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Annual
Report |
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August
31, 2022 |
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American
Century®
Low Volatility ETF (LVOL) |
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American
Century®
Quality Convertible Securities ETF (QCON) |
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American
Century®
Quality Diversified International ETF (QINT) |
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American
Century®
Quality Preferred ETF (QPFF) |
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American
Century®
STOXX®
U.S.
Quality Growth ETF (QGRO) |
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American
Century®
STOXX®
U.S.
Quality Value ETF (VALQ) |
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| President’s
Letter |
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| Low
Volatility ETF |
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| Performance |
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| Portfolio
Commentary |
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| Fund
Characteristics |
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| Quality
Convertible Securities ETF |
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| Performance |
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| Portfolio
Commentary |
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| Fund
Characteristics |
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| Quality
Diversified International ETF |
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| Performance |
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| Portfolio
Commentary |
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| Fund
Characteristics |
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| Quality
Preferred ETF |
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| Performance |
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| Portfolio
Commentary |
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| Fund
Characteristics |
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STOXX®
U.S. Quality Growth ETF |
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| Performance |
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| Portfolio
Commentary |
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| Fund
Characteristics |
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STOXX®
U.S. Quality Value 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.
The
STOXX®
Index
is the intellectual property (including registered trademarks) of STOXX Limited,
Zurich, Switzerland ("STOXX"), Deutsche Börse Group or their licensors, which is
used under license. The funds are neither sponsored nor promoted, distributed or
in any other manner supported by STOXX, Deutsche Börse Group or their licensors,
research partners or data providers and STOXX, Deutsche Börse Group and their
licensors, research partners or data providers do not give any warranty, and
exclude any liability (whether in negligence or otherwise) with respect thereto
generally or specifically in relation to any errors, omissions or interruptions
in the STOXX®
Index or its data.
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
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| Low
Volatility ETF (LVOL) |
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| Total
Returns as of August 31, 2022 |
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Average
Annual Returns |
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1
year |
Since
Inception |
Inception
Date |
| Net
Asset Value |
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-11.98% |
3.55% |
1/12/2021 |
| Market
Price |
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-11.99% |
3.55% |
1/12/2021 |
| S&P
500 Index |
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|
-11.23% |
3.99% |
— |
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 January 12, 2021 |
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| Value
on August 31, 2022 |
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Net
Asset Value — $10,586 |
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S&P
500 Index — $10,659 |
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Total
Annual Fund Operating Expenses |
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0.29% |
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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 americancenturyetfs.com. For additional information
about the funds, please consult the prospectus.
Portfolio
Managers: Steve Rossi and Rene Casis
During
the period, Tsuyoshi Ozaki left the fund’s management team.
Fund
Strategy
American
Century Low Volatility ETF is an actively managed fund that seeks to deliver
long-term market returns while realizing less volatility, particularly in
downturns. We seek to achieve the long-term growth of equities, while minimizing
the variability of returns by emphasizing strong fundamentals to limit potential
risk of speculative companies with questionable profits. We utilize proprietary
models to screen and rank companies based on fundamental metrics typically
derived from financial statement data and market information but may include
other sources. The fund seeks to deliver a lower realized portfolio volatility
than its benchmark, the S&P 500 Index, by utilizing a stock selection
process that expands on traditional measures of price volatility by including
measures of asymmetric (e.g., downside) volatility and seeking securities of
businesses that demonstrate consistent cash flows, stable operations and strong
balance sheets.
Performance
Review
The
fund returned -11.99% on a market price basis for its fiscal year ended August
31, 2022. On a net asset value (NAV) basis, the fund returned -11.98%. For the
same 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.
Materials
and Health Care Weighed on Relative Performance
Stock
choices and an underweight allocation meant materials stocks detracted the most
from relative performance. Chemical companies LyondellBasell Industries and
Linde were leading detractors amid weakening demand and poor pricing for
plastic.
In
the health care sector, stock choices among health care equipment and supplies
companies detracted. Medical device makers Stryker and Medtronic underperformed
amid production challenges resulting from supply chain disruptions and ongoing
pandemic-related disruptions to medical procedures.
Other
Detractors
Other
significant detractors from performance compared with the benchmark were Apple,
Amazon and Tesla. These were stocks that held up relatively well during a
difficult period for equities, and to which the portfolio had less exposure than
the benchmark, or in the case of Tesla, no exposure. The stocks tend to be
volatile and comparatively unappealing based on our multipronged approach to
limiting volatility.
Industrials
and Information Technology Stocks Benefited Relative Performance
The
leading contributions to performance compared with the benchmark came from
commercial services and supplies companies Waste Management and Republic
Services. These companies produced solid results and raised future guidance amid
strong demand for environmental, recycling and sustainability services.
Elsewhere in the sector, aerospace and defense firm General Dynamics performed
well amid strong defense spending given the ongoing war in Ukraine.
Several
information technology holdings were top contributors to relative performance.
It was beneficial to have less exposure than the benchmark to semiconductors and
semiconductor equipment companies NVIDIA and Intel. Chipmakers were vulnerable
to declines after performing well at the height of the pandemic, when demand for
chips used in gaming, cryptocurrencies and cloud computing surged. But
semiconductor demand fell during the period as the pandemic eased and the threat
of recession loomed. We had no exposure to Intel and eliminated our stake in
NVIDIA during the period.
Portfolio
Positioning
We
manage the portfolio by allocating to one or more investment sleeves:
Stand-alone strategies designed to generate alpha from distinct market segments.
Each sleeve emphasizes domain-specific, fundamental drivers of investment
performance, validated through empirical research.
In
contrast with more naïve approaches, which typically rely on only a single,
backward-looking measure of risk, the low-volatility strategy utilizes a
three-pronged approach focused specifically on downside volatility. The approach
incorporates fundamental business risks (balance sheet and earnings quality),
trailing stock volatility measures (downside beta) and traditional risk measures
(price volatility).
As
a result of this process, our largest overweight positions at period-end were in
the consumer staples, financials and industrials sectors.
We
also maintained sizable absolute weighting in the information technology sector,
reflecting this segment’s significant representation in the index. The consumer
discretionary and communication services sectors were our largest
underweights.
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| AUGUST
31, 2022 |
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| Low
Volatility ETF |
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| Types
of Investments in Portfolio |
%
of net assets |
| Common
Stocks |
99.3% |
| Short-Term
Investments |
0.6% |
| Other
Assets and Liabilities |
0.1% |
|
|
| Top
Five Industries |
%
of net assets |
| Insurance |
7.4% |
| Health
Care Equipment and Supplies |
7.2% |
| Commercial
Services and Supplies |
5.5% |
| Household
Products |
5.4% |
| Technology
Hardware, Storage and Peripherals |
5.1% |
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| Quality
Convertible Securities ETF (QCON) |
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| Total
Returns as of August 31, 2022 |
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|
|
Average
Annual Returns |
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|
1
year |
|
|
Since
Inception |
Inception
Date |
| Net
Asset Value |
-13.13% |
|
|
-10.55% |
2/16/2021 |
| Market
Price |
-12.85% |
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|
-10.49% |
2/16/2021 |
| ICE
BofA Convertible Index |
-16.35% |
|
|
-12.15% |
— |
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 Cboe BZX Exchange, Inc.
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|
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| Growth
of $10,000 Over Life of Fund |
| $10,000
investment made February 16, 2021 |
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| Value
on August 31, 2022 |
|
Net
Asset Value — $8,424 |
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ICE
BofA Convertible Index — $8,195 |
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Total
Annual Fund Operating Expenses |
|
|
|
|
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|
|
0.32% |
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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 americancenturyetfs.com. For additional information
about the funds, please consult the prospectus.
Portfolio
Managers: Rene Casis and Hitesh Patel
Fund
Strategy
American
Century Quality Convertible Securities ETF seeks to offer enhanced return
potential versus passive capitalization-weighted convertible bond portfolios.
The fund seeks to capitalize on the deficiencies inherent in passive indices,
which ignore various fundamental and market risks, to deliver potential
outperformance and downside protection.
We
employ a holistic approach, emphasizing high-quality, growth-oriented names
through a series of quantitative screens and fundamental oversight. We enhance
the investment process via fundamental and technical measures. These include
sales or earnings growth, profitability, leverage, balance sheet strength, price
momentum relative to peers and valuation and yield relative to other convertible
securities.
We
seek to integrate fundamental and quantitative analysis to develop a diversified
portfolio with an optimal balance between risk and return. We consider each
portfolio security’s fundamental scores, structural features, benchmark weight
and equity sensitivity.
The
fund is an actively managed exchange-traded fund (ETF) that combines
quantitative and fundamental insights implemented with ETF portfolio management
expertise to seek maximize tax efficiency. The fund actively manages beta
exposure, seeking an optimal mix of bond- and equity-sensitive securities. We
have the flexibility to act in response to corporate actions, market
dislocations and changes to regulatory, tax and monetary policy and other
macroeconomic considerations.
Performance
Review
The
American Century Quality Convertible Securities ETF returned -12.85% on a market
price basis for the 12-month period ended August 31, 2022. On a net asset value
(NAV) basis, the fund returned -13.13%. For the same period, the ICE BofA
Convertible Index, the fund’s benchmark index, returned -16.35%. The fund’s NAV
and market price returns reflect fees and operating expenses, while the index
return does not.
Market
Overview
The
U.S. equity and credit markets experienced a tumultuous 12-month period,
declining sharply amid mounting inflationary pressures and increasingly hawkish
Federal Reserve (Fed) policy. Additionally, Russia’s invasion of Ukraine in
February and the spread of the omicron variant of COVID-19 disrupted global
supply chains and led to surging oil and commodity prices. These factors
exacerbated economic concerns and triggered bouts of market
volatility.
The
entire U.S. Treasury yield curve shifted higher over the period, and several
segments along the curve inverted, a potential harbinger of future recession.
For example, the two- to 10-year segment declined 140 basis points (bps) in the
last 12 months, as two-year Treasury yields rose 328 bps and 10-year Treasury
yields climbed 188 bps. The sharp rise in rates hampered credit markets, and
investment-grade and high-yield bonds posted double-digit declines.
Broad
U.S. equity indices also posted precipitous losses. Larger-capitalization
(larger-cap) stocks weathered the stress better than small-cap stocks, and value
stocks generally fared better than growth stocks.
The
convertible bond market was not immune to the broader market stress, and it also
declined. Although convertibles have a high degree of correlation with the
underlying equity, they generally fared better due to their bond profiles
providing some downside risk mitigation. Smaller-cap growth companies, which
tend to be the dominant issuers of convertibles, suffered sharp losses for the
period.
Defensive
Positioning, Quality Focus Drove Fund’s Relative Outperformance
Our
more actively managed risk-balanced positioning relative to the benchmark
primarily accounted for the fund’s outperformance versus the index.
Investors’
expectations for rising costs to curb consumer demand and weigh on company
profit margins led to broad-based selling and negative returns across most
sectors. However, stocks in the energy sector benefited from rising oil and
natural gas prices. Additionally, as investors sought more defensive
positioning, the utilities and consumer staples sectors generated slightly
positive returns. Meanwhile, growth sectors, such as technology,
telecommunications and consumer discretionary, were among the weakest. Rising
rates in the first half of 2022 weighed on valuations of their underlying
equities.
The
fund’s underweight position versus the index in convertibles from growth sectors
aided relative results. Moreover, the fund’s overweight position in consumer
staples, utilities and health care convertibles boosted performance. These
defensive sectors were more resilient than cyclical and growth sectors. The fund
also benefited from an opportunistic overweight to convertibles in the energy
sector.
Security
selection, particularly in the technology, health care and telecommunications
sectors, was also a key driver of the fund’s relative outperformance. We focused
on convertibles from profitable companies with reasonable valuations. These
securities experienced less volatility than growth companies that were not
profitable or trading at more expensive multiples. The fund also had less
exposure to convertibles with higher sensitivity to the underlying equity of the
issuer, which helped reduce exposure to market volatility.
Portfolio
Positioning
U.S.
economic growth is slowing, and recession risk is rising. While we expect
headline inflation to decline from peak levels, core inflation may stay
elevated. Goods-related inflation may fade as supply chain issues improve, but
we expect services-related inflation to stay elevated as rents and wages remain
high.
Sustained
high inflation likely will keep the Fed on a persistent tightening path. While
earnings generally have held up so far, we expect higher costs will eventually
dampen corporate earnings for many firms. This dynamic likely will spur
continued market volatility and potentially trigger further weakness in equity
and credit markets through year-end.
We
are focusing on higher-quality issuers with profitable businesses and stronger
balance sheets. We believe these qualities should enable issuers to better
manage this period of expected elevated volatility. We also believe valuations
of certain growth companies have become more attractive, and we are adding to
positions we expect to benefit from strong, persistent secular
trends.
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|
| AUGUST
31, 2022 |
|
|
|
| Quality
Convertible Securities ETF |
|
| Types
of Investments in Portfolio |
%
of net assets |
| Convertible
Bonds |
72.3% |
| Convertible
Preferred Stocks |
19.4% |
| Common
Stocks |
5.1% |
| Short-Term
Investments |
2.9% |
| Other
Assets and Liabilities |
0.3% |
|
|
| Top
Five Industries |
%
of net assets |
| Software |
15.8% |
| Health
Care Equipment and Supplies |
7.4% |
| Semiconductors
and Semiconductor Equipment |
5.7% |
| Hotels,
Restaurants and Leisure |
4.7% |
| IT
Services |
4.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quality
Diversified International ETF (QINT) |
|
|
|
|
|
|
|
| Total
Returns as of August 31, 2022 |
|
|
|
|
|
Average
Annual Returns |
|
| |
|
|
|
|
1
year |
Since
Inception |
Inception
Date |
| Net
Asset Value |
|
|
|
|
-24.82% |
1.22% |
9/10/2018 |
| Market
Price |
|
|
|
|
-24.80% |
1.23% |
9/10/2018 |
| Alpha
Vee American Century Diversified International Equity Index |
|
|
|
|
-24.05% |
2.04% |
— |
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 September 10, 2018 |
|
|
|
|
|
|
| Value
on August 31, 2022 |
|
Net
Asset Value — $10,493 |
|
|
Alpha
Vee American Century Diversified International Equity Index —
$10,837 |
|
|
|
|
|
|
|
|
|
|
|
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: Peruvemba Satish, Rene Casis, Will Enderle and Paul Jo
In
August 2022, Will Enderle and Paul Jo joined the management team.
Effective
September 9, 2022, Peruvemba Satish will no longer serve as a portfolio manager
for American Century Quality Diversified International ETF.
Fund
Strategy
American
Century Quality Diversified International ETF seeks to deliver investment
results that closely correspond, before fees and expenses, to the performance of
the Alpha Vee American Century Diversified International Equity Index* (the
underlying index). The fund invests in a representative sample of securities
included in the underlying index that collectively has an investment profile
similar to the underlying index. Under normal market conditions, the fund
invests at least 80% of its assets, exclusive of collateral held from securities
lending, in the component securities of the underlying index.
The
underlying index is designed to select securities with attractive growth,
valuation and quality fundamentals. The universe of the index is comprised of
large- and mid-capitalization (mid-cap) equity securities of global issuers in
developed and emerging markets, excluding the U.S.
Performance
Review
For
the 12 months ended August 31, 2022, the fund returned -24.80% on a market price
basis. On a net asset value (NAV) basis, the fund returned -24.82%. For the same
time period, the underlying index returned -24.05%. The fund’s NAV and market
price returns reflect fees and operating expenses, while the index return does
not.
Non-U.S.
equities, as measured by the MSCI World ex USA Index** (world index), declined
during the reporting period. The world index, which is an unmanaged index
generally representative of the performance of large- and mid-cap non-U.S.
equities, returned -18.56%. The fund’s underperformance versus the world index
was largely due to the different compositions of the fund and the world index.
The fund tracks the Alpha Vee American Century Diversified International Equity
Index, which is designed to distinguish between high-quality value and growth
companies, primarily in developed markets, and dynamically allocates to each
category depending on the market environment.
Significant
disparities between the performance of growth and value stocks in non-U.S.
developed markets weighed on performance. Rising inflation and aggressive
central bank policy responses led investors to suddenly turn away from
higher-multiple growth stocks early in 2022. Value stocks continued to benefit
as concerns about a global economic slowdown mounted, particularly in the wake
of Russia’s invasion of Ukraine. However, growth stocks rebounded in early
summer. The fund’s dynamic allocation adjusted accordingly, but the monthly
rebalancing somewhat lagged the market’s rapid style rotations.
From
a sector perspective, the industrials, consumer discretionary, health care,
materials and financials sectors detracted from performance versus the world
index. Conversely, information technology holdings boosted relative performance,
with modest additional contribution from the real estate and consumer staples
sectors.
*On
September 9, 2022, the American Century Quality Diversified International ETF
began to track the American Century Quality Diversified International Equity
Index.
**The
MSCI World ex USA Index returns for the one-year and since-inception periods
ended August 31, 2022, were -18.56% and 2.13%, respectively.
Within
industrials, concerns about the slowing global economy weighed on machinery
stocks. Companies in the professional services industry, such as merger and
acquisition specialists and staffing agencies, also declined amid growing
economic uncertainty. Consumer discretionary stocks further detracted, led by
names in the hotels, restaurants and leisure industry and household durables.
Within health care, not owning AstraZeneca had a negative effect on relative
performance as the pharmaceuticals stock advanced strongly as part of the world
index. The materials sector also detracted, particularly mining and steel
manufacturing company Evraz, which declined sharply amid sanctions following
Russia’s invasion of Ukraine. Among financials, an underweight to banks weighed
on relative returns.
On
the upside, the information technology sector proved beneficial. Not owning
several stocks that underperformed notably as part of the world index, such as
Shopify in the IT services industry and SAP in the software industry,
contributed to relative performance.
Dynamic
allocation began the reporting period with growth at the maximum allocation
level, however, late in 2021, a shift began amid a market rotation toward value
stocks. By February 2022, value attained the maximum allocation level, where it
remained for six months. Toward the end of the period, the growth allocation
began to rise. The fund’s allocation ended the reporting period with an
approximately 51% allocation to value and 49% allocation to growth. Allocations
are rebalanced monthly, based on a strategy informed by recent risk-adjusted
performance.
|
|
|
|
|
|
| AUGUST
31, 2022 |
|
|
|
| Quality
Diversified International ETF |
|
| Types
of Investments in Portfolio |
%
of net assets |
| Common
Stocks |
98.9% |
| Short-Term
Investments |
1.4% |
| Other
Assets and Liabilities |
(0.3)% |
|
|
| Top
Five Countries |
%
of net assets |
| Japan |
19.8% |
| United
Kingdom |
11.8% |
| France |
11.0% |
| Canada |
8.7% |
| Australia |
5.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Quality
Preferred ETF (QPFF) |
|
|
|
|
|
| Total
Returns as of August 31, 2022 |
|
|
|
Average
Annual Returns |
|
| |
1
year |
|
|
Since
Inception |
Inception
Date |
| Net
Asset Value |
-8.58% |
|
|
-1.81% |
2/16/2021 |
| Market
Price |
-8.35% |
|
|
-1.70% |
2/16/2021 |
ICE
Exchange-Listed Preferred & Hybrid
Securities Index |
-11.34% |
|
|
-3.51% |
— |
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 Cboe BZX Exchange, Inc.
|
|
|
| Growth
of $10,000 Over Life of Fund |
| $10,000
investment made February 16, 2021 |
|
|
|
|
|
|
| Value
on August 31, 2022 |
|
Net
Asset Value — $9,723 |
|
|
ICE
Exchange-Listed Preferred & Hybrid Securities Index —
$9,465 |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
|
|
0.32% |
|
|
|
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: Rene Casis and Hitesh Patel
Fund
Strategy
American
Century Quality Preferred ETF seeks to offer high sustainable income and
attractive risk-adjusted returns compared with passive capitalization-weighted
preferred securities portfolios. The fund seeks to capitalize on the
deficiencies inherent in passive indices, which ignore various fundamental and
market risks, to deliver potential outperformance.
We
employ a holistic approach, emphasizing issuers we believe can sustain dividends
throughout the market cycle by focusing on earnings quality and profitability.
Through quantitative screens and fundamental oversight, we seek to avoid highly
levered issuers with poor credit quality. We enhance the investment process with
fundamental and technical measures. These include earnings quality,
profitability, leverage, balance sheet strength, valuation and yield relative to
other preferred securities.
We
seek to integrate fundamental and quantitative analysis to develop a diversified
portfolio with an optimal balance between risk and return. We consider each
portfolio security’s fundamental scores, structural features, benchmark weight
and equity sensitivity.
The
fund is an actively managed exchange-traded fund (ETF) that combines
quantitative and fundamental insights implemented with ETF portfolio management
expertise to seek to maximize tax efficiency.
Performance
Review
The
American Century Quality Preferred ETF returned -8.35% on a market price basis
for the 12-month period ended August 31, 2022. On a net asset value (NAV) basis,
the fund returned -8.58%. For the same period, the ICE Exchange-Listed Preferred
& Hybrid Securities Index, the fund’s benchmark, returned -11.34%. The
fund’s NAV and market price returns reflect fees and operating expenses, while
the index return does not.
Market
Overview
The
U.S. equity and credit markets experienced a tumultuous 12-month period,
declining sharply amid mounting inflationary pressures and increasingly hawkish
Federal Reserve (Fed) policy. Additionally, Russia’s invasion of Ukraine in
February and the spread of the omicron variant of COVID-19 disrupted global
supply chains and led to surging oil and commodity prices. These factors
exacerbated economic concerns and triggered bouts of market
volatility.
The
entire U.S. Treasury yield curve shifted higher over the period, and several
segments along the curve inverted, a potential harbinger of future recession.
For example, the two- to 10-year segment declined 140 basis points (bps) in the
last 12 months, as two-year Treasury yields rose 328 bps and 10-year Treasury
yields climbed 188 bps. The sharp rise in rates hampered credit markets, and
investment-grade and high-yield bonds posted double-digit declines.
Broad
U.S. equity indices also posted precipitous losses. Larger-capitalization
(larger-cap) stocks weathered the stress better than small-cap stocks, and value
stocks generally fared better than growth stocks.
Tracking
the broad decline among risk assets, the preferred securities market also
declined. Rising interest rates and widening credit spreads combined with the
market’s correlation with the equity market drove valuations of preferred
securities lower.
Defensive
Positioning, Duration Management Drove Fund’s Relative
Outperformance
Our
more actively managed risk-balanced positioning relative to the benchmark
primarily accounted for the fund’s outperformance versus the index.
We
positioned the fund for a fairly constructive macroeconomic environment for most
of 2021. However, in late 2021, we shifted tactically to a more defensive
posture amid stretched equity valuations and historically tight credit spreads.
The prospect of Fed tightening loomed as inflation expectations rose and
elevated prices appeared more persistent than transitory. Overall, the fund
entered 2022 positioned for a more volatile market environment.
Several
active and defensive measures helped the fund outperform the index in the
subsequent rising-rate period and for the entire fiscal year. In particular, we
maintained a much shorter duration than the index, which aided relative results.
We also reduced the fund’s exposure to broad market volatility. Additionally, we
shifted the fund’s sector allocations to reduce cyclical exposure in favor of a
more defensive and value orientation.
Portfolio
Positioning
U.S.
economic growth is slowing, and recession risk is rising. While we expect
headline inflation to decline from peak levels, core inflation may stay
elevated. Markets have now priced in higher rates, followed by subsequent cuts
once inflation and growth have abated. Credit spreads have widened on slowing
growth concerns, and we expect defaults to rise over the next 12
months.
We
believe preferred securities still appear attractive relative to other
fixed-income investments. These predominately high-quality securities currently
offer yields that are slightly lower than lower-quality high-yield corporate
credit. We also believe preferreds offer value relative to investment-grade
bonds, potentially offering yield advantages and less duration
risk.
We
have maintained a lower duration than the index. Recently, we have been adding
duration exposure due to the market pricing in significant rate hikes and due to
the increased risk of recession. We continue to favor higher-quality issues,
focusing on higher-coupon preferreds as credit concerns are rising. We also
remain overweight to value-oriented sectors, including banks that are well
capitalized and have maintained core capital ratios. We believe these issuers
may benefit from higher margins amid rising rates and loan growth.
|
|
|
|
|
|
| AUGUST
31, 2022 |
|
|
|
| Quality
Preferred ETF |
|
| Types
of Investments in Portfolio |
%
of net assets |
| Preferred
Stocks |
83.9% |
| Convertible
Preferred Stocks |
7.1% |
| Corporate
Bonds |
2.3% |
| Common
Stocks |
2.0% |
| Short-Term
Investments |
4.0% |
| Other
Assets and Liabilities |
0.7% |
|
|
| Top
Five Industries |
%
of net assets |
| Banks |
26.4% |
| Capital
Markets |
15.2% |
| Insurance |
14.5% |
| Multi-Utilities |
7.0% |
| Mortgage
Real Estate Investment Trusts (REITs) |
5.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOXX®
U.S. Quality Growth ETF (QGRO) |
|
|
|
|
|
|
|
| Total
Returns as of August 31, 2022 |
|
|
|
|
|
Average
Annual Returns |
|
|
|
|
|
|
1
year |
Since
Inception |
Inception
Date |
| Net
Asset Value |
|
|
|
|
-19.83% |
11.15% |
9/10/2018 |
| Market
Price |
|
|
|
|
-19.83% |
11.15% |
9/10/2018 |
|
iSTOXX®
American Century USA Quality Growth Index |
|
|
|
|
-19.68% |
11.53% |
— |
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 September 10, 2018 |
|
|
|
|
|
|
| Value
on August 31, 2022 |
|
Net
Asset Value — $15,222 |
|
|
iSTOXX®
American Century USA Quality Growth Index — $15,429 |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
|
|
0.29% |
|
|
|
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: Peruvemba Satish, Rene Casis, Will Enderle and Paul Jo
Will
Enderle and Paul Jo joined the investment management team in August
2022.
Fund
Strategy
American
Century STOXX®
U.S. Quality Growth ETF seeks to provide investment results that closely
correspond, before fees and expenses, to the performance of the
iSTOXX®
American Century USA Quality Growth Index (the underlying index). Under normal
market conditions, the fund invests at least 80% of its assets in the component
securities of the underlying index.
The
STOXX®
USA 900 Index, which consists of the 900 largest publicly traded U.S. equity
securities, defines the universe we use to create the underlying index. The
index is designed to measure the performance of securities in the universe and
identify those that exhibit higher growth and quality characteristics relative
to their peers. Though component securities of the underlying index may change
from time to time, the index typically consists of 150 to 250
securities.
Performance
Review
The
fund returned -19.83% on a market price basis for the 12 months ended August 31,
2022. On a net asset value (NAV) basis, the fund returned -19.83%. For the same
time period, the underlying index returned -19.68%. The fund fully replicated
the underlying index’s components during the reporting period. The fund’s NAV
and market price performance differed from the underlying index’s return due to
fees and operating expenses associated with the fund.
For
the same time period, the fund lagged market-capitalization-weighted growth
strategies, as measured by the Russell 1000 Growth Index* (growth index). The
growth index is an unmanaged index generally representative of the performance
of U.S. large-capitalization growth stocks. The fund’s underperformance versus
the growth index was largely due to the different compositions of the fund and
the growth index. Specifically, the fund tracks the underlying index, which is
designed to identify securities within the investment universe that exhibit
higher growth and quality characteristics as well as securities that offer
high-quality growth with attractive profitability and valuation relative to
their peers. This approach led to underperformance versus the growth index,
which selects and weights growth stocks based on market
capitalization.
From
a broad perspective, stock selection in the information technology sector helped
drive underperformance versus the growth index. Within information technology,
an underweight allocation to computers and peripherals stocks hampered
performance. Underweighting communication services benefited relative
performance, led by interactive media and services stocks.
The
fund’s allocation began and closed the fiscal year with a bias toward high
growth with a 65% weight in high growth and 35% weight in stable growth.
However, during the year the fund’s allocations were tilted more toward stable
growth, on average. Allocations are rebalanced monthly, based on a strategy
informed by recent risk-adjusted performance.
*The
Russell 1000 Growth Index returns for the one-year and since-inception periods
ended August 31, 2022, were -19.06% and 12.32%, respectively.
|
|
|
|
|
|
| AUGUST
31, 2022 |
|
|
|
|
STOXX®
U.S. Quality 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 |
21.6% |
| Semiconductors
and Semiconductor Equipment |
10.6% |
| Hotels,
Restaurants and Leisure |
6.1% |
| IT
Services |
5.1% |
| Biotechnology |
4.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOXX®
U.S. Quality Value ETF (VALQ) |
|
|
|
|
|
|
| Total
Returns as of August 31, 2022 |
|
|
|
|
Average
Annual Returns |
|
|
|
1
year |
|
|
Since
Inception |
Inception
Date |
| Net
Asset Value |
|
-7.70% |
|
|
5.49% |
1/11/2018 |
| Market
Price |
|
-7.69% |
|
|
5.50% |
1/11/2018 |
|
iSTOXX®
American Century USA Quality Value Index |
|
-7.41% |
|
|
5.79% |
— |
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 January 11, 2018 |
|
|
|
|
|
|
| Value
on August 31, 2022 |
|
Net
Asset Value — $12,815 |
|
|
iSTOXX®
American Century USA Quality Value Index — $12,985 |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
|
|
|
|
|
|
|
0.29% |
|
|
|
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: Peruvemba Satish, Rene Casis, Will Enderle and Paul Jo
Will
Enderle and Paul Jo joined the investment management team in August
2022.
Fund
Strategy
American
Century STOXX®
U.S. Quality Value ETF seeks to track the investment results (before fees and
expenses) of the iSTOXX®
American Century USA Quality Value Index (the underlying index). Under normal
market conditions, the fund invests at least 80% of its assets in the component
securities of the underlying index.
The
STOXX®
USA 900 Index, which consists of the 900 largest publicly traded U.S. equity
securities, defines the universe we use to create the underlying index. From
that universe, we use a rules-based methodology that screens and weights stocks
based on fundamental measures of quality, value and income. The resulting
underlying index is designed to include high-quality securities of large- and
mid-capitalization companies that are undervalued or have sustainable income.
Although component securities of the underlying index may change from time to
time, the index typically consists of 200 to 300 securities.
Performance
Review
The
fund returned -7.69% on a market price basis for the 12-month period ended
August 31, 2022. On a net asset value (NAV) basis, the fund returned -7.70%. For
the same time period, the underlying index returned -7.41%. The fund fully
replicated the underlying index’s components during the reporting period. The
fund’s NAV and market price returns reflect fees and operating expenses, while
the index return does not.
For
the same time period, the Russell 1000 Value Index* (value index), a
market-capitalization index, returned -6.23%. The value index is an unmanaged
index generally representative of the performance of U.S. large-capitalization
value stocks. The fund’s performance versus the value index was largely
attributable to the different compositions of the fund and the value index.
Specifically, the fund tracks the underlying index, which pursues risk-adjusted
returns by dynamically allocating among high-quality, attractively valued
companies and companies offering sustainable income.
From
a broad perspective, the fund’s stock selection in the consumer discretionary
sector detracted from performance relative to the value index, especially in the
specialty retail industry. Health care also detracted due to stock selection,
led by weakness in the biotechnology and health care providers and services
industries. Stock choices in industrials and an underweight allocation to
financials were top positive contributors to performance.
The
fund’s allocation closed the 12-month period with a 65% allocation to value and
a 35% allocation to income. Over the course of the year, the allocation to value
was as high as 80% and as low as 35%. Allocations are rebalanced monthly, based
on a strategy informed by recent risk-adjusted performance.
*The
Russell 1000 Value Index returns for the one-year and since-inception periods
ended August 31, 2022, were -6.23% and 6.00%, respectively.
|
|
|
|
|
|
| AUGUST
31, 2022 |
|
|
|
|
STOXX®
U.S. Quality Value ETF |
|
| Types
of Investments in Portfolio |
%
of net assets |
| Common
Stocks |
99.6% |
| Short-Term
Investments |
0.5% |
| Other
Assets and Liabilities |
(0.1)% |
|
|
| Top
Five Industries |
%
of net assets |
| Oil,
Gas and Consumable Fuels |
6.8% |
| Semiconductors
and Semiconductor Equipment |
5.6% |
| Health
Care Providers and Services |
5.4% |
| Biotechnology |
5.1% |
| Equity
Real Estate Investment Trusts (REITs) |
5.0% |
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) |
| Low
Volatility ETF |
|
|
| Actual |
$1,000 |
$925.40 |
$1.41 |
0.29% |
| Hypothetical |
$1,000 |
$1,023.74 |
$1.48 |
0.29% |
| Quality
Convertible Securities ETF |
|
|
| Actual |
$1,000 |
$908.30 |
$1.54 |
0.32% |
| Hypothetical |
$1,000 |
$1,023.59 |
$1.63 |
0.32% |
| Quality
Diversified International ETF |
|
|
| Actual |
$1,000 |
$846.40 |
$1.82 |
0.39% |
| Hypothetical |
$1,000 |
$1,023.24 |
$1.99 |
0.39% |
| Quality
Preferred ETF |
|
|
| Actual |
$1,000 |
$960.50 |
$1.58 |
0.32% |
| Hypothetical |
$1,000 |
$1,023.59 |
$1.63 |
0.32% |
|
STOXX®
U.S. Quality Growth ETF |
|
|
| Actual |
$1,000 |
$902.30 |
$1.39 |
0.29% |
| Hypothetical |
$1,000 |
$1,023.74 |
$1.48 |
0.29% |
|
STOXX®
U.S. Quality Value ETF |
|
|
| Actual |
$1,000 |
$937.00 |
$1.42 |
0.29% |
| Hypothetical |
$1,000 |
$1,023.74 |
$1.48 |
0.29% |
(1)Expenses
are equal to the fund's annualized expense ratio listed in the table above,
multiplied by the average account value over the period, multiplied by 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
|
|
|
|
|
|
|
|
|
| Low
Volatility ETF |
|
|
|
Shares |
Value |
|
COMMON
STOCKS — 99.3% |
|
|
| Aerospace
and Defense — 3.4% |
|
|
| General
Dynamics Corp. |
1,090 |
|
$ |
249,534 |
|
| Banks
— 2.8% |
|
|
| F.N.B.
Corp. |
2,007 |
|
23,923 |
|
| JPMorgan
Chase & Co. |
187 |
|
21,268 |
|
| Truist
Financial Corp. |
385 |
|
18,033 |
|
| U.S.
Bancorp |
3,134 |
|
142,942 |
|
|
|
206,166 |
|
| Beverages
— 5.0% |
|
|
| Coca-Cola
Co. |
4,940 |
|
304,847 |
|
| PepsiCo,
Inc. |
384 |
|
66,152 |
|
|
|
370,999 |
|
| Biotechnology
— 0.4% |
|
|
| Gilead
Sciences, Inc. |
443 |
|
28,117 |
|
| Capital
Markets — 4.7% |
|
|
| FactSet
Research Systems, Inc. |
52 |
|
22,534 |
|
| Moody's
Corp. |
195 |
|
55,481 |
|
| MSCI,
Inc. |
62 |
|
27,853 |
|
| Raymond
James Financial, Inc. |
188 |
|
19,622 |
|
| S&P
Global, Inc. |
57 |
|
20,074 |
|
| SEI
Investments Co. |
2,860 |
|
156,442 |
|
| T.
Rowe Price Group, Inc. |
377 |
|
45,240 |
|
|
|
347,246 |
|
| Chemicals
— 4.4% |
|
|
| Dow,
Inc. |
619 |
|
31,569 |
|
| Linde
PLC |
803 |
|
227,136 |
|
| LyondellBasell
Industries NV, Class A |
614 |
|
50,962 |
|
| Sherwin-Williams
Co. |
87 |
|
20,193 |
|
|
|
329,860 |
|
| Commercial
Services and Supplies — 5.5% |
|
|
| Cintas
Corp. |
201 |
|
81,775 |
|
|
Copart,
Inc.(1)
|
148 |
|
17,708 |
|
| Republic
Services, Inc. |
1,052 |
|
150,141 |
|
| Waste
Management, Inc. |
934 |
|
157,874 |
|
|
|
407,498 |
|
| Communications
Equipment — 3.7% |
|
|
| Cisco
Systems, Inc. |
6,106 |
|
273,060 |
|
| Diversified
Financial Services — 1.8% |
|
|
|
Berkshire
Hathaway, Inc., Class B(1)
|
466 |
|
130,853 |
|
| Diversified
Telecommunication Services — 0.7% |
|
|
| AT&T,
Inc. |
1,199 |
|
21,031 |
|
| Verizon
Communications, Inc. |
809 |
|
33,824 |
|
|
|
54,855 |
|
| Electronic
Equipment, Instruments and Components — 4.4% |
|
|
| Amphenol
Corp., Class A |
1,627 |
|
119,633 |
|
|
Keysight
Technologies, Inc.(1)
|
204 |
|
33,433 |
|
|
|
|
|
|
|
|
|
|
| Low
Volatility ETF |
|
|
|
Shares |
Value |
| TE
Connectivity Ltd. |
1,384 |
|
$ |
174,675 |
|
|
|
327,741 |
|
| Equity
Real Estate Investment Trusts (REITs) — 2.3% |
|
|
| Mid-America
Apartment Communities, Inc. |
665 |
|
110,170 |
|
| Public
Storage |
128 |
|
42,346 |
|
| WP
Carey, Inc. |
254 |
|
21,344 |
|
|
|
173,860 |
|
| Food
and Staples Retailing — 1.8% |
|
|
| Costco
Wholesale Corp. |
262 |
|
136,790 |
|
| Food
Products — 1.3% |
|
|
| Mondelez
International, Inc., Class A |
1,195 |
|
73,923 |
|
| Tyson
Foods, Inc., Class A |
264 |
|
19,900 |
|
|
|
93,823 |
|
| Health
Care Equipment and Supplies — 7.2% |
|
|
| Abbott
Laboratories |
1,488 |
|
152,743 |
|
|
Edwards
Lifesciences Corp.(1)
|
146 |
|
13,155 |
|
|
Intuitive
Surgical, Inc.(1)
|
79 |
|
16,253 |
|
| Medtronic
PLC |
1,980 |
|
174,082 |
|
| Stryker
Corp. |
879 |
|
180,371 |
|
|
|
536,604 |
|
| Hotels,
Restaurants and Leisure — 2.8% |
|
|
| McDonald's
Corp. |
762 |
|
192,237 |
|
| Starbucks
Corp. |
197 |
|
16,562 |
|
|
|
208,799 |
|
| Household
Products — 5.4% |
|
|
| Colgate-Palmolive
Co. |
1,704 |
|
133,270 |
|
| Procter
& Gamble Co. |
1,950 |
|
268,983 |
|
|
|
402,253 |
|
| Industrial
Conglomerates — 0.3% |
|
|
| 3M
Co. |
155 |
|
19,274 |
|
| Insurance
— 7.4% |
|
|
| Aflac,
Inc. |
1,370 |
|
81,405 |
|
|
Arch
Capital Group Ltd.(1)
|
1,539 |
|
70,363 |
|
| Brown
& Brown, Inc. |
473 |
|
29,818 |
|
| Chubb
Ltd. |
208 |
|
39,322 |
|
| Everest
Re Group Ltd. |
66 |
|
17,757 |
|
| Hanover
Insurance Group, Inc. |
152 |
|
19,667 |
|
| Hartford
Financial Services Group, Inc. |
354 |
|
22,766 |
|
| Marsh
& McLennan Cos., Inc. |
737 |
|
118,930 |
|
| Travelers
Cos., Inc. |
732 |
|
118,321 |
|
| WR
Berkley Corp. |
561 |
|
36,353 |
|
|
|
554,702 |
|
| Interactive
Media and Services — 1.0% |
|
|
|
Alphabet,
Inc., Class A(1)
|
656 |
|
70,992 |
|
| Internet
and Direct Marketing Retail — 0.5% |
|
|
|
Amazon.com,
Inc.(1)
|
296 |
|
37,524 |
|
| IT
Services — 4.8% |
|
|
| Accenture
PLC, Class A |
372 |
|
107,307 |
|
| Amdocs
Ltd. |
842 |
|
71,966 |
|
| Visa,
Inc., Class A |
915 |
|
181,819 |
|
|
|
361,092 |
|
|
|
|
|
|
|
|
|
|
| Low
Volatility ETF |
|
|
|
Shares |
Value |
| Life
Sciences Tools and Services — 1.2% |
|
|
| Danaher
Corp. |
332 |
|
$ |
89,610 |
|
| Machinery
— 3.7% |
|
|
| Dover
Corp. |
858 |
|
107,216 |
|
| IDEX
Corp. |
281 |
|
56,540 |
|
| Illinois
Tool Works, Inc. |
352 |
|
68,580 |
|
| Parker-Hannifin
Corp. |
66 |
|
17,490 |
|
| Snap-on,
Inc. |
114 |
|
24,836 |
|
|
|
274,662 |
|
| Media
— 1.1% |
|
|
| Comcast
Corp., Class A |
2,362 |
|
85,481 |
|
| Multi-Utilities
— 1.0% |
|
|
| Brookfield
Infrastructure Partners LP |
704 |
|
29,561 |
|
| NiSource,
Inc. |
1,451 |
|
42,819 |
|
|
|
72,380 |
|
| Oil,
Gas and Consumable Fuels — 3.4% |
|
|
| Devon
Energy Corp. |
338 |
|
23,870 |
|
| Exxon
Mobil Corp. |
2,207 |
|
210,967 |
|
| Marathon
Petroleum Corp. |
200 |
|
20,150 |
|
|
|
254,987 |
|
| Pharmaceuticals
— 3.0% |
|
|
| Bristol-Myers
Squibb Co. |
629 |
|
42,401 |
|
| Johnson
& Johnson |
854 |
|
137,785 |
|
| Zoetis,
Inc. |
295 |
|
46,176 |
|
|
|
226,362 |
|
| Semiconductors
and Semiconductor Equipment — 2.5% |
|
|
|
Advanced
Micro Devices, Inc.(1)
|
191 |
|
16,210 |
|
| Analog
Devices, Inc. |
219 |
|
33,185 |
|
| Broadcom,
Inc. |
173 |
|
86,346 |
|
| KLA
Corp. |
49 |
|
16,863 |
|
|
ON
Semiconductor Corp.(1)
|
286 |
|
19,668 |
|
| QUALCOMM,
Inc. |
129 |
|
17,063 |
|
|
|
189,335 |
|
| Software
— 4.8% |
|
|
|
Adobe,
Inc.(1)
|
38 |
|
14,191 |
|
| Microsoft
Corp. |
895 |
|
234,016 |
|
| Roper
Technologies, Inc. |
194 |
|
78,100 |
|
|
Synopsys,
Inc.(1)
|
99 |
|
34,256 |
|
|
|
360,563 |
|
| Specialty
Retail — 1.2% |
|
|
| Home
Depot, Inc. |
195 |
|
56,242 |
|
|
O'Reilly
Automotive, Inc.(1)
|
43 |
|
29,976 |
|
|
|
86,218 |
|
| Technology
Hardware, Storage and Peripherals — 5.1% |
|
|
| Apple,
Inc. |
2,427 |
|
381,573 |
|
| Textiles,
Apparel and Luxury Goods — 0.2% |
|
|
| NIKE,
Inc., Class B |
171 |
|
18,203 |
|
| Trading
Companies and Distributors — 0.5% |
|
|
| Fastenal
Co. |
702 |
|
35,332 |
|
|
TOTAL
COMMON STOCKS
(Cost
$7,465,448) |
|
7,396,348 |
|
|
|
|
|
|
|
|
|
|
| Low
Volatility ETF |
|
|
|
Shares |
Value |
|
SHORT-TERM
INVESTMENTS — 0.6% |
|
|
| Money
Market Funds — 0.6% |
|
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier Class
(Cost
$45,362) |
45,362 |
|
$ |
45,362 |
|
|
TOTAL
INVESTMENT SECURITIES — 99.9%
(Cost
$7,510,810) |
|
7,441,710 |
|
|
OTHER
ASSETS AND LIABILITIES — 0.1% |
|
8,602 |
|
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
7,450,312 |
|
|
|
|
|
|
|
|
|
|
| NOTES
TO SCHEDULE OF INVESTMENTS |
(1)Non-income
producing.
See
Notes to Financial Statements.
AUGUST 31,
2022
|
|
|
|
|
|
|
|
|
| Quality
Convertible Securities ETF |
|
|
|
Principal
Amount/Shares |
Value |
|
CONVERTIBLE
BONDS — 72.3% |
|
|
| Aerospace
and Defense — 0.7% |
|
|
| Parsons
Corp., 0.25%, 8/15/25 |
$ |
170,000 |
|
$ |
181,815 |
|
| Air
Freight and Logistics — 0.7% |
|
|
| Air
Transport Services Group, Inc., 1.125%, 10/15/24 |
148,000 |
|
164,798 |
|
| Airlines
— 1.0% |
|
|
| American
Airlines Group, Inc., 6.50%, 7/1/25 |
98,000 |
|
106,526 |
|
| Southwest
Airlines Co., 1.25%, 5/1/25 |
122,000 |
|
152,896 |
|
|
|
259,422 |
|
| Automobiles
— 1.3% |
|
|
|
Ford
Motor Co., 0.00%, 3/15/26(1) |
204,000 |
|
222,972 |
|
| Tesla,
Inc., 2.00%, 5/15/24 |
7,000 |
|
93,121 |
|
|
|
316,093 |
|
| Beverages
— 1.4% |
|
|
|
MGP
Ingredients, Inc., 1.875%, 11/15/41(2) |
271,000 |
|
348,751 |
|
| Biotechnology
— 3.3% |
|
|
|
Ascendis
Pharma A/S, 2.25%, 4/1/28(2) |
96,000 |
|
87,080 |
|
| Exact
Sciences Corp., 0.375%, 3/1/28 |
102,000 |
|
70,176 |
|
| Halozyme
Therapeutics, Inc., 0.25%, 3/1/27 |
261,000 |
|
233,921 |
|
| Insmed,
Inc., 0.75%, 6/1/28 |
94,000 |
|
93,389 |
|
| Intercept
Pharmaceuticals, Inc., 3.50%, 2/15/26 |
72,000 |
|
81,630 |
|
| Neurocrine
Biosciences, Inc., 2.25%, 5/15/24 |
71,000 |
|
98,786 |
|
| Sarepta
Therapeutics, Inc., 1.50%, 11/15/24 |
96,000 |
|
160,200 |
|
|
|
825,182 |
|
| Communications
Equipment — 2.1% |
|
|
| Lumentum
Holdings, Inc., 0.50%, 12/15/26 |
208,000 |
|
219,440 |
|
|
Lumentum
Holdings, Inc., 0.50%, 6/15/28(2) |
188,000 |
|
168,636 |
|
| Viavi
Solutions, Inc., 1.00%, 3/1/24 |
120,000 |
|
140,250 |
|
|
|
528,326 |
|
| Electrical
Equipment — 1.0% |
|
|
| Plug
Power, Inc., 3.75%, 6/1/25 |
20,000 |
|
111,950 |
|
| SunPower
Corp., 4.00%, 1/15/23 |
117,000 |
|
133,673 |
|
|
|
245,623 |
|
| Electronic
Equipment, Instruments and Components — 2.1% |
| Insight
Enterprises, Inc., 0.75%, 2/15/25 |
256,000 |
|
356,608 |
|
| Vishay
Intertechnology, Inc., 2.25%, 6/15/25 |
178,000 |
|
169,611 |
|
|
|
526,219 |
|
| Entertainment
— 3.0% |
|
|
| iQIYI,
Inc., 2.00%, 4/1/25 |
132,000 |
|
120,120 |
|
| Live
Nation Entertainment, Inc., 2.50%, 3/15/23 |
68,000 |
|
93,975 |
|
| Pandora
Media LLC, 1.75%, 12/1/23 |
65,000 |
|
70,980 |
|
| Sea
Ltd., 0.25%, 9/15/26 |
239,000 |
|
176,027 |
|
| World
Wrestling Entertainment, Inc., 3.375%, 12/15/23 |
35,000 |
|
96,740 |
|
| Zynga,
Inc., 0.25%, 6/1/24 |
157,000 |
|
176,668 |
|
|
|
734,510 |
|
| Equity
Real Estate Investment Trusts (REITs) — 0.4% |
|
|
|
IIP
Operating Partnership LP, 3.75%, 2/21/24(2) |
17,000 |
|
24,407 |
|
|
|
|
|
|
|
|
|
|
| Quality
Convertible Securities ETF |
|
|
|
Principal
Amount/Shares |
Value |
| Summit
Hotel Properties, Inc., 1.50%, 2/15/26 |
$ |
83,000 |
|
$ |
74,077 |
|
|
|
98,484 |
|
| Health
Care Equipment and Supplies — 4.5% |
|
|
| CONMED
Corp., 2.625%, 2/1/24 |
132,000 |
|
152,460 |
|
| Dexcom,
Inc., 0.25%, 11/15/25 |
243,000 |
|
233,128 |
|
| Envista
Holdings Corp., 2.375%, 6/1/25 |
78,000 |
|
143,949 |
|
|
Haemonetics
Corp., 0.00%, 3/1/26(1) |
119,000 |
|
99,777 |
|
| Insulet
Corp., 0.375%, 9/1/26 |
110,000 |
|
140,635 |
|
| Integra
LifeSciences Holdings Corp., 0.50%, 8/15/25 |
240,000 |
|
222,405 |
|
| Mesa
Laboratories, Inc., 1.375%, 8/15/25 |
63,000 |
|
55,861 |
|
| Omnicell,
Inc., 0.25%, 9/15/25 |
60,000 |
|
71,100 |
|
|
|
1,119,315 |
|
| Health
Care Providers and Services — 3.1% |
|
|
| Elevance
Health, Inc., 2.75%, 10/15/42 |
86,000 |
|
592,755 |
|
|
Guardant
Health, Inc., 0.00%, 11/15/27(1) |
215,000 |
|
160,262 |
|
|
|
753,017 |
|
| Hotels,
Restaurants and Leisure — 3.8% |
|
|
|
Airbnb,
Inc., 0.00%, 3/15/26(1) |
243,000 |
|
209,587 |
|
| Booking
Holdings, Inc., 0.75%, 5/1/25 |
352,000 |
|
458,267 |
|
|
Marriott
Vacations Worldwide Corp., 0.00%, 1/15/26(1) |
97,000 |
|
99,134 |
|
| Royal
Caribbean Cruises Ltd., 4.25%, 6/15/23 |
172,000 |
|
169,877 |
|
|
|
936,865 |
|
| Interactive
Media and Services — 1.9% |
|
|
| Snap,
Inc., 0.75%, 8/1/26 |
79,000 |
|
72,186 |
|
| Twitter,
Inc., 0.25%, 6/15/24 |
185,000 |
|
185,093 |
|
|
Ziff
Davis, Inc., 1.75%, 11/1/26(2) |
204,000 |
|
202,062 |
|
|
|
459,341 |
|
| Internet
and Direct Marketing Retail — 2.4% |
|
|
| Etsy,
Inc., 0.25%, 6/15/28 |
149,000 |
|
124,713 |
|
|
Match
Group Financeco 2, Inc., 0.875%, 6/15/26(2) |
150,000 |
|
145,875 |
|
|
Match
Group Financeco 3, Inc., 2.00%, 1/15/30(2) |
137,000 |
|
136,700 |
|
|
Pinduoduo,
Inc., 0.00%, 12/1/25(1) |
203,000 |
|
186,557 |
|
|
|
593,845 |
|
| IT
Services — 4.1% |
|
|
| Akamai
Technologies, Inc., 0.375%, 9/1/27 |
411,000 |
|
414,493 |
|
| Block,
Inc., 0.25%, 11/1/27 |
143,000 |
|
111,124 |
|
| Cloudflare,
Inc., 0.75%, 5/15/25 |
32,000 |
|
57,540 |
|
| MongoDB,
Inc., 0.25%, 1/15/26 |
53,000 |
|
87,357 |
|
| Okta,
Inc., 0.375%, 6/15/26 |
100,000 |
|
84,800 |
|
| Perficient,
Inc., 1.25%, 8/1/25 |
35,000 |
|
56,943 |
|
|
Perficient,
Inc., 0.125%, 11/15/26(2) |
113,000 |
|
90,909 |
|
| Shift4
Payments, Inc., 0.50%, 8/1/27 |
127,000 |
|
101,282 |
|
|
|
1,004,448 |
|
| Leisure
Products — 0.4% |
|
|
| Callaway
Golf Co., 2.75%, 5/1/26 |
62,000 |
|
89,319 |
|
| Machinery
— 2.0% |
|
|
|
Chart
Industries, Inc., 1.00%, 11/15/24(2) |
53,000 |
|
175,600 |
|
| John
Bean Technologies Corp., 0.25%, 5/15/26 |
136,000 |
|
123,420 |
|
| Middleby
Corp., 1.00%, 9/1/25 |
147,000 |
|
183,088 |
|
|
|
482,108 |
|
|
|
|
|
|
|
|
|
|
| Quality
Convertible Securities ETF |
|
|
|
Principal
Amount/Shares |
Value |
| Media
— 1.8% |
|
|
| Cable
One, Inc., 1.125%, 3/15/28 |
$ |
92,000 |
|
$ |
74,980 |
|
|
Liberty
Broadband Corp., 2.75%, 9/30/50(2) |
130,000 |
|
126,225 |
|
|
Liberty
Media Corp., 2.75%, 12/1/49(2) |
259,000 |
|
239,187 |
|
|
|
440,392 |
|
| Mortgage
Real Estate Investment Trusts (REITs) — 2.5% |
|
|
| Apollo
Commercial Real Estate Finance, Inc., 5.375%, 10/15/23 |
171,000 |
|
170,038 |
|
| Arbor
Realty Trust, Inc., 4.75%, 11/1/22 |
105,000 |
|
105,945 |
|
| Blackstone
Mortgage Trust, Inc., 5.50%, 3/15/27 |
184,000 |
|
170,430 |
|
| PennyMac
Corp., 5.50%, 3/15/26 |
195,000 |
|
174,623 |
|
|
|
621,036 |
|
| Oil,
Gas and Consumable Fuels — 2.9% |
|
|
| EQT
Corp., 1.75%, 5/1/26 |
51,000 |
|
165,138 |
|
| Green
Plains, Inc., 2.25%, 3/15/27 |
50,000 |
|
68,475 |
|
| Pioneer
Natural Resources Co., 0.25%, 5/15/25 |
197,000 |
|
484,324 |
|
|
|
717,937 |
|
| Personal
Products — 0.4% |
|
|
| Herbalife
Nutrition Ltd., 2.625%, 3/15/24 |
98,000 |
|
90,503 |
|
| Pharmaceuticals
— 2.2% |
|
|
| Jazz
Investments I Ltd., 2.00%, 6/15/26 |
339,000 |
|
402,139 |
|
| Pacira
BioSciences, Inc., 0.75%, 8/1/25 |
71,000 |
|
70,112 |
|
| Revance
Therapeutics, Inc., 1.75%, 2/15/27 |
91,000 |
|
82,526 |
|
|
|
554,777 |
|
| Professional
Services — 1.6% |
|
|
| FTI
Consulting, Inc., 2.00%, 8/15/23 |
99,000 |
|
158,984 |
|
| KBR,
Inc., 2.50%, 11/1/23 |
117,000 |
|
226,395 |
|
|
|
385,379 |
|
| Real
Estate Management and Development — 0.5% |
|
|
| Zillow
Group, Inc., 2.75%, 5/15/25 |
140,000 |
|
136,500 |
|
| Semiconductors
and Semiconductor Equipment — 3.8% |
|
|
|
Enphase
Energy, Inc., 0.00%, 3/1/26(1) |
303,000 |
|
358,752 |
|
| Microchip
Technology, Inc., 0.125%, 11/15/24 |
130,000 |
|
136,338 |
|
|
ON
Semiconductor Corp., 0.00%, 5/1/27(1) |
114,000 |
|
163,818 |
|
| Silicon
Laboratories, Inc., 0.625%, 6/15/25 |
63,000 |
|
75,739 |
|
| SMART
Global Holdings, Inc., 2.25%, 2/15/26 |
94,000 |
|
105,468 |
|
|
Wolfspeed,
Inc., 0.25%, 2/15/28(2) |
78,000 |
|
88,530 |
|
|
|
928,645 |
|
| Software
— 15.5% |
|
|
|
Alarm.com
Holdings, Inc., 0.00%, 1/15/26(1) |
131,000 |
|
110,106 |
|
| Bentley
Systems, Inc., 0.125%, 1/15/26 |
291,000 |
|
265,549 |
|
|
Bill.com
Holdings, Inc., 0.00%, 4/1/27(1)(2) |
150,000 |
|
128,344 |
|
|
CyberArk
Software Ltd., 0.00%, 11/15/24(1) |
138,000 |
|
155,626 |
|
| Datadog,
Inc., 0.125%, 6/15/25 |
88,000 |
|
118,089 |
|
|
Dropbox,
Inc., 0.00%, 3/1/28(1) |
156,000 |
|
138,645 |
|
| Envestnet,
Inc., 1.75%, 6/1/23 |
68,000 |
|
69,360 |
|
| Five9,
Inc., 0.50%, 6/1/25 |
90,000 |
|
91,395 |
|
| HubSpot,
Inc., 0.375%, 6/1/25 |
66,000 |
|
90,387 |
|
| InterDigital,
Inc., 2.00%, 6/1/24 |
84,000 |
|
80,535 |
|
| Mandiant,
Inc., 0.875%, 6/1/24 |
387,000 |
|
435,955 |
|
| Mitek
Systems, Inc., 0.75%, 2/1/26 |
260,000 |
|
220,534 |
|
|
|
|
|
|
|
|
|
|
| Quality
Convertible Securities ETF |
|
|
|
Principal
Amount/Shares |
Value |
| Palo
Alto Networks, Inc., 0.375%, 6/1/25 |
$ |
290,000 |
|
$ |
551,870 |
|
| Pegasystems,
Inc., 0.75%, 3/1/25 |
129,000 |
|
107,634 |
|
| Progress
Software Corp., 1.00%, 4/15/26 |
241,000 |
|
244,133 |
|
| Rapid7,
Inc., 0.25%, 3/15/27 |
173,000 |
|
149,645 |
|
| Splunk,
Inc., 1.125%, 9/15/25 |
169,000 |
|
161,142 |
|
| Tyler
Technologies, Inc., 0.25%, 3/15/26 |
159,000 |
|
159,159 |
|
| Varonis
Systems, Inc., 1.25%, 8/15/25 |
174,000 |
|
196,968 |
|
| Workday,
Inc., 0.25%, 10/1/22 |
86,000 |
|
96,234 |
|
| Workiva,
Inc., 1.125%, 8/15/26 |
149,000 |
|
164,049 |
|
| Zscaler,
Inc., 0.125%, 7/1/25 |
65,000 |
|
81,933 |
|
|
|
3,817,292 |
|
| Specialty
Retail — 0.6% |
|
|
| Burlington
Stores, Inc., 2.25%, 4/15/25 |
136,000 |
|
141,610 |
|
| Technology
Hardware, Storage and Peripherals — 1.3% |
|
|
| Pure
Storage, Inc., 0.125%, 4/15/23 |
268,000 |
|
318,920 |
|
|
TOTAL
CONVERTIBLE BONDS
(Cost
$18,996,007) |
|
17,820,472 |
|
|
CONVERTIBLE
PREFERRED STOCKS — 19.4% |
|
|
| Banks
— 2.4% |
|
|
| Bank
of America Corp., 7.25% |
237 |
|
291,294 |
|
| Wells
Fargo & Co., 7.50% |
233 |
|
290,668 |
|
|
|
581,962 |
|
| Capital
Markets — 1.8% |
|
|
| AMG
Capital Trust II, 5.15%, 10/15/37 |
2,974 |
|
149,057 |
|
| KKR
& Co. Inc., 6.00%, 9/15/23 |
4,568 |
|
286,265 |
|
|
|
435,322 |
|
| Electric
Utilities — 2.2% |
|
|
| American
Electric Power Co., Inc., 6.125%, 8/15/23 |
4,799 |
|
263,513 |
|
| NextEra
Energy, Inc., 6.22%, 9/1/23 |
5,125 |
|
268,678 |
|
|
|
532,191 |
|
| Electronic
Equipment, Instruments and Components — 0.5% |
| II-VI,
Inc., 6.00%, 7/1/23 |
580 |
|
118,094 |
|
| Equity
Real Estate Investment Trusts (REITs) — 0.6% |
|
|
| LXP
Industrial Trust, 6.50% |
2,949 |
|
152,700 |
|
| Gas
Utilities — 0.7% |
|
|
| Spire,
Inc., 7.50%, 3/1/24 |
3,300 |
|
165,396 |
|
| Health
Care Equipment and Supplies — 2.9% |
|
|
| Becton
Dickinson & Co., 6.00%, 6/1/23 |
6,960 |
|
351,480 |
|
| Boston
Scientific Corp., 5.50%, 6/1/23 |
3,436 |
|
363,278 |
|
|
|
714,758 |
|
| Life
Sciences Tools and Services — 1.8% |
|
|
| Danaher
Corp., 5.00%, 4/15/23 |
323 |
|
454,999 |
|
| Metals
and Mining — 0.4% |
|
|
| ArcelorMittal
SA, 5.50%, 5/18/23 |
1,687 |
|
95,585 |
|
| Multi-Utilities
— 1.7% |
|
|
| DTE
Energy Co., 6.25%, 11/1/22 |
4,839 |
|
248,386 |
|
| NiSource,
Inc., 7.75%, 3/1/24 |
1,578 |
|
178,140 |
|
|
|
426,526 |
|
|
|
|
|
|
|
|
|
|
| Quality
Convertible Securities ETF |
|
|
|
Principal
Amount/Shares |
Value |
| Semiconductors
and Semiconductor Equipment — 1.9% |
|
|
| Broadcom,
Inc., 8.00%, 9/30/22 |
294 |
|
$ |
459,872 |
|
| Wireless
Telecommunication Services — 2.5% |
|
|
|
2020
Cash Mandatory Exchangeable Trust, 5.25%, 6/1/23(2) |
528 |
|
630,474 |
|
|
TOTAL
CONVERTIBLE PREFERRED STOCKS
(Cost
$5,009,184) |
|
4,767,879 |
|
|
COMMON
STOCKS — 5.1% |
|
|
| Biotechnology
— 0.2% |
|
|
|
PTC
Therapeutics, Inc.(3)
|
975 |
|
48,691 |
|
| Communications
Equipment — 0.2% |
|
|
|
Viavi
Solutions, Inc.(3)
|
3,469 |
|
48,843 |
|
| Consumer
Finance — 1.0% |
|
|
|
Encore
Capital Group, Inc.(3)
|
4,270 |
|
233,484 |
|
| Electric
Utilities — 1.0% |
|
|
| Southern
Co. |
3,287 |
|
253,329 |
|
| Electrical
Equipment — 0.1% |
|
|
|
SunPower
Corp.(3)
|
1,041 |
|
24,984 |
|
| Equity
Real Estate Investment Trusts (REITs) — 0.4% |
|
|
| Invitation
Homes, Inc. |
2,603 |
|
94,437 |
|
| Food
Products — 1.0% |
|
|
| Bunge
Ltd. |
2,370 |
|
235,033 |
|
| Hotels,
Restaurants and Leisure — 0.9% |
|
|
| Bloomin'
Brands, Inc. |
11,335 |
|
229,194 |
|
| Software
— 0.3% |
|
|
|
Alteryx,
Inc., Class A(3)
|
927 |
|
57,771 |
|
|
Avalara,
Inc.(3)
|
256 |
|
23,447 |
|
|
|
81,218 |
|
|
TOTAL
COMMON STOCKS
(Cost
$1,252,395) |
|
1,249,213 |
|
|
SHORT-TERM
INVESTMENTS — 2.9% |
|
|
| Money
Market Funds — 2.9% |
|
|
|
State
Street Institutional U.S. Government Money Market Fund, Premier Class
(Cost
$723,066) |
723,066 |
|
723,066 |
|
|
TOTAL
INVESTMENT SECURITIES — 99.7%
(Cost
$25,980,652) |
|
24,560,630 |
|
|
OTHER
ASSETS AND LIABILITIES — 0.3% |
|
77,555 |
|
|
TOTAL
NET ASSETS — 100.0% |
|
$ |
24,638,185 |
|
|
|
|
|
|
|
|
|
|
| NOTES
TO SCHEDULE OF INVESTMENTS |
(1)Security
is a zero-coupon bond. Zero-coupon securities may be issued at a substantial
discount from their value at maturity.
(2)Security
was purchased pursuant to Rule 144A or Section 4(2) under the Securities Act of
1933 and may be sold in transactions exempt from registration, normally to
qualified institutional investors. The aggregate value of these securities at
the period end was $2,592,780, which represented 10.5% of total net
assets.
(3)Non-income
producing.
See
Notes to Financial Statements.
AUGUST 31,
2022
|
|
|
|
|
|
|
|
|
| Quality
Diversified International ETF |
|
|
|
Shares |
Value |
|
COMMON
STOCKS — 98.9% |
|
|
| Australia
— 5.6% |
|
|
| Aristocrat
Leisure Ltd. |
13,291 |
|
$ |
320,797 |
|
| ASX
Ltd. |
26,763 |
|
1,424,655 |
|
| Australia
& New Zealand Banking Group Ltd. |
15,377 |
|
237,706 |
|
| BlueScope
Steel Ltd. |
37,625 |
|
422,146 |
|
| Computershare
Ltd. |
16,624 |
|
277,250 |
|
| CSL
Ltd. |
1,098 |
|
219,619 |
|
| Fortescue
Metals Group Ltd. |
192,924 |
|
2,397,577 |
|
| Goodman
Group |
14,865 |
|
197,675 |
|
| IGO
Ltd. |
47,826 |
|
428,008 |
|
| Incitec
Pivot Ltd. |
132,955 |
|
351,354 |
|
| James
Hardie Industries PLC |
29,036 |
|
658,112 |
|
|
Lynas
Rare Earths Ltd.(1)
|
60,801 |
|
363,229 |
|
| Macquarie
Group Ltd. |
1,605 |
|
192,043 |
|
| Medibank
Pvt Ltd. |
106,736 |
|
268,865 |
|
| REA
Group Ltd. |
2,664 |
|
229,739 |
|
| Sonic
Healthcare Ltd. |
68,399 |
|
1,581,726 |
|
| South32
Ltd. |
145,511 |
|
400,695 |
|
| WiseTech
Global Ltd. |
9,113 |
|
359,959 |
|
| Woodside
Energy Group Ltd. |
12,924 |
|
300,205 |
|
|
|
10,631,360 |
|
| Austria
— 1.0% |
|
|
| ANDRITZ
AG |
5,990 |
|
275,877 |
|
| OMV
AG |
30,499 |
|
1,228,874 |
|
| Verbund
AG |
3,353 |
|
320,405 |
|
| voestalpine
AG |
9,471 |
|
190,580 |
|
|
|
2,015,736 |
|
| Belgium
— 0.6% |
|
|
| D'ieteren
Group |
1,435 |
|
216,328 |
|
| KBC
Group NV |
4,445 |
|
211,993 |
|
| Proximus
SADP |
16,072 |
|
204,581 |
|
| Solvay
SA |
2,835 |
|
228,859 |
|
| UCB
SA |
3,143 |
|
220,849 |
|
|
|
1,082,610 |
|
| Canada
— 8.7% |
|
|
| Alimentation
Couche-Tard, Inc. |
4,771 |
|
205,029 |
|
| ARC
Resources Ltd. |
18,975 |
|
261,938 |
|
| Canadian
Natural Resources Ltd. |
7,935 |
|
435,010 |
|
| Canadian
Tire Corp. Ltd., Class A |
13,059 |
|
1,535,938 |
|
|
CGI,
Inc.(1)
|
3,270 |
|
258,941 |
|
| Constellation
Software, Inc. |
1,514 |
|
2,279,064 |
|
| Dollarama,
Inc. |
6,805 |
|
414,409 |
|
| Empire
Co. Ltd., Class A |
10,059 |
|
286,525 |
|
| Fairfax
Financial Holdings Ltd. |
482 |
|
240,290 |
|
| George
Weston Ltd. |
5,054 |
|
577,803 |
|
|
Gildan
Activewear, Inc.(2)
|
7,221 |
|
213,548 |
|
|
Great-West
Lifeco, Inc.(2)
|
10,183 |
|
239,194 |
|
| Imperial
Oil Ltd. |
5,223 |
|
256,348 |
|
| Loblaw
Cos. Ltd. |
17,234 |
|
1,523,090 |
|
|
|
|
|
|
|
|
|
|
| Quality
Diversified International ETF |
|
|
|
Shares |
Value |
| Lundin
Mining Corp. |
31,370 |
|
$ |
163,138 |
|
| Manulife
Financial Corp. |
181,033 |
|
3,131,739 |
|
|
Metro,
Inc.(2)
|
5,523 |
|
290,500 |
|
| Nutrien
Ltd. |
2,724 |
|
250,072 |
|
|
Open
Text Corp.(2)
|
7,369 |
|
232,121 |
|
| Pembina
Pipeline Corp. |
5,377 |
|
189,885 |
|
|
Shaw
Communications, Inc., B Shares(2)
|
7,649 |
|
196,154 |
|
|
Suncor
Energy, Inc.(2)
|
14,610 |
|
472,668 |
|
| Teck
Resources Ltd., Class B |
6,738 |
|
228,200 |
|
| TFI
International, Inc. |
2,639 |
|
263,287 |
|
| Toromont
Industries Ltd. |
3,301 |
|
255,514 |
|
| Tourmaline
Oil Corp. |
17,213 |
|
1,017,695 |
|
| West
Fraser Timber Co. Ltd. |
10,077 |
|
901,548 |
|
|
Wheaton
Precious Metals Corp.(2)
|
5,936 |
|
181,196 |
|
|
|
16,500,844 |
|
| China
— 5.0% |
|
|
| ANTA
Sports Products Ltd. |
77,200 |
|
929,676 |
|
| BYD
Co. Ltd., H Shares |
30,500 |
|
939,867 |
|
| China
Coal Energy Co. Ltd., H Shares |
602,000 |
|
535,339 |
|
| China
Shenhua Energy Co. Ltd., H Shares |
495,500 |
|
1,554,022 |
|
| COSCO
SHIPPING Holdings Co. Ltd., Class H |
623,500 |
|
930,798 |
|
| CSPC
Pharmaceutical Group Ltd. |
884,000 |
|
896,751 |
|
| JD.com,
Inc., ADR |
820 |
|
52,062 |
|
| Li
Ning Co. Ltd. |
70,500 |
|
642,136 |
|
| NetEase,
Inc., ADR |
10,655 |
|
943,074 |
|
| Orient
Overseas International Ltd. |
18,000 |
|
501,749 |
|
| Want
Want China Holdings Ltd. |
1,095,000 |
|
771,341 |
|
|
Yankuang
Energy Group Co. Ltd., H Shares(2)
|
166,000 |
|
657,096 |
|
| Zhongsheng
Group Holdings Ltd. |
33,000 |
|
156,036 |
|
|
|
9,509,947 |
|
| Denmark
— 2.2% |
|
|
| AP
Moller - Maersk A/S, B Shares |
457 |
|
1,096,413 |
|
| Carlsberg
A/S, B Shares |
2,176 |
|
282,554 |
|
| Danske
Bank A/S |
17,344 |
|
231,593 |
|
| Novo
Nordisk A/S, B Shares |
19,424 |
|
2,076,693 |
|
| Novozymes
A/S, B Shares |
3,389 |
|
194,507 |
|
| Pandora
A/S |
6,096 |
|
366,227 |
|
|
|
4,247,987 |
|
| Finland
— 1.9% |
|
|
| Elisa
Oyj |
4,169 |
|
222,951 |
|
| Fortum
Oyj |
15,021 |
|
154,513 |
|
| Kesko
Oyj, B Shares |
8,626 |
|
181,471 |
|
| Nokia
Oyj |
188,044 |
|
947,622 |
|
| Orion
Oyj, Class B |
10,496 |
|
475,890 |
|
| Stora
Enso Oyj, R Shares |
26,200 |
|
390,012 |
|
| Valmet
Oyj |
24,965 |
|
632,797 |
|
| Wartsila
Oyj Abp |
65,527 |
|
540,286 |
|
|
|
3,545,542 |
|
| France
— 11.0% |
|
|
| ArcelorMittal
SA |
9,341 |
|
221,700 |
|
| AXA
SA |
10,990 |
|
258,832 |
|
|
|
|
|
|
|
|
|
|
| Quality
Diversified International ETF |
|
|
|
Shares |
Value |
| BNP
Paribas SA |
4,864 |
|
$ |
226,031 |
|
| Bouygues
SA |
43,512 |
|
1,278,164 |
|
| Bureau
Veritas SA |
7,460 |
|
185,157 |
|
| Capgemini
SE |
1,430 |
|
247,072 |
|
| Carrefour
SA |
86,756 |
|
1,448,000 |
|
| Cie
de Saint-Gobain |
33,797 |
|
1,361,267 |
|
| Cie
Generale des Etablissements Michelin SCA |
1,652 |
|
40,179 |
|
| Eiffage
SA |
5,332 |
|
468,976 |
|
|
Electricite
de France SA(2)
|
31,834 |
|
380,615 |
|
| Engie
SA |
21,503 |
|
255,393 |
|
| Eurofins
Scientific SE |
2,308 |
|
159,686 |
|
| Hermes
International |
1,624 |
|
2,079,963 |
|
| Ipsen
SA |
5,516 |
|
528,637 |
|
| Kering
SA |
1,936 |
|
971,393 |
|
|
Klepierre
SA(1)
|
12,174 |
|
249,716 |
|
| L'Oreal
SA |
6,711 |
|
2,304,854 |
|
| Legrand
SA |
2,488 |
|
180,018 |
|
| LVMH
Moet Hennessy Louis Vuitton SE |
1,399 |
|
902,728 |
|
| Orange
SA |
78,678 |
|
796,802 |
|
| Pernod
Ricard SA |
1,139 |
|
208,993 |
|
| Publicis
Groupe SA |
6,363 |
|
310,675 |
|
| Remy
Cointreau SA |
1,393 |
|
258,350 |
|
|
Rexel
SA(1)
|
27,395 |
|
444,948 |
|
| Sanofi |
33,418 |
|
2,731,915 |
|
| Sartorius
Stedim Biotech |
2,548 |
|
931,960 |
|
| Societe
Generale SA |
10,332 |
|
227,773 |
|
| STMicroelectronics
NV |
6,166 |
|
214,886 |
|
| Teleperformance |
828 |
|
235,820 |
|
| Thales
SA |
2,273 |
|
274,035 |
|
|
TotalEnergies
SE(2)
|
4,646 |
|
235,226 |
|
|
Unibail-Rodamco-Westfield(1)
|
3,944 |
|
202,759 |
|
| Vivendi
SE |
23,277 |
|
210,993 |
|
|
|
21,033,516 |
|
| Germany
— 5.1% |
|
|
| Bayerische
Motoren Werke AG |
13,312 |
|
980,810 |
|
| Brenntag
SE |
2,784 |
|
|
