TABLE OF CONTENTS
Performance Overview | 1 |
Disclosure of Fund Expenses | 3 |
Schedule of Investments | 4 |
Statement of Assets and Liabilities | 9 |
Statement of Operations | 10 |
Statements of Changes in Net Assets | 11 |
Financial Highlights | 12 |
Notes to Financial Statements | 13 |
Additional Information | 19 |
Liquidity Risk Management Program | 21 |
Barron’s 400SM ETF
Performance Overview | May 31, 2022 (Unaudited) |
Investment Objective
The Barron’s 400SM ETF (the “Fund” or “BFOR”) seeks investment results that correspond generally, before fees and expenses, to the performance of the Barron’s 400 IndexSM (the “Underlying Index”). The Underlying Index is a rules-based index intended to give investors a means of tracking the overall performance of high performing equity securities of U.S. companies. The Fund will invest at least 80% of its total assets in the equity securities which comprise the Underlying Index.
The Underlying Index generally consists of 400 stocks. The Underlying Index’s stocks are constituents of the MarketGrader U.S. Coverage Universe. In compiling the Underlying Index, MarketGrader Capital, LLC (the “Index Provider”) selects the 400 stocks from the MarketGrader U.S. Coverage Universe by using a methodology that selects components based on the strength of their fundamentals in growth, value, profitability and cash flow and then screens such potential Underlying Index components for certain criteria regarding concentration, market capitalization, and liquidity. The eligible stocks that are selected for inclusion in the Underlying Index’s portfolio are equally weighted. The Underlying Index is rebalanced by the Index Provider semiannually, on the third Friday of March and September each year.
Performance (as of May 31, 2022)
6 Months | 1 Year | 5 Year | Since Inception^ | |
Barron’s 400SM ETF – NAV | -8.41% | -3.43% | 9.71% | 10.33% |
Barron’s 400SM ETF – Market Price* | -8.44% | -3.47% | 9.70% | 10.33% |
Barron’s 400 IndexSM | -8.07% | -2.79% | 10.43% | 11.07% |
Total Expense Ratio (per the current prospectus) is 0.65%
Performance data quoted represents past performance. Past performance does not guarantee future results. Total return figures assume reinvestment of dividends and capital gains distributions, if any. The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance data may be higher or lower than actual data quoted. For the most current month-end performance data please visit www.alpsfunds.com or call 1.866.759.5679.
NAV is an exchange-traded fund’s per-share value. The per-share dollar amount of the Fund is derived by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of Fund shares outstanding. Market Price is the price at which a share can currently be traded in the market. Information detailing the number of days the Market Price of the Fund was greater than the Fund’s NAV and the number of days it was less than the Fund’s NAV can be obtained at www.alpsfunds.com.
^ | The Fund commenced Investment Operations on June 4, 2013. |
* | Market Price means the official closing price of a share or, if it more accurately reflects the market value of a share at the time as of which the Fund calculates current net asset value per share, the price that is the midpoint of the bid-ask spread as of that time. It does not represent the returns an investor would receive if shares were traded at other times. |
The Barron’s 400 IndexSM, calculated by NYSE Arca or its affiliates, measures the performance of a diversified group of U.S. companies selected in part based on fundamentals-related rules-based criteria. The index includes companies that have scored highest according to fundamentals-related rankings calculated by MarketGrader Capital, LLC. Additional rules-based screening provides for sector and market cap diversification. The Underlying Index has been licensed by MarketGrader for use with the Barron’s 400SM ETF.
The index is not actively managed and does not reflect any deductions for fees, expenses or taxes. One cannot invest directly in an index. Index performance does not reflect Fund performance.
Funds that emphasize investments in small/mid cap companies will generally experience greater price volatility.
Barron’s 400SM ETF shares are not individually redeemable. Investors buy and sell shares of the Barron’s 400SM ETF on a secondary market. Only market makers or “authorized participants” may trade directly with the Fund, typically in blocks of 25,000 shares.
The Barron’s 400SM ETF is not suitable for all investors. Investments in the Fund are subject to investment risks, including possible loss of the principal amount invested.
ALPS Portfolio Solutions Distributor, Inc., a FINRA member, is the distributor for the Fund.
1 | May 31, 2022
Barron’s 400SM ETF
Performance Overview | May 31, 2022 (Unaudited) |
Top 10 Holdings* (as of May 31, 2022)
San Juan Basin Royalty Trust | 0.52% |
SandRidge Energy, Inc. | 0.44% |
Citizens Financial Group, Inc. | 0.41% |
VAALCO Energy, Inc. | 0.38% |
Coterra Energy, Inc. | 0.37% |
Marathon Oil Corp. | 0.37% |
Devon Energy Corp. | 0.36% |
Civitas Resources, Inc. | 0.35% |
Golden Ocean Group, Ltd. | 0.34% |
Photronics, Inc. | 0.34% |
Total % of Top 10 Holdings | 3.88% |
* | % of Total Investments (excluding investments purchased with collateral from securities loaned). |
Future holdings are subject to change.
Sector Allocation* (as of May 31, 2022)
Growth of $10,000 (as of May 31, 2022)
Comparison of change in value of a $10,000 investment in the Fund and the Underlying Index
The chart above compares historical performance of a hypothetical investment of $10,000 in the Fund since inception with the performance of the Fund’s benchmark index. Results include the reinvestment of all dividends and capital gains distributions. Past performance does not guarantee future results. The chart does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
2 | May 31, 2022
Barron’s 400SM ETF
Disclosure of Fund Expenses | May 31, 2022 (Unaudited) |
Shareholder Expense Example: As a shareholder of the Fund, you incur certain ongoing costs, including management fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. It is based on an investment of $1,000 invested at the beginning of the six month period and held through May 31, 2022.
Actual Return: The first line of the table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you incurred over the period. 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 in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
Hypothetical 5% Return: The second line of the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. 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 ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
The expenses shown in the table are meant to highlight ongoing Fund costs only and do not reflect any transaction costs, such as brokerage commissions and other fees to financial intermediaries. Therefore, the second line 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 costs were included, your costs would have been higher.
Beginning Account Value 12/1/21 | Ending Account Value 5/31/22 | Expense Ratio(a) | Expenses Paid During Period 12/1/21 - 5/31/22(b) | |||||||||||||
Barron's 400 ETF | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 915.90 | 0.65 | % | $ | 3.10 | ||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.69 | 0.65 | % | $ | 3.28 |
(a) | Annualized, based on the Fund's most recent fiscal half year expenses. |
(b) | Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (182), divided by 365. |
3 | May 31, 2022
Barron’s 400SM ETF
Schedule of Investments | May 31, 2022 (Unaudited) |
Security Description | Shares | Value | ||||||
COMMON STOCKS (97.68%) | ||||||||
Communication Services (1.92%) | ||||||||
Activision Blizzard, Inc. | 4,390 | $ | 341,893 | |||||
Alphabet, Inc., Class A(a) | 137 | 311,708 | ||||||
Entravision Communications | ||||||||
Corp., Class A | 56,080 | 293,298 | ||||||
Fox Corp., Class A | 8,839 | 313,873 | ||||||
Interpublic Group of Cos., Inc. | 10,015 | 322,783 | ||||||
Omnicom Group, Inc. | 4,316 | 322,017 | ||||||
Paramount Global(b) | 10,020 | 343,987 | ||||||
World Wrestling Entertainment, Inc., Class A(b) |
6,280 | 419,316 | ||||||
Total Communication Services | 2,668,875 | |||||||
Consumer Discretionary (16.60%) | ||||||||
Academy Sports & Outdoors, Inc.(b) | 9,744 | 326,521 | ||||||
American Eagle Outfitters, Inc. | 19,310 | 233,844 | ||||||
Asbury Automotive Group, Inc.(a) | 1,899 | 344,004 | ||||||
AutoNation, Inc.(a) | 3,024 | 361,549 | ||||||
AutoZone, Inc.(a) | 185 | 381,035 | ||||||
Best Buy Co., Inc. | 3,521 | 288,933 | ||||||
Big 5 Sporting Goods Corp.(b) | 21,646 | 275,987 | ||||||
Boot Barn Holdings, Inc.(a) | 3,903 | 314,972 | ||||||
Boyd Gaming Corp. | 5,279 | 310,247 | ||||||
Brunswick Corp. | 3,966 | 298,362 | ||||||
Buckle, Inc. | 9,657 | 317,329 | ||||||
Build-A-Bear Workshop, Inc. | 20,710 | 422,277 | ||||||
Cavco Industries, Inc.(a) | 1,260 | 279,922 | ||||||
Children's Place, Inc.(a) | 6,720 | 319,066 | ||||||
Churchill Downs, Inc. | 1,600 | 323,888 | ||||||
Columbia Sportswear Co. | 3,939 | 306,375 | ||||||
Crocs, Inc.(a) | 4,823 | 268,930 | ||||||
Darden Restaurants, Inc. | 2,815 | 351,875 | ||||||
Dick's Sporting Goods, Inc.(b) | 3,134 | 254,575 | ||||||
Dillard's, Inc., Class A(b) | 1,308 | 394,336 | ||||||
Dollar General Corp. | 1,640 | 361,358 | ||||||
DR Horton, Inc. | 4,336 | 325,850 | ||||||
Ethan Allen Interiors, Inc. | 13,360 | 310,754 | ||||||
Etsy, Inc.(a) | 2,790 | 226,325 | ||||||
Five Below, Inc.(a) | 2,266 | 295,917 | ||||||
Harley-Davidson, Inc.(b) | 9,250 | 325,415 | ||||||
Home Depot, Inc. | 1,060 | 320,915 | ||||||
KB Home | 9,490 | 327,310 | ||||||
Lennar Corp., Class B | 4,876 | 327,521 | ||||||
Levi Strauss & Co. | 18,865 | 342,588 | ||||||
Lithia Motors, Inc., Class A | 1,078 | 328,219 | ||||||
LKQ Corp. | 7,723 | 396,885 | ||||||
Malibu Boats, Inc., Class A(a) | 5,862 | 343,513 | ||||||
MarineMax, Inc.(a) | 7,776 | 322,004 | ||||||
Marriott International, Inc., Class A | 2,100 | 360,318 | ||||||
MasterCraft Boat Holdings, Inc.(a)(b) | 13,289 | 310,963 | ||||||
Mattel, Inc.(a) | 15,400 | 386,848 |
Security Description | Shares | Value | ||||||
Consumer Discretionary (continued) | ||||||||
Monarch Casino & Resort, Inc.(a) | 4,112 | $ | 278,999 | |||||
Movado Group, Inc. | 10,327 | 350,395 | ||||||
Murphy USA, Inc. | 1,865 | 464,609 | ||||||
NVR, Inc.(a) | 73 | 324,895 | ||||||
OneWater Marine, Inc. | 8,680 | 296,856 | ||||||
O'Reilly Automotive, Inc.(a) | 505 | 321,771 | ||||||
Patrick Industries, Inc. | 5,294 | 318,222 | ||||||
Pool Corp. | 775 | 308,931 | ||||||
PulteGroup, Inc. | 7,546 | 341,532 | ||||||
Ralph Lauren Corp. | 3,230 | 326,521 | ||||||
Ruth's Hospitality Group, Inc. | 15,700 | 289,351 | ||||||
Shoe Carnival, Inc. | 11,180 | 304,767 | ||||||
Signet Jewelers, Ltd. | 4,804 | 286,318 | ||||||
Skechers U.S.A., Inc., Class A(a) | 9,392 | 370,045 | ||||||
Skyline Champion Corp.(a) | 5,296 | 281,376 | ||||||
Smith & Wesson Brands, Inc. | 22,352 | 346,009 | ||||||
Steven Madden, Ltd. | 9,065 | 337,037 | ||||||
Sturm Ruger & Co., Inc. | 4,998 | 339,314 | ||||||
Tapestry, Inc. | 10,035 | 346,208 | ||||||
Target Corp. | 1,620 | 262,246 | ||||||
Taylor Morrison Home Corp., Class A(a) | 11,460 | 331,996 | ||||||
Tempur Sealy International, Inc. | 11,078 | 292,127 | ||||||
Tesla, Inc.(a) | 430 | 326,052 | ||||||
Texas Roadhouse, Inc. | 4,475 | 348,916 | ||||||
Thor Industries, Inc.(b) | 4,160 | 316,035 | ||||||
Tilly's, Inc., Class A(b) | 36,000 | 298,080 | ||||||
TJX Cos., Inc. | 5,695 | 362,031 | ||||||
Tractor Supply Co. | 1,540 | 288,534 | ||||||
Ulta Beauty, Inc.(a) | 942 | 398,560 | ||||||
Vista Outdoor, Inc.(a) | 9,708 | 374,146 | ||||||
Whirlpool Corp. | 1,845 | 339,923 | ||||||
Williams-Sonoma, Inc.(b) | 2,347 | 300,228 | ||||||
Winnebago Industries, Inc.(b) | 5,906 | 292,052 | ||||||
Zumiez, Inc.(a) | 8,484 | 278,360 | ||||||
Total Consumer Discretionary | 23,029,172 | |||||||
Consumer Staples (4.22%) | ||||||||
Archer-Daniels-Midland Co. | 4,215 | 382,806 | ||||||
Bunge, Ltd. | 3,251 | 384,658 | ||||||
Church & Dwight Co., Inc. | 3,520 | 317,011 | ||||||
Coca-Cola Co. | 5,888 | 373,181 | ||||||
Costco Wholesale Corp. | 645 | 300,712 | ||||||
Darling Ingredients, Inc.(a) | 4,930 | 394,745 | ||||||
Estee Lauder Cos., Inc., Class A | 1,348 | 343,268 | ||||||
Hershey Co. | 1,677 | 355,038 | ||||||
Ingles Markets, Inc., Class A | 3,875 | 345,107 | ||||||
Inter Parfums, Inc. | 4,252 | 313,798 | ||||||
Kellogg Co. | 5,690 | 396,821 | ||||||
MGP Ingredients, Inc. | 4,397 | 425,893 | ||||||
Monster Beverage Corp.(a) | 4,647 | 414,141 | ||||||
Procter & Gamble Co. | 2,341 | 346,187 | ||||||
Sanderson Farms, Inc. | 1,953 | 389,624 | ||||||
Tyson Foods, Inc., Class A | 4,073 | 364,982 | ||||||
Total Consumer Staples | 5,847,972 |
4 | May 31, 2022
Barron’s 400SM ETF
Schedule of Investments | May 31, 2022 (Unaudited) |
Security Description | Shares | Value | ||||||
Energy (11.58%) | ||||||||
APA Corp. | 9,570 | $ | 449,886 | |||||
Brigham Minerals, Inc., Class A | 14,550 | 441,010 | ||||||
California Resources Corp. | 8,299 | 362,417 | ||||||
Callon Petroleum Co.(a) | 6,495 | 379,698 | ||||||
Chesapeake Energy Corp.(b) | 4,660 | 453,791 | ||||||
Chevron Corp. | 2,220 | 387,745 | ||||||
Civitas Resources, Inc. | 6,360 | 485,586 | ||||||
ConocoPhillips | 3,695 | 415,170 | ||||||
Continental Resources, Inc. | 6,180 | 420,673 | ||||||
Coterra Energy, Inc. | 14,970 | 513,920 | ||||||
Denbury, Inc.(a) | 5,090 | 372,283 | ||||||
Devon Energy Corp. | 6,635 | 496,961 | ||||||
Diamondback Energy, Inc. | 2,825 | 429,457 | ||||||
EOG Resources, Inc. | 3,066 | 419,919 | ||||||
Exxon Mobil Corp. | 4,560 | 437,760 | ||||||
FLEX LNG, Ltd.(b) | 16,865 | 452,319 | ||||||
Halliburton Co. | 10,115 | 409,658 | ||||||
Hess Corp. | 3,795 | 467,051 | ||||||
Kimbell Royalty Partners LP | 22,800 | 432,288 | ||||||
Laredo Petroleum, Inc.(a) | 5,165 | 434,738 | ||||||
Magnolia Oil & Gas Corp., Class A | 16,312 | 450,374 | ||||||
Marathon Oil Corp. | 16,235 | 510,266 | ||||||
Matador Resources Co. | 6,920 | 421,428 | ||||||
Oasis Petroleum, Inc. | 2,506 | 397,777 | ||||||
Occidental Petroleum Corp. | 6,450 | 447,050 | ||||||
ONEOK, Inc. | 5,473 | 360,397 | ||||||
Ovintiv, Inc. | 8,160 | 456,878 | ||||||
PDC Energy, Inc. | 5,400 | 427,356 | ||||||
Pioneer Natural Resources Co. | 1,540 | 428,028 | ||||||
San Juan Basin Royalty Trust | 56,370 | 726,609 | ||||||
SandRidge Energy, Inc.(a) | 26,070 | 614,470 | ||||||
Targa Resources Corp. | 5,410 | 389,628 | ||||||
Texas Pacific Land Corp. | 284 | 444,741 | ||||||
VAALCO Energy, Inc.(b) | 68,750 | 526,625 | ||||||
Whiting Petroleum Corp. | 4,434 | 392,232 | ||||||
Williams Cos., Inc. | 11,240 | 416,554 | ||||||
Total Energy | 16,072,743 | |||||||
Financials (17.27%) | ||||||||
Allegiance Bancshares, Inc. | 7,824 | 314,916 | ||||||
Ally Financial, Inc. | 8,475 | 373,239 | ||||||
A-Mark Precious Metals, Inc. | 5,105 | 388,133 | ||||||
American Express Co. | 1,995 | 336,796 | ||||||
American International Group, Inc. | 6,005 | 352,373 | ||||||
Ameriprise Financial, Inc. | 1,250 | 345,337 | ||||||
Ameris Bancorp | 7,466 | 340,375 | ||||||
Associated Banc-Corp | 15,180 | 314,226 | ||||||
Atlantic Union Bankshares Corp. | 8,925 | 314,695 | ||||||
Atlanticus Holdings Corp.(a) | 7,217 | 280,813 | ||||||
BancFirst Corp. | 4,345 | 394,222 | ||||||
Bank OZK | 8,009 | 332,133 | ||||||
Banner Corp. | 5,835 | 339,072 | ||||||
Blackstone, Inc. | 3,180 | 374,572 | ||||||
Byline Bancorp, Inc. | 13,174 | 329,087 | ||||||
Capital One Financial Corp. | 2,609 | 333,587 |
Security Description | Shares | Value | ||||||
Financials (continued) | ||||||||
Cathay General Bancorp | 7,779 | $ | 319,795 | |||||
Central Pacific Financial Corp. | 12,592 | 303,971 | ||||||
Cincinnati Financial Corp. | 2,685 | 343,304 | ||||||
Citizens Financial Group, Inc. | 13,844 | 572,850 | ||||||
Cohen & Steers, Inc. | 4,513 | 343,936 | ||||||
ConnectOne Bancorp, Inc. | 10,750 | 296,270 | ||||||
Credit Acceptance Corp.(a)(b) | 708 | 421,479 | ||||||
Customers Bancorp, Inc.(a) | 6,150 | 253,995 | ||||||
Dime Community Bancshares, Inc. | 10,370 | 326,033 | ||||||
Eagle Bancorp, Inc. | 5,985 | 296,617 | ||||||
East West Bancorp, Inc. | 4,600 | 338,284 | ||||||
Enova International, Inc.(a) | 9,940 | 313,905 | ||||||
Enterprise Financial Services Corp. | 7,110 | 329,264 | ||||||
Evercore, Inc., Class A | 3,106 | 354,705 | ||||||
FactSet Research Systems, Inc. | 842 | 321,459 | ||||||
FB Financial Corp. | 7,641 | 321,075 | ||||||
Fidelity National Financial, Inc., Class A | 7,260 | 307,098 | ||||||
Fifth Third Bancorp | 7,660 | 302,034 | ||||||
First BanCorp | 27,299 | 407,574 | ||||||
First Foundation, Inc. | 13,645 | 307,695 | ||||||
Flagstar Bancorp, Inc. | 8,001 | 308,279 | ||||||
Flushing Financial Corp. | 15,120 | 349,272 | ||||||
Franklin Resources, Inc. | 13,025 | 352,717 | ||||||
Hamilton Lane, Inc., Class A | 4,690 | 326,189 | ||||||
Hanmi Financial Corp. | 14,160 | 330,494 | ||||||
HomeStreet, Inc. | 6,860 | 276,527 | ||||||
Horizon Bancorp, Inc. | 17,545 | 315,284 | ||||||
Houlihan Lokey, Inc. | 3,571 | 306,892 | ||||||
Independent Bank Corp. | 14,958 | 296,318 | ||||||
International Bancshares Corp. | 8,235 | 345,294 | ||||||
KeyCorp | 14,712 | 293,652 | ||||||
Kinsale Capital Group, Inc. | 1,610 | 354,007 | ||||||
Lakeland Bancorp, Inc. | 19,950 | 309,624 | ||||||
Live Oak Bancshares, Inc. | 6,331 | 254,253 | ||||||
Merchants Bancorp | 12,507 | 318,803 | ||||||
Mr Cooper Group, Inc.(a) | 7,425 | 321,948 | ||||||
OFG Bancorp | 12,945 | 366,861 | ||||||
Old Republic International Corp. | 13,740 | 328,661 | ||||||
Origin Bancorp, Inc. | 7,965 | 311,272 | ||||||
Pacific Premier Bancorp, Inc. | 9,546 | 310,818 | ||||||
Piper Sandler Cos. | 2,810 | 370,330 | ||||||
Popular, Inc. | 4,345 | 355,030 | ||||||
Premier Financial Corp. | 10,950 | 297,511 | ||||||
Regional Management Corp. | 7,793 | 370,791 | ||||||
Regions Financial Corp. | 15,410 | 340,407 | ||||||
SEI Investments Co. | 6,070 | 354,670 | ||||||
ServisFirst Bancshares, Inc. | 3,879 | 323,353 | ||||||
Signature Bank/New York NY | 1,195 | 258,443 | ||||||
SLM Corp. | 20,015 | 392,094 | ||||||
Stifel Financial Corp. | 5,350 | 343,309 | ||||||
Synovus Financial Corp. | 7,282 | 310,577 | ||||||
Towne Bank | 11,325 | 333,861 | ||||||
US Bancorp | 6,465 | 343,098 | ||||||
Western Alliance Bancorp | 4,214 | 342,893 |
5 | May 31, 2022
Barron’s 400SM ETF
Schedule of Investments | May 31, 2022 (Unaudited) |
Security Description | Shares | Value | ||||||
Financials (continued) | ||||||||
WSFS Financial Corp. | 6,925 | $ | 296,251 | |||||
Zions Bancorp NA | 5,377 | 306,704 | ||||||
Total Financials | 23,961,406 | |||||||
Health Care (9.94%) | ||||||||
Abbott Laboratories | 2,990 | 351,205 | ||||||
AbbVie, Inc. | 2,253 | 332,025 | ||||||
Agilent Technologies, Inc. | 2,680 | 341,861 | ||||||
Amgen, Inc. | 1,510 | 387,677 | ||||||
AMN Healthcare Services, Inc.(a) | 3,440 | 333,336 | ||||||
Bio-Rad Laboratories, Inc., Class A(a) | 637 | 342,572 | ||||||
Bio-Techne Corp. | 860 | 317,968 | ||||||
Bristol-Myers Squibb Co. | 5,045 | 380,645 | ||||||
Catalent, Inc.(a) | 3,630 | 374,108 | ||||||
Catalyst Pharmaceuticals, Inc.(a) | 46,261 | 333,079 | ||||||
Cooper Cos, Inc. | 893 | 313,211 | ||||||
Corcept Therapeutics, Inc.(a) | 14,635 | 304,993 | ||||||
Cross Country Healthcare, Inc.(a) | 16,870 | 297,755 | ||||||
Danaher Corp. | 1,291 | 340,592 | ||||||
DaVita, Inc.(a) | 3,181 | 310,116 | ||||||
Doximity, Inc.(a)(b) | 8,070 | 282,369 | ||||||
Dynavax Technologies Corp.(a)(b) | 33,585 | 398,318 | ||||||
Edwards Lifesciences Corp.(a) | 3,282 | 330,990 | ||||||
HCA Healthcare, Inc. | 1,314 | 276,466 | ||||||
Henry Schein, Inc.(a) | 4,043 | 346,243 | ||||||
Hologic, Inc.(a) | 4,949 | 372,511 | ||||||
IDEXX Laboratories, Inc.(a) | 694 | 271,784 | ||||||
Innoviva, Inc.(a) | 18,932 | 287,198 | ||||||
Johnson & Johnson | 1,992 | 357,624 | ||||||
Laboratory Corp. of America Holdings | 1,291 | 318,516 | ||||||
Maravai LifeSciences Holdings, Inc., Class A(a) | 9,071 | 282,562 | ||||||
Merck & Co., Inc. | 4,480 | 412,294 | ||||||
Mettler-Toledo International, Inc.(a) | 263 | 338,250 | ||||||
Moderna, Inc.(a) | 2,359 | 342,833 | ||||||
PerkinElmer, Inc. | 2,067 | 309,368 | ||||||
Pfizer, Inc. | 6,731 | 357,012 | ||||||
Quest Diagnostics, Inc. | 2,467 | 347,896 | ||||||
QuidelOrtho Corp.(a) | 3,360 | 319,301 | ||||||
Regeneron Pharmaceuticals, Inc.(a) | 528 | 350,983 | ||||||
Thermo Fisher Scientific, Inc. | 636 | 360,975 | ||||||
Veeva Systems, Inc., Class A(a) | 2,005 | 341,371 | ||||||
Vertex Pharmaceuticals, Inc.(a) | 1,414 | 379,871 | ||||||
Vir Biotechnology, Inc.(a) | 15,170 | 391,538 | ||||||
Waters Corp.(a) | 1,097 | 359,761 | ||||||
West Pharmaceutical Services, Inc. | 904 | 280,584 | ||||||
Zoetis, Inc. | 1,850 | 316,220 | ||||||
Total Health Care | 13,793,981 |
Security Description | Shares | Value | ||||||
Industrials (15.30%) | ||||||||
AGCO Corp. | 2,763 | $ | 354,023 | |||||
Allison Transmission Holdings, Inc. | 9,120 | 364,891 | ||||||
AMETEK, Inc. | 2,700 | 327,969 | ||||||
AO Smith Corp. | 5,304 | 318,876 | ||||||
ArcBest Corp. | 4,150 | 313,865 | ||||||
Atkore, Inc.(a) | 3,454 | 376,210 | ||||||
Atlas Air Worldwide Holdings, Inc.(a) | 4,139 | 288,530 | ||||||
BlueLinx Holdings, Inc.(a) | 3,996 | 330,309 | ||||||
Boise Cascade Co. | 4,487 | 346,935 | ||||||
Builders FirstSource, Inc.(a) | 4,800 | 312,432 | ||||||
BWX Technologies, Inc. | 6,625 | 339,200 | ||||||
Carlisle Cos., Inc. | 1,470 | 374,012 | ||||||
CH Robinson Worldwide, Inc. | 3,540 | 384,125 | ||||||
Cintas Corp. | 915 | 364,472 | ||||||
Copart, Inc.(a) | 2,905 | 332,710 | ||||||
CSW Industrials, Inc. | 2,959 | 314,009 | ||||||
CSX Corp. | 10,244 | 325,657 | ||||||
Donaldson Co., Inc. | 6,780 | 354,458 | ||||||
Dover Corp. | 2,296 | 307,457 | ||||||
Eagle Bulk Shipping, Inc. | 6,335 | 464,102 | ||||||
Emerson Electric Co. | 3,797 | 336,642 | ||||||
Encore Wire Corp. | 2,861 | 357,682 | ||||||
Equifax, Inc. | 1,514 | 306,706 | ||||||
Expeditors International of Washington, Inc. | 3,508 | 381,811 | ||||||
Fastenal Co. | 6,295 | 337,160 | ||||||
Fortune Brands Home & Security, Inc. | 4,140 | 287,109 | ||||||
Franklin Electric Co., Inc. | 4,220 | 311,098 | ||||||
Genco Shipping & Trading, Ltd. | 18,470 | 466,368 | ||||||
Generac Holdings, Inc.(a) | 1,220 | 301,438 | ||||||
Golden Ocean Group, Ltd.(b) | 31,725 | 468,261 | ||||||
Graco, Inc. | 5,054 | 319,918 | ||||||
Heidrick & Struggles International, Inc. | 8,800 | 304,128 | ||||||
IDEX Corp. | 1,810 | 346,706 | ||||||
Insteel Industries, Inc. | 9,348 | 387,101 | ||||||
JB Hunt Transport Services, Inc. | 1,756 | 303,050 | ||||||
Knight-Swift Transportation Holdings, Inc. | 6,610 | 321,510 | ||||||
Korn Ferry | 5,380 | 330,655 | ||||||
Landstar System, Inc. | 2,280 | 345,260 | ||||||
Lockheed Martin Corp. | 780 | 343,286 | ||||||
Matson, Inc. | 3,074 | 276,291 | ||||||
Mueller Industries, Inc. | 6,160 | 331,716 | ||||||
Nordson Corp. | 1,590 | 346,429 | ||||||
Norfolk Southern Corp. | 1,304 | 312,517 | ||||||
Northrop Grumman Corp. | 780 | 365,017 | ||||||
Old Dominion Freight Line, Inc. | 1,134 | 292,844 | ||||||
Owens Corning | 3,762 | 359,572 | ||||||
PACCAR, Inc. | 4,010 | 348,228 | ||||||
Parker-Hannifin Corp. | 1,252 | 340,757 | ||||||
Republic Services, Inc. | 2,720 | 364,045 | ||||||
Robert Half International, Inc. | 3,085 | 278,113 | ||||||
Saia, Inc.(a) | 1,350 | 266,747 |
6 | May 31, 2022
Barron’s 400SM ETF
Schedule of Investments | May 31, 2022 (Unaudited) |
Security Description | Shares | Value | ||||||
Industrials (continued) | ||||||||
Schneider National, Inc., Class B | 13,600 | $ | 328,304 | |||||
Simpson Manufacturing Co., Inc. | 2,997 | 324,725 | ||||||
Snap-on, Inc. | 1,732 | 384,296 | ||||||
TriNet Group, Inc.(a) | 3,970 | 311,804 | ||||||
Triton International, Ltd. | 5,330 | 339,894 | ||||||
UFP Industries, Inc. | 4,071 | 314,281 | ||||||
Union Pacific Corp. | 1,342 | 294,945 | ||||||
United Parcel Service, Inc., Class B | 1,667 | 303,811 | ||||||
United Rentals, Inc.(a) | 1,070 | 319,053 | ||||||
Watsco, Inc. | 1,200 | 306,756 | ||||||
Werner Enterprises, Inc. | 8,190 | 332,268 | ||||||
WW Grainger, Inc. | 706 | 343,871 | ||||||
Total Industrials | 21,236,415 | |||||||
Information Technology (13.19%) | ||||||||
Adobe, Inc.(a) | 833 | 346,928 | ||||||
Advanced Micro Devices, Inc.(a) | 3,223 | 328,295 | ||||||
Akamai Technologies, Inc.(a) | 3,162 | 319,488 | ||||||
Alpha & Omega Semiconductor, Ltd.(a) | 7,170 | 314,978 | ||||||
Amkor Technology, Inc. | 16,353 | 334,255 | ||||||
Amphenol Corp., Class A | 4,754 | 336,868 | ||||||
Apple, Inc. | 2,268 | 337,569 | ||||||
Applied Materials, Inc. | 2,803 | 328,764 | ||||||
Arista Networks, Inc.(a) | 2,898 | 296,407 | ||||||
Automatic Data Processing, Inc. | 1,646 | 366,959 | ||||||
Axcelis Technologies, Inc.(a) | 5,410 | 335,744 | ||||||
Badger Meter, Inc. | 3,690 | 292,027 | ||||||
Broadcom, Inc. | 594 | 344,597 | ||||||
Cadence Design Systems, Inc.(a) | 2,468 | 379,406 | ||||||
Ciena Corp.(a) | 6,220 | 316,100 | ||||||
Cisco Systems, Inc. | 6,316 | 284,536 | ||||||
Clearfield, Inc.(a)(b) | 5,887 | 363,817 | ||||||
Cognex Corp. | 5,228 | 253,140 | ||||||
Cognizant Technology Solutions Corp., Class A | 3,957 | 295,588 | ||||||
Corning, Inc. | 9,612 | 344,302 | ||||||
Diodes, Inc.(a) | 4,143 | 319,052 | ||||||
Entegris, Inc. | 2,828 | 313,795 | ||||||
Fair Isaac Corp.(a) | 732 | 299,791 | ||||||
FleetCor Technologies, Inc.(a) | 1,523 | 378,938 | ||||||
Fortinet, Inc.(a) | 1,239 | 364,439 | ||||||
Gartner, Inc.(a) | 1,250 | 328,000 | ||||||
Global Payments, Inc. | 2,740 | 359,050 | ||||||
GoDaddy, Inc., Class A(a) | 4,585 | 344,104 | ||||||
Intel Corp. | 7,845 | 348,475 | ||||||
Intuit, Inc. | 796 | 329,910 | ||||||
Jack Henry & Associates, Inc. | 1,965 | 369,656 | ||||||
Keysight Technologies, Inc.(a) | 2,350 | 342,160 | ||||||
KLA Corp. | 1,049 | 382,728 | ||||||
Mastercard, Inc., Class A | 1,050 | 375,763 | ||||||
Microchip Technology, Inc. | 4,900 | 355,985 | ||||||
Micron Technology, Inc. | 4,815 | 355,540 | ||||||
Microsoft Corp. | 1,222 | 332,225 |
Security Description | Shares | Value | ||||||
Information Technology (continued) | ||||||||
MKS Instruments, Inc. | 2,440 | $ | 301,340 | |||||
Monolithic Power Systems, Inc. | 833 | 375,175 | ||||||
NetApp, Inc. | 4,282 | 308,090 | ||||||
NVIDIA Corp. | 1,559 | 291,096 | ||||||
ON Semiconductor Corp.(a) | 6,208 | 376,701 | ||||||
Onto Innovation, Inc.(a) | 4,476 | 359,781 | ||||||
Paychex, Inc. | 2,859 | 354,030 | ||||||
Photronics, Inc.(a) | 21,485 | 467,084 | ||||||
Power Integrations, Inc. | 3,999 | 337,436 | ||||||
Qorvo, Inc.(a) | 2,900 | 324,075 | ||||||
QUALCOMM, Inc. | 2,435 | 348,741 | ||||||
SS&C Technologies Holdings, Inc. | 4,590 | 293,714 | ||||||
Synopsys, Inc.(a) | 1,230 | 392,616 | ||||||
Teledyne Technologies, Inc.(a) | 820 | 332,223 | ||||||
Texas Instruments, Inc. | 2,037 | 360,060 | ||||||
Visa, Inc., Class A, Class A | 1,700 | 360,689 | ||||||
Zebra Technologies Corp., Class A(a) | 905 | 306,062 | ||||||
Total Information Technology | 18,308,292 | |||||||
Materials (6.74%) | ||||||||
Alcoa Corp. | 4,765 | 294,096 | ||||||
Ball Corp. | 3,843 | 272,430 | ||||||
Celanese Corp. | 2,537 | 397,091 | ||||||
CF Industries Holdings, Inc. | 3,705 | 365,943 | ||||||
Cliffs Natural Resources, Inc.(a) | 13,881 | 321,762 | ||||||
Commercial Metals Co. | 8,500 | 337,705 | ||||||
Dow Chemical Co. | 5,983 | 406,724 | ||||||
Eagle Materials, Inc. | 2,636 | 344,156 | ||||||
FMC Corp. | 2,755 | 337,708 | ||||||
Freeport-McMoRan, Inc. | 7,940 | 310,295 | ||||||
Greif, Inc., Class A | 5,870 | 349,089 | ||||||
Hawkins, Inc. | 7,690 | 278,070 | ||||||
Huntsman Corp. | 9,120 | 330,600 | ||||||
Louisiana-Pacific Corp. | 5,097 | 351,999 | ||||||
Mesabi Trust(b) | 13,620 | 370,873 | ||||||
Mosaic Co. | 5,971 | 374,083 | ||||||
Nucor Corp. | 2,577 | 341,350 | ||||||
Olin Corp. | 6,980 | 459,214 | ||||||
Packaging Corp. of America | 2,311 | 363,474 | ||||||
Reliance Steel & Aluminum Co. | 1,840 | 357,696 | ||||||
Royal Gold, Inc. | 2,566 | 290,163 | ||||||
Schnitzer Steel Industries, Inc., Class A | 7,330 | 297,745 | ||||||
Southern Copper Corp. | 5,141 | 317,611 | ||||||
Steel Dynamics, Inc. | 4,772 | 407,433 | ||||||
TimkenSteel Corp.(a) | 17,470 | 403,557 | ||||||
United States Steel Corp. | 10,880 | 272,762 | ||||||
Westlake Corp. | 3,030 | 400,293 | ||||||
Total Materials | 9,353,922 | |||||||
Real Estate (0.65%) | ||||||||
CBRE Group, Inc., Class A(a) | 3,980 | 329,703 | ||||||
Marcus & Millichap, Inc. | 7,590 | 317,869 |
7 | May 31, 2022
Barron’s 400SM ETF
Schedule of Investments | May 31, 2022 (Unaudited) |
Security Description | Shares | Value | ||||||
Real Estate (continued) | ||||||||
Newmark Group, Inc. | 22,680 | $ | 251,068 | |||||
Total Real Estate | 898,640 | |||||||
Utilities (0.27%) | ||||||||
CMS Energy Corp. | 5,190 | 368,698 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $126,162,372) | 135,540,116 |
Security Description | Shares | Value | ||||||
LIMITED PARTNERSHIPS (1.92%) | ||||||||
Energy (1.38%) | ||||||||
Cheniere Energy Partners LP | 7,350 | 395,209 | ||||||
Enterprise Products Partners LP | 14,560 | 399,235 | ||||||
KKR & Co., LP | 6,701 | 367,282 | ||||||
Magellan Midstream Partners LP | 7,470 | 386,199 | ||||||
MPLX LP | 11,190 | 368,711 | ||||||
Total Energy | 1,916,636 | |||||||
Financials (0.23%) | ||||||||
Carlyle Group, Inc. | 8,147 | 313,904 | ||||||
Materials (0.31%) | ||||||||
CVR Partners LP | 3,310 | 429,307 | ||||||
TOTAL LIMITED PARTNERSHIPS | ||||||||
(Cost $2,670,738) | 2,659,847 |
7 Day Yield | Shares | Value | ||||||||||
SHORT TERM INVESTMENTS (1.98%) | ||||||||||||
Money Market Fund (0.29%) | ||||||||||||
State Street Institutional | ||||||||||||
Treasury Plus | ||||||||||||
Money Market Fund | ||||||||||||
(Cost $399,804) | 0.75 | % | 399,804 | 399,804 | ||||||||
Investments Purchased with Collateral from Securities Loaned (1.69%) | ||||||||||||
State Street Navigator | ||||||||||||
Securities Lending | ||||||||||||
Government Money Market | ||||||||||||
Portfolio, 0.80% | ||||||||||||
(Cost $2,349,632) | 2,349,632 | 2,349,632 | ||||||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $2,749,436) | 2,749,436 | |||||||||||
TOTAL INVESTMENTS (101.58%) | ||||||||||||
(Cost $131,582,546) | $ | 140,949,399 | ||||||||||
LIABILITIES IN EXCESS OF OTHER ASSETS (-1.58%) | (2,188,046 | ) | ||||||||||
NET ASSETS - 100.00% | $ | 138,761,353 |
(a) | Non-income producing security. |
(b) | Security, or a portion of the security position is currently on loan. The total market value of securities on loan is $5,186,628. |
See Notes to Financial Statements.
8 | May 31, 2022
Barron’s 400SM ETF
Statement of Assets and Liabilities | May 31, 2022 (Unaudited) |
ASSETS: | ||||
Investments, at value | $ | 140,949,399 | ||
Dividends receivable | 235,621 | |||
Total Assets | 141,185,020 | |||
LIABILITIES: | ||||
Payable to adviser | 74,035 | |||
Payable for collateral upon return of securities loaned | 2,349,632 | |||
Total Liabilities | 2,423,667 | |||
NET ASSETS | $ | 138,761,353 | ||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 176,748,941 | ||
Total distributable earnings | (37,987,588 | ) | ||
NET ASSETS | $ | 138,761,353 | ||
INVESTMENTS, AT COST | $ | 131,582,546 | ||
PRICING OF SHARES | ||||
Net Assets | $ | 138,761,353 | ||
Shares of beneficial interest outstanding (Unlimited number of shares authorized, par value $0.01 per share) | 2,450,000 | |||
Net Asset Value, offering and redemption price per share | $ | 56.64 |
See Notes to Financial Statements.
9 | May 31, 2022
Barron’s 400SM ETF
Statement of Operations | For the Six Months Ended May 31, 2022 (Unaudited) |
INVESTMENT INCOME: | ||||
Dividends(a) | $ | 1,309,801 | ||
Securities Lending Income | 4,462 | |||
Total Investment Income | 1,314,263 | |||
EXPENSES: | ||||
Investment adviser fees | 472,369 | |||
Net Expenses | 472,369 | |||
NET INVESTMENT INCOME | 841,894 | |||
REALIZED AND UNREALIZED GAIN: | ||||
Net realized gain on investments(b) | 7,670,296 | |||
Net change in unrealized appreciation/(depreciation) on investments | (21,126,236 | ) | ||
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS | (13,455,940 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | (12,614,046 | ) |
(a) | Net of foreign tax withholding of $1,520. |
(b) | Includes realized gain or loss as a result of in-kind transactions (See Note 4 in Notes to Financial Statements). |
See Notes to Financial Statements.
10 | May 31, 2022
Barron’s 400SM ETF
Statements of Changes in Net Assets
For the Six Months Ended May 31, 2022 (Unaudited) | For the Year Ended November 30, 2021 | |||||||
OPERATIONS: | ||||||||
Net investment income | $ | 841,894 | $ | 1,264,631 | ||||
Net realized gain | 7,670,296 | 35,081,287 | ||||||
Net change in unrealized appreciation/depreciation | (21,126,236 | ) | 2,133,972 | |||||
Net increase/(decrease) in net assets resulting from operations | (12,614,046 | ) | 38,479,890 | |||||
DISTRIBUTIONS TO SHAREHOLDERS: | ||||||||
From distributable earnings | (1,433,725 | ) | (1,258,708 | ) | ||||
Total distributions | (1,433,725 | ) | (1,258,708 | ) | ||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Proceeds from sale of shares | – | 94,843,165 | ||||||
Cost of shares redeemed | (3,159,145 | ) | (94,389,197 | ) | ||||
Net increase/(decrease) from capital share transactions | (3,159,145 | ) | 453,968 | |||||
Net increase/(decrease) in net assets | (17,206,916 | ) | 37,675,150 | |||||
NET ASSETS: | ||||||||
Beginning of period | 155,968,269 | 118,293,119 | ||||||
End of period | $ | 138,761,353 | $ | 155,968,269 | ||||
OTHER INFORMATION: | ||||||||
CAPITAL SHARE TRANSACTIONS: | ||||||||
Beginning shares | 2,500,000 | 2,500,000 | ||||||
Shares sold | – | 1,650,000 | ||||||
Shares redeemed | (50,000 | ) | (1,650,000 | ) | ||||
Shares outstanding, end of period | 2,450,000 | 2,500,000 |
See Notes to Financial Statements.
11 | May 31, 2022
Barron’s 400SM ETF
Financial Highlights | For a Share Outstanding Throughout the Periods Presented |
For the Six Months Ended May 31, 2022 (Unaudited) | For the Year Ended November 30, 2021 | For the Year Ended November 30, 2020 | For the Year Ended November 30, 2019 | For the Year Ended November 30, 2018 | For the Year Ended November 30, 2017 | |||||||||||||||||||
NET ASSET VALUE, BEGINNING OF PERIOD | $ | 62.39 | $ | 47.32 | $ | 42.04 | $ | 40.42 | $ | 41.54 | $ | 34.35 | ||||||||||||
INCOME FROM OPERATIONS: | ||||||||||||||||||||||||
Net investment income(a) | 0.34 | 0.52 | 0.43 | 0.44 | 0.40 | 0.29 | ||||||||||||||||||
Net realized and unrealized gain/(loss) | (5.52 | ) | 15.05 | 5.14 | 1.51 | (1.27 | ) | 7.17 | ||||||||||||||||
Total from investment operations | (5.18 | ) | 15.57 | 5.57 | 1.95 | (0.87 | ) | 7.46 | ||||||||||||||||
DISTRIBUTIONS: | ||||||||||||||||||||||||
From net investment income | (0.57 | ) | (0.50 | ) | (0.29 | ) | (0.33 | ) | (0.25 | ) | (0.27 | ) | ||||||||||||
Total distributions | (0.57 | ) | (0.50 | ) | (0.29 | ) | (0.33 | ) | (0.25 | ) | (0.27 | ) | ||||||||||||
NET INCREASE/(DECREASE) IN NET ASSET VALUE | (5.75 | ) | 15.07 | 5.28 | 1.62 | (1.12 | ) | 7.19 | ||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $ | 56.64 | $ | 62.39 | $ | 47.32 | $ | 42.04 | $ | 40.42 | $ | 41.54 | ||||||||||||
TOTAL RETURN(b) | (8.41 | )% | 33.18 | % | 13.33 | % | 5.00 | % | (2.12 | )% | 21.87 | % | ||||||||||||
RATIOS/SUPPLEMENTAL DATA: | ||||||||||||||||||||||||
Net assets, end of period (in 000s) | $ | 138,761 | $ | 155,968 | $ | 118,293 | $ | 147,150 | $ | 163,708 | $ | 205,601 | ||||||||||||
RATIOS TO AVERAGE NET ASSETS | ||||||||||||||||||||||||
Ratio of expenses to average net assets | 0.65 | %(c) | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | ||||||||||||
Ratio of net investment income to average net assets | 1.16 | %(c) | 0.90 | % | 1.08 | % | 1.10 | % | 0.93 | % | 0.78 | % | ||||||||||||
Portfolio turnover rate(d) | 49 | % | 91 | % | 83 | % | 109 | % | 88 | % | 84 | % |
(a) | Based on average shares outstanding during the period. |
(b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period and redemption at the net asset value on the last day of the period and assuming all distributions are reinvested at the reinvestment prices. Total return calculated for a period of less than one year is not annualized. |
(c) | Annualized. |
(d) | Portfolio turnover for periods less than one year are not annualized and does not include securities received or delivered from processing creations or redemptions in-kind. |
See Notes to Financial Statements.
12 | May 31, 2022
Barron’s 400SM ETF
Notes to Financial Statements | May 31, 2022 (Unaudited) |
1. ORGANIZATION
ALPS ETF Trust (the “Trust”), a Delaware statutory trust, is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). As of May 31, 2022, the Trust consisted of nineteen separate portfolios. Each portfolio represents a separate series of the Trust. This report pertains solely to the Barron’s 400SM ETF (the “Fund”). The investment objective of the Fund is to seek investment results that correspond generally, before fees and expenses, to the performance of the Barron’s 400 IndexSM (the “Underlying Index”). The Fund has elected to qualify as a diversified series of the Trust under the 1940 Act.
The Fund’s Shares (“Shares”) are listed on the NYSE Arca, Inc. (the “NYSE Arca”). The Fund issues and redeems Shares at net asset value (“NAV”) in blocks of 25,000 Shares, each of which is called a “Creation Unit”. Creation Units are issued and redeemed principally in-kind for securities included in the Underlying Index. Except when aggregated in Creation Units, Shares are not redeemable securities of the Fund. On October 1, 2021, the Fund reduced its Creation Unit size from 50,000 to 25,000 shares.
Pursuant to the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liability arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements. The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946.
A. Portfolio Valuation
The Fund’s NAV is determined daily, as of the close of regular trading on the New York Stock Exchange (the “NYSE”), normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. The NAV is computed by dividing the value of all assets of the Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.
Portfolio securities listed on any exchange other than the NASDAQ Stock Market LLC (“NASDAQ”) are valued at the last sale price on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the most recent bid and ask prices on such day. Securities traded on the NASDAQ are valued at the NASDAQ Official Closing Price as determined by NASDAQ. Portfolio securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined at the close of the exchange representing the principal market for such securities. Portfolio securities traded in the over-the-counter market, but excluding securities traded on the NASDAQ, are valued at the latest quoted sale price in such market.
The Fund’s investments are valued at market value or, in the absence of market value with respect to any portfolio securities, at fair value according to procedures adopted by the Trust’s Board of Trustees (the “Board”). When market quotations are not readily available or when events occur that make established valuation methods unreliable, securities of the Fund may be valued in good faith by or under the direction of the Board. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market price is not available from a pre-established primary pricing source or the pricing source is not willing to provide a price; a security with respect to which an event has occurred that is most likely to materially affect the value of the security after the market has closed but before the calculation of the Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; or a security whose price, as provided by the pricing service, does not reflect the security’s “fair value” due to the security being de-listed from a national exchange or the security’s primary trading market is temporarily closed at a time when, under normal conditions, it would be open. As a general principle, the current “fair value” of a security would be the amount which the owner might reasonably expect to receive from the sale on the applicable exchange or principal market. A variety of factors may be considered in determining the fair value of such securities.
13 | May 31, 2022
Barron’s 400SM ETF
Notes to Financial Statements | May 31, 2022 (Unaudited) |
B. Fair Value Measurements
The Fund discloses the classification of its fair value measurements following a three-tier hierarchy based on the inputs used to measure fair value. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability; including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities and Limited Partnerships, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the mean of the most recent quoted bid and ask prices on such day and are generally categorized as Level 2 in the hierarchy. Investments in open-end mutual funds are valued at their closing NAV each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Various inputs are used in determining the value of the Fund’s investments as of the end of the reporting period. When inputs used fall into different levels of the fair value hierarchy, the level in the hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments.
These inputs are categorized in the following hierarchy under applicable financial accounting standards:
Level 1 | – | Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date; |
Level 2 | – | Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and |
Level 3 | – |
Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.
|
The following is a summary of the inputs used to value the Fund’s investments as of May 31, 2022:
Barron's 400 ETF
Investments in Securities at Value | Level 1 - Quoted and Unadjusted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Total | ||||||||||||
Common Stocks* | $ | 135,540,116 | $ | – | $ | – | $ | 135,540,116 | ||||||||
Limited Partnerships* | 2,659,847 | – | – | 2,659,847 | ||||||||||||
Short Term Investments | 2,749,436 | – | – | 2,749,436 | ||||||||||||
Total | $ | 140,949,399 | $ | – | $ | – | $ | 140,949,399 |
* | For a detailed sector breakdown, see the accompanying Schedule of Investments. |
The Fund did not have any securities that used significant unobservable inputs (Level 3) in determining fair value and there were no transfers into or out of Level 3 during the six months ended May 31, 2022.
C. Securities Transactions and Investment Income
Securities transactions are recorded as of the trade date. Realized gains and losses from securities transactions are recorded on the specific identification in accordance with GAAP. Dividend income and capital gains distributions, if any, are recorded on the ex-dividend date. Interest income, if any, is recorded on the accrual basis.
14 | May 31, 2022
Barron’s 400SM ETF
Notes to Financial Statements | May 31, 2022 (Unaudited) |
D. Dividends and Distributions to Shareholders
Dividends from net investment income of the Fund, if any, are declared and paid annually or as the Board may determine from time to time. Distributions of net realized capital gains earned by the Fund, if any, are distributed at least annually.
E. Federal Tax and Tax Basis Information
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. GAAP. Reclassifications are made to the Fund’s capital accounts for permanent tax differences to reflect income and gains available for distribution (or available capital loss carryforwards) under income tax regulations. The amounts and characteristics of tax basis distributions and composition of distributable earnings/(accumulated losses) are finalized at fiscal year-end; accordingly, tax basis balances have not been determined as of May 31, 2022.
The tax character of the distributions paid during the fiscal year ended November 30, 2021 was as follows:
Ordinary Income | Long-Term Capital Gain | Return of Capital | ||||||||||
November 30, 2021 | ||||||||||||
Barron’s 400SM ETF | $ | 1,258,708 | $ | – | $ | – |
The character of distributions made during the year may differ from its ultimate characterization for federal income tax purposes.
Under current law, capital losses maintain their character as short-term or long-term and are carried forward to the next tax year without expiration. As of November 30, 2021, the following amounts are available as carry forwards to the next tax year:
Fund | Short-Term | Long-Term | ||||||
Barron’s 400SM ETF | $ | 37,589,993 | $ | 17,906,661 |
The Barron’s 400SM ETF used capital loss carryovers during the year ended November 30, 2021 in the amount of $538,562.
As of May 31, 2022, the cost of investments for federal income tax purposes and accumulated net unrealized appreciation/(depreciation) on investments were as follows:
Barron’s 400SM ETF | ||||
Gross appreciation (excess of value over tax cost) | $ | 19,012,257 | ||
Gross depreciation (excess of tax cost over value) | (9,626,275 | ) | ||
Net unrealized appreciation (depreciation) | $ | 9,385,982 | ||
Cost of investments for income tax purposes | $ | 131,563,417 |
The differences between book-basis and tax-basis are primarily due to the deferral of losses from wash sales and investments in partnerships. In addition, certain tax cost basis adjustments are finalized at fiscal year-end and therefore have not been determined as of May 31, 2022.
F. Income Taxes
No provision for income taxes is included in the accompanying financial statements, as the Fund intends to distribute to shareholders all taxable investment income and realized gains and otherwise comply with Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies. The Fund evaluates tax positions taken (or expected to be taken) in the course of preparing the Fund’s tax returns to determine whether these positions meet a “more-likely-than-not” standard that, based on the technical merits, have a more than fifty percent likelihood of being sustained by a taxing authority upon examination. A tax position that meets the “more-likely-than-not” recognition threshold is measured to determine the amount of benefit to recognize in the financial statements.
As of and during the six months ended May 31, 2022, the Fund did not have a liability for any unrecognized tax benefits. The Fund files U.S. federal, state, and local tax returns as required. The Fund’s tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax return, but may extend to four years in certain jurisdictions. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.
15 | May 31, 2022
Barron’s 400SM ETF
Notes to Financial Statements | May 31, 2022 (Unaudited) |
G. Lending of Portfolio Securities
The Fund has entered into a securities lending agreement with State Street Bank & Trust Co. (“SSB”), the Fund’s lending agent. The Fund may lend its portfolio securities only to borrowers that are approved by SSB. The Fund will limit such lending to not more than 33 1/3% of the value of its total assets. The Fund’s securities held at SSB as custodian shall be available to be lent except those securities the Fund or ALPS Advisors, Inc. specifically identifies in writing as not being available for lending. The borrower pledges and maintains with the Fund collateral consisting of cash (U.S. Dollars only), securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, and cash equivalents (including irrevocable bank letters of credit) issued by a person other than the borrower or an affiliate of the borrower. The initial collateral received by the Fund is required to have a value of no less than 102% of the market value of the loaned securities for U.S equity securities and a value of no less than 105% of the market value for non-U.S. equity securities. The collateral is maintained thereafter, at a market value equal to not less than 102% of the current value of the U.S. equity securities on loan and not less than 105% of the current value of the non-U.S. equity securities on loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to the Fund on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the customary time period for settlement of securities transactions.
Any cash collateral received is reinvested in a money market fund managed by SSB as disclosed in the Fund’s Schedule of Investments and is reflected in the Statements of Assets and Liabilities as a payable for collateral upon return of securities loaned. Non-cash collateral, in the form of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, is not disclosed in the Fund’s Statements of Assets and Liabilities as it is held by the lending agent on behalf of the Fund, and the Fund does not have the ability to re-hypothecate these securities. Income earned by the Fund from securities lending activity is disclosed in the Statement of Operations.
The following is a summary of the Fund's securities lending agreement and related cash and non-cash collateral received as of May 31, 2022:
Market Value of Securities on Loan | Cash Collateral Received | Non-Cash Collateral Received | Total Collateral Received | |||||||||||||
Barron's 400 ETF | $ | 5,186,628 | $ | 2,349,632 | $ | 3,066,995 | $ | 5,416,627 |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by SSB. SSB’s indemnity allows for full replacement of securities lent wherein SSB will purchase the unreturned loaned securities on the open market by applying the proceeds of the collateral, or to the extent such proceeds are insufficient or the collateral is unavailable, SSB will purchase the unreturned loan securities at SSB’s expense. However, the Fund could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged or securities loaned, and the remaining contractual maturity of those transactions as of May 31, 2022:
Barron's 400 ETF | Remaining contractual maturity of the agreements |
Securities Lending Transactions | Overnight & Continuous | Up to 30 days | 30-90 days | Greater than 90 days | Total | |||||||||||||||
Common Stocks | $ | 2,349,632 | $ | – | $ | – | $ | – | $ | 2,349,632 | ||||||||||
Total Borrowings | 2,349,632 | |||||||||||||||||||
Gross amount of recognized liabilities for securities lending (collateral received) | $ | 2,349,632 |
3. INVESTMENT ADVISORY FEE AND OTHER AFFILIATED TRANSACTIONS
ALPS Advisors, Inc. (the “Adviser”) serves as the Fund’s investment adviser pursuant to an Investment Advisory Agreement with the Trust on behalf of the Fund (the “Advisory Agreement”). Pursuant to the Advisory Agreement, the Fund pays the Adviser an annual management fee for the services and facilities it provides, payable on a monthly basis at the annual rate of 0.65% of the Fund’s average daily net assets. From time to time, the Adviser may waive all or a portion of its fee.
Out of the unitary management fees, the Adviser pays substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit, trustees and other services, except for interest expenses, distribution fees or expenses, brokerage expenses, taxes and extraordinary expenses not incurred in the ordinary course of the Fund's business. The Adviser’s unitary management fee is designed to pay substantially all of the Fund’s expenses and to compensate the Adviser for providing services to the Fund.
16 | May 31, 2022
Barron’s 400SM ETF
Notes to Financial Statements | May 31, 2022 (Unaudited) |
ALPS Fund Services, Inc., an affiliate of the Adviser, is the administrator of the Fund.
Prior to February 16, 2022, each Trustee received (1) a quarterly retainer of $10,000, (2) a per meeting fee of $5,000, (3) $1,500 for any special meeting held outside of a regularly scheduled board meeting, and (4) reimbursement for all reasonable out-of-pocket expenses relating to attendance at meetings. In addition, the Chairman of the Board and Chairman of the Audit Committee each received a quarterly retainer of $2,000, in connection with their respective roles. Effective February 16, 2022, each Trustee receives (1) a quarterly retainer of $20,000, (2) a per meeting fee of $10,000, (3) $2,500 for any special meeting held outside of a regularly scheduled board meeting, and (4) reimbursement for all reasonable out-of-pocket expenses relating to attendance at meetings. In addition, the Chairman of the Board receives a quarterly retainer of $5,000, the Chairman of the Audit Committee receives a quarterly retainer of $3,000, and the Chairman of the Nominating & Governance Committee receives a quarterly retainer of $2,000, each in connection with their respective roles.
4. PURCHASES AND SALES OF SECURITIES
For the six months ended May 31, 2022 the cost of purchases and proceeds from sales of investment securities, excluding in-kind transactions and short-term investments, were as follows:
Fund | Purchases | Sales | ||||||
Barron's 400 ETF | $ | 71,896,343 | $ | 72,597,451 |
For the six months ended May 31, 2022, the cost of in-kind purchases and proceeds from in-kind sales were as follows:
Fund | Purchases | Sales | ||||||
Barron's 400 ETF | $ | – | $ | 3,156,132 |
For the six months ended May 31, 2022 the Barron's 400 ETF had in-kind net realized gains of $801,304.
Gains on in-kind transactions are not considered taxable for federal income tax purposes and losses on in-kind transactions are also not deductible for tax purposes.
5. CAPITAL SHARE TRANSACTIONS
Shares are created and redeemed by the Fund only in Creation Unit size aggregations of 25,000 Shares. Only broker-dealers or large institutional investors with creation and redemption agreements called Authorized Participants (“AP”) are permitted to purchase or redeem Creation Units from the Fund. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per unit of the Fund on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the AP or as a result of other market circumstances.
6. RELATED PARTY TRANSACTIONS
The Fund engaged in cross trades between other funds in the Trust during the six months ended May 31, 2022 pursuant to Rule 17a-7 under the 1940 Act. Cross trading is the buying or selling of portfolio securities between funds to which the Adviser serves as the investment adviser. The Board previously adopted procedures that apply to transactions between the Funds of the Trust pursuant to Rule 17a-7. These transactions related to cross trades during the period complied with the requirements set forth by Rule 17a-7 and the Trust’s procedures.
Transactions related to cross trades during the six months ended May 31, 2022, were as follows:
Fund | Purchase cost paid | Sale proceeds received | Realized gain/(loss) on sales | |||||||||
Barron's 400 ETF | $ | 2,128,652 | $ | 304,289 | $ | (62,415 | ) |
7. MARKET RISK
The Fund is subject to investment and operational risks associated with financial, economic and other global market developments and disruptions, including the recent spread of an infectious respiratory illness caused by a novel strain of coronavirus (known as COVID-19), which can negatively impact the securities markets and cause the Fund to lose value. Securities in the Fund’s portfolio may underperform in comparison to securities in general financial markets, a particular financial market or other asset classes due to a number of factors, including inflation (or expectations for inflation), deflation (or expectations for deflation), interest rates, global demand for particular products or resources, market instability, debt crises and downgrades, embargoes, tariffs, sanctions and other trade barriers, regulatory events, other governmental trade or market control programs and related geopolitical events. In addition, the value of the Fund’s investments may be negatively affected by the occurrence of global events such as war, terrorism, environmental disasters, natural disasters or events, country instability, and infectious disease epidemics or pandemics.
17 | May 31, 2022
Barron’s 400SM ETF
Notes to Financial Statements | May 31, 2022 (Unaudited) |
The spread of COVID-19 has caused volatility, severe market dislocations and liquidity constraints in many markets, including markets for the securities the Fund holds, and may adversely affect the Fund’s investments and operations. The transmission of COVID-19 and efforts to contain its spread have resulted in travel restrictions and disruptions, closed international borders, enhanced health screenings at ports of entry and elsewhere, disruption of and delays in healthcare service preparation and delivery, quarantines, event and service cancellations or interruptions, disruptions to business operations and supply chains, and a reduction in consumer and business spending, as well as general concern and uncertainty that has negatively affected the economy. These disruptions have led to instability in the market place and the jobs market. The impact of COVID-19 could adversely affect the economies of many nations or the entire global economy, the financial well-being and performance of individual issuers, borrowers and sectors and the health of the markets generally in potentially significant and unforeseen ways.
The foregoing could lead to a significant economic downturn or recession, increased market volatility, a greater number of market closures, higher default rates and adverse effects on the values and liquidity of the Fund’s securities or other assets. Such impacts may adversely affect the performance of the Fund.
8. SUBSEQUENT EVENTS
Effective as of the close of business on March 31, 2022, Deloitte & Touche LLP (“Deloitte”) resigned as the independent registered public accounting firm for the Fund. The report of Deloitte on the Fund’s financial statements as of and for the fiscal years or periods ended November 30, 2021 and November 30, 2020 did not contain an adverse opinion or a disclaimer of opinion, and was not qualified or modified as to uncertainties, audit scope or accounting principles. During the Fund’s fiscal year or period ended November 30, 2021 and November 30, 2020, and through March 31, 2022, there were no disagreements between the Fund and Deloitte on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Deloitte, would have caused it to make reference to the subject matter of the disagreements in its report on the financial statements of the Fund for such year or period. During the Fund’s fiscal years or periods ended November 30, 2021 and November 30, 2020, there were no “reportable events” (as defined in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).
During the Fund’s fiscal year or period ended November 30, 2021 and November 30, 2020, and during the subsequent interim period through March 31, 2022, neither the Fund, nor anyone on their behalf, consulted with Deloitte, on behalf of the Fund, regarding any matter that was either the subject of a “disagreement,” as defined in Item 304(a)(1)(iv) of Regulation S-K under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the instructions thereto, or a “reportable event,” as defined in Item 304(a)(1)(v) of Regulation S-K under the Exchange Act.
On June 21, 2022, upon the recommendation of the Fund’s Audit Committee, the Board of Trustees of the Fund approved the engagement of BBD, LLP (“BBD”) as the independent registered public accounting firm for the Fund for the fiscal year ending November 30, 2022. The Board and its Audit Committee considered the engagement of BBD in connection with the resignation of the Fund’s former independent registered accounting firm on March 31, 2022.
18 | May 31, 2022
Barron’s 400SM ETF
Additional Information | May 31, 2022 (Unaudited) |
PROXY VOTING RECORDS, POLICIES AND PROCEDURES
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 and a description of the Fund’s proxy voting policies and procedures used in determining how to vote for proxies are available without charge on the SEC’s website at www.sec.gov and upon request, by calling (toll-free) 1-866-759-5679.
PORTFOLIO HOLDINGS
The Fund files a complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-PORT within 60 days after the end of the period. Copies of the Fund’s Form N-PORT are available without a charge, upon request, by contacting the Fund at 1-866-759-5679 and on the SEC’s website at https://www.sec.gov.
TAX INFORMATION
The Barron’s 400 ETF designates the following as a percentage of taxable ordinary income distributions, or up to the maximum amount allowable, for the calendar year ended December 31, 2021:
Qualified Dividend Income | Dividend Received Deduction | |
Barron's 400 ETF | 100.00% | 100.00% |
In early 2022, if applicable, shareholders of record received this information for the distributions paid to them by the Fund during the calendar year 2021 via Form 1099. The Fund will notify shareholders in early 2023 of amounts paid to them by the Fund, if any, during the calendar year 2022.
LICENSING AGREEMENT
MarketGrader Capital, LLC (the “Index Provider”) has entered into a license agreement with Dow Jones & Company to use the “Barron’s” name and certain related intellectual property in connection with the Underlying Index. The Index Provider also has entered into a license and services agreement with its parent company, MarketGrader.com, to use the methodology for constructing the Underlying Index. The Index Provider in turn has entered into the Sublicense Agreement with ALPS Advisers, Inc. to use the Underlying Index. The following disclosure relates to such licensing agreements:
The Barron’s 400 ETF (the “Fund”) is not sponsored, managed or advised by the Index Provider. The Index Provider makes no representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Underlying Index to track the performance of a market or sector. The Index Provider’s only relationship to ALPS Advisors, Inc. (the “Adviser”) or the Fund is the licensing of certain service marks and trade names of the Index Provider and of the Underlying Index that is determined, composed and calculated by the Index Provider without regard to the Adviser or the Fund. The Index Provider has no obligation to take the needs of the Adviser or the Fund or the owners of the Fund into consideration in determining, composing or calculating the Underlying Index.
THE INDEX PROVIDER DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN AND THE INDEX PROVIDER SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. THE INDEX PROVIDER MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE ADVISER, THE FUND, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN. THE INDEX PROVIDER MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE UNDERLYING INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL THE INDEX PROVIDER HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.
“The Barron’s 400 IndexSM” is calculated and published by MarketGrader Capital, LLC (“MarketGrader”). “Barron’s,” “Barron’s 400” and “Barron’s 400 Index” are trademarks or service marks of DJC & Company, Inc. or its affiliates and have been licensed to MarketGrader and sublicensed for certain purposes by Barron’s 400 Exchange Traded Fund, a sub-fund of that certain ALPS ETF Trust, a Delaware Statutory Trust (the “Sub-Licensee”). The Barron’s 400SM ETF (the “Product”) is not sponsored or advised by DJC or its affiliates. DJC and its affiliates make no representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of trading in the Fund particularly. DJC and its affiliates’ only relationship to the Licensee is the licensing of certain trademarks and trade names of DJC. The Barron's 400 IndexSM is determined, composed and calculated by MarketGrader without regard to DJC. DJC has no obligation to take the needs of the Licensee or the owners of the Fund into consideration in connection with its licensing of the Barron’s 400 Index to MarketGrader or the sublicense to Licensee. DJC and its affiliates are not responsible for and have not participated in the calculation of the Barron's 400 IndexSM or in the determination of the timing of, prices at, or quantities of the Fund to be sold or in the determination or calculation of the equation by which the Product are to be converted into cash. DJC and its affiliates have no obligation or liability in connection with the administration, marketing or trading of the Barron’s 400 Index or the Product.
19 | May 31, 2022
Barron’s 400SM ETF
Additional Information | May 31, 2022 (Unaudited) |
DOW JONES DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE BARRON’S 400 INDEX OR ANY DATA INCLUDED THEREIN AND DOW JONES AND ITS AFFILIATES SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. DOW JONESAND ITS AFFILIATES MAKE NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY THE LICENSEE, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE BARRON’S 400 INDEX OR ANY DATA INCLUDED THEREIN. DOW JONES AND ITS AFFILIATES MAKE NO EXPRESS OR IMPLIED WARRANTIES. AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE BARRON’S 400 INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL DOW JONES AND ITS AFFILIATES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN DJC AND THE LICENSEE, OTHER THAN THE LICENSORS OF MARKETGRADER.
The Adviser does not guarantee the accuracy and/or the completeness of the Underlying Index or any data included therein, and the Adviser shall have no liability for any errors, omissions or interruptions therein. The Adviser makes no warranty, express or implied, as to results to be obtained by the Fund, owners of the Shares of the Fund or any other person or entity from the use of the Underlying Index or any data included therein. The Adviser makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Underlying Index or any data included therein. Without limiting any of the foregoing, in no event shall the Adviser have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) arising out of matters relating to the use of the Underlying Index, even if notified of the possibility of such damages.
20 | May 31, 2022
Barron’s 400SM ETF
Liquidity Risk Management Program | May 31, 2022 (Unaudited) |
In compliance with the Securities and Exchange Commission’s liquidity risk management rule (the “Liquidity Rule”), the ALPS ETF Trust (the “Trust”) has established a liquidity risk management program (the “Program”) to govern the Trust’s approach to managing liquidity risk for each series of the Trust (each a “Fund”). The Program is overseen by the Liquidity Committee (the “Committee”), a committee comprised of representatives of the Trust’s investment adviser, ALPS Advisors, Inc. The Trust’s Board of Trustees (the “Board”) has approved the designation of the Committee to oversee the Program.
The Program’s principal objectives include supporting each Fund’s compliance with limits on investments in illiquid assets and assessing and managing the risk that a Fund will be unable to meet its redemption obligations without significant dilution of remaining investors’ interests in the Fund. The Program includes a number of elements that support the management and assessment of liquidity risk, including an annual assessment of factors that influence a Fund’s liquidity and, for Funds that are not “In-Kind ETFs,” the periodic classification and re-classification of such Fund’s investments into groupings that reflect the Committee’s assessment of their liquidity under current market conditions.
At a meeting of the Board held on March 7, 2022, the Trustees received a report from the Committee regarding the design and operational effectiveness of the Program for the period January 1, 2021 through December 31, 2021 (the “Period”). The Committee determined, and reported to the Board, that the Program has been operating effectively to assess and manage each Fund’s liquidity risk and has been and continues to be adequately and effectively implemented to monitor and (as applicable) respond to the Funds’ liquidity developments.
The Committee reported that during the period covered by the report, there were no liquidity events that impacted the Funds or their ability to timely meet redemptions without dilution to existing shareholders. The report also discussed notable events affecting liquidity over the Period, including extended market holidays and closures in certain countries. Among other things, the Committee’s report noted that no Fund is required to have a highly liquid investment minimum based either on its status as an In-Kind ETF or on its ability to rely on another exemption under the Liquidity Rule. The Committee’s report further noted that no material changes have been made to the Program since its implementation.
21 | May 31, 2022
Must be accompanied or preceded by a prospectus.
ALPS Portfolio Solutions Distributor, Inc., a FINRA member, is the Distributor for the Barron’s 400SM ETF.