ClearBridge Dividend Strategy ESG ETF
Schedule of investments (unaudited) | February 29, 2020 |
Security | Shares | Value | ||||||
Common Stocks - 94.2% | ||||||||
Communication Services - 7.4% | ||||||||
Diversified Telecommunication Services - 1.9% | ||||||||
Verizon Communications Inc. | 2,595 | $ | 140,545 | |||||
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Entertainment - 2.4% | ||||||||
Walt Disney Co. | 1,535 | 180,593 | ||||||
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Media - 3.1% | ||||||||
Comcast Corp., Class A Shares | 5,636 | 227,863 | ||||||
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Total Communication Services | 549,001 | |||||||
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Consumer Discretionary - 5.3% | ||||||||
Hotels, Restaurants & Leisure - 1.6% | ||||||||
Starbucks Corp. | 1,520 | 119,214 | ||||||
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Specialty Retail - 2.5% | ||||||||
Home Depot Inc. | 860 | 187,342 | ||||||
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Textiles, Apparel & Luxury Goods - 1.2% | ||||||||
VF Corp. | 1,220 | 87,840 | ||||||
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Total Consumer Discretionary | 394,396 | |||||||
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Consumer Staples - 11.3% | ||||||||
Beverages - 0.5% | ||||||||
PepsiCo Inc. | 310 | 40,929 | ||||||
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Food & Staples Retailing - 1.1% | ||||||||
Sysco Corp. | 1,220 | 81,313 | ||||||
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Food Products - 4.3% | ||||||||
Mondelez International Inc., Class A Shares | 2,800 | 147,840 | ||||||
Nestle SA, ADR | 1,711 | 176,079 | ||||||
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Total Food Products | 323,919 | |||||||
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Household Products - 3.9% | ||||||||
Colgate-Palmolive Co. | 1,480 | 100,003 | ||||||
Procter & Gamble Co. | 1,655 | 187,396 | ||||||
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Total Household Products | 287,399 | |||||||
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Personal Products - 1.5% | ||||||||
Unilever PLC, ADR | 2,019 | 108,885 | ||||||
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Total Consumer Staples | 842,445 | |||||||
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Energy - 3.9% | ||||||||
Oil, Gas & Consumable Fuels - 3.9% | ||||||||
Kinder Morgan Inc. | 7,466 | 143,123 | ||||||
Williams Cos. Inc. | 7,946 | 151,372 | ||||||
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Total Energy | 294,495 | |||||||
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Financials - 11.8% | ||||||||
Banks - 5.8% | ||||||||
Bank of America Corp. | 7,071 | 201,523 |
See Notes to Schedule of Investments.
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ClearBridge Dividend Strategy ESG ETF 2020 Quarterly Report |
1 |
ClearBridge Dividend Strategy ESG ETF
Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
Security | Shares | Value | ||||||
Banks - continued | ||||||||
PNC Financial Services Group Inc. | 954 | $ | 120,586 | |||||
US Bancorp | 2,391 | 111,038 | ||||||
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Total Banks | 433,147 | |||||||
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Capital Markets - 2.0% | ||||||||
BlackRock Inc. | 321 | 148,626 | ||||||
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Insurance - 4.0% | ||||||||
American International Group Inc. | 2,766 | 116,615 | ||||||
MetLife Inc. | 2,561 | 109,406 | ||||||
Travelers Cos. Inc. | 620 | 74,282 | ||||||
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Total Insurance | 300,303 | |||||||
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Total Financials | 882,076 | |||||||
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Health Care - 8.0% | ||||||||
Health Care Providers & Services - 1.6% | ||||||||
UnitedHealth Group Inc. | 466 | 118,811 | ||||||
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Pharmaceuticals - 6.4% | ||||||||
Johnson & Johnson | 1,150 | 154,652 | ||||||
Merck & Co. Inc. | 2,470 | 189,103 | ||||||
Pfizer Inc. | 3,944 | 131,809 | ||||||
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Total Pharmaceuticals | 475,564 | |||||||
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Total Health Care | 594,375 | |||||||
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Industrials - 10.4% | ||||||||
Air Freight & Logistics - 2.0% | ||||||||
United Parcel Service Inc., Class B Shares | 1,649 | 149,218 | ||||||
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Commercial Services & Supplies - 2.7% | ||||||||
Covanta Holding Corp. | 3,610 | 48,230 | ||||||
Waste Management Inc. | 1,385 | 153,472 | ||||||
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Total Commercial Services & Supplies | 201,702 | |||||||
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Electrical Equipment - 1.1% | ||||||||
Emerson Electric Co. | 1,285 | 82,381 | ||||||
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Industrial Conglomerates - 2.9% | ||||||||
3M Co. | 495 | 73,874 | ||||||
Honeywell International Inc. | 885 | 143,520 | ||||||
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Total Industrial Conglomerates | 217,394 | |||||||
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Road & Rail - 1.7% | ||||||||
Union Pacific Corp. | 759 | 121,296 | ||||||
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Total Industrials | 771,991 | |||||||
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Information Technology - 15.7% | ||||||||
Communications Equipment - 0.6% | ||||||||
Cisco Systems Inc. | 1,100 | 43,923 | ||||||
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See Notes to Schedule of Investments.
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2 | ClearBridge Dividend Strategy ESG ETF 2020 Quarterly Report |
ClearBridge Dividend Strategy ESG ETF
Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
Security | Shares | Value | ||||||
IT Services - 5.2% | ||||||||
Mastercard Inc., Class A Shares | 606 | $ | 175,891 | |||||
Visa Inc., Class A Shares | 1,179 | 214,295 | ||||||
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Total IT Services | 390,186 | |||||||
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Semiconductors & Semiconductor Equipment - 2.1% | ||||||||
Intel Corp. | 749 | 41,585 | ||||||
Texas Instruments Inc. | 995 | 113,569 | ||||||
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Total Semiconductors & Semiconductor Equipment | 155,154 | |||||||
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Software - 4.7% | ||||||||
Microsoft Corp. | 2,145 | 347,511 | ||||||
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Technology Hardware, Storage & Peripherals - 3.1% | ||||||||
Apple Inc. | 849 | 232,083 | ||||||
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Total Information Technology | 1,168,857 | |||||||
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Materials - 10.3% | ||||||||
Chemicals - 6.5% | ||||||||
Ecolab Inc. | 984 | 177,563 | ||||||
Linde PLC | 765 | 146,123 | ||||||
PPG Industries Inc. | 1,516 | 158,346 | ||||||
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Total Chemicals | 482,032 | |||||||
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Construction Materials - 1.5% | ||||||||
Vulcan Materials Co. | 970 | 116,652 | ||||||
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Containers & Packaging - 1.5% | ||||||||
International Paper Co. | 2,960 | 109,402 | ||||||
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Metals & Mining - 0.8% | ||||||||
Nucor Corp. | 1,384 | 57,228 | ||||||
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Total Materials | 765,314 | |||||||
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Real Estate - 2.3% | ||||||||
Equity Real Estate Investment Trusts (REITs) - 2.3% | ||||||||
American Tower Corp. | 741 | 168,059 | ||||||
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Utilities - 7.8% | ||||||||
Electric Utilities - 3.7% | ||||||||
Edison International | 1,460 | 98,097 | ||||||
NextEra Energy Inc. | 715 | 180,724 | ||||||
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Total Electric Utilities | 278,821 | |||||||
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Independent Power and Renewable Electricity Producers - 2.5% | ||||||||
Brookfield Renewable Partners LP | 3,800 | 189,468 | * | |||||
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Multi-Utilities - 1.6% | ||||||||
Sempra Energy | 830 | 116,017 | ||||||
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Total Utilities | 584,306 | |||||||
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Total Investments before Short-Term Investments (Cost - $6,645,455) | 7,015,315 | |||||||
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See Notes to Schedule of Investments.
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ClearBridge Dividend Strategy ESG ETF 2020 Quarterly Report |
3 |
ClearBridge Dividend Strategy ESG ETF
Schedule of investments (unaudited) (cont’d) | February 29, 2020 |
Security | Rate | Shares | Value | |||||||||
Short-Term Investments - 6.2% | ||||||||||||
JPMorgan 100% U.S. Treasury Securities Money Market Fund, Institutional Class (Cost - $457,955) | 1.412 | % | 457,955 | $ | 457,955 | |||||||
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Total Investments - 100.4% (Cost - $7,103,410) | 7,473,270 | |||||||||||
Liabilities in Excess of Other Assets - (0.4)% | (26,608 | ) | ||||||||||
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Total Net Assets - 100.0% | $ | 7,446,662 | ||||||||||
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* | Non-income producing security. |
Abbreviation used in this schedule:
ADR | — American Depositary Receipts |
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.
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4 | ClearBridge Dividend Strategy ESG ETF 2020 Quarterly Report |
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
ClearBridge Dividend Strategy ESG 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 actively managed exchange-traded fund (“ETF”). ETFs are funds that trade like other publicly-traded securities. 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 created and redeemed principally in-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 dividend income, growth of dividend income and long-term capital appreciation.
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 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
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5 |
Notes to Schedule of Investments (unaudited) (cont’d)
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.
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6 |
Notes to Schedule of Investments (unaudited) (cont’d)
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† | $ | 7,015,315 | — | — | $ | 7,015,315 | ||||||||||
Short-Term Investments† | 457,955 | — | — | 457,955 | ||||||||||||
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Total Investments | $ | 7,473,270 | — | — | $ | 7,473,270 | ||||||||||
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† | See Schedule of Investments for additional detailed categorizations. |
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7 |