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, 2024
Item 1. Reports to Shareholders
(a) Report pursuant to Rule 30e-1
Semi-Annual Shareholder Report
June 30, 2024
Value ETF (TVAL)
Principal Listing Exchange: NYSE Arca, Inc.
This semiannual shareholder report contains important information about Value ETF ("the fund") for the period of January 1, 2024 to June 30, 2024. You can find the fund’s prospectus, financial information on Form N-CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information at www.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1-800-638-5660 or info@troweprice.com or by contacting your intermediary.
What were the fund costs for the last year? (based on a hypothetical $10,000 investment)
Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment | |
---|---|---|
Value ETF | $17 | 0.33% |
What are some fund statistics?
Fund Statistics
- Total Net Assets (000s)$73,383
- Number of Portfolio Holdings148
- Portfolio Turnover Rate5.2%
What did the fund invest in?
Sector Allocation (as a % of Net Assets)
Financials | 20.9% |
Health Care | 15.3 |
Industrials & Business Services | 14.6 |
Information Technology | 11.4 |
Energy | 9.0 |
Consumer Staples | 8.8 |
Communication Services | 5.3 |
Utilities | 4.4 |
Consumer Discretionary | 3.8 |
Other | 6.5 |
Top Ten Holdings (as a % of Net Assets)
Exxon Mobil | 2.6% |
Wells Fargo | 2.5 |
Elevance Health | 2.2 |
QUALCOMM | 2.1 |
Walmart | 2.0 |
Chubb | 2.0 |
Hartford Financial Services Group | 1.9 |
Bank of America | 1.7 |
Southern | 1.7 |
Eli Lilly | 1.6 |
If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.
T. Rowe Price Investment Services, Inc.
100 East Pratt Street
Baltimore, MD 21202
Value ETF (TVAL)
Principal Listing Exchange: NYSE Arca, Inc.
202407-3725262
ETF1074-053 08/24
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 7 of this Form N-CSR.
(b) Not applicable.
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
(a – b) Report pursuant to Regulation S-X.
T. ROWE PRICE | |
TVAL | Value ETF |
For more insights from T. Rowe Price investment professionals, go to troweprice.com. |
6 Months Ended | 6/14/23(1) Through | |
6/30/24 | 12/31/23 | |
NET ASSET VALUE | ||
Beginning of period | $ 27.22 | $ 25.00 |
Investment activities | ||
Net investment income(2) (3) | 0.27 | 0.34 |
Net realized and unrealized gain/loss | 2.46 | 2.05 |
Total from investment activities | 2.73 | 2.39 |
Distributions | ||
Net investment income | - | (0.17) |
NET ASSET VALUE | ||
End of period | $ 29.95 | $ 27.22 |
Ratios/Supplemental Data | ||
Total return, based on NAV(3) (4) | 10.03% | 9.59% |
Ratios to average net assets:(3) | ||
Gross expenses before waivers/payments by Price Associates | 0.33%(5) | 0.33%(5) |
Net expenses after waivers/payments by Price Associates | 0.33%(5) | 0.33%(5) |
Net investment income | 1.85%(5) | 2.43%(5) |
Portfolio turnover rate(6) | 5.2% | 8.8% |
Net assets, end of period (in thousands) | $ 73,383 | $ 57,159 |
(1) | Inception date |
(2) | Per share amounts calculated using average shares outstanding method. |
(3) | Includes the impact of 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 each period, assuming reinvestment of all distributions. Total return is not annualized for periods less than one year. |
(5) | Annualized |
(6) | Portfolio turnover excludes securities received or delivered through in-kind share transactions. |
PORTFOLIO OF INVESTMENTS‡ | Shares | $ Value |
(Cost and value in $000s) | ||
COMMON STOCKS 99.4% | ||
COMMUNICATION SERVICES 5.3% | ||
Diversified Telecommunication Services 0.9% | ||
Verizon Communications | 15,410 | 635 |
635 | ||
Interactive Media & Services 2.1% | ||
Alphabet, Class C | 4,325 | 793 |
Meta Platforms, Class A | 1,422 | 717 |
1,510 | ||
Media 1.3% | ||
News, Class A | 34,923 | 963 |
963 | ||
Wireless Telecommunication Services 1.0% | ||
T-Mobile US | 4,375 | 771 |
771 | ||
Total Communication Services | 3,879 | |
CONSUMER DISCRETIONARY 3.8% | ||
Hotels, Restaurants & Leisure 2.0% | ||
Las Vegas Sands | 6,283 | 278 |
Marriott International, Class A | 1,136 | 275 |
McDonald's | 1,760 | 448 |
MGM Resorts International (1) | 4,787 | 213 |
Yum! Brands | 2,025 | 268 |
1,482 | ||
Household Durables 0.4% | ||
Lennar, Class A | 2,047 | 307 |
307 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Specialty Retail 1.4% | ||
AutoZone (1) | 119 | 353 |
Home Depot | 1,212 | 417 |
TJX | 1,940 | 214 |
984 | ||
Total Consumer Discretionary | 2,773 | |
CONSUMER STAPLES 8.8% | ||
Beverages 0.9% | ||
Coca-Cola | 6,624 | 422 |
Keurig Dr Pepper | 7,293 | 243 |
665 | ||
Consumer Staples Distribution & Retail 2.0% | ||
Walmart | 21,947 | 1,486 |
1,486 | ||
Food Products 1.2% | ||
Conagra Brands | 14,554 | 414 |
Mondelez International, Class A | 4,593 | 301 |
Tyson Foods, Class A | 2,407 | 137 |
852 | ||
Household Products 2.4% | ||
Colgate-Palmolive | 6,948 | 674 |
Kimberly-Clark | 3,338 | 461 |
Procter & Gamble | 3,913 | 646 |
1,781 | ||
Personal Care Products 0.9% | ||
Kenvue | 37,284 | 678 |
678 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Tobacco 1.4% | ||
Philip Morris International | 9,987 | 1,012 |
1,012 | ||
Total Consumer Staples | 6,474 | |
ENERGY 9.0% | ||
Energy Equipment & Services 0.6% | ||
Halliburton | 12,546 | 424 |
424 | ||
Oil, Gas & Consumable Fuels 8.4% | ||
Chesapeake Energy | 2,617 | 215 |
Chevron | 3,032 | 474 |
ConocoPhillips | 6,733 | 770 |
Diamondback Energy | 1,524 | 305 |
EOG Resources | 5,207 | 655 |
EQT | 9,742 | 360 |
Exxon Mobil | 16,663 | 1,918 |
TotalEnergies, ADR (2) | 17,630 | 1,176 |
Williams | 7,802 | 332 |
6,205 | ||
Total Energy | 6,629 | |
FINANCIALS 20.9% | ||
Banks 8.4% | ||
Bank of America | 31,746 | 1,262 |
Citigroup | 8,675 | 550 |
Fifth Third Bancorp | 15,893 | 580 |
Huntington Bancshares | 23,723 | 313 |
JPMorgan Chase | 5,803 | 1,174 |
US Bancorp | 9,511 | 378 |
Wells Fargo | 31,477 | 1,869 |
6,126 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Capital Markets 3.0% | ||
Ares Management | 2,268 | 302 |
BlackRock | 296 | 233 |
Cboe Global Markets | 1,115 | 190 |
Charles Schwab | 9,498 | 700 |
CME Group | 826 | 162 |
Morgan Stanley | 4,200 | 408 |
S&P Global | 394 | 176 |
2,171 | ||
Consumer Finance 0.3% | ||
Capital One Financial | 1,731 | 240 |
240 | ||
Financial Services 3.3% | ||
Apollo Global Management | 2,888 | 341 |
Corpay (1) | 1,036 | 276 |
Equitable Holdings | 18,461 | 754 |
Fiserv (1) | 7,137 | 1,064 |
2,435 | ||
Insurance 5.9% | ||
American International Group | 14,220 | 1,056 |
Chubb | 5,646 | 1,440 |
Hartford Financial Services Group | 13,624 | 1,370 |
Marsh & McLennan | 2,329 | 491 |
4,357 | ||
Total Financials | 15,329 | |
HEALTH CARE 15.3% | ||
Biotechnology 1.1% | ||
AbbVie | 1,415 | 242 |
Regeneron Pharmaceuticals (1) | 310 | 326 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Vertex Pharmaceuticals (1) | 488 | 229 |
797 | ||
Health Care Equipment & Supplies 1.8% | ||
Baxter International | 5,877 | 196 |
Becton Dickinson | 2,977 | 696 |
Zimmer Biomet Holdings | 3,802 | 413 |
1,305 | ||
Health Care Providers & Services 5.7% | ||
Cigna | 1,955 | 646 |
CVS Health | 2,812 | 166 |
Elevance Health | 2,934 | 1,590 |
HCA Healthcare | 873 | 281 |
McKesson | 1,380 | 806 |
Molina Healthcare (1) | 626 | 186 |
UnitedHealth Group | 993 | 506 |
4,181 | ||
Life Sciences Tools & Services 1.5% | ||
Agilent Technologies | 1,734 | 225 |
Danaher | 1,828 | 456 |
Thermo Fisher Scientific | 770 | 426 |
1,107 | ||
Pharmaceuticals 5.2% | ||
AstraZeneca, ADR | 1,800 | 140 |
Elanco Animal Health (1) | 23,533 | 340 |
Eli Lilly | 1,320 | 1,195 |
Johnson & Johnson | 7,544 | 1,103 |
Merck | 7,515 | 930 |
Zoetis | 900 | 156 |
3,864 | ||
Total Health Care | 11,254 |
Shares | $ Value | |
(Cost and value in $000s) | ||
INDUSTRIALS & BUSINESS SERVICES 14.6% | ||
Aerospace & Defense 4.3% | ||
Boeing (1) | 2,872 | 523 |
General Electric | 4,984 | 792 |
Howmet Aerospace | 5,246 | 407 |
L3Harris Technologies | 4,149 | 932 |
TransDigm Group | 382 | 488 |
3,142 | ||
Air Freight & Logistics 0.3% | ||
United Parcel Service, Class B | 1,610 | 220 |
220 | ||
Building Products 0.5% | ||
Carrier Global | 2,641 | 167 |
Trane Technologies | 621 | 204 |
371 | ||
Commercial Services & Supplies 0.6% | ||
Republic Services | 2,418 | 470 |
470 | ||
Electrical Equipment 1.6% | ||
AMETEX | 1,407 | 235 |
GE Vernova (1) | 2,525 | 433 |
Hubbell | 1,366 | 499 |
1,167 | ||
Ground Transportation 1.6% | ||
Canadian Pacific Kansas City | 1,558 | 123 |
CSX | 10,960 | 366 |
Norfolk Southern | 1,766 | 379 |
Union Pacific | 1,316 | 298 |
1,166 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Industrial Conglomerates 2.2% | ||
3M | 2,129 | 218 |
Honeywell International | 1,655 | 353 |
Roper Technologies | 411 | 232 |
Siemens, ADR | 8,711 | 812 |
1,615 | ||
Machinery 2.7% | ||
Caterpillar | 702 | 234 |
Cummins | 2,458 | 681 |
Deere | 656 | 245 |
Otis Worldwide | 2,235 | 215 |
Stanley Black & Decker | 7,383 | 590 |
1,965 | ||
Passenger Airlines 0.2% | ||
United Airlines Holdings (1) | 2,531 | 123 |
123 | ||
Professional Services 0.3% | ||
Equifax | 871 | 211 |
211 | ||
Trading Companies & Distributors 0.3% | ||
Ferguson | 1,389 | 269 |
269 | ||
Total Industrials & Business Services | 10,719 | |
INFORMATION TECHNOLOGY 11.4% | ||
Communications Equipment 0.3% | ||
Motorola Solutions | 598 | 231 |
231 | ||
Electronic Equipment, Instruments & Components 1.0% | ||
CDW | 865 | 193 |
Shares | $ Value | |
(Cost and value in $000s) | ||
Keysight Technologies (1) | 1,416 | 194 |
TE Connectivity | 2,192 | 330 |
717 | ||
IT Services 0.5% | ||
Accenture, Class A | 1,070 | 325 |
325 | ||
Semiconductors & Semiconductor Equipment 6.7% | ||
Analog Devices | 1,191 | 272 |
Applied Materials | 2,288 | 540 |
Entegris | 1,352 | 183 |
Intel | 22,105 | 684 |
Marvell Technology | 3,300 | 231 |
Microchip Technology | 2,656 | 243 |
Micron Technology | 3,413 | 449 |
QUALCOMM | 7,631 | 1,520 |
Taiwan Semiconductor Manufacturing, ADR | 2,236 | 389 |
Texas Instruments | 2,063 | 401 |
4,912 | ||
Software 0.7% | ||
Microsoft | 1,173 | 524 |
524 | ||
Technology Hardware, Storage & Peripherals 2.2% | ||
Samsung Electronics, GDR | 412 | 604 |
Western Digital (1) | 13,610 | 1,031 |
1,635 | ||
Total Information Technology | 8,344 | |
MATERIALS 3.1% | ||
Chemicals 1.8% | ||
CF Industries Holdings | 4,743 | 352 |
Linde | 1,362 | 598 |
Shares | $ Value | |
(Cost and value in $000s) | ||
RPM International | 3,347 | 360 |
1,310 | ||
Construction Materials 0.2% | ||
Vulcan Materials | 690 | 171 |
171 | ||
Containers & Packaging 0.8% | ||
Avery Dennison | 657 | 144 |
International Paper | 10,228 | 441 |
585 | ||
Metals & Mining 0.3% | ||
BHP Group, ADR | 3,901 | 223 |
223 | ||
Total Materials | 2,289 | |
REAL ESTATE 2.8% | ||
Industrial REITs 0.3% | ||
Prologis, REIT | 2,074 | 233 |
233 | ||
Residential REITs 1.1% | ||
AvalonBay Communities, REIT | 3,879 | 802 |
802 | ||
Specialized REITs 1.4% | ||
Equinix, REIT | 143 | 108 |
Lamar Advertising, Class A, REIT | 1,729 | 207 |
Public Storage, REIT | 681 | 196 |
Weyerhaeuser, REIT | 17,362 | 493 |
1,004 | ||
Total Real Estate | 2,039 |
Shares | $ Value | |
(Cost and value in $000s) | ||
UTILITIES 4.4% | ||
Electric Utilities 2.0% | ||
NextEra Energy | 3,203 | 227 |
Southern | 15,869 | 1,231 |
1,458 | ||
Independent Power & Renewable Electricity Producer 0.7% | ||
Vistra | 6,244 | 537 |
537 | ||
Multi-Utilities 1.7% | ||
Ameren | 4,497 | 320 |
Dominion Energy | 8,166 | 400 |
DTE Energy | 1,043 | 116 |
Sempra | 5,424 | 412 |
1,248 | ||
Total Utilities | 3,243 | |
Total Common Stocks (Cost $62,400) | 72,972 | |
SHORT-TERM INVESTMENTS 0.5% | ||
Money Market Funds 0.5% | ||
State Street Institutional U.S. Government Money Market Fund, 5.25% (3) | 337,277 | 337 |
Total Short-Term Investments (Cost $337) | 337 |
Shares | $ Value | |
(Cost and value in $000s) | ||
SECURITIES LENDING COLLATERAL 1.5% | ||
Investments in a Pooled Account through Securities Lending Program with State Street Bank 1.5% | ||
Money Market Funds 1.5% | ||
T. Rowe Price Government Reserve Fund, 5.38% (3)(4) | 1,078,956 | 1,079 |
Total Investments in a Pooled Account through Securities Lending Program with State Street Bank | 1,079 | |
Total Securities Lending Collateral (Cost $1,079) | 1,079 | |
Total Investments in Securities 101.4% of Net Assets (Cost $63,816) | $74,388 |
‡ | Shares are denominated in U.S. dollars unless otherwise noted. |
(1) | Non-income producing. |
(2) | All or a portion of this security is on loan at June 30, 2024. See Note 3. |
(3) | Seven-day yield |
(4) | Affiliated Companies |
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 |
Affiliate | Net Realized Gain (Loss) | Changes in Net Unrealized Gain/Loss | Investment Income |
T. Rowe Price Government Reserve Fund | $— | $— | $—++ |
Totals | $—# | $— | $—+ |
Supplementary Investment Schedule | ||||
Affiliate | Value 12/31/23 | Purchase Cost | Sales Cost | Value 6/30/24 |
T. Rowe Price Government Reserve Fund | $— | ¤ | ¤ | $1,079 |
Total | $1,079^ |
++ | Excludes earnings on securities lending collateral, which are subject to rebates and fees as described in Note 3. |
# | Capital gain distributions from mutual funds represented $0 of the net realized gain (loss). |
+ | Investment income comprised $0 of dividend income and $0 of interest income. |
¤ | Purchase and sale information not shown for cash management funds. |
^ | The cost basis of investments in affiliated companies was $1,079. |
Assets | |
Investments in securities, at value (cost $63,816) | $74,388 |
Dividends receivable | 94 |
Total assets | 74,482 |
Liabilities | |
Obligation to return securities lending collateral | 1,079 |
Investment management and administrative fees payable | 20 |
Total liabilities | 1,099 |
NET ASSETS | $73,383 |
Net assets consists of: | |
Total distributable earnings (loss) | $11,926 |
Paid-in capital applicable to 2,450,000 shares of $0.0001 par value capital stock outstanding; 4,000,000,000 shares authorized | 61,457 |
NET ASSETS | $73,383 |
NET ASSET VALUE PER SHARE | $29.95 |
6 Months Ended | |
6/30/24 | |
Investment Income (Loss) | |
Income | |
Dividend (net of foreign taxes of $8) | $711 |
Securities lending | 2 |
Total income | 713 |
Investment management and administrative expense | 108 |
Net investment income | 605 |
Realized and Unrealized Gain / Loss | |
Net realized gain (loss) | |
Securities | (149) |
In-kind redemptions | 1,085 |
Net realized gain | 936 |
Change in net unrealized gain / loss on securities | 4,576 |
Net realized and unrealized gain / loss | 5,512 |
INCREASE IN NET ASSETS FROM OPERATIONS | $6,117 |
6 Months Ended | 6/14/23 Through | ||
6/30/24 | 12/31/23 | ||
Increase (Decrease) in Net Assets | |||
Operations | |||
Net investment income | $605 | $362 | |
Net realized gain (loss) | 936 | (187) | |
Change in net unrealized gain / loss | 4,576 | 5,996 | |
Increase in net assets from operations | 6,117 | 6,171 | |
Distributions to shareholders | |||
Net earnings | — | (367) | |
Capital share transactions* | |||
Shares sold | 14,466 | 51,355 | |
Shares redeemed | (4,359) | — | |
Increase in net assets from capital share transactions | 10,107 | 51,355 | |
Net Assets | |||
Increase during period | 16,224 | 57,159 | |
Beginning of period | 57,159 | - | |
End of period | $73,383 | $57,159 | |
*Share information | |||
Shares sold | 500 | 2,100 | |
Shares redeemed | (150) | — | |
Increase in shares outstanding | 350 | 2,100 |
($000s) | Level 1 | Level 2 | Level 3 | Total Value |
Assets | ||||
Common Stocks | $72,368 | $604 | $— | $72,972 |
Short-Term Investments | 337 | — | — | 337 |
Securities Lending Collateral | 1,079 | — | — | 1,079 |
Total | $73,784 | $604 | $— | $74,388 |
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Remuneration paid to Directors is included in Item 7 of this Form N-CSR and/or the Statement of Additional Information.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
If applicable, see Item 7.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. 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 16. 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 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
Not applicable.
Item 19. 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) | Listing standards relating to recovery of erroneously awarded compensation: Not applicable. | |
(3) | ||
(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 Value ETF | ||||
By | /s/ David Oestreicher | |||
David Oestreicher | ||||
Principal Executive Officer | ||||
Date | August 20, 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/ David Oestreicher | |||
David Oestreicher | ||||
Principal Executive Officer | ||||
Date | August 20, 2024 |
By | /s/ Alan S. Dupski | |||
Alan S. Dupski | ||||
Principal Financial Officer | ||||
Date | August 20, 2024 |