ALPS Clean Energy ETF (ACES) NPORT-PALPS Active REIT ETF (Aug 2024 report)

 

ALPS ETF Trust

 

Schedules of Investments

(Unaudited)

 

August 31, 2024

 

See Notes to Quarterly Schedule of Investments.

See Notes to Quarterly Schedule of Investments.

See Notes to Quarterly Schedule of Investments.

  

Investment Abbreviations:

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

SOFRINDX - Secured Overnight Financing Rate Index

TI – Treasury Index

Reference Rates:

3M US L - 3 Month LIBOR as of August 31, 2024 was 5.28%

3M US SOFR - 3 Month SOFR as of August 31, 2024 was 5.02%

1M CME TERM SOFR - 1 Month CME TERM SOFR as of August 31, 2024 was 5.20%

3M CME TERM SOFR - 3 Month CME TERM SOFR as of August 31, 2024 was 5.02%

30D US SOFR - 30 Day SOFR as of August 31, 2024 was 5.35%

1D US SOFR - 1 Day SOFR as of August 31, 2024 was 5.32%

1M US SOFR- 1 Month SOFR as of August 31, 2024 was 5.20%

1Y US TI -  1 Year US TI as of August 31, 2024 was 4.38%

5Y US TI -  5 Year US TI as of August 31, 2024 was 3.71%

 

(a)	Floating or variable rate security.  The reference rate is described above.  The rate in effect as of August 31, 2024 is based on the reference rate plus the displayed spread as of the security's last reset date.
(b)	Interest only security.
(c)	Issued with zero coupon.
(d)	Security exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions exempt from registration, normally to qualified institutional buyers. As of August 31, 2024, the aggregate market value of those securities was $108,176,826, representing 12.18% of net assets.
(e)	The SOFRINDX is a compounded average of the daily Secured Overnight Financing Rate determined by reference to the SOFR Index for any interest period.
(f)	Perpetual maturity.  This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(g)	Non-Income Producing Security.

 

See Notes to Quarterly Statement of Investments.

 

 

ALPS ETF Trust

Notes to Quarterly Schedules of Investments

August 31, 2024 (Unaudited)

 

1. Portfolio Valuation

 

Shares of the ALPS Active REIT ETF and the Level Four Large Cap Growth Active ETF are listed on the NASDAQ Stock Market LLC (“NASDAQ”). Shares of the ALPS | O’Shares Europe Quality Dividend ETF, the ALPS | O’Shares Global Internet Giants ETF, the ALPS | O’Shares U.S. Quality Dividend ETF and ALPS | O’Shares U.S. Small-Cap Quality Dividend ETF are listed on the Cboe BZX Exchange, Inc. (the “Cboe BZX”). Shares of the Alerian Energy Infrastructure ETF, the Alerian MLP ETF, the ALPS Active Equity Opportunity ETF, the ALPS Clean Energy ETF, the ALPS Disruptive Technologies ETF, the ALPS Emerging Sector Dividend Dogs ETF, the ALPS Equal Sector Weight ETF, the ALPS Global Travel Beneficiaries ETF, the ALPS Intermediate Municipal Bond ETF, the ALPS International Sector Dividend Dogs ETF, the ALPS Medical Breakthroughs ETF, the ALPS REIT Dividend Dogs ETF, the ALPS Sector Dividend Dogs ETF, the ALPS | Smith Core Plus Bond ETF, the Barron’s 400^SM ETF, the RiverFront Dynamic Core Income ETF, the RiverFront Dynamic US Dividend Advantage ETF, and the RiverFront Strategic Income Fund (each a “Fund” and along with ALPS Active REIT ETF, Level Four Large Cap Growth Active ETF, ALPS | O’Shares Europe Quality Dividend ETF, ALPS | O’Shares Global Internet Giants ETF, ALPS | O’Shares U.S. Quality Dividend ETF, ALPS | O’Shares U.S. Small-Cap Quality Dividend ETF, collectively, the “Funds”) are listed on the New York Stock Exchange Arca, Inc. (“NYSE”). Each Fund’s Net Asset Value (“NAV”) is determined daily, as of the close of regular trading on the NYSE, normally 4:00 p.m. Eastern time, on each day the NYSE is open for trading. The NAV is computed by dividing the value of all assets of each Fund (including accrued interest and dividends), less all liabilities (including accrued expenses and dividends declared but unpaid), by the total number of shares outstanding.

 

Portfolio securities listed on any exchange other than the NASDAQ are valued at the last sale price on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the most recent bid and ask prices on such day. Securities traded on the NASDAQ are valued at the NASDAQ Official Closing Price as determined by NASDAQ. Portfolio securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined at the close of the exchange representing the principal market for such securities. Portfolio securities traded in the over-the-counter market, but excluding securities traded on the NASDAQ, are valued at the last quoted sale price in such market.

 

Each Fund’s investments are valued at market value or, in the absence of market value with respect to any portfolio securities, at fair value according to procedures adopted by the Trust’s Board of Trustees (the “Board”). Pursuant to Rule 2a-5 under the 1940 Act, the Board designated ALPS Advisors, Inc. (the "Adviser") as the valuation designee ("Valuation Designee") for each Fund to perform the fair value determinations relating to Fund investments. The Adviser may carry out its designated responsibilities as Valuation Designee through various teams and committees. When market quotations are not readily available or when events occur that make established valuation methods unreliable, securities of the Funds may be valued in good faith by the Valuation Designee. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; a security whose market price is not available from a pre-established primary pricing source or the pricing source is not willing to provide a price; a security with respect to which an event has occurred that is most likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s NAV or make it difficult or impossible to obtain a reliable market quotation; or a security whose price, as provided by the pricing service, does not reflect the security’s “fair value” due to the security being de-listed from a national exchange or the security’s primary trading market is temporarily closed at a time when, under normal conditions, it would be open. As a general principle, the current “fair value” of a security would be the amount which the owner might reasonably expect to receive from the sale on the applicable exchange or principal market. A variety of factors may be considered in determining the fair value of such securities.

 

The accounting records of each Fund are maintained in U.S. dollars.

 

Certain Funds may directly purchase securities of foreign issuers. Investments in non-U.S. issuers may involve unique risks compared to investing in securities of U.S. issuers, including, among others, greater market volatility than U.S. securities and less complete financial information than for U.S. issuers. In addition, adverse political, economic or social developments could undermine the value of a Fund’s investments or prevent a Fund from realizing the full value of its investments. Financial reporting standards for companies based in foreign markets differ from those in the United States. Finally, the value of the currency of the country in which a Fund has invested could decline relative to the value of the U.S. dollar, which may affect the value of the investment to U.S. investors.

Because foreign markets may be open on different days than the days during which investors may purchase the shares of each Fund, the value of each Fund’s securities may change on the days when investors are not able to purchase the shares of the Funds. The value of securities denominated in foreign currencies is converted into U.S. dollars using exchange rates determined daily as of the close of regular trading on the NYSE or NASDAQ. Any use of a different rate from the rates used by the Index may adversely affect a Fund’s ability to track their Index.

 

2. Fair Value Measurements

 

Each Fund discloses the classification of its fair value measurements following a three-tier hierarchy based on the inputs used to measure fair value. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

 

Valuation techniques used to value each Fund’s investments by major category are as follows:

 

Equity securities, including restricted securities, Exchange Traded Funds, Closed-End Funds and Limited Partnerships, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the mean of the most recent quoted bid and ask prices on such day and are generally categorized as Level 2 in the hierarchy. Investments in open-end mutual funds are valued at their closing NAV each business day and are categorized as Level 1 in the hierarchy.

 

Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. For corporate bonds, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. Certain Funds may invest a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.

 

Treasury Bills and Treasury Notes are typically valued at the mean between the evaluated bid and ask prices formulated by an independent pricing service and are categorized as Level 2 in the hierarchy, due to their active trading, short-term maturity and liquidity.

 

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.

 

Various inputs are used in determining the value of each Fund’s investments as of the end of the reporting period. When inputs used fall into different levels of the fair value hierarchy, the level in the hierarchy within which the fair value measurement falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments.

 

These inputs are categorized in the following hierarchy under applicable financial accounting standards:

 

Level 1 –	Unadjusted quoted prices in active markets for identical investments, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date;
Level 2 –	Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and
Level 3 –	Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.

The following is a summary of the inputs used to value each Fund’s investments at August 31, 2024:

 

Alerian Energy Infrastructure ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Canadian Energy Infrastructure Companies*		$	45,155,333			$	–			$	–			$	45,155,333
Exchange Traded Fund			3,839,237				–				–				3,839,237
U.S. Energy Infrastructure Companies*			50,885,416				–				–				50,885,416
U.S. Energy Infrastructure MLPs*			47,687,869				–				–				47,687,869
U.S. General Partners*			27,739,118				–				–				27,739,118
Short Term Investments			73,325				–				–				73,325
Total		$	175,380,298			$	–			$	–			$	175,380,298

 

Alerian MLP ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Master Limited Partnerships*		$	9,184,879,089			$	–			$	–			$	9,184,879,089
Short Term Investments			2,819,362				–				–				2,819,362
Total		$	9,187,698,451			$	–			$	–			$	9,187,698,451

 

ALPS Active Equity Opportunity ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	21,884,747			$	–			$	–			$	21,884,747
Short Term Investments			1,109,191				–				–				1,109,191
Total		$	22,993,938			$	–			$	–			$	22,993,938

 

ALPS Active REIT ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	34,906,437			$	–			$	–			$	34,906,437
Short Term Investments			574,402				–				–				574,402
Total		$	35,480,839			$	–			$	–			$	35,480,839

 

ALPS Clean Energy ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	185,934,919			$	–			$	–			$	185,934,919
Master Limited Partnerships*			14,934,948				–				–				14,934,948
Short Term Investments			20,826,497				–				–				20,826,497
Total		$	221,696,364			$	–			$	–			$	221,696,364

 

ALPS Disruptive Technologies ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	93,694,082			$	–			$	–			$	93,694,082
Master Limited Partnerships*			873,924				–				–				873,924
Short Term Investments			2,431,622				–				–				2,431,622
Total		$	96,999,628			$	–			$	–			$	96,999,628

 

ALPS Emerging Sector Dividend Dogs ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*
Russia		$	–			$	–			$	1,233			$	1,233
Other*		$	26,939,588				–				–			$	26,939,588
Short Term Investments			268,819				–				–				268,819
Total		$	27,208,407			$	–			$	1,233			$	27,209,640

ALPS Equal Sector Weight ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Exchange Traded Funds*		$	378,492,047			$	–			$	–			$	378,492,047
Short Term Investments			279,361				–				–				279,361
Total		$	378,771,408			$	–			$	–			$	378,771,408

 

ALPS Global Travel Beneficiaries ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	5,860,910			$	–			$	–			$	5,860,910
Short Term Investments			97,739				–				–				97,739
Total		$	5,958,649			$	–			$	–			$	5,958,649

 

ALPS Intermediate Municipal Bond ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Government Bonds*		$	–			$	594,397			$	–			$	594,397
Municipal Bonds*			–				34,675,547				–				34,675,547
Short Term Investments			136,714				–				–				136,714
Total		$	136,714			$	35,269,944			$	–			$	35,406,658

 

ALPS International Sector Dividend Dogs ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	304,943,824			$	–			$	–			$	304,943,824
Short Term Investments			17,714,602				–				–				17,714,602
Total		$	322,658,426			$	–			$	–			$	322,658,426

 

ALPS Medical Breakthroughs ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	114,062,316			$	–			$	–			$	114,062,316
Short Term Investments			4,757,617				–				–				4,757,617
Total		$	118,819,933			$	–			$	–			$	118,819,933

 

ALPS | O'Shares Europe Quality Dividend ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	42,520,767			$	–			$	–			$	42,520,767
Short Term Investments			2,125,864				–				–				2,125,864
Total		$	44,646,631			$	–			$	–			$	44,646,631

 

ALPS | O'Shares Global Internet Giants ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	121,960,048			$	–			$	–			$	121,960,048
Short Term Investments			747,575				–				–				747,575
Total		$	122,707,623			$	–			$	–			$	122,707,623

ALPS | O'Shares U.S. Quality Dividend ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	811,431,051			$	–			$	–			$	811,431,051
Short Term Investments			94,975				–				–				94,975
Total		$	811,526,026			$	–			$	–			$	811,526,026

ALPS | O'Shares U.S. Small-Cap Quality Dividend ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	726,388,434			$	–			$	–			$	726,388,434
Short Term Investments			1,583,049				–				–				1,583,049
Total		$	727,971,483			$	–			$	–			$	727,971,483

 

ALPS REIT Dividend Dogs ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	13,336,693			$	–			$	–			$	13,336,693
Short Term Investments			8,255				–				–				8,255
Total		$	13,344,948			$	–			$	–			$	13,344,948

 

ALPS Sector Dividend Dogs ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	1,225,480,287			$	–			$	–			$	1,225,480,287
Short Term Investments			597,080				–				–				597,080
Total		$	1,226,077,367			$	–			$	–			$	1,226,077,367

 

ALPS | Smith Core Plus Bond ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Bank Loans*		$	–			$	20,057,839			$	–			$	20,057,839
Collateralized Mortgage Obligations*			–				35,455,540				–				35,455,540
Commercial Mortgage-Backed Securities*			–				7,000,635				–				7,000,635
Mortgage-Backed Securities*			–				97,248,413				–				97,248,413
Corporate Bonds*			57,883				325,652,977				–				325,710,860
Government Bonds*			–				387,706,453				–				387,706,453
Preferred Stock*			1,696,689				4,695,484				–				6,392,173
Short Term Investments			7,751,809				–				–				7,751,809
Total		$	9,506,381			$	877,817,341			$	–			$	887,323,722

Barron's 400 ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	141,718,821			$	–			$	–			$	141,718,821
Limited Partnerships*			2,555,198				–				–				2,555,198
Short Term Investments			1,564,982				–				–				1,564,982
Total		$	145,839,001			$	–			$	–			$	145,839,001

 

Level Four Large Cap Growth Active ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	79,970,141			$	–			$	–			$	79,970,141
Short Term Investments			2,742,317				–				–				2,742,317
Total		$	82,712,458			$	–			$	–			$	82,712,458

 

RiverFront Dynamic Core Income ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Corporate Bonds*		$	–			$	17,441,858			$	–			$	17,441,858
Government Bonds*			–				4,645,670				–				4,645,670
Short Term Investments			691,980				–				–				691,980
Total		$	691,980			$	22,087,528			$	–			$	22,779,508

 

RiverFront Dynamic US Dividend Advantage ETF
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Common Stocks*		$	75,088,817			$	–			$	–			$	75,088,817
Total		$	75,088,817			$	–			$	–			$	75,088,817

 

RiverFront Strategic Income Fund
Investments in Securities at Value		Level 1 - Quoted and Unadjusted Prices				Level 2 - Other Significant Observable Inputs				Level 3 - Significant Unobservable Inputs				Total
Corporate Bonds*		$	–			$	69,622,679			$	–			$	69,622,679
Government Bonds*			–				21,786,743				–				21,786,743
Short Term Investments			655,384				–				–				655,384
Total		$	655,384			$	91,409,422			$	–			$	92,064,806

 

*	For a detailed sector, state or country breakdown, see the accompanying Schedule of Investments.

The Funds, except for the ALPS Emerging Sector Dividend Dogs ETF, did not have any securities that used significant unobservable inputs (Level 3) in determining fair value and there were no transfers into or out of Level 3 during the nine months ended August 31, 2024.  As of August 31, 2024, the ALPS Emerging Sector Dividend Dogs ETF held securities classified as Level 3 in the fair value hierarchy valued at $1,233, which represents 0.01% of net assets.

 

3. Lending of Portfolio Securities

 

Alerian Energy Infrastructure ETF, ALPS Active Equity Opportunity ETF, ALPS Active REIT ETF, ALPS Clean Energy ETF, ALPS Disruptive Technologies ETF, ALPS Emerging Sector Dividend Dogs ETF, ALPS Equal Sector Weight ETF, ALPS Global Travel Beneficiaries ETF, ALPS International Sector Dividend Dogs ETF, ALPS Medical Breakthroughs ETF, ALPS | O’Shares Europe Quality Dividend ETF, ALPS | O’Shares Global Internet Giants ETF, ALPS | O’Shares U.S. Quality Dividend ETF, ALPS | O’Shares U.S. Small-Cap Quality Dividend ETF, ALPS REIT Dividend Dogs ETF, ALPS Sector Dividend Dogs ETF, Barron’s 400^SM ETF, Level Four Large Cap Growth Active ETF, and RiverFront Dynamic US Dividend Advantage ETF have entered into a securities lending agreement with State Street Bank & Trust Co. (“SSB”), the Funds’ lending agent. The Funds may lend their portfolio securities only to borrowers that are approved by SSB. Each Fund will limit such lending to not more than 33 1/3% of the value of its total assets. Each Fund’s securities held as SSB as custodian shall be available to be lent except those securities the Fund or ALPS Advisors Inc. specifically identifies in writing as not being available for lending. The borrower pledges and maintains with each Fund collateral consisting of cash (U.S. Dollars only), securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, and cash equivalents (including irrevocable bank letters of credit issued by a person other than the borrower or an affiliate of the borrower). The initial collateral received by each Fund is required to have a value of no less than 102% of the market value of the loaned securities for U.S equity securities and a value of no less than 105% of the market value for non-U.S. equity securities. The collateral is maintained thereafter, at a market value equal to not less than 102% of the current value of the U.S. equity securities on loan and not less than 105% of the current value of the non-U.S. equity securities on loan. The market value of the loaned securities is determined at the close of each business day and any additional required collateral is delivered to each Fund on the next business day. During the term of the loan, each Fund is entitled to all distributions made on or in respect of the loaned securities. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the customary time period for settlement of securities transactions.

 

Any cash collateral received is reinvested in a money market fund managed by SSB as disclosed in each Fund’s Schedule of Investments. Non-cash collateral, in the form of securities issued or guaranteed by the U.S. government or its agencies or instrumentalities, is not disclosed in a Fund’s Schedule of Investments as it is held by the lending agent on behalf of each Fund, and each Fund does not have the ability to re-hypothecate these securities.

 

The following is a summary of each Fund’s securities lending agreements and related cash and non-cash collateral received as of August 31, 2024:

 

Fund		Market Value of Securities on Loan				Cash Collateral Received				Non-Cash Collateral Received				Total Collateral Received
Alerian Energy Infrastructure ETF		$	512,908			$	–			$	518,675			$	518,675
ALPS Active Equity Opportunity ETF			340,405				343,116				–				343,116
ALPS Clean Energy ETF			45,312,236				20,716,174				26,629,740				47,345,914
ALPS Disruptive Technologies ETF			5,261,069				2,213,030				3,347,442				5,560,472
ALPS Emerging Sector Dividend Dogs ETF			1,706,455				221,204				1,540,536				1,761,740
ALPS Global Travel Beneficiaries ETF			64,835				67,006				1,214				68,220
ALPS International Sector Dividend Dogs ETF			28,181,140				17,218,134				12,543,682				29,761,816
ALPS Medical Breakthroughs ETF			24,474,260				4,688,009				20,908,961				25,596,970
ALPS | O'Shares Europe Quality Dividend ETF			1,920,692				2,032,446				–				2,032,446
ALPS | O'Shares Global Internet Giants ETF			889,376				586,607				334,837				921,444
ALPS | O'Shares U.S. Small-Cap Quality Dividend ETF			876,997				884,379				–				884,379

Fund		Market Value of Securities on Loan				Cash Collateral Received				Non-Cash Collateral Received				Total Collateral Received
Barron's 400 ETF			13,062,279				954,341				12,389,347				13,343,688
RiverFront Dynamic US Dividend Advantage ETF			724,563				–				749,272				749,272

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by SSB. SSB’s indemnity allows for full replacement of securities lent wherein SSB will purchase the unreturned loaned securities on the open market by applying the proceeds of the collateral, or to the extent such proceeds are insufficient or the collateral is unavailable, SSB will purchase the unreturned loan securities at SSB’s expense. However, the Funds could suffer a loss if the value of the investments purchased with cash collateral falls below the value of the cash collateral received.

 

4. Return of Capital Estimates

 

Distributions received from the Alerian MLP ETF (the “Alerian Fund”) investments in Master Limited Partnerships (“MLPs”) may be comprised of both income and return of capital. Return of capital distributions are not taxable income to the shareholder, but reduce the investor’s tax basis in the investor’s Fund Shares. Such a reduction in tax basis will result in larger taxable gains and/or lower tax losses on a subsequent sale of Fund Shares. Shareholders who periodically receive the payment of dividends or other distributions consisting of a return of capital may be under the impression that they are receiving net profits from the Alerian Fund when, in fact, they are not. Shareholders should not assume that the source of the distributions is from the net profits of the Alerian Fund.

 

5. Master Limited Partnerships

 

MLPs are publicly traded partnerships engaged in, among other things, the transportation, storage and processing of minerals and natural resources and are treated as partnerships for U.S. federal income tax purposes. By confining their operations to these specific activities, their interests, or units, are able to trade on public securities exchanges exactly like the shares of a corporation, without entity level taxation. To qualify as a MLP and to not be taxed as a corporation, a partnership must receive at least 90% of its income from qualifying sources as set forth in Section 7704(d) of the Internal Revenue Code of 1986, as amended (the “Code”). These qualifying sources include, among other things, natural resource-based activities such as the processing, transportation and storage of mineral or natural resources. MLPs generally have two classes of owners; the general partner and limited partners. The general partner of an MLP is typically owned by a major energy company, an investment fund, the direct management of the MLP, or is an entity owned by one or more of such parties. The general partner may be structured as a private or publicly traded corporation or other entity. The general partner typically controls the operations and management of the MLP through an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units. Limited partners typically own the remainder of the partnership, through ownership of common units, and have a limited role in the partnership’s operations and management.

 

MLPs are typically structured such that common units and general partner interests have first priority to receive quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid. Once common and general partner interests have been paid, subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD is paid to both common and subordinated units and is distributed to both common and subordinated units generally on a pro rata basis. The general partner is also eligible to receive incentive distributions if the general partner operates the business in a manner which results in distributions paid per common unit surpassing specified target levels. As the general partner increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of the incremental cash distributions.

 

6. Affiliated Companies

 

As defined by the Investment Company Act of 1940, an affiliated person, including an affiliated company, is one in which a Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund.

 

For the nine months ended August 31, 2024, the Alerian MLP ETF held shares in the following affiliates, as defined by the Investment Company Act of 1940:

 

Security Name		Share Balance as of August 31, 2024				Market Value as of November 30, 2023				Purchases				Purchases In-Kind				Sales				Market Value as of August 31, 2024				Dividends				Change in Unrealized Appreciation / (Depreciation)				Realized Gain / (Loss)
EnLink Midstream LLC			43,018,324			$	587,354,365			$	16,113,556			$	95,358,254			$	(106,438,198	)		$	617,743,133			$	-			$	46,400,357			$	(4,183,828	)
Genesis Energy LP			18,879,331				241,891,872				925,346				40,586,584				(44,490,978	)			261,667,528				-				32,399,384				(1,114,638	)
Global Partners LP			4,558,809				-				177,370,348				31,273,803				(26,053,025	)			205,511,110				-				33,541,376				(955,029	)
Hess Midstream LP, Class A			15,920,561				387,826,559				133,981,962				82,835,776				(72,216,573	)			594,632,953				7,087,564				83,494,049				(1,258,803	)
NuStar Energy LP			-				387,503,318				196,707				37,584,243				(274,952,975	)			-				-				(136,828,141	)			(1,220,278	)
Plains All American Pipeline LP			63,957,778				1,094,573,909				17,440,273				183,467,717				(264,487,878	)			1,147,402,537				-				184,406,454				(8,215,763	)
Suburban Propane Partners LP			11,131,584				-				188,284,923				32,617,640				(25,667,517	)			194,802,720				-				11,521,486				(1,168,130	)
Sunoco LP			18,895,289				-				580,411,297				124,781,030				(98,853,325	)			1,023,557,805				-				219,548,800				(4,996,265	)
USA Compression Partners LP			12,484,302				-				298,788,675				39,501,896				(29,051,910	)			281,021,638				-				(8,029,539	)			(3,771,565	)
Western Midstream Partners LP			27,841,747				1,024,380,576				9,813,048				181,124,618				(411,290,812	)			1,074,134,599				-				274,102,264				65,929,898
																						$	5,400,474,023			$	7,087,564			$	740,556,490			$	39,045,599