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: 811-23759
Thrivent ETF Trust
(Exact name of registrant as specified in charter)
901 Marquette Avenue, Suite 2500
Minneapolis, Minnesota 55402-3211
(Address of principal executive offices) (Zip code)
John D. Jackson
Secretary and Chief Legal Officer
Thrivent ETF Trust
901 Marquette Avenue, Suite 2500
Minneapolis, Minnesota 55402-3211
(Name and address of agent for service)
Registrant’s telephone number, including area code: (612) 844-7190
Date of fiscal year end: September 30
Date of reporting period: September 30, 2023
Item 1. Report to Stockholders
(a) | A copy of the registrant’s report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the “Act”), as amended, is provided. |
President
Thrivent ETF Trust
This ETF is different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example: |
• You may have to pay more money to trade the ETF’s shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information. |
• The price you pay to buy ETF shares on an exchange may not match the value of the ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders. |
• These additional risks may be even greater in bad or uncertain market conditions. |
• The ETF will publish on its website each day a “Proxy Portfolio” designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF’s holdings, it is not the ETF’s actual portfolio. |
The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF’s performance. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance. For additional information regarding the unique attributes and risks of the ETF, see the Principal Risks section of the prospectus. |
Unsurprisingly, the much-lauded strength of the consumer continued to ebb over the quarter, particularly in lower-income segments where loan delinquencies rose and short-term pay-day loans rose 35% in the past year, according to data from LexisNexis. More broadly, total credit card debt surged to above a record $1 trillion, according to the Fed, while the latest Fed study of household finances indicated that most U.S. households have depleted their excess savings (built up in part by pandemic stimulus payments) to the point where they now have less than they did before COVID.
After a strong first half to the year, the S&P 500 Index dropped 3.56% in the third quarter as the combination of slowing growth and higher Treasury rates weighed on investor optimism for a soft landing. Over the period, the index fell from 4,450.38 at the end of June, to 4,288.05 at the end of September. The total return of the S&P 500 (including dividends) was -3.27% lowering its year-to-date total return to 13.07%. Of the S&P 500’s 11 sectors, all but Energy and Communication Services had a negative return in the third quarter. Energy was the strongest performer, fueled by surging oil prices.
Some investors might have been surprised by how well the U.S. stock market performed in the first half of 2023, a period when the Fed was actively raising interest rates. But the economy was outperforming expectations, in part because earnings expectations had fallen so low. It takes time—a year or more—before the full impact of higher rates starts filtering through the economy via higher borrowing costs for mortgages, credit cards, and loans to corporations. It is often easier to shrug off the impact of tighter future monetary conditions when weekly economic headlines say everything is coming up roses.
Chief Investment Officer
Thrivent ETF Trust
Portfolio Composition | |
(% of Portfolio) | |
Common Stock | 98.3% |
U.S. Treasury Obligations | 1.7% |
Total | 100.0% |
Major Market Sectors | |
(% of Net Assets) | |
Industrials | 22.2% |
Information Technology | 15.2% |
Financials | 15.1% |
Consumer Discretionary | 11.2% |
Health Care | 9.9% |
Materials | 7.7% |
Real Estate | 7.1% |
Consumer Staples | 4.8% |
Energy | 2.6% |
Utilities | 2.4% |
Top 10 Holdings | ||
(% of Net Assets) | ||
Celestica, Inc. | 2.8% | |
Arch Capital Group, Ltd. | 2.6% | |
Quanta Services, Inc. | 2.5% | |
Fair Isaac Corp. | 2.3% | |
Timken Co. | 2.3% | |
Wyndham Hotels & Resorts, Inc. | 2.3% | |
Modine Manufacturing Co. | 2.2% | |
Kinsale Capital Group, Inc. | 2.1% | |
Littelfuse, Inc. | 2.0% | |
Ameriprise Financial, Inc. | 2.0% | |
These securities represent 23.1% of the total net assets of the fund. |
The lists of Major Market Sectors and Top 10 Holdings exclude short-term investments and collateral held for securities loaned.
The Portfolio Composition chart excludes collateral held for securities loaned. The Top 10 Holdings chart does not include derivatives.
Average Annual Total Returns1 | |
As of September 30, 2023 | |
From Inception 10/5/2022 | |
Net Asset Value | 7.65% |
Market Price | 7.70% |
1 | Past performance is not an indication of future results.The prospectus contains more complete information on the investment objectives, risks, charges and expenses of the investment company, which investors should read and consider carefully before investing.To obtain a prospectus, contact a registered representative or visit thriventETFs.com.Total investment return and principal value of your investment will fluctuate, and your shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted. Call 800-847-4836 or visit thriventETFs.com for performance results current to the most recent month- end. Average annual total returns represent past performance and reflect changes in share prices, the reinvestment of all dividends and capital gains, and the effects of compounding. Periods of less than one year are not annualized. At various times, the Fund's adviser may have waived its management fee and/or reimbursed Fund expenses, without which the Fund's total returns would have been lower. The returns shown do not reflect taxes a shareholder would pay on distributions or redemptions. |
* | The Russell 2500 ® Index is a broad-based, market-cap-weighted index that is designed to measure the performance of mid- and small-capitalization U.S. equities. It is not possible to invest directly in the Index. The performance of the index does not reflect deductions for fees, expenses, or taxes. |
(unaudited)
Beginning Account Value 4/1/23 | Ending Account Value 9/30/23 | Expenses Paid During Period 4/1/23 – 9/30/23* | Annualized Expense Ratio | |
Thrivent Small-Mid Cap ESG ETF | ||||
Actual | $1,000.00 | $1,000.00 | $3.26 | 0.65 % |
Hypothetical** | $1,000.00 | $1,021.80 | $3.29 | 0.65 % |
* | Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period. |
** | Assuming 5% annualized total return before expenses. |
T: (612) 596 6000, www.pwc.com/us
Schedule of Investments as of September 30, 2023
Shares | Common Stock (98.2%) | Value |
Consumer Discretionary (11.2%) | ||
16,840 | Aptiv plc a | $1,660,256 |
64,934 | Modine Manufacturing Co. a | 2,970,730 |
342 | NVR, Inc. a | 2,039,449 |
54,650 | Savers Value Village, Inc. a | 1,020,316 |
29,277 | Skyline Champion Corp. a | 1,865,530 |
11,721 | Tractor Supply Co. | 2,379,949 |
43,619 | Wyndham Hotels & Resorts, Inc. | 3,033,265 |
Total | 14,969,495 | |
Consumer Staples (4.8%) | ||
174,577 | Coty, Inc. Class A a | 1,915,110 |
33,078 | Darling Ingredients, Inc. a | 1,726,672 |
54,157 | Grocery Outlet Holding Corp. a | 1,562,429 |
12,539 | Lamb Weston Holdings, Inc. | 1,159,356 |
Total | 6,363,567 | |
Energy (2.6%) | ||
87,113 | NOV, Inc. | 1,820,662 |
77,593 | TechnipFMC plc | 1,578,241 |
Total | 3,398,903 | |
Financials (15.1%) | ||
66,003 | Ally Financial, Inc. | 1,760,960 |
7,928 | Ameriprise Financial, Inc. | 2,613,703 |
42,917 | Arch Capital Group, Ltd. a | 3,420,914 |
31,805 | Banner Corp. | 1,347,896 |
90,958 | Cadence Bank | 1,930,129 |
46,875 | Enterprise Financial Services Corp. | 1,757,813 |
6,811 | Kinsale Capital Group, Inc. | 2,820,639 |
24,695 | Raymond James Financial, Inc. | 2,480,119 |
30,750 | Triumph Financial, Inc. a | 1,992,292 |
Total | 20,124,465 | |
Health Care (9.9%) | ||
19,793 | Bio-Techne Corp. | 1,347,309 |
24,793 | Halozyme Therapeutics, Inc. a | 947,093 |
7,483 | ICON plc a | 1,842,689 |
12,606 | Laboratory Corp. of America Holdings | 2,534,436 |
104,580 | Maravai LifeSciences Holdings, Inc. Class A a | 1,045,800 |
6,329 | Molina Healthcare, Inc. a | 2,075,216 |
35,522 | Progyny, Inc. a | 1,208,458 |
150,354 | R1 RCM, Inc. a | 2,265,835 |
Total | 13,266,836 | |
Industrials (22.2%) | ||
17,583 | Advanced Drainage Systems, Inc. | 2,001,473 |
24,938 | ASGN, Inc. a | 2,036,936 |
47,852 | Barnes Group, Inc. | 1,625,532 |
7,808 | Carlisle Cos., Inc. | 2,024,302 |
77,717 | Core & Main, Inc. Class A a | 2,242,136 |
9,520 | Kadant, Inc. | 2,147,236 |
4,168 | Paycom Software, Inc. | 1,080,637 |
17,885 | Quanta Services, Inc. | 3,345,747 |
13,914 | Regal Rexnord Corp. | 1,988,032 |
6,469 | Saia, Inc. a | 2,578,867 |
42,025 | Timken Co. | 3,088,417 |
28,107 | TransUnion | 2,017,802 |
2,495 | United Rentals, Inc. | 1,109,202 |
15,840 | WESCO International, Inc. | 2,278,109 |
Total | 29,564,428 |
Shares | Common Stock (98.2%) | Value |
Information Technology (15.2%) | ||
153,375 | Celestica, Inc. a | $3,760,755 |
19,433 | Entegris, Inc. | 1,824,953 |
3,599 | Fair Isaac Corp. a | 3,125,839 |
17,499 | Insight Enterprises, Inc. a | 2,546,105 |
20,538 | Lattice Semiconductor Corp. a | 1,764,830 |
10,764 | Littelfuse, Inc. | 2,662,152 |
10,140 | Nice, Ltd. ADR a | 1,723,800 |
5,225 | Tyler Technologies, Inc. a | 2,017,582 |
21,269 | Wolfspeed, Inc. a | 810,349 |
Total | 20,236,365 | |
Materials (7.7%) | ||
38,368 | Berry Global Group, Inc. | 2,375,363 |
24,329 | Eastman Chemical Co. | 1,866,521 |
35,470 | Ingevity Corp. a | 1,688,727 |
22,625 | Steel Dynamics, Inc. | 2,425,852 |
61,894 | Summit Materials, Inc. Class A a | 1,927,379 |
Total | 10,283,842 | |
Real Estate (7.1%) | ||
12,859 | Alexandria Real Estate Equities, Inc. | 1,287,186 |
11,633 | Extra Space Storage, Inc. | 1,414,340 |
13,037 | Mid-America Apartment Communities, Inc. | 1,677,210 |
49,546 | National Storage Affiliates Trust | 1,572,590 |
31,992 | Regency Centers Corp. | 1,901,605 |
32,621 | Rexford Industrial Realty, Inc. | 1,609,846 |
Total | 9,462,777 | |
Utilities (2.4%) | ||
60,902 | CenterPoint Energy, Inc. | 1,635,219 |
64,379 | NiSource, Inc. | 1,588,874 |
Total | 3,224,093 | |
Total Common Stock (Cost $125,089,515) | 130,894,771 |
Shares or Principal Amount | Short-Term Investments (1.6%) | Value |
2,200,000 | U.S. Treasury Bills, 5.31%, 10/03/2023 b | 2,199,678 |
Total Short-Term Investments (Cost $2,199,360) | 2,199,678 | |
Total Investments (Cost $127,288,875) 99.8% | 133,094,449 | |
Other Assets and Liabilities, Net 0.2% | 266,258 | |
Total Net Assets 100.0% | $133,360,707 |
a | Non-income producing security. |
b | The interest rate shown reflects the yield. |
Definitions: | ||
ADR | – | American Depositary Receipt, which are certificates for an underlying foreign security's shares held by an issuing U.S. depository bank. |
Schedule of Investments as of September 30, 2023
Gross unrealized appreciation | $13,900,448 |
Gross unrealized depreciation | (8,139,025) |
Net unrealized appreciation (depreciation) | $5,761,423 |
Cost for federal income tax purposes | $127,333,026 |
Schedule of Investments as of September 30, 2023
Investments in Securities | Total | Level 1 | Level 2 | Level 3 |
Common Stock | ||||
Consumer Discretionary | $14,969,495 | $14,969,495 | $— | $— |
Consumer Staples | 6,363,567 | 6,363,567 | — | — |
Energy | 3,398,903 | 3,398,903 | — | — |
Financials | 20,124,465 | 20,124,465 | — | — |
Health Care | 13,266,836 | 13,266,836 | — | — |
Industrials | 29,564,428 | 29,564,428 | — | — |
Information Technology | 20,236,365 | 20,236,365 | — | — |
Materials | 10,283,842 | 10,283,842 | — | — |
Real Estate | 9,462,777 | 9,462,777 | — | — |
Utilities | 3,224,093 | 3,224,093 | — | — |
Short-Term Investments | 2,199,678 | — | 2,199,678 | — |
Total Investments at Value | $133,094,449 | $130,894,771 | $2,199,678 | $— |
Statement of Assets and Liabilities
As of September 30, 2023 | Small-Mid Cap ESG ETF |
Assets | |
Investments in unaffiliated securities at cost | $127,288,875 |
Investments in unaffiliated securities, at value | 133,094,449 |
Cash | 96,431 |
Dividends and interest receivable | 115,632 |
Receivable for: | |
Investments sold | 2,143,000 |
Total Assets | 135,449,512 |
Liabilities | |
Payable for: | |
Investments purchased | 2,015,535 |
Investment advisory fees | 73,270 |
Total Liabilities | 2,088,805 |
Net Assets | |
Capital stock (beneficial interest) | 130,038,991 |
Distributable earnings/(accumulated loss) | 3,321,716 |
Total Net Assets | $133,360,707 |
Shares of beneficial interest outstanding | 4,794,000 |
Net asset value per share | $27.82 |
Statement of Operations
For the period ended September 30, 2023 | Small-Mid Cap ESG ETF# |
Investment Income | |
Dividend | $1,277,438 |
Interest | 64,893 |
Other | 15 |
Total Investment Income | 1,342,346 |
Expenses | |
Adviser fees | 662,431 |
Total Net Expenses | 662,431 |
Net Investment Income/(Loss) | 679,915 |
Realized and Unrealized Gains/(Losses) | |
Net realized gains/(losses) on: | |
Investments | (3,059,407) |
In-kind redemptions | 314,318 |
Change in net unrealized appreciation/(depreciation) on: | |
Investments | 5,805,574 |
Net Realized and Unrealized Gains/(Losses) | 3,060,485 |
Net Increase/(Decrease) in Net Assets Resulting From Operations | $3,740,400 |
# | For the period from October 5, 2022 (inception) through September 30, 2023. |
Statement of Changes in Net Assets
For the period ended September 30, 2023 | Small-Mid Cap ESG ETF# |
Operations | |
Net investment income/(loss) | $679,915 |
Net realized gains/(losses) | (2,745,089 ) |
Change in net unrealized appreciation/(depreciation) | 5,805,574 |
Net Change in Net Assets Resulting From Operations | 3,740,400 |
Distributions to Shareholders | |
From net investment income/net realized gains | (105,010 ) |
Total Distributions to Shareholders | (105,010 ) |
Capital Stock Transactions | |
Sold | 133,405,273 |
Distributions reinvested | — |
Redeemed | (3,679,956 ) |
Total Capital Stock Transactions | 129,725,317 |
Net Increase/(Decrease) in Net Assets | 133,360,707 |
Net Assets, Beginning of Period | — |
Net Assets, End of Period | $133,360,707 |
Capital Stock Share Transactions | |
Sold | 4,934,000 |
Distributions reinvested | — |
Redeemed | (140,000 ) |
Total Capital Stock Share Transactions | 4,794,000 |
# | For the period from October 5, 2022 (inception) through September 30, 2023. |
Notes to Financial Statements
September 30, 2023
Notes to Financial Statements
September 30, 2023
Notes to Financial Statements
September 30, 2023
Fund | Distributable earnings/ (accumulated loss) | Capital Stock |
Small-Mid Cap ESG ETF | $(313,674) | $313,674 |
Fund | Undistributed Ordinary Income | Undistributed Long-Term Capital Gain |
Small-Mid Cap ESG ETF | $568,888 | $— |
Fund | Capital Loss Carryover |
Small-Mid Cap ESG ETF | $(80,333) |
Notes to Financial Statements
September 30, 2023
Notes to Financial Statements
September 30, 2023
Notes to Financial Statements
September 30, 2023
Notes to Financial Statements
September 30, 2023
Financial Highlights
Per Share Outstanding Throughout Each Period* | ||||||
Income from Investment Operations | Less Distributions From | |||||
Net Asset Value, Beginning of Period* | Net Investment Income/(Loss) | Net Realized and Unrealized Gain/(Loss) on Investments(a) | Total from Investment Operations | Net Investment Income | Net Realized Gain on Investments | |
Small-Mid Cap ESG ETF# | ||||||
Period Ended 9/30/2023 (c) | $25.00 | $0.18 | $2.68 | $2.86 | $(0.04) | $0.00 |
(a) | The amount shown may not correlate with the change in aggregate gains and losses of portfolio securities due to the timing of sales and redemptions of fund shares. |
(b) | Total return assumes dividend reinvestment and does not reflect any deduction for applicable sales charges. Not annualized for periods less than one year. |
(c) | Per share amounts have been calculated using the average shares outstanding method. |
* | All per share amounts have been rounded to the nearest cent. |
** | Computed on an annualized basis for periods less than one year. |
# | For the period from October 5, 2022 (inception) through September 30, 2023. |
Financial Highlights
Ratios/Supplemental Data | ||||||||
Ratio to Average Net Assets** | Ratio to Average Net Assets Before Expenses Waived, Credited or Acquired Fund Fees and Expenses ** | |||||||
Total Distributions | Net Asset Value, End of Period | Total Return(b) | Net Assets, End of Period (in millions) | Expenses | Net Investment Income/ (Loss) | Expenses | Net Investment Income/(Loss) | Portfolio Turnover rate |
$(0.04) | $27.82 | 7.65 | $133.4 | 0.65% | 0.67% | 0.65% | 0.67% | 47% |
Interested Trustees (1)(2)(3) | |
Name (Year of Birth) Year Elected | Principal Occupation(s) and Directorships of Public Companies and Other Investment Companies During the Past Five Years |
Michael W. Kremenak (1978) 2022 | Senior Vice President and Head of Mutual Funds, Thrivent since 2020; Vice President, Thrivent from 2015 to 2020. Trustee of Thrivent Church Loan and Income Fund from 2020 to 2023. |
David S. Royal (1971) 2022 | Chief Financial Officer, Thrivent since 2022; Executive Vice President, Chief Investment Officer, Thrivent since 2017; President, Mutual Funds from 2015 to 2023. Current Director of Thrivent Trust Company; Advisory Board Member of Twin Bridge Capital Partners; Trustee of Thrivent Church Loan and Income Fund from 2018 to 2023. |
Independent Trustees(2) (3) (4) | |
Name (Year of Birth) Year Elected | Principal Occupation(s) and Directorships of Public Companies and Other Investment Companies During the Past Five Years |
Janice B. Case (1952) 2022 | Retired. Independent Director and member of the Audit Committee and Governance and Nominating Committee at MN8 Energy LLC and MN8 Energy, Inc. since 2023; Independent Trustee of North American Electric Reliability Corporation from 2008 to 2020. |
Robert J. Chersi (1961) 2022 | Founder of Chersi Services LLC (consulting firm) since 2014. Lead Independent Director since 2019 and Director and Audit Committee Chair at BrightSphere Investment Group plc since 2016; Director and member of the Audit and Risk Oversight Committees of E*TRADE Financial Corporation and Director of E*TRADE Bank from 2019 to 2020. |
Arleas Upton Kea (1957) 2022 | Deputy to the Chairman for External Affairs, FDIC since 2021; Chief Operating Officer and Deputy to the Chairman, FDIC from 2018 to 2021; Director, Administration, FDIC from 1999 to 2018. Board of Directors, Combined Federal Campaign of the National Capital Area since 2021; Board of Directors, University of Texas Alumni Association since 2021; Board of Directors, University of Texas Law School Foundation since 2021. |
Paul R. Laubscher (1956) 2022 | Portfolio Manager for U.S. private real estate and equity and global public equity portfolios, hedge funds and currency of IBM Retirement Funds from 1997 to 2022. None. |
Robert J. Manilla (1962) 2022 | Vice President and Chief Investment Officer, The Kresge Foundation since 2007. Board Member of Bedrock Manufacturing Company since 2014; Board Member of Sustainable Insight Capital Management LLC from 2013 to 2022; Board Member of Venture Michigan Fund from 2016 to 2020; Board Member of McGowan Charitable fund from 2012 to 2019. |
James A. Nussle (1960) 2022 | President and Chief Executive Officer of Credit Union National Association since September 2014; Director of Portfolio Recovery Associates (PRAA) since 2010; CEO of The Nussle Group LLC (consulting firm) since 2009. None. |
James W. Runcie (1963) 2022 | Co-Founder and CEO of Partnership for Education Advancement since 2017. Board Member of Follett Higher Education since 2022; Board Member of ECMC Group since 2021; Director and Audit Committee Chair of Class Acceleration Corporation since from 2021 to 2022. |
Independent Trustees(2) (3) (4) | |
Name (Year of Birth) Year Elected | Principal Occupation(s) and Directorships of Public Companies and Other Investment Companies During the Past Five Years |
Constance L. Souders (1950) 2022 | Retired. None. |
Executive Officers (2)(3) | |
Name (Year of Birth) Position Held With Trust | Principal Occupation(s) During the Past Five Years |
Michael W. Kremenak (1978) President and Trustee | Senior Vice President and Head of Mutual Funds, Thrivent since 2020; Vice President, Thrivent from 2015 to 2020. |
David S. Royal (1971) Trustee and Chief Investment Officer | Chief Financial Officer, Thrivent since 2022; Executive Vice President, Chief Investment Officer, Thrivent since 2017; President, Mutual Funds since 2015; Vice President, Thrivent Financial from 2015 to 2017. |
Sarah L. Bergstrom (1977) Treasurer and Principal Accounting Officer | Vice President, Chief Accounting Officer/Treasurer - Mutual Funds, Thrivent since 2022; Head of Mutual Fund Accounting, Thrivent from 2017 to 2022. |
Edward S. Dryden (1965) Chief Compliance Officer | Vice President, Chief Compliance Officer – Thrivent Funds, Thrivent since 2018; Director, Chief Compliance Officer – Thrivent Funds, Thrivent from 2010 to 2018. |
John D. Jackson (1977) Secretary and Chief Legal Officer | Director, Senior Counsel, Thrivent since 2017. |
Kathleen M. Koelling (1977) Privacy Officer (5) | Vice President, Deputy General Counsel, Thrivent since 2018; Privacy Officer, Thrivent since 2011; Anti-Money Laundering Officer, Thrivent from 2011 to 2019; Vice President, Managing Counsel, Thrivent from 2016 to 2018. |
Sharon K. Minta (1973) Anti-Money Laundering Officer (5) | Director, Compliance and Anti-Money Laundering Officer of the Financial Crimes Unit, Thrivent since 2019; Compliance Manager of the Financial Crimes Unit, Thrivent from 2014 to 2019. |
Troy A. Beaver (1967) Vice President | Vice President, Mutual Funds Marketing & Distribution, Thrivent since 2015. |
Andrew R. Kellogg (1972) Vice President (6) | Director of Strategic Partnerships, Thrivent since 2021; Director, Client Relations, SS&C/DST Systems, Inc. from 2016 to 2021. |
Jill M. Forte (1974) Assistant Secretary | Director, Senior Counsel, Thrivent since 2017. |
Richard L. Ramczyk (1976) Assistant Treasurer (5) | Director, Fund Accounting and Valuation, Thrivent since 2022; Manager, Mutual Fund Accounting Operations, Thrivent from 2011 to 2022. |
Taishiro A. Tezuka (1985) Assistant Treasurer | Director, Fund Administration, Thrivent since 2023; Director, Asset Wealth Management, PricewaterhouseCoopers LLP “PwC LLP” from 2020 to 2022; Senior Manager, Asset Wealth Management, PwC LLP from 2019 to 2020; Manager, Asset Wealth Management, PwC LLP from 2016 to 2019 |
(1) | “Interested person” of the Trust as defined in the 1940 Act by virtue of a position with Thrivent. Mr. Kremenak and Mr. Royal are considered interested persons because of their principal occupations with Thrivent. |
(2) | Unless otherwise noted, the address for each Trustee and Officer is 901 Marquette Avenue, Suite 2500, Minneapolis, MN 55402-3211. |
(3) | Each Trustee generally serves an indefinite term until her or his successor is duly elected and qualified. Officers generally serve at the discretion of the Board until their successors are duly appointed and qualified. |
(4) | The Trustees, other than Mr. Kremenak and Mr. Royal, are not “interested persons” of the Trust and are referred to as “Independent Trustees.” |
(5) | The address for this officer is 4321 North Ballard Road, Appleton, WI 54913. |
(6) | The address for this officer is 600 Portland Avenue S., Suite 100, Minneapolis, MN 55415-4402. |
(unaudited)
Appleton, WI 54919-0001
(b) | Not applicable. |
Item 2. Code of Ethics
As of the end of the period covered by this report, registrant has adopted a code of ethics (as defined in Item 2 of Form N-CSR) applicable to registrant’s Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. No waivers were granted to such code of ethics during the period covered by this report. A copy of this code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
Registrant’s Board of Trustees has determined that Robert J. Chersi, an independent trustee, is the Audit Committee Financial Expert.
Item 4. Principal Accountant Fees and Services
(a) through (d)
Thrivent Small-Mid Cap ESG ETF (the “Fund”) incepted on October 5, 2022, is a series of Thrivent ETF Trust, a Massachusetts business trust (the “Trust”). This Form N-CSR relates to the annual report of the Fund.
The following table presents the aggregate fees billed to the Fund for the fiscal period ended September 30, 2023 by the Funds’ independent public accountants, PricewaterhouseCoopers LLP (“PwC”), for professional services rendered for the audit of the Funds’ annual financial statements and fees billed for other services rendered by PwC during those periods.
Fiscal Period Ended | 9/30/2023 | |||
Audit Fees | $ | 21,100 | ||
Audit-Related Fees(1) | $ | 0 | ||
Tax Fees(2) | $ | 7,410 | ||
All Other Fees(3) | $ | 4,150 | ||
|
| |||
Total | $ | 32,660 | ||
|
|
(1) | Audit-related fees consist of the aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit of financial statements and are not reported under the category of audit fees. |
(2) | Tax fees consist of the aggregate fees billed for professional services rendered by the principal accountant relating to tax compliance, tax advice, and tax planning and specifically include fees for tax return preparation. These fees include payments for tax return compliance services, excise distribution review services, and other tax related matters. |
(3) | All other fees consist of the aggregate fees billed for products and services provided by the principal accountant other than audit, audit-related, and tax services. This payment was for access to a PwC-sponsored online library that provides interpretive guidance regarding U.S. and foreign accounting standards. These figures are also reported in the response to Item 4(g) below. |
(e) | Registrant’s audit committee charter, adopted in February 2010, provides that the audit committee (comprised of the independent Trustees of registrant) is responsible for preapproval of all auditing services performed for the registrant. The audit committee also is responsible for pre-approval (subject to the de minimis exceptions for non-audit services described in Section 10A(i)(1)(B) of the Securities Exchange Act of 1934) of all non-auditing services performed for the registrant or an affiliate of registrant. In addition, registrant’s audit committee charter permits a designated member of the audit committee to pre-approve, between meetings, one or more audit or non-audit service projects, subject to an expense limit and notification to the audit committee at the next committee meeting. Registrant’s audit committee pre-approved all fees described above that PwC billed to registrant. |
(f) | Less than 50% of the hours billed by PwC for auditing services to registrant for the fiscal period ended September 30, 2023 was for work performed by persons other than full-time permanent employees of PwC. |
(g) | The aggregate non-audit fees billed by PwC to registrant and to registrant’s investment adviser and any entity controlling, controlled by, or under common control with registrant’s investment adviser for the fiscal period since the Fund’s inception on October 5, 2022 through September 30, 2023 was $4,150. This figure is also reported in response to Item 4(d) above. |
(h) | Registrant’s audit committee has considered the non-audit services provided to the registrant and registrant’s investment adviser and any entity controlling, controlled by, or under common control with registrant’s investment adviser as described above and determined that these services do not compromise PwC’s independence. |
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Investments
(a) | Registrant’s Schedule of Investments is included in the report to shareholders filed under Item 1. |
(b) | Not applicable to this filing. |
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 have been no material changes to the procedures by which shareholders may recommend nominees to registrant’s board of trustees since the registrant last provided disclosure in response to this Item.
Item 11. Controls and Procedures
(a) | Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) are effective, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report. |
(b) | There were no changes in registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, 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
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.
Date: November 29, 2023 | Thrivent ETF Trust | |||||
By: | /s/ Michael W. Kremenak | |||||
Michael W. Kremenak | ||||||
President |
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.
Date: November 29, 2023 | By: | /s/ Michael W. Kremenak | ||||
Michael W. Kremenak | ||||||
President | ||||||
(principal executive officer) | ||||||
Date: November 29, 2023 | By: | /s/ Sarah L. Bergstrom | ||||
Sarah L. Bergstrom | ||||||
Treasurer and Principal Accounting Officer | ||||||
(principal financial officer) |