CUSIP |
TICKER SYMBOL | |
19762B202 | XCEM |
CUSIP |
TICKER SYMBOL | |
19762B509 | ECON |
CUSIP |
TICKER SYMBOL | |
19762B707 | INCO |
|
3 |
|
12 |
|
21 |
|
30 |
|
39 |
|
47 |
|
55 |
|
55 |
|
56 |
|
59 |
|
61 |
|
62 |
|
63 |
|
63 |
|
64 |
|
65 |
|
65 |
|
66 |
|
67 |
|
67 |
|
67 |
|
69 |
|
69 |
|
70 |
|
72 |
|
72 |
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74 |
|
75 |
|
76 |
|
77 |
|
A-1 |
| |
Management
fees
(a) |
|
Distribution and/or service (12b-1) fees | |
Other expenses | |
Total annual Fund
operating expenses |
(a) | Pursuant to the Investment Management Services Agreement with Columbia ETF Trust II on behalf of the Fund, Columbia Management Investment Advisers, LLC pays the operating costs and expenses of the Fund, but not taxes, interest, brokerage expenses, portfolio transaction expenses, and infrequent and/or unusual expenses. |
■ | you invest $10,000 in the Fund for the periods indicated, |
■ | your investment has a 5% return each year, and |
■ | the
Fund’s total annual operating expenses remain the same as shown in the
Annual Fund Operating
Expenses |
1 year |
3 years |
5 years |
10 years | |
$ |
$ |
$ |
$ |
Prospectus 2021 | 3 |
4 | Prospectus 2021 |
Prospectus 2021 | 5 |
■ |
Asia Pacific Region.
Many
of the countries in the Asia Pacific region are considered underdeveloped
or developing, including from a political, economic and/or social
perspective, and may have relatively unstable governments and economies
based on limited business, industries and/or natural resources or
commodities. Events in any one country within the region may impact other
countries in the region or the region as a whole. As a result, events in
the region will generally have a greater effect on the Fund than if the
Fund were more geographically diversified. This could result in increased
volatility in the value of the Fund’s investments and losses for the Fund.
Also, securities of some companies in the region can be less liquid than
U.S. or other foreign securities, potentially making it difficult for the
Fund to sell such securities at a desirable time and
price. |
■ |
Small- and Mid-Cap Stock
Risk.
Investments
in small- and mid-capitalization companies (small- and mid-cap companies)
often involve greater risks than investments in larger, more established
companies (larger companies) because small- and mid-cap companies tend to
have less predictable earnings and may lack the management experience,
financial resources, product diversification and competitive strengths of
larger companies. Securities of small- and mid-cap companies may be less
liquid and more volatile than the securities of larger
companies. |
■ |
Large-Cap Stock Risk.
Investments
in larger companies may involve certain risks associated with their larger
size. For instance, larger companies may be less able to respond quickly
to new competitive challenges, such
as |
6 | Prospectus 2021 |
changes in consumer tastes or innovation from smaller competitors. Also, larger companies are sometimes less able to achieve as high growth rates as successful smaller companies, especially during extended periods of economic expansion. |
Prospectus 2021 | 7 |
8 | Prospectus 2021 |
■ |
Financial Services
Sector.
The
Fund is more susceptible to the particular risks that may affect companies
in the financial services sector than if it were invested in a wider
variety of companies in unrelated sectors. Companies in the financial
services sector are subject to certain risks, including the risk of
regulatory change, decreased liquidity in credit markets and unstable
interest rates. Such companies may have concentrated portfolios, such as a
high level of loans to one or more industries or sectors, which makes them
vulnerable to economic conditions that affect such industries or sectors.
Performance of such companies may be affected by competitive pressures and
exposure to investments, agreements and counterparties, including credit
products that, under certain circumstances, may lead to losses (e.g.,
subprime loans). Companies in the financial services sector are subject to
extensive governmental regulation that may limit the amount and types of
loans and other financial commitments they can make, and the interest
rates and fees they may charge. In addition, profitability of such
companies is largely dependent upon the availability and the cost of
capital. |
■ |
Information Technology
Sector.
The
Fund is more susceptible to the particular risks that may affect companies
in the information technology sector than if it were invested in a wider
variety of companies in unrelated sectors. Companies in the information
technology sector are subject to certain risks, including the risk that
new services, equipment or technologies will not be accepted by consumers
and businesses or will become rapidly obsolete. Performance of such
companies may be affected by factors including obtaining and protecting
patents (or the failure to do so) and significant competitive pressures,
including aggressive pricing of their products or services, new market
entrants, competition for market share and short product cycles due to an
accelerated rate of technological developments. Such competitive pressures
may lead to limited earnings and/or falling profit margins. As a result,
the value of their securities may fall or fail to rise. In addition, many
information technology sector companies have limited operating histories
and prices of these companies’ securities historically have been more
volatile than other securities, especially over the short term. Some
companies in the information technology sector are facing increased
government and regulatory scrutiny and may be subject to adverse
government or regulatory action, which could negatively impact the value
of their
securities. |
Prospectus 2021 | 9 |
as of December 31 Each Year |
| ||
|
Best |
|
|
Worst
|
|
- |
* |
Inception Date |
1 Year |
5 Years |
Life of Fund | |
At NAV |
|
|||
returns before taxes | ||||
returns after taxes on distributions | ||||
returns after taxes on distributions and sale of Fund shares | ||||
Beta Thematic Emerging
Markets ex-China Index
(reflects
no deductions for fees, expenses or taxes)
|
||||
MSCI Emerging Markets
Index (Net)
(reflects
reinvested dividends net of withholding taxes but reflects no deductions
for fees, expenses or other taxes)
|
Portfolio Manager
|
Title |
Role with Fund |
Managed Fund Since
| |||
Christopher Lo, CFA | Senior Portfolio Manager | Portfolio Manager | 2016 |
10 | Prospectus 2021 |
Prospectus 2021 | 11 |
| |
Management
fees
(a)
(b) |
|
Distribution and/or service (12b-1) fees | |
Other expenses | |
Total annual Fund
operating expenses |
(a) | Pursuant to the Investment Management Services Agreement with Columbia ETF Trust II on behalf of the Fund, Columbia Management Investment Advisers, LLC pays the operating costs and expenses of the Fund, but not taxes, interest, brokerage expenses, portfolio transaction expenses, and infrequent and/or unusual expenses. |
(b) |
■ | you invest $10,000 in the Fund for the periods indicated, |
■ | your investment has a 5% return each year, and |
■ | the
Fund’s total annual operating expenses remain the same as shown in the
Annual Fund Operating
Expenses |
1 year |
3 years |
5 years |
10 years | |
$ |
$ |
$ |
$ |
12 | Prospectus 2021 |
Prospectus 2021 | 13 |
14 | Prospectus 2021 |
■ |
Greater China.
The
Greater China region consists of Hong Kong, The People's Republic of China
and Taiwan, among other countries, and the Fund's investments in the
region are particularly susceptible to risks in that region. The Hong
Kong, Taiwanese, and Chinese economies are dependent on the economies of
other countries and can be significantly affected by currency fluctuations
and increasing competition from other emerging economies in Asia with
lower costs. Adverse events in any one country within the region may
impact the other countries in the region or Asia as a whole. As a result,
adverse events in the region will generally have a greater effect on the
Fund than if the Fund were more geographically diversified, which could
result in greater volatility in the Fund’s NAV and losses. Markets in the
Greater China region can experience significant volatility due to social,
economic, regulatory and political uncertainties. Changes in Chinese
government policy and economic growth rates could significantly affect
local markets and the entire Greater China region. China has yet to
develop comprehensive securities, corporate, or commercial laws, its
market is relatively new and less developed, and its economy is
experiencing a relative slowdown. Export growth continues to be a major
driver of China’s economic growth. As a result, a reduction in spending on
Chinese products and services, the institution of additional tariffs or
other trade barriers, including as a result of heightened trade tensions
between China and the United States, or a downturn in any of the economies
of China’s key trading partners may have an adverse impact on the Chinese
economy. |
Prospectus 2021 | 15 |
■ |
Mid-Cap Stock Risk.
Investments
in mid-capitalization companies (mid-cap companies) often involve greater
risks than investments in larger, more established companies (larger
companies) because mid-cap companies tend to have less predictable
earnings and may lack the management experience, financial resources,
product diversification and competitive strengths of larger companies, and
may be less liquid than the securities of larger
companies. |
■ |
Large-Cap Stock Risk.
Investments
in larger companies may involve certain risks associated with their larger
size. For instance, larger companies may be less able to respond quickly
to new competitive challenges, such as changes in consumer tastes or
innovation from smaller competitors. Also, larger companies are sometimes
less able to achieve as high growth rates as successful smaller companies,
especially during extended periods of economic
expansion. |
16 | Prospectus 2021 |
Prospectus 2021 | 17 |
■ |
Communication Services
Sector.
The
Fund is more susceptible to the particular risks that may affect companies
in the communication services sector than if it were invested in a wider
variety of companies in unrelated sectors. Companies in the communication
services sector are subject to certain risks, including the risk that new
services, equipment or technologies will not be accepted by consumers and
businesses or will become rapidly obsolete. Performance of such companies
may be affected by factors including obtaining and protecting patents (or
the failure to do so) and significant competitive pressures, including
aggressive pricing of their products or services, new market entrants,
competition for market share and short product cycles due to an
accelerated rate of technological developments. Such competitive pressures
may lead to limited earnings and/or falling profit margins. As a result,
the value of their securities may fall or fail to rise. In addition, many
communication services sector companies have limited operating histories
and prices of these companies’ securities historically have been more
volatile than other securities, especially over the short
term. |
■ |
Consumer
Discretionary/Staples Sectors.
The
Fund is more susceptible to the particular risks that may affect companies
in the consumer discretionary/staples sectors than if it were invested in
a wider variety of companies in unrelated sectors. Companies in the
consumer discretionary/staples sectors are subject to certain risks,
including fluctuations in the performance of the overall domestic and
international economy, interest rate changes, currency exchange rates,
increased competition and consumer confidence. Performance of such
companies may be affected by factors including reduced disposable
household income, reduced consumer spending, and changing demographics and
consumer
tastes. |
18 | Prospectus 2021 |
as of December 31 Each Year |
| ||
|
Best |
|
|
Worst
|
|
- |
* |
Inception Date |
1 Year |
5 Years |
10 Years | |
At NAV | ||||
returns before taxes | ||||
returns after taxes on distributions | ||||
returns after taxes on distributions and sale of Fund shares | ||||
Dow Jones Emerging Markets
Consumer Titans
TM Index
(reflects
no deductions for fees, expenses or taxes)
|
||||
MSCI Emerging Markets
Index (Net)
(reflects
reinvested dividends net of withholding taxes but reflects no deductions
for fees, expenses or other taxes)
|
Portfolio Manager
|
Title |
Role with Fund |
Managed Fund Since
| |||
Christopher Lo, CFA | Senior Portfolio Manager | Portfolio Manager | 2016 |
Prospectus 2021 | 19 |
20 | Prospectus 2021 |
| |
Management
fees
(a) |
|
Distribution and/or service (12b-1) fees | |
Other expenses | |
Total annual Fund
operating expenses |
|
Less:
Fee waivers and/or expense reimbursements
(b) |
( |
Total annual Fund
operating expenses after fee waivers and/or expense reimbursements
|
(a) | Pursuant to the Investment Management Services Agreement with Columbia ETF Trust II on behalf of the Fund, Columbia Management Investment Advisers, LLC pays the operating costs and expenses of the Fund, but not taxes, interest, brokerage expenses, portfolio transaction expenses, and infrequent and/or unusual expenses. |
(b) | Columbia
Management Investment Advisers, LLC and certain of its affiliates have
contractually agreed to waive fees and/or to reimburse expenses (excluding
interest (but not Fund overdraft charges), brokerage commissions, acquired
fund fees and expenses, and infrequent and/or unusual expenses) through
|
■ | you invest $10,000 in the Fund for the periods indicated, |
■ | your investment has a 5% return each year, and |
■ | the
Fund’s total annual operating expenses remain the same as shown in the
Annual Fund Operating
Expenses |
1 year |
3 years |
5 years |
10 years | |
$ |
$ |
$ |
$ |
Prospectus 2021 | 21 |
22 | Prospectus 2021 |
Prospectus 2021 | 23 |
■ |
India.
The
Fund is particularly susceptible to economic, political, regulatory or
other events or conditions affecting issuers in India. Because the Fund
invests predominantly in Indian securities, its NAV will be much more
sensitive to changes in economic, political and other factors within India
than would a fund that invested in a variety of countries. Special risks
include, among others, political and legal uncertainty, persistent
religious, ethnic and border disputes, greater government control over the
economy, currency fluctuations or blockage and the risk of nationalization
or expropriation of assets. Uncertainty regarding inflation and currency
exchange rates, fiscal policy, credit ratings and the possibility that
future harmful political actions will be taken by the Indian government,
could negatively impact the Indian economy and securities markets, and
thus adversely affect the Fund’s
performance. |
24 | Prospectus 2021 |
■ |
Small- and Mid-Cap Stock
Risk.
Investments
in small- and mid-capitalization companies (small- and mid-cap companies)
often involve greater risks than investments in larger, more established
companies (larger companies) because small- and mid-cap companies tend to
have less predictable earnings and may lack the management experience,
financial resources, product diversification and competitive strengths of
larger companies. Securities of small- and mid-cap companies may be less
liquid and more volatile than the securities of larger
companies. |
■ |
Large-Cap Stock Risk.
Investments
in larger companies may involve certain risks associated with their larger
size. For instance, larger companies may be less able to respond quickly
to new competitive challenges, such as changes in consumer tastes or
innovation from smaller competitors. Also, larger companies are sometimes
less able to achieve as high growth rates as successful smaller companies,
especially during extended periods of economic
expansion. |
Prospectus 2021 | 25 |
26 | Prospectus 2021 |
■ |
Consumer
Discretionary/Staples Sectors.
The
Fund is more susceptible to the particular risks that may affect companies
in the consumer discretionary/staples sectors than if it were invested in
a wider variety of companies in unrelated sectors. Companies in the
consumer discretionary/staples sectors are subject to certain risks,
including fluctuations in the performance of the overall domestic and
international economy, interest rate changes, currency exchange rates,
increased competition and consumer confidence. Performance of such
companies may be affected by factors including reduced disposable
household income, reduced consumer spending, and changing demographics and
consumer
tastes. |
Prospectus 2021 | 27 |
as of December 31 Each Year |
| ||
|
Best |
|
|
Worst
|
|
- |
* |
une 30, 2021 |
Inception Date |
1 Year |
5 Years |
Life of Fund | |
At NAV | ||||
returns before taxes | ||||
returns after taxes on distributions | ||||
returns after taxes on distributions and sale of Fund shares | ||||
Indxx India Consumer Index
(reflects
no deductions for fees, expenses or taxes)
|
||||
MSCI India Index (Net)
(reflects
reinvested dividends net of withholding taxes but reflects no deductions
for fees, expenses or other taxes)
|
Portfolio Manager
|
Title |
Role with Fund |
Managed Fund Since
| |||
Christopher Lo, CFA | Senior Portfolio Manager | Portfolio Manager | 2016 |
28 | Prospectus 2021 |
Prospectus 2021 | 29 |
30 | Prospectus 2021 |
Prospectus 2021 | 31 |
32 | Prospectus 2021 |
Prospectus 2021 | 33 |
■ |
Asia Pacific Region.
A
number of countries in the Asia Pacific region are considered
underdeveloped or developing, including from a political, economic and/or
social perspective, and may have relatively unstable governments and
economies based on limited business, industries and/or natural resources
or commodities. Events in any one country within the region may impact
that country, other countries in the region or the region as a whole. As a
result, events in the region will generally have a greater effect on the
Fund than if the Fund were more geographically diversified in a region
with more developed countries and economies. This could result in
increased volatility in the value of the Fund’s investments and losses for
the Fund. Continued growth of economies and securities markets in the
region will require sustained economic and fiscal discipline, as well as
continued commitment to governmental and regulatory reforms. Development
also may be influenced by international economic conditions, including
those in the United States and Japan, and by world demand for goods or
natural resources produced in countries in the Asia Pacific region.
Securities markets in the region are generally smaller and have a lower
trading volume than those in the United States, which may result in the
securities of some companies in the region being less liquid than U.S. or
other foreign securities. Some currencies, inflation rates or interest
rates in the Asia Pacific region are or can be volatile, and some
countries in the region may restrict the flow of money in and out of the
country. The risks described under “Emerging Market Securities Risk”
and “Foreign Securities Risk” may be more pronounced due to the
Fund’s focus on investments in the
region. |
34 | Prospectus 2021 |
■ |
Small- and Mid-Cap Stock
Risk.
Securities
of small- and mid-cap companies can, in certain circumstances, have a
higher potential for gains than securities of larger companies
but are more likely to have more risk than larger companies. For
example, small- and mid-cap companies may be more vulnerable to market
downturns and adverse business or economic events than larger companies
because they may have more limited financial resources and business
operations. Small- and mid-cap companies are also more likely than larger
companies to have more limited product lines and operating histories and
to depend on smaller and generally less experienced management teams.
Securities of small- and mid-cap companies may trade less frequently and
in smaller volumes and may be less liquid and fluctuate more sharply in
value than securities of larger companies. When the Fund takes significant
positions in small- and mid-cap companies with limited trading volumes,
the liquidation of those positions, particularly in a distressed market,
could be prolonged and result in Fund investment losses that would affect
the value of your investment in the Fund. In addition, some small- and
mid-cap companies may not be widely followed by the investment community,
which can lower the demand for their
stocks. |
■ |
Large-Cap Stock Risk.
Investments
in larger companies may involve certain risks associated with their larger
size. For instance, larger companies may be less able to respond quickly
to new competitive challenges, such as changes in consumer tastes or
innovation from smaller competitors. Also, larger companies are sometimes
less able to achieve as high growth rates as successful smaller companies,
especially during extended periods of economic
expansion. |
Prospectus 2021 | 35 |
36 | Prospectus 2021 |
■ |
Financial Services
Sector.
The
Fund is more susceptible to the particular risks that may affect companies
in the financial services sector than if it were invested in a wider
variety of companies in unrelated sectors. Companies in the financial
services sector are subject to certain risks, including the risk of
regulatory change, decreased liquidity in credit markets and unstable
interest rates. Such companies may have concentrated portfolios, such as a
high level of loans to one or more industries or sectors, which makes them
vulnerable to economic conditions that affect such industries or sectors.
Performance of such companies may be affected by competitive pressures and
exposure to investments, agreements and counterparties, including credit
products that, under certain circumstances, may lead to losses (e.g.,
subprime loans). Companies in the financial services sector are subject to
extensive governmental regulation that may limit the amount and types of
loans and other financial commitments they can make, and the interest
rates and fees they may charge. In addition, profitability of such
companies is largely dependent upon the availability and the cost of
capital. |
■ |
Information Technology
Sector.
The
Fund is more susceptible to the particular risks that may affect companies
in the information technology sector than if it were invested in a wider
variety of companies in unrelated sectors. Companies in the information
technology sector are subject to certain risks, including the risk that
new services, equipment or technologies will not be accepted by consumers
and businesses or will become rapidly obsolete. Performance of such
companies may be affected by factors including obtaining and protecting
patents (or the failure to do so) and significant competitive pressures,
including aggressive pricing of their products or services, new market
entrants, competition for market share and short product cycles due to an
accelerated rate of technological developments. Such competitive pressures
may lead to limited earnings and/or falling profit margins. As a result,
the value of their securities may fall or fail to rise. In addition, many
information technology |
Prospectus 2021 | 37 |
38 | Prospectus 2021 |
Prospectus 2021 | 39 |
40 | Prospectus 2021 |
Prospectus 2021 | 41 |
42 | Prospectus 2021 |
■ |
Greater China.
The
Greater China region consists of Hong Kong, The People's Republic of China
and Taiwan, among other countries, and the Fund's investments in the
region are particularly susceptible to risks in that region. The Hong
Kong, Taiwanese, and Chinese economies are dependent on the economies of
other countries and can be significantly affected by currency fluctuations
and increasing competition from other emerging economies in Asia with
lower costs. Adverse events in any one country within the region may
impact the other countries in the region or Asia as a whole. As a result,
adverse events in the region will generally have a greater effect on the
Fund than if the Fund were more geographically diversified, which could
result in greater volatility in the Fund’s NAV and losses. Markets in the
Greater China region can experience significant volatility due to social,
economic, regulatory and political uncertainties. Changes in Chinese
government policy and economic growth rates could significantly affect
local markets and the entire Greater China region. China has yet to
develop comprehensive securities, corporate, or commercial laws, its
market is relatively new and less developed, and its economy is
experiencing a relative slowdown. Export growth continues to be a major
driver of China’s economic growth. As a result, a reduction in spending on
Chinese products and services, the institution of additional tariffs or
other trade barriers, including as a result of heightened trade tensions
between China and the United States, or a downturn in any of the economies
of China’s key trading partners may have an adverse impact on the Chinese
economy. |
Prospectus 2021 | 43 |
■ |
Mid-Cap Stock Risk.
Securities
of mid-cap companies can, in certain circumstances, have more risk than
securities of larger companies. For example, mid-cap companies may be more
vulnerable to market downturns and adverse business or economic events
than larger companies because they may have more limited financial
resources and business operations. Mid-cap companies are also more likely
than larger companies to have more limited product lines and operating
histories and to depend on smaller and generally less experienced
management teams. Securities of mid-cap companies may trade less
frequently and in smaller volumes and may fluctuate more sharply in value
than securities of larger companies. When the Fund takes significant
positions in mid-cap companies with limited trading volumes, the
liquidation of those positions, particularly in a distressed market, could
be difficult and result in Fund investment losses that would affect the
value of your investment in the Fund. In addition, some mid-cap companies
may not be widely followed by the investment community, which can lower
the demand for their stocks. |
■ |
Large-Cap Stock Risk.
Investments
in larger companies may involve certain risks associated with their larger
size. For instance, larger companies may be less able to respond quickly
to new competitive challenges, such as changes in consumer tastes or
innovation from smaller competitors. Also, larger companies are sometimes
less able to achieve as high growth rates as successful smaller companies,
especially during extended periods of economic
expansion. |
44 | Prospectus 2021 |
Prospectus 2021 | 45 |
■ |
Communication Services
Sector.
The
Fund is more susceptible to the particular risks that may affect companies
in the communication services sector than if it were invested in a wider
variety of companies in unrelated sectors. Companies in the communication
services sector are subject to certain risks, including the risk that new
services, equipment or technologies will not be accepted by consumers and
businesses or will become rapidly obsolete. Performance of such companies
may be affected by factors including obtaining and protecting patents (or
the failure to do so) and significant competitive pressures, including
aggressive pricing of their products or services, new market entrants,
competition for market share and short product cycles due to an
accelerated rate of technological developments. Such competitive pressures
may lead to limited earnings and/or falling profit margins. As a result,
the value of their securities may fall or fail to rise. In addition, many
communication services sector companies have limited operating histories
and prices of these companies’ securities historically have been more
volatile than other securities, especially over the short
term. |
■ |
Consumer
Discretionary/Staples Sectors.
The
Fund is more susceptible to the particular risks that may affect companies
in the consumer discretionary/staples sectors than if it were invested in
a wider variety of companies in unrelated sectors. Companies in the
consumer discretionary/staples sectors are subject to certain risks,
including fluctuations in the performance of the overall domestic and
international economy, interest rate changes, currency exchange rates,
increased competition and consumer confidence. Performance of such
companies may be affected by factors including reduced disposable
household income, reduced consumer spending, and changing demographics and
consumer tastes. |
46 | Prospectus 2021 |
Prospectus 2021 | 47 |
48 | Prospectus 2021 |
Prospectus 2021 | 49 |
50 | Prospectus 2021 |
■ |
India.
The
Fund is particularly susceptible to economic, political, regulatory or
other events or conditions affecting issuers in India. Because the Fund
invests predominantly in Indian securities, its NAV will be much more
sensitive to changes in economic, political and other factors within India
than would a fund that invested in a variety of countries. Special risks
include, among others, political and legal uncertainty, persistent
religious, ethnic and border disputes, greater government control over the
economy, currency fluctuations or blockage and the risk of nationalization
or expropriation of assets. Uncertainty regarding inflation and currency
exchange rates, fiscal policy, credit ratings and the possibility that
future harmful political actions will be taken by the Indian government,
could negatively impact the Indian economy and securities markets, and
thus adversely affect the Fund’s
performance. |
Prospectus 2021 | 51 |
■ |
Small- and Mid-Cap Stock
Risk.
Securities
of small- and mid-cap companies can, in certain circumstances, have a
higher potential for gains than securities of larger companies
but are more likely to have more risk than larger companies. For
example, small- and mid-cap companies may be more vulnerable to market
downturns and adverse business or economic events than larger companies
because they may have more limited financial resources and business
operations. Small- and mid-cap companies are also more likely than larger
companies to have more limited product lines and operating histories and
to depend on smaller and generally less experienced management teams.
Securities of small- and mid-cap companies may trade less frequently and
in smaller volumes and may be less liquid and fluctuate more sharply in
value than securities of larger companies. When the Fund takes significant
positions in small- and mid-cap companies with limited trading volumes,
the liquidation of those positions, particularly in a distressed market,
could be prolonged and result in Fund investment losses that would affect
the value of your investment in the Fund. In addition, some small- and
mid-cap companies may not be widely followed by the investment community,
which can lower the demand for their
stocks. |
■ |
Large-Cap Stock Risk.
Investments
in larger companies may involve certain risks associated with their larger
size. For instance, larger companies may be less able to respond quickly
to new competitive challenges, such as changes in consumer tastes or
innovation from smaller competitors. Also, larger companies are sometimes
less able to achieve as high growth rates as successful smaller companies,
especially during extended periods of economic
expansion. |
52 | Prospectus 2021 |
Prospectus 2021 | 53 |
■ |
Consumer
Discretionary/Staples Sectors.
The
Fund is more susceptible to the particular risks that may affect companies
in the consumer discretionary/staples sectors than if it were invested in
a wider variety of companies in unrelated sectors. Companies in the
consumer discretionary/staples sectors are subject to certain risks,
including fluctuations in the performance of the overall domestic and
international economy, interest rate changes, currency exchange rates,
increased competition and consumer confidence. Performance of such
companies may be affected by factors including reduced disposable
household income, reduced consumer spending, and changing demographics and
consumer tastes. |
54 | Prospectus 2021 |
Prospectus 2021 | 55 |
56 | Prospectus 2021 |
Prospectus 2021 | 57 |
58 | Prospectus 2021 |
Columbia Emerging Markets Consumer ETF | 0.49% |
Columbia India Consumer ETF | 0.75% |
Prospectus 2021 | 59 |
Investment advisory
services fee for the fiscal year ended March 31, 2021 | |
Columbia EM Core ex-China ETF | 0.16% |
Columbia Emerging Markets Consumer ETF | 0.59% |
Columbia India Consumer ETF | 0.75% |
Portfolio Manager
|
Title |
Role with Fund |
Managed Fund Since
| |||
Christopher Lo, CFA | Senior Portfolio Manager | Portfolio Manager | 2016 |
60 | Prospectus 2021 |
Fund |
Index |
Index Provider or Sponsor
|
Columbia Emerging Markets Consumer ETF | Dow
Jones Emerging Markets Consumer Titans
TM Index
|
S&P DJI |
Columbia India Consumer ETF | Indxx India Consumer Index | Indxx |
■ | compensation and other benefits received by the Investment Manager and other Ameriprise Financial affiliates related to the management/administration of a Columbia Fund and the sale of its shares; |
■ | the allocation of, and competition for, investment opportunities among the Fund, other funds and accounts advised/managed by the Investment Manager and other Ameriprise Financial affiliates, or Ameriprise Financial itself and its affiliates; |
■ | separate and potentially divergent management of a Columbia Fund and other funds and accounts advised/managed by the Investment Manager and other Ameriprise Financial affiliates; |
■ | regulatory and other investment restrictions on investment activities of the Investment Manager and other Ameriprise Financial affiliates and accounts advised/managed by them; |
■ | insurance and other relationships of Ameriprise Financial affiliates with companies and other entities in which a Columbia Fund invests; and |
■ | regulatory and other restrictions relating to the sharing of information between Ameriprise Financial and its affiliates, including the Investment Manager, and a Columbia Fund. |
Prospectus 2021 | 61 |
62 | Prospectus 2021 |
Creation Unit Value
| |
Columbia EM Core ex-China ETF | $1,669,236.72 |
Columbia Emerging Markets Consumer ETF | $1,414,221.96 |
Columbia India Consumer ETF | $2,687,793.25 |
Columbia EM Core ex-China ETF |
XCEM |
Columbia Emerging Markets Consumer ETF |
ECON |
Columbia India Consumer ETF |
INCO
|
Prospectus 2021 | 63 |
64 | Prospectus 2021 |
Prospectus 2021 | 65 |
66 | Prospectus 2021 |
Prospectus 2021 | 67 |
68 | Prospectus 2021 |
■ | It can earn income on its investments. Examples of fund income are interest paid on money market instruments and dividends paid on common stocks. |
■ | A fund can also have capital gains if the value of its investments increases. While a fund continues to hold an investment, any gain is generally unrealized. If the fund sells an investment, it generally will realize a capital gain if it sells that investment for a higher price than its adjusted cost basis, and will generally realize a capital loss if it sells that investment for a lower price than its adjusted cost basis. Capital gains and losses are either short-term or long-term, depending on whether the fund holds the securities for one year or less (short-term) or more than one year (long-term). |
Declarations |
Distributions | |
Columbia EM Core ex-China ETF | Annually | Annually |
Columbia Emerging Markets Consumer ETF | Annually | Annually |
Columbia India Consumer ETF | Annually | Annually |
Prospectus 2021 | 69 |
■ | The Fund intends to qualify and to be eligible for treatment each year as a regulated investment company. A regulated investment company generally is not subject to tax at the fund level on income and gains from investments that are distributed to shareholders. However, the Fund's failure to qualify for treatment as a regulated investment company would result in Fund-level taxation, and consequently, a reduction in income available for distribution to you and in the NAV of your shares. Even if the Fund qualifies for treatment as a regulated investment company, the Fund may be subject to federal excise tax on certain undistributed income or gains. |
■ | Otherwise taxable distributions generally are taxable to you when paid, whether they are paid in cash or automatically reinvested in additional Fund shares. Dividends paid in January are deemed paid on December 31 of the prior year if the dividend was declared and payable to shareholders of record in October, November, or December of such prior year. |
■ | Distributions of the Fund's ordinary income and net short-term capital gain, if any, generally are taxable to you as ordinary income. Distributions of the Fund's net long-term capital gain, if any, generally are taxable to you as long-term capital gain. Whether capital gains are long-term or short-term is determined by how long the Fund has owned the investments that generated them, rather than how long you have owned your shares. |
■ | From time to time, a distribution from the Fund could constitute a return of capital. A return of capital is a return of an amount of your original investment and is not a distribution of income or capital gain from the Fund. Therefore, a return of capital is not taxable to you so long as the amount of the distribution does not exceed your tax basis in your Fund shares. A return of capital reduces your tax basis in your Fund shares, with any amounts exceeding such basis generally taxable as capital gain. |
■ | If you are an individual and you meet certain holding period and other requirements for your Fund shares, a portion of your distributions may be treated as “qualified dividend income” taxable at the lower net long-term capital gain rates instead of the higher ordinary income rates. Qualified dividend income is income attributable to the Fund's dividends received from certain U.S. and foreign corporations, as long as the Fund meets certain holding period and other requirements for the stock producing such dividends. |
■ | Certain high-income individuals (as well as estates and trusts) are subject to a 3.8% tax on net investment income. For individuals, the 3.8% tax applies to the lesser of (1) the amount (if any) by which the taxpayer's modified adjusted gross income exceeds certain threshold amounts or (2) the taxpayer's “net investment income.” |
Net investment income generally includes for this purpose dividends, including any capital gain dividends, paid by the Fund, and net gains recognized on the sale, redemption or exchange of shares of the Fund. |
■ | Certain derivative instruments when held in the Fund's portfolio subject the Fund to special tax rules, the effect of which may be to, among other things, accelerate income to the Fund, defer Fund losses, cause adjustments in the holding periods of Fund portfolio securities, or convert capital gains into ordinary income, short-term capital losses into long-term capital losses or long-term capital gains into short-term capital gains. These rules could therefore affect the amount, timing and/or character of distributions to shareholders. |
■ | Generally, a Fund realizes a capital gain or loss on an option when the option expires, or when it is exercised, sold or otherwise terminated. However, if an option is a “section 1256 contract,” which includes most traded options on a broad-based index, and the Fund holds such option at the end of its taxable year, the Fund is deemed to sell such option at fair market value at such time and recognize any gain or loss thereon, which is generally deemed to be 60% long-term and 40% short-term capital gain or loss, as described further in the SAI. |
■ | Income and proceeds received by the Fund from sources within foreign countries may be subject to foreign taxes. If at the end of the taxable year more than 50% of the value of the Fund's assets consists of securities of foreign corporations, and the Fund makes a special election, you will generally be required to include in your income for U.S. federal income tax purposes your share of the qualifying foreign income taxes paid by the Fund in respect of |
70 | Prospectus 2021 |
its foreign portfolio securities. You may be able to claim a foreign tax credit or deduction in respect of this amount, subject to certain limitations. There is no assurance that the Fund will make this election for a taxable year, even if it is eligible to do so. |
■ | A sale, redemption or exchange of Fund shares is a taxable event. This includes redemptions where you are paid in securities. Your sales, redemptions and exchanges of Fund shares, including those paid in securities or other instruments, usually will result in a taxable capital gain or loss to you, equal to the difference between the amount you receive for your shares (or are deemed to have received in the case of exchanges) and your adjusted tax basis in the shares, which is generally the amount you paid (or are deemed to have paid in the case of exchanges) for them. Any such capital gain or loss generally will be long-term capital gain or loss if you have held your Fund shares for more than one year at the time of sale or exchange. In certain circumstances, capital losses may be converted from short-term to long-term; in other circumstances, capital losses may be disallowed under the “wash sale” rules. |
■ | Your broker will be responsible for furnishing tax reporting information for Fund shares held in a nonqualified account, shareholder reports, and other communications from the Fund. For sales or exchanges of Fund shares acquired in a nonqualified account after 2011, your broker is required to report basis and holding period information to you and the IRS. Your broker may offer a choice of basis calculation methods. Contact your broker to determine which basis methods are available for your account. |
■ | The Fund or, in the case of sales of Fund shares in the secondary market, your broker, will generally be required by federal law to withhold tax on any distributions and proceeds paid to you if you have not provided a correct TIN or have not certified to the Fund or its agent, or your broker, as the case may be, that withholding does not apply. |
■ |
For Authorized
Participants Purchasing and Redeeming in Creation Units:
An
Authorized Participant that exchanges equity securities for one or more
Creation Units will generally recognize a gain or a loss on the exchange.
The gain or loss will be equal to the difference between (i) the market
value of the Creation Unit(s) at the time and, (ii) the exchanger’s
aggregate basis in the securities surrendered plus (or minus) the Cash
Component paid (or received). A person who redeems one or more Creation
Units for equity securities will generally recognize a gain or loss equal
to the difference between (i) the exchanger’s basis in the Creation
Unit(s) and, (ii) the aggregate market value of the securities received
plus (or minus) the Cash Component received (or paid). The IRS, however,
may assert that a loss realized upon an exchange of securities for
Creation Unit(s) cannot be deducted currently under the rules governing
“wash sales,” or on the basis that there has been no significant change in
economic position. Persons exchanging securities should consult their own
tax advisors with respect to whether wash sale rules apply and when a loss
might be deductible. Any capital gain or loss realized upon a redemption
of one or more Creation Units is generally treated as long-term capital
gain or loss if the Creation Unit(s) have been held for more than one year
and as short-term capital gain or loss if they have been held for one year
or less. If you purchase or redeem Creation Units, you will be sent a
confirmation statement showing how many shares you purchased or sold and
at what price.
|
Prospectus 2021 | 71 |
72 | Prospectus 2021 |
Prospectus 2021 | 73 |
Web site information
| |
Fund |
Internet address
|
Columbia EM Core ex-China ETF | https://www.columbiathreadneedleus.com/investment-products/details/?cusip=19762B202 |
Columbia Emerging Markets Consumer ETF | https://www.columbiathreadneedleus.com/investment-products/details/?cusip=19762B509 |
Columbia India Consumer ETF | https://www.columbiathreadneedleus.com/investment-products/details/?cusip=19762B707 |
74 | Prospectus 2021 |
Year Ended March 31,
| |||||
2021 |
2020 |
2019 |
2018 |
2017 | |
Per share data |
|||||
Net asset value, beginning of year | $19.09 | $25.40 | $28.03 | $24.91 | $21.23 |
Income (loss) from
investment operations: |
|||||
Net investment income | 0.68 | 0.69 | 0.65 | 0.66 | 0.41 |
Net realized and unrealized gain (loss) | 12.37 | (6.41) | (2.51) | 4.83 | 3.55 |
Total from investment operations | 13.05 | (5.72) | (1.86) | 5.49 | 3.96 |
Less distributions to
shareholders: |
|||||
Net investment income | (0.49) | (0.59) | (0.62) | (0.61) | (0.28) |
Net realized gains | — | — | (0.15) | (1.76) | — |
Total distribution to shareholders | (0.49) | (0.59) | (0.77) | (2.37) | (0.28) |
Net asset value, end of
year |
$31.65 | $19.09 | $25.40 | $28.03 | $24.91 |
Total Return at NAV | 68.56% | (23.25)% | (6.38)% | 22.76% | 18.83% |
Total Return at Market | 69.09% | (23.43)% | (7.37)% | 20.45% | 23.20% |
Ratios to average net
assets: |
|||||
Total
gross expenses
(a) |
0.16% | 0.19%
(b) |
0.47%
(c) |
0.70%
(d) |
0.70% |
Total
net expenses
(a)(e) |
0.16% | 0.19%
(b) |
0.35%
(c) |
0.35%
(d) |
0.35% |
Net Investment income | 2.61% | 2.70% | 2.54% | 2.40% | 1.80% |
Supplemental data
|
|||||
Net assets, end of year (in thousands) | $30,070 | $14,321 | $11,431 | $9,811 | $11,209 |
Portfolio turnover | 19% | 14% | 24% | 37% | 30% |
(a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund's reported expense ratios. |
(b) | The ratio includes less than 0.01% for the year ended March 31, 2020 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3). |
(c) | The ratio includes less than 0.01% for the year ended March 31, 2019 attributed to overdraft expense, which is outside the Unitary Fee (as defined in Note 3). |
(d) | The ratio includes less than 0.01% for the year ended March 31, 2018 attributed to line of credit interest expense, overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3). |
(e) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
Prospectus 2021 | 75 |
Year Ended March 31,
| |||||
2021 |
2020 |
2019
(a)(b) |
2018
(a) |
2017
(a) | |
Per share data |
|||||
Net asset value, beginning of year | $19.65 | $22.67 | $26.34 | $24.75 | $22.60 |
Income (loss) from
investment operations: |
|||||
Net investment income | 0.29 | 0.27 | 0.25 | 0.10 | 0.18 |
Net realized and unrealized gain (loss) | 7.97 | (2.90) | (3.72) | 1.59 | 2.13 |
Total from investment operations | 8.26 | (2.63) | (3.47) | 1.69 | 2.31 |
Less distributions to
shareholders: |
|||||
Net investment income | (0.18) | (0.39) | (0.20) | (0.10) | (0.16) |
Net asset value, end of
year |
$27.73 | $19.65 | $22.67 | $26.34 | $24.75 |
Total Return at NAV | 42.02% | (11.87)% | (13.08)% | 6.81% | 10.35% |
Total Return at Market | 43.27% | (11.95)% | (13.90)% | 7.16% | 10.75% |
Ratios to average net
assets: |
|||||
Total
gross expenses
(c) |
0.59%
(d) |
0.60%
(e) |
0.61%
(f) |
0.81%
(g) |
0.85%
(h) |
Total
net expenses
(c)(i) |
0.59%
(d) |
0.60%
(e) |
0.61%
(f) |
0.81%
(g) |
0.85%
(h) |
Net Investment income | 1.14% | 1.20% | 1.07% | 0.37% | 0.77% |
Supplemental data
|
|||||
Net assets, end of year (in thousands) | $182,999 | $174,921 | $290,119 | $809,911 | $741,171 |
Portfolio turnover | 40% | 37% | 61% | 27% | 17% |
(a) | Consolidated. |
(b) | EG Shares Consumer Mauritius, the Fund's Subsidiary, was liquidated on November 30, 2018. |
(c) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund's reported expense ratios. |
(d) | The total gross expense ratio includes less than 0.01% for the year ended March 31, 2021 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3). There is no impact to the total net expense ratio attributed to overdraft expense and tax expense, as the entire overdraft expense and tax expense were waived for the year ended March 31, 2021. |
(e) | The ratio includes 0.01% for the year ended March 31, 2020 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3). |
(f) | The ratio includes 0.02% for the year ended March 31, 2019 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3). |
(g) | The ratio includes less than 0.01% for the year ended March 31, 2018 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3). |
(h) | The ratio includes less than 0.01% for the year ended March 31, 2017 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3). |
(i) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
76 | Prospectus 2021 |
Year Ended March 31,
| |||||
2021 |
2020 |
2019 |
2018 |
2017 | |
Per share data |
|||||
Net asset value, beginning of year | $30.80 | $42.08 | $45.81 | $38.31 | $31.16 |
Income (loss) from
investment operations: |
|||||
Net investment income (loss) | 0.09 | 0.29 | 0.12 | 0.01 | (0.03) |
Net realized and unrealized gain (loss) | 20.12 | (11.45) | (3.80) | 7.52 | 7.21 |
Total from investment operations | 20.21 | (11.16) | (3.68) | 7.53 | 7.18 |
Less distributions to
shareholders: |
|||||
Net investment income | (0.16) | (0.12) | (0.05) | (0.03) | (0.03) |
Net asset value, end of
year |
$50.85 | $30.80 | $42.08 | $45.81 | $38.31 |
Total Return at NAV | 65.67% | (26.60)% | (8.03)% | 19.64% | 23.06% |
Total Return at Market | 69.58% | (28.00)% | (8.44)% | 19.98% | 23.67% |
Ratios to average net
assets: |
|||||
Total
gross expenses
(a) |
0.80%
(b) |
0.81%
(c) |
0.77%
(d) |
0.87%
(e) |
0.89%
(f) |
Total
net expenses
(a)(g) |
0.75%
(b) |
0.81%
(c) |
0.77%
(d) |
0.87%
(e) |
0.89%
(f) |
Net Investment income (loss) | 0.22% | 0.70% | 0.26% | 0.01% | (0.09)% |
Supplemental data
|
|||||
Net assets, end of year (in thousands) | $91,532 | $67,764 | $130,436 | $144,289 | $88,102 |
Portfolio turnover | 16% | 11% | 15% | 28% | 31% |
(a) | In addition to the fees and expenses that the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of any other funds in which it invests. Such indirect expenses are not included in the Fund's reported expense ratios. |
(b) | The total gross expense ratio includes 0.05% for the year ended March 31, 2021 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3). The total net expense ratio includes less than 0.01% for the year ended March 31, 2021 attributed to overdraft expense. |
(c) | The ratio includes 0.06% for the year ended March 31, 2020 attributed to overdraft expense and tax expense, which is outside the Unitary Fee (as defined in Note 3). |
(d) | The ratio includes 0.02% for the year ended March 31, 2019 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3). |
(e) | The ratio includes 0.01% for the year ended March 31, 2018 attributed to line of credit interest expense and tax expense, which is outside the Unitary Fee (as defined in Note 3). |
(f) | The ratio includes less than 0.01% for the year ended March 31, 2017 attributed to tax expense, which is outside the Unitary Fee (as defined in Note 3). |
(g) | Total net expenses include the impact of certain fee waivers/expense reimbursements made by the Investment Manager and certain of its affiliates, if applicable. |
Prospectus 2021 | 77 |
A-1 | Prospectus 2021 |
Prospectus 2021 | A-2 |
A-3 | Prospectus 2021 |