LEGG MASONSMALL-CAP QUALITY VALUE ETF
Schedule of investments (unaudited) | October 31, 2019 |
SECURITY | SHARES | VALUE | ||||||
COMMON STOCKS - 99.5% | ||||||||
COMMUNICATION SERVICES - 5.0% | ||||||||
Diversified Telecommunication Services - 1.2% | ||||||||
Cogent Communications Holdings Inc. | 1,048 | $ | 61,455 | |||||
Frontier Communications Corp. | 92,436 | 84,117 | * | |||||
|
| |||||||
Total Diversified Telecommunication Services | 145,572 | |||||||
|
| |||||||
Entertainment - 0.3% | ||||||||
Sciplay Corp., Class A Shares | 3,226 | 31,196 | * | |||||
|
| |||||||
Interactive Media & Services - 0.9% | ||||||||
Cars.com Inc. | 6,484 | 73,334 | * | |||||
Eventbrite Inc., Class A Shares | 2,185 | 39,286 | * | |||||
|
| |||||||
Total Interactive Media & Services | 112,620 | |||||||
|
| |||||||
Media - 2.6% | ||||||||
AMC Networks Inc., Class A Shares | 1,364 | 59,402 | * | |||||
Gannett Co. Inc. | 6,653 | 72,185 | ||||||
Lee Enterprises Inc. | 19,263 | 34,866 | * | |||||
MSG Networks Inc., Class A Shares | 2,864 | 46,425 | * | |||||
National CineMedia Inc. | 8,123 | 68,193 | ||||||
Xcel Brands Inc. | 13,782 | 23,705 | * | |||||
|
| |||||||
Total Media | 304,776 | |||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES | 594,164 | |||||||
|
| |||||||
CONSUMER DISCRETIONARY - 13.7% | ||||||||
Auto Components - 0.4% | ||||||||
Superior Industries International Inc. | 16,894 | 43,924 | ||||||
|
| |||||||
Distributors - 0.7% | ||||||||
Core-Mark Holding Co. Inc. | 2,652 | 80,939 | ||||||
|
| |||||||
Diversified Consumer Services - 1.1% | ||||||||
American Public Education Inc. | 1,638 | 35,577 | * | |||||
K12 Inc. | 1,935 | 38,294 | * | |||||
WW International Inc. | 1,590 | 55,443 | * | |||||
|
| |||||||
Total Diversified Consumer Services | 129,314 | |||||||
|
| |||||||
Hotels, Restaurants & Leisure - 1.9% | ||||||||
Brinker International Inc. | 1,601 | 71,165 | ||||||
Cheesecake Factory Inc. | 1,584 | 66,195 | ||||||
Jack in the Box Inc. | 622 | 52,260 | ||||||
Ruth’s Hospitality Group Inc. | 2,034 | 41,860 | ||||||
|
| |||||||
Total Hotels, Restaurants & Leisure | 231,480 | |||||||
|
| |||||||
Household Durables - 2.2% | ||||||||
Ethan Allen Interiors Inc. | 2,856 | 56,292 | ||||||
La-Z-Boy Inc. | 1,842 | 65,409 | ||||||
Meritage Homes Corp. | 1,031 | 74,325 | * | |||||
Sonos Inc. | 2,959 | 38,704 | * | |||||
Turtle Beach Corp. | 3,069 | 33,391 | * | |||||
|
| |||||||
Total Household Durables | 268,121 | |||||||
|
|
See Notes to Schedule of Investments.
1
Legg Mason Small-Cap Quality Value ETF 2019 Quarterly Report
LEGG MASONSMALL-CAP QUALITY VALUE ETF
Schedule of investments (unaudited) (cont’d) | October 31, 2019 |
SECURITY | SHARES | VALUE | ||||||
Internet & Direct Marketing Retail - 2.2% | ||||||||
PetMed Express Inc. | 2,502 | $ | 58,584 | |||||
Revolve Group Inc. | 1,343 | 27,881 | * | |||||
Shutterstock Inc. | 1,484 | 60,221 | * | |||||
Stamps.com Inc. | 728 | 61,465 | * | |||||
Stitch Fix Inc., Class A Shares | 2,235 | 51,092 | * | |||||
|
| |||||||
Total Internet & Direct Marketing Retail | 259,243 | |||||||
|
| |||||||
Leisure Products - 0.7% | ||||||||
Malibu Boats Inc., Class A Shares | 1,313 | 42,830 | * | |||||
MasterCraft Boat Holdings Inc. | 2,625 | 41,344 | * | |||||
|
| |||||||
Total Leisure Products | 84,174 | |||||||
|
| |||||||
Specialty Retail - 3.4% | ||||||||
Buckle Inc. | 3,238 | 67,739 | ||||||
Michaels Cos. Inc. | 7,143 | 62,358 | * | |||||
Sally Beauty Holdings Inc. | 4,412 | 68,386 | * | |||||
Sleep Number Corp. | 1,119 | 53,846 | * | |||||
Tilly’s Inc., Class A Shares | 4,587 | 47,063 | ||||||
Urban Outfitters Inc. | 2,750 | 78,925 | * | |||||
Winmark Corp. | 147 | 26,460 | ||||||
|
| |||||||
Total Specialty Retail | 404,777 | |||||||
|
| |||||||
Textiles, Apparel & Luxury Goods - 1.1% | ||||||||
Culp Inc. | 2,355 | 36,432 | ||||||
Movado Group Inc. | 2,032 | 52,933 | ||||||
Vera Bradley Inc. | 4,167 | 44,837 | * | |||||
|
| |||||||
Total Textiles, Apparel & Luxury Goods | 134,202 | |||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY | 1,636,174 | |||||||
|
| |||||||
CONSUMER STAPLES - 2.5% | ||||||||
Beverages - 0.5% | ||||||||
National Beverage Corp. | 1,433 | 62,995 | ||||||
|
| |||||||
Personal Products - 0.7% | ||||||||
Lifevantage Corp. | 2,062 | 27,961 | * | |||||
USANA Health Sciences Inc. | 696 | 51,580 | * | |||||
|
| |||||||
Total Personal Products | 79,541 | |||||||
|
|
See Notes to Schedule of Investments.
2
Legg Mason Small-Cap Quality Value ETF 2019 Quarterly Report
LEGG MASONSMALL-CAP QUALITY VALUE ETF
Schedule of investments (unaudited) (cont’d) | October 31, 2019 |
SECURITY | SHARES | VALUE | ||||||
Tobacco - 1.3% | ||||||||
Universal Corp. | 1,269 | $ | 69,541 | |||||
Vector Group Ltd. | 6,604 | 80,569 | ||||||
|
| |||||||
Total Tobacco | 150,110 | |||||||
|
| |||||||
TOTAL CONSUMER STAPLES | 292,646 | |||||||
|
| |||||||
ENERGY - 6.1% | ||||||||
Energy Equipment & Services - 2.0% | ||||||||
Cactus Inc., Class A Shares | 1,567 | 46,571 | * | |||||
Era Group Inc. | 3,670 | 35,489 | * | |||||
Liberty Oilfield Services Inc., Class A Shares | 4,349 | 40,054 | ||||||
Matrix Service Co. | 2,398 | 44,987 | * | |||||
Select Energy Services Inc., Class A Shares | 5,762 | 43,791 | * | |||||
Solaris Oilfield Infrastructure Inc., Class A Shares | 2,592 | 27,579 | ||||||
|
| |||||||
Total Energy Equipment & Services | 238,471 | |||||||
|
| |||||||
Oil, Gas & Consumable Fuels - 4.1% | ||||||||
Antero Resources Corp. | 24,677 | 61,692 | * | |||||
Arch Coal Inc., Class A Shares | 805 | 63,506 | ||||||
Bonanza Creek Energy Inc. | 2,024 | 36,068 | * | |||||
CONSOL Energy Inc. | 4,057 | 53,674 | * | |||||
Contura Energy Inc. | 2,074 | 47,578 | * | |||||
Evolution Petroleum Corp. | 5,682 | 31,933 | ||||||
Falcon Minerals Corp. | 7,730 | 47,617 | ||||||
NACCO Industries Inc., Class A Shares | 837 | 42,268 | ||||||
Peabody Energy Corp. | 5,361 | 56,451 | ||||||
REX American Resources Corp. | 543 | 43,940 | * | |||||
|
| |||||||
Total Oil, Gas & Consumable Fuels | 484,727 | |||||||
|
| |||||||
TOTAL ENERGY | 723,198 | |||||||
|
| |||||||
FINANCIALS - 18.1% | ||||||||
Banks - 7.0% | ||||||||
Bancorp Inc. | 4,240 | 46,216 | * | |||||
Cathay General Bancorp | 2,214 | 78,752 | ||||||
First Choice Bancorp | 1,722 | 38,504 | ||||||
First Financial Corp. | 1,164 | 51,064 | ||||||
First Internet Bancorp | 1,612 | 36,657 | ||||||
FNCB Bancorp Inc. | 3,967 | 29,475 | ||||||
Franklin Financial Services Corp. | 1,013 | 36,255 | ||||||
Hanmi Financial Corp. | 2,844 | 54,747 | ||||||
Hawthorn Bancshares Inc. | 1,324 | 31,776 | ||||||
Heritage Commerce Corp. | 3,833 | 46,072 | ||||||
Home BancShares Inc. | 4,052 | 74,881 | ||||||
Parke Bancorp Inc. | 1,595 | 38,344 |
See Notes to Schedule of Investments.
3
Legg Mason Small-Cap Quality Value ETF 2019 Quarterly Report
LEGG MASONSMALL-CAP QUALITY VALUE ETF
Schedule of investments (unaudited) (cont’d) | October 31, 2019 |
SECURITY | SHARES | VALUE | ||||||
Banks - (ontinued) | ||||||||
Preferred Bank | 920 | $ | 49,045 | |||||
RBB Bancorp | 1,999 | 40,260 | ||||||
South Plains Financial Inc. | 2,697 | 45,175 | ||||||
TCF Financial Corp. | 1,920 | 76,013 | ||||||
Texas Capital Bancshares Inc. | 1,265 | 68,386 | * | |||||
|
| |||||||
Total Banks | 841,622 | |||||||
|
| |||||||
Capital Markets - 4.5% | ||||||||
Artisan Partners Asset Management Inc., Class A Shares | 2,667 | 72,943 | ||||||
Cohen & Steers Inc. | 1,305 | 85,399 | ||||||
Diamond Hill Investment Group Inc. | 353 | 49,724 | ||||||
Houlihan Lokey Inc. | 1,495 | 70,654 | ||||||
Moelis & Co., Class A Shares | 2,471 | 88,165 | ||||||
Oaktree Specialty Lending Corp. | 11,589 | 59,915 | ||||||
Waddell & Reed Financial Inc., Class A Shares | 4,136 | 68,492 | ||||||
Westwood Holdings Group Inc. | 1,558 | 47,098 | ||||||
|
| |||||||
Total Capital Markets | 542,390 | |||||||
|
| |||||||
Consumer Finance - 0.6% | ||||||||
Enova International Inc. | 2,812 | 66,054 | * | |||||
|
| |||||||
Insurance - 2.8% | ||||||||
American Equity Investment Life Holding Co. | 4,209 | 103,878 | ||||||
Employers Holdings Inc. | 1,411 | 59,742 | ||||||
Investors Title Co. | 271 | 41,111 | ||||||
National Western Life Group Inc., Class A Shares | 251 | 68,423 | ||||||
Universal Insurance Holdings Inc. | 2,094 | 56,768 | ||||||
|
| |||||||
Total Insurance | 329,922 | |||||||
|
| |||||||
Thrifts & Mortgage Finance - 3.2% | ||||||||
Axos Financial Inc. | 2,091 | 60,744 | * | |||||
FS Bancorp Inc. | 617 | 35,323 | ||||||
Home Bancorp Inc. | 1,020 | 38,923 | ||||||
Merchants Bancorp | 2,480 | 40,498 | ||||||
Mr. Cooper Group Inc. | 8,609 | 110,195 | * | |||||
NMI Holdings Inc., Class A Shares | 1,874 | 54,815 | * | |||||
Sterling Bancorp Inc. | 4,316 | 41,822 | ||||||
|
| |||||||
Total Thrifts & Mortgage Finance | 382,320 | |||||||
|
| |||||||
TOTAL FINANCIALS | 2,162,308 | |||||||
|
|
See Notes to Schedule of Investments.
4
Legg Mason Small-Cap Quality Value ETF 2019 Quarterly Report
LEGG MASONSMALL-CAP QUALITY VALUE ETF
Schedule of investments (unaudited) (cont’d) | October 31, 2019 |
SECURITY | SHARES | VALUE | ||||||
HEALTH CARE - 15.8% | ||||||||
Biotechnology - 4.5% | ||||||||
Alector Inc. | 1,860 | $ | 31,322 | * | ||||
Anika Therapeutics Inc. | 637 | 44,838 | * | |||||
Arena Pharmaceuticals Inc. | 1,116 | 54,366 | * | |||||
BioSpecifics Technologies Corp. | 537 | 26,007 | * | |||||
Eagle Pharmaceuticals Inc. | 678 | 42,511 | * | |||||
Enanta Pharmaceuticals Inc. | 609 | 37,076 | * | |||||
Genomic Health Inc. | 551 | 36,741 | * | |||||
Ligand Pharmaceuticals Inc. | 578 | 62,892 | * | |||||
Myriad Genetics Inc. | 2,162 | 72,795 | * | |||||
Principia Biopharma Inc. | 719 | 25,388 | * | |||||
Puma Biotechnology Inc. | 1,749 | 11,893 | * | |||||
Sutro Biopharma Inc. | 2,851 | 28,595 | * | |||||
Vanda Pharmaceuticals Inc. | 2,529 | 34,167 | * | |||||
Voyager Therapeutics Inc. | 1,420 | 21,854 | * | |||||
|
| |||||||
Total Biotechnology | 530,445 | |||||||
|
| |||||||
Health Care Equipment & Supplies - 5.3% | ||||||||
AngioDynamics Inc. | 2,453 | 37,531 | * | |||||
Atrion Corp. | 50 | 42,172 | ||||||
FONAR Corp. | 1,225 | 24,904 | * | |||||
Heska Corp. | 412 | 33,380 | * | |||||
Inogen Inc. | 857 | 46,651 | * | |||||
iRadimed Corp. | 1,113 | 28,103 | * | |||||
LeMaitre Vascular Inc. | 1,010 | 34,946 | ||||||
Meridian Bioscience Inc. | 4,396 | 43,037 | ||||||
Merit Medical Systems Inc. | 1,788 | 36,931 | * | |||||
Natus Medical Inc. | 1,419 | 47,792 | * | |||||
OraSure Technologies Inc. | 4,572 | 39,045 | * | |||||
Orthofix Medical Inc. | 798 | 33,540 | * | |||||
Quidel Corp. | 669 | 38,066 | * | |||||
Surmodics Inc. | 629 | 29,884 | * | |||||
Tactile Systems Technology Inc. | 549 | 24,936 | * | |||||
Utah Medical Products Inc. | 318 | 32,585 | ||||||
Varex Imaging Corp. | 2,108 | 63,261 | * | |||||
|
| |||||||
Total Health Care Equipment & Supplies | 636,764 | |||||||
|
| |||||||
Health Care Providers & Services - 2.2% | ||||||||
MEDNAX Inc. | 3,377 | 74,159 | * | |||||
National HealthCare Corp. | 709 | 58,266 | ||||||
National Research Corp. | 676 | 38,823 | ||||||
Petiq Inc. | 1,305 | 32,259 | * | |||||
Premier Inc., Class A Shares | 1,871 | 60,957 | * | |||||
|
| |||||||
Total Health Care Providers & Services | 264,464 | |||||||
|
| |||||||
Life Sciences Tools & Services - 0.4% | ||||||||
Luminex Corp. | 2,094 | 42,916 | ||||||
|
|
See Notes to Schedule of Investments.
5
Legg Mason Small-Cap Quality Value ETF 2019 Quarterly Report
LEGG MASONSMALL-CAP QUALITY VALUE ETF
Schedule of investments (unaudited) (cont’d) | October 31, 2019 |
SECURITY | SHARES | VALUE | ||||||
Pharmaceuticals - 3.4% | ||||||||
ANI Pharmaceuticals Inc. | 515 | $ | 40,227 | * | ||||
Assertio Therapeutics Inc. | 29,782 | 23,531 | * | |||||
Collegium Pharmaceutical Inc. | 2,481 | 29,772 | * | |||||
Corcept Therapeutics Inc. | 3,232 | 47,155 | * | |||||
Innoviva Inc. | 4,198 | 48,781 | * | |||||
Lannett Co. Inc. | 3,842 | 45,681 | * | |||||
Pacira BioSciences Inc. | 1,060 | 42,919 | * | |||||
Phibro Animal Health Corp., Class A Shares | 2,320 | 55,587 | ||||||
SIGA Technologies Inc. | 4,844 | 26,884 | * | |||||
Supernus Pharmaceuticals Inc. | 1,730 | 48,077 | * | |||||
|
| |||||||
Total Pharmaceuticals | 408,614 | |||||||
|
| |||||||
TOTAL HEALTH CARE | 1,883,203 | |||||||
|
| |||||||
INDUSTRIALS - 16.7% | ||||||||
Aerospace & Defense - 0.9% | ||||||||
National Presto Industries Inc. | 601 | 51,740 | ||||||
Park Aerospace Corp. | 3,040 | 51,650 | ||||||
|
| |||||||
Total Aerospace & Defense | 103,390 | |||||||
|
| |||||||
Air Freight & Logistics - 0.7% | ||||||||
Echo Global Logistics Inc. | 2,364 | 47,067 | * | |||||
Radiant Logistics Inc. | 6,900 | 37,191 | * | |||||
|
| |||||||
Total Air Freight & Logistics | 84,258 | |||||||
|
| |||||||
Building Products - 2.9% | ||||||||
Builders FirstSource Inc. | 3,731 | 84,358 | * | |||||
Continental Building Products Inc. | 1,757 | 52,552 | * | |||||
Patrick Industries Inc. | 1,446 | 71,446 | * | |||||
Quanex Building Products Corp. | 2,669 | 51,485 | ||||||
Universal Forest Products Inc. | 1,733 | 87,274 | ||||||
|
| |||||||
Total Building Products | 347,115 | |||||||
|
| |||||||
Commercial Services & Supplies - 2.1% | ||||||||
Deluxe Corp. | 1,458 | 75,568 | ||||||
Ennis Inc. | 2,463 | 48,250 | ||||||
HNI Corp. | 1,970 | 74,860 | ||||||
Kimball International Inc., Class B Shares | 2,426 | 49,394 | ||||||
|
| |||||||
Total Commercial Services & Supplies | 248,072 | |||||||
|
| |||||||
Construction & Engineering - 1.0% | ||||||||
Comfort Systems USA Inc. | 1,392 | 70,170 | ||||||
Great Lakes Dredge & Dock Corp. | 4,257 | 45,763 | * | |||||
|
| |||||||
Total Construction & Engineering | 115,933 | |||||||
|
| |||||||
Electrical Equipment - 0.4% | ||||||||
Encore Wire Corp. | 910 | 51,142 | ||||||
|
|
See Notes to Schedule of Investments.
6
Legg Mason Small-Cap Quality Value ETF 2019 Quarterly Report
LEGG MASONSMALL-CAP QUALITY VALUE ETF
Schedule of investments (unaudited) (cont’d) | October 31, 2019 |
SECURITY | SHARES | VALUE | ||||||
Machinery - 2.3% | ||||||||
Commercial Vehicle Group Inc. | 5,536 | $ | 40,357 | * | ||||
Hillenbrand Inc. | 2,286 | 70,386 | ||||||
Mueller Industries Inc. | 2,476 | 76,187 | ||||||
Omega Flex Inc. | 379 | 35,190 | ||||||
Wabash National Corp. | 3,983 | 56,798 | ||||||
|
| |||||||
Total Machinery | 278,918 | |||||||
|
| |||||||
Professional Services - 2.7% | ||||||||
Barrett Business Services Inc. | 558 | 48,953 | ||||||
BG Staffing Inc. | 1,956 | 37,418 | ||||||
Heidrick & Struggles International Inc. | 1,719 | 48,923 | ||||||
Kforce Inc. | 1,501 | 61,406 | ||||||
Korn Ferry | 1,768 | 64,868 | ||||||
TrueBlue Inc. | 2,730 | 62,517 | * | |||||
|
| |||||||
Total Professional Services | 324,085 | |||||||
|
| |||||||
Road & Rail - 0.8% | ||||||||
ArcBest Corp. | 1,974 | 57,029 | ||||||
Universal Logistics Holdings Inc. | 2,145 | 40,444 | ||||||
|
| |||||||
Total Road & Rail | 97,473 | |||||||
|
| |||||||
Trading Companies & Distributors - 2.9% | ||||||||
BMC Stock Holdings Inc. | 2,526 | 68,177 | * | |||||
GMS Inc. | 2,152 | 64,474 | * | |||||
H&E Equipment Services Inc. | 1,976 | 67,066 | ||||||
Systemax Inc. | 3,071 | 66,456 | ||||||
WESCO International Inc. | 1,648 | 82,647 | * | |||||
|
| |||||||
Total Trading Companies & Distributors | 348,820 | |||||||
|
| |||||||
TOTAL INDUSTRIALS | 1,999,206 | |||||||
|
| |||||||
INFORMATION TECHNOLOGY - 13.1% | ||||||||
Communications Equipment - 1.6% | ||||||||
Comtech Telecommunications Corp. | 1,743 | 60,918 | ||||||
InterDigital Inc. | 1,196 | 64,141 | ||||||
NetScout Systems Inc. | 2,686 | 65,055 | * | |||||
|
| |||||||
Total Communications Equipment | 190,114 | |||||||
|
| |||||||
Electronic Equipment, Instruments & Components - 4.9% | ||||||||
AVX Corp. | 4,976 | 76,232 | ||||||
Badger Meter Inc. | 863 | 49,881 | ||||||
Benchmark Electronics Inc. | 2,222 | 75,326 | ||||||
Insight Enterprises Inc. | 1,404 | 86,178 | * | |||||
Mesa Laboratories Inc. | 142 | 32,341 | ||||||
PC Connection Inc. | 1,622 | 79,218 | ||||||
TTM Technologies Inc. | 5,456 | 63,890 | * | |||||
Vishay Intertechnology Inc. | 4,134 | 83,300 | ||||||
Vishay Precision Group Inc. | 1,002 | 34,118 | * | |||||
|
| |||||||
Total Electronic Equipment, Instruments & Components | 580,484 | |||||||
|
|
See Notes to Schedule of Investments.
7
Legg Mason Small-Cap Quality Value ETF 2019 Quarterly Report
LEGG MASONSMALL-CAP QUALITY VALUE ETF
Schedule of investments (unaudited) (cont’d) | October 31, 2019 |
SECURITY | SHARES | VALUE | ||||||
IT Services - 1.8% | ||||||||
Cass Information Systems Inc. | 749 | $ | 42,925 | |||||
CSG Systems International Inc. | 1,024 | 59,023 | ||||||
NIC Inc. | 2,430 | 57,154 | ||||||
Sykes Enterprises | 1,816 | 56,105 | * | |||||
|
| |||||||
Total IT Services | 215,207 | |||||||
|
| |||||||
Semiconductors & Semiconductor Equipment - 3.3% | ||||||||
Cirrus Logic Inc. | 1,166 | 79,241 | * | |||||
Diodes Inc. | 1,397 | 65,170 | * | |||||
Ichor Holdings Ltd. | 1,631 | 47,479 | * | |||||
NVE Corp. | 565 | 35,171 | ||||||
SMART Global Holdings Inc. | 1,413 | 41,966 | * | |||||
Synaptics Inc. | 1,420 | 59,796 | * | |||||
Ultra Clean Holdings Inc. | 3,239 | 69,218 | * | |||||
|
| |||||||
Total Semiconductors & Semiconductor Equipment | 398,041 | |||||||
|
| |||||||
Software - 1.5% | ||||||||
American Software Inc., Class A Shares | 2,517 | 40,800 | ||||||
GlobalSCAPE Inc. | 2,317 | 22,475 | ||||||
Intelligent Systems Corp. | 422 | 19,062 | * | |||||
Progress Software Corp. | 1,301 | 51,884 | ||||||
Qualys Inc. | 560 | 47,785 | * | |||||
|
| |||||||
Total Software | 182,006 | |||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY | 1,565,852 | |||||||
|
| |||||||
MATERIALS - 6.2% | ||||||||
Chemicals - 1.6% | ||||||||
FutureFuel Corp. | 4,733 | 58,358 | ||||||
Tredegar Corp. | 2,728 | 54,233 | ||||||
Trinseo SA | 1,776 | 75,480 | ||||||
|
| |||||||
Total Chemicals | 188,071 | |||||||
|
| |||||||
Containers & Packaging - 0.6% | ||||||||
Myers Industries Inc. | 2,737 | 46,337 | ||||||
UFP Technologies Inc. | 786 | 32,706 | * | |||||
|
| |||||||
Total Containers & Packaging | 79,043 | |||||||
|
| |||||||
Metals & Mining - 2.6% | ||||||||
AK Steel Holding Corp. | 25,442 | 60,043 | * | |||||
Materion Corp. | 804 | 45,699 | ||||||
Schnitzer Steel Industries Inc., Class A Shares | 2,517 | 53,713 | ||||||
Warrior Met Coal Inc. | 4,268 | 83,141 | ||||||
Worthington Industries Inc. | 1,882 | 69,276 | ||||||
|
| |||||||
Total Metals & Mining | 311,872 | |||||||
|
|
See Notes to Schedule of Investments.
8
Legg Mason Small-Cap Quality Value ETF 2019 Quarterly Report
LEGG MASONSMALL-CAP QUALITY VALUE ETF
Schedule of investments (unaudited) (cont’d) | October 31, 2019 |
SECURITY | SHARES | VALUE | ||||||||||
Paper & Forest Products - 1.4% | ||||||||||||
Domtar Corp. | 2,466 | $ | 89,738 | |||||||||
Verso Corp., Class A Shares | 5,229 | 76,552 | * | |||||||||
|
| |||||||||||
Total Paper & Forest Products | 166,290 | |||||||||||
|
| |||||||||||
TOTAL MATERIALS | 745,276 | |||||||||||
|
| |||||||||||
REAL ESTATE - 1.1% | ||||||||||||
Real Estate Management & Development - 1.1% | ||||||||||||
Consolidated-Tomoka Land Co. | 460 | 29,426 | ||||||||||
Marcus & Millichap Inc. | 1,243 | 44,400 | * | |||||||||
RMR Group Inc., Class A Shares | 1,172 | 56,725 | ||||||||||
|
| |||||||||||
TOTAL REAL ESTATE | 130,551 | |||||||||||
|
| |||||||||||
UTILITIES - 1.2% | ||||||||||||
Electric Utilities - 1.2% | ||||||||||||
Genie Energy Ltd., Class B Shares | 4,966 | 36,997 | ||||||||||
Otter Tail Corp. | 1,143 | 64,785 | ||||||||||
Spark Energy Inc., Class A Shares | 4,733 | 45,295 | ||||||||||
|
| |||||||||||
TOTAL UTILITIES | 147,077 | |||||||||||
|
| |||||||||||
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS |
| 11,879,655 | ||||||||||
|
| |||||||||||
RATE | ||||||||||||
SHORT-TERM INVESTMENTS - 0.5% | ||||||||||||
Dreyfus Treasury Cash Management, Institutional Class | 1.625 | % | 55,919 | 55,919 | ||||||||
|
| |||||||||||
TOTAL INVESTMENTS - 100.0% | 11,935,574 | |||||||||||
Other Assets in Excess of Liabilities - 0.0% | 703 | |||||||||||
|
| |||||||||||
TOTAL NET ASSETS - 100.0% | $ | 11,936,277 | ||||||||||
|
|
* | Non-income producing security. |
This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.
See Notes to Schedule of Investments.
9
Legg Mason Small-Cap Quality Value ETF 2019 Quarterly Report
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
Legg MasonSmall-Cap Quality Value ETF (the “Fund”) is a separate diversified investment series of Legg Mason ETF Investment Trust (the “Trust”). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company.
The Fund is an exchange-traded fund (“ETF”). ETFs are funds that trade like other publicly-traded securities. The Fund is designed to track an index. Similar to shares of an index mutual fund, each share of the Fund represents an ownership interest in an underlying portfolio of securities intended to track an index. Unlike shares of a mutual fund, which can be bought from and redeemed by the issuing fund by all shareholders at a price based on net asset value (“NAV”), shares of the Fund may be directly purchased from and redeemed by the Fund at NAV solely by certain large institutional investors who have entered into agreements with the Fund’s distributor (“Authorized Participants”). Also unlike shares of a mutual fund, shares of the Fund are listed on a national securities exchange and trade in the secondary market at market prices that change throughout the day.
Shares of the Fund are listed and traded at market prices on NASDAQ. The market price for the Fund’s shares may be different from the Fund’s NAV. The Fund issues and redeems shares at NAV only in blocks of a specified number of shares or multiples thereof (“Creation Units”). Only Authorized Participants may purchase or redeem Creation Units directly with the Fund at NAV. Creation Units are issued and redeemed principallyin-kind (although under some circumstances its shares are created and redeemed partially for cash). Except when aggregated in Creation Units, shares of the Fund are not redeemable securities. Shareholders who are not Authorized Participants may not redeem shares directly from the Fund at NAV.
The Fund seeks to track the investment results of the RoyceSmall-Cap Quality Value Index (the “Underlying Index”). The Underlying Index utilizes a proprietary methodology created and sponsored by Royce & Associates, LP (“Royce”), the Fund’s subadviser.
The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).
(a) Investment valuation.Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments inopen-end funds are
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Notes to Schedule of Investments (unaudited) (continued)
valued at the closing net asset value per share of each fund on the day of valuation. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will use the currency exchange rates, generally determined as of 4:00 p.m. (London Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/ dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund’s Board of Trustees.
The Board of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.
11
Notes to Schedule of Investments (unaudited) (continued)
The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.
GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:
• | Level 1 – quoted prices in active markets for identical investments |
• | Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:
ASSETS | ||||||||||||||||
DESCRIPTION | QUOTED PRICES (LEVEL 1) | OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) | SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) | TOTAL | ||||||||||||
Common Stocks† | $ | 11,879,655 | — | — | $ | 11,879,655 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Short-Term Investments† | 55,919 | — | — | 55,919 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 11,935,574 | — | — | $ | 11,935,574 | ||||||||||
|
|
|
|
|
|
|
|
† | See Schedule of Investments for additional detailed categorizations. |
12