N-Q 1 d500583dnq.htm LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF Legg Mason Emerging Markets Diversified Core ETF

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-23096

Legg Mason ETF Investment Trust

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 49th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-877-721-1926

Date of fiscal year end: October 31

Date of reporting period: January 31, 2018

 

 

 

 

ITEM 1. SCHEDULE OF INVESTMENTS.

LEGG MASON ETF INVESTMENT TRUST

LEGG MASON EMERGING MARKETS

DIVERSIFIED CORE ETF

FORM N-Q

JANUARY 31, 2018

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited)    January 31, 2018

 

 

SECURITY

    SHARES      VALUE  
COMMON STOCKS - 98.5%      
CONSUMER DISCRETIONARY - 12.0%      

Auto Components - 0.3%

      

Bosch Ltd.

      39      $ 11,871  

Cheng Shin Rubber Industry Co., Ltd.

      8,000        13,944  

Hyundai Mobis Co., Ltd.

      70        16,224  

Motherson Sumi Systems Ltd.

      1,741        10,058  
     

 

 

  

Total Auto Components

         52,097  
     

 

 

  

Automobiles - 3.1%

      

Bajaj Auto Ltd.

      229        11,991  

Brilliance China Automotive Holdings Ltd.

      8,000        20,453  

BYD Co., Ltd., Class H Shares

      1,500        14,122  

Dongfeng Motor Group Co., Ltd., Class H Shares

      8,000        10,452  

Ford Otomotiv Sanayi AS

      2,037        32,535  

Geely Automobile Holdings Ltd.

      10,000        32,022  

Great Wall Motor Co., Ltd., Class H Shares

      8,000        9,767  

Guangzhou Automobile Group Co., Ltd., Class H Shares

      6,000        13,591  

Hero MotoCorp Ltd.

      153        8,882  

Hyundai Motor Co.

      74        11,226  

Kia Motors Corp.

      297        9,637  

Mahindra & Mahindra Ltd.

      1,710        20,591  

Maruti Suzuki India Ltd.

      230        34,353  

PT Astra International Tbk

      375,700        238,522  

Tata Motors Ltd.

      3,207        20,169 * 

Tofas Turk Otomobil Fabrikasi AS

      3,508        29,789  

UMW Holdings Berhad

      7,200        12,598 * 
     

 

 

  

Total Automobiles

         530,700  
     

 

 

  

Diversified Consumer Services - 0.4%

      

Kroton Educacional SA

      3,486        17,780  

New Oriental Education & Technology Group Inc., ADR

      300        27,627  

TAL Education Group, ADR

      606        19,738  
     

 

 

  

Total Diversified Consumer Services

         65,145  
     

 

 

  

Hotels, Restaurants & Leisure - 2.0%

      

Genting Berhad

      36,600        90,426  

Genting Malaysia Berhad

      50,100        70,823  

Minor International PCL

      49,700        69,821 (a) 

OPAP SA

      5,768        77,342  

Yum China Holdings Inc.

      804        37,298  
     

 

 

  

Total Hotels, Restaurants & Leisure

         345,710  
     

 

 

  

Household Durables - 0.3%

      

Arcelik AS

      7,047        35,754  

Haier Electronics Group Co., Ltd.

      4,000        13,704  
     

 

 

  

Total Household Durables

         49,458  
     

 

 

  

Internet & Direct Marketing Retail - 0.7%

      

Ctrip.com International Ltd., ADR

      800        37,424 * 

JD.com Inc., ADR

      1,400        68,922 * 

Vipshop Holdings Ltd., ADR

      1,000        16,530 * 
     

 

 

  

Total Internet & Direct Marketing Retail

         122,876  
     

 

 

  

Leisure Products - 0.1%

      

Giant Manufacturing Co., Ltd.

      2,000        11,220  
     

 

 

  

Media - 2.0%

      

Astro Malaysia Holdings Berhad

      22,300        14,875  

Cyfrowy Polsat SA

      4,979        35,809  

Grupo Televisa SA

      24,963        103,343  

Naspers Ltd.

      582        166,179  

PT Surya Citra Media Tbk

      134,400        27,004  

Zee Entertainment Enterprises Ltd.

      1,069        10,024  
     

 

 

  

Total Media

         357,234  
     

 

 

  

 

See Notes to Schedule of Investments.

 

1

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited) (cont’d)    January 31, 2018

 

 

SECURITY

    SHARES      VALUE  

Multiline Retail - 1.4%

      

El Puerto de Liverpool SAB de CV, Class C1 Shares

      2,086      $ 15,466  

Lojas Renner SA

      1,555        18,478  

PT Matahari Department Store Tbk

      47,500        39,470  

Robinson PCL

      12,800        29,323 (a) 

S.A.C.I. Falabella

      13,332        139,992  
     

 

 

  

Total Multiline Retail

         242,729  
     

 

 

  

Specialty Retail - 0.7%

      

FF Group

      894        21,400 * 

Home Product Center PCL

      63,100        28,608  

Home Product Center PCL

      30,700        13,919 (a) 

Hotai Motor Co., Ltd.

      1,000        13,021  

JUMBO SA

      2,229        44,057  
     

 

 

  

Total Specialty Retail

         121,005  
     

 

 

  

Textiles, Apparel & Luxury Goods - 1.0%

      

ANTA Sports Products Ltd.

      3,000        14,458  

CCC SA

      496        42,670  

Eclat Textile Co., Ltd.

      1,020        10,237  

Feng Tay Enterprise Co., Ltd.

      2,120        10,038  

LPP SA

      23        66,895  

Pou Chen Corp.

      10,000        13,450  

Shenzhou International Group Holdings Ltd.

      2,000        20,645  
     

 

 

  

Total Textiles, Apparel & Luxury Goods

         178,393  
     

 

 

  

TOTAL CONSUMER DISCRETIONARY

         2,076,567  
     

 

 

  
CONSUMER STAPLES - 11.4%      

Beverages - 1.3%

      

Ambev SA

      4,711        32,456  

Anadolu Efes Biracilik Ve Malt Sanayii AS

      4,253        31,519  

China Resources Beer Holdings Co., Ltd.

      16,000        60,440  

Coca-Cola Icecek AS

      1,523        14,587  

Compania Cervecerias Unidas SA

      747        10,700  

Fomento Economico Mexicano SAB de CV

      3,560        34,755  

Tsingtao Brewery Co., Ltd., Class H Shares

      4,000        22,294  

United Spirits Ltd.

      177        9,111 * 
     

 

 

  

Total Beverages

         215,862  
     

 

 

  

Food & Staples Retailing - 3.2%

      

Bid Corp., Ltd.

      2,293        51,333  

BIM Birlesik Magazalar AS

      3,231        64,635  

Cencosud SA

      9,035        28,147  

CP ALL PCL

      34,200        87,083  

CP ALL PCL

      11,400        29,028 (a) 

Magnit PJSC, Registered Shares, GDR

      4,873        109,643  

Pick n Pay Stores Ltd.

      2,505        14,434  

President Chain Store Corp.

      4,000        39,594  

Shoprite Holdings Ltd.

      2,534        52,782  

Spar Group Ltd.

      1,710        29,592  

Sun Art Retail Group Ltd.

      20,000        27,152  

Wal-Mart de Mexico SAB de CV

      9,780        24,466  
     

 

 

  

Total Food & Staples Retailing

         557,889  
     

 

 

  

Food Products - 4.2%

      

Charoen Pokphand Foods PCL

      19,400        14,618  

Charoen Pokphand Foods PCL

      3,300        2,487 (a) 

China Huishan Dairy Holdings Co., Ltd.

      25,000        0 *(a)(b)(c) 

China Mengniu Dairy Co., Ltd.

      26,000        84,920  

CJ CheilJedang Corp.

      32        10,743  

Felda Global Ventures Holdings Berhad

      23,100        11,912  

Genting Plantations Berhad

      4,000        10,283  

 

See Notes to Schedule of Investments.

 

2

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited) (cont’d)    January 31, 2018

 

 

SECURITY

    SHARES      VALUE  

Food Products - (continued)

      

Gruma SA de CV, Class B Shares

      713      $ 8,526  

Grupo Bimbo SAB de CV, Series A Shares

      4,822        11,757  

IOI Corp. Berhad

      36,500        43,919  

Kuala Lumpur Kepong Berhad

      8,400        54,351  

Nestle India Ltd.

      78        9,149  

Orion Corp.

      105        11,504 * 

Pioneer Foods Group Ltd.

      793        8,742  

PPB Group Berhad

      8,700        38,972  

PT Charoen Pokphand Indonesia Tbk

      146,200        37,673  

PT Indofood CBP Sukses Makmur Tbk

      42,700        27,827  

PT Indofood Sukses Makmur Tbk

      74,600        43,183  

Sime Darby Plantation Berhad

      22,900        32,313 * 

Standard Foods Corp.

      4,388        11,261  

Thai Union Group PCL

      14,200        9,385  

Thai Union Group PCL, Class F Shares

      14,100        9,319 (a) 

Tiger Brands Ltd.

      1,041        40,511  

Tingyi (Cayman Islands) Holding Corp.

      20,000        41,674  

Ulker Biskuvi Sanayi AS

      3,074        19,443  

Uni-President Enterprises Corp.

      36,000        86,463  

Want Want China Holdings Ltd.

      56,000        49,467  
     

 

 

  

Total Food Products

         730,402  
     

 

 

  

Household Products - 0.9%

 

Hindustan Unilever Ltd.

      1,954        41,944  

Kimberly-Clark de Mexico SAB de CV, Class A Shares

      5,023        9,411  

PT Unilever Indonesia Tbk

      27,000        109,706  
     

 

 

  

Total Household Products

         161,061  
     

 

 

  

Personal Products - 0.7%

 

Amorepacific Corp.

      39        10,938  

Dabur India Ltd.

      1,738        9,742  

Godrej Consumer Products Ltd.

      872        14,395  

Hengan International Group Co., Ltd.

      7,000        67,113  

LG Household & Health Care Ltd.

      12        13,227  

Marico Ltd.

      1,770        8,582  
     

 

 

  

Total Personal Products

         123,997  
     

 

 

  

Tobacco - 1.1%

 

British American Tobacco (Malaysia) Berhad

      2,300        20,169  

ITC Ltd.

      10,017        42,735  

KT&G Corp.

      190        18,950  

PT Gudang Garam Tbk

      8,400        50,851  

PT Hanjaya Mandala Sampoerna Tbk

      160,400        58,704  
     

 

 

  

Total Tobacco

         191,409  
     

 

 

  

TOTAL CONSUMER STAPLES

 

      1,980,620  
     

 

 

  
ENERGY - 8.1%   

Energy Equipment & Services - 0.7%

 

China Oilfield Services Ltd., Class H Shares

      12,000        14,312  

Dialog Group Berhad

      119,900        78,749  

Sapura Energy Berhad

      158,300        30,663  
     

 

 

  

Total Energy Equipment & Services

         123,724  
     

 

 

  

Oil, Gas & Consumable Fuels - 7.4%

 

Bharat Petroleum Corp., Ltd.

      1,636        12,606  

China Petroleum & Chemical Corp., Class H Shares

      88,000        76,046  

China Shenhua Energy Co., Ltd., Class H Shares

      14,000        43,579  

CNOOC Ltd.

      64,000        99,649  

Coal India Ltd.

      2,841        13,422  

Formosa Petrochemical Corp.

      14,000        59,563  

Gazprom PJSC

      18,609        47,207 * 

Grupa Lotos SA

      1,027        18,235  

GS Holdings Corp.

      156        10,138  

Hindustan Petroleum Corp., Ltd.

      1,816        11,306  

Indian Oil Corp., Ltd.

      1,491        9,774  

Kunlun Energy Co., Ltd.

      12,000        11,904  

Lukoil PJSC

      711        46,976  

MOL Hungarian Oil & Gas PLC

      11,184        136,627  

 

See Notes to Schedule of Investments.

 

3

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited) (cont’d)    January 31, 2018

 

 

SECURITY

    SHARES      VALUE  

Oil, Gas & Consumable Fuels - (continued)

      

Novatek PJSC, Registered Shares, GDR

      86      $ 11,447  

Oil & Natural Gas Corp., Ltd.

      5,756        18,421  

PetroChina Co., Ltd., Class H Shares

      68,000        53,895  

Petroleo Brasileiro SA

      3,073        20,544 * 

Petronas Dagangan Berhad

      9,800        61,901  

Polski Koncern Naftowy Orlen SA

      2,424        78,617  

Polskie Gornictwo Naftowe i Gazownictwo SA

      18,291        35,867  

PT Adaro Energy Tbk

      80,400        14,713  

PT United Tractors Tbk

      10,900        31,670  

PTT Exploration and Production PCL

      2,700        10,259 (a) 

PTT PCL

      1,400        21,992 (a) 

Reliance Industries Ltd.

      5,471        82,748  

Rosneft Oil Co.

      2,240        13,688  

S-Oil Corp.

      109        12,555  

SK Innovation Co., Ltd.

      167        31,982  

Tatneft

      2,805        28,315  

Thai Oil PCL

      2,500        8,182 (a) 

Tupras-Turkiye Petrol Rafinerileri AS

      3,521        108,162  

Ultrapar Participacoes SA

      484        12,387  

Yanzhou Coal Mining Co., Ltd., Class H Shares

      10,000        17,437  
     

 

 

  

Total Oil, Gas & Consumable Fuels

         1,271,814  
     

 

 

  

TOTAL ENERGY

 

      1,395,538  
     

 

 

  
FINANCIALS - 16.2%   

Banks - 13.1%

 

Agricultural Bank of China Ltd., Class H Shares

      22,000        13,499  

Akbank TAS

      10,749        31,246  

AMMB Holdings Berhad

      10,800        13,355  

Axis Bank Ltd.

      1,752        16,351  

Banco de Chile

      86,562        14,789  

Banco de Credito e Inversiones

      173        13,287  

Banco Santander Chile

      261,000        22,046  

Banco Santander SA, Class B Shares

      5,509        8,687  

Bangkok Bank PCL, Registered Shares

      2,190        15,523  

Bank of China Ltd., Class H Shares

      42,000        25,288  

Bank of the Philippine Islands

      9,590        22,283  

Bank Pekao SA

      765        31,077  

Bank Zachodni WBK SA

      153        19,208  

Barclays Africa Group Ltd.

      1,693        25,739  

BDO Unibank Inc.

      22,900        68,298  

China Construction Bank Corp., Class H Shares

      54,000        62,265  

China Merchants Bank Co., Ltd., Class H Shares

      4,000        19,610  

CIMB Group Holdings Berhad

      17,700        32,923  

Commercial International Bank

      18,226        80,521  

Credicorp Ltd.

      184        42,620  

CTBC Financial Holding Co., Ltd.

      23,880        17,452  

Grupo Financiero Banorte SAB de CV, Class O Shares

      11,079        70,956  

Grupo Financiero Inbursa SAB de CV, Class O Shares

      7,088        12,541  

Hana Financial Group Inc.

      402        19,613  

 

See Notes to Schedule of Investments.

 

4

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited) (cont’d)    January 31, 2018

 

SECURITY

    SHARES      VALUE  

Banks - (continued)

      

Hong Leong Bank Berhad

      3,800      $ 18,134  

ICICI Bank Ltd.

      2,849        15,819  

Industrial & Commercial Bank of China Ltd., Class H Shares

      52,000        49,190  

Itau CorpBanca

      954,277        9,688  

Kasikornbank PCL

      8,400        61,954  

Kasikornbank PCL

      6,000        44,061  

KB Financial Group Inc.

      396        24,957 * 

Komercni Banka AS

      1,821        83,636  

Krung Thai Bank PCL

      7,900        5,045  

Krung Thai Bank PCL

      7,800        4,981 (a) 

Malayan Banking Berhad

      18,700        48,456  

mBank SA

      121        18,446 * 

Mega Financial Holding Co., Ltd.

      18,000        15,625  

Metropolitan Bank & Trust Co.

      8,170        15,846  

Moneta Money Bank AS

      10,778        44,764  

Nedbank Group Ltd.

      741        16,514  

OTP Bank PLC

      3,564        165,231  

Powszechna Kasa Oszczednosci Bank Polski SA

      4,338        59,208 * 

PT Bank Central Asia Tbk

      70,700        120,003  

PT Bank Danamon Indonesia Tbk

      31,100        16,609  

PT Bank Mandiri (Persero) Tbk

      133,600        81,327  

PT Bank Negara Indonesia (Persero) Tbk

      48,600        34,122  

PT Bank Rakyat Indonesia (Persero) Tbk

      378,100        104,490  

Public Bank Berhad

      15,500        87,407  

Sberbank of Russia PJSC

      32,938        155,013 * 

Shinhan Financial Group Co., Ltd.

      350        17,470 * 

Siam Commercial Bank PCL

      8,200        41,236  

Siam Commercial Bank PCL

      5,500        27,658 (a) 

Standard Bank Group Ltd.

      3,378        57,219  

State Bank of India

      2,066        10,216  

Turkiye Garanti Bankasi AS

      12,012        39,298  

Turkiye Halk Bankasi AS

      4,836        13,054  

Turkiye Is Bankasi, Class C Shares

      5,943        12,735  

Turkiye Vakiflar Bankasi T.A.O., Class D Shares

      6,707        13,444  

VTB Bank PJSC

      25,325,567        22,033 * 

Yes Bank Ltd.

      2,100        11,718  
     

 

 

  

Total Banks

         2,265,784  
     

 

 

  

Capital Markets - 0.3%

 

B3 SA - Brasil Bolsa Balcao

      1,762        14,423  

Egyptian Financial Group-Hermes Holding Co.

      9,558        11,052  

Moscow Exchange MICEX-RTS PJSC

      10,493        21,470 * 
     

 

 

  

Total Capital Markets

         46,945  
     

 

 

  

Diversified Financial Services - 1.2%

 

Ayala Corp.

      2,820        57,719  

FirstRand Ltd.

      5,620        31,548  

Fubon Financial Holding Co., Ltd.

      8,000        14,877  

Grupo de Inversiones Suramericana SA

      1,483        20,965  

GT Capital Holdings Inc.

      1,070        28,054  

Haci Omer Sabanci Holding AS

      6,532        19,944  

Metro Pacific Investments Corp.

      166,600        20,979  

Remgro Ltd.

      988        19,704  
     

 

 

  

Total Diversified Financial Services

         213,790  
     

 

 

  

Insurance - 1.1%

 

Cathay Financial Holding Co., Ltd.

      6,000        11,240  

China Life Insurance Co., Ltd., Class H Shares

      4,000        13,525  

China Pacific Insurance (Group) Co., Ltd., Class H Shares

      2,800        14,210  

Discovery Ltd.

      1,201        17,119  

PICC Property & Casualty Co., Ltd., Class H Shares

      6,000        12,456  

Ping An Insurance Group Co. of China Ltd., Class H Shares

      4,000        47,375  

Powszechny Zaklad Ubezpieczen SA

      2,262        30,927  

Samsung Fire & Marine Insurance Co., Ltd.

      50        13,532  

Samsung Life Insurance Co., Ltd.

      121        14,617  

Sanlam Ltd.

      3,176        23,647  
     

 

 

  

Total Insurance

         198,648  
     

 

 

  

Real Estate Management & Development - 0.2%

 

Agile Group Holdings Ltd.

      6,000        10,769  

China Jinmao Holdings Group Ltd.

      30,000        19,558  
     

 

 

  

Total Real Estate Management & Development

         30,327  
     

 

 

  

Thrifts & Mortgage Finance - 0.3%

 

Housing Development Finance Corp., Ltd.

      1,944        59,779  
     

 

 

  

TOTAL FINANCIALS

         2,815,273  
     

 

 

  

 

See Notes to Schedule of Investments.

 

5

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited) (cont’d)    January 31, 2018

 

SECURITY

    SHARES      VALUE  
HEALTH CARE - 5.9%      

Biotechnology - 0.9%

      

3SBio Inc.

      9,000      $ 18,339 * 

Celltrion Inc.

      358        105,839 * 

Medy-Tox Inc.

      24        13,665  

SillaJen Inc.

      219        21,719 * 
     

 

 

  

Total Biotechnology

         159,562  
     

 

 

  

Health Care Equipment & Supplies - 0.1%

      

Shandong Weigao Group Medical Polymer Co., Ltd., Class H Shares

      16,000        11,842  
     

 

 

  

Health Care Providers & Services - 1.1%

      

Celltrion Healthcare Co., Ltd.

      139        17,833 * 

Life Healthcare Group Holdings Ltd.

      16,803        38,694  

Netcare Ltd.

      14,236        31,305  

Qualicorp SA

      1,300        12,482  

Shanghai Pharmaceuticals Holding Co., Ltd., Class H Shares

      10,200        26,730  

Sinopharm Group Co., Ltd., Class H Shares

      12,400        54,767  
     

 

 

  

Total Health Care Providers & Services

         181,811  
     

 

 

  

Health Care Technology - 0.1%

      

Alibaba Health Information Technology Ltd.

      36,000        18,822 * 
     

 

 

  

Life Sciences Tools & Services - 0.2%

      

Samsung Biologics Co., Ltd.

      84        34,494 * 
     

 

 

  

Pharmaceuticals - 3.5%

      

Aspen Pharmacare Holdings Ltd.

      5,280        120,654  

Aurobindo Pharma Ltd.

      1,759        17,434  

Cadila Healthcare Ltd.

      1,424        9,527  

China Medical System Holdings Ltd.

      13,000        27,886  

China Resources Pharmaceutical Group Ltd.

      7,500        9,875  

Cipla Ltd.

      1,908        17,753  

CSPC Pharmaceutical Group Ltd.

      40,000        88,768  

Dr. Reddy’s Laboratories Ltd.

      752        26,295  

Glenmark Pharmaceuticals Ltd.

      1,438        13,690  

Hanmi Pharm. Co., Ltd.

      38        21,245 * 

Hanmi Science Co., Ltd.

      103        10,128 * 

Hypermarcas SA

      1,300        14,828  

Lupin Ltd.

      1,571        21,805  

Piramal Enterprises Ltd.

      458        19,694  

Shanghai Fosun Pharmaceutical Group Co., Ltd., Class H Shares

      4,500        26,145  

Sihuan Pharmaceutical Holdings Group Ltd.

      32,000        12,272  

Sino Biopharmaceutical Ltd.

      36,000        66,361  

Sun Pharmaceutical Industries Ltd.

      7,238        66,020  

Yuhan Corp.

      88        19,201  
     

 

 

  

Total Pharmaceuticals

         609,581  
     

 

 

  

TOTAL HEALTH CARE

         1,016,112  
     

 

 

  
INDUSTRIALS - 8.6%      

Aerospace & Defense - 0.2%

      

Aselsan Elektronik Sanayi Ve Ticaret AS

      2,546        22,528  

Embraer SA

      1,952        12,266  
     

 

 

  

Total Aerospace & Defense

         34,794  
     

 

 

  

Airlines - 0.8%

      

Air China Ltd., Class H Shares

      10,000        14,624  

AirAsia Berhad

      15,300        16,251  

EVA Airways Corp.

      26,368        13,977  

Latam Airlines Group SA

      3,098        53,601  

Turk Hava Yollari Anonim Ortakligi

      7,903        34,670 * 
     

 

 

  

Total Airlines

         133,123  
     

 

 

  

 

See Notes to Schedule of Investments.

 

6

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited) (cont’d)    January 31, 2018

 

 

SECURITY

    SHARES      VALUE  

Commercial Services & Supplies - 0.1%

      

China Everbright International Ltd.

      8,000      $ 12,231  
     

 

 

  

Construction & Engineering - 0.9%

      

China Communications Construction Co., Ltd., Class H Shares

      16,000        19,103  

China Railway Construction Corp. Ltd., Class H Shares

      13,500        16,412  

China Railway Group Ltd., Class H Shares

      20,000        15,366  

China State Construction International Holdings Ltd.

      8,000        11,577  

Gamuda Berhad

      14,700        19,310  

IJM Corp. Berhad

      26,900        21,325  

Larsen & Toubro Ltd.

      2,391        53,565  
     

 

 

  

Total Construction & Engineering

         156,658  
     

 

 

  

Electrical Equipment - 0.3%

      

Bharat Heavy Electricals Ltd.

      8,775        13,776  

Havells India Ltd.

      1,671        13,715  

Shanghai Electric Group Co., Ltd., Class H Shares

      22,000        8,943 * 

Teco Electric & Machinery Co., Ltd.

      12,000        11,570  

Zhuzhou CRRC Times Electric Co., Ltd., Class H Shares

      2,000        11,070  
     

 

 

  

Total Electrical Equipment

         59,074  
     

 

 

  

Industrial Conglomerates - 4.4%

      

Aboitiz Equity Ventures Inc.

      25,070        37,532  

Alfa SAB de CV, Class A Shares

      23,990        30,020  

Alliance Global Group Inc.

      56,700        16,955 * 

Beijing Enterprises Holdings Ltd.

      2,000        12,285  

Bidvest Group Ltd.

      13,397        282,715  

CITIC Ltd.

      22,000        34,704  

DMCI Holdings Inc.

      45,200        12,688  

Far Eastern New Century Corp.

      23,000        20,557  

Fosun International Ltd.

      12,000        28,349  

Grupo Carso SA de CV, Series A1 Shares

      2,558        9,625  

Hap Seng Consolidated Berhad

      5,200        12,968  

JG Summit Holdings Inc.

      42,370        63,183  

Koc Holding AS

      9,029        43,984  

LG Corp.

      189        15,770  

Samsung C&T Corp.

      117        15,558  

Siemens Ltd.

      567        11,554  

Sime Darby Berhad

      22,900        17,978  

SK Holdings Co., Ltd.

      58        17,299  

SM Investments Corp.

      3,345        66,835  

Turkiye Sise ve Cam Fabrikalari AS

      8,750        11,646  
     

 

 

  

Total Industrial Conglomerates

         762,205  
     

 

 

  

Machinery - 0.6%

      

Ashok Leyland Ltd.

      6,394        12,677  

China Conch Venture Holdings Ltd.

      5,000        13,998  

CRRC Corp. Ltd., Class H Shares

      12,000        11,888  

Eicher Motors Ltd.

      61        25,770  

Haitian International Holdings Ltd.

      3,000        9,377  

Hiwin Technologies Corp.

      1,060        13,729  

WEG SA

      1,655        12,311  

Weichai Power Co., Ltd.

      8,000        10,002  
     

 

 

  

Total Machinery

         109,752  
     

 

 

  

Marine - 0.1%

      

MISC Berhad

      10,200        19,758  
     

 

 

  

Transportation Infrastructure - 1.2%

      

Adani Ports and Special Economic Zone Ltd.

      3,433        23,109  

Beijing Capital International Airport Co., Ltd., Class H Shares

      8,000        12,129  

CCR SA

      2,934        14,431  

China Merchants Port Holdings Co., Ltd.

      4,000        10,585  

COSCO SHIPPING Ports Ltd.

      8,000        8,376  

Grupo Aeroportuario del Pacifico SAB de CV, Class B Shares

      2,476        25,951  

Grupo Aeroportuario del Sureste SAB de CV, Class B Shares

      1,674        32,560  

 

See Notes to Schedule of Investments.

 

7

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited) (cont’d)    January 31, 2018

 

 

SECURITY

    SHARES      VALUE  

Transportation Infrastructure - (continued)

      

International Container Terminal Services Inc.

      6,270      $ 13,872  

Malaysia Airports Holdings Berhad

      8,000        18,575  

Promotora y Operadora de Infraestructura SAB de CV

      1,616        16,545  

TAV Havalimanlari Holding AS

      1,922        11,327  

Westports Holdings Berhad

      9,800        8,800  

Zhejiang Expressway Co., Ltd., Class H Shares

      10,000        11,837  
     

 

 

  

Total Transportation Infrastructure

         208,097  
     

 

 

  

TOTAL INDUSTRIALS

 

      1,495,692  
     

 

 

  
INFORMATION TECHNOLOGY - 3.6%   

Electronic Equipment, Instruments & Components - 0.3%

 

AAC Technologies Holdings Inc.

      500        8,360  

Hon Hai Precision Industry Co., Ltd.

      6,300        19,930  

Sunny Optical Technology Group Co., Ltd.

      1,000        13,844  
     

 

 

  

Total Electronic Equipment, Instruments & Components

         42,134  
     

 

 

  

Internet Software & Services - 1.6%

 

Alibaba Group Holding Ltd., ADR

      500        102,145 * 

Baidu Inc., ADR

      100        24,692 * 

Tencent Holdings Ltd.

      2,600        154,086  
     

 

 

  

Total Internet Software & Services

         280,923  
     

 

 

  

IT Services - 1.0%

 

Cielo SA

      6,188        52,208  

HCL Technologies Ltd.

      1,037        16,044  

Infosys Ltd.

      3,534        63,847  

Tata Consultancy Services Ltd.

      804        39,327  
     

 

 

  

Total IT Services

         171,426  
     

 

 

  

Semiconductors & Semiconductor Equipment - 0.5%

 

SK Hynix Inc.

      134        9,223  

Taiwan Semiconductor Manufacturing Co., Ltd.

      8,000        69,994  
     

 

 

  

Total Semiconductors & Semiconductor Equipment

         79,217  
     

 

 

  

Technology Hardware, Storage & Peripherals - 0.2%

 

Samsung Electronics Co., Ltd.

      18        42,057  
     

 

 

  

TOTAL INFORMATION TECHNOLOGY

 

      615,757  
     

 

 

  
MATERIALS - 9.6%   

Chemicals - 2.4%

 

Asian Paints Ltd.

      1,030        18,312  

Formosa Chemicals & Fibre Corp.

      6,000        22,439  

Formosa Plastics Corp.

      8,000        28,409  

Grupa Azoty SA

      480        10,144  

LG Chem Ltd.

      43        17,396  

Mexichem SAB de CV

      4,026        11,419  

Nan Ya Plastics Corp.

      6,000        16,490  

Petkim Petrokimya Holding AS

      14,654        30,973  

Petronas Chemicals Group Berhad

      75,300        157,255  

PhosAgro PJSC, Registered Shares, GDR

      893        14,154  

PTT Global Chemical PCL

      5,100        15,673 (a) 

Sasol Ltd.

      792        28,555  

Sinopec Shanghai Petrochemical Co., Ltd., Class H Shares

      64,000        39,189  

UPL Ltd.

      1,123        13,267  
     

 

 

  

Total Chemicals

         423,675  
     

 

 

  

Construction Materials - 2.9%

 

Ambuja Cements Ltd.

      2,276        9,402  

Anhui Conch Cement Co., Ltd., Class H Shares

      15,000        82,645  

Cementos Argos SA

      5,193        20,677  

Cemex SAB de CV

      34,738        28,911 * 

China National Building Material Co., Ltd., Class H Shares

      40,000        42,748  

Grasim Industries Ltd.

      611        11,163  

Grupo Argos SA

      3,071        22,334  

PT Indocement Tunggal Prakarsa Tbk

      84,700        137,914  

PT Semen Indonesia (Persero) Tbk

      140,000        116,593  

Shree Cement Ltd.

      31        8,374  

 

See Notes to Schedule of Investments.

 

8

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited) (cont’d)    January 31, 2018

 

 

SECURITY

    SHARES      VALUE  

Construction Materials - (continued)

      

Siam Cement PCL, Registered Shares

      600      $ 9,425  

Ultratech Cement Ltd.

      175        12,040  
     

 

 

  

Total Construction Materials

         502,226  
     

 

 

  

Metals & Mining - 3.8%

 

Alrosa PAO

      18,374        26,643 * 

Aluminum Corp. of China Ltd., Class H Shares

      48,000        32,521 * 

China Molybdenum Co., Ltd., Class H Shares

      42,000        32,322  

Compania de Minas Buenaventura SA, ADR

      1,270        19,596  

Eregli Demir ve Celik Fabrikalari TAS

      33,745        89,379  

Grupo Mexico SAB de CV, Series B Shares

      8,957        31,628  

Hindalco Industries Ltd.

      3,785        15,234  

Hyundai Steel Co.

      239        12,757  

Industrias Penoles SAB de CV

      450        10,428  

Jiangxi Copper Co., Ltd., Class H Shares

      19,000        32,158  

JSW Steel Ltd.

      2,361        10,876  

KGHM Polska Miedz SA

      914        30,067  

Korea Zinc Co., Ltd.

      26        12,539  

MMC Norilsk Nickel PJSC

      396        81,556  

Novolipetsk Steel PJSC

      7,630        20,022  

POSCO

      55        19,598  

Press Metal Aluminium Holdings Berhad

      33,000        48,936  

Severstal PAO

      653        10,729  

Southern Copper Corp.

      673        32,674  

Vale SA

      1,541        20,049  

Vedanta Ltd.

      4,984        26,713  

Zijin Mining Group Co., Ltd., Class H Shares

      80,000        40,293  
     

 

 

  

Total Metals & Mining

         656,718  
     

 

 

  

Paper & Forest Products - 0.5%

 

Empresas CMPC SA

      6,034        23,735  

Lee & Man Paper Manufacturing Ltd.

      13,000        15,322  

Mondi Ltd.

      355        9,480  

Nine Dragons Paper Holdings Ltd.

      21,000        32,697  
     

 

 

  

Total Paper & Forest Products

         81,234  
     

 

 

  

TOTAL MATERIALS

 

      1,663,853  
     

 

 

  
REAL ESTATE - 4.6%      

Equity Real Estate Investment Trusts (REITs) - 0.9%

 

Fortress REIT Ltd., Class A Shares

      9,262        13,792  

Fortress REIT Ltd., Class B Shares

      6,858        17,414  

Growthpoint Properties Ltd.

      18,507        43,368  

Hyprop Investments Ltd.

      2,272        22,248  

Redefine Properties Ltd.

      45,019        41,119  

Resilient REIT Ltd.

      2,467        24,240  
     

 

 

  

Total Equity Real Estate Investment Trusts (REITs)

         162,181  
     

 

 

  

Real Estate Management & Development - 3.7%

 

Ayala Land Inc.

      103,000        88,845  

BR Malls Participacoes SA

      6,600        26,620  

China Evergrande Group

      13,000        42,959 * 

China Overseas Land & Investment Ltd.

      18,000        69,721  

 

See Notes to Schedule of Investments.

 

9

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited) (cont’d)    January 31, 2018

 

SECURITY

    SHARES      VALUE  

Real Estate Management & Development - (continued)

      

China Resources Land Ltd.

      12,000      $ 47,861  

China Vanke Co., Ltd., Class H Shares

      4,700        23,011  

Country Garden Holdings Co., Ltd.

      23,000        49,454  

Fullshare Holdings Ltd.

      32,500        15,331  

Guangzhou R&F Properties Co., Ltd., Class H Shares

      4,000        11,249  

Longfor Properties Co., Ltd.

      7,000        22,863  

Megaworld Corp.

      135,000        13,026  

Multiplan Empreendimentos Imobiliarios SA

      600        13,661  

NEPI Rockcastle PLC

      2,872        39,009  

Robinsons Land Corp.

      21,500        8,759  

Shimao Property Holdings Ltd.

      7,000        20,894  

Sino-Ocean Group Holding Ltd.

      16,500        13,647  

SM Prime Holdings Inc.

      118,700        85,381  

Sunac China Holdings Ltd.

      8,000        38,401  
     

 

 

  

Total Real Estate Management & Development

         630,692  
     

 

 

  

TOTAL REAL ESTATE

         792,873  
     

 

 

  
TELECOMMUNICATION SERVICES - 12.4%      

Diversified Telecommunication Services - 3.2%

      

Bharti Infratel Ltd.

      5,697        31,529  

China Telecom Corp., Ltd., Class H Shares

      40,000        19,789  

China Unicom (Hong Kong) Ltd.

      22,000        32,961 * 

Chunghwa Telecom Co., Ltd.

      22,000        81,899  

KT Corp.

      402        11,162  

KT Corp., ADR

      1,028        15,369  

PT Telekomunikasi Indonesia Persero Tbk

      789,500        235,284  

PT Tower Bersama Infrastructure Tbk

      30,700        14,102  

Telekom Malaysia Berhad

      18,200        28,716  

Telkom South Africa SOC Ltd.

      2,405        10,466  

True Corp. PCL

      136,500        29,418 * 

True Corp. PCL

      109,348        23,566 *(a) 

Turk Telekomunikasyon AS

      15,824        26,706 * 
     

 

 

  

Total Diversified Telecommunication Services

         560,967  
     

 

 

  

Wireless Telecommunication Services - 9.2%

      

Advanced Info Service PCL

      15,700        96,496  

Advanced Info Service PCL, Registered Shares

      11,700        71,911 (a) 

America Movil SAB de CV, Series L Shares

      120,878        113,203  

Axiata Group Berhad

      45,000        65,692  

Bharti Airtel Ltd.

      9,879        68,271  

China Mobile Ltd.

      19,000        200,623  

DiGi.Com Berhad

      50,300        63,879  

Far EasTone Telecommunications Co., Ltd.

      10,000        26,076  

Globe Telecom Inc.

      1,495        55,370  

Idea Cellular Ltd.

      12,120        17,626 * 

Maxis Berhad

      30,700        47,888  

Mobile TeleSystems PJSC, ADR

      12,700        154,178  

MTN Group Ltd.

      12,378        137,298  

PLDT Inc.

      4,030        123,257  

PT XL Axiata Tbk

      48,400        10,809 * 

SK Telecom Co., Ltd.

      475        118,100  

 

See Notes to Schedule of Investments.

 

10

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited) (cont’d)    January 31, 2018

 

 

SECURITY

    SHARES      VALUE  

Wireless Telecommunication Services - (continued)

      

Taiwan Mobile Co., Ltd.

      10,000      $ 38,256  

Tim Participacoes SA

      6,859        29,064  

Turkcell Iletisim Hizmetleri AS

      23,798        98,889  

Vodacom Group Ltd.

      4,010        55,345  
     

 

 

  

Total Wireless Telecommunication Services

         1,592,231  
     

 

 

  

TOTAL TELECOMMUNICATION SERVICES

         2,153,198  
     

 

 

  
UTILITIES - 6.1%      

Electric Utilities - 3.2%

      

Enel Americas SA

      96,051        22,466  

Enel Chile SA

      89,429        11,275  

Korea Electric Power Corp.

      3,516        117,710 * 

PGE Polska Grupa Energetyczna SA

      24,345        86,525 * 

RAO UES PJSC

      1,138,000        76,726 * 

RusHydro PJSC

      3,513,000        45,528 * 

Tata Power Co., Ltd.

      16,559        23,158  

Tauron Polska Energia SA

      29,173        26,423 * 

Tenaga Nasional Berhad

      37,400        151,414  
     

 

 

  

Total Electric Utilities

         561,225  
     

 

 

  

Gas Utilities - 1.2%

      

China Gas Holdings Ltd.

      12,000        35,129  

China Resources Gas Group Ltd.

      8,000        26,334  

ENN Energy Holdings Ltd.

      6,000        46,327  

GAIL India Ltd.

      6,472        48,741  

Korea Gas Corp.

      342        15,805 * 

Petronas Gas Berhad

      8,000        36,739  
     

 

 

  

Total Gas Utilities

         209,075  
     

 

 

  

Independent Power and Renewable Electricity Producers - 1.1%

      

CGN Power Co., Ltd., Class H Shares

      86,000        24,296  

China Longyuan Power Group Corp., Ltd., Class H Shares

      24,000        17,549  

China Resources Power Holdings Co., Ltd.

      12,000        22,151  

Colbun SA

      42,637        10,602  

Enel Generacion Chile SA

      10,160        9,720  

Engie Brasil Energia SA

      1,386        15,635  

Huaneng Power International Inc., Class H Shares

      32,000        20,658  

Huaneng Renewables Corp., Ltd., Class H Shares

      32,000        11,086  

NTPC Ltd.

      22,987        61,548  
     

 

 

  

Total Independent Power and Renewable Electricity Producers

         193,245  
     

 

 

  

Multi-Utilities - 0.2%

      

YTL Corp. Berhad

      40,392        15,855  

YTL Power International Berhad

      30,294        9,715  
     

 

 

  

Total Multi-Utilities

         25,570  
     

 

 

  

Water Utilities - 0.4%

      

Aguas Andinas SA, Class A Shares

      16,291        10,972  

Beijing Enterprises Water Group Ltd.

      32,000        23,031  

Companhia de Saneamento Basico do Estado de Sao Paulo

      868        9,911  

Guangdong Investment Ltd.

      20,000        29,760  
     

 

 

  

Total Water Utilities

         73,674  
     

 

 

  

TOTAL UTILITIES

         1,062,789  
     

 

 

  

TOTAL COMMON STOCKS
(Cost - $13,288,832)

         17,068,272  
     

 

 

  
INVESTMENTS IN UNDERLYING FUNDS - 0.3%      

Vanguard International Equity Index Funds - Vanguard Emerging Markets Stock Index Fund, Vanguard FTSE Emerging Markets ETF Shares
(Cost - $43,787)

      900        44,856  
     

 

 

  
PREFERRED STOCKS - 1.3%      
CONSUMER DISCRETIONARY - 0.1%      

Multiline Retail - 0.1%

      

Lojas Americanas SA

      2,503        13,277  
     

 

 

  
CONSUMER STAPLES - 0.1%      

Beverages - 0.1%

      

Embotelladora Andina SA, Class B Shares

      2,064        10,066  
     

 

 

  
ENERGY - 0.2%      

Oil, Gas & Consumable Fuels - 0.2%

      

Petroleo Brasileiro SA

      5,023        31,059 * 
     

 

 

  
FINANCIALS - 0.6%      

Banks - 0.6%

      

Banco Bradesco SA

      2,063        26,387  

Bancolombia SA

      1,837        21,011  

Itau Unibanco Holding SA

      1,790        29,361  

Itausa - Investimentos Itau SA

      5,378        22,366  
     

 

 

  

TOTAL FINANCIALS

         99,125  
     

 

 

  
MATERIALS - 0.1%      

Chemicals - 0.1%

      

Sociedad Quimica y Minera de Chile SA, Class B Shares

      471        26,389  
     

 

 

  

 

See Notes to Schedule of Investments.

 

11

LEGG MASON EMERGING MARKETS DIVERSIFIED CORE ETF

 

Schedule of investments (unaudited) (cont’d)    January 31, 2018

 

 

SECURITY

           SHARES      VALUE  
TELECOMMUNICATION SERVICES - 0.2%  

Diversified Telecommunication Services - 0.2%

 

Telefonica Brasil SA

 

      2,339      $ 39,534  
        

 

 

  

TOTAL PREFERRED STOCKS
(Cost - $125,301)

 

      219,450  
        

 

 

  
     EXPIRATION
DATE		      RIGHTS
         
RIGHTS - 0.0%  

Agile Group Holdings Ltd.

      2/1/18        120        0 *(a)(b) 

Piramal Enterprises Ltd.

      3/30/18        19        109 *(a) 

Robinsons Land Corp.

      2/8/18        5,776        304 *(a) 
        

 

 

  

TOTAL RIGHTS
(Cost - $0)

 

      413  
        

 

 

  

TOTAL INVESTMENTS - 100.1%
(Cost - $13,457,920)

 

      17,332,991  

Liabilities in Excess of Other Assets - (0.1)%

 

      (10,350 ) 
        

 

 

  

TOTAL NET ASSETS - 100.0%

 

    $ 17,322,641  
        

 

 

  

 

* Non-income producing security.

 

(a) Security is valued in good faith in accordance with procedures approved by the Board of Trustees (See Note 1).

 

(b) Value is less than $1.

 

(c) Security is valued using significant unobservable inputs (See Note 1).

 

Abbreviations used in this schedule:
ADR   

— American Depositary Receipts

ETF   

— Exchange-Traded Fund

GDR   

— Global Depositary Receipts

PJSC   

— Private Joint Stock Company

REIT   

— Real Estate Investment Trust

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.

 

12

Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Legg Mason Emerging Markets Diversified Core 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 an open-end management investment company.

The Fund is an exchange-traded fund (“ETF”). ETFs are funds that trade like other publicly-traded securities. The Fund is designed to track an index. Similar to shares of an index mutual fund, each share of the Fund represents an ownership interest in an underlying portfolio of securities intended to track an index. 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 partially in-kind for a basket of securities and partially in 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 to track the investment results of the QS DBI Emerging Markets Diversified Index (the “Underlying Index”). The Underlying Index seeks to provide exposure to equity securities in emerging markets and is based on a proprietary methodology created and sponsored by QS Investors, LLC, the Fund’s subadviser.

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. Prior to December 1, 2017, short-term fixed income securities that would mature in 60 days or less were valued at amortized cost, unless it was determined that using this method would not reflect an investment’s fair value. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern 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

 

13

Notes to Schedule of Investments (unaudited) (continued)

 

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.

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  

Long-Term Investments†:

 

Common Stocks:

 

Consumer Discretionary

    $ 1,963,504      $ 113,063        —       $ 2,076,567  

Consumer Staples

      1,939,786        40,834      $ 0 *      1,980,620  

Energy

      1,355,105        40,433        —         1,395,538  

Financials

      2,782,634        32,639        —         2,815,273  

Materials

      1,648,180        15,673        —         1,663,853  

Telecommunication Services

      2,057,721        95,477        —         2,153,198  

Other Common Stocks

      4,983,223        —          —         4,983,223  

Investments in Underlying Funds

      44,856        —          —         44,856  

Preferred Stocks

      219,450        —          —         219,450  

Rights

      —          413        —         413  
  

 

 

     

 

 

     

 

 

    

 

 

  

Total Investments

    $ 16,994,459      $ 338,532      $ 0 *    $ 17,332,991  
  

 

 

     

 

 

     

 

 

    

 

 

  

 

† See Schedule of Investments for additional detailed categorizations.

 

* Amount represents less than $1.

 

14

 

ITEM 2. CONTROLS AND PROCEDURES.

 

  (a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

 

  (b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

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.

Legg Mason ETF Investment Trust

 

By   /s/    JANE TRUST        
  Jane Trust
  Chief Executive Officer

Date:

  

March 26, 2018

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/    JANE TRUST        
  Jane Trust
  Chief Executive Officer

Date:

  

March 26, 2018

By   /s/    RICHARD F. SENNETT        
  Richard F. Sennett
  Principal Financial Officer

Date:

  

March 26, 2018