UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22986
abrdn ETFs
(Exact name of registrant as specified in charter)
1900 Market Street, Suite 200
Philadelphia, PA 19103
(Address of principal executive offices) (Zip code)
The Corporation Service Company
251 Little Falls Drive
Wilmington, Delaware 19808
(Name and Address of Agent for Service)
Registrant’s telephone number, including area code: (844) 383-7289
Date of fiscal year end: December 31
Date of reporting period: December 31, 2023
Item 1. Reports to Stockholders.
The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
Funds | Ticker | Asset Class | Inception Date |
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | BCI | Broad Commodity | March 30, 2017 |
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | BCD | Broad Commodity | March 30, 2017 |
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | BCIM | Industrial Metals | September 22, 2021 |
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Average Annual Total Returns as of 12/31/2023 * | 1 Year | 5 Years | Since Inception of Fund (03/30/2017) |
abrdn Bloomberg All Commodity Strategy K-1 Free ETF NAV Price | -8.35% | 6.76% | 3.50% |
abrdn Bloomberg All Commodity Strategy K-1 Free ETF Market Price | -8.79% | 6.43% | 3.48% |
Bloomberg Commodity Index | -12.55% | 5.16% | 2.17% |
Bloomberg Commodity Index Total Return | -7.91% | 7.23% | 4.08% |
* | Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times. Returns less than one year are cumulative; greater than one year and since inception are annualized. |
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Holdings and allocations are subject to change. For illustrative purposes only.
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Average Annual Total Returns as of 12/31/2023 * | 1 Year | 5 Years | Since Inception of Fund (03/30/2017) |
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF NAV Price | -7.36% | 10.25% | 6.50% |
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF Market Price | -7.59% | 10.08% | 6.46% |
Bloomberg Commodity Index Total Return | -7.91% | 7.23% | 4.08% |
Bloomberg Commodity Index 3 Month Forward Total Return | -6.88% | 10.69% | 7.06% |
* | Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times. Returns less than one year are cumulative; greater than one year and since inception are annualized. |
10
Holdings and allocations are subject to change. For illustrative purposes only.
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Average Annual Total Returns as of 12/31/2023 * | 1 Year | Since Inception of Fund (09/22/2021) |
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF NAV Price | -9.61% | -3.82% |
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF Market Price | -9.72% | -3.82% |
Bloomberg Commodity Index Total Return | -13.72% | -6.19% |
Bloomberg Industrial Metals Total Return Subindex | -9.15% | -3.37% |
* | Market price returns reflect the midpoint of the bid/ask spread as of the close of trading on the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times. Returns less than one year are cumulative; greater than one year and since inception are annualized. |
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Holdings and allocations are subject to change. For illustrative purposes only.
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Shares or Principal Amount | Value | |||
SHORT-TERM INVESTMENTS—97.1% | ||||
MONEY MARKET FUNDS—2.8% | ||||
Invesco Government & Agency Portfolio, 4.73% (a) | 22,645,813 | $ 22,645,813 | ||
Total Money Market Funds | 22,645,813 | |||
U.S. TREASURIES—94.3% | ||||
U.S. Treasury Bills | ||||
5.29%, 01/02/2024 (b) | $ | 40,000,000 | 40,000,000 | |
5.33%, 01/04/2024 (b) | 20,000,000 | 19,994,194 | ||
5.28%, 01/09/2024 (b) | 40,000,000 | 39,959,251 | ||
5.34%, 01/11/2024 (b)(c) | 38,000,000 | 37,950,392 | ||
5.28%, 01/16/2024 (b) | 40,000,000 | 39,918,294 | ||
5.31%, 01/18/2024 (b) | 40,000,000 | 39,906,198 | ||
5.27%, 01/23/2024 (b)(c) | 40,000,000 | 39,877,189 | ||
5.31%, 01/25/2024 (b) | 40,000,000 | 39,865,380 | ||
5.26%, 01/30/2024 (b)(c) | 33,000,000 | 32,864,275 | ||
5.27%, 02/01/2024 (b) | 40,000,000 | 39,824,392 | ||
5.28%, 02/06/2024 (b) | 37,000,000 | 36,810,264 | ||
5.27%, 02/08/2024 (b) | 40,000,000 | 39,783,576 | ||
5.27%, 02/13/2024 (b)(c) | 37,000,000 | 36,772,360 | ||
5.25%, 02/15/2024 (b) | 40,000,000 | 39,744,018 | ||
5.26%, 02/20/2024 (b) | 37,000,000 | 36,734,907 | ||
5.27%, 02/22/2024 (b) | 40,000,000 | 39,702,932 | ||
5.24%, 02/29/2024 (b)(c) | 40,000,000 | 39,661,070 | ||
5.24%, 03/07/2024 (b) | 20,000,000 | 19,812,177 | ||
5.22%, 03/14/2024 (b) | 28,000,000 | 27,709,724 | ||
5.22%, 03/21/2024 (b) | 37,000,000 | 36,578,865 | ||
5.22%, 03/28/2024 (b) | 37,000,000 | 36,541,107 | ||
Total U.S. Treasuries | 760,010,565 | |||
Total Short-Term Investments | 782,656,378 | |||
Total Investments (Cost $782,534,935)—97.1% | 782,656,378 | |||
Other Assets in Excess of Liabilities—2.9% | 23,741,477 | |||
Net Assets—100.0% | $806,397,855 |
(a) | The rate shown is the 7 day yield as of December 31, 2023. |
(b) | The rate shown is the discount yield at the time of purchase. |
(c) | All or a portion of the security pledged as collateral for Futures Contracts, with a total collateral value of $155,287,840. |
Federal Tax Cost | $782,534,936 |
Unrealized Appreciation | $108,718,093 |
Unrealized Depreciation | (120,405,231) |
Net Unrealized Appreciation (Depreciation) | $(11,687,138) |
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abrdn Bloomberg All Commodity Strategy K-1 Free ETF (concluded)
At December 31, 2023, the Fund held the following futures contracts: |
Futures Contracts | Number of Contracts Long/(Short) | Expiration Date | Notional Amount | Fair Value | Unrealized Appreciation/ (Depreciation) |
Long Contract Positions | |||||
Aluminum LME * | 639 | 1/17/2024 | $35,461,021 | $37,565,213 | $2,104,192 |
Aluminum LME * | 657 | 3/20/2024 | 35,120,439 | 39,107,925 | 3,987,486 |
Brent Crude Oil | 799 | 3/31/2024 | 64,179,662 | 61,554,960 | (2,624,702) |
Coffee | 418 | 3/18/2024 | 27,081,076 | 29,516,025 | 2,434,949 |
Copper | 464 | 3/26/2024 | 42,773,423 | 45,129,800 | 2,356,377 |
Corn | 1,464 | 3/14/2024 | 35,532,873 | 34,495,500 | (1,037,373) |
Cotton | 316 | 3/06/2024 | 12,499,451 | 12,798,000 | 298,549 |
Gasoline | 202 | 3/29/2024 | 17,416,899 | 18,035,287 | 618,388 |
Gold | 690 | 2/27/2024 | 136,567,943 | 142,954,200 | 6,386,257 |
KC Wheat | 366 | 3/14/2024 | 11,962,081 | 11,748,600 | (213,481) |
Lead LME * | 152 | 1/17/2024 | 8,002,171 | 7,768,150 | (234,021) |
Lead LME * | 154 | 3/20/2024 | 7,837,378 | 7,979,125 | 141,747 |
Lean Hog | 472 | 2/14/2024 | 14,240,470 | 12,833,680 | (1,406,790) |
Live Cattle | 460 | 2/29/2024 | 32,383,708 | 31,004,000 | (1,379,708) |
Low Sulfur Gasoil | 282 | 3/12/2024 | 20,599,885 | 20,719,950 | 120,065 |
Natural Gas | 2,033 | 3/27/2024 | 45,985,641 | 47,307,910 | 1,322,269 |
New York Harbor ULSD | 149 | 3/29/2024 | 15,619,241 | 15,614,962 | (4,279) |
Nickel LME * | 147 | 1/17/2024 | 16,473,486 | 14,495,670 | (1,977,816) |
Nickel LME * | 151 | 3/20/2024 | 15,051,631 | 15,033,258 | (18,373) |
Silver | 332 | 3/26/2024 | 38,074,211 | 39,982,760 | 1,908,549 |
Soybean | 673 | 3/14/2024 | 44,913,620 | 43,677,700 | (1,235,920) |
Soybean Meal | 642 | 3/14/2024 | 25,579,666 | 24,781,200 | (798,466) |
Soybean Oil | 748 | 3/14/2024 | 22,637,629 | 21,623,184 | (1,014,445) |
Sugar | 1,045 | 3/29/2024 | 31,240,017 | 24,086,832 | (7,153,185) |
Wheat | 653 | 3/14/2024 | 19,756,946 | 20,504,200 | 747,254 |
WTI Crude Oil | 912 | 3/20/2024 | 64,317,480 | 65,518,080 | 1,200,600 |
Zinc LME * | 344 | 1/17/2024 | 21,337,838 | 22,729,800 | 1,391,962 |
Zinc LME * | 354 | 3/20/2024 | 21,409,597 | 23,571,975 | 2,162,378 |
$8,082,463 | |||||
Short Contract Positions | |||||
Aluminum LME * | (639) | 1/17/2024 | (33,667,715) | (37,565,212) | (3,897,497) |
Aluminum LME * | (36) | 3/20/2024 | (2,026,709) | (2,142,900) | (116,191) |
Lead LME * | (152) | 1/17/2024 | (7,672,899) | (7,768,150) | (95,251) |
Lead LME * | (7) | 3/20/2024 | (361,671) | (362,688) | (1,017) |
Nickel LME * | (147) | 1/17/2024 | (14,518,836) | (14,495,670) | 23,166 |
Nickel LME * | (8) | 3/20/2024 | (809,703) | (796,464) | 13,239 |
Zinc LME * | (344) | 1/17/2024 | (20,683,594) | (22,729,800) | (2,046,206) |
Zinc LME * | (21) | 3/20/2024 | (1,333,026) | (1,398,338) | (65,312) |
$(6,185,069) | |||||
$1,897,394 |
* | London Metal Exchange (“LME”) futures contracts settle on their respective maturity date. See Note 2. |
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abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF
Shares or Principal Amount | Value | |||
SHORT-TERM INVESTMENTS—100.0% | ||||
MONEY MARKET FUNDS—7.4% | ||||
Invesco Government & Agency Portfolio, 4.73% (a) | 16,150,075 | $ 16,150,075 | ||
Total Money Market Funds | 16,150,075 | |||
U.S. TREASURIES—92.6% | ||||
U.S. Treasury Bills | ||||
5.29%, 01/02/2024 (b) | $ | 12,000,000 | 12,000,000 | |
5.33%, 01/04/2024 (b) | 8,000,000 | 7,997,677 | ||
5.28%, 01/09/2024 (b) | 12,000,000 | 11,987,775 | ||
5.34%, 01/11/2024 (b)(c) | 12,000,000 | 11,984,335 | ||
5.28%, 01/16/2024 (b) | 12,000,000 | 11,975,488 | ||
5.31%, 01/18/2024 (b)(c) | 12,000,000 | 11,971,859 | ||
5.27%, 01/23/2024 (b) | 10,000,000 | 9,969,297 | ||
5.31%, 01/25/2024 (b)(c) | 12,000,000 | 11,959,614 | ||
5.26%, 01/30/2024 (b)(c) | 7,000,000 | 6,971,210 | ||
5.27%, 02/01/2024 (b)(c) | 12,000,000 | 11,947,317 | ||
5.28%, 02/06/2024 (b) | 6,000,000 | 5,969,232 | ||
5.27%, 02/08/2024 (b) | 12,000,000 | 11,935,073 | ||
5.27%, 02/13/2024 (b) | 10,000,000 | 9,938,476 | ||
5.25%, 02/15/2024 (b) | 9,000,000 | 8,942,404 | ||
5.26%, 02/20/2024 (b) | 10,000,000 | 9,928,353 | ||
5.27%, 02/22/2024 (b) | 12,000,000 | 11,910,880 | ||
5.24%, 02/29/2024 (b) | 12,000,000 | 11,898,321 | ||
5.22%, 03/14/2024 (b) | 4,000,000 | 3,958,532 | ||
5.22%, 03/21/2024 (b) | 10,000,000 | 9,886,180 | ||
5.22%, 03/28/2024 (b) | 10,000,000 | 9,875,975 | ||
Total U.S. Treasuries | 203,007,998 | |||
Total Short-Term Investments | 219,158,073 | |||
Total Investments (Cost $219,126,897)—100.0% | 219,158,073 | |||
Other Assets in Excess of Liabilities—0.0% | 46,520 | |||
Net Assets—100.0% | $219,204,593 |
(a) | The rate shown is the 7 day yield as of December 31, 2023. |
(b) | The rate shown is the discount yield at the time of purchase. |
(c) | All or a portion of the security pledged as collateral for Futures Contracts, with a total collateral value of $41,358,045. |
Federal Tax Cost | $219,126,897 |
Unrealized Appreciation | $18,651,159 |
Unrealized Depreciation | (23,594,709) |
Net Unrealized Appreciation (Depreciation) | $(4,943,550) |
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abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF (concluded)
At December 31, 2023, the Fund held the following futures contracts: |
Futures Contracts | Number of Contracts Long/(Short) | Expiration Date | Notional Amount | Fair Value | Unrealized Appreciation/ (Depreciation) |
Long Contract Positions | |||||
Aluminum LME * | 190 | 1/17/2024 | $10,733,132 | $11,169,625 | $436,493 |
Aluminum LME * | 189 | 3/20/2024 | 10,604,326 | 11,250,225 | 645,899 |
Aluminum LME * | 193 | 5/15/2024 | 11,015,803 | 11,639,106 | 623,303 |
Brent Crude Oil | 214 | 7/31/2024 | 16,098,160 | 16,356,020 | 257,860 |
Coffee | 112 | 5/20/2024 | 7,282,528 | 7,820,400 | 537,872 |
Copper | 124 | 5/29/2024 | 11,520,162 | 12,116,350 | 596,188 |
Corn | 392 | 5/14/2024 | 9,699,939 | 9,486,400 | (213,539) |
Cotton | 85 | 5/08/2024 | 3,404,585 | 3,491,375 | 86,790 |
Gasoline | 54 | 5/30/2024 | 5,384,532 | 5,252,461 | (132,071) |
Gold | 185 | 6/26/2024 | 37,907,312 | 39,059,050 | 1,151,738 |
KC Wheat | 98 | 5/14/2024 | 3,242,010 | 3,155,600 | (86,410) |
Lead LME * | 46 | 1/17/2024 | 2,408,579 | 2,350,888 | (57,691) |
Lead LME * | 46 | 3/20/2024 | 2,552,166 | 2,383,375 | (168,791) |
Lead LME * | 45 | 5/15/2024 | 2,456,892 | 2,331,281 | (125,611) |
Lean Hog | 126 | 6/14/2024 | 4,571,302 | 4,532,220 | (39,082) |
Live Cattle | 123 | 6/28/2024 | 8,243,511 | 8,366,460 | 122,949 |
Low Sulfur Gasoil | 75 | 5/10/2024 | 5,745,207 | 5,420,625 | (324,582) |
Natural Gas | 544 | 5/26/2024 | 16,517,850 | 12,881,920 | (3,635,930) |
New York Harbor ULSD | 40 | 5/30/2024 | 4,319,781 | 4,067,784 | (251,997) |
Nickel LME * | 45 | 1/17/2024 | 5,809,021 | 4,437,450 | (1,371,571) |
Nickel LME * | 43 | 3/20/2024 | 5,278,157 | 4,280,994 | (997,163) |
Nickel LME * | 44 | 5/15/2024 | 4,740,525 | 4,423,848 | (316,677) |
Silver | 89 | 5/29/2024 | 10,326,554 | 10,822,845 | 496,291 |
Soybean | 180 | 5/14/2024 | 12,428,762 | 11,765,250 | (663,512) |
Soybean Meal | 172 | 5/14/2024 | 7,226,461 | 6,618,560 | (607,901) |
Soybean Oil | 200 | 5/14/2024 | 5,993,745 | 5,828,400 | (165,345) |
Sugar | 280 | 5/30/2024 | 8,133,264 | 6,403,712 | (1,729,552) |
Wheat | 175 | 5/14/2024 | 5,443,667 | 5,595,625 | 151,958 |
WTI Crude Oil | 244 | 5/22/2024 | 18,451,359 | 17,599,720 | (851,639) |
Zinc LME * | 102 | 1/17/2024 | 6,159,393 | 6,739,650 | 580,257 |
Zinc LME * | 101 | 3/20/2024 | 6,357,921 | 6,725,338 | 367,417 |
Zinc LME * | 104 | 5/15/2024 | 6,736,838 | 6,934,850 | 198,012 |
$(5,486,037) | |||||
Short Contract Positions | |||||
Aluminum LME * | (190) | 1/17/2024 | (10,546,032) | (11,169,625) | (623,593) |
Aluminum LME * | (189) | 3/20/2024 | (10,658,170) | (11,250,225) | (592,055) |
Aluminum LME * | (27) | 5/15/2024 | (1,499,373) | (1,628,269) | (128,896) |
Lead LME * | (46) | 1/17/2024 | (2,559,671) | (2,350,887) | 208,784 |
Lead LME * | (46) | 3/20/2024 | (2,507,320) | (2,383,375) | 123,945 |
Lead LME * | (6) | 5/15/2024 | (309,659) | (310,838) | (1,179) |
Nickel LME * | (45) | 1/17/2024 | (5,484,182) | (4,437,450) | 1,046,732 |
Nickel LME * | (43) | 3/20/2024 | (4,595,269) | (4,280,994) | 314,275 |
Nickel LME * | (6) | 5/15/2024 | (601,321) | (603,252) | (1,931) |
Zinc LME * | (102) | 1/17/2024 | (6,402,994) | (6,739,650) | (336,656) |
Zinc LME * | (101) | 3/20/2024 | (6,517,434) | (6,725,337) | (207,903) |
Zinc LME * | (15) | 5/15/2024 | (935,985) | (1,000,219) | (64,234) |
$(262,711) | |||||
$(5,748,748) |
* | London Metal Exchange (“LME”) futures contracts settle on their respective maturity date. See Note 2. |
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abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF
Shares or Principal Amount | Value | |||
SHORT-TERM INVESTMENTS—98.3% | ||||
MONEY MARKET FUNDS—6.2% | ||||
Invesco Government & Agency Portfolio, 4.73% (a) | 1,410,293 | $ 1,410,293 | ||
Total Money Market Funds | 1,410,293 | |||
U.S. TREASURIES—92.1% | ||||
U.S. Treasury Bills | ||||
5.29%, 01/02/2024 (b) | $ | 1,000,000 | 1,000,000 | |
5.33%, 01/04/2024 (b) | 1,000,000 | 999,710 | ||
5.28%, 01/09/2024 (b) | 1,000,000 | 998,981 | ||
5.34%, 01/11/2024 (b) | 1,000,000 | 998,695 | ||
5.28%, 01/16/2024 (b) | 1,000,000 | 997,957 | ||
5.31%, 01/18/2024 (b) | 1,000,000 | 997,655 | ||
5.27%, 01/23/2024 (b)(c) | 1,000,000 | 996,930 | ||
5.31%, 01/25/2024 (b) | 1,000,000 | 996,635 | ||
5.26%, 01/30/2024 (b) | 1,000,000 | 995,887 | ||
5.27%, 02/01/2024 (b)(c) | 1,000,000 | 995,610 | ||
5.28%, 02/06/2024 (b) | 1,000,000 | 994,872 | ||
5.27%, 02/08/2024 (b)(c) | 1,000,000 | 994,589 | ||
5.27%, 02/13/2024 (b) | 1,000,000 | 993,848 | ||
5.25%, 02/15/2024 (b) | 1,000,000 | 993,600 | ||
5.26%, 02/20/2024 (b) | 1,000,000 | 992,835 | ||
5.27%, 02/22/2024 (b)(c) | 1,000,000 | 992,573 | ||
5.24%, 02/29/2024 (b) | 1,000,000 | 991,527 | ||
5.24%, 03/07/2024 (b) | 1,000,000 | 990,609 | ||
5.22%, 03/14/2024 (b)(c) | 1,000,000 | 989,633 | ||
5.22%, 03/21/2024 (b) | 1,000,000 | 988,618 | ||
5.22%, 03/28/2024 (b) | 1,000,000 | 987,597 | ||
Total U.S. Treasuries | 20,888,361 | |||
Total Short-Term Investments | 22,298,654 | |||
Total Investments (Cost $22,295,369)—98.3% | 22,298,654 | |||
Other Assets in Excess of Liabilities—1.7% | 396,875 | |||
Net Assets—100.0% | $22,695,529 |
(a) | The rate shown is the 7 day yield as of December 31, 2023. |
(b) | The rate shown is the discount yield at the time of purchase. |
(c) | All or a portion of the security pledged as collateral for Futures Contracts, with a total collateral value of $4,670,231. |
Federal Tax Cost | $22,295,369 |
Unrealized Appreciation | $2,875,058 |
Unrealized Depreciation | (1,855,467) |
Net Unrealized Appreciation (Depreciation) | $1,019,591 |
20
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF (concluded)
At December 31, 2023, the Fund held the following futures contracts: |
Futures Contracts | Number of Contracts Long/(Short) | Expiration Date | Notional Amount | Fair Value | Unrealized Appreciation/ (Depreciation) |
Long Contract Positions | |||||
Aluminum LME * | 121 | 1/17/2024 | $6,722,951 | $7,113,288 | $390,337 |
Aluminum LME * | 120 | 3/20/2024 | 6,402,749 | 7,143,000 | 740,251 |
Copper | 83 | 3/26/2024 | 7,638,497 | 8,072,788 | 434,291 |
Lead LME * | 29 | 1/17/2024 | 1,529,446 | 1,482,081 | (47,365) |
Lead LME * | 28 | 3/20/2024 | 1,424,729 | 1,450,750 | 26,021 |
Nickel LME * | 28 | 1/17/2024 | 3,138,465 | 2,761,080 | (377,385) |
Nickel LME * | 28 | 3/20/2024 | 2,789,960 | 2,787,624 | (2,336) |
Zinc LME * | 65 | 1/17/2024 | 4,037,258 | 4,294,875 | 257,617 |
Zinc LME * | 65 | 3/20/2024 | 3,923,590 | 4,328,188 | 404,598 |
$1,826,029 | |||||
Short Contract Positions | |||||
Aluminum LME * | (121) | 1/17/2024 | (6,371,669) | (7,113,288) | (741,619) |
Aluminum LME * | (9) | 3/20/2024 | (512,344) | (535,725) | (23,381) |
Lead LME * | (29) | 1/17/2024 | (1,462,609) | (1,482,081) | (19,472) |
Lead LME * | (3) | 3/20/2024 | (154,938) | (155,438) | (500) |
Nickel LME * | (28) | 1/17/2024 | (2,763,586) | (2,761,080) | 2,506 |
Nickel LME * | (2) | 3/20/2024 | (203,872) | (199,116) | 4,756 |
Zinc LME * | (65) | 1/17/2024 | (3,905,742) | (4,294,875) | (389,133) |
Zinc LME * | (5) | 3/20/2024 | (317,186) | (332,938) | (15,752) |
$(1,182,595) | |||||
$643,434 |
* | London Metal Exchange (“LME”) futures contracts settle on their respective maturity date. See Note 2. |
21
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | |||
ASSETS: | |||||
Investments, at cost | $782,534,935 | $219,126,897 | $22,295,369 | ||
Investments, at value | 782,656,378 | 219,158,073 | 22,298,654 | ||
Cash | – | 10 | 4,595 | ||
Deposits at broker for futures contracts | 13,466,855 | 5,919,041 | – | ||
Due from broker | 76,139 | – | – | ||
Interest and dividends receivable | 193,019 | 58,437 | 9,475 | ||
Receivable for capital shares issued | 8,723,070 | – | – | ||
Unrealized appreciation on open futures contracts | 27,217,427 | 7,946,763 | 2,260,377 | ||
Total assets | 832,332,888 | 233,082,324 | 24,573,101 | ||
LIABILITIES: | |||||
Due to custodian | 71,499 | – | – | ||
Collateral due to broker | – | – | 237,136 | ||
Unrealized depreciation on open futures contracts | 25,320,033 | 13,695,511 | 1,616,943 | ||
Advisory fees payable | 528,517 | 177,852 | 23,073 | ||
Legal fees | 14,984 | 4,368 | 420 | ||
Total liabilities | 25,935,033 | 13,877,731 | 1,877,572 | ||
NET ASSETS | $806,397,855 | $219,204,593 | $22,695,529 | ||
NET ASSETS CONSIST OF: | |||||
Paid in capital | $818,503,496 | $224,277,709 | $21,707,637 | ||
Distributable earnings/(accumulated loss) | (12,105,641) | (5,073,116) | 987,892 | ||
NET ASSETS | $806,397,855 | $219,204,593 | $22,695,529 | ||
Shares (unlimited number of shares authorized, no par value) | 41,600,001 | 7,150,001 | 1,050,000 | ||
Net Asset Value, per share | $19.38 | $30.66 | $21.61 |
22
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | |||
INVESTMENT INCOME: | |||||
Interest income | $42,968,272 | $13,112,862 | $1,330,560 | ||
Total Income | 42,968,272 | 13,112,862 | 1,330,560 | ||
EXPENSES: | |||||
Advisory fee (See Note 4) | 2,602,685 | 913,469 | 135,294 | ||
Legal fees and expenses | 110,014 | 37,726 | 4,942 | ||
Total operating expenses before reimbursed/waived expenses | 2,712,699 | 951,195 | 140,236 | ||
Expenses waived and/or reimbursed by Advisor (see Note 4) | (466,738) | (158,952) | (33,600) | ||
Total Net Expenses after Waivers | 2,245,961 | 792,243 | 106,636 | ||
Net Investment Income | 40,722,311 | 12,320,619 | 1,223,924 | ||
NET REALIZED AND UNREALIZED GAIN (LOSS): | |||||
Realized loss on investment transactions | (29,973) | (337) | (167) | ||
Realized loss on futures contracts | (110,336,218) | (25,368,563) | (2,170,847) | ||
Net realized loss from investments and future transactions | (110,366,191) | (25,368,900) | (2,171,014) | ||
Net change in unrealized appreciation/(depreciation) on investment transactions | (81,687) | (34,327) | (1,924) | ||
Net change in unrealized appreciation/(depreciation) on futures contracts | (5,838,315) | (7,390,428) | (2,001,118) | ||
Net change in unrealized appreciation/(depreciation) from investments and futures contracts | (5,920,002) | (7,424,755) | (2,003,042) | ||
Net realized/unrealized gain/(loss) from investments and future transactions | (116,286,193) | (32,793,655) | (4,174,056) | ||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $(75,563,882) | $(20,473,036) | $(2,950,132) |
23
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | |||||||||
Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||
FROM INVESTMENT ACTIVITIES: | |||||||||||
OPERATIONS: | |||||||||||
Net investment income | $40,722,311 | $11,699,808 | $12,320,619 | $3,311,835 | $1,223,924 | $358,446 | |||||
Net realized gain/(loss) from investments and future transactions | (110,366,191) | 65,346,360 | (25,368,900) | 5,736,653 | (2,171,014) | (5,328,245) | |||||
Net change in unrealized appreciation/(depreciation) on investments and futures contracts | (5,920,002) | 2,657,524 | (7,424,755) | 847,610 | (2,003,042) | 2,118,353 | |||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | (75,563,882) | 79,703,692 | (20,473,036) | 9,896,098 | (2,950,132) | (2,851,446) | |||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Distributable earnings | (31,685,215) | (113,253,029) | (9,635,199) | (13,365,522) | (797,588) | (221,713) | |||||
Return of Capital | (140,888) | (55,111,943) | (94,578) | (412,358) | – | – | |||||
Change in net assets from shareholder distributions | (31,826,103) | (168,364,972) | (9,729,777) | (13,777,880) | (797,588) | (221,713) | |||||
CAPITAL TRANSACTIONS: (a) | |||||||||||
Proceeds from shares issued | 401,383,922 | 555,573,344 | 61,127,824 | 260,093,618 | 3,670,803 | 13,231,416 | |||||
Cost of shares redeemed | (361,337,240) | (232,975,305) | (90,111,350) | (65,474,285) | (8,144,538) | (6,276,650) | |||||
Change in net assets from capital transactions | 40,046,682 | 322,598,039 | (28,983,526) | 194,619,333 | (4,473,735) | 6,954,766 | |||||
Change in net assets | (67,343,303) | 233,936,759 | (59,186,339) | 190,737,551 | (8,221,455) | 3,881,607 | |||||
NET ASSETS: | |||||||||||
Beginning of year | 873,741,158 | 639,804,399 | 278,390,932 | 87,653,381 | 30,916,984 | 27,035,377 | |||||
End of year | $806,397,855 | $873,741,158 | $219,204,593 | $278,390,932 | $22,695,529 | $30,916,984 | |||||
SHARE TRANSACTIONS: | |||||||||||
Beginning of year | 39,750,001 | 27,900,001 | 8,050,001 | 2,850,001 | 1,250,000 | 1,050,000 | |||||
Issued | 19,300,000 | 20,450,000 | 1,850,000 | 7,050,000 | 150,000 | 450,000 | |||||
Redeemed | (17,450,000) | (8,600,000) | (2,750,000) | (1,850,000) | (350,000) | (250,000) | |||||
Shares outstanding, end of year | 41,600,001 | 39,750,001 | 7,150,001 | 8,050,001 | 1,050,000 | 1,250,000 |
(a) | Capital transactions may include transaction fees associated with Creation and Redemption transactions which occurred during the period. See Note9 to the Financial Statements. |
24
Selected Data For A Share Outstanding Throughout The Periods Indicated | |||||||||||||
Per Share Operating Performance | |||||||||||||
Investment Operations | Distributions | ||||||||||||
Net asset value, beginning of year | Net investment income (loss)(b) | Net realized and unrealized gain (loss) on investments | Total from investment operations | Net investment income | Tax return of Capital | Total distributions | |||||||
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | |||||||||||||
Year Ended December 31, 2023 | $21.98 | $0.99 | $(2.83) | $(1.84) | $(0.76) | $(–)(g) | $(0.76) | ||||||
Year Ended December 31, 2022 | 22.93 | 0.32 | 3.14 | 3.46 | (2.89) | (1.52) | (4.41) | ||||||
Year Ended December 31, 2021 | 21.77 | (0.05) | 5.68 | 5.63 | (4.47) | – | (4.47) | ||||||
Year Ended December 31, 2020 | 22.64 | 0.05 | (0.77)(h) | (0.72) | (0.15) | – | (0.15) | ||||||
Year Ended December 31, 2019 | 21.38 | 0.45 | 1.14 | 1.59 | (0.33) | – | (0.33) | ||||||
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | |||||||||||||
Year Ended December 31, 2023 | 34.58 | 1.56 | (4.10) | (2.54) | (1.37) | (0.01) | (1.38) | ||||||
Year Ended December 31, 2022 | 30.76 | 0.47 | 5.15 | 5.62 | (1.74) | (0.06) | (1.80) | ||||||
Year Ended December 31, 2021 | 25.20 | (0.07) | 8.18 | 8.11 | (2.55) | – | (2.55) | ||||||
Year Ended December 31, 2020 | 24.48 | 0.03 | 1.02 | 1.05 | (0.33) | – | (0.33) | ||||||
Year Ended December 31, 2019 | 23.10 | 0.46 | 1.30 | 1.76 | (0.38) | – | (0.38) | ||||||
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | |||||||||||||
Year Ended December 31, 2023 | 24.73 | 1.07 | (3.46) | (2.39) | (0.73) | – | (0.73) | ||||||
Year Ended December 31, 2022 | 25.75 | 0.29 | (1.13) | (0.84) | (0.18) | – | (0.18) | ||||||
Year Ended December 31, 2021 (i) | 25.00 | (0.02) | 1.17 | 1.15 | (0.40) | – | (0.40) | ||||||
(a) | Annualized for periods less than one year. |
(b) | Per share net investment income (loss) has been calculated using the average daily shares method. |
(c) | Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, if any, and redemption on the last day of the period at net asset value. This percentage is not an indication of the performance of a shareholder’s investment in the Fund based on market value due to differences between the market price of the shares and the net asset value per share of the Fund. |
(d) | Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, if any, and redemption on the last day of the period at market value. Market value is determined by the composite closing price. Composite closing security price is defined as the last reported sale price from any primary listing market (e.g., NYSE and NASDAQ) or participating regional exchanges or markets. The composite closing price is the last reported sale price from any of the eligible sources, regardless of volume and not an average price and may have occurred on a date prior to the close of the reporting period. Market value may be greater or less than net asset value, depending on the Fund’s closing price on the listing market. |
(e) | Not annualized for periods less than one year. |
(f) | Derivative instruments and instruments with a maturity of one year or less at the time of acquisition are excluded from the calculation of the portfolio turnover rate. If these instruments were included in the calculation, the Fund would have a higher portfolio turnover rate. In-Kind transactions are not included in the portfolio turnover. |
(g) | Less than $0.005 per share. |
(h) | The amount shown for a share outstanding throughout the period is not in accordance with the aggregate net realized and unrealized gain (loss) for that period because of the timing of sales and repurchases of the Fund shares in relation to fluctuating market value of the investments in the Fund. |
(i) | For the period from September 22, 2021 (commencement of operations) through December 31, 2021. |
26
Selected Data For A Share Outstanding Throughout The Periods Indicated | ||||||||||||||||
Per Share Operating Performance | Ratios/Supplemental Data | |||||||||||||||
Total Return | Ratios To Average Net Assets(a) | Supplemental Data | ||||||||||||||
Net asset value, end of year | Net asset value(c) | Market value (Unaudited)(d) | Expenses before expense reductions | Expenses net of waivers, if any | Net investment income (loss) before expense reductions | Net investment income (loss) net of waivers, if any | Net assets, end of year (000's) | Portfolio turnover rate(e)(f) | ||||||||
$19.38 | (8.35%) | (8.79%) | 0.32% | 0.26% | 4.71% | 4.77% | $806,398 | – | ||||||||
21.98 | 15.13% | 15.24% | 0.32% | 0.26% | 1.12% | 1.18% | 873,741 | – | ||||||||
22.93 | 26.27% | 25.85% | 0.30% | 0.25% | (0.25%) | (0.20%) | 639,804 | – | ||||||||
21.77 | (3.17%) | (2.77%) | 0.31% | 0.25% | 0.20% | 0.26% | 337,446 | – | ||||||||
22.64 | 7.47% | 7.06% | 0.30% | 0.25% | 1.94% | 2.00% | 176,591 | – | ||||||||
30.66 | (7.36%) | (7.59%) | 0.37% | 0.30% | 4.67% | 4.73% | 219,205 | – | ||||||||
34.58 | 18.33% | 18.43% | 0.37% | 0.30% | 1.20% | 1.27% | 278,391 | – | ||||||||
30.76 | 32.40% | 31.74% | 0.35% | 0.29% | (0.30%) | (0.24%) | 87,653 | – | ||||||||
25.20 | 4.29% | 4.79% | 0.35% | 0.29% | 0.06% | 0.12% | 11,339 | – | ||||||||
24.48 | 7.64% | 7.31% | 0.34% | 0.29% | 1.85% | 1.90% | 3,671 | – | ||||||||
21.61 | (9.61%) | (9.72%) | 0.54% | 0.41% | 4.55% | 4.68% | 22,696 | – | ||||||||
24.73 | (3.25%) | (3.30%) | 0.54% | 0.40% | 0.99% | 1.13% | 30,917 | – | ||||||||
25.75 | 4.66% | 4.83% | 0.47% | 0.39% | (0.44%) | (0.35%) | 27,035 | – | ||||||||
27
28
• | Level 1— Unadjusted quoted prices in active markets for identical assets on the measurement date that the Funds have the ability to access. |
• | Level 2— Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). |
29
• | Level 3— Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments). |
Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total | ||||
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | ||||||||
Assets | ||||||||
Investments in Securities | ||||||||
Short-Term Investments | $22,645,813 | $760,010,565 | $– | $782,656,378 | ||||
Total Investments | $22,645,813 | $760,010,565 | $– | $782,656,378 | ||||
Other Financial Instruments | ||||||||
Futures Contracts | 27,217,427 | – | – | 27,217,427 | ||||
Total Investment Assets | $49,863,240 | $760,010,565 | $– | $809,873,805 | ||||
Liabilities | ||||||||
Other Financial Instruments | ||||||||
Futures Contracts | $(25,320,033) | $– | $– | $(25,320,033) | ||||
Total Investment Liabilities | $(25,320,033) | $– | $– | $(25,320,033) | ||||
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | ||||||||
Assets | ||||||||
Investments in Securities | ||||||||
Short-Term Investments | $16,150,075 | $203,007,998 | $– | $219,158,073 | ||||
Total Investments | $16,150,075 | $203,007,998 | $– | $219,158,073 | ||||
Other Financial Instruments | ||||||||
Futures Contracts | 7,946,763 | – | – | 7,946,763 | ||||
Total Investment Assets | $24,096,838 | $203,007,998 | $– | $227,104,836 | ||||
Liabilities | ||||||||
Other Financial Instruments | ||||||||
Futures Contracts | $(13,695,511) | $– | $– | $(13,695,511) | ||||
Total Investment Liabilities | $(13,695,511) | $– | $– | $(13,695,511) | ||||
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | ||||||||
Assets | ||||||||
Investments in Securities | ||||||||
Short-Term Investments | $1,410,293 | $20,888,361 | $– | $22,298,654 | ||||
Total Investments | $1,410,293 | $20,888,361 | $– | $22,298,654 | ||||
Other Financial Instruments | ||||||||
Futures Contracts | 2,260,377 | – | – | 2,260,377 | ||||
Total Investment Assets | $3,670,670 | $20,888,361 | $– | $24,559,031 | ||||
Liabilities | ||||||||
Other Financial Instruments |
30
Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total | ||||
Futures Contracts | $(1,616,943) | $– | $– | $(1,616,943) | ||||
Total Investment Liabilities | $(1,616,943) | $– | $– | $(1,616,943) |
31
Derivative | abrdn Bloomberg All Commodity Strategy K-1 Free ETF | abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | |||
Long Futures Contracts | $919,044,005 | $318,666,109 | $36,008,589 | |||
Short Futures Contracts | $(49,577,792) | $(55,692,539) | $(12,496,247) |
32
Risk Exposure Category | |||||||||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Other | Total | |||||||
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | |||||||||||||
Assets: | |||||||||||||
Unrealized appreciation on: | |||||||||||||
Futures Contracts | $– | $– | $– | $– | $27,217,427 | $– | $27,217,427 | ||||||
Total | $– | $– | $– | $– | $27,217,427 | $– | $27,217,427 | ||||||
Liabilities: | |||||||||||||
Unrealized depreciation on: | |||||||||||||
Futures Contracts | $– | $– | $– | $– | $25,320,033 | $– | $25,320,033 | ||||||
Total | $– | $– | $– | $– | $25,320,033 | $– | $25,320,033 |
Risk Exposure Category | |||||||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | ||||||
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | |||||||||||
Realized Gain/(Loss) on Derivatives Recognized as a Result of Operations: | |||||||||||
Realized gain/(loss) on: | |||||||||||
Futures Contracts | $– | $– | $– | $– | $(110,336,218) | $(110,336,218) | |||||
Total | $– | $– | $– | $– | $(110,336,218) | $(110,336,218) | |||||
Net Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized as a Result of Operations: | |||||||||||
Net change in unrealized appreciation/(depreciation) of: | |||||||||||
Futures Contracts | $– | $– | $– | $– | $(5,838,315) | $(5,838,315) | |||||
Total | $– | $– | $– | $– | $(5,838,315) | $(5,838,315) |
Risk Exposure Category | |||||||||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Other | Total | |||||||
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | |||||||||||||
Assets: | |||||||||||||
Unrealized appreciation on: | |||||||||||||
Futures Contracts | $– | $– | $– | $– | $7,946,763 | $– | $7,946,763 | ||||||
Total | $– | $– | $– | $– | $7,946,763 | $– | $7,946,763 | ||||||
Liabilities: | |||||||||||||
Unrealized depreciation on: | |||||||||||||
Futures Contracts | $– | $– | $– | $– | $13,695,511 | $– | $13,695,511 | ||||||
Total | $– | $– | $– | $– | $13,695,511 | $– | $13,695,511 |
33
Risk Exposure Category | |||||||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | ||||||
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | |||||||||||
Realized Gain/(Loss) on Derivatives Recognized as a Result of Operations: | |||||||||||
Realized gain/(loss) on: | |||||||||||
Futures Contracts | $– | $– | $– | $– | $(25,368,563) | $(25,368,563) | |||||
Total | $– | $– | $– | $– | $(25,368,563) | $(25,368,563) | |||||
Net Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized as a Result of Operations: | |||||||||||
Net change in unrealized appreciation/(depreciation) of: | |||||||||||
Futures Contracts | $– | $– | $– | $– | $(7,390,428) | $(7,390,428) | |||||
Total | $– | $– | $– | $– | $(7,390,428) | $(7,390,428) |
Risk Exposure Category | |||||||||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Other | Total | |||||||
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | |||||||||||||
Assets: | |||||||||||||
Unrealized appreciation on: | |||||||||||||
Futures Contracts | $– | $– | $– | $– | $2,260,377 | $– | $2,260,377 | ||||||
Total | $– | $– | $– | $– | $2,260,377 | $– | $2,260,377 | ||||||
Liabilities: | |||||||||||||
Unrealized depreciation on: | |||||||||||||
Futures Contracts | $– | $– | $– | $– | $1,616,943 | $– | $1,616,943 | ||||||
Total | $– | $– | $– | $– | $1,616,943 | $– | $1,616,943 |
Risk Exposure Category | |||||||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | ||||||
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | |||||||||||
Realized Gain/(Loss) on Derivatives Recognized as a Result of Operations: | |||||||||||
Realized gain/(loss) on: | |||||||||||
Futures Contracts | $– | $– | $– | $– | $(2,170,847) | $(2,170,847) | |||||
Total | $– | $– | $– | $– | $(2,170,847) | $(2,170,847) |
34
Risk Exposure Category | |||||||||||
Interest Rate Contracts | Foreign Currency Contracts | Credit Contracts | Equity Contracts | Commodity Contracts | Total | ||||||
Net Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized as a Result of Operations: | |||||||||||
Net change in unrealized appreciation/(depreciation) of: | |||||||||||
Futures Contracts | $– | $– | $– | $– | $(2,001,118) | $(2,001,118) | |||||
Total | $– | $– | $– | $– | $(2,001,118) | $(2,001,118) |
35
Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||||
Distributions paid from ordinary income | Distributions paid from net long term capital gains | Tax return of captial | Total Distributions | Distributions paid from ordinary income | Distributions paid from net long term capital gains | Tax return of captial | Total Distributions | |||||||||
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | $31,685,215 | $– | $140,888 | $31,826,103 | $113,253,029 | $– | $55,111,943 | $168,364,972 | ||||||||
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | 9,635,199 | – | 94,578 | 9,729,777 | 13,365,522 | – | 412,358 | 13,777,880 | ||||||||
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | 797,588 | – | – | 797,588 | 221,713 | – | – | 221,713 | ||||||||
Fund | Undistributed Ordinary Income | Undistributed Long-Term Capital Gains | Accumulated Capital and Other Losses | Unrealized Appreciation/ (Depreciation) | ||||
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | $– | $– | $(418,504) | $(11,687,137) | ||||
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | – | – | (129,565) | (4,943,551) | ||||
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | 1,527 | – | (33,227) | 1,019,592 |
Fund | Paid-in Capital | Distributable Earnings/ (Accumulated Loss) | ||
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | $(96,611,321) | $96,611,321 | ||
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | (21,130,964) | 21,130,964 | ||
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | (2,114,420) | 2,114,420 |
Fund | Short-Term | Total | ||
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | $418,504 | $418,504 | ||
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | 129,565 | 129,565 | ||
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | 33,227 | 33,227 |
36
37
Fund | Annual Rate | Minimum Annual Fee | ||
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | 0.055% on first $250 million | $18,000 | ||
0.045% on next $250 million | ||||
0.04% on assets over $500 million | ||||
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | 0.04% | $18,000 | ||
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | 0.04% | $18,000 |
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Fund | Transaction Fee* | Maximun Transaction Fee** | ||
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | $100 | 2% | ||
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | 100 | 2 | ||
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | 100 | 2 |
* | An additional charge of up to three (3) times the standard transaction fee may be charged to the extent a transaction is outside of the clearing process. |
** | In addition to the transaction fees listed above, a Fund may charge an additional variable fee for creations and redemptions in cash to offset brokerage and impact expenses associated with the cash transaction. The variable transaction fee will be calculated based on historical transaction cost data and the Advisor’s view of current market conditions; however, the actual variable fee charged for a given transaction may be lower or higher than the trading expenses incurred by a Fund with respect to that transaction. |
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• | global or regional political, economic or financial events and situations, particularly war, terrorism, expropriation and other activities which might lead to disruptions to supply from countries that are major commodity producers; |
• | investment trading, hedging or other activities conducted by large trading houses, producers, users, hedge funds, commodities funds, governments or other speculators which could impact global supply or demand; |
• | the weather, which can affect short-term demand or supply for some commodities; |
• | the future rates of economic activity and inflation, particularly in countries which are major consumers of commodities; |
• | major discoveries of sources of commodities; and |
• | disruptions to the infrastructure or means by which commodities are produced, distributed and stored, which are capable of causing substantial price movements in a short period of time. |
• | commodity prices generally; |
• | trading activities on the exchanges upon which they trade, which might be impacted by the liquidity in the futures contracts; and |
• | trading activity specific to particular futures contract(s) and maturities. |
• | Agricultural Sector Investment Risk. The daily performance of the spot price of certain agricultural commodities, including coffee, corn, cotton, lean hogs, live cattle, soybean meal, soybean oil, soybeans, sugar, wheat (Chicago and KC hard red winter), has a direct impact on Fund performance. Investments in the agriculture sector may be highly volatile and the market values of such commodities can change quickly and unpredictably due to a number of factors, such as the supply of, and demand for, each commodity, the strength of the domestic and global economy, legislative or regulatory developments relating to food safety, as well as other significant events, including public health, political, legal, financial, accounting and tax matters that are beyond the |
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Fund’s control. In addition, increased competition caused by economic recession, labor difficulties and changing consumer tastes and spending can impact the demand for agricultural products and, in turn, the value of such investments. | |
• | Energy Sector Investment Risk. The daily performance of the spot price of certain energy-related commodities, including crude oil (West Texas Intermediate, or WTI, and Brent), low sulfur gas oil, natural gas, nickel, RBOB (reformulated blendstock for oxygenate blending) gasoline and ULS (ultra low sulfur) diesel, has a direct impact on Fund performance. Energy commodities’ market values are significantly impacted by a number of factors, such as the supply of, and demand for, each commodity, the strength of the domestic and global economy, significant world events, capital expenditures on exploration and production, energy conservation efforts, government regulation and subsidization and technological advances. Investments in the energy sector may be cyclical and/or highly volatile and subject to swift price fluctuations. In addition, significant declines in the price of oil may contribute to significant market volatility, which may adversely affect the Fund’s performance. The energy sector has recently experienced significant volatility due to dramatic changes in the prices of energy commodities, and it is possible that such volatility will continue in the future. |
• | Metals Sector Investment Risk. The daily performance of the spot price of certain industrial and precious metals, including aluminum, copper, gold, lead, nickel, silver and zinc, has a direct impact on Fund performance. Investments in metals may be highly volatile and the market values of such commodities can change quickly and unpredictably due to a number of factors, such as the supply of, and demand for, each metal, the strength of the domestic and global economy, international monetary policy, environmental or labor costs, as well as other significant events, including public health, political, legal, financial, accounting and tax matters that are beyond the Fund’s control. The United States or foreign governments may pass laws or regulations limiting metal investments for strategic or other policy reasons. Further, the principal supplies of metal industries may be concentrated in a small number of countries and regions. |
As of the date of this report, the Bloomberg Industrial Metals Subindex ("BCOMIN"), the index that the abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF seeks to track, consists of 5 commodities futures contracts with respect to the following industrial metals: aluminum, copper, lead, nickel and zinc. Consequently, in addition to factors affecting commodities generally, the BCOMIN may be subject to a number of additional factors specific to industrial metals, and in particular aluminum, copper, lead, nickel and zinc, that might cause price volatility. These may include, among others: |
• | changes in the level of industrial activity using industrial metals, and in particular aluminum, copper, lead, nickel and zinc, including the availability of substitutes such as man-made or synthetic substitutes; |
• | disruptions in the supply chain, from mining to storage to smelting or refining; |
• | adjustments to inventory; |
• | variations in production costs, including storage, labor and energy costs; |
• | costs associated with regulatory compliance, including environmental regulations; and |
• | changes in industrial, government and consumer demand, both in individual consuming nations and internationally. |
41
• | Credit Risk. Credit risk refers to the possibility that the issuer of a security will not be able to make principal and/or interest payments when due and is broadly gauged by the credit ratings of the securities in which a Fund invests. However, ratings are only the opinions of rating agencies and are not guarantees of the quality of the securities. In addition, the depth and liquidity of the market for a fixed-income security may affect its credit risk. Credit risk of a security may change over its life and rated securities are often reviewed and may be subject to downgrade by a rating agency. A Fund purchasing bonds faces the risk that the creditworthiness of an issuer may decline, or the market’s perception of an issuer’s creditworthiness may decline, causing the value of the bonds to decline. In addition, an issuer may not be able to make timely payments on the interest and/or principal on the bonds it has issued. |
• | Interest Rate Risk. Interest rates have an effect on the value of a Fund’s fixed income investments because the value of those investments will vary as interest rates fluctuate. Generally, fixed-income securities will decrease in value when interest rates rise and when interest rates decline, the value of fixed-income securities can be expected to rise. A Fund may be subject to a greater risk of rising interest rates due to the effect of recent and potential government fiscal policy initiatives and resulting market reaction to those initiatives. In periods of market volatility, the market values of fixed-income securities may be more sensitive to changes in interest rates. In addition, a Fund’s income may decline due to falling interest rates or other factors. Interest rate risk is generally lower for shorter-term investments and higher for longer-term investments. For example, the price of a security with a ten-year duration would be expected to drop by approximately 10% in response to a 1% increase in interest rates. |
• | Inflation Risk. Inflation risk is the risk that prices of existing fixed-rate debt securities will decline due to inflation or the threat of inflation. The income produced by these securities is worth less when prices for goods and services rise. To compensate for this loss of purchasing power, the securities trade at lower prices. Inflation also reduces the purchasing power of any income you receive from a Fund. |
• | Liquidity Risk. A Fund may make investments that are, or may become, less liquid due to various factors, including general market conditions or conditions impacting the issuer of, or counterparty to, the investment. These investments may be more difficult to value or sell, particularly in times of market turmoil, and there may be fewer trading opportunities available for the investments. |
42
Less liquid investments may have higher risks than more liquid investments. These risks may be magnified as interest rates rise or in other circumstances. If a Fund is forced to sell a less liquid investment to fund redemptions or to raise cash, it may be forced to sell the investment at a loss or for less than its fair value. | |
• | Extension Risk. Extension risk is the risk that principal repayments will not occur as quickly as anticipated, causing the expected maturity of a security to increase. Rapidly rising interest rates may cause prepayments to occur more slowly than expected, thereby lengthening the maturity of the securities held by the Fund and making their prices more sensitive to rate changes and more volatile. |
• | Prepayment Risk. As interest rates decline, debt issuers may repay or refinance their loans or obligations earlier than anticipated. This forces the Fund to reinvest the proceeds from the principal prepayments at lower rates, which reduces the Fund’s income. |
43
44
45
46
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Fund Name | Consolidated Statements of Operations | Consolidated Statements of Changes in Net Assets | Consolidated Financial Highlights |
abrdn Bloomberg All Commodity Strategy K-1 Free ETF and abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | For the year ended December 31, 2023 | For the years ended December 31, 2023 and 2022 | For the years ended December 31, 2023, 2022, 2021, 2020, and 2019 |
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | For the year ended December 31, 2023 | For the years ended December 31, 2023 and 2022 | For the years ended December 31, 2023 and 2022 and for the period from September 22, 2021 (commencement of operations) through December 31, 2021 |
Milwaukee, Wisconsin
February 29, 2024
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Fund | Percentage | |
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | 94.20% | |
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | 95.48 | |
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | 87.73 |
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Beginning Account Value | Ending Account Value 12/31/23 | Expenses Paid During the Period* | Annualized Expense Ratio During Period | ||||
abrdn Bloomberg All Commodity Strategy K-1 Free ETF | |||||||
Actual | $1,000.00 | $1,000.00 | $1.31 | 0.26% | |||
Hypothetical | $1,000.00 | $1,023.90 | $1.33 | 0.26% | |||
abrdn Bloomberg All Commodity Longer Dated Strategy K-1 Free ETF | |||||||
Actual | $1,000.00 | $1,000.00 | $1.56 | 0.31% | |||
Hypothetical | $1,000.00 | $1,023.64 | $1.58 | 0.31% | |||
abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF | |||||||
Actual | $1,000.00 | $1,000.00 | $2.12 | 0.42% | |||
Hypothetical | $1,000.00 | $1,023.09 | $2.14 | 0.42% |
* | Expenses are equal to the average account value multiplied by the Fund’s annualized expense ratio multiplied by 184/365 (the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year). |
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Name, Address and Year of Birth * | Position(s) Held with the Trust, Term of Office and Length of Time Served | Principal Occupation(s) During at least the Past Five Years | Number of Registered Investment Companies ("Registrants") Consisting of Investment Funds ("Funds") in Fund Complex Overseen by Trustee** | Other Directorships Held by Trustee*** | ||||
Independent Trustees | ||||||||
Rose DiMartino c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1952 | Trustee (since 2022) | Retired since 2019. Partner (1991-2017) and Senior Counsel (2017-2019) at the law firm of Willkie Farr & Gallagher LLP. | 5 Registrants consisting of 7 Portfolios | None | ||||
Jim O'Connor c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1976 | Trustee (since 2023) | Currently, Head of Americas for abrdn Inc. since 2023. Previously he served as Chief Operating Officer – Americas for abrdn Inc. Mr. O’Connor joined abrdn Inc. as US Counsel in 2010 as U.S. Counsel. | 1 Registrant consisting of 3 Portfolios | None | ||||
John Sievwright c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1955 | Trustee (since 2018) | Mr. Sievwright is a Non-Executive Director of Burford Capital Ltd (since May 2020) (provider of legal, finance, complex strategies, post-settlement finance and asset management services and products) and Revolut Limited, a UK-based digital banking firm (since August 2021); and Chair of the Board of LoopFX (fin-tech start-up operating in large foreign currency institutional transactions) (since Sept. 2022). | 6 Registrants consisting of 8 Portfolios | Non-Executive Director of Burford Capital Ltd (provider of legal finance, complex strategies, post-settlement finance and asset management services and products) since May 2020. | ||||
William Thomas c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1962 | Chairman (since 2022) | Mr. Thomas is the CEO/President of Wedgewood Partners (August 2015–Present). | 1 Registrant consisting of 3 Portfolios | None |
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* | Each Trustee holds office for an indefinite term until his successor is elected and qualified. |
** | As of the most recent fiscal year end, the Fund Complex has a total of 18 Registrants with each Board member serving on the Boards of the number of Registrants listed. Each Registrant in the Fund Complex has one Portfolio except for two Registrants that are open-end funds, abrdn Funds and abrdn ETFs, which each have multiple Portfolios. The Registrants in the Fund Complex are as follows: abrdn Asia-Pacific Income Fund, Inc., abrdn Global Income Fund, Inc., abrdn Australia Equity Fund, Inc., abrdn Emerging Markets Equity Income Fund, Inc., The India Fund, Inc., abrdn Japan Equity Fund, Inc., abrdn Income Credit Strategies Fund, abrdn Global Dynamic Dividend Fund, abrdn Global Premier Properties Fund, abrdn Total Dynamic Dividend Fund, abrdn Global Infrastructure Income Fund, abrdn National Municipal Income Fund, abrdn Healthcare Investors, abrdn Life Sciences Investors, abrdn Healthcare Opportunities Fund, abrdn World Healthcare Fund, abrdn Funds (19 Portfolios), and abrdn ETFs (3 Portfolios). |
*** | Directorships (excluding Fund Complex) held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or (3) any company subject to the requirements of Section 15(d) of the Exchange Act. |
Name, Address and Year of Birth | Position(s) Held with the Fund | Term of Office* and Length of Time Served | Principal Occupation(s) During at least the Past Five Years | |||
Katherine Corey ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1985 | Vice President | Since 2023 | Currently, Senior Legal Counsel, Product Governance US for abrdn Inc. Ms. Corey joined abrdn Inc. as U.S. Counsel in 2013. | |||
Steven Dunn ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1969 | Vice President | Since 2018 | Currently, Head of Exchange-traded Funds for abrdn Inc. | |||
Sharon Ferrari ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1977 | Vice President | Since 2022 | Currently, Director, Product Management for abrdn Inc. Ms. Ferrari joined abrdn Inc. as a Senior Fund Administrator in 2008. | |||
Katie Gebauer ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1986 | Chief Compliance Officer and Vice President | Since 2023 | Currently, Chief Compliance Officer—ETFs and serves as the Chief Compliance Officer for abrdn ETFs Advisors LLC. Ms. Gebauer joined abrdn Inc. in 2014. | |||
Alan Goodson ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1974 | President | President (2022 – present), Previously, Vice President (2018 – 2022) | Currently, Executive Director and Head of Product & Client Solutions – Americas for abrdn Inc., overseeing Product Management & Governance, Product Development and Client Solutions for registered and unregistered investment companies in the U.S., Brazil and Canada. Mr. Goodson is Director and Vice President of abrdn Inc. and joined abrdn Inc. in 2000. | |||
Heather Hasson ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1982 | Vice President | Since 2022 | Currently, Senior Product Solutions and Implementation Manager, Product Governance US for abrdn Inc. Ms. Hasson joined the company in November 2006. |
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Name, Address and Year of Birth | Position(s) Held with the Fund | Term of Office* and Length of Time Served | Principal Occupation(s) During at least the Past Five Years | |||
Robert Hepp ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1986 | Vice President | Since 2022 | Currently, Senior Product Governance Manager – US for abrdn Inc. Mr. Hepp joined abrdn Inc. as a Senior Paralegal in 2016. | |||
Megan Kennedy ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1974 | Secretary and Vice President | Since 2018 | Currently, Senior Director, Product Governance for abrdn Inc. Ms. Kennedy joined abrdn Inc. in 2005. | |||
Andrew Kim ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1983 | Vice President | Vice President (2022 – present), Previously, Assistant Secretary (2020 – 2022) | Currently, Senior Product Governance Manager – US for abrdn Inc. Mr. Kim joined abrdn Inc. as a Product Manager in 2013. | |||
Brian Kordeck ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1978 | Chief Financial Officer and Treasurer | Chief Financial Officer and Treasurer (2023 to present), Previously, Assistant Treasurer (2018-2022) | Currently, Senior Product Manager – US for abrdn Inc. Mr. Kordeck joined abrdn Inc. as a Senior Fund Administrator in 2013. | |||
Michael Marisco ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1980 | Vice President | Since 2022 | Currently, Senior Product Manager – US for abrdn Inc. Mr. Marsico joined abrdn Inc. as a Fund Administrator in 2014. | |||
Adam Rezak ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1969 | Vice President | Since 2014 | Currently, Director of US ETF Operations for abrdn Inc. Previously, Chief Compliance Officer of ETF Securities Advisors LLC, since July 2014. | |||
Lucia Sitar ** c\o abrdn Inc. 1900 Market Street Suite 200 Philadelphia, PA 19103 Year of Birth: 1971 | Vice President | Since 2018 | Currently, Vice President and Head of Product Management and Governance for abrdn Inc. since 2020. Previously, Ms. Sitar was Managing U.S. Counsel for abrdn Inc. She joined abrdn Inc. as U.S. Counsel in 2007. |
* | Elected by and serves at the pleasure of the Board with no set term. |
** | Each officer may hold officer position(s) in one or more other funds which are part of the Fund Complex. |
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Denver, Colorado 80203
Distributor: ALPS Distributors, Inc.
Item 2. Code of Ethics.
(a) | As of the end of the period, December 31, 2023, the Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or a third party (the “Code of Ethics”). During the period covered by this report, the Registrant adopted a new Code of Ethics for consistency with the Code of Ethics adopted by other investment companies managed by the Registrant’s investment adviser or its affiliates, a copy of which is filed as an exhibit to this Form N-CSR. The Registrant has not granted any waivers, including an implicit waiver, from any provisions of its Code of Ethics during the period covered by this report. |
Item 3. Audit Committee Financial Expert.
The Registrant’s Board of Trustees has determined that the Registrant has at least two “audit committee financial experts” (as defined in Item 3 of Form N-CSR), serving on its audit committee. John Sievwright and William M. Thomas are the “audit committee financial experts” and each is “independent” (as each term is defined in Item 3 of Form N-CSR).
Under applicable securities laws and regulations, a person who is determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for purposes of Section 11 of the Securities Act of 1933, as amended, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liability that are greater than the duties, obligations, and liability imposed on such person as a member of the Registrant’s Audit Committee and Board of Trustees in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations or liability of any other member of the Registrant’s Audit Committee or Board of Trustees.
Item 4. Principal Accountant Fees and Services.
(a) – (d) Below is a table reflecting the fee information requested in Items 4(a) through (d):
Fiscal Year Ended | (a) Audit Fees1 | (b) Audit-Related Fees2 | (c) Tax Fees3 | (d) All Other Fees4 |
December 31, 2023 | $75,000 | $0 | $0 | $0 |
Percentage approved pursuant to pre-approval exception5 | 0% | 0% | 0% | 0% |
December 31, 2022 | $66,700 | $0 | $0 | $0 |
Percentage approved pursuant to pre-approval exception5 | 0% | 0% | 0% | 0% |
1 “Audit Fees” are the aggregate fees billed for professional services for the audit of the Registrant’s annual financial statements and services provided in connection with statutory and regulatory filings or engagements. These services include the audits of the financial statements of the Registrant, issuance of consents and assistance with review of documents filed with the SEC.
2 “Audit Related Fees” are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements that are not reported under “Audit Fees”.
3 “Tax Fees” are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. These fees include: federal and state income tax returns, review of excise tax distribution calculations and federal excise tax return.
4 “All Other Fees” are the aggregate fees billed for products and services other than “Audit Fees”, “Audit-Related Fees” and “Tax Fees”.
5 Pre-approval exception under Rule 2-01 of Regulation S-X. The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee’s attention, and the Committee (or its delegate) approves the services before the audit is completed.
(e)(1) | The Registrant’s Audit Committee (the “Committee”) has adopted a Charter that provides that the Committee shall annually select, retain or terminate, and recommend to the Independent Directors for their ratification, the selection, retention or termination, the Registrant’s independent auditor and, in connection therewith, to evaluate the terms of the engagement (including compensation of the independent auditor) and the qualifications and independence of the independent auditor, including whether the independent auditor provides any consulting, auditing or tax services to the Registrant’s investment adviser (the “Adviser”) or any sub-adviser, and to receive the independent auditor’s specific representations as to their independence, delineating all relationships that may affect the independent auditor’s independence, including the disclosures required by PCAOB Rule 3526 or any other applicable auditing standard. PCAOB Rule 3526 requires that, at least annually, the auditor: (1) disclose to the Committee in writing all relationships between the auditor and its related entities and the Registrant and its related entities that in the auditor’s professional judgment may reasonably be thought to bear on independence; (2) confirm in the letter that, in its professional judgment, it is independent of the Registrant within the meaning of the Securities Acts administered by the SEC; and (3) discuss the auditor’s independence with the audit committee. The Committee is responsible for actively engaging in a dialogue with the independent auditor with respect to any disclosed relationships or services that may impact the objectivity and independence of the independent auditor and for taking, or recommending that the full Board take, appropriate action to oversee the independence of the independent auditor. The Committee Charter also provides that the Committee shall review in advance, and consider approval of, any and all proposals by Management or the Adviser that the Registrant, the Adviser or their affiliated persons, employ the independent auditor to render “permissible non-audit services” to the Registrant and to consider whether such services are consistent with the independent auditor’s independence. “Permissible non-audit services” include any professional services, including tax services, provided to the Registrant by the independent auditor, other than those provided to the Registrant in connection with an audit or a review of the financial statements of the Registrant. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Registrant; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the PCAOB determines, by regulation, is impermissible. Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Registrant constitutes not more than 5% of the total amount of revenues paid by the Registrant to its auditor during the fiscal year in which the permissible non-audit services are provided; (ii) the permissible non-audit services were not recognized by the Registrant at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee or its Delegate(s) prior to the completion of the audit. The Committee may delegate to one or more of its members (“Delegates”) authority to pre-approve permissible non-audit services to be provided to the Registrant. Any pre-approval determination of a Delegate shall be presented to the full Committee at its next meeting. Any pre-approval determination of a Delegate shall be presented to the full Committee at its next meeting. Pursuant to this authority, the Registrant’s Committee delegates to the Committee Chair, subject to subsequent ratification by the full Committee, up to a maximum amount of $25,000, which includes any professional services, including tax services, provided to the Registrant by its independent registered public accounting firm other than those provided to the Registrant in connection with an audit or a review of the financial statements of the Registrant. The Committee shall communicate any pre-approval made by it or a Delegate to the Adviser, who will ensure that the appropriate disclosure is made in the Registrant’s periodic reports required by Section 30 of the Investment Company Act of 1940, as amended, and other documents as required under the federal securities laws. |
(e)(2) | None of the services described in each of paragraphs (b) through (d) of this Item involved a waiver of the pre-approval requirement by the Audit Committee pursuant to Rule 2-01 (c)(7)(i)(C) of Regulation S-X. |
(f) | Not Applicable. |
(g) | Non-Audit Fees
The following table shows the amount of fees that Cohen & Company, Ltd., the Funds’ independent registered public accounting firm, billed during the last two fiscal years for non-audit services to the Registrant, and to the Registrant’s investment adviser (the “Adviser”) (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Funds (“Affiliated Fund Service Provider”): |
Fiscal Year Ended | Total Non-Audit Fees Billed to Funds | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (engagements related directly to the operations and financial reporting of the Funsd) | Total Non-Audit Fees billed to Adviser and Affiliated Fund Service Providers (all other engagements) | Total | ||||||||||||
December 31, 2023 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
December 31, 2022 | $ | 0 | $ | 0 | $ | 0 | $ | 0 |
“Non-Audit Fees billed to Funds” for both fiscal years represent “Tax Fees” and “All Other Fees” billed to Funds in their respective amounts from the previous table.
(h) | Not applicable. |
(i) | Not applicable. |
(j) | Not applicable. |
Item 5. Audit Committee of Listed Registrants.
(a) | The Registrant is an issuer as defined in Section 10A-3 of the Securities Exchange Act of 1934 and has a separately-designated standing Audit Committee in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. All of the Board’s independent Trustees, Rose DiMartino, William M. Thomas and John Sievwright are members of the Audit Committee. |
(b) | Not Applicable. |
Item 6. Investments
(a) | Schedule I – Investments in Securities of Unaffiliated Issuers |
The complete schedule of investments is included in the report to shareholders in Item 1 of this Form N-CSR.
(b) | Securities Divested of in accordance with Section 13(c) of the Investment Company Act of 1940. |
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. Controls and Procedures.
(a) | The Registrant’s principal executive officer and principal financial officer, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing date of this report. |
(b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a - 3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits. Recovery of Erroneously Awarded Compensation
Not applicable.
Item 14. Exhibits.
(a)(1) | Code of Ethics of the Registrant for the period covered by this report as required pursuant to Item 2 of this Form N-CSR is attached hereto. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
(a)(3) | Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act – Not applicable. |
(a)(4) | Change in the registrant’s independent public accountant – Not applicable. |
(b) | Certification required by Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
abrdn ETFs
By:
/s/ Alan Goodson |
Alan Goodson
President
March 11, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By:
/s/ Alan Goodson |
Alan Goodson
President
March 11, 2024
By:
/s/ Brian Kordeck |
Brian Kordeck
Treasurer and Principal Financial Officer
March 11, 2024