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
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T. ROWE PRICE | |
TVAL | Value ETF |
For more insights from T. Rowe Price investment professionals, go to troweprice.com. |
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T. Rowe Price passes on the cost savings to
fund holders.*
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Percent of Net Assets | |
6/30/23 | |
Financials | 18.6% |
Health Care | 18.2 |
Industrials and Business Services | 12.3 |
Consumer Staples | 9.8 |
Energy | 8.6 |
Information Technology | 8.1 |
Utilities | 5.8 |
Communication Services | 5.5 |
Consumer Discretionary | 4.6 |
Real Estate | 4.1 |
Materials | 3.9 |
Other and Reserves | 0.5 |
Total | 100.0% |
Percent of Net Assets | |
6/30/23 | |
Wells Fargo | 2.3% |
ExxonMobil | 2.2 |
Philip Morris International | 2.2 |
Southern Company | 2.2 |
Wal-Mart | 2.1 |
Bank of America | 2.0 |
Elevance Health | 2.0 |
AvalonBay Communities | 1.8 |
Qualcomm | 1.8 |
Fiserv | 1.7 |
Becton, Dickinson & Company | 1.6 |
Chubb | 1.6 |
Johnson & Johnson | 1.6 |
TotalEnergies | 1.6 |
Hartford Financial Services | 1.5 |
Cigna | 1.3 |
L3Harris Technologies | 1.3 |
U.S. Bancorp | 1.3 |
American International Group | 1.2 |
Cummins | 1.2 |
Merck | 1.2 |
Siemens | 1.2 |
Zimmer Biomet Holdings | 1.2 |
Stanley Black & Decker | 1.1 |
Verizon Communications | 1.1 |
Total | 40.3% |
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 | $1,018.40 | $0.15 |
1/1/23 1 | 6/30/23 | 1/1/23 to 6/30/231,3 | |
Hypothetical (assumes 5% return before expenses) | 1,000.00 | 1,023.16 | 1.66 |
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 (0.33%), 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 (0.33%), 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) | 0.04 |
Net realized and unrealized gain/loss | 0.42 |
Total from investment activities | 0.46 |
NET ASSET VALUE | |
End of period | $ 25.46 |
Ratios/Supplemental Data | |
Total return, based on NAV(3) (4) | 1.84% |
Ratios to average net assets:(3) | |
Gross expenses before waivers/payments by Price Associates | 0.33% (5) |
Net expenses after waivers/payments by Price Associates | 0.33% (5) |
Net investment income | 3.54% (5) |
Portfolio turnover rate | 1.1% |
Net assets, end of period (in thousands) | $ 14,003 |
(1) | Inception date |
(2) | Per share amounts calculated using average shares outstanding method. |
(3) | See Note 6 for details to expense-related arrangements with Price Associates. |
(4) | 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. |
(5) | Annualized |
PORTFOLIO OF INVESTMENTS‡ | Shares | $ Value |
(Cost and value in $000s) | ||
COMMON STOCKS 99.5% | ||
COMMUNICATION SERVICES 5.5% | ||
Diversified Telecommunication Services 1.1% | ||
Verizon Communications | 4,082 | 152 |
152 | ||
Entertainment 0.4% | ||
Walt Disney (1) | 696 | 62 |
62 | ||
Interactive Media & Services 1.7% | ||
Alphabet, Class C (1) | 910 | 110 |
Meta Platforms, Class A (1) | 440 | 126 |
236 | ||
Media 1.3% | ||
News, Class A | 7,589 | 148 |
Omnicom Group | 373 | 36 |
184 | ||
Wireless Telecommunication Services 1.0% | ||
T-Mobile US (1) | 963 | 134 |
134 | ||
Total Communication Services | 768 | |
CONSUMER DISCRETIONARY 4.6% | ||
Automobile Components 0.6% | ||
Aptiv (1) | 362 | 37 |
Magna International | 682 | 38 |
75 | ||
Hotels Restaurants & Leisure 1.8% | ||
Las Vegas Sands (1) | 1,129 | 65 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Marriott International, Class A | 310 | 57 |
MGM Resorts International | 924 | 41 |
Starbucks | 312 | 31 |
Yum! Brands | 437 | 61 |
255 | ||
Household Durables 0.3% | ||
Lennar, Class A | 351 | 44 |
44 | ||
Specialty Retail 1.9% | ||
AutoZone (1) | 28 | 70 |
Best Buy | 1,166 | 95 |
Home Depot | 217 | 67 |
TJX | 420 | 36 |
268 | ||
Total Consumer Discretionary | 642 | |
CONSUMER STAPLES 9.8% | ||
Beverages 1.4% | ||
Coca-Cola | 1,404 | 85 |
Diageo, ADR | 498 | 86 |
Keurig Dr Pepper | 1,071 | 33 |
204 | ||
Consumer Staples Distribution & Retail 2.2% | ||
Dollar General | 122 | 21 |
Walmart | 1,850 | 291 |
312 | ||
Food Products 2.1% | ||
Conagra Brands | 3,808 | 129 |
General Mills | 325 | 25 |
Mondelez International | 1,431 | 104 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Tyson Foods, Class A | 781 | 40 |
298 | ||
Household Products 1.7% | ||
Colgate-Palmolive | 802 | 62 |
Kimberly-Clark | 724 | 100 |
Procter & Gamble | 499 | 75 |
237 | ||
Personal Care Products 0.2% | ||
Kenvue (1) | 965 | 25 |
25 | ||
Tobacco 2.2% | ||
Philip Morris International | 3,101 | 303 |
303 | ||
Total Consumer Staples | 1,379 | |
ENERGY 8.6% | ||
Energy Equipment & Services 0.9% | ||
Baker Hughes | 947 | 30 |
Halliburton | 2,808 | 93 |
123 | ||
Oil, Gas & Consumable Fuels 7.7% | ||
Chevron | 812 | 128 |
ConocoPhillips | 1,437 | 149 |
Devon Energy | 827 | 40 |
EOG Resources | 909 | 104 |
Exxon Mobil | 2,828 | 303 |
Pioneer Natural Resources | 209 | 43 |
TC Energy | 2,221 | 90 |
Shares | $ Value | |
(Cost and value in $000s) | ||
TotalEnergies, ADR | 3,860 | 222 |
1,079 | ||
Total Energy | 1,202 | |
FINANCIALS 18.6% | ||
Banks 7.9% | ||
Bank of America | 9,592 | 275 |
Citigroup | 0 | - |
Fifth Third Bancorp | 4,905 | 129 |
Huntington Bancshares | 8,494 | 92 |
JPMorgan Chase | 650 | 94 |
US Bancorp | 5,581 | 184 |
Wells Fargo | 7,636 | 326 |
1,100 | ||
Capital Markets 2.1% | ||
BlackRock | 68 | 47 |
Cboe Global Markets | 361 | 50 |
Charles Schwab | 1,451 | 82 |
Morgan Stanley | 902 | 77 |
S&P Global | 90 | 36 |
292 | ||
Consumer Finance 0.6% | ||
Capital One Financial | 265 | 29 |
Discover Financial Services | 514 | 60 |
89 | ||
Financial Services 3.1% | ||
Apollo Global Management | 646 | 50 |
Equitable Holdings | 3,805 | 103 |
Fiserv (1) | 1,949 | 246 |
FleetCor Technologies (1) | 158 | 40 |
439 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Insurance 4.9% | ||
American International Group | 2,867 | 165 |
Chubb | 1,179 | 227 |
Hartford Financial Services Group | 2,970 | 214 |
Marsh & McLennan | 399 | 75 |
681 | ||
Total Financials | 2,601 | |
HEALTH CARE 18.2% | ||
Biotechnology 1.0% | ||
AbbVie | 490 | 66 |
Regeneron Pharmaceuticals (1) | 52 | 38 |
Vertex Pharmaceuticals (1) | 108 | 38 |
142 | ||
Health Care Equipment & Supplies 4.0% | ||
Baxter International | 1,891 | 86 |
Becton Dickinson | 849 | 224 |
Medtronic | 873 | 77 |
Zimmer Biomet Holdings | 1,131 | 165 |
552 | ||
Health Care Providers & Services 6.7% | ||
Cigna | 637 | 179 |
CVS Health | 1,631 | 113 |
Elevance Health | 636 | 283 |
HCA Healthcare | 189 | 57 |
McKesson | 350 | 149 |
Molina Healthcare (1) | 164 | 49 |
UnitedHealth Group | 218 | 105 |
935 | ||
Life Sciences Tools & Services 1.4% | ||
Agilent Technologies | 374 | 45 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Danaher | 242 | 58 |
Thermo Fisher Scientific | 188 | 98 |
201 | ||
Pharmaceuticals 5.1% | ||
Bristol-Myers Squibb | 514 | 33 |
Elanco Animal Health (1) | 2,849 | 29 |
Eli Lilly | 294 | 138 |
Johnson & Johnson | 1,393 | 230 |
Merck | 1,524 | 176 |
Pfizer | 2,330 | 85 |
Zoetis | 162 | 28 |
719 | ||
Total Health Care | 2,549 | |
INDUSTRIALS & BUSINESS SERVICES 12.3% | ||
Aerospace & Defense 2.1% | ||
Howmet Aerospace | 590 | 29 |
L3Harris Technologies | 912 | 178 |
TransDigm Group (1) | 98 | 88 |
295 | ||
Air Freight & Logistics 0.8% | ||
United Parcel Service, Class B | 626 | 112 |
112 | ||
Building Products 0.4% | ||
Trane Technologies | 310 | 59 |
59 | ||
Commercial Services & Supplies 0.6% | ||
Republic Services | 526 | 81 |
81 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Electrical Equipment 1.0% | ||
Hubbell | 442 | 147 |
147 | ||
Ground Transportation 1.7% | ||
Canadian Pacific Kansas City | 902 | 73 |
CSX | 2,358 | 80 |
Norfolk Southern | 245 | 56 |
Union Pacific | 170 | 35 |
244 | ||
Industrial Conglomerates 2.4% | ||
General Electric | 1,168 | 129 |
Roper Technologies | 77 | 37 |
Siemens, ADR | 2,017 | 168 |
334 | ||
Machinery 2.6% | ||
Cummins | 668 | 164 |
Otis Worldwide | 487 | 43 |
Stanley Black & Decker | 1,615 | 151 |
358 | ||
Passenger Airlines 0.4% | ||
United Airlines Holdings (1) | 1,067 | 58 |
58 | ||
Trading Companies & Distributors 0.3% | ||
United Rentals | 86 | 38 |
38 | ||
Total Industrials & Business Services | 1,726 |
Shares | $ Value | |
(Cost and value in $000s) | ||
INFORMATION TECHNOLOGY 8.1% | ||
Communications Equipment 0.4% | ||
Motorola Solutions | 196 | 57 |
57 | ||
Electronic Equipment, Instruments & Components 0.4% | ||
CDW | 259 | 47 |
47 | ||
IT Services 0.5% | ||
Accenture, Class A | 234 | 72 |
72 | ||
Semiconductors & Semiconductor Equipment 5.0% | ||
Advanced Micro Devices (1) | 272 | 31 |
Applied Materials | 502 | 73 |
Entegris | 188 | 21 |
Marvell Technology | 724 | 43 |
Microchip Technology | 574 | 51 |
Micron Technology | 843 | 53 |
ON Semiconductor (1) | 832 | 79 |
QUALCOMM | 2,074 | 247 |
Taiwan Semiconductor Manufacturing, ADR | 488 | 49 |
Texas Instruments | 303 | 55 |
702 | ||
Software 0.6% | ||
Microsoft | 261 | 89 |
89 | ||
Technology Hardware, Storage & Peripherals 1.2% | ||
Samsung Electronics, GDR | 45 | 63 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Western Digital (1) | 2,854 | 108 |
171 | ||
Total Information Technology | 1,138 | |
MATERIALS 3.9% | ||
Chemicals 2.5% | ||
CF Industries Holdings | 1,763 | 122 |
Linde | 298 | 114 |
Nutrien | 458 | 27 |
RPM International | 999 | 90 |
353 | ||
Containers & Packaging 1.0% | ||
Avery Dennison | 245 | 42 |
Ball | 502 | 29 |
International Paper | 2,247 | 72 |
143 | ||
Metals & Mining 0.4% | ||
BHP Group, ADR | 823 | 49 |
49 | ||
Total Materials | 545 | |
REAL ESTATE 4.1% | ||
Industrial REITs 0.4% | ||
Prologis, REIT | 448 | 55 |
55 | ||
Residential REITs 1.9% | ||
AvalonBay Communities, REIT | 1,373 | 260 |
260 | ||
Specialized REITs 1.8% | ||
Equinix, REIT | 59 | 46 |
Lamar Advertising, Class A, REIT | 309 | 31 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Public Storage, REIT | 149 | 43 |
Weyerhaeuser, REIT | 4,089 | 137 |
257 | ||
Total Real Estate | 572 | |
UTILITIES 5.8% | ||
Electric Utilities 3.2% | ||
Duke Energy | 448 | 40 |
Entergy | 378 | 37 |
NextEra Energy | 793 | 59 |
Southern | 4,391 | 308 |
444 | ||
Multi-Utilities 2.6% | ||
Ameren | 1,023 | 84 |
Dominion Energy | 2,210 | 115 |
DTE Energy | 448 | 49 |
Sempra Energy | 818 | 119 |
367 | ||
Total Utilities | 811 | |
Total Common Stocks (Cost $13,696) | 13,933 | |
SHORT-TERM INVESTMENTS 0.6% | ||
Money Market Funds 0.6% | ||
State Street Institutional U.S. Government Money Market Fund, 5.03% (2) | 85,411 | 85 |
Total Short-Term Investments (Cost $85) | 85 | |
Total Investments in Securities 100.1% of Net Assets (Cost $13,781) | $14,018 |
‡ | Shares are denominated in U.S. dollars unless otherwise noted. |
(1) | Non-income producing. |
(2) | Seven-day yield |
ADR | American Depositary Receipts |
GDR | Global Depositary Receipts |
REIT | A domestic Real Estate Investment Trust whose distributions pass-through with original tax character to the shareholder |
Assets | |
Investments in securities, at value (cost $13,781) | $ 14,018 |
Receivable for investment securities sold | 75 |
Dividends receivable | 20 |
Total assets | 14,113 |
Liabilities | |
Payable for investment securities purchased | 108 |
Investment management and administrative fees payable | 2 |
Total liabilities | 110 |
NET ASSETS | $ 14,003 |
Net assets consists of: | |
Total distributable earnings (loss) | $ 253 |
Paid-in capital applicable to 550,000 shares of $0.0001 par value capital stock outstanding; 4,000,000,000 shares authorized | 13,750 |
NET ASSETS | $14,003 |
NET ASSET VALUE PER SHARE | $ 25.46 |
6/14/23 Through | |
6/30/23 | |
Investment Income (Loss) | |
Dividend income (net of foreign taxes of $1) | $ 22 |
Investment management and administrative expense | 2 |
Net investment income | 20 |
Realized and Unrealized Gain / Loss | |
Net realized loss on securities | (4) |
Change in net unrealized gain / loss on securities | 237 |
Net realized and unrealized gain / loss | 233 |
INCREASE IN NET ASSETS FROM OPERATIONS | $253 |
6/14/23 Through | |
6/30/23 | |
Increase (Decrease) in Net Assets | |
Operations | |
Net investment income | $ 20 |
Net realized loss | (4) |
Change in net unrealized gain / loss | 237 |
Increase in net assets from operations | 253 |
Capital share transactions* | |
Shares sold | 13,750 |
Increase in net assets from capital share transactions | 13,750 |
Net Assets | |
Increase during period | 14,003 |
Beginning of period | - |
End of period | $14,003 |
*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 |
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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 |