2023 ETF Series Trust
03/06/2026 | Press release | Distributed by Public on 03/06/2026 14:58
Semi-Annual Report by Investment Company (Form N-CSRS)
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 811-23883
| The 2023 ETF Series Trust |
(Exact name of registrant as specified in charter)
The 2023 ETF Series Trust
234 West Florida Street, Suite 700
Milwaukee, WI 53204
(Address of principal executive offices) (Zip code)
The 2023 ETF Series Trust
234 West Florida Street, Suite 700
Milwaukee, WI 53204
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-262-267-4589
Date of fiscal year end: June 30
Date of reporting period: December 31, 2025
Item 1. Reports to Stockholders.
| (a) | Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1). |
The Report to Shareholders is attached herewith.
Brandes International ETF
BINV | Cboe BZX Exchange, Inc.
SEMI-ANNUAL SHAREHOLDER REPORT | December 31, 2025
The semi-annual shareholder report contains important information about the Brandes International ETF for the period July 1, 2025 through December 31, 2025. You can find additional information about the Fund at https://www.brandes.com/etfs/resources. You can also request this information by contacting us at (866) 307-0477.
What were the Fund costs for the period?
(Based on a hypothetical $10,000 investment)
|
Fund
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Brandes International ETF
|
$38
|
0.70%
|
Key Fund Statistics
The following table outlines key fund statistics that you should pay attention to.
- Fund net assets$404,406,459
- Total advisory fees paid$1,076,168
- Total number of portfolio holdings66
- Portfolio turnover rate0%
Tabular Representation of Holdings
The table below shows the investment makeup of the Fund.
|
Sectors
|
% of Net Assets
|
|
Consumer Staples
|
21.1%
|
|
Health Care
|
16.1%
|
|
Consumer Discretionary
|
13.4%
|
|
Information Technology
|
10.7%
|
|
Industrials
|
10.1%
|
|
Financials
|
7.4%
|
|
Energy
|
5.4%
|
|
Communication Services
|
5.2%
|
|
Materials
|
4.2%
|
|
Utilities
|
2.9%
|
|
Real Estate
|
1.6%
|
|
Money Market Funds
|
1.3%
|
|
Other Assets in Excess of Liabilities
|
0.6%
|
|
Total
|
100.0%
|
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting at the website address or contact number included at the beginning of this shareholder report.
Brandes U.S. Small-Mid Cap Value ETF
BSMC | Cboe BZX Exchange, Inc.
SEMI-ANNUAL SHAREHOLDER REPORT | December 31, 2025
The semi-annual shareholder report contains important information about the Brandes U.S. Small-Mid Cap Value ETF for the period July 1, 2025 through December 31, 2025. You can find additional information about the Fund at https://www.brandes.com/etfs/resources. You can also request this information by contacting us at (866) 307-0477.
What were the Fund costs for the period?
(Based on a hypothetical $10,000 investment)
|
Fund
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Brandes U.S. Small-Mid Cap Value ETF
|
$37
|
0.70%
|
Key Fund Statistics
The following table outlines key fund statistics that you should pay attention to.
- Fund net assets$140,631,910
- Total advisory fees paid$438,796
- Total number of portfolio holdings65
- Portfolio turnover rate4%
Tabular Representation of Holdings
The table below shows the investment makeup of the Fund.
|
Sectors
|
% of Net Assets
|
|
Health Care
|
20.9%
|
|
Industrials
|
20.0%
|
|
Information Technology
|
14.5%
|
|
Consumer Staples
|
11.0%
|
|
Financials
|
10.1%
|
|
Materials
|
6.6%
|
|
Energy
|
6.3%
|
|
Communication Services
|
4.2%
|
|
Consumer Discretionary
|
2.7%
|
|
Money Market Funds
|
3.6%
|
|
Other Assets in Excess of Liabilities
|
0.1%
|
|
Total
|
100.0%
|
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting at the website address or contact number included at the beginning of this shareholder report.
Brandes U.S. Value ETF
BUSA | Cboe BZX Exchange, Inc.
SEMI-ANNUAL SHAREHOLDER REPORT | December 31, 2025
The semi-annual shareholder report contains important information about the Brandes U.S. Value ETF for the period July 1, 2025 through December 31, 2025. You can find additional information about the Fund at https://www.brandes.com/etfs/resources. You can also request this information by contacting us at (866) 307-0477.
What were the Fund costs for the period?
(Based on a hypothetical $10,000 investment)
|
Fund
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Brandes U.S. Value ETF
|
$32
|
0.60%
|
Key Fund Statistics
The following table outlines key fund statistics that you should pay attention to.
- Fund net assets$281,874,343
- Total advisory fees paid$765,004
- Total number of portfolio holdings64
- Portfolio turnover rate1%
Tabular Representation of Holdings
The table below shows the investment makeup of the Fund.
|
Sectors
|
% of Net Assets
|
|
Health Care
|
24.6%
|
|
Financials
|
22.2%
|
|
Industrials
|
13.9%
|
|
Information Technology
|
10.8%
|
|
Energy
|
6.2%
|
|
Communication Services
|
5.9%
|
|
Consumer Staples
|
4.5%
|
|
Materials
|
4.2%
|
|
Consumer Discretionary
|
3.1%
|
|
Utilities
|
3.1%
|
|
Money Market Funds
|
0.9%
|
|
Other Assets in Excess of Liabilities
|
0.6%
|
|
Total
|
100.0%
|
Availability of Additional Information
You can find additional information about the Fund such as the prospectus, financial information, fund holdings and proxy voting at the website address or contact number included at the beginning of this shareholder report.
| (b) | Not applicable |
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 7(a) of this form. |
| (b) | Not applicable. |
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.
| (a) | An open-end management investment company registered on Form N-1A [17 CFR 239.15A and 17 CFR 274.11A] must file its most recent annual or semi-annual financial statements required, and for the periods specified, by Regulation S-X. |
The Registrant's Semi-Annual Financial Statements and Other Information are attached herewith.
2025
Semi-Annual Financial Statements
and Other Information
BRANDES INVESTMENT PARTNERS L.P.
BRANDES INTERNATIONAL ETF (BINV)
BRANDES U.S. SMALL-MID CAP VALUE ETF (BSMC)
BRANDES U.S. VALUE ETF (BUSA)
December 31, 2025 (Unaudited)
(This page intentionally left blank)
Table of Contents
| Schedules of Investments: | |
| Brandes International ETF | 4 |
| Brandes U.S. Small-Mid Cap Value ETF | 7 |
| Brandes U.S. Value ETF | 10 |
| Statements of Assets and Liabilities | 14 |
| Statements of Operations | 15 |
| Statements of Changes in Net Assets | 16 |
| Financial Highlights | 18 |
| Notes to Financial Statements | 20 |
| Additional Information | 27 |
This report is provided for the general information of shareholders and is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
Brandes International ETF
Schedule of Investments
December 31, 2025 (Unaudited)
| Shares | Value | |||||||
| Common Stocks - 96.4% | ||||||||
| Austria - 1.1% | ||||||||
| Erste Group Bank AG | 37,928 | $ | 4,583,646 | |||||
| Brazil - 6.1% | ||||||||
| Ambev SA, ADR | 2,613,320 | 6,454,900 | ||||||
| Embraer SA, ADR | 93,568 | 6,022,972 | ||||||
| Petroleo Brasileiro SA - Petrobras, ADR | 844,448 | 9,516,929 | ||||||
| Telefonica Brasil SA, ADR | 217,854 | 2,583,749 | ||||||
| 24,578,550 | ||||||||
| Canada - 3.8% | ||||||||
| CAE, Inc.* | 221,884 | 6,749,711 | ||||||
| Nutrien Ltd. | 57,987 | 3,578,958 | ||||||
| Open Text Corp. | 152,019 | 4,952,779 | ||||||
| 15,281,448 | ||||||||
| China - 4.2% | ||||||||
| Alibaba Group Holding Ltd., ADR | 75,009 | 10,994,819 | ||||||
| China Resources Beer Holdings Co. Ltd. | 1,808,500 | 6,092,230 | ||||||
| 17,087,049 | ||||||||
| France - 19.1% | ||||||||
| BNP Paribas SA, ADR | 169,668 | 8,042,263 | ||||||
| Capgemini SE | 46,177 | 7,714,606 | ||||||
| Carrefour SA | 515,488 | 8,615,078 | ||||||
| Engie SA | 257,172 | 6,768,638 | ||||||
| Kering SA, ADR | 267,902 | 9,422,113 | ||||||
| Orange SA | 175,210 | 2,922,019 | ||||||
| Pernod Ricard SA | 80,659 | 6,924,780 | ||||||
| Publicis Groupe SA | 60,052 | 6,250,215 | ||||||
| Sanofi SA | 113,648 | 11,040,991 | ||||||
| Societe BIC SA | 55,932 | 3,383,010 | ||||||
| TotalEnergies SE | 92,090 | 6,012,359 | ||||||
| 77,096,072 | ||||||||
| Germany - 6.1% | ||||||||
| Deutsche Post AG | 142,296 | 7,809,518 | ||||||
| Henkel AG & Co. KGaA | 106,205 | 8,107,633 | ||||||
| Infineon Technologies AG | 45,955 | 2,036,364 | ||||||
| SAP SE, ADR | 28,440 | 6,908,360 | ||||||
| 24,861,875 | ||||||||
| Hong Kong - 0.8% | ||||||||
| First Pacific Co. Ltd. | 4,052,000 | 3,102,707 | ||||||
| Israel - 0.8% | ||||||||
| Nice Ltd., ADR* | 27,515 | 3,110,296 | ||||||
| Italy - 1.6% | ||||||||
| Buzzi SpA | 47,987 | 2,930,642 | ||||||
| Eni SpA | 10,760 | 203,963 | ||||||
| Intesa Sanpaolo SpA | 494,349 | 3,437,672 | ||||||
| 6,572,277 | ||||||||
See Notes to Financial Statements.
4
Brandes International ETF
Schedule of Investments (Continued)
December 31, 2025 (Unaudited)
| Shares | Value | |||||||
|
Common Stocks (continued) Japan - 13.3% |
||||||||
| Astellas Pharma, Inc. | 668,800 | $ | 8,930,418 | |||||
| Bridgestone Corp. | 221,400 | 4,963,473 | ||||||
| Honda Motor Co. Ltd. | 639,000 | 6,261,788 | ||||||
| Kubota Corp. | 344,100 | 4,865,850 | ||||||
| Makita Corp. | 172,900 | 5,225,221 | ||||||
| SMC Corp. | 19,000 | 6,601,423 | ||||||
| Sumitomo Mitsui Trust Holdings, Inc. | 205,700 | 6,268,965 | ||||||
| Takeda Pharmaceutical Co. Ltd. | 344,600 | 10,629,628 | ||||||
| 53,746,766 | ||||||||
| Mexico - 7.2% | ||||||||
| America Movil SAB de CV, ADR | 287,470 | 5,942,005 | ||||||
| Cemex SAB de CV, ADR | 448,532 | 5,153,633 | ||||||
| Fibra Uno Administracion SA de CV REIT | 4,279,724 | 6,424,525 | ||||||
| Kimberly-Clark de Mexico SAB de CV, Class A | 1,766,698 | 3,773,253 | ||||||
| Wal-Mart de Mexico SAB de CV | 2,545,023 | 7,945,279 | ||||||
| 29,238,695 | ||||||||
| Netherlands - 6.1% | ||||||||
| Heineken Holding NV | 120,082 | 8,800,316 | ||||||
| Koninklijke Philips NV | 260,403 | 7,051,713 | ||||||
| STMicroelectronics NV | 335,917 | 8,853,002 | ||||||
| 24,705,031 | ||||||||
| Singapore - 2.0% | ||||||||
| Wilmar International Ltd. | 3,385,600 | 8,108,591 | ||||||
| Spain - 1.9% | ||||||||
| Grifols SA, ADR | 801,724 | 7,496,119 | ||||||
| Switzerland - 7.3% | ||||||||
| Cie Financiere Richemont SA, Class A | 32,244 | 7,002,310 | ||||||
| Novartis AG, ADR | 36,584 | 5,043,836 | ||||||
| Swatch Group AG (The) - BR | 11,234 | 2,385,763 | ||||||
| Swatch Group AG (The) - REG | 175,278 | 7,623,957 | ||||||
| UBS Group AG | 159,513 | 7,387,047 | ||||||
| 29,442,913 | ||||||||
| Taiwan - 0.7% | ||||||||
| Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 9,088 | 2,761,752 | ||||||
| United Kingdom - 14.3% | ||||||||
| Diageo PLC, ADR | 59,608 | 5,142,382 | ||||||
| GSK PLC, ADR | 205,389 | 10,072,277 | ||||||
| J Sainsbury PLC, ADR | 355,933 | 6,371,201 | ||||||
| Kingfisher PLC, ADR | 661,878 | 5,526,681 | ||||||
| Mondi PLC, ADR | 214,429 | 5,297,040 | ||||||
| National Grid PLC, ADR | 63,707 | 4,927,736 | ||||||
| Reckitt Benckiser Group PLC, ADR | 363,127 | 5,889,920 | ||||||
| Shell PLC, ADR | 84,674 | 6,221,845 | ||||||
| Smith & Nephew PLC, ADR | 150,543 | 4,939,316 | ||||||
See Notes to Financial Statements.
5
Brandes International ETF
Schedule of Investments (Continued)
December 31, 2025 (Unaudited)
| Shares | Value | |||||||
|
Common Stocks (continued) United Kingdom (continued) |
||||||||
| WPP PLC | 759,519 | $ | 3,447,855 | |||||
| 57,836,253 | ||||||||
| Total Common Stocks (Cost $352,038,574) | 389,610,040 | |||||||
| Preferred Stocks - 1.7% | ||||||||
| South Korea - 1.7% | ||||||||
| Samsung Electronics Co. Ltd., Class Preference | ||||||||
| (Cost $4,366,945) | 112,114 | 6,942,188 | ||||||
| Money Market Funds - 1.3% | ||||||||
| JP Morgan US Treasury Plus Money Market Fund, 3.68%(a) | ||||||||
| (Cost $5,415,672) | 5,415,672 | 5,415,672 | ||||||
| Total Investments - 99.4% | ||||||||
| (Cost $361,821,191) | $ | 401,967,900 | ||||||
| Other Assets in Excess of Liabilities - 0.6% | 2,438,559 | |||||||
| Net Assets - 100.0% | $ | 404,406,459 | ||||||
| * | Non Income Producing |
| (a) | Rate shown reflects the 7-day yield as of December 31, 2025. |
ADR : American Depositary Receipt
PLC : Public Limited Company
REIT: Real Estate Investment Trust
Summary of Investment Type
| Sector |
% of Net Assets |
|||
| Consumer Staples | 21.1 | % | ||
| Health Care | 16.1 | % | ||
| Consumer Discretionary | 13.4 | % | ||
| Information Technology | 10.7 | % | ||
| Industrials | 10.1 | % | ||
| Financials | 7.4 | % | ||
| Energy | 5.4 | % | ||
| Communication Services | 5.2 | % | ||
| Materials | 4.2 | % | ||
| Utilities | 2.9 | % | ||
| Real Estate | 1.6 | % | ||
| Money Market Funds | 1.3 | % | ||
| Total Investments | 99.4 | % | ||
| Other Assets in Excess of Liabilities | 0.6 | % | ||
| Net Assets | 100.0 | % | ||
See Notes to Financial Statements.
6
Brandes U.S. Small-Mid Cap Value ETF
Schedule of Investments
December 31, 2025 (Unaudited)
| Shares | Value | |||||||
|
Common Stocks - 96.3% Communication Services - 4.2% |
||||||||
| Omnicom Group, Inc. | 38,544 | $ | 3,112,428 | |||||
| Scholastic Corp. | 92,884 | 2,752,153 | ||||||
| 5,864,581 | ||||||||
| Consumer Discretionary - 2.7% | ||||||||
| Levi Strauss & Co., Class A | 78,905 | 1,636,490 | ||||||
| Whirlpool Corp. | 29,459 | 2,125,172 | ||||||
| 3,761,662 | ||||||||
| Consumer Staples - 11.0% | ||||||||
| Edgewell Personal Care Co. | 194,881 | 3,322,721 | ||||||
| Ingles Markets, Inc., Class A | 50,420 | 3,456,291 | ||||||
| Ingredion, Inc. | 14,247 | 1,570,874 | ||||||
| Molson Coors Beverage Co., Class B | 45,548 | 2,126,181 | ||||||
| Seaboard Corp. | 436 | 1,937,942 | ||||||
| The Campbell's Company | 70,968 | 1,977,878 | ||||||
| The Marzetti Company | 6,539 | 1,075,142 | ||||||
| 15,467,029 | ||||||||
| Energy - 6.3% | ||||||||
| Expand Energy Corp. | 15,695 | 1,732,100 | ||||||
| Halliburton Co. | 81,271 | 2,296,719 | ||||||
| Innovex International, Inc.* | 171,437 | 3,749,327 | ||||||
| World Kinect Corp. | 46,791 | 1,096,313 | ||||||
| 8,874,459 | ||||||||
| Financials - 10.1% | ||||||||
| Citizens Financial Group, Inc. | 49,634 | 2,899,122 | ||||||
| CNA Financial Corp. | 18,264 | 871,923 | ||||||
| Old Republic International Corp. | 23,758 | 1,084,315 | ||||||
| OneMain Holdings, Inc. | 37,696 | 2,546,365 | ||||||
| SEI Investments Co. | 25,225 | 2,068,954 | ||||||
| State Street Corp. | 14,695 | 1,895,802 | ||||||
| White Mountains Insurance Group Ltd. | 627 | 1,302,925 | ||||||
| Willis Towers Watson PLC | 4,716 | 1,549,678 | ||||||
| 14,219,084 | ||||||||
| Health Care - 20.9% | ||||||||
| DENTSPLY SIRONA, Inc. | 310,386 | 3,547,712 | ||||||
| Elanco Animal Health, Inc.* | 175,562 | 3,972,968 | ||||||
| Fortrea Holdings, Inc.* | 163,261 | 2,816,252 | ||||||
| Grifols SA, ADR | 250,648 | 2,343,559 | ||||||
| Henry Schein, Inc.* | 14,633 | 1,105,962 | ||||||
| Hologic, Inc.* | 31,380 | 2,337,496 | ||||||
| Koninklijke Philips NV | 54,509 | 1,476,104 | ||||||
| Organon & Co. | 197,112 | 1,413,293 | ||||||
| Pediatrix Medical Group, Inc.* | 150,113 | 3,210,917 | ||||||
| Prestige Consumer Healthcare, Inc.* | 24,252 | 1,496,106 | ||||||
| Sotera Health Co.* | 100,465 | 1,772,203 | ||||||
| United Therapeutics Corp.* | 2,357 | 1,148,448 | ||||||
| Zimmer Biomet Holdings, Inc. | 31,040 | 2,791,117 | ||||||
| 29,432,137 | ||||||||
See Notes to Financial Statements.
7
Brandes U.S. Small-Mid Cap Value ETF
Schedule of Investments (Continued)
December 31, 2025 (Unaudited)
| Shares | Value | |||||||
|
Common Stocks (continued) Industrials - 20.0% |
||||||||
| AGCO Corp. | 14,140 | $ | 1,475,085 | |||||
| Balfour Beatty PLC | 248,938 | 2,380,660 | ||||||
| Embraer SA, ADR | 31,392 | 2,020,703 | ||||||
| Healthcare Services Group, Inc.* | 165,226 | 3,159,121 | ||||||
| Heartland Express, Inc. | 164,922 | 1,489,246 | ||||||
| Kennametal, Inc. | 95,434 | 2,711,280 | ||||||
| Knight-Swift Transportation Holdings, Inc. | 36,304 | 1,897,973 | ||||||
| Landstar System, Inc. | 4,519 | 649,380 | ||||||
| Moog, Inc., Class A | 8,620 | 2,099,401 | ||||||
| National Presto Industries, Inc. | 29,560 | 3,155,825 | ||||||
| Textron, Inc. | 32,922 | 2,869,811 | ||||||
| Timken Co. (The) | 18,535 | 1,559,349 | ||||||
| UniFirst Corp. | 14,221 | 2,743,231 | ||||||
| 28,211,065 | ||||||||
| Information Technology - 14.5% | ||||||||
| Amdocs Ltd. | 43,675 | 3,516,274 | ||||||
| Arlo Technologies, Inc.* | 95,547 | 1,336,703 | ||||||
| Arrow Electronics, Inc.* | 12,670 | 1,395,981 | ||||||
| Avnet, Inc. | 21,718 | 1,044,201 | ||||||
| EPAM Systems, Inc.* | 7,512 | 1,539,059 | ||||||
| F5, Inc.* | 4,292 | 1,095,576 | ||||||
| IPG Photonics Corp.* | 51,352 | 3,676,803 | ||||||
| NETGEAR, Inc.* | 128,838 | 3,160,396 | ||||||
| Nice Ltd., ADR* | 13,263 | 1,499,249 | ||||||
| Qorvo, Inc.* | 24,680 | 2,085,707 | ||||||
| 20,349,949 | ||||||||
| Materials - 6.6% | ||||||||
| International Flavors & Fragrances, Inc. | 54,102 | 3,645,934 | ||||||
| Scotts Miracle-Gro Co. (The) | 21,488 | 1,253,825 | ||||||
| Sealed Air Corp. | 32,013 | 1,326,298 | ||||||
| Sonoco Products Co. | 26,187 | 1,142,801 | ||||||
| Winpak Ltd. | 57,802 | 1,881,121 | ||||||
| 9,249,979 | ||||||||
| Total Common Stocks (Cost $122,104,466) | 135,429,945 | |||||||
| Money Market Funds - 3.6% | ||||||||
| JP Morgan US Treasury Plus Money Market Fund, 3.68%(a) | ||||||||
| (Cost $5,048,843) | 5,048,843 | 5,048,843 | ||||||
| Total Investments - 99.9% | ||||||||
| (Cost $127,153,309) | $ | 140,478,788 | ||||||
| Other Assets in Excess of Liabilities - 0.1% | 153,122 | |||||||
| Net Assets - 100.0% | $ | 140,631,910 | ||||||
| * | Non Income Producing |
| (a) | Rate shown reflects the 7-day yield as of December 31, 2025. |
See Notes to Financial Statements.
8
Brandes U.S. Small-Mid Cap Value ETF
Schedule of Investments (Continued)
December 31, 2025 (Unaudited)
ADR : American Depositary Receipt
PLC : Public Limited Company
Summary of Investment Type
| Sector |
% of Net Assets |
|||
| Health Care | 20.9 | % | ||
| Industrials | 20.0 | % | ||
| Information Technology | 14.5 | % | ||
| Consumer Staples | 11.0 | % | ||
| Financials | 10.1 | % | ||
| Materials | 6.6 | % | ||
| Energy | 6.3 | % | ||
| Communication Services | 4.2 | % | ||
| Consumer Discretionary | 2.7 | % | ||
| Money Market Funds | 3.6 | % | ||
| Total Investments | 99.9 | % | ||
| Other Assets in Excess of Liabilities | 0.1 | % | ||
| Net Assets | 100.0 | % | ||
See Notes to Financial Statements.
9
Brandes U.S. Value ETF
Schedule of Investments
December 31, 2025 (Unaudited)
| Shares | Value | |||||||
|
Common Stocks - 98.5% Communication Services - 5.9% |
||||||||
| Alphabet, Inc., Class C | 19,357 | $ | 6,074,227 | |||||
| Comcast Corp., Class A | 171,560 | 5,127,928 | ||||||
| Omnicom Group, Inc. | 65,845 | 5,316,984 | ||||||
| 16,519,139 | ||||||||
| Consumer Discretionary - 3.1% | ||||||||
| AutoZone, Inc.* | 641 | 2,173,952 | ||||||
| LKQ Corp. | 107,347 | 3,241,879 | ||||||
| Mohawk Industries, Inc.* | 30,206 | 3,301,516 | ||||||
| 8,717,347 | ||||||||
| Consumer Staples - 4.5% | ||||||||
| Ingredion, Inc. | 25,332 | 2,793,106 | ||||||
| Kenvue, Inc. | 161,826 | 2,791,499 | ||||||
| Sysco Corp. | 53,701 | 3,957,227 | ||||||
| Target Corp. | 30,976 | 3,027,904 | ||||||
| 12,569,736 | ||||||||
| Energy - 6.2% | ||||||||
| Chevron Corp. | 40,114 | 6,113,775 | ||||||
| Halliburton Co. | 174,434 | 4,929,505 | ||||||
| SLB Ltd. | 111,001 | 4,260,218 | ||||||
| World Kinect Corp. | 98,631 | 2,310,924 | ||||||
| 17,614,422 | ||||||||
| Financials - 22.2% | ||||||||
| Arch Capital Group Ltd.* | 57,616 | 5,526,527 | ||||||
| Bank of America Corp. | 140,002 | 7,700,110 | ||||||
| Bank of New York Mellon Corp. (The) | 25,745 | 2,988,737 | ||||||
| Citigroup, Inc. | 71,428 | 8,334,933 | ||||||
| Fiserv, Inc.* | 48,805 | 3,278,232 | ||||||
| JPMorgan Chase & Co. | 9,366 | 3,017,913 | ||||||
| PNC Financial Services Group, Inc. (The) | 28,446 | 5,937,534 | ||||||
| Progressive Corp. (The) | 15,293 | 3,482,522 | ||||||
| State Street Corp. | 23,442 | 3,024,252 | ||||||
| Truist Financial Corp. | 58,598 | 2,883,608 | ||||||
| W R Berkley Corp. | 56,446 | 3,957,993 | ||||||
| Wells Fargo & Co. | 75,317 | 7,019,544 | ||||||
| Willis Towers Watson PLC | 16,942 | 5,567,141 | ||||||
| 62,719,046 | ||||||||
| Health Care - 24.6% | ||||||||
| Becton Dickinson & Co. | 32,517 | 6,310,574 | ||||||
| Cardinal Health, Inc. | 19,016 | 3,907,788 | ||||||
| Cigna Group (The) | 21,577 | 5,938,638 | ||||||
| CVS Health Corp. | 57,953 | 4,599,150 | ||||||
| HCA Healthcare, Inc. | 12,635 | 5,898,776 | ||||||
| ICON PLC* | 26,461 | 4,821,723 | ||||||
| Johnson & Johnson | 29,187 | 6,040,250 | ||||||
| Labcorp Holdings, Inc. | 15,828 | 3,970,929 | ||||||
| McKesson Corp. | 4,654 | 3,817,630 | ||||||
| Merck & Co., Inc. | 86,614 | 9,116,990 | ||||||
| Pfizer, Inc. | 244,628 | 6,091,237 | ||||||
See Notes to Financial Statements.
10
Brandes U.S. Value ETF
Schedule of Investments (Continued)
December 31, 2025 (Unaudited)
| Shares | Value | |||||||
|
Common Stocks (continued) Health Care (continued) |
||||||||
| Sanofi SA, ADR | 108,610 | $ | 5,263,240 | |||||
| UnitedHealth Group, Inc. | 10,572 | 3,489,923 | ||||||
| 69,266,848 | ||||||||
| Industrials - 13.9% | ||||||||
| Allison Transmission Holdings, Inc. | 33,023 | 3,232,952 | ||||||
| CAE, Inc.* | 73,100 | 2,223,702 | ||||||
| Emerson Electric Co. | 39,404 | 5,229,699 | ||||||
| FedEx Corp. | 19,279 | 5,568,932 | ||||||
| Gates Industrial Corp. PLC* | 78,862 | 1,693,167 | ||||||
| Hexcel Corp. | 47,759 | 3,529,390 | ||||||
| Knight-Swift Transportation Holdings, Inc. | 86,197 | 4,506,379 | ||||||
| SS&C Technologies Holdings, Inc. | 69,727 | 6,095,534 | ||||||
| Textron, Inc. | 82,264 | 7,170,953 | ||||||
| 39,250,708 | ||||||||
| Information Technology - 10.8% | ||||||||
| Amdocs Ltd. | 71,136 | 5,727,159 | ||||||
| Arrow Electronics, Inc.* | 25,873 | 2,850,687 | ||||||
| Cognizant Technology Solutions Corp., Class A | 67,992 | 5,643,336 | ||||||
| EPAM Systems, Inc.* | 26,275 | 5,383,222 | ||||||
| Flex Ltd.* | 51,676 | 3,122,264 | ||||||
| Micron Technology, Inc. | 14,396 | 4,108,762 | ||||||
| Open Text Corp. | 47,808 | 1,557,585 | ||||||
| Qorvo, Inc.* | 24,946 | 2,108,187 | ||||||
| 30,501,202 | ||||||||
| Materials - 4.2% | ||||||||
| Corteva, Inc. | 70,087 | 4,697,932 | ||||||
| International Flavors & Fragrances, Inc. | 53,529 | 3,607,319 | ||||||
| Westlake Corp. | 46,748 | 3,456,547 | ||||||
| 11,761,798 | ||||||||
| Utilities - 3.1% | ||||||||
| Entergy Corp. | 30,791 | 2,846,012 | ||||||
| Evergy, Inc. | 40,925 | 2,966,653 | ||||||
| National Grid PLC, ADR | 37,317 | 2,886,470 | ||||||
| 8,699,135 | ||||||||
| Total Common Stocks (Cost $254,419,774) | 277,619,381 | |||||||
| Money Market Funds - 0.9% | ||||||||
| JP Morgan US Treasury Plus Money Market Fund, 3.68%(a) | ||||||||
| (Cost $2,595,477) | 2,595,477 | 2,595,477 | ||||||
| Total Investments - 99.4% | ||||||||
| (Cost $257,015,251) | $ | 280,214,858 | ||||||
| Other Assets in Excess of Liabilities - 0.6% | 1,659,485 | |||||||
| Net Assets - 100.0% | $ | 281,874,343 | ||||||
See Notes to Financial Statements.
11
Brandes U.S. Value ETF
Schedule of Investments (Continued)
December 31, 2025 (Unaudited)
| * | Non Income Producing |
| (a) | Rate shown reflects the 7-day yield as of December 31, 2025. |
ADR : American Depositary Receipt
PLC : Public Limited Company
Summary of Investment Type
| % of Net | ||||
| Sector | Assets | |||
| Health Care | 24.6 | % | ||
| Financials | 22.2 | % | ||
| Industrials | 13.9 | % | ||
| Information Technology | 10.8 | % | ||
| Energy | 6.2 | % | ||
| Communication Services | 5.9 | % | ||
| Consumer Staples | 4.5 | % | ||
| Materials | 4.2 | % | ||
| Consumer Discretionary | 3.1 | % | ||
| Utilities | 3.1 | % | ||
| Money Market Funds | 0.9 | % | ||
| Total Investments | 99.4 | % | ||
| Other Assets in Excess of Liabilities | 0.6 | % | ||
| Net Assets | 100.0 | % | ||
See Notes to Financial Statements.
12
(This page intentionally left blank)
Statements of Assets and Liabilities
December 31, 2025 (Unaudited)
|
Brandes International ETF |
Brandes U.S. Small-Mid Cap Value ETF |
Brandes U.S. Value ETF |
||||||||||
| Assets | ||||||||||||
| Investments, at fair value | $ | 401,967,900 | $ | 140,478,788 | $ | 280,214,858 | ||||||
| Cash | 467,721 | - | 1,454,930 | |||||||||
| Foreign currency at value (cost $944,089, $6 and $-) | 943,111 | 7 | - | |||||||||
| Receivables: | ||||||||||||
| Dividends | 1,035,666 | 225,750 | 298,261 | |||||||||
| Foreign tax reclaim | 631,230 | 9,415 | 38,157 | |||||||||
| Capital shares | - | - | 730,233 | |||||||||
| Total assets | 405,045,628 | 140,713,960 | 282,736,439 | |||||||||
| Liabilities | ||||||||||||
| Payables: | ||||||||||||
| Securities purchased | 409,732 | - | 720,493 | |||||||||
| Investment advisory fees | 229,437 | 82,050 | 141,603 | |||||||||
| Total liabilities | 639,169 | 82,050 | 862,096 | |||||||||
| Net Assets | $ | 404,406,459 | $ | 140,631,910 | $ | 281,874,343 | ||||||
| Net Assets Consist of | ||||||||||||
| Paid-in capital | $ | 351,545,282 | $ | 123,702,982 | $ | 247,774,306 | ||||||
| Distributable earnings (loss) | 52,861,177 | 16,928,928 | 34,100,037 | |||||||||
| Net Assets | $ | 404,406,459 | $ | 140,631,910 | $ | 281,874,343 | ||||||
| Number of Common Shares outstanding | 10,100,000 | 4,060,000 | 7,720,000 | |||||||||
| Net Asset Value, offering and redemption price per share | $ | 40.04 | $ | 34.64 | $ | 36.51 | ||||||
| Investments, at cost | $ | 361,821,191 | $ | 127,153,309 | $ | 257,015,251 | ||||||
See Notes to Financial Statements.
13
Statements of Operations
Six Months Ended December 31, 2025 (Unaudited)
|
Brandes International ETF |
Brandes U.S. Small-Mid Cap Value ETF |
Brandes U.S. Value ETF |
||||||||||
| Investment Income | ||||||||||||
| Dividend income* | $ | 4,409,883 | $ | 1,135,087 | $ | 2,748,029 | ||||||
| Expenses | ||||||||||||
| Investment advisory fees | 1,076,168 | 438,796 | 765,004 | |||||||||
| Total expenses | 1,076,168 | 438,796 | 765,004 | |||||||||
| Net investment income (loss) | 3,333,715 | 696,291 | 1,983,025 | |||||||||
| Net Realized and Unrealized Gain (Loss) | ||||||||||||
| Net realized gain (loss) from: | ||||||||||||
| Investments | (108,703 | ) | 3,851,532 | (147,673 | ) | |||||||
| In-kind redemptions | 13,299,841 | - | 11,538,633 | |||||||||
| Foreign currency transactions | (28,243 | ) | 1,028 | - | ||||||||
| Net realized gain (loss) | 13,162,895 | 3,852,560 | 11,390,960 | |||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||
| Investments | 21,531,544 | 8,040,209 | 11,493,030 | |||||||||
| Foreign currency translations | (6,444 | ) | (839 | ) | - | |||||||
| Net change in unrealized appreciation (depreciation) | 21,525,100 | 8,039,370 | 11,493,030 | |||||||||
| Net realized and unrealized gain (loss) | 34,687,995 | 11,891,930 | 22,883,990 | |||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 38,021,710 | $ | 12,588,221 | $ | 24,867,015 | ||||||
| * Withholding tax | $ | 395,588 | $ | 1,150 | $ | 3,751 | ||||||
See Notes to Financial Statements.
14
Statements of Changes in Net Assets
| Brandes International ETF | Brandes U.S. Small-Mid Cap Value ETF | |||||||||||||||
|
For the Six Months Ended December 31, 2025 (Unaudited) |
Year Ended June 30, 2025 |
For the Six Months Ended December 31, 2025 (Unaudited) |
Year Ended June 30, 2025 |
|||||||||||||
| Increase (Decrease) in Net Assets from Operations | ||||||||||||||||
| Net investment income (loss) | $ | 3,333,715 | $ | 4,890,933 | $ | 696,291 | $ | 1,142,710 | ||||||||
| Net realized gain (loss) | 13,162,895 | 15,304,852 | 3,852,560 | 3,026,443 | ||||||||||||
| Net change in net unrealized appreciation (depreciation) | 21,525,100 | 18,081,174 | 8,039,370 | 4,040,640 | ||||||||||||
| Net increase (decrease) in net assets resulting from operations | ||||||||||||||||
| 38,021,710 | 38,276,959 | 12,588,221 | 8,209,793 | |||||||||||||
| Distributions | (3,568,863 | ) | (4,765,011 | ) | (755,880 | ) | (1,112,352 | ) | ||||||||
| Fund Shares Transactions | ||||||||||||||||
| Proceeds from shares sold | 160,476,099 | 170,428,348 | 23,555,937 | 58,591,099 | ||||||||||||
| Value of shares redeemed | (41,893,725 | ) | (51,753,852 | ) | (5,281,004 | ) | (12,479,041 | ) | ||||||||
| Net increase (decrease) in net assets resulting from fund share transactions | ||||||||||||||||
| 118,582,374 | 118,674,496 | 18,274,933 | 46,112,058 | |||||||||||||
| Total net increase (decrease) in net assets | 153,035,221 | 152,186,444 | 30,107,274 | 53,209,499 | ||||||||||||
| Net Assets | ||||||||||||||||
| Beginning of period | 251,371,238 | 99,184,794 | 110,524,636 | 57,315,137 | ||||||||||||
| End of period | $ | 404,406,459 | $ | 251,371,238 | $ | 140,631,910 | $ | 110,524,636 | ||||||||
| Changes in Shares Outstanding | ||||||||||||||||
| Common Shares outstanding, beginning of period | 7,050,000 | 3,400,000 | 3,520,000 | 2,000,000 | ||||||||||||
| Shares sold | 4,150,000 | 5,250,000 | 700,000 | 1,940,000 | ||||||||||||
| Shares redeemed | (1,100,000 | ) | (1,600,000 | ) | (160,000 | ) | (420,000 | ) | ||||||||
| Common Shares outstanding, end of period | 10,100,000 | 7,050,000 | 4,060,000 | 3,520,000 | ||||||||||||
See Notes to Financial Statements.
15
Statements of Changes in Net Assets (Continued)
| Brandes U.S. Value ETF | ||||||||
|
For the Six Months Ended December 31, 2025 (Unaudited) |
Year Ended June 30, 2025 |
|||||||
| Increase (Decrease) in Net Assets from Operations | ||||||||
| Net investment income (loss) | $ | 1,983,025 | $ | 3,452,302 | ||||
| Net realized gain (loss) | 11,390,960 | 16,509,641 | ||||||
| Net change in net unrealized appreciation (depreciation) | 11,493,030 | 4,535,359 | ||||||
| Net increase (decrease) in net assets resulting from operations | 24,867,015 | 24,497,302 | ||||||
| Distributions | (2,151,676 | ) | (3,415,857 | ) | ||||
| Fund Shares Transactions | ||||||||
| Proceeds from shares sold | 58,625,889 | 140,282,913 | ||||||
| Value of shares redeemed | (32,008,096 | ) | (68,935,399 | ) | ||||
| Net increase (decrease) in net assets resulting from fund share transactions | 26,617,793 | 71,347,514 | ||||||
| Total net increase (decrease) in net assets | 49,333,132 | 92,428,959 | ||||||
| Net Assets | ||||||||
| Beginning of period | 232,541,211 | 140,112,252 | ||||||
| End of period | $ | 281,874,343 | $ | 232,541,211 | ||||
| Changes in Shares Outstanding | ||||||||
| Common Shares outstanding, beginning of period | 6,960,000 | 4,700,000 | ||||||
| Shares sold | 1,680,000 | 4,380,000 | ||||||
| Shares redeemed | (920,000 | ) | (2,120,000 | ) | ||||
| Common Shares outstanding, end of period | 7,720,000 | 6,960,000 | ||||||
See Notes to Financial Statements.
16
Financial Highlights
|
Brandes International ETF Selected Per Share Data |
For the Six Months Ended December 31, 2025 (Unaudited) |
Year Ended June 30, 2025 |
Period Ended June 30, 2024(a) |
|||||||||
| Net Asset Value, beginning of period | $ | 35.66 | $ | 29.17 | $ | 25.00 | ||||||
| Income (loss) from investment operations: | ||||||||||||
| Net investment income (loss)(b) | 0.42 | 0.99 | 0.95 | |||||||||
| Net realized and unrealized gain (loss) | 4.34 | 6.27 | 3.76 | |||||||||
| Total from investment operations | 4.76 | 7.26 | 4.71 | |||||||||
| Less distributions from: | ||||||||||||
| Net investment income | (0.38 | ) | (0.77 | ) | (0.54 | ) | ||||||
| Total distributions | (0.38 | ) | (0.77 | ) | (0.54 | ) | ||||||
| Net Asset Value, end of period | $ | 40.04 | $ | 35.66 | $ | 29.17 | ||||||
| Total Return (%) | 13.38 | (c) | 25.05 | 18.84 | (c) | |||||||
| Ratios to Average Net Assets and Supplemental Data | ||||||||||||
| Net Assets, end of period ($ millions) | $ | 404 | $ | 251 | $ | 99 | ||||||
| Ratio of expenses (%) | 0.70 | (d) | 0.70 | 0.70 | (d) | |||||||
| Ratio of net investment income (loss) (%) | 2.17 | (d) | 3.06 | 4.40 | (d) | |||||||
| Portfolio turnover rate (%)(e) | 0 | (c) | 3 | 10 | (c) | |||||||
|
Brandes U.S. Small-Mid Cap Value ETF Selected Per Share Data |
For the Six Months Ended December 31, 2025 (Unaudited) |
Year Ended June 30, 2025 |
Period Ended June 30, 2024(a) |
|||||||||
| Net Asset Value, beginning of period | $ | 31.40 | $ | 28.66 | $ | 25.00 | ||||||
| Income (loss) from investment operations: | ||||||||||||
| Net investment income (loss)(b) | 0.19 | 0.42 | 0.28 | |||||||||
| Net realized and unrealized gain (loss) | 3.24 | 2.70 | 3.57 | |||||||||
| Total from investment operations | 3.43 | 3.12 | 3.85 | |||||||||
| Less distributions from: | ||||||||||||
| Net investment income | (0.19 | ) | (0.38 | ) | (0.19 | ) | ||||||
| Total distributions | (0.19 | ) | (0.38 | ) | (0.19 | ) | ||||||
| Net Asset Value, end of period | $ | 34.64 | $ | 31.40 | $ | 28.66 | ||||||
| Total Return (%) | 10.94 | (c) | 10.93 | 15.40 | (c) | |||||||
| Ratios to Average Net Assets and Supplemental Data | ||||||||||||
| Net Assets, end of period ($ millions) | $ | 141 | $ | 111 | $ | 57 | ||||||
| Ratio of expenses (%) | 0.70 | (d) | 0.70 | 0.70 | (d) | |||||||
| Ratio of net investment income (loss) (%) | 1.11 | (d) | 1.38 | 1.35 | (d) | |||||||
| Portfolio turnover rate (%)(e) | 4 | (c) | 7 | 4 | (c) | |||||||
| (a) | For the period October 4, 2023 (commencement of operations) through June 30, 2024. |
| (b) | Per share numbers have been calculated using the average shares method. |
| (c) | Not annualized. |
| (d) | Annualized. |
| (e) | Excludes the impact of in-kind transactions related to the processing of capital share transactions in Creation Units. |
See Notes to Financial Statements.
17
Financial Highlights (Continued)
|
Brandes U.S. Value ETF Selected Per Share Data |
For the Six Months Ended December 31, 2025 (Unaudited) |
Year Ended June 30, 2025 |
Period Ended June 30, 2024(a) |
|||||||||
| Net Asset Value, beginning of period | $ | 33.41 | $ | 29.81 | $ | 25.00 | ||||||
| Income (loss) from investment operations: | ||||||||||||
| Net investment income (loss)(b) | 0.27 | 0.56 | 0.36 | |||||||||
| Net realized and unrealized gain (loss) | 3.12 | 3.57 | 4.69 | |||||||||
| Total from investment operations | 3.39 | 4.13 | 5.05 | |||||||||
| Less distributions from: | ||||||||||||
| Net investment income | (0.29 | ) | (0.53 | ) | (0.24 | ) | ||||||
| Total distributions | (0.29 | ) | (0.53 | ) | (0.24 | ) | ||||||
| Net Asset Value, end of period | $ | 36.51 | $ | 33.41 | $ | 29.81 | ||||||
| Total Return (%) | 10.15 | (c) | 13.92 | 20.23 | (c) | |||||||
| Ratios to Average Net Assets and Supplemental Data | ||||||||||||
| Net Assets, end of period ($ millions) | $ | 282 | $ | 233 | $ | 140 | ||||||
| Ratio of expenses (%) | 0.60 | (d) | 0.60 | 0.60 | (d) | |||||||
| Ratio of net investment income (loss) (%) | 1.55 | (d) | 1.73 | 1.66 | (d) | |||||||
| Portfolio turnover rate (%)(e) | 1 | (c) | 7 | 6 | (c) | |||||||
| (a) | For the period October 4, 2023 (commencement of operations) through June 30, 2024. |
| (b) | Per share numbers have been calculated using the average shares method. |
| (c) | Not annualized. |
| (d) | Annualized. |
| (e) | Excludes the impact of in-kind transactions related to the processing of capital share transactions in Creation Units. |
See Notes to Financial Statements.
18
Notes to Financial Statements
December 31, 2025 (Unaudited)
1. Organization
Brandes International ETF, Brandes U.S. Small-Mid Cap Value ETF and Brandes U.S. Value ETF (each a "Fund" and collectively the "Funds") are organized, diversified, separate operating series of exchange-traded funds (ETFs) of The 2023 ETF Series Trust (the "Trust"), a Delaware statutory trust since January 23, 2023 that is registered with the Securities and Exchange Commission (the "Commission") as open end management investment company.
The Funds are managed by Brandes Investment Partners, L.P. an investment adviser registered under the Investment Advisers Act of 1940, as amended, and serves as the Funds' investment advisor (the "Advisor").
The Brandes International ETF, Brandes U.S. Small-Mid Cap Value ETF and Brandes U.S. Value ETF commenced operations on October 4, 2023. Each Fund is an actively managed ETF and uses an active investment strategy in seeking to meet its investment objective. The investment objective of each Fund is long-term capital appreciation.
Each Fund offers shares that are listed and traded on the CBOE BZX Exchange (the "Exchange"), Inc.
2. Significant Accounting Policies
Each Fund is an investment company that applies the accounting and reporting guidance issued in Topic 946, "Financial Services-Investment Companies", by the Financial Accounting Standards Board ("FASB"). The following is a summary of significant accounting policies consistently followed by the Funds. These policies are in conformity with generally accepted accounting principles ("GAAP") in the United States of America.
(a) Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates and assumptions.
(b) Investment Valuation
The Trust has adopted GAAP accounting principles related to fair value accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below:
| ● | Level 1 - Quoted prices in active markets for identical assets that the funds have the ability to access. |
| ● | Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). |
| ● | Level 3 - Significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments). |
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the valuations as of December 31, 2025 for each Fund based upon the three levels defined above:
|
Brandes International ETF Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks | $ | 389,610,040 | $ | - | $ | - | $ | 389,610,040 | ||||||||
| Preferred Stocks | 6,942,188 | - | - | 6,942,188 | ||||||||||||
| Money Market Funds | 5,415,672 | - | - | 5,415,672 | ||||||||||||
| Total | $ | 401,967,900 | $ | - | $ | - | $ | 401,967,900 | ||||||||
| Brandes U.S. Small-Mid Cap Value ETF | ||||||||||||||||
| Assets | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks | $ | 135,429,945 | $ | - | $ | - | $ | 135,429,945 | ||||||||
| Money Market Funds | 5,048,843 | - | - | 5,048,843 | ||||||||||||
| Total | $ | 140,478,788 | $ | - | $ | - | $ | 140,478,788 | ||||||||
19
Notes to Financial Statements (Continued)
December 31, 2025 (Unaudited)
|
Brandes U.S. Value ETF Assets |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Common Stocks | $ | 277,619,381 | $ | - | $ | - | $ | 277,619,381 | ||||||||
| Money Market Funds | 2,595,477 | - | - | 2,595,477 | ||||||||||||
| Total | $ | 280,214,858 | $ | - | $ | - | $ | 280,214,858 | ||||||||
(c) Investment Transactions and Related Income
For financial reporting purposes, investment transactions are reported on the trade date. However, for daily NAV determination, portfolio securities transactions are reflected no later than in the first calculation on the first business day following trade date. Dividend income is recorded on the ex-dividend date. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount based on effective yield. Gains or losses realized on sales of securities are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds. Dividend Income on the Statements of Operations is shown net of any foreign taxes withheld on income from foreign securities, which are provided for in accordance with each Fund's understanding of the applicable tax rules and regulations.
(d) Foreign Currency Translation and Transactions
The accounting records of each Fund are maintained in U.S. dollars. Financial instruments and other assets and liabilities of each Fund denominated in a foreign currency, if any, are translated into U.S. dollars at current exchange rates. Purchases and sales of financial instruments, income receipts and expense payments are translated into U.S. dollars at the exchange rate on the date of the transaction. Each Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates from those resulting from changes in values to financial instruments. Such fluctuations are included with the net realized and unrealized gains or losses from investments. Realized foreign exchange gains or losses arise from transactions in financial instruments and foreign currencies, currency exchange fluctuations between the trade and settlement date of such transactions, and the difference between the amount of assets and liabilities recorded and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, including financial instruments, resulting from changes in currency exchange rates. Each Fund may be subject to foreign taxes related to foreign income received, capital gains on the sale of securities and certain foreign currency transactions (a portion of which may be reclaimable). All foreign taxes are recorded in accordance with the applicable regulations and rates that exist in the foreign jurisdictions in which each Fund invests.
(e) Federal Income Tax
It is the policy of each Fund to continue to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986 (the "Code") and to distribute substantially all of its net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required as long as each Fund qualifies as a regulated investment company.
Management of each Fund has evaluated tax positions taken or expected to be taken in the course of preparing each Fund's tax returns to determine whether it is more-likely-than-not (i.e., greater than 50%) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. In general, tax positions taken in previous tax years remain subject to examination by tax authorities (generally three years for federal income tax purposes). The determination has been made that there are not any uncertain tax positions that would require each Fund to record a tax liability and, therefore, there is no impact to the Funds' financial statements. Each Fund's policy is to classify interest and penalties associated with underpayment of federal and state income taxes, if any, as income tax expense on its Statements of Operations. As of December 31, 2025, the Funds did not have any interest or penalties associated with the underpayment of any income taxes.
(f) Distributions to Shareholders
Each Fund pays out dividends from its net investment income at least quarterly and distributes its net capital gains, if any, to investors at least annually. Each Fund may make distributions on a more frequent basis to comply with the distributions requirement of the Code, in all events in a manner consistent with the provisions of the 1940 Act.
The amount of distributions from net investment income and net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., return of capital and distribution reclassifications), such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences (e.g., wash sales and straddles) do not require a reclassification.
20
Notes to Financial Statements (Continued)
December 31, 2025 (Unaudited)
(g) Indemnification
Under the Funds' organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. The Funds may enter into contracts that contain representations and that provide general indemnifications. The Funds' maximum liability exposure under these arrangements is unknown, as future claims that have not yet occurred may be made against the Funds.
3. Investment Advisory Fee and Other Transactions with Affiliates
(a) Investment Advisory and Administrative Services
Brandes Investment Partners, L.P., (the "Advisor") serves as the investment advisor to each Fund pursuant to an investment advisory agreement with the Trust (the "Advisory Agreement"). Under the Advisory Agreement, the Advisor provides investment advisory services to each Fund and is responsible for the day-to-day management of each Fund, including, among other things, ensuring each Fund has a continuous investment program, trading portfolio securities on behalf of each Fund, and selecting broker-dealers to execute purchase and sale transactions, subject to the oversight of the Board. For the services the Advisor provides to the Funds, each Fund pays the Advisor a fee, calculated daily and paid monthly, at an annual rate of the average daily net assets of each Fund as follows.
| Fund |
Investment Advisory Fee |
| Brandes International ETF | 0.70% |
| Brandes U.S. Small-Mid Cap Value ETF | 0.70% |
| Brandes U.S. Value ETF | 0.60% |
Under the investment advisory agreement, the Advisor has agreed to pay all expenses incurred by the Funds except for the advisory fee; interest charges on any borrowings; taxes; brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments; proxy and shareholder meeting expenses (unless the need for a shareholder meeting is caused by the Advisor, such as a change of control of the Advisor); fees and expense related to the provision of securities lending services; acquired fund fees and expenses; taxes, including accrued deferred tax liability; legal fees or expenses in connection with any arbitration, litigation, or pending or threatened arbitration or litigation, including any settlements in connection therewith; extraordinary expenses (as mutually determined by the Board and the Advisor); and distribution fees and expenses paid by the Fund under any distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act.
(b) Distribution Arrangement
Foreside Fund Services, LLC (the "Distributor"), a Delaware limited liability company, is the principal underwriter and distributor of each Fund's Shares. The Distributor does not maintain any secondary market in any Fund's Shares.
The Trust has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act. In accordance with its Rule 12b-1 plan, each Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year to finance activities primarily intended to result in the sale of Creation Units of the Fund or the provision of investor services. No Rule 12b-1 fees are currently paid by the Funds and there are no plans to impose these fees. However, in the event Rule 12b-1 fees are charged in the future, they will be paid out of the Funds' assets, and directly impact the NAV per share of each Fund.
(c) Other Servicing Agreements
The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as Administrator, Custodian, Accounting Agent and Transfer Agent for each Fund.
4. Investment Transactions
Purchases and sales of investments, excluding in-kind transactions and short-term investments, for the period ended December 31, 2025 were as follows:
| Fund | Purchases | Sales | ||||||
| Brandes International ETF | $ | 56,883,493 | $ | 876,800 | ||||
| Brandes U.S. Small-Mid Cap Value ETF | 11,992,163 | 5,024,710 | ||||||
| Brandes U.S. Value ETF | 33,414,937 | 2,535,890 | ||||||
Purchases and sales of in-kind transactions for the period ended December 31, 2025 were as follows:
| Fund | Purchases | Sales | ||||||
| Brandes International ETF | $ | 102,038,154 | $ | 40,987,463 | ||||
| Brandes U.S. Small-Mid Cap Value ETF | 15,384,405 | 5,168,238 | ||||||
| Brandes U.S. Value ETF | 28,058,689 | 30,758,925 | ||||||
21
Notes to Financial Statements (Continued)
December 31, 2025 (Unaudited)
5. Capital Share Transactions
Fund Shares are listed and traded on the Exchange each day that the Exchange is open for business ("Business Day"). Each Fund's Shares may only be purchased and sold on the Exchange through a broker-dealer. Because each Fund's Shares trade at market prices rather than at their NAV, Shares may trade at a price equal to NAV, greater than NAV (premium) or less than NAV (discount).
Each Fund offers and redeems Shares on a continuous basis at NAV only in Creation Units. Except when aggregated in Creation Units, Shares are not redeemable securities of a Fund. Fund Shares may only be purchased from or redeemed directly from each Fund by certain financial institutions ("Authorized Participants"). An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company ("DTC") participant and, in each case, must have executed a Participant Agreement with the Distributor. Creation Units are available for purchase and redemption on each Business Day and are offered and redeemed on an in-kind basis, together with the specified cash amount, or for an all cash amount.
To the extent contemplated by a Participant Agreement, in the event an Authorized Participant has submitted a redemption request in proper form but is unable to transfer all or part of the shares comprising a Creation Unit to be redeemed by the Distributor, on behalf of each Fund, by the time as set forth in a Participant Agreement, the Distributor may nonetheless accept the redemption request in reliance on the undertaking by the Authorized Participant to deliver the missing shares as soon as possible, which undertaking shall be secured by the Authorized Participant's delivery and maintenance of collateral equal to a percentage of the market value as set forth in the Participant Agreement. A Participant Agreement may permit each Fund to use such collateral to purchase the missing shares, and could subject an Authorized Participant to liability for any shortfall between the cost of each Fund acquiring such shares and the value of the collateral.
Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the Shares directly from each Fund. Rather, most retail investors will purchase Shares in the secondary market with the assistance of a broker, which will be subject to customary brokerage commissions or fees.
A purchase (i.e., creation) transaction fee may be imposed for the transfer and other transaction costs associated with the purchase of Creation Units, and investors will be required to pay a creation transaction fee regardless of the number of Creation Units created in the transaction. Each Fund may adjust the creation transaction fee from time to time based upon actual experience. In addition, a variable fee may be imposed for cash purchases, non-standard orders, or partial cash purchases of Creation Units. The variable fee is primarily designed to cover non-standard charges, e.g., brokerage, taxes, foreign exchange, execution, market impact, and other costs and expenses, related to the execution of trades resulting from such transaction. Each Fund may adjust the non-standard charge from time to time based upon actual experience. Investors who use the services of an Authorized Participant, broker or other such intermediary may be charged a fee for such services which may include an amount for the creation transaction fee and non-standard charges. Investors are responsible for the costs of transferring the securities constituting the deposit securities to the account of the Trust. The Advisor may retain all or a portion of the transaction fee to the extent the Advisor bears the expenses that otherwise would be borne by the Trust in connection with the issuance of a Creation Unit, which the transaction fee is designed to cover. The standard Creation Unit transaction fees for Brandes International ETF, Brandes U.S. Small-Mid Cap Value ETF, and Brandes U.S. Value are $650, $300 and $300, respectively, regardless of the number of Creation Units created in the transaction.
A redemption transaction fee may be imposed for the transfer and other transaction costs associated with the redemption of Creation Units, and Authorized Participants will be required to pay a redemption transaction fee regardless of the number of Creation Units created in the transaction. The redemption transaction fee is the same no matter how many Creation Units are being redeemed pursuant to any one redemption request. Each Fund may adjust the redemption transaction fee from time to time based upon actual experience. In addition, a variable fee, payable to each Fund, may be imposed for cash redemptions, non-standard orders, or partial cash redemptions for each Fund. The variable fee is primarily designed to cover non-standard charges, e.g., brokerage, taxes, foreign exchange, execution, market impact, and other costs and expenses, related to the execution of trades resulting from such transaction. Investors who use the services of an Authorized Participant, broker or other such intermediary may be charged a fee for such services which may include an amount for the redemption transaction fees and non-standard charges. Investors are responsible for the costs of transferring the securities constituting each Fund's securities to the account of the Trust. The non-standard charges are payable to each Fund as it incurs costs in connection with the redemption of Creation Units, the receipt of each Fund's securities and the cash redemption amount and other transactions costs. The standard redemption transaction fees for Brandes International ETF, Brandes U.S. Small-Mid Cap Value ETF, and Brandes U.S. Value are $650, $300 and $300, respectively, regardless of the number of Creation Units redeemed in the transaction.
22
Notes to Financial Statements (Continued)
December 31, 2025 (Unaudited)
6. Federal Income Taxes
At December 31, 2025 gross unrealized appreciation and depreciation of investments owned by each Fund, based on cost for federal income tax purposes were as follows:
| Fund | Tax Cost | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
| Brandes International ETF | $ | 361,821,191 | $ | 5,104,747,293 | $ | (8,965,109 | ) | $ | 5,095,782,184 | |||||||
| Brandes U.S. Small-Mid Cap Value ETF | 127,153,309 | 19,943,460 | (6,930,726 | ) | 13,012,734 | |||||||||||
| Brandes U.S. Value ETF | 257,015,251 | 36,224,423 | (13,024,815 | ) | 23,199,608 | |||||||||||
At June 30, 2025, for Federal income tax purposes, the Funds have capital loss carryforwards available as shown in the table below, to the extent provided by regulations, to offset future capital gains for an unlimited period. To the extent that these capital loss carryforwards are used to offset future capital gains, it is probable that the capital gains so offset will not be distributed to shareholders.
| Fund | Short-Term | Long-Term | Total Amount | |||||||||
| Brandes International ETF | $ | 246,138 | $ | 102,092 | $ | 348,230 | ||||||
| Brandes U.S. Small-Mid Cap Value ETF | 180,258 | 57,211 | 237,469 | |||||||||
| Brandes U.S. Value ETF | 261,130 | - | 261,130 | |||||||||
7. Risk Factors
With all ETFs, shareholders of the Funds are subject to the risk that their investment could lose money. The Funds are subject to the principal risks, any of which may adversely affect each Fund's NAV, trading price, yield, total return and ability to meet their investment objectives. A description of principal risks is included in each prospectus under the heading "Principal Investment Risks".
8. Segment Reporting
In this reporting period, the Funds adopted FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures ("ASU 2023-07"). Adoption of the new standard impacted financial statement disclosures only and did not affect the Funds' financial position or its results of operations. The intent of ASU 2023-07 is, through improved segment disclosures, to enable investors to better understand an entity's overall performance and to assess its potential future cash flows. The President and Chief Executive Officer acts as the Funds' chief operating decision maker (CODM) assessing performance and making decisions about resource allocation. The CODM has determined that each Fund has a single operating segment based on the fact that the CODM monitors the operating results of each fund as a whole and the Funds' long-term strategic asset allocation is pre-determined in accordance with the terms of their respective prospectus, based on a defined investment strategy which is executed by the Funds' portfolio managers as a team. The financial information provided to and reviewed by the CODM is consistent with that presented in the Funds' Schedule of Investments, Statements of Changes in Net Assets and Financial Highlights.
9. Subsequent Events
In preparing these financial statements, the Trust has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were available to be issued. The Trust has concluded that there are no subsequent events to note.
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25
Additional Information (Unaudited)
Proxy Voting Policies and Procedures
The Advisor votes proxies relating to the Funds' portfolio securities in accordance with procedures adopted by the Advisor. You may obtain a description of these procedures, free of charge, by calling toll-free 1-866-307-0477. This information is also available through the Commission's website at http://www.sec.gov.
Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-866-307-0477. This information is also available through the Commission's website at http://www.sec.gov. .
Portfolio Holdings Information
The Trust files the Funds' complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-PORT. The Trust's Form N-PORT filings are available on the Commission's website at http://www.sec.gov. Information regarding the Trust's Form N-PORT filings is also available, without charge, by calling toll-free, 1-866-307-0477.
Discount & Premium Information
Information regarding how often shares of each Fund traded on Exchange at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund can be found at www.brandes.com/etfs.
26
| (b) | An open-end management investment company registered on Form N-1A [17 CFR 239.15A and 17 CFR 274.11A] must file the information required by Item 13 of Form N-1A. |
The Registrant's financial highlights are included as part of the Registrant's Semi-Annual Financial Statements and Other Information filed under Item 7(a) of this Form attached herewith.
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.
Not applicable.
Item 9. Proxy Disclosures for Open-End Management Investment Companies.
Not applicable.
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.
Not applicable.
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
Not applicable.
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 15. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of trustees.
Item 16. Controls and Procedures.
| (a) | The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the effectiveness of the design and operation of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are effective, as of that date. |
| (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 (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. |
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 18. Recovery of Erroneously Awarded Compensation.
Not Applicable.
Item 19. Exhibits.
| (a)(1) | Not applicable. |
| (a)(2) | Not applicable. |
| (a)(3) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
| (a)(4) | There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons. |
| (a)(5) | There was no change in the Registrant's independent public accountant during the period covered by the report. |
| (b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 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.
| (Registrant) | The 2023 ETF Series Trust | |
| By (Signature and Title) | /s/ Eric W. Falkeis | |
| Eric W. Falkeis, President | ||
| (Principal Executive Officer) | ||
| Date | 3/6/2026 |
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 (Signature and Title) | /s/ Eric W. Falkeis | |
| Eric W. Falkeis, President | ||
| (Principal Executive Officer) | ||
| Date | 3/6/2026 | |
| By (Signature and Title) | /s/ Aaron Perkovich | |
| Aaron Perkovich | ||
| (Principal Financial Officer) | ||
| Date | 3/6/2026 |
2023 ETF Series Trust published this content on March 06, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on March 06, 2026 at 20:59 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]