result
of this approach, our sector and industry allocations reflect where we are
finding opportunities at a given time. We see longer-term opportunities in
companies seeking to achieve the U.N. SDG with key impact themes of a greener
planet; innovation, efficiency and education driven by technology; and improving
health care outcomes across various sectors of our portfolio.
A
strategy that considers the United Nations Sustainable Development Goals (SDG)
criteria may limit the investment opportunities available to a portfolio.
Therefore, the portfolio may underperform or perform differently than other
portfolios that do not have an SDG investment focus. A portfolio’s
SDG investment focus 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 underlying holdings that are not
screened for SDG standards.
|
|
|
|
|
|
AUGUST
31, 2022 |
|
|
|
Mid
Cap Growth Impact ETF |
|
Types
of Investments in Portfolio |
%
of net assets |
Common
Stocks |
97.3% |
Short-Term
Investments |
3.2% |
Other
Assets and Liabilities |
(0.5)% |
|
|
Top
Five Industries |
%
of net assets |
Software |
17.9% |
Semiconductors
and Semiconductor Equipment |
14.6% |
Hotels,
Restaurants and Leisure |
9.2% |
Chemicals |
7.5% |
Biotechnology |
7.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustainable
Equity ETF (ESGA) |
|
|
|
|
|
|
Total
Returns as of August 31, 2022 |
|
|
|
|
Average
Annual Returns |
|
|
|
1
year |
|
|
Since
Inception |
Inception
Date |
Net
Asset Value |
|
-14.03% |
|
|
11.15% |
7/13/2020 |
Market
Price |
|
-14.10% |
|
|
11.14% |
7/13/2020 |
S&P
500 Index |
|
-11.23% |
|
|
12.87% |
— |
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 July 13, 2020 |
|
|
|
|
|
|
Value
on August 31, 2022 |
|
Net
Asset Value — $12,531 |
|
|
S&P
500 Index — $12,948 |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
|
|
0.39% |
|
|
|
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 americancenturyetfs.com. For additional information
about the funds, please consult the prospectus.
Portfolio
Managers: Joe Reiland, Justin Brown, Rob Bove and Rene Casis
Fund
Strategy
American
Century Sustainable Equity ETF is an actively managed fund that seeks long-term
capital growth. We seek to invest in larger U.S. companies demonstrating both
improving business fundamentals and sustainable corporate behaviors in pursuit
of long-term financial returns and a stronger environmental, social and
governance (ESG) profile than the S&P 500 Index. As opposed to avoiding
certain sectors entirely, we seek to invest in the most attractive companies
within all sectors. A broad investment universe provides investors with both an
attractive ESG profile and the potential for positive risk-adjusted returns over
time. We construct our portfolio to intentionally acquire stock-specific risk
aligned with our financial and sustainability research, while minimizing
relative exposures related to sectors and common factor risks, such as
market-capitalization size, volatility and momentum.
Performance
Review
The
fund returned -14.10% on a market price basis for its fiscal year ended August
31, 2022. On a net asset value (NAV) basis, the fund returned -14.03%. For the
same time period, the S&P 500 Index, the fund’s benchmark, returned -11.23%.
The fund’s NAV and market price returns reflect fees and operating expenses,
while the index return does not.
Information
Technology Detracted
Stock
selection in the semiconductors and semiconductor equipment industry helped
drive underperformance in information technology. Both chipmakers and
semiconductor equipment manufacturers are being pressured by concerns that a
slowdown in consumer spending will hamper demand for chips. ASML Holding, a
Netherlands-based semiconductor capital equipment maker, was a significant
industry detractor. Stock selection in the IT services industry also hurt
performance in the sector. PayPal Holdings reported disappointing earnings
largely due to declining eBay transactions. We eliminated PayPal. Underweighting
Apple relative to the index hampered performance. The consumer electronics giant
reported better-than-expected results, driven by iPhone sales.
Energy
companies continued to benefit from rising oil and gas prices. Russia’s invasion
of Ukraine, Europe’s energy supply concerns and slow production growth in the
U.S. and from OPEC have kept energy markets volatile and in negative supply. We
had lighter exposure to Exxon Mobil and Chevron than the benchmark, which
hampered relative performance. Our underweight allocation to energy overall
hampered relative performance, although a number of our holdings in the sector
were top contributors, which helped offset some of the detraction. The portfolio
was also underweight Tesla. The electric vehicle maker continued to outperform,
exceeding production goals in the face of global supply chain disruptions and
pandemic lockdowns in China.
Communication
Services Was a Top Contributor
Positioning
in the communication services sector benefited performance. We were underweight
two laggards, Facebook’s parent Meta Platforms and streaming video company
Netflix. Meta has been hurt more by both Apple iOS platform changes and TikTok
competition than other digital advertising platforms. Our underweight reflects
our elimination of Meta during the first quarter of 2022. Netflix announced
layoffs amid weak subscriber growth. An expected renormalization of subscriber
growth following the early gains of the pandemic has not materialized. We also
eliminated Netflix.
Some
of the leading individual contributors to performance compared with the
benchmark were energy companies ConocoPhillips and Schlumberger. This is
consistent with our process, which seeks to identify companies we believe are
ESG leaders within all sectors, rather than exclude certain sectors entirely.
Our approach led us to overweight positions in these companies, which we believe
have relatively more attractive financial and ESG characteristics than other
energy companies. ConocoPhilllips was the fund’s top contributor, benefiting
from the jump in fossil fuel prices. Rising energy prices also boosted oil field
services companies such as Schlumberger. The company also benefited from a
multiyear growth dynamic leading to strong cash flow growth. Schlumberger’s new
energy division is focused on transitioning toward lower carbon energy
solutions: geothermal, hydrogen, carbon capture and sequestration.
Elsewhere,
Cigna was a top performer. Managed care companies such as Cigna were perceived
as being relatively insulated from the inflationary environment. We think
Cigna’s pharmacy benefit management division should also benefit from new
biosimilar pharmaceutical launches in the coming years. NextEra Energy received
a boost from an executive order delaying implementation of solar panel tariffs,
which helped ease concerns that NextEra’s plans for renewable capacity expansion
would be slowed.
Portfolio
Positioning
Our
process uses fundamental analysis aimed at identifying growing,
large-capitalization companies demonstrating sustainable corporate behaviors.
Rather than screen out certain industries or sectors, we seek to identify
companies with attractive fundamental growth and ESG characteristics in their
respective sectors. As a result of this approach, our sector and industry
allocations reflect where we are finding opportunities at a given
time.
Using
our bottom-up analysis, we have found what we think are attractive positions in
the industrials sector, led by building products and electrical equipment.
Consumer staples was also modestly overweight due to positions in food and
staples retailing and household products. Utilities was the largest underweight
sector because many of the companies in the sector do not fit our process
well.
A
strategy or emphasis on environmental, social and governance factors (ESG) may
limit the investment opportunities available to a portfolio. Therefore, the
portfolio may underperform or perform differently than other portfolios that do
not have an ESG investment focus. A portfolio’s
ESG investment focus 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 underlying holdings that are not
screened for ESG standards.
|
|
|
|
|
|
AUGUST
31, 2022 |
|
|
|
Sustainable
Equity ETF |
|
Types
of Investments in Portfolio |
%
of net assets |
Common
Stocks |
99.5% |
Short-Term
Investments |
0.4% |
Other
Assets and Liabilities |
0.1% |
|
|
Top
Five Industries |
%
of net assets |
Software |
10.0% |
Health
Care Providers and Services |
5.2% |
Technology
Hardware, Storage and Peripherals |
5.0% |
Interactive
Media and Services |
4.9% |
Capital
Markets |
4.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustainable
Growth ETF (ESGY) |
|
|
|
|
|
|
|
Total
Returns as of August 31, 2022 |
|
|
|
|
|
Average
Annual Returns |
|
|
|
|
|
|
1
year |
Since
Inception |
Inception
Date |
Net
Asset Value |
|
|
|
|
-19.93% |
-12.00% |
6/29/2021 |
Market
Price |
|
|
|
|
-19.93% |
-11.99% |
6/29/2021 |
Russell
1000 Growth Index |
|
|
|
|
-19.06% |
-11.59% |
— |
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 |
|
|
|
|
|
|
Value
on August 31, 2022 |
|
Net
Asset Value — $8,609 |
|
|
Russell
1000 Growth Index — $8,655 |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
|
|
0.39% |
|
|
|
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 americancenturyetfs.com. For additional information
about the funds, please consult the prospectus.
Portfolio
Managers: Joe Reiland, Rob Bove, Scott Marolf, David Cross and Rene
Casis
David
Cross joined the fund’s portfolio management team in February 2022.
Fund
Strategy
American
Century Sustainable Growth ETF is an actively managed fund that seeks capital
appreciation. We seek to invest in larger U.S. companies demonstrating both
improving business fundamentals and sustainable corporate behaviors in pursuit
of long-term financial returns and a stronger environmental, social and
governance (ESG) profile than the Russell 1000 Growth Index. As opposed to
avoiding certain sectors entirely, we seek to invest in the most attractive
companies within all sectors. A broad investment universe provides investors
with both an attractive environmental, social and governance (ESG) profile and
the potential for positive risk-adjusted returns over time. We construct our
portfolio to intentionally acquire stock-specific risk aligned with our
financial and sustainability research, while minimizing relative exposures
related to sectors and common factor risks, such as market-capitalization size,
volatility and momentum.
Performance
Review
The
fund returned -19.93% on a market price basis for the 12-month period ended
August 31, 2022. On a net asset value (NAV) basis, the fund returned -19.93%.
For the same period, the Russell 1000 Growth Index, the fund’s benchmark,
returned -19.06%. The fund’s NAV and market price returns reflect fees and
operating expenses, while the index return does not.
Information
Technology Detracted
Stock
selection in the semiconductors and semiconductor equipment industry helped
drive underperformance in information technology. Both chipmakers and
semiconductor equipment manufacturers are being pressured by concerns that a
slowdown in consumer spending will hamper demand for chips. ASML Holding, a
Netherlands-based semiconductor capital equipment maker, was a significant
industry detractor. Stock selection in the IT services industry also hurt
performance in the sector. PayPal Holdings reported disappointing earnings
largely due to declining eBay transactions. We eliminated our holding. Software
provider Adobe fell on expectations of slowing company spending on software as
economic growth slows.
We
were also hurt by lighter exposure than the benchmark in a trio of other stocks.
Apple reported better-than-expected quarterly results, driven by iPhone sales.
AbbVie, a large pharmaceutical company, benefited from investors looking for
safer havens. We had no exposure to brick-and-mortar retailer Costco Wholesale,
which recently reported membership renewals, its primary driver of profits, of
more than 90%. Costco is also seen as recession-proof as consumers buy more bulk
items to reduce costs.
Communication
Services Benefited Performance
Stock
choices in the interactive media and services industry led relative performance
in communication services. We had less exposure to the lagging Meta Platforms
than the benchmark. Facebook’s parent company has been hurt more by both Apple
iOS platform changes and TikTok competition than other digital advertising
platforms. Underweighting Netflix benefited relative performance. The streaming
video service announced layoffs amid weak subscriber growth. An expected
renormalization of subscriber growth following the early gains of the pandemic
has not materialized. We eliminated Meta Platforms and Netflix.
Stock
selection in health care was also helpful. UnitedHealth Group was a key
contributor. The health insurer reported solid earnings and modestly increased
its earnings guidance. However, the stock’s outperformance for much of the
period was driven more by its defensive profile and being more insulated from
the impact of inflation and a stronger U.S. dollar. Denmark-based pharmaceutical
company Novo Nordisk continued to benefit from strong sales and demand for its
obesity drug. Vertex Pharmaceuticals dominates the cystic fibrosis market with
no real prospects of
competition
on the horizon, giving it a strong cash flow position. Its emerging pipeline is
beginning to show its strength, including its kidney drug, acute pain drug and
Type 1 diabetes stem cell therapy.
Car
rental provider Avis Budget Group benefited from improving travel trends and
also rose significantly in November 2021 as the stock became part of the meme
stock investing craze. We eliminated the position on the large stock price
increase as we saw no additional upside.
Portfolio
Positioning
Our
process uses fundamental analysis aimed at identifying growing,
large-capitalization companies demonstrating sustainable corporate behaviors.
Rather than screen out certain industries or sectors, we seek to identify
companies with attractive fundamental growth and ESG characteristics in their
respective sectors. As a result of this approach, our sector and industry
allocations reflect where we are finding opportunities at a given
time.
Using
our bottom-up analysis, we have found attractive positions in several sectors,
notably information technology. In particular, we invested in attractive
companies in the software, electronic equipment, instruments and components and
semiconductors and semiconductor equipment industries. We have also found
opportunities in health care, especially pharmaceuticals.
A
strategy or emphasis on environmental, social and governance factors (ESG) may
limit the investment opportunities available to a portfolio. Therefore, the
portfolio may underperform or perform differently than other portfolios that do
not have an ESG investment focus. A portfolio’s
ESG investment focus 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 underlying holdings that are not
screened for ESG standards.
|
|
|
|
|
|
AUGUST
31, 2022 |
|
|
|
Sustainable
Growth ETF |
|
Types
of Investments in Portfolio |
%
of net assets |
Common
Stocks |
99.6% |
Short-Term
Investments |
0.3% |
Other
Assets and Liabilities |
0.1% |
|
|
Top
Five Industries |
%
of net assets |
Software |
19.7% |
Technology
Hardware, Storage and Peripherals |
10.5% |
Semiconductors
and Semiconductor Equipment |
7.6% |
Interactive
Media and Services |
6.6% |
IT
Services |
6.6% |
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, 2022 to August 31,
2022.
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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Account
Value 3/1/22 |
Ending
Account Value 8/31/22 |
Expenses
Paid
During
Period(1)
3/1/22
- 8/31/22 |
Annualized
Expense
Ratio(1) |
Mid
Cap Growth Impact ETF |
|
|
Actual |
$1,000 |
$907.90 |
$2.16 |
0.45% |
Hypothetical |
$1,000 |
$1,022.94 |
$2.29 |
0.45% |
Sustainable
Equity ETF |
|
|
Actual |
$1,000 |
$896.50 |
$1.86 |
0.39% |
Hypothetical |
$1,000 |
$1,023.24 |
$1.99 |
0.39% |
Sustainable
Growth ETF |
|
|
Actual |
$1,000 |
$860.00 |
$1.83 |
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,
2022
|
|
|
|
|
|
|
|
|
Mid
Cap Growth Impact ETF |
|
|
|
Shares |
Value |
COMMON
STOCKS — 97.3% |
|
|
Aerospace
and Defense — 1.2% |
|
|
CAE,
Inc.(1)
|
15,358 |
|
$ |
280,437 |
|
Auto
Components — 3.4% |
|
|
Aptiv
PLC(1)
|
8,784 |
|
820,689 |
|
Biotechnology
— 7.2% |
|
|
Alnylam
Pharmaceuticals, Inc.(1)
|
894 |
|
184,763 |
|
Horizon
Therapeutics PLC(1)
|
6,376 |
|
377,523 |
|
Sarepta
Therapeutics, Inc.(1)
|
7,009 |
|
766,644 |
|
Seagen,
Inc.(1)
|
2,488 |
|
383,874 |
|
|
|
1,712,804 |
|
Building
Products — 5.9% |
|
|
Trane
Technologies PLC |
6,338 |
|
976,496 |
|
Zurn
Elkay Water Solutions Corp. |
15,490 |
|
427,214 |
|
|
|
1,403,710 |
|
Capital
Markets — 3.6% |
|
|
MSCI,
Inc. |
1,896 |
|
851,759 |
|
Chemicals
— 7.5% |
|
|
Albemarle
Corp. |
818 |
|
219,192 |
|
Avient
Corp. |
14,012 |
|
614,146 |
|
Element
Solutions, Inc. |
50,439 |
|
941,696 |
|
|
|
1,775,034 |
|
Electrical
Equipment — 3.4% |
|
|
Generac
Holdings, Inc.(1)
|
2,524 |
|
556,315 |
|
Plug
Power, Inc.(1)(2)
|
8,609 |
|
241,396 |
|
|
|
797,711 |
|
Electronic
Equipment, Instruments and Components — 5.1% |
|
|
Keysight
Technologies, Inc.(1)
|
7,444 |
|
1,219,997 |
|
Health
Care Equipment and Supplies — 3.1% |
|
|
DexCom,
Inc.(1)
|
8,858 |
|
728,216 |
|
Health
Care Technology — 3.2% |
|
|
Veeva
Systems, Inc., Class A(1)
|
3,875 |
|
772,365 |
|
Hotels,
Restaurants and Leisure — 9.2% |
|
|
Airbnb,
Inc., Class A(1)
|
7,866 |
|
889,802 |
|
Chipotle
Mexican Grill, Inc.(1)
|
814 |
|
1,299,795 |
|
|
|
2,189,597 |
|
Life
Sciences Tools and Services — 5.4% |
|
|
Bio-Techne
Corp. |
2,094 |
|
694,810 |
|
IQVIA
Holdings, Inc.(1)
|
2,816 |
|
598,851 |
|
|
|
1,293,661 |
|
Oil,
Gas and Consumable Fuels — 2.4% |
|
|
Excelerate
Energy, Inc., Class A |
22,237 |
|
571,046 |
|
Professional
Services — 3.3% |
|
|
Jacobs
Solutions, Inc. |
6,246 |
|
778,127 |
|
Road
and Rail — 0.9% |
|
|
Lyft,
Inc., Class A(1)
|
14,999 |
|
220,935 |
|
Semiconductors
and Semiconductor Equipment — 14.6% |
|
|
Enphase
Energy, Inc.(1)
|
6,397 |
|
1,832,357 |
|
|
|
|
|
|
|
|
|
|
Mid
Cap Growth Impact ETF |
|
|
|
Shares |
Value |
Marvell
Technology, Inc. |
18,045 |
|
$ |
844,867 |
|
Monolithic
Power Systems, Inc. |
1,745 |
|
790,799 |
|
|
|
3,468,023 |
|
Software
— 17.9% |
|
|
Cadence
Design Systems, Inc.(1)
|
9,305 |
|
1,616,930 |
|
DocuSign,
Inc.(1)
|
5,777 |
|
336,337 |
|
Manhattan
Associates, Inc.(1)
|
8,491 |
|
1,199,438 |
|
Palo
Alto Networks, Inc.(1)
|
1,975 |
|
1,099,700 |
|
|
|
4,252,405 |
|
TOTAL
COMMON STOCKS
(Cost
$25,515,834) |
|
23,136,516 |
|
SHORT-TERM
INVESTMENTS — 3.2% |
|
|
Money
Market Funds — 3.2% |
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier
Class |
645,638 |
|
645,638 |
|
State
Street Navigator Securities Lending Government Money Market
Portfolio(3)
|
123,740 |
|
123,740 |
|
TOTAL
SHORT-TERM INVESTMENTS
(Cost
$769,378) |
|
769,378 |
|
TOTAL
INVESTMENT SECURITIES — 100.5%
(Cost
$26,285,212) |
|
23,905,894 |
|
OTHER
ASSETS AND LIABILITIES — (0.5)% |
|
(126,566) |
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
23,779,328 |
|
|
|
|
|
|
|
|
|
|
NOTES
TO SCHEDULE OF INVESTMENTS |
(1)Non-income
producing.
(2)Security,
or a portion thereof, is on loan. At the period end, the aggregate value of
securities on loan was $120,684. The amount of securities on loan indicated may
not correspond with the securities on loan identified because securities with
pending sales are in the process of recall from the brokers.
(3)Investment
of cash collateral from securities on loan. At the period end, the aggregate
value of the collateral held by the fund was $123,740.
See
Notes to Financial Statements.
AUGUST 31,
2022
|
|
|
|
|
|
|
|
|
Sustainable
Equity ETF |
|
|
|
Shares |
Value |
COMMON
STOCKS — 99.5% |
|
|
Aerospace
and Defense — 1.2% |
|
|
Lockheed
Martin Corp. |
2,931 |
|
$ |
1,231,342 |
|
Air
Freight and Logistics — 1.3% |
|
|
United
Parcel Service, Inc., Class B |
6,909 |
|
1,343,870 |
|
Auto
Components — 0.7% |
|
|
Aptiv
PLC(1)
|
8,004 |
|
747,814 |
|
Automobiles
— 1.7% |
|
|
Tesla,
Inc.(1)
|
6,434 |
|
1,773,275 |
|
Banks
— 3.1% |
|
|
Bank
of America Corp. |
9,899 |
|
332,705 |
|
JPMorgan
Chase & Co. |
12,533 |
|
1,425,378 |
|
Regions
Financial Corp. |
67,559 |
|
1,464,004 |
|
|
|
3,222,087 |
|
Beverages
— 1.8% |
|
|
PepsiCo,
Inc. |
10,726 |
|
1,847,768 |
|
Biotechnology
— 2.0% |
|
|
AbbVie,
Inc. |
8,834 |
|
1,187,820 |
|
Amgen,
Inc. |
1,724 |
|
414,277 |
|
Vertex
Pharmaceuticals, Inc.(1)
|
1,672 |
|
471,103 |
|
|
|
2,073,200 |
|
Building
Products — 1.6% |
|
|
Johnson
Controls International PLC |
20,334 |
|
1,100,883 |
|
Masco
Corp. |
10,435 |
|
530,828 |
|
|
|
1,631,711 |
|
Capital
Markets — 4.7% |
|
|
Ameriprise
Financial, Inc. |
2,645 |
|
708,886 |
|
BlackRock,
Inc. |
1,516 |
|
1,010,247 |
|
Intercontinental
Exchange, Inc. |
5,275 |
|
531,984 |
|
Morgan
Stanley |
20,130 |
|
1,715,479 |
|
S&P
Global, Inc. |
2,867 |
|
1,009,700 |
|
|
|
4,976,296 |
|
Chemicals
— 2.3% |
|
|
Air
Products and Chemicals, Inc. |
1,852 |
|
467,537 |
|
Ecolab,
Inc. |
2,973 |
|
487,066 |
|
Linde
PLC |
4,610 |
|
1,303,985 |
|
Sherwin-Williams
Co. |
696 |
|
161,542 |
|
|
|
2,420,130 |
|
Communications
Equipment — 1.9% |
|
|
Cisco
Systems, Inc. |
43,373 |
|
1,939,641 |
|
Consumer
Finance — 0.5% |
|
|
American
Express Co. |
3,633 |
|
552,216 |
|
Containers
and Packaging — 0.6% |
|
|
Ball
Corp. |
10,554 |
|
589,019 |
|
Diversified
Telecommunication Services — 1.1% |
|
|
Verizon
Communications, Inc. |
27,885 |
|
1,165,872 |
|
Electric
Utilities — 2.2% |
|
|
NextEra
Energy, Inc. |
27,182 |
|
2,312,101 |
|
Electrical
Equipment — 1.3% |
|
|
Eaton
Corp. PLC |
5,358 |
|
732,117 |
|
|
|
|
|
|
|
|
|
|
Sustainable
Equity ETF |
|
|
|
Shares |
Value |
Generac
Holdings, Inc.(1)
|
1,278 |
|
$ |
281,684 |
|
Rockwell
Automation, Inc. |
1,601 |
|
379,341 |
|
|
|
1,393,142 |
|
Electronic
Equipment, Instruments and Components — 2.1% |
|
|
CDW
Corp. |
5,806 |
|
991,084 |
|
Cognex
Corp. |
4,470 |
|
188,232 |
|
Keysight
Technologies, Inc.(1)
|
6,126 |
|
1,003,990 |
|
|
|
2,183,306 |
|
Energy
Equipment and Services — 2.1% |
|
|
Schlumberger
NV |
57,141 |
|
2,179,929 |
|
Entertainment
— 1.3% |
|
|
Electronic
Arts, Inc. |
3,542 |
|
449,374 |
|
Walt
Disney Co.(1)
|
8,155 |
|
914,012 |
|
|
|
1,363,386 |
|
Equity
Real Estate Investment Trusts (REITs) — 2.3% |
|
|
Prologis,
Inc. |
19,453 |
|
2,422,093 |
|
Food
and Staples Retailing — 2.6% |
|
|
Costco
Wholesale Corp. |
1,415 |
|
738,772 |
|
Kroger
Co. |
14,977 |
|
717,997 |
|
Sysco
Corp. |
15,554 |
|
1,278,850 |
|
|
|
2,735,619 |
|
Food
Products — 0.8% |
|
|
Mondelez
International, Inc., Class A |
13,533 |
|
837,151 |
|
Vital
Farms, Inc.(1)
|
3,757 |
|
48,653 |
|
|
|
885,804 |
|
Health
Care Equipment and Supplies — 1.3% |
|
|
Edwards
Lifesciences Corp.(1)
|
10,948 |
|
986,415 |
|
Medtronic
PLC |
1,819 |
|
159,926 |
|
ResMed,
Inc. |
1,023 |
|
224,978 |
|
|
|
1,371,319 |
|
Health
Care Providers and Services — 5.2% |
|
|
Cigna
Corp. |
5,909 |
|
1,674,906 |
|
CVS
Health Corp. |
12,726 |
|
1,249,057 |
|
Humana,
Inc. |
1,159 |
|
558,383 |
|
UnitedHealth
Group, Inc. |
3,811 |
|
1,979,167 |
|
|
|
5,461,513 |
|
Hotels,
Restaurants and Leisure — 1.1% |
|
|
Booking
Holdings, Inc.(1)
|
349 |
|
654,658 |
|
Chipotle
Mexican Grill, Inc.(1)
|
163 |
|
260,278 |
|
Expedia
Group, Inc.(1)
|
2,781 |
|
285,470 |
|
|
|
1,200,406 |
|
Household
Products — 1.6% |
|
|
Colgate-Palmolive
Co. |
6,348 |
|
496,477 |
|
Procter
& Gamble Co. |
8,789 |
|
1,212,355 |
|
|
|
1,708,832 |
|
Industrial
Conglomerates — 0.9% |
|
|
Honeywell
International, Inc. |
5,037 |
|
953,756 |
|
Insurance
— 2.1% |
|
|
Marsh
& McLennan Cos., Inc. |
4,467 |
|
720,840 |
|
Prudential
Financial, Inc. |
7,964 |
|
762,553 |
|
Travelers
Cos., Inc. |
4,372 |
|
706,690 |
|
|
|
2,190,083 |
|
|
|
|
|
|
|
|
|
|
Sustainable
Equity ETF |
|
|
|
Shares |
Value |
Interactive
Media and Services — 4.9% |
|
|
Alphabet,
Inc., Class A(1)
|
47,020 |
|
$ |
5,088,504 |
|
Internet
and Direct Marketing Retail — 3.2% |
|
|
Amazon.com,
Inc.(1)
|
26,721 |
|
3,387,421 |
|
IT
Services — 4.2% |
|
|
Accenture
PLC, Class A |
4,297 |
|
1,239,513 |
|
Mastercard,
Inc., Class A |
3,850 |
|
1,248,824 |
|
Visa,
Inc., Class A |
9,470 |
|
1,881,784 |
|
|
|
4,370,121 |
|
Life
Sciences Tools and Services — 2.1% |
|
|
Agilent
Technologies, Inc. |
8,167 |
|
1,047,418 |
|
Thermo
Fisher Scientific, Inc. |
2,114 |
|
1,152,806 |
|
|
|
2,200,224 |
|
Machinery
— 2.0% |
|
|
Cummins,
Inc. |
3,899 |
|
839,727 |
|
Deere
& Co. |
1,160 |
|
423,690 |
|
Parker-Hannifin
Corp. |
1,377 |
|
364,905 |
|
Xylem,
Inc. |
5,038 |
|
458,962 |
|
|
|
2,087,284 |
|
Media
— 0.4% |
|
|
Comcast
Corp., Class A |
11,249 |
|
407,101 |
|
Multiline
Retail — 0.4% |
|
|
Target
Corp. |
2,673 |
|
428,589 |
|
Oil,
Gas and Consumable Fuels — 2.5% |
|
|
ConocoPhillips |
23,927 |
|
2,618,810 |
|
Personal
Products — 0.3% |
|
|
Estee
Lauder Cos., Inc., Class A |
1,152 |
|
293,046 |
|
Pharmaceuticals
— 3.7% |
|
|
Bristol-Myers
Squibb Co. |
18,902 |
|
1,274,184 |
|
Merck
& Co., Inc. |
13,195 |
|
1,126,325 |
|
Novo
Nordisk A/S, ADR |
6,202 |
|
658,032 |
|
Zoetis,
Inc. |
5,460 |
|
854,654 |
|
|
|
3,913,195 |
|
Road
and Rail — 1.3% |
|
|
Norfolk
Southern Corp. |
2,691 |
|
654,263 |
|
Uber
Technologies, Inc.(1)
|
6,880 |
|
197,868 |
|
Union
Pacific Corp. |
2,490 |
|
559,030 |
|
|
|
1,411,161 |
|
Semiconductors
and Semiconductor Equipment — 4.3% |
|
|
Advanced
Micro Devices, Inc.(1)
|
7,106 |
|
603,086 |
|
Analog
Devices, Inc. |
7,459 |
|
1,130,263 |
|
Applied
Materials, Inc. |
7,584 |
|
713,427 |
|
ASML
Holding NV, NY Shares |
1,232 |
|
603,606 |
|
NVIDIA
Corp. |
9,815 |
|
1,481,476 |
|
|
|
4,531,858 |
|
Software
— 10.0% |
|
|
Adobe,
Inc.(1)
|
1,471 |
|
549,330 |
|
Cadence
Design Systems, Inc.(1)
|
2,855 |
|
496,113 |
|
Microsoft
Corp. |
31,947 |
|
8,353,182 |
|
Salesforce,
Inc.(1)
|
4,105 |
|
640,873 |
|
ServiceNow,
Inc.(1)
|
621 |
|
269,899 |
|
|
|
|
|
|
|
|
|
|
Sustainable
Equity ETF |
|
|
|
Shares |
Value |
Workday,
Inc., Class A(1)
|
1,260 |
|
$ |
207,346 |
|
|
|
10,516,743 |
|
Specialty
Retail — 2.9% |
|
|
Home
Depot, Inc. |
6,158 |
|
1,776,090 |
|
TJX
Cos., Inc. |
14,347 |
|
894,536 |
|
Tractor
Supply Co. |
1,776 |
|
328,826 |
|
|
|
2,999,452 |
|
Technology
Hardware, Storage and Peripherals — 5.0% |
|
|
Apple,
Inc. |
33,286 |
|
5,233,225 |
|
Textiles,
Apparel and Luxury Goods — 0.9% |
|
|
Deckers
Outdoor Corp.(1)
|
1,086 |
|
349,225 |
|
NIKE,
Inc., Class B |
5,753 |
|
612,407 |
|
|
|
961,632 |
|
TOTAL
COMMON STOCKS
(Cost
$104,333,323) |
|
104,323,896 |
|
SHORT-TERM
INVESTMENTS — 0.4% |
|
|
Money
Market Funds — 0.4% |
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier
Class
(Cost
$368,997) |
368,997 |
|
368,997 |
|
TOTAL
INVESTMENT SECURITIES — 99.9%
(Cost
$104,702,320) |
|
104,692,893 |
|
OTHER
ASSETS AND LIABILITIES — 0.1% |
|
107,241 |
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
104,800,134 |
|
|
|
|
|
|
|
|
|
|
NOTES
TO SCHEDULE OF INVESTMENTS |
ADR |
- |
American
Depositary Receipt |
(1)Non-income
producing.
See
Notes to Financial Statements.
AUGUST 31,
2022
|
|
|
|
|
|
|
|
|
Sustainable
Growth ETF |
|
|
|
Shares |
Value |
COMMON
STOCKS — 99.6% |
|
|
Aerospace
and Defense — 0.5% |
|
|
Lockheed
Martin Corp. |
85 |
|
$ |
35,709 |
|
Air
Freight and Logistics — 0.9% |
|
|
United
Parcel Service, Inc., Class B |
298 |
|
57,964 |
|
Auto
Components — 0.9% |
|
|
Aptiv
PLC(1) |
623 |
|
58,207 |
|
Automobiles
— 3.4% |
|
|
Tesla,
Inc.(1) |
801 |
|
220,764 |
|
Beverages
— 3.0% |
|
|
Coca-Cola
Co. |
1,331 |
|
82,136 |
|
PepsiCo,
Inc. |
663 |
|
114,215 |
|
|
|
196,351 |
|
Biotechnology
— 2.6% |
|
|
AbbVie,
Inc. |
706 |
|
94,929 |
|
Vertex
Pharmaceuticals, Inc.(1) |
268 |
|
75,511 |
|
|
|
170,440 |
|
Building
Products — 2.1% |
|
|
Johnson
Controls International PLC |
1,153 |
|
62,423 |
|
Masco
Corp. |
1,343 |
|
68,318 |
|
Trex
Co., Inc.(1) |
216 |
|
10,107 |
|
|
|
140,848 |
|
Capital
Markets — 0.6% |
|
|
S&P
Global, Inc. |
108 |
|
38,035 |
|
Chemicals
— 1.2% |
|
|
Linde
PLC |
278 |
|
78,635 |
|
Commercial
Services and Supplies — 0.2% |
|
|
Copart,
Inc.(1) |
133 |
|
15,913 |
|
Communications
Equipment — 0.4% |
|
|
Cisco
Systems, Inc. |
660 |
|
29,515 |
|
Distributors
— 0.2% |
|
|
Pool
Corp. |
45 |
|
15,264 |
|
Electrical
Equipment — 0.9% |
|
|
Generac
Holdings, Inc.(1) |
67 |
|
14,767 |
|
Rockwell
Automation, Inc. |
186 |
|
44,071 |
|
|
|
58,838 |
|
Electronic
Equipment, Instruments and Components — 1.5% |
|
|
CDW
Corp. |
199 |
|
33,969 |
|
Cognex
Corp. |
301 |
|
12,675 |
|
Keysight
Technologies, Inc.(1) |
301 |
|
49,331 |
|
|
|
95,975 |
|
Energy
Equipment and Services — 0.6% |
|
|
Schlumberger
NV |
1,100 |
|
41,965 |
|
Entertainment
— 1.4% |
|
|
Electronic
Arts, Inc. |
296 |
|
37,554 |
|
Walt
Disney Co.(1) |
454 |
|
50,884 |
|
Warner
Bros Discovery, Inc.(1) |
387 |
|
5,124 |
|
|
|
93,562 |
|
Equity
Real Estate Investment Trusts (REITs) — 0.7% |
|
|
Prologis,
Inc. |
381 |
|
47,438 |
|
|
|
|
|
|
|
|
|
|
Sustainable
Growth ETF |
|
|
|
Shares |
Value |
Food
and Staples Retailing — 0.2% |
|
|
Kroger
Co. |
237 |
|
$ |
11,362 |
|
Food
Products — 0.5% |
|
|
Mondelez
International, Inc., Class A |
569 |
|
35,198 |
|
Health
Care Equipment and Supplies — 2.2% |
|
|
Align
Technology, Inc.(1) |
33 |
|
8,042 |
|
DexCom,
Inc.(1) |
180 |
|
14,798 |
|
Edwards
Lifesciences Corp.(1) |
617 |
|
55,592 |
|
IDEXX
Laboratories, Inc.(1) |
88 |
|
30,591 |
|
Inari
Medical, Inc.(1) |
53 |
|
3,675 |
|
Shockwave
Medical, Inc.(1) |
91 |
|
27,014 |
|
Tandem
Diabetes Care, Inc.(1) |
141 |
|
6,449 |
|
|
|
146,161 |
|
Health
Care Providers and Services — 3.6% |
|
|
Cigna
Corp. |
249 |
|
70,579 |
|
UnitedHealth
Group, Inc. |
314 |
|
163,070 |
|
|
|
233,649 |
|
Hotels,
Restaurants and Leisure — 0.8% |
|
|
Airbnb,
Inc., Class A(1) |
61 |
|
6,900 |
|
Chipotle
Mexican Grill, Inc.(1) |
16 |
|
25,549 |
|
Expedia
Group, Inc.(1) |
185 |
|
18,990 |
|
|
|
51,439 |
|
Household
Products — 1.1% |
|
|
Procter
& Gamble Co. |
529 |
|
72,970 |
|
Interactive
Media and Services — 6.6% |
|
|
Alphabet,
Inc., Class A(1) |
3,980 |
|
430,716 |
|
Internet
and Direct Marketing Retail — 6.3% |
|
|
Amazon.com,
Inc.(1) |
3,094 |
|
392,226 |
|
eBay,
Inc. |
545 |
|
24,051 |
|
|
|
416,277 |
|
IT
Services — 6.6% |
|
|
Accenture
PLC, Class A |
183 |
|
52,788 |
|
Mastercard,
Inc., Class A |
525 |
|
170,294 |
|
Okta,
Inc.(1) |
289 |
|
26,415 |
|
Snowflake,
Inc., Class A(1) |
65 |
|
11,762 |
|
Visa,
Inc., Class A |
850 |
|
168,903 |
|
|
|
430,162 |
|
Leisure
Products — 0.1% |
|
|
YETI
Holdings, Inc.(1) |
238 |
|
8,780 |
|
Life
Sciences Tools and Services — 1.5% |
|
|
Agilent
Technologies, Inc. |
379 |
|
48,607 |
|
Illumina,
Inc.(1) |
128 |
|
25,810 |
|
West
Pharmaceutical Services, Inc. |
78 |
|
23,142 |
|
|
|
97,559 |
|
Machinery
— 1.3% |
|
|
Deere
& Co. |
230 |
|
84,008 |
|
Multiline
Retail — 0.4% |
|
|
Nordstrom,
Inc. |
341 |
|
5,835 |
|
Target
Corp. |
113 |
|
18,118 |
|
|
|
23,953 |
|
|
|
|
|
|
|
|
|
|
Sustainable
Growth ETF |
|
|
|
Shares |
Value |
Oil,
Gas and Consumable Fuels — 0.6% |
|
|
ConocoPhillips |
357 |
|
$ |
39,074 |
|
Personal
Products — 0.2% |
|
|
Estee
Lauder Cos., Inc., Class A |
40 |
|
10,175 |
|
Pharmaceuticals
— 3.1% |
|
|
Eli
Lilly & Co. |
120 |
|
36,148 |
|
Novo
Nordisk A/S, ADR |
1,100 |
|
116,710 |
|
Zoetis,
Inc. |
303 |
|
47,428 |
|
|
|
200,286 |
|
Road
and Rail — 0.9% |
|
|
Uber
Technologies, Inc.(1) |
1,161 |
|
33,391 |
|
Union
Pacific Corp. |
118 |
|
26,492 |
|
|
|
59,883 |
|
Semiconductors
and Semiconductor Equipment — 7.6% |
|
|
Advanced
Micro Devices, Inc.(1) |
893 |
|
75,789 |
|
Analog
Devices, Inc. |
125 |
|
18,941 |
|
Applied
Materials, Inc. |
499 |
|
46,941 |
|
ASML
Holding NV, NY Shares |
208 |
|
101,907 |
|
Lam
Research Corp. |
114 |
|
49,922 |
|
NVIDIA
Corp. |
1,335 |
|
201,505 |
|
|
|
495,005 |
|
Software
— 19.7% |
|
|
Adobe,
Inc.(1) |
164 |
|
61,244 |
|
Cadence
Design Systems, Inc.(1) |
374 |
|
64,990 |
|
Crowdstrike
Holdings, Inc., Class A(1) |
167 |
|
30,496 |
|
Datadog,
Inc., Class A(1) |
178 |
|
18,681 |
|
Fair
Isaac Corp.(1) |
14 |
|
6,292 |
|
HubSpot,
Inc.(1) |
36 |
|
12,133 |
|
Intuit,
Inc. |
43 |
|
18,567 |
|
Microsoft
Corp. |
3,367 |
|
880,369 |
|
PagerDuty,
Inc.(1) |
633 |
|
16,483 |
|
Salesforce,
Inc.(1) |
299 |
|
46,680 |
|
ServiceNow,
Inc.(1) |
182 |
|
79,101 |
|
Splunk,
Inc.(1) |
255 |
|
22,958 |
|
Workday,
Inc., Class A(1) |
194 |
|
31,925 |
|
|
|
1,289,919 |
|
Specialty
Retail — 3.4% |
|
|
Home
Depot, Inc. |
384 |
|
110,753 |
|
TJX
Cos., Inc. |
1,080 |
|
67,338 |
|
Ulta
Beauty, Inc.(1) |
85 |
|
35,689 |
|
Williams-Sonoma,
Inc. |
61 |
|
9,074 |
|
|
|
222,854 |
|
Technology
Hardware, Storage and Peripherals — 10.5% |
|
|
Apple,
Inc. |
4,367 |
|
686,580 |
|
Textiles,
Apparel and Luxury Goods — 1.3% |
|
|
Deckers
Outdoor Corp.(1) |
102 |
|
32,800 |
|
NIKE,
Inc., Class B |
515 |
|
54,822 |
|
|
|
87,622 |
|
TOTAL
COMMON STOCKS
(Cost
$7,287,618) |
|
6,529,055 |
|
|
|
|
|
|
|
|
|
|
Sustainable
Growth ETF |
|
|
|
Shares |
Value |
SHORT-TERM
INVESTMENTS — 0.3% |
|
|
Money
Market Funds — 0.3% |
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier Class
(Cost $20,203) |
20,203 |
|
$ |
20,203 |
|
TOTAL
INVESTMENT SECURITIES — 99.9%
(Cost
$7,307,821) |
|
6,549,258 |
|
OTHER
ASSETS AND LIABILITIES — 0.1% |
|
3,555 |
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
6,552,813 |
|
|
|
|
|
|
|
|
|
|
NOTES
TO SCHEDULE OF INVESTMENTS |
ADR |
- |
American
Depositary Receipt |
(1)Non-income
producing.
See
Notes to Financial Statements.
|
|
|
Statements
of Assets and Liabilities |
|
|
|
|
|
|
|
|
|
AUGUST 31,
2022 |
|
|
Mid
Cap Growth Impact ETF |
Sustainable
Equity ETF |
Assets |
|
Investment
securities, at value (cost of $26,161,472 and $104,702,320, respectively)
— including $120,684 and $—, respectively of securities on loan |
$ |
23,782,154 |
|
$ |
104,692,893 |
|
Investment
made with cash collateral received for securities on loan, at value (cost
of $123,740 and $—, respectively) |
123,740 |
|
— |
|
Total
investment securities, at value (cost of $26,285,212 and $104,702,320,
respectively) |
23,905,894 |
|
104,692,893 |
|
Dividends
and interest receivable |
6,956 |
|
143,756 |
|
Securities
lending receivable |
60 |
|
— |
|
|
23,912,910 |
|
104,836,649 |
|
|
|
|
Liabilities |
|
|
Payable
for collateral received for securities on loan |
123,740 |
|
— |
|
Accrued
management fees |
9,842 |
|
36,515 |
|
|
133,582 |
|
36,515 |
|
|
|
|
Net
Assets |
$ |
23,779,328 |
|
$ |
104,800,134 |
|
|
|
|
Shares
outstanding (unlimited number of shares authorized) |
540,000 |
|
2,150,000 |
|
|
|
|
Net
Asset Value Per Share |
$ |
44.04 |
|
$ |
48.74 |
|
|
|
|
Net
Assets Consist of: |
|
|
Capital
paid in |
$ |
29,041,230 |
|
$ |
109,252,139 |
|
Distributable
earnings |
(5,261,902) |
|
(4,452,005) |
|
|
$ |
23,779,328 |
|
$ |
104,800,134 |
|
See
Notes to Financial Statements.
|
|
|
|
|
|
AUGUST 31,
2022 |
|
Sustainable
Growth ETF |
Assets |
Investment
securities, at value (cost of $7,307,821) |
$ |
6,549,258 |
|
Dividends
and interest receivable |
5,878 |
|
|
6,555,136 |
|
|
|
Liabilities |
|
Accrued
management fees |
2,323 |
|
|
|
Net
Assets |
$ |
6,552,813 |
|
|
|
Shares
outstanding (unlimited number of shares authorized) |
190,000 |
|
|
|
Net
Asset Value Per Share |
$ |
34.49 |
|
|
|
Net
Assets Consist of: |
|
Capital
paid in |
$ |
7,703,059 |
|
Distributable
earnings |
(1,150,246) |
|
|
$ |
6,552,813 |
|
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
YEAR
ENDED AUGUST 31, 2022 |
|
|
Mid
Cap Growth Impact ETF |
Sustainable
Equity ETF |
Investment
Income (Loss) |
|
Income: |
|
|
Dividends
(net of foreign taxes withheld of $— and $3,599, respectively) |
$ |
67,118 |
|
$ |
1,829,307 |
|
Interest |
2,754 |
|
1,683 |
|
Securities
lending, net |
143 |
|
— |
|
|
70,015 |
|
1,830,990 |
|
|
|
|
Expenses: |
|
|
Management
fees |
108,165 |
|
542,552 |
|
|
|
|
Net
investment income (loss) |
(38,150) |
|
1,288,438 |
|
|
|
|
Realized
and Unrealized Gain (Loss) |
|
|
Net
realized gain (loss) on investment transactions |
(1,116,341) |
|
12,237,994 |
|
Change
in net unrealized appreciation (depreciation) on investments |
(6,850,129) |
|
(34,780,883) |
|
|
|
|
Net
realized and unrealized gain (loss) |
(7,966,470) |
|
(22,542,889) |
|
|
|
|
Net
Increase (Decrease) in Net Assets Resulting from Operations |
$ |
(8,004,620) |
|
$ |
(21,254,451) |
|
See
Notes to Financial Statements.
|
|
|
|
|
|
YEAR
ENDED AUGUST 31, 2022 |
|
Sustainable
Growth ETF |
Investment
Income (Loss) |
Income: |
|
Dividends
(net of foreign taxes withheld of $623) |
$ |
44,202 |
|
Interest |
92 |
|
|
44,294 |
|
|
|
Expenses: |
|
Management
fees |
25,380 |
|
|
|
Net
investment income (loss) |
18,914 |
|
|
|
Realized
and Unrealized Gain (Loss) |
|
Net
realized gain (loss) on investment transactions |
(409,268) |
|
Change
in net unrealized appreciation (depreciation) on investments |
(1,158,774) |
|
|
|
Net
realized and unrealized gain (loss) |
(1,568,042) |
|
|
|
Net
Increase (Decrease) in Net Assets Resulting from Operations |
$ |
(1,549,128) |
|
See
Notes to Financial Statements.
|
|
|
Statements
of Changes in Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEARS
ENDED AUGUST 31, 2022 AND AUGUST 31, 2021 |
|
Mid
Cap Growth Impact ETF |
Sustainable
Equity ETF |
Increase
(Decrease) in Net Assets |
August
31, 2022 |
August
31, 2021 |
August
31, 2022 |
August
31, 2021 |
Operations |
|
|
Net
investment income (loss) |
$ |
(38,150) |
|
$ |
(23,635) |
|
$ |
1,288,438 |
|
$ |
1,130,539 |
|
Net
realized gain (loss) |
(1,116,341) |
|
184,057 |
|
12,237,994 |
|
5,728,347 |
|
Change
in net unrealized appreciation (depreciation) |
(6,850,129) |
|
3,888,428 |
|
(34,780,883) |
|
28,182,166 |
|
Net
increase (decrease) in net assets resulting from operations |
(8,004,620) |
|
4,048,850 |
|
(21,254,451) |
|
35,041,052 |
|
|
|
|
|
|
Distributions
to Shareholders |
|
|
|
|
From
earnings |
— |
|
— |
|
(1,219,340) |
|
(1,026,655) |
|
|
|
|
|
|
Capital
Share Transactions |
|
|
|
|
Proceeds
from shares sold |
17,585,267 |
|
13,522,367 |
|
52,262,088 |
|
56,555,628 |
|
Payments
for shares redeemed |
(7,918,146) |
|
(1,865,381) |
|
(75,423,895) |
|
(24,927,794) |
|
Net
increase (decrease) in net assets from capital share
transactions |
9,667,121 |
|
11,656,986 |
|
(23,161,807) |
|
31,627,834 |
|
|
|
|
|
|
Net
increase (decrease) in net assets |
1,662,501 |
|
15,705,836 |
|
(45,635,598) |
|
65,642,231 |
|
|
|
|
|
|
Net
Assets |
|
|
|
|
Beginning
of period |
22,116,827 |
|
6,410,991 |
|
150,435,732 |
|
84,793,501 |
|
End
of period |
$ |
23,779,328 |
|
$ |
22,116,827 |
|
$ |
104,800,134 |
|
$ |
150,435,732 |
|
|
|
|
|
|
Transactions
in Shares of the Funds |
|
|
|
|
Sold |
340,000 |
|
250,000 |
|
940,000 |
|
1,170,000 |
|
Redeemed |
(165,000) |
|
(35,000) |
|
(1,420,000) |
|
(460,000) |
|
Net
increase (decrease) in shares of the funds |
175,000 |
|
215,000 |
|
(480,000) |
|
710,000 |
|
See
Notes to Financial Statements.
|
|
|
|
|
|
|
|
|
YEAR
ENDED AUGUST 31, 2022 AND PERIOD ENDED AUGUST 31, 2021 |
|
Sustainable
Growth ETF |
Increase
(Decrease) in Net Assets |
August
31, 2022 |
August
31, 2021(1) |
Operations |
|
Net
investment income (loss) |
$ |
18,914 |
|
$ |
1,272 |
|
Net
realized gain (loss) |
(409,268) |
|
(9,099) |
|
Change
in net unrealized appreciation (depreciation) |
(1,158,774) |
|
400,211 |
|
Net
increase (decrease) in net assets resulting from operations |
(1,549,128) |
|
392,384 |
|
|
|
|
Distributions
to Shareholders |
|
|
From
earnings |
(13,482) |
|
— |
|
|
|
|
Capital
Share Transactions |
|
|
Proceeds
from shares sold |
2,444,496 |
|
5,651,186 |
|
Payments
for shares redeemed |
(372,643) |
|
— |
|
Net
increase (decrease) in net assets from capital share
transactions |
2,071,853 |
|
5,651,186 |
|
|
|
|
Net
increase (decrease) in net assets |
509,243 |
|
6,043,570 |
|
|
|
|
Net
Assets |
|
|
Beginning
of period |
6,043,570 |
|
— |
|
End
of period |
$ |
6,552,813 |
|
$ |
6,043,570 |
|
|
|
|
Transactions
in Shares of the Funds |
|
|
Sold |
60,000 |
|
140,000 |
|
Redeemed |
(10,000) |
|
— |
|
Net
increase (decrease) in shares of the funds |
50,000 |
|
140,000 |
|
(1)June
29, 2021 (fund inception) through August 31, 2021.
See
Notes to Financial Statements.
|
|
|
Notes
to Financial Statements |
AUGUST 31,
2022
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. Sustainable Growth ETF incepted on
June 29, 2021.
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
Board of Trustees has adopted valuation policies and procedures to guide the
investment advisor in the funds' investment valuation process and to provide
methodologies for the oversight of the funds' pricing function.
Equity
securities that are listed or traded on a domestic securities exchange are
valued at the last reported sales price or at the official closing price as
provided by the exchange. Equity securities traded on foreign securities
exchanges are generally valued at the closing price of such securities on the
exchange where primarily traded or at the close of the NYSE, if that is earlier.
If no last sales price is reported, or if local convention or regulation so
provides, the mean of the latest bid and asked prices may be used. Securities
traded over-the-counter are valued at the mean of the latest bid and asked
prices, the last sales price, or the official closing price.
Open-end
management investment companies are valued at the reported NAV per
share.
If
the funds determine that the market price for an investment is not readily
available or the valuation methods mentioned above do not reflect an
investment’s fair value, such investment is valued as determined in good faith
by the Board of Trustees or its delegate, in accordance with policies and
procedures adopted by the Board of Trustees. In its determination of fair value,
the funds may review several factors including, but not limited to, market
information regarding the specific investment or comparable investments and
correlation with other investment types, futures indices or general market
indicators. Circumstances that may cause the funds to use these procedures to
value an investment include, but are not limited to: an investment has been
declared in default or is distressed; trading in a security has been suspended
during the trading day or a security is not actively trading on its principal
exchange; prices received from a regular pricing source are deemed unreliable;
or there is a foreign market holiday and no trading occurred.
The
funds monitor for significant events occurring after the close of an
investment’s primary exchange but before each fund’s NAV per share is
determined. Significant events may include, but are not limited to: corporate
announcements and transactions; governmental action and political unrest that
could impact a specific investment or an investment sector; or armed conflicts,
natural disasters and similar events that could affect investments in a specific
country or region. The funds also monitor for significant fluctuations between
domestic and foreign markets, as evidenced by the U.S. market or such other
indicators that the Board of Trustees, or its delegate, deems appropriate. The
funds 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.
Segregated
Assets — In
accordance with the 1940 Act, the funds segregate assets on their books and
records to cover certain types of investment securities and other financial
instruments. American Century Investment Management, Inc. (ACIM) (the investment
advisor) monitors, on a daily basis, the securities segregated to ensure the
funds designate a sufficient amount of liquid assets, marked-to-market daily.
The funds may also receive assets or be required to pledge assets at the
custodian bank or with a broker for collateral requirements.
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. Each fund may elect to treat a portion of its payment to a redeeming
shareholder, which represents the pro rata share of undistributed net investment
income and net realized gains, as a distribution for federal income tax purposes
(tax equalization).
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.
The
following table reflects a breakdown of transactions accounted for as secured
borrowings, the gross obligation by the type of collateral pledged, and the
remaining contractual maturity of those transactions as of August 31,
2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remaining
Contractual Maturity of Agreements |
Fund/Securities
Lending Transactions(1) |
Overnight
and
Continuous |
<30
days |
Between
30
& 90 days |
>90
days |
Total |
Mid
Cap Growth Impact ETF |
Common
Stocks |
$ |
123,740 |
|
— |
|
— |
|
— |
|
$ |
123,740 |
|
Gross
amount of recognized liabilities for securities lending
transactions |
$ |
123,740 |
|
(1)Amount
represents the payable for cash collateral received for securities on loan. This
will generally be in the Overnight and Continuous column as the securities are
typically callable on demand.
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 10% and 66% of the shares of Mid Cap
Growth Impact ETF and Sustainable Growth ETF, respectively. Related parties do
not invest in the funds 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% |
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, 2022 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
Mid
Cap Growth Impact ETF |
Sustainable
Equity ETF |
Sustainable
Growth ETF |
Purchases |
$10,460,470 |
$30,642,094 |
$1,948,097 |
Sales |
$10,285,647 |
$28,855,996 |
$1,904,369 |
Securities
received or delivered in kind through subscriptions and redemptions and in kind
net realized gain (loss) for the period ended August 31, 2022 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
In
kind Subscriptions |
In
kind Redemptions |
In
kind Net Realized Gain/(Loss)* |
Mid
Cap Growth Impact ETF |
$16,899,888 |
$7,602,890 |
$1,592,068 |
Sustainable
Equity ETF |
$46,888,848 |
$71,768,008 |
$16,603,849 |
Sustainable
Growth ETF |
$2,384,602 |
$362,134 |
$7,010 |
*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, 2022 and
August 31, 2021 (except as noted) were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
2021 |
|
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 |
$ |
1,219,340 |
|
— |
|
$ |
1,026,655 |
|
— |
|
Sustainable
Growth ETF(1) |
$ |
13,482 |
|
— |
|
— |
|
— |
|
(1)June
29, 2021 (fund inception) through August 31, 2021.
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 |
$ |
1,483,139 |
|
$ |
16,594,854 |
|
(19,980) |
|
Distributable
earnings |
$ |
(1,483,139) |
|
$ |
(16,594,854) |
|
19,980 |
|
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 |
$ |
26,371,870 |
|
$ |
105,078,846 |
|
$ |
7,332,280 |
|
Gross
tax appreciation of investments |
$ |
1,846,203 |
|
$ |
6,016,523 |
|
$ |
211,882 |
|
Gross
tax depreciation of investments |
(4,312,179) |
|
(6,402,476) |
|
(994,904) |
|
Net
tax appreciation (depreciation) of investments |
$ |
(2,465,976) |
|
$ |
(385,953) |
|
$ |
(783,022) |
|
Undistributed
ordinary income |
— |
|
$ |
142,411 |
|
$ |
6,680 |
|
Accumulated
short-term capital losses |
$ |
(2,413,713) |
|
$ |
(3,055,556) |
|
$ |
(358,971) |
|
Accumulated
long-term capital losses |
$ |
(339,568) |
|
$ |
(1,152,907) |
|
$ |
(14,933) |
|
Late-year
ordinary loss deferral |
$ |
(42,645) |
|
— |
|
— |
|
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.
Loss
deferrals represent certain qualified losses that the fund has elected to treat
as having been incurred in the following fiscal year for federal income tax
purposes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
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.
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 |
|
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.
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 |
|