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: 811-23494
T. Rowe Price Exchange-Traded Funds, Inc.
(Exact name of registrant as specified in charter)
100 East Pratt Street, Baltimore, MD 21202
(Address of principal executive offices)
David Oestreicher
100 East Pratt Street, Baltimore, MD 21202
(Name and address of agent for service)
Registrant’s telephone number, including area code: (410) 345-2000
Date of fiscal year end: December 31
Date of reporting period: June 30, 2023
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
T. ROWE PRICE | |
TGRT | Growth ETF |
For more insights from T. Rowe Price investment professionals, go to troweprice.com. |
confirmations faster than U.S. mail.
T. Rowe Price passes on the cost savings to
fund holders.*
Percent of Net Assets | |
6/30/23 | |
Information Technology | 44.1% |
Health Care | 14.4 |
Consumer Discretionary | 12.7 |
Communication Services | 11.1 |
Financials | 9.9 |
Industrials and Business Services | 4.2 |
Consumer Staples | 2.4 |
Materials | 0.7 |
Energy | 0.2 |
Real Estate | 0.0 |
Utilities | 0.0 |
Other and Reserves | 0.3 |
Total | 100.0% |
Percent of Net Assets | |
6/30/23 | |
Microsoft | 12.8% |
Apple | 10.9 |
Alphabet | 6.8 |
Amazon.com | 5.8 |
NVIDIA | 5.5 |
UnitedHealth Group | 3.1 |
Visa | 3.1 |
MasterCard | 2.7 |
Meta Platforms | 2.3 |
Intuit | 2.2 |
Eli Lilly and Co | 2.0 |
Fiserv | 1.8 |
Cigna | 1.5 |
Intuitive Surgical | 1.5 |
Amphenol | 1.2 |
ServiceNow | 1.1 |
Stryker | 1.1 |
ASML Holding | 1.0 |
Booking Holdings | 1.0 |
Cadence Design Systems | 1.0 |
KLA | 1.0 |
Monster Beverage | 1.0 |
Ross Stores | 1.0 |
Tesla | 1.0 |
Chipotle Mexican Grill | 0.9 |
Total | 73.3% |
Beginning Account Value 6/15/231 | Ending Account Value 6/30/23 | Expenses Paid During Period 6/15/23 to 6/30/231,2 | |
Actual | $1,000.00 | $1,020.80 | $0.17 |
1/1/23 1 | 6/30/23 | 1/1/23 to 6/30/231,3 | |
Hypothetical (assumes 5% return before expenses) | 1,000.00 | 1,022.91 | 1.91 |
1 | The actual expense example is based on the period since the fund’s start of operations on 6/15/23, one day after inception; the hypothetical expense example is based on the half-year period beginning 1/1/23, as required by the Securities and Exchange Commission. |
2 | Expenses are equal to the fund’s annualized expense ratio for the period (0.38%), multiplied by the average account value over the period, multiplied by the number of days in the period (16), and divided by the days in the year (365) since the fund’s start of operations. |
3 | Expenses are equal to the fund’s annualized expense ratio for the period (0.38%), multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (181), and divided by the days in the year (365) to reflect the half-year period. |
6/14/23 (1) Through | |
6/30/23 | |
NET ASSET VALUE | |
Beginning of period | $ 25.00 |
Investment activities | |
Net investment income(2) (3) | - (4) |
Net realized and unrealized gain/loss | 0.52 |
Total from investment activities | 0.52 |
NET ASSET VALUE | |
End of period | $ 25.52 |
Ratios/Supplemental Data | |
Total return, based on NAV(3) (5) | 2.08% |
Ratios to average net assets:(3) | |
Gross expenses before waivers/payments by Price Associates | 0.38% (6) |
Net expenses after waivers/payments by Price Associates | 0.38% (6) |
Net investment income | 0.09% (6) |
Portfolio turnover rate | 0.0% |
Net assets, end of period (in thousands) | $ 14,038 |
(1) | Inception date |
(2) | Per share amounts calculated using average shares outstanding method. |
(3) | See Note 5 for details to expense-related arrangements with Price Associates. |
(4) | Amounts round to less than $0.01 per share. |
(5) | Total return reflects the rate that an investor would have earned on an investment in the fund during the period, assuming reinvestment of all distributions. Total return is not annualized for periods less than one year. |
(6) | Annualized |
PORTFOLIO OF INVESTMENTS‡ | Shares | $ Value |
(Cost and value in $000s) | ||
COMMON STOCKS 99.7% | ||
COMMUNICATION SERVICES 11.1% | ||
Entertainment 1.1% | ||
Netflix (1) | 297 | 131 |
Spotify Technology (1) | 178 | 28 |
159 | ||
Interactive Media & Services 9.1% | ||
Alphabet, Class A (1) | 7,923 | 949 |
Meta Platforms, Class A (1) | 1,126 | 323 |
1,272 | ||
Media 0.4% | ||
Trade Desk, Class A (1) | 660 | 51 |
51 | ||
Wireless Telecommunication Services 0.5% | ||
T-Mobile US (1) | 519 | 72 |
72 | ||
Total Communication Services | 1,554 | |
CONSUMER DISCRETIONARY 12.7% | ||
Automobiles 1.0% | ||
Tesla (1) | 549 | 144 |
144 | ||
Broadline Retail 6.3% | ||
Amazon.com (1) | 6,216 | 811 |
Coupang, Class A (1) | 2,140 | 37 |
MercadoLibre (1) | 28 | 33 |
881 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Hotels Restaurants & Leisure 2.6% | ||
Booking Holdings (1) | 52 | 140 |
Chipotle Mexican Grill (1) | 62 | 133 |
Hilton Worldwide Holdings | 399 | 58 |
Starbucks | 301 | 30 |
361 | ||
Specialty Retail 2.4% | ||
Home Depot | 246 | 76 |
O'Reilly Automotive (1) | 81 | 77 |
Ross Stores | 1,202 | 135 |
Tractor Supply | 132 | 29 |
Ulta Beauty (1) | 55 | 26 |
343 | ||
Textiles, Apparel & Luxury Goods 0.4% | ||
Lululemon Athletica (1) | 95 | 36 |
NIKE, Class B | 230 | 25 |
61 | ||
Total Consumer Discretionary | 1,790 | |
CONSUMER STAPLES 2.4% | ||
Beverages 2.0% | ||
Constellation Brands, Class A | 210 | 51 |
Monster Beverage (1) | 2,488 | 143 |
PepsiCo | 485 | 90 |
284 | ||
Consumer Staples Distribution & Retail 0.2% | ||
Dollar General | 175 | 30 |
30 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Personal Care Products 0.2% | ||
Estee Lauder, Class A | 122 | 24 |
24 | ||
Total Consumer Staples | 338 | |
ENERGY 0.2% | ||
Oil, Gas & Consumable Fuels 0.2% | ||
Pioneer Natural Resources | 129 | 27 |
Total Energy | 27 | |
FINANCIALS 9.8% | ||
Capital Markets 1.2% | ||
Cboe Global Markets | 150 | 21 |
Charles Schwab | 370 | 21 |
S&P Global | 151 | 60 |
Tradeweb Markets, Class A | 1,026 | 70 |
172 | ||
Financial Services 8.5% | ||
Apollo Global Management | 413 | 32 |
Fiserv (1) | 2,034 | 257 |
FleetCor Technologies (1) | 113 | 28 |
Global Payments | 670 | 66 |
Mastercard, Class A | 946 | 372 |
Visa, Class A | 1,837 | 436 |
1,191 | ||
Insurance 0.1% | ||
Marsh & McLennan | 117 | 22 |
22 | ||
Total Financials | 1,385 |
Shares | $ Value | |
(Cost and value in $000s) | ||
HEALTH CARE 14.4% | ||
Biotechnology 1.2% | ||
Legend Biotech, ADR (1) | 520 | 36 |
Regeneron Pharmaceuticals (1) | 37 | 27 |
Vertex Pharmaceuticals (1) | 310 | 109 |
172 | ||
Health Care Equipment & Supplies 3.9% | ||
Becton Dickinson | 373 | 98 |
Dexcom (1) | 245 | 32 |
Intuitive Surgical (1) | 627 | 214 |
Penumbra (1) | 122 | 42 |
Stryker | 527 | 161 |
547 | ||
Health Care Providers & Services 6.2% | ||
Cigna | 760 | 213 |
Elevance Health | 105 | 46 |
HCA Healthcare | 134 | 41 |
Humana | 221 | 99 |
McKesson | 105 | 45 |
UnitedHealth Group | 890 | 428 |
872 | ||
Life Sciences Tools & Services 0.8% | ||
Danaher | 144 | 35 |
Thermo Fisher Scientific | 139 | 72 |
107 | ||
Pharmaceuticals 2.3% | ||
Eli Lilly | 597 | 280 |
Zoetis | 237 | 41 |
321 | ||
Total Health Care | 2,019 |
Shares | $ Value | |
(Cost and value in $000s) | ||
INDUSTRIALS & BUSINESS SERVICES 4.2% | ||
Aerospace & Defense 0.6% | ||
Northrop Grumman | 74 | 34 |
TransDigm Group (1) | 56 | 50 |
84 | ||
Commercial Services & Supplies 0.8% | ||
Cintas | 120 | 60 |
Waste Connections | 351 | 50 |
110 | ||
Ground Transportation 0.9% | ||
Old Dominion Freight Line | 136 | 50 |
Uber Technologies (1) | 501 | 22 |
Union Pacific | 261 | 53 |
125 | ||
Industrial Conglomerates 0.2% | ||
Roper Technologies | 73 | 35 |
35 | ||
Machinery 0.9% | ||
Ingersoll-Rand | 1,960 | 128 |
128 | ||
Professional Services 0.6% | ||
Broadridge Financial Solutions | 130 | 21 |
Paylocity Holding (1) | 314 | 58 |
79 | ||
Trading Companies & Distributors 0.2% | ||
Fastenal | 415 | 25 |
25 | ||
Total Industrials & Business Services | 586 |
Shares | $ Value | |
(Cost and value in $000s) | ||
INFORMATION TECHNOLOGY 44.2% | ||
Communications Equipment 0.3% | ||
Arista Networks (1) | 279 | 45 |
45 | ||
Electronic Equipment, Instruments & Components 1.2% | ||
Amphenol, Class A | 2,036 | 173 |
173 | ||
IT Services 1.1% | ||
Accenture, Class A | 217 | 67 |
MongoDB (1) | 95 | 39 |
Shopify, Class A (1) | 668 | 43 |
149 | ||
Semiconductors & Semiconductor Equipment 10.2% | ||
Advanced Micro Devices (1) | 833 | 95 |
Analog Devices | 150 | 29 |
ASML Holding NV | 193 | 140 |
Entegris | 385 | 43 |
KLA | 301 | 146 |
Lam Research | 48 | 31 |
Lattice Semiconductor (1) | 342 | 33 |
Microchip Technology | 267 | 24 |
Monolithic Power Systems | 95 | 51 |
NVIDIA | 1,813 | 767 |
ON Semiconductor (1) | 278 | 26 |
QUALCOMM | 374 | 45 |
1,430 | ||
Software 20.5% | ||
Adobe (1) | 246 | 120 |
Atlassian, Class A (1) | 367 | 62 |
Cadence Design Systems (1) | 601 | 141 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Dynatrace (1) | 1,356 | 70 |
Intuit | 659 | 302 |
Microsoft | 5,295 | 1,803 |
Palo Alto Networks (1) | 186 | 48 |
Salesforce.com (1) | 338 | 71 |
ServiceNow (1) | 278 | 156 |
Synopsys (1) | 166 | 72 |
Workday (1) | 158 | 36 |
2,881 | ||
Technology Hardware, Storage & Peripherals 10.9% | ||
Apple | 7,853 | 1,523 |
1,523 | ||
Total Information Technology | 6,201 | |
MATERIALS 0.7% | ||
Chemicals 0.7% | ||
Linde | 143 | 54 |
Sherwin-Williams | 150 | 40 |
Total Materials | 94 | |
Total Common Stocks (Cost $13,716) | 13,994 | |
SHORT-TERM INVESTMENTS 0.3% | ||
Money Market Funds 0.3% | ||
State Street Institutional U.S. Government Money Market Fund, 5.03% (2) | 44,877 | 45 |
Total Short-Term Investments (Cost $45) | 45 | |
Total Investments in Securities 100.0% of Net Assets (Cost $13,761) | $14,039 |
‡ | Shares are denominated in U.S. dollars unless otherwise noted. |
(1) | Non-income producing. |
(2) | Seven-day yield |
ADR | American Depositary Receipts |
Assets | |
Investments in securities, at value (cost $13,761) | $ 14,039 |
Dividends receivable | 1 |
Total assets | 14,040 |
Liabilities | |
Investment management and administrative fees payable | 2 |
Total liabilities | 2 |
NET ASSETS | $ 14,038 |
Net assets consists of: | |
Total distributable earnings (loss) | $ 279 |
Paid-in capital applicable to 550,000 shares of $0.0001 par value capital stock outstanding; 4,000,000,000 shares authorized | 13,759 |
NET ASSETS | $14,038 |
NET ASSET VALUE PER SHARE | $ 25.52 |
6/14/23 Through | |
6/30/23 | |
Investment Income (Loss) | |
Dividend income | $ 3 |
Investment management and administrative expense | 2 |
Net investment income | 1 |
Realized and Unrealized Gain / Loss | |
Change in net unrealized gain / loss on securities | 278 |
Net realized and unrealized gain / loss | 278 |
INCREASE IN NET ASSETS FROM OPERATIONS | $279 |
6/14/23 Through | |
6/30/23 | |
Increase (Decrease) in Net Assets | |
Operations | |
Net investment income | $ 1 |
Change in net unrealized gain / loss | 278 |
Increase in net assets from operations | 279 |
Capital share transactions* | |
Shares sold | 13,759 |
Increase in net assets from capital share transactions | 13,759 |
Net Assets | |
Increase during period | 14,038 |
Beginning of period | - |
End of period | $14,038 |
*Share information | |
Shares sold | 550 |
Increase in shares outstanding | 550 |
Votes For | Votes Withheld | |
Melody Bianchetto | 13,058,976 | 207,279 |
Mark J. Parrell | 13,008,567 | 257,689 |
Eric L. Veiel | 13,038,692 | 227,564 |
Kellye L. Walker | 13,058,746 | 207,511 |
Item 1. (b) Notice pursuant to Rule 30e-3.
Not applicable.
Item 2. Code of Ethics.
A code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions is filed as an exhibit to the registrant’s annual Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the registrant’s most recent fiscal half-year.
Item 3. Audit Committee Financial Expert.
Disclosure required in registrant’s annual Form N-CSR.
Item 4. Principal Accountant Fees and Services.
Disclosure required in registrant’s annual Form N-CSR.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Not applicable. The complete schedule of investments is included in Item 1 of this Form N-CSR.
(b) 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. Purchases 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 has been no change to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.
Item 11. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.
(b) The registrant’s principal executive officer and principal financial officer are aware of no change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is 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.
(a)(1) | The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is filed with the registrant’s annual Form N-CSR. | |
(2) | ||
(3) | Written solicitation to repurchase securities issued by closed-end companies: not applicable. | |
(b) |
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.
T. Rowe Price Exchange-Traded Funds, Inc. | ||||
By | /s/ David Oestreicher | |||
David Oestreicher | ||||
Principal Executive Officer | ||||
Date | August 18, 2023 |
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/ David Oestreicher | |||
David Oestreicher | ||||
Principal Executive Officer | ||||
Date | August 18, 2023 |
By | /s/ Alan S. Dupski | |||
Alan S. Dupski | ||||
Principal Financial Officer | ||||
Date | August 18, 2023 |