Legg Mason Etf Investment Trust
06/03/2026 | Press release | Distributed by Public on 06/03/2026 09:21
Annual Report by Investment Company (Form N-CSR)
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 811-23096
Legg Mason ETF Investment Trust
(Exact name of registrant as specified in charter)
One Madison Avenue, 17th Floor, New York, NY 10010
(Address of principal executive offices) (Zip code)
Harris Goldblat
Franklin Templeton
100 First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-877-721-1926
Date of fiscal year end: March 31
Date of reporting period: March 31, 2026
| ITEM 1. | REPORT TO STOCKHOLDERS |
(a) The Report to Shareholders is filed herewith
|
Royce Quant Small-Cap Quality Value ETF
|
|
|
SQLV | The Nasdaq Stock Market LLC
|
Annual Shareholder Report | March 31, 2026
|
This annual shareholder report contains important information about Royce Quant Small-Cap Quality Value ETF for the period April 1, 2025, to March 31, 2026.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
You can find additional information about the Fund at https://www.franklintempleton.com/regulatory-fund-documents. You can also request this information by contacting us at (800) DIAL BEN/342-5236.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR? (based on a hypothetical $10,000 investment)
|
Fund Name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Royce Quant Small-Cap Quality Value ETF
|
$65
|
0.60%
|
HOW DID THE FUND PERFORM LAST YEAR AND WHAT AFFECTED ITS PERFORMANCE?
For the twelve months ended March 31, 2026, Royce Quant Small-Cap Quality Value ETF returned 18.14%. The Fund compares its performance to the Russell 2000 Index, which returned 25.72% for the same period.
PERFORMANCE HIGHLIGHTS
|
Top contributors to performance:
|
|
|
↑
|
Stock selection in the financials and consumer discretionary sectors, as well as an underweight in real estate, contributed most to relative performance.
|
|
↑
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At the industry level, software (information technology (IT)), insurance (financials), and construction & engineering (industrials) contributed most to relative performance.
|
|
↑
|
At the position level, Argan (industrials), Bel Fuse (IT), and Monte Rosa Therapeutics (health care) contributed most to relative performance.
|
|
Top detractors from performance:
|
|
|
↓
|
Stock selection in the health care, industrials, and communication services sectors detracted most from relative performance.
|
|
↓
|
At the industry level, biotechnology (health care), pharmaceuticals (health care), and metals & mining (materials) detracted most from relative performance.
|
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↓
|
At the position level, Organon (health care), Accendra Health (health care), and Torrid Holdings (consumer discretionary) detracted most from relative performance.
|
| Royce Quant Small-Cap Quality Value ETF | PAGE 1 | SQLV-ATSR-0526 |
HOW DID THE FUND PERFORM OVER THE LAST 10 YEARS?
The Fund's past performance is not necessarily an indication of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
VALUE OF A $10,000 INVESTMENT - Royce Quant Small-Cap Quality Value ETF 7/12/2017 - 3/31/2026
AVERAGE ANNUAL TOTAL RETURNS (%) Period Ended March 31, 2026
|
1 Year
|
5 Year
|
Since Inception
(7/12/2017) |
|
|
Royce Quant Small-Cap Quality Value ETF (NAV)
|
18.14
|
5.54
|
7.96
|
|
Russell 3000 Index
|
18.09
|
10.87
|
13.20
|
|
Russell 2000 Index
|
25.72
|
3.77
|
8.09
|
Fund performance figures may reflect fee waivers and/or expense reimbursements, without which the performance would have been lower.
Effective May 10, 2022, the Fund adopted its current investment strategy.
For current month-end performance, please call Franklin Templeton at (800) DIAL BEN/342-5236 or visit
https://www.franklintempleton.com/investments/options/exchange-traded-funds.
https://www.franklintempleton.com/investments/options/exchange-traded-funds.
Important data provider notices and terms available at www.franklintempletondatasources.com.
KEY FUND STATISTICS (as of March 31, 2026)
|
Total Net Assets
|
$24,255,736
|
|
Total Number of Portfolio Holdings
|
311
|
|
Total Management Fee Paid (based on a unitary fee)
|
$150,234
|
|
Portfolio Turnover Rate
|
57%
|
| Royce Quant Small-Cap Quality Value ETF | PAGE 2 | SQLV-ATSR-0526 |
WHAT DID THE FUND INVEST IN? (as of March 31, 2026)
Portfolio Composition*(% of Total Investments)
| * | Does not include derivatives, except purchased options, if any. |
|
WHERE CAN I FIND ADDITIONAL INFORMATION ABOUT THE FUND?
|
|
|
Additional information is available on https://www.franklintempleton.com/regulatory-fund-documents, including its:
|
|
|
• prospectus • proxy voting information • financial information • holdings • tax information
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| Royce Quant Small-Cap Quality Value ETF | PAGE 3 | SQLV-ATSR-0526 |
(b) Not applicable
| ITEM 2. | CODE OF ETHICS. |
(a) The Registrant has adopted a code of ethics that applies to its principal executive officer and principal financial officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 19(a) (1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officer and principal financial officer.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
The Board of Trustees of the Registrant has determined that Deborah D. McWhinney, possesses the technical attributes identified in Item 3 to Form N-CSR to qualify as an "audit committee financial expert," and has designated Deborah D. McWhinney as the Audit Committee's financial expert. Deborah D. McWhinney is an "independent" Trustee pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
a) Audit Fees. The aggregate fees billed in the last two fiscal years ending March 31, 2025 and March 31, 2026 (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $145,352 in March 31, 2025 and $94,119 in March 31, 2026.
b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant's financial statements were $0 in March 31, 2025 and $0 in March 31, 2026.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $72,000 in March 31, 2025 and $50,000 in March 31, 2026. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.
There were no fees billed for tax services by the Auditors to the Registrant's investment manager and any entity controlling, controlled by, or under common control with the
investment manager that provides ongoing services to the Registrant ("Service Affiliates") during the Reporting Periods that required pre-approval by the Audit Committee.
d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs (a) through (c) of this item, were $0 in March 31, 2025 and $0 in March 31, 2026.
There were no other non-audit services rendered by the Auditor to the Service Affiliates requiring pre-approval by the Audit Committee in the Reporting Periods.
(e) Audit Committee's pre-approval policies and procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.
(1) The Charter for the Audit Committee (the "Committee") of the Board of each registered investment company (the "Fund") advised by the Registrant's investment manager or one of their affiliates (each, an "Adviser") requires that the Committee shall approve (a) all audit and permissible non-audit services to be provided to the Fund and (b) all permissible non-audit services to be provided by the Fund's independent auditors to the Adviser and any service providers controlling, controlled by or under common control with the Adviser that provide ongoing services to the Fund ("Covered Service Providers") if the engagement relates directly to the operations and financial reporting of the Fund. The Committee may implement policies and procedures by which such services are approved other than by the full Committee.
The Committee shall not approve non-audit services that the Committee believes may impair the independence of the auditors. As of the date of the approval of this Audit Committee Charter, permissible non-audit services include any professional services (including tax services), that are not prohibited services as described below, provided to the Fund by the independent auditors, other than those provided to the Fund in connection with an audit or a review of the financial statements of the Fund. Permissible non-audit services may not include: (i) bookkeeping or other services related to the accounting records or financial statements of the Fund; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions or human resources; (vii) broker or dealer, investment adviser or investment banking services; (viii) legal services and expert services unrelated to the audit; and (ix) any other service the Public Company Accounting Oversight Board determines, by regulation, is impermissible.
Pre-approval by the Committee of any permissible non-audit services is not required so long as: (i) the aggregate amount of all such permissible non-audit services provided to the Fund, the Adviser and the Covered Service Providers constitutes not more than 5% of the total amount of revenues paid to the independent auditors during the fiscal year in which the permissible non-audit services are provided to (a) the Fund, (b) the Adviser and (c) any entity controlling, controlled by or under common control with the Adviser that provides ongoing services to the Fund during the fiscal year in which the services are provided that would have to be approved by the Committee; (ii) the permissible non-audit services were not recognized by the Fund at the time of the engagement to be non-audit services; and (iii) such services are promptly brought to the attention of the Committee and approved by the Committee (or its delegate(s)) prior to the completion of the audit.
(2) None of the services described in paragraphs (b) through (d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Non-audit fees billed by the Auditor for services rendered to the Registrant and the Service Affiliates during the reporting period were $1,315,528 in March 31, 2025 and $2,444,477 in March 31, 2026.
(h) Yes. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval), is compatible with maintaining the Auditor's independence. All services provided by the Auditor to the Registrant or to the Service Affiliates, which were required to be pre-approved, were pre-approved as required.
(i) Not applicable.
(j) Not applicable.
| ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable.
| ITEM 6. | SCHEDULE OF INVESTMENTS. |
| (a) | Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 7 of this Form N-CSR. |
| (b) | Not applicable. |
| ITEM 7. | FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Royce
Quant Small-Cap Quality Value ETF
Quant Small-Cap Quality Value ETF
Financial Statements and Other Important Information
Annual | March 31, 2026
If you need assistance accessing this content, please reach out to your sales representative or send an email to [email protected].
Table of Contents
|
Schedule of Investments
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1
|
|
Statement of Assets and Liabilities
|
13
|
|
Statement of Operations
|
14
|
|
Statements of Changes in Net Assets
|
15
|
|
Financial Highlights
|
16
|
|
Notes to Financial Statements
|
17
|
|
Report of Independent Registered Public Accounting Firm
|
25
|
|
Important Tax Information
|
26
|
|
Changes in and Disagreements with Accountants
|
27
|
|
Results of Meeting(s) of Shareholders
|
27
|
|
Remuneration Paid to Directors, Officers and Others
|
27
|
franklintempleton.com
Financial Statements and Other Important Information - Annual
Schedule of Investments March 31, 2026
Royce Quant Small-Cap Quality Value ETF
(Percentages shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
Common Stocks - 99.8%
|
|||||
|
Communication Services - 5.7%
|
|||||
|
Diversified Telecommunication Services - 0.9%
|
|||||
|
IDT Corp., Class B Shares
|
1,325
|
$65,058
|
|||
|
Iridium Communications Inc.
|
5,549
|
153,929
|
|||
|
Total Diversified Telecommunication Services
|
218,987
|
||||
|
Interactive Media & Services - 3.2%
|
|||||
|
Angi Inc.
|
11,113
|
76,124
*
|
|||
|
Bumble Inc., Class A Shares
|
32,767
|
106,820
*
|
|||
|
Cars.com Inc.
|
9,109
|
73,965
*
|
|||
|
EverQuote Inc., Class A Shares
|
4,558
|
70,284
*
|
|||
|
MediaAlpha Inc., Class A Shares
|
6,642
|
61,771
*
|
|||
|
Shutterstock Inc.
|
2,071
|
34,399
|
|||
|
Taboola.com Ltd.
|
24,575
|
76,183
*
|
|||
|
TripAdvisor Inc.
|
8,895
|
94,821
*
|
|||
|
Yelp Inc.
|
2,624
|
64,918
*
|
|||
|
Ziff Davis Inc.
|
2,996
|
125,712
*
|
|||
|
Total Interactive Media & Services
|
784,997
|
||||
|
Media - 1.4%
|
|||||
|
AMC Networks Inc., Class A Shares
|
12,444
|
84,495
*
|
|||
|
Cable One Inc.
|
1,274
|
116,201
*
|
|||
|
Ibotta Inc., Class A Shares
|
3,346
|
100,280
*
|
|||
|
Scholastic Corp.
|
1,270
|
49,606
|
|||
|
Total Media
|
350,582
|
||||
|
Wireless Telecommunication Services - 0.2%
|
|||||
|
Spok Holdings Inc.
|
3,515
|
38,313
|
|||
|
|
|||||
|
Total Communication Services
|
1,392,879
|
||||
|
Consumer Discretionary - 15.5%
|
|||||
|
Automobile Components - 2.7%
|
|||||
|
Gentex Corp.
|
5,697
|
124,480
|
|||
|
LCI Industries
|
1,479
|
181,887
|
|||
|
Motorcar Parts of America Inc.
|
4,795
|
53,033
*
|
|||
|
Phinia Inc.
|
1,944
|
133,047
|
|||
|
Strattec Security Corp.
|
926
|
72,543
*
|
|||
|
Visteon Corp.
|
890
|
81,088
|
|||
|
Total Automobile Components
|
646,078
|
||||
|
Automobiles - 0.5%
|
|||||
|
Harley-Davidson Inc.
|
6,080
|
122,938
|
|||
|
Broadline Retail - 0.6%
|
|||||
|
Kohl's Corp.
|
10,713
|
138,198
|
|||
See Notes to Financial Statements.
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
1
Schedule of Investments (cont'd) March 31, 2026
Royce Quant Small-Cap Quality Value ETF
(Percentages shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
|
|||||
|
Distributors - 0.2%
|
|||||
|
Weyco Group Inc.
|
1,399
|
$44,838
|
|||
|
Diversified Consumer Services - 3.9%
|
|||||
|
American Public Education Inc.
|
1,501
|
85,377
*
|
|||
|
Coursera Inc.
|
7,677
|
44,680
*
|
|||
|
European Wax Center Inc., Class A Shares
|
14,075
|
81,353
*
|
|||
|
Frontdoor Inc.
|
745
|
39,381
*
|
|||
|
H&R Block Inc.
|
4,702
|
149,241
|
|||
|
Perdoceo Education Corp.
|
4,265
|
158,701
|
|||
|
Phoenix Education Partners Inc.
|
2,136
|
67,199
|
|||
|
Strategic Education Inc.
|
1,226
|
101,709
|
|||
|
Stride Inc.
|
1,785
|
157,383
*
|
|||
|
Udemy Inc.
|
12,016
|
55,514
*
|
|||
|
Total Diversified Consumer Services
|
940,538
|
||||
|
Hotels, Restaurants & Leisure - 1.0%
|
|||||
|
El Pollo Loco Holdings Inc.
|
5,727
|
79,376
*
|
|||
|
Monarch Casino & Resort Inc.
|
1,392
|
133,075
|
|||
|
United Parks & Resorts Inc.
|
1,247
|
40,727
*
|
|||
|
Total Hotels, Restaurants & Leisure
|
253,178
|
||||
|
Household Durables - 1.9%
|
|||||
|
Cricut Inc., Class A Shares
|
23,942
|
89,543
|
|||
|
Flexsteel Industries Inc.
|
1,302
|
58,512
|
|||
|
Hamilton Beach Brands Holding Co., Class A Shares
|
2,471
|
46,825
|
|||
|
Hooker Furnishings Corp.
|
2,808
|
36,167
|
|||
|
Hovnanian Enterprises Inc., Class A Shares
|
748
|
82,961
*
|
|||
|
La-Z-Boy Inc.
|
2,284
|
73,408
|
|||
|
Tri Pointe Homes Inc.
|
1,752
|
81,871
*
|
|||
|
Total Household Durables
|
469,287
|
||||
|
Leisure Products - 0.7%
|
|||||
|
Johnson Outdoors Inc., Class A Shares
|
1,478
|
68,742
|
|||
|
Marine Products Corp.
|
7,302
|
53,086
|
|||
|
Polaris Inc.
|
699
|
38,095
|
|||
|
Total Leisure Products
|
159,923
|
||||
|
Specialty Retail - 2.8%
|
|||||
|
Abercrombie & Fitch Co., Class A Shares
|
1,383
|
126,365
*
|
|||
|
Academy Sports & Outdoors Inc.
|
646
|
36,467
|
|||
|
Bath & Body Works Inc.
|
8,330
|
155,521
|
|||
|
Buckle Inc.
|
3,181
|
160,195
|
|||
|
Monro Inc.
|
2,527
|
40,533
|
|||
|
Sally Beauty Holdings Inc.
|
9,066
|
125,564
*
|
|||
See Notes to Financial Statements.
2
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
Royce Quant Small-Cap Quality Value ETF
(Percentages shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
|
|||||
|
Specialty Retail - continued
|
|||||
|
Winmark Corp.
|
95
|
$40,617
|
|||
|
Total Specialty Retail
|
685,262
|
||||
|
Textiles, Apparel & Luxury Goods - 1.2%
|
|||||
|
Carter's Inc.
|
1,035
|
37,011
|
|||
|
Columbia Sportswear Co.
|
1,964
|
107,647
|
|||
|
G-III Apparel Group Ltd.
|
3,834
|
106,202
|
|||
|
Superior Group of Cos. Inc.
|
3,946
|
40,091
|
|||
|
Total Textiles, Apparel & Luxury Goods
|
290,951
|
||||
|
|
|||||
|
Total Consumer Discretionary
|
3,751,191
|
||||
|
Consumer Staples - 6.3%
|
|||||
|
Beverages - 0.9%
|
|||||
|
Boston Beer Co. Inc., Class A Shares
|
416
|
95,847
*
|
|||
|
MGP Ingredients Inc.
|
3,229
|
59,381
|
|||
|
National Beverage Corp.
|
1,851
|
62,286
*
|
|||
|
Total Beverages
|
217,514
|
||||
|
Consumer Staples Distribution & Retail - 0.3%
|
|||||
|
Village Super Market Inc., Class A Shares
|
1,920
|
81,081
|
|||
|
Food Products - 2.4%
|
|||||
|
Calavo Growers Inc.
|
2,057
|
53,050
|
|||
|
Cal-Maine Foods Inc.
|
1,680
|
132,972
|
|||
|
Fresh Del Monte Produce Inc.
|
5,051
|
203,353
|
|||
|
Seneca Foods Corp., Class A Shares
|
595
|
89,917
*
|
|||
|
Simply Good Foods Co.
|
7,378
|
105,874
*
|
|||
|
Total Food Products
|
585,166
|
||||
|
Household Products - 1.3%
|
|||||
|
Central Garden & Pet Co.
|
2,613
|
96,080
*
|
|||
|
Oil-Dri Corp. of America
|
1,278
|
83,185
|
|||
|
Spectrum Brands Holdings Inc.
|
1,656
|
122,047
|
|||
|
Total Household Products
|
301,312
|
||||
|
Personal Care Products - 1.4%
|
|||||
|
BellRing Brands Inc.
|
5,823
|
93,692
*
|
|||
|
Lifevantage Corp.
|
8,744
|
37,774
|
|||
|
Nature's Sunshine Products Inc.
|
3,917
|
93,969
*
|
|||
|
Niagen Bioscience Inc.
|
8,130
|
35,853
*
|
|||
|
USANA Health Sciences Inc.
|
3,971
|
69,374
*
|
|||
|
Total Personal Care Products
|
330,662
|
||||
|
|
|||||
|
Total Consumer Staples
|
1,515,735
|
||||
|
Energy - 4.6%
|
|||||
|
Energy Equipment & Services - 1.6%
|
|||||
|
Cactus Inc., Class A Shares
|
2,295
|
108,714
|
|||
See Notes to Financial Statements.
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
3
Schedule of Investments (cont'd) March 31, 2026
Royce Quant Small-Cap Quality Value ETF
(Percentages shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
|
|||||
|
Energy Equipment & Services - continued
|
|||||
|
Helix Energy Solutions Group Inc.
|
13,070
|
$129,262
*
|
|||
|
Ranger Energy Services Inc., Class A Shares
|
6,010
|
103,012
|
|||
|
Smart Sand Inc.
|
9,650
|
49,408
|
|||
|
Total Energy Equipment & Services
|
390,396
|
||||
|
Oil, Gas & Consumable Fuels - 3.0%
|
|||||
|
Centrus Energy Corp., Class A Shares
|
254
|
44,092
*
|
|||
|
Crescent Energy Co., Class A Shares
|
15,676
|
211,626
|
|||
|
Excelerate Energy Inc., Class A Shares
|
2,440
|
81,545
|
|||
|
SM Energy Co.
|
6,257
|
195,093
|
|||
|
Talos Energy Inc.
|
8,258
|
130,146
*
|
|||
|
World Kinect Corp.
|
2,752
|
63,488
|
|||
|
Total Oil, Gas & Consumable Fuels
|
725,990
|
||||
|
|
|||||
|
Total Energy
|
1,116,386
|
||||
|
Financials - 23.2%
|
|||||
|
Banks - 8.7%
|
|||||
|
Axos Financial Inc.
|
435
|
37,014
*
|
|||
|
Cathay General Bancorp
|
2,658
|
132,528
|
|||
|
Citizens Financial Services Inc.
|
908
|
55,524
|
|||
|
Civista Bancshares Inc.
|
4,968
|
113,221
|
|||
|
Financial Institutions Inc.
|
3,070
|
97,350
|
|||
|
First Financial Corp.
|
1,985
|
125,452
|
|||
|
Hanmi Financial Corp.
|
2,496
|
65,795
|
|||
|
Home Bancorp Inc.
|
946
|
57,309
|
|||
|
International Bancshares Corp.
|
2,553
|
171,791
|
|||
|
MainStreet Bancshares Inc.
|
3,306
|
73,393
|
|||
|
Mercantile Bank Corp.
|
2,382
|
120,291
|
|||
|
Metropolitan Bank Holding Corp.
|
498
|
41,478
|
|||
|
Midland States Bancorp Inc.
|
3,983
|
88,861
|
|||
|
NBT Bancorp Inc.
|
1,990
|
84,734
|
|||
|
Northeast Bank
|
445
|
50,005
|
|||
|
Northeast Community Bancorp Inc.
|
4,269
|
101,602
|
|||
|
Orange County Bancorp Inc.
|
1,738
|
55,581
|
|||
|
Parke Bancorp Inc.
|
4,197
|
119,195
|
|||
|
Peoples Bancorp Inc.
|
1,491
|
49,009
|
|||
|
Plumas Bancorp
|
1,040
|
50,773
|
|||
|
Preferred Bank
|
1,365
|
123,792
|
|||
|
S&T Bancorp Inc.
|
971
|
40,617
|
|||
|
Unity Bancorp Inc.
|
2,470
|
128,020
|
|||
|
WesBanco Inc.
|
1,354
|
46,699
|
|||
See Notes to Financial Statements.
4
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
Royce Quant Small-Cap Quality Value ETF
(Percentages shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
|
|||||
|
Banks - continued
|
|||||
|
Wintrust Financial Corp.
|
512
|
$71,137
|
|||
|
Total Banks
|
2,101,171
|
||||
|
Capital Markets - 3.9%
|
|||||
|
Acadian Asset Management Inc.
|
1,804
|
98,174
|
|||
|
Artisan Partners Asset Management Inc., Class A Shares
|
3,486
|
126,856
|
|||
|
BRC Group Holdings Inc.
|
11,622
|
85,073
*
|
|||
|
Cohen & Steers Inc.
|
1,137
|
71,119
|
|||
|
Diamond Hill Investment Group Inc.
|
587
|
101,023
|
|||
|
Donnelley Financial Solutions Inc.
|
1,308
|
61,659
*
|
|||
|
Federated Hermes Inc.
|
3,719
|
210,905
|
|||
|
Victory Capital Holdings Inc., Class A Shares
|
3,130
|
204,952
|
|||
|
Total Capital Markets
|
959,761
|
||||
|
Consumer Finance - 1.8%
|
|||||
|
Bread Financial Holdings Inc.
|
602
|
45,084
|
|||
|
Dave Inc.
|
364
|
63,369
*
|
|||
|
DeFi Development Corp.
|
9,563
|
31,462
*
|
|||
|
LendingTree Inc.
|
1,856
|
79,585
*
|
|||
|
NerdWallet Inc., Class A Shares
|
6,663
|
69,162
*
|
|||
|
PROG Holdings Inc.
|
3,360
|
96,398
|
|||
|
World Acceptance Corp.
|
420
|
56,717
*
|
|||
|
Total Consumer Finance
|
441,777
|
||||
|
Financial Services - 4.5%
|
|||||
|
Acacia Research Corp.
|
14,611
|
70,279
*
|
|||
|
Cass Information Systems Inc.
|
1,590
|
69,992
|
|||
|
Euronet Worldwide Inc.
|
1,553
|
103,073
*
|
|||
|
International Money Express Inc.
|
3,465
|
54,747
*
|
|||
|
Marqeta Inc., Class A Shares
|
15,024
|
61,298
*
|
|||
|
Merchants Bancorp
|
1,974
|
84,704
|
|||
|
NCR Atleos Corp.
|
3,180
|
138,584
*
|
|||
|
NMI Holdings Inc.
|
3,823
|
143,401
*
|
|||
|
Payoneer Global Inc.
|
19,658
|
94,948
*
|
|||
|
Radian Group Inc.
|
2,223
|
73,537
|
|||
|
Repay Holdings Corp.
|
23,587
|
61,326
*
|
|||
|
Western Union Co.
|
15,597
|
136,162
|
|||
|
Total Financial Services
|
1,092,051
|
||||
|
Insurance - 4.3%
|
|||||
|
American Coastal Insurance Corp.
|
6,097
|
68,591
|
|||
|
American Integrity Insurance Group Inc.
|
3,732
|
71,953
|
|||
|
Brighthouse Financial Inc.
|
1,022
|
61,197
*
|
|||
|
HCI Group Inc.
|
451
|
69,729
|
|||
See Notes to Financial Statements.
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
5
Schedule of Investments (cont'd) March 31, 2026
Royce Quant Small-Cap Quality Value ETF
(Percentages shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
|
|||||
|
Insurance - continued
|
|||||
|
Heritage Insurance Holdings Inc.
|
3,529
|
$92,636
*
|
|||
|
Hippo Holdings Inc.
|
1,492
|
38,882
*
|
|||
|
Investors Title Co.
|
169
|
36,730
|
|||
|
Kingstone Cos. Inc.
|
3,657
|
53,283
|
|||
|
Mercury General Corp.
|
449
|
39,579
|
|||
|
Neptune Insurance Holdings Inc., Class A Shares
|
5,622
|
135,996
*
|
|||
|
Oscar Health Inc., Class A Shares
|
10,031
|
115,056
*
|
|||
|
Slide Insurance Holdings Inc.
|
7,088
|
127,584
*
|
|||
|
White Mountains Insurance Group Ltd.
|
59
|
129,621
|
|||
|
Total Insurance
|
1,040,837
|
||||
|
|
|||||
|
Total Financials
|
5,635,597
|
||||
|
Health Care - 17.6%
|
|||||
|
Biotechnology - 2.8%
|
|||||
|
ACADIA Pharmaceuticals Inc.
|
3,593
|
79,980
*
|
|||
|
Akebia Therapeutics Inc.
|
28,373
|
39,438
*
|
|||
|
AnaptysBio Inc.
|
562
|
31,168
*
|
|||
|
Anika Therapeutics Inc.
|
3,649
|
52,910
*
|
|||
|
Black Diamond Therapeutics Inc.
|
16,831
|
35,850
*
|
|||
|
Catalyst Pharmaceuticals Inc.
|
4,301
|
106,493
*
|
|||
|
Emergent BioSolutions Inc.
|
6,912
|
57,370
*
|
|||
|
Kura Oncology Inc.
|
4,943
|
40,187
*
|
|||
|
MiMedx Group Inc.
|
14,720
|
58,144
*
|
|||
|
Monte Rosa Therapeutics Inc.
|
3,051
|
50,189
*
|
|||
|
Puma Biotechnology Inc.
|
9,881
|
63,140
*
|
|||
|
Veracyte Inc.
|
2,167
|
69,799
*
|
|||
|
Total Biotechnology
|
684,668
|
||||
|
Health Care Equipment & Supplies - 6.0%
|
|||||
|
Avanos Medical Inc.
|
7,115
|
99,681
*
|
|||
|
Bioventus Inc., Class A Shares
|
7,906
|
72,182
*
|
|||
|
CONMED Corp.
|
2,131
|
75,352
|
|||
|
DENTSPLY SIRONA Inc.
|
9,811
|
113,808
|
|||
|
Electromed Inc.
|
1,761
|
41,225
*
|
|||
|
Embecta Corp.
|
7,776
|
68,740
|
|||
|
Envista Holdings Corp.
|
5,796
|
147,045
*
|
|||
|
Haemonetics Corp.
|
1,231
|
69,379
*
|
|||
|
ICU Medical Inc.
|
327
|
42,232
*
|
|||
|
Integer Holdings Corp.
|
1,067
|
93,896
*
|
|||
|
Integra LifeSciences Holdings Corp.
|
4,079
|
38,424
*
|
|||
|
iRadimed Corp.
|
902
|
86,827
|
|||
|
LeMaitre Vascular Inc.
|
1,096
|
119,650
|
|||
See Notes to Financial Statements.
6
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
Royce Quant Small-Cap Quality Value ETF
(Percentages shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
|
|||||
|
Health Care Equipment & Supplies - continued
|
|||||
|
Merit Medical Systems Inc.
|
679
|
$46,804
*
|
|||
|
OmniAb Inc., $12.50 EARNOUT
|
298
|
0
*(a)(b)(c)(d)
|
|||
|
OmniAb Inc., $15.00 EARNOUT
|
298
|
0
*(a)(b)(c)(d)
|
|||
|
Omnicell Inc.
|
1,193
|
39,822
*
|
|||
|
Pro-Dex Inc.
|
766
|
37,626
*
|
|||
|
STAAR Surgical Co.
|
2,608
|
48,770
*
|
|||
|
Tactile Systems Technology Inc.
|
2,633
|
68,800
*
|
|||
|
Utah Medical Products Inc.
|
856
|
53,063
|
|||
|
Varex Imaging Corp.
|
8,038
|
85,283
*
|
|||
|
Total Health Care Equipment & Supplies
|
1,448,609
|
||||
|
Health Care Providers & Services - 2.7%
|
|||||
|
Accendra Health Inc.
|
15,191
|
34,636
*
|
|||
|
Addus HomeCare Corp.
|
897
|
84,004
*
|
|||
|
Astrana Health Inc.
|
1,641
|
40,237
*
|
|||
|
Castle Biosciences Inc.
|
1,871
|
45,933
*
|
|||
|
Concentra Group Holdings Parent Inc.
|
2,356
|
50,536
|
|||
|
CorVel Corp.
|
2,013
|
110,011
*
|
|||
|
Cross Country Healthcare Inc.
|
10,790
|
101,426
*
|
|||
|
National HealthCare Corp.
|
372
|
59,408
|
|||
|
Pediatrix Medical Group Inc.
|
5,910
|
126,415
*
|
|||
|
Total Health Care Providers & Services
|
652,606
|
||||
|
Health Care Technology - 0.9%
|
|||||
|
Doximity Inc., Class A Shares
|
4,133
|
96,299
*
|
|||
|
GoodRx Holdings Inc., Class A Shares
|
38,114
|
74,703
*
|
|||
|
HealthStream Inc.
|
2,570
|
53,225
|
|||
|
Total Health Care Technology
|
224,227
|
||||
|
Life Sciences Tools & Services - 0.2%
|
|||||
|
Cytek Biosciences Inc.
|
14,273
|
62,373
*
|
|||
|
Pharmaceuticals - 5.0%
|
|||||
|
Amneal Pharmaceuticals Inc.
|
6,991
|
86,898
*
|
|||
|
Amphastar Pharmaceuticals Inc.
|
3,037
|
59,495
*
|
|||
|
ANI Pharmaceuticals Inc.
|
613
|
47,140
*
|
|||
|
Collegium Pharmaceutical Inc.
|
2,223
|
73,515
*
|
|||
|
Corcept Therapeutics Inc.
|
2,630
|
106,015
*
|
|||
|
CorMedix Inc.
|
8,657
|
58,781
*
|
|||
|
Harmony Biosciences Holdings Inc.
|
2,855
|
79,969
*
|
|||
|
Innoviva Inc.
|
5,885
|
137,121
*
|
|||
|
Ligand Pharmaceuticals Inc.
|
432
|
86,249
*
|
|||
|
Pacira BioSciences Inc.
|
4,879
|
110,265
*
|
|||
|
Phibro Animal Health Corp., Class A Shares
|
732
|
40,487
|
|||
See Notes to Financial Statements.
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
7
Schedule of Investments (cont'd) March 31, 2026
Royce Quant Small-Cap Quality Value ETF
(Percentages shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
|
|||||
|
Pharmaceuticals - continued
|
|||||
|
Prestige Consumer Healthcare Inc.
|
1,493
|
$88,490
*
|
|||
|
Septerna Inc.
|
1,547
|
37,174
*
|
|||
|
SIGA Technologies Inc.
|
13,361
|
71,481
|
|||
|
Supernus Pharmaceuticals Inc.
|
2,370
|
122,505
*
|
|||
|
Total Pharmaceuticals
|
1,205,585
|
||||
|
|
|||||
|
Total Health Care
|
4,278,068
|
||||
|
Industrials - 11.9%
|
|||||
|
Aerospace & Defense - 0.3%
|
|||||
|
Optex Systems Holdings Inc.
|
2,767
|
36,594
*
|
|||
|
Park Aerospace Corp.
|
1,385
|
37,921
|
|||
|
Total Aerospace & Defense
|
74,515
|
||||
|
Air Freight & Logistics - 0.2%
|
|||||
|
Radiant Logistics Inc.
|
7,220
|
50,901
*
|
|||
|
Building Products - 1.8%
|
|||||
|
AZZ Inc.
|
792
|
99,103
|
|||
|
Gibraltar Industries Inc.
|
1,668
|
66,503
*
|
|||
|
Insteel Industries Inc.
|
1,388
|
46,651
|
|||
|
Janus International Group Inc.
|
9,312
|
47,957
*
|
|||
|
Masterbrand Inc.
|
15,395
|
127,932
*
|
|||
|
Quanex Building Products Corp.
|
2,635
|
47,351
|
|||
|
Total Building Products
|
435,497
|
||||
|
Commercial Services & Supplies - 1.2%
|
|||||
|
ACCO Brands Corp.
|
21,518
|
64,554
|
|||
|
Ennis Inc.
|
4,400
|
94,248
|
|||
|
HNI Corp.
|
2,467
|
82,373
|
|||
|
Liquidity Services Inc.
|
1,799
|
54,996
*
|
|||
|
Total Commercial Services & Supplies
|
296,171
|
||||
|
Construction & Engineering - 1.3%
|
|||||
|
Matrix Service Co.
|
3,631
|
41,684
*
|
|||
|
NWPX Infrastructure Inc.
|
1,673
|
130,260
*
|
|||
|
Tutor Perini Corp.
|
1,823
|
140,717
|
|||
|
Total Construction & Engineering
|
312,661
|
||||
|
Electrical Equipment - 0.6%
|
|||||
|
Atkore Inc.
|
807
|
47,540
|
|||
|
Powell Industries Inc.
|
70
|
37,876
|
|||
|
Sensata Technologies Holding PLC
|
1,937
|
68,221
|
|||
|
Total Electrical Equipment
|
153,637
|
||||
|
Ground Transportation - 0.2%
|
|||||
|
Proficient Auto Logistics Inc.
|
7,533
|
51,074
*
|
|||
See Notes to Financial Statements.
8
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
Royce Quant Small-Cap Quality Value ETF
(Percentages shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
|
|||||
|
Machinery - 1.3%
|
|||||
|
Blue Bird Corp.
|
1,084
|
$61,560
*
|
|||
|
Luxfer Holdings PLC
|
4,842
|
58,976
|
|||
|
Miller Industries Inc.
|
1,309
|
59,625
|
|||
|
Omega Flex Inc.
|
1,282
|
39,793
|
|||
|
Terex Corp.
|
597
|
35,283
|
|||
|
Worthington Enterprises Inc.
|
932
|
48,594
|
|||
|
Total Machinery
|
303,831
|
||||
|
Passenger Airlines - 0.8%
|
|||||
|
SkyWest Inc.
|
1,489
|
136,735
*
|
|||
|
Sun Country Airlines Holdings Inc.
|
3,691
|
60,975
*
|
|||
|
Total Passenger Airlines
|
197,710
|
||||
|
Professional Services - 3.0%
|
|||||
|
Barrett Business Services Inc.
|
1,928
|
56,259
|
|||
|
Forrester Research Inc.
|
9,145
|
51,761
*
|
|||
|
Franklin Covey Co.
|
4,118
|
65,023
*
|
|||
|
Insperity Inc.
|
2,753
|
74,441
|
|||
|
Kelly Services Inc., Class A Shares
|
9,286
|
82,181
|
|||
|
Kforce Inc.
|
3,123
|
91,317
|
|||
|
Korn Ferry
|
1,997
|
125,711
|
|||
|
Resources Connection Inc.
|
14,550
|
54,272
|
|||
|
TriNet Group Inc.
|
3,173
|
115,592
|
|||
|
Total Professional Services
|
716,557
|
||||
|
Trading Companies & Distributors - 1.2%
|
|||||
|
Global Industrial Co.
|
1,265
|
39,873
|
|||
|
Hudson Technologies Inc.
|
6,181
|
36,344
*
|
|||
|
Karat Packaging Inc.
|
2,328
|
64,998
|
|||
|
Rush Enterprises Inc., Class A Shares
|
1,492
|
98,636
|
|||
|
Transcat Inc.
|
605
|
44,437
*
|
|||
|
Total Trading Companies & Distributors
|
284,288
|
||||
|
|
|||||
|
Total Industrials
|
2,876,842
|
||||
|
Information Technology - 10.8%
|
|||||
|
Communications Equipment - 1.1%
|
|||||
|
BK Technologies Corp.
|
458
|
34,181
*
|
|||
|
Extreme Networks Inc.
|
2,514
|
37,911
*
|
|||
|
Harmonic Inc.
|
5,349
|
48,034
*
|
|||
|
NETGEAR Inc.
|
2,017
|
44,051
*
|
|||
|
NetScout Systems Inc.
|
3,128
|
99,439
*
|
|||
|
Total Communications Equipment
|
263,616
|
||||
|
Electronic Equipment, Instruments & Components - 4.3%
|
|||||
|
Badger Meter Inc.
|
372
|
56,674
|
|||
See Notes to Financial Statements.
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
9
Schedule of Investments (cont'd) March 31, 2026
Royce Quant Small-Cap Quality Value ETF
(Percentages shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
|
|||||
|
Electronic Equipment, Instruments & Components - continued
|
|||||
|
Bel Fuse Inc., Class B Shares
|
454
|
$89,883
|
|||
|
Benchmark Electronics Inc.
|
2,069
|
115,988
|
|||
|
Coda Octopus Group Inc.
|
2,678
|
30,261
*
|
|||
|
CTS Corp.
|
1,904
|
90,935
|
|||
|
Daktronics Inc.
|
3,875
|
75,756
*
|
|||
|
ePlus Inc.
|
562
|
42,291
|
|||
|
IPG Photonics Corp.
|
328
|
37,586
*
|
|||
|
Itron Inc.
|
1,100
|
98,593
*
|
|||
|
Kimball Electronics Inc.
|
1,571
|
37,217
*
|
|||
|
M-Tron Industries Inc.
|
824
|
55,085
*
|
|||
|
PC Connection Inc.
|
1,472
|
86,053
|
|||
|
Plexus Corp.
|
295
|
59,749
*
|
|||
|
ScanSource Inc.
|
2,108
|
76,521
*
|
|||
|
Vishay Intertechnology Inc.
|
2,333
|
41,994
|
|||
|
Vishay Precision Group Inc.
|
946
|
41,075
*
|
|||
|
Total Electronic Equipment, Instruments & Components
|
1,035,661
|
||||
|
IT Services - 1.1%
|
|||||
|
ASGN Inc.
|
2,041
|
79,007
*
|
|||
|
DXC Technology Co.
|
11,809
|
148,439
*
|
|||
|
Hackett Group Inc.
|
2,888
|
37,573
|
|||
|
Total IT Services
|
265,019
|
||||
|
Semiconductors & Semiconductor Equipment - 2.0%
|
|||||
|
Diodes Inc.
|
1,330
|
90,786
*
|
|||
|
Enphase Energy Inc.
|
842
|
31,836
*
|
|||
|
inTEST Corp.
|
2,476
|
33,797
*
|
|||
|
NVE Corp.
|
797
|
52,204
|
|||
|
Penguin Solutions Inc.
|
3,939
|
69,327
*
|
|||
|
Photronics Inc.
|
3,235
|
130,726
*
|
|||
|
Universal Display Corp.
|
838
|
76,811
|
|||
|
Total Semiconductors & Semiconductor Equipment
|
485,487
|
||||
|
Software - 2.3%
|
|||||
|
A10 Networks Inc.
|
5,047
|
116,687
|
|||
|
Adeia Inc.
|
1,588
|
38,160
|
|||
|
Consensus Cloud Solutions Inc.
|
2,238
|
53,130
*
|
|||
|
Five9 Inc.
|
5,201
|
78,899
*
|
|||
|
Mitek Systems Inc.
|
2,532
|
34,182
*
|
|||
|
PagerDuty Inc.
|
12,653
|
78,575
*
|
|||
|
Progress Software Corp.
|
1,228
|
31,498
*
|
|||
|
Qualys Inc.
|
692
|
60,792
*
|
|||
See Notes to Financial Statements.
10
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
Royce Quant Small-Cap Quality Value ETF
(Percentages shown based on Fund net assets)
|
Security
|
|
|
|
Shares
|
Value
|
|
|
|||||
|
Software - continued
|
|||||
|
Teradata Corp.
|
2,856
|
$73,199
*
|
|||
|
Total Software
|
565,122
|
||||
|
|
|||||
|
Total Information Technology
|
2,614,905
|
||||
|
Materials - 3.3%
|
|||||
|
Chemicals - 1.5%
|
|||||
|
Cabot Corp.
|
2,141
|
161,239
|
|||
|
Ecovyst Inc.
|
3,134
|
40,303
*
|
|||
|
Innospec Inc.
|
914
|
66,740
|
|||
|
Minerals Technologies Inc.
|
1,325
|
93,969
|
|||
|
Total Chemicals
|
362,251
|
||||
|
Construction Materials - 0.4%
|
|||||
|
United States Lime & Minerals Inc.
|
818
|
106,839
|
|||
|
Metals & Mining - 1.1%
|
|||||
|
Compass Minerals International Inc.
|
3,449
|
80,534
*
|
|||
|
Metallus Inc.
|
2,638
|
43,105
*
|
|||
|
Ryerson Holding Corp.
|
1,633
|
36,710
|
|||
|
SunCoke Energy Inc.
|
10,225
|
66,565
|
|||
|
Worthington Steel Inc.
|
1,264
|
38,362
|
|||
|
Total Metals & Mining
|
265,276
|
||||
|
Paper & Forest Products - 0.3%
|
|||||
|
Sylvamo Corp.
|
1,819
|
76,835
|
|||
|
|
|||||
|
Total Materials
|
811,201
|
||||
|
Real Estate - 0.6%
|
|||||
|
Real Estate Management & Development - 0.6%
|
|||||
|
Forestar Group Inc.
|
2,712
|
66,281
*
|
|||
|
RMR Group Inc., Class A Shares
|
4,553
|
70,435
|
|||
|
|
|||||
|
Total Real Estate
|
136,716
|
||||
|
Utilities - 0.3%
|
|||||
|
Electric Utilities - 0.3%
|
|||||
|
Genie Energy Ltd., Class B Shares
|
4,727
|
66,840
|
|||
|
Total Investments before Short-Term Investments (Cost - $23,673,962)
|
24,196,360
|
||||
|
|
|
Rate
|
|
|
|
|
Short-Term Investments - 0.2%
|
|||||
|
Dreyfus Treasury Obligations Cash Management Fund,
Institutional Class (Cost - $60,120)
|
3.547%
|
60,120
|
60,120
(e)
|
||
|
Total Investments - 100.0% (Cost - $23,734,082)
|
24,256,480
|
||||
|
Liabilities in Excess of Other Assets - (0.0)%††
|
(744
)
|
||||
|
Total Net Assets - 100.0%
|
$24,255,736
|
||||
See Notes to Financial Statements.
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
11
Schedule of Investments (cont'd) March 31, 2026
Royce Quant Small-Cap Quality Value ETF
|
††
|
Represents less than 0.1%.
|
|
*
|
Non-income producing security.
|
|
(a)
|
Security is fair valued in accordance with procedures approved by the Board of Trustees (Note 1).
|
|
(b)
|
Security is valued using significant unobservable inputs (Note 1).
|
|
(c)
|
Value is less than $1.
|
|
(d)
|
Restricted security (Note 6).
|
|
(e)
|
Rate shown is one-day yield as of the end of the reporting period.
|
See Notes to Financial Statements.
12
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
Statement of Assets and Liabilities March 31, 2026
|
Assets:
|
|
|
Investments, at value (Cost - $23,734,082)
|
$24,256,480
|
|
Dividends receivable
|
10,249
|
|
Receivable for securities sold
|
1,407
|
|
Total Assets
|
24,268,136
|
|
Liabilities:
|
|
|
Investment management fee payable
|
12,400
|
|
Total Liabilities
|
12,400
|
|
Total Net Assets
|
$24,255,736
|
|
Net Assets:
|
|
|
Par value (Note 5)
|
$6
|
|
Paid-in capital
|
28,568,066
|
|
Total distributable earnings (loss)
|
(4,312,336
)
|
|
Total Net Assets
|
$24,255,736
|
|
Shares Outstanding
|
550,000
|
|
Net Asset Value
|
$44.10
|
See Notes to Financial Statements.
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
13
Statement of Operations For the Year Ended March 31, 2026
|
Investment Income:
|
|
|
Dividends
|
$442,107
|
|
Total Investment Income
|
442,107
|
|
Expenses:
|
|
|
Investment management fee (Note 2)
|
150,234
|
|
Total Expenses
|
150,234
|
|
Net Investment Income
|
291,873
|
|
Realized and Unrealized Gain on Investments (Notes 1 and 3):
|
|
|
Net Realized Gain From Investment Transactions
|
1,384,442
|
|
Change in Net Unrealized Appreciation (Depreciation) From Investments
|
2,329,633
|
|
Net Gain on Investments
|
3,714,075
|
|
Increase in Net Assets From Operations
|
$4,005,948
|
See Notes to Financial Statements.
14
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
Statements of Changes in Net Assets
|
For the Years Ended March 31,
|
2026
|
2025
|
|
Operations:
|
||
|
Net investment income
|
$291,873
|
$321,045
|
|
Net realized gain
|
1,384,442
|
708,113
|
|
Change in net unrealized appreciation (depreciation)
|
2,329,633
|
(2,929,855
)
|
|
Increase (Decrease) in Net Assets From Operations
|
4,005,948
|
(1,900,697
)
|
|
Distributions to Shareholders From (Note 1):
|
||
|
Total distributable earnings
|
(293,000
)
|
(329,315
)
|
|
Decrease in Net Assets From Distributions to Shareholders
|
(293,000
)
|
(329,315
)
|
|
Fund Share Transactions (Note 5):
|
||
|
Net proceeds from sale of shares (50,000 and 0 shares issued, respectively)
|
2,170,851
|
-
|
|
Cost of shares repurchased (150,000 and 50,000 shares repurchased,
respectively)
|
(6,173,789
)
|
(2,288,116
)
|
|
Decrease in Net Assets From Fund Share Transactions
|
(4,002,938
)
|
(2,288,116
)
|
|
Decrease in Net Assets
|
(289,990
)
|
(4,518,128
)
|
|
Net Assets:
|
||
|
Beginning of year
|
24,545,726
|
29,063,854
|
|
End of year
|
$24,255,736
|
$24,545,726
|
See Notes to Financial Statements.
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
15
Financial Highlights
|
For a share of beneficial interest outstanding throughout each year ended March 31,
unless otherwise noted:
|
||||||
|
|
20261
|
20251
|
20241
|
20231
|
20221,2
|
20211,3
|
|
Net asset value, beginning of period
|
$37.76
|
$41.52
|
$35.50
|
$38.64
|
$37.85
|
$22.80
|
|
Income (loss) from operations:
|
||||||
|
Net investment income
|
0.48
|
0.47
|
0.47
|
0.47
|
0.36
|
0.35
|
|
Net realized and unrealized gain (loss)
|
6.35
|
(3.74
)
|
5.99
|
(3.15
)
|
0.82
|
15.03
|
|
Total income (loss) from
operations
|
6.83
|
(3.27)
|
6.46
|
(2.68)
|
1.18
|
15.38
|
|
Less distributions from:
|
||||||
|
Net investment income
|
(0.49
)
|
(0.49
)
|
(0.44
)
|
(0.44
)
|
(0.39
)
|
(0.33
)
|
|
Return of capital
|
-
|
-
|
-
|
(0.02
)
|
-
|
-
|
|
Total distributions
|
(0.49
)
|
(0.49
)
|
(0.44
)
|
(0.46
)
|
(0.39
)
|
(0.33
)
|
|
Net asset value, end of period
|
$44.10
|
$37.76
|
$41.52
|
$35.50
|
$38.64
|
$37.85
|
|
Total return, based on NAV4
|
18.14
%
|
(7.96
)%
|
18.33
%
|
(6.88
)%
|
3.15
%
|
67.77
%
|
|
Net assets, end of period (000s)
|
$24,256
|
$24,546
|
$29,064
|
$24,849
|
$19,320
|
$17,031
|
|
Ratios to average net assets:
|
||||||
|
Gross expenses
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%
|
0.60
%5
|
0.60
%
|
|
Net expenses
|
0.60
|
0.60
|
0.60
|
0.60
|
0.60
5
|
0.60
|
|
Net investment income
|
1.17
|
1.14
|
1.25
|
1.33
|
1.39
5
|
1.13
|
|
Portfolio turnover rate6
|
57
%
|
44
%
|
101
%
|
51
%
|
73
%
|
99
%
|
|
1
|
Per share amounts have been calculated using the average shares method.
|
|
2
|
For the period August 1, 2021 through March 31, 2022.
|
|
3
|
For the year ended July 31.
|
|
4
|
Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of fee waivers and/or
expense reimbursements, the total return would have been lower. The total return calculation assumes that
distributions are reinvested at NAV. Past performance is no guarantee of future results. Total returns for periods of
less than one year are not annualized.
|
|
5
|
Annualized.
|
|
6
|
Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share
transactions.
|
See Notes to Financial Statements.
16
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
Notes to Financial Statements
1. Organization and significant accounting policies
Royce Quant Small-Cap Quality Value ETF (the "Fund") is a separate diversified investment series of Legg Mason ETF Investment Trust (the "Trust"). The Trust, a Maryland statutory trust, is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end management investment company.
The Fund is an actively managed exchange-traded fund ("ETF"). ETFs are funds that trade like other publicly-traded securities. Unlike shares of a mutual fund, which can be bought from and redeemed by the issuing fund by all shareholders at a price based on net asset value ("NAV"), shares of the Fund may be directly purchased from and redeemed by the Fund at NAV solely by certain large institutional investors who have entered into agreements with the Fund's distributor ("Authorized Participants"). Also unlike shares of a mutual fund, shares of the Fund are listed on a national securities exchange and trade in the secondary market at market prices that change throughout the day.
Shares of the Fund are listed and traded at market prices on NASDAQ. The market price for the Fund's shares may be different from the Fund's NAV. The Fund issues and redeems shares at NAV only in blocks of a specified number of shares or multiples thereof ("Creation Units"). Only Authorized Participants may purchase or redeem Creation Units directly with the Fund at NAV. Creation Units are created and redeemed principally in-kind (although under some circumstances its shares are created and redeemed partially for cash). Except when aggregated in Creation Units, shares of the Fund are not redeemable securities. Shareholders who are not Authorized Participants may not redeem shares directly from the Fund at NAV.
The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services - Investment Companies("ASC 946"). The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles ("GAAP"), including, but not limited to, ASC 946. Estimates and assumptions are required to be made regarding assets, liabilities and changes in net assets resulting from operations when financial statements are prepared. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ. Subsequent events have been evaluated through the date the financial statements were issued.
(a) Investment valuation. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services typically use inputs that are observable such as issuer details, interest rates, yield curves, prepayment
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
17
Notes to Financial Statements (cont'd)
speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will use the currency exchange rates, generally determined as of 4:00 p.m. (London Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Fund's Board of Trustees (the "Board").
Pursuant to policies adopted by the Board, the Fund's manager has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund's manager is assisted by the Global Fund Valuation Committee (the "Valuation Committee"). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund's pricing policies, and reporting to the Fund's manager and the Board. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer's financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts' research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board quarterly.
18
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.
GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:
•
Level 1 - unadjusted quoted prices in active markets for identical investments
•
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
•
Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Fund's assets carried at fair value:
|
ASSETS
|
||||
|
Description
|
Quoted Prices
(Level 1)
|
Other Significant
Observable Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
|
|
Long-Term Investments†:
|
||||
|
Common Stocks:
|
||||
|
Health Care
|
$4,278,068
|
-
|
$0
*
|
$4,278,068
|
|
Other Common Stocks
|
19,918,292
|
-
|
-
|
19,918,292
|
|
Total Long-Term Investments
|
24,196,360
|
-
|
0
*
|
24,196,360
|
|
Short-Term Investments†
|
60,120
|
-
|
-
|
60,120
|
|
Total Investments
|
$24,256,480
|
-
|
$0
*
|
$24,256,480
|
|
†
|
See Schedule of Investments for additional detailed categorizations.
|
|
*
|
Amount represents less than $1.
|
(b) Foreign investment risks. The Fund's investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or may pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
19
Notes to Financial Statements (cont'd)
(c) Security transactions and investment income. Security transactions are accounted for on a trade date basis. Interest income (including interest income from payment-in-kind securities) is recorded on the accrual basis. Amortization of premiums and accretion of discounts on debt securities are recorded to interest income over the lives of the respective securities, except for premiums on certain callable debt securities, which are amortized to the earliest call date. Dividend income is recorded on the ex-dividend date for dividends received in cash and/or securities. Foreign dividend income is recorded on the ex-dividend date or as soon as practicable after the Fund determines the existence of a dividend declaration after exercising reasonable due diligence. The cost of investments sold is determined by use of the specific identification method. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.
(d) Distributions to shareholders. Distributions from net investment income of the Fund, if any, are declared and paid on a quarterly basis. Distributions of net realized gains, if any, are declared at least annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.
(e) Federal and other taxes. It is the Fund's policy to comply with the federal income and excise tax requirements of the Internal Revenue Code of 1986 (the "Code"), as amended, applicable to regulated investment companies. Accordingly, the Fund intends to distribute its taxable income and net realized gains, if any, to shareholders in accordance with timing requirements imposed by the Code. Therefore, no federal or state income tax provision is required in the Fund's financial statements.
Management has analyzed the Fund's tax positions taken on income tax returns for all open tax years and has concluded that as of March 31, 2026, no provision for income tax is required in the Fund's financial statements. The Fund's federal and state income and federal excise tax returns for the prior three fiscal years are subject to examination by the Internal Revenue Service and state departments of revenue.
(f) Reclassification. GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. During the current year, the following reclassifications have been made:
|
|
Total Distributable
Earnings (Loss)
|
Paid-in
Capital
|
|
(a)
|
$(659,323)
|
$659,323
|
(a)
Reclassifications are due to book/tax differences in the treatment of an in-kind distribution of securities.
2. Investment management agreement and other transactions with affiliates
Franklin Templeton Fund Adviser, LLC ("FTFA") is the Fund's investment manager and Royce & Associates, LP ("Royce") is the Fund's subadviser. Western Asset Management Company, LLC ("Western Asset") manages the portion of the Fund's cash and short-term instruments
20
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
allocated to it. FTFA, Royce, and Western Asset are subsidiaries of Franklin Resources, Inc. ("Franklin Resources").
FTFA provides administrative and certain oversight services to the Fund. FTFA delegates to the subadviser the day-to-day portfolio management of the Fund. The Fund is responsible for paying interest expenses, taxes, brokerage expenses, future 12b-1 fees (if any), acquired fund fees and expenses, extraordinary expenses and the management fee payable to FTFA under the investment management agreement.
Under the investment management agreement and subject to the general supervision of the Fund's Board, FTFA provides or causes to be furnished all investment management, supervisory, administrative and other services reasonably necessary for the operation of the Fund, including certain distribution services (provided pursuant to a separate distribution agreement) and investment advisory services (provided pursuant to separate subadvisory agreements) under a unitary fee structure. The Fund pays an investment management fee, calculated daily and paid monthly, at an annual rate of 0.60% of the Fund's average daily net assets.
As compensation for its subadvisory services, FTFA pays Royce monthly 90% of the management fee paid by Fund to FTFA, net of (i) all fees and expenses incurred by FTFA under the investment management agreement (including without limitation any subadvisory fee paid to another subadviser to the Fund) and (ii) expense waivers, if any, and reimbursements. FTFA pays Western Asset monthly a fee of 0.02% of the portion of the Fund's average daily net assets allocated to Western Asset for the management of cash and other short-term instruments, net of expense waivers, if any, and reimbursements.
Franklin Distributors, LLC ("Franklin Distributors") serves as the distributor of Creation Units for the Fund on an agency basis. Franklin Distributors is an indirect, wholly-owned broker-dealersubsidiary of Franklin Resources.
The Board has adopted a Rule 12b-1 shareholder services and distribution plan and under that plan, the Fund is authorized to pay service and/or distribution fees calculated at an annual rate of up to 0.25% of its average daily net assets. No service and/or distribution fees are currently paid by the Fund, and there are no current plans to impose these fees.
All officers and one Trustee of the Trust are employees of Franklin Resources or its affiliates and do not receive compensation from the Trust.
3. Investments
During the year ended March 31, 2026, the aggregate cost of purchases and proceeds from sales of investments (excluding in-kind transactions and short-term investments) were as follows:
|
Purchases
|
$14,177,397
|
|
Sales
|
14,228,007
|
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
21
Notes to Financial Statements (cont'd)
During the year ended March 31, 2026, in-kind transactions (Note 5) were as follows:
|
Contributions
|
$2,163,709
|
|
Redemptions
|
6,131,497
|
|
Realized gain (loss)*
|
678,544
|
|
*
|
Net realized gains on redemptions in-kind are not taxable to the remaining shareholders of the Fund.
|
The in-kind contributions and in-kind redemptions shown in this table may not agree with the Fund Share Transactions on the Statements of Changes in Net Assets. This table represents the accumulation of the Fund's daily net shareholder transactions while the Statements of Changes in Net Assets reflects gross shareholder transactions including any cash component of the transactions.
At March 31, 2026, the aggregate cost of investments and the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were as follows:
|
|
Cost
|
Gross
Unrealized
Appreciation
|
Gross
Unrealized
Depreciation
|
Net
Unrealized
Appreciation
|
|
Securities
|
$23,844,872
|
$3,614,077
|
$(3,202,469)
|
$411,608
|
4. Derivative instruments and hedging activities
During the year ended March 31, 2026, the Fund did not invest in derivative instruments.
5. Fund share transactions
At March 31, 2026, the Trust had an unlimited number of shares of beneficial interest authorized with a par value of $0.00001 per share. Fund shares are issued and redeemed by the Fund only in Creation Units or Creation Unit aggregations, where 50,000 shares of the Fund constitute a Creation Unit. Such transactions are generally on an in-kind basis, with a separate cash payment, which is a balancing cash component to equate the transaction to the net asset value per share of the Fund on the transaction date. Transactions in capital shares of the Fund are disclosed in detail in the Statements of Changes in Net Assets. Authorized Participants are subject to standard creation and redemption transaction fees to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units. Such transactions fees are treated as increases in capital and are disclosed in the Fund's Statements of Changes in Net Assets. Creations and redemptions for cash (when cash creations and redemptions are available or specified) may be subject to an additional variable fee.
22
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
6. Restricted securities
The following Fund investments are restricted as to resale and, in the absence of readily ascertainable market values, are fair valued in accordance with procedures approved by the Board.
|
Security
|
Number of
Shares
|
Acquisition
Date
|
Cost
|
Fair Value
at 3/31/2026
|
Value Per
Share
|
Percent of
Net Assets
|
|
OmniAb Inc., $12.50 EARNOUT,
Common Shares
|
298
|
11/22
|
$0
(a)
|
$0
(a)
|
$0.00
(b)
|
0.00
%(c)
|
|
OmniAb Inc., $15.00 EARNOUT,
Common Shares
|
298
|
11/22
|
0
(a)
|
0
(a)
|
0.00
(b)
|
0.00
(c)
|
|
Total
|
$0
(a)
|
$0
(a)
|
0.00
%(c)
|
|
(a)
|
Amount represents less than $1.
|
|
(b)
|
Amount represents less than $0.005 per share.
|
|
(c)
|
Amount represents less than 0.005%.
|
7. Income tax information and distributions to shareholders
The tax character of distributions paid during the fiscal years ended March 31, was as follows:
|
|
2026
|
2025
|
|
Distributions paid from:
|
||
|
Ordinary income
|
$293,000
|
$329,315
|
As of March 31, 2026, the components of distributable earnings (loss) on a tax basis were as follows:
|
Undistributed ordinary income - net
|
$17,961
|
|
Deferred capital losses*
|
(4,741,904)
|
|
Unrealized appreciation (depreciation)(a)
|
411,607
|
|
Total distributable earnings (loss) - net
|
$(4,312,336)
|
|
*
|
These capital losses have been deferred in the current year as either short-term or long-term losses. The losses
will be deemed to occur on the first day of the next taxable year in the same character as they were originally
deferred and will be available to offset future taxable capital gains.
|
|
(a)
|
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to the tax
deferral of losses on wash sales.
|
8. Operating segments
The Fund operates as a single operating segment, which is an investment portfolio. A management group assigned to the Fund within the Fund's investment manager serves as the Chief Operating Decision Maker ("CODM") and is responsible for evaluating the Fund's operating results and allocating resources in accordance with the Fund's investment strategy. Internal reporting provided to the CODM aligns with the accounting policies and measurement principles used in the financial statements.
For information regarding segment assets, segment profit or loss, and significant expenses, refer to the Statement of Assets and Liabilities and the Statement of Operations, along with
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
23
Notes to Financial Statements (cont'd)
the related Notes to Financial Statements. The Fund's Schedule of Investments provides details of the Fund's investments that generate returns such as interest, dividends, and realized and unrealized gains or losses. Performance metrics, including portfolio turnover and expense ratios, are disclosed in the Financial Highlights.
24
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Legg Mason ETF Investment Trust and Shareholders of Royce Quant Small-Cap Quality Value ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Royce Quant Small-Cap Quality Value ETF (one of the funds constituting Legg Mason ETF Investment Trust, referred to hereafter as the "Fund") as of March 31, 2026, the related statement of operations for the year ended March 31, 2026, the statements of changes in net assets for each of the two years in the period ended March 31, 2026, including the related notes, and the financial highlights for each of the four years in the period ended March 31, 2026, the period August 1, 2021 through March 31, 2022 and the year ended July 31, 2021 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2026, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended March 31, 2026 and the financial highlights for each of the four years in the period ended March 31, 2026, the period August 1, 2021 through March 31, 2022 and the year ended July 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of March 31, 2026 by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
San Francisco, California
May 28, 2026
May 28, 2026
We have served as the auditor of one or more investment companies in the Franklin Templeton Group of Funds since 1948.
Royce Quant Small-Cap Quality Value ETF 2026 Annual Report
25
Important Tax Information (unaudited)
By mid-February, tax information related to a shareholder's proportionate share of distributions paid during the preceding calendar year will be received, if applicable. Please also refer to www.franklintempleton.com for per share tax information related to any distributions paid during the preceding calendar year. Shareholders are advised to consult with their tax advisors for further information on the treatment of these amounts on their tax returns.
The following tax information for the Fund is required to be furnished to shareholders with respect to income earned and distributions paid during its fiscal year.
The Fund hereby reports the following amounts, or if subsequently determined to be different, the maximum allowable amounts, for the fiscal year ended March 31, 2026:
|
|
Pursuant to:
|
Amount Reported
|
|
Income Eligible for Dividends Received Deduction (DRD)
|
§854(b)(1)(A)
|
$429,327
|
|
Qualified Dividend Income Earned (QDI)
|
§854(b)(1)(B)
|
$430,448
|
26
Royce Quant Small-Cap Quality Value ETF
|
Changes in and Disagreements with Accountants
|
For the period covered by this report
|
|
Not applicable.
|
|
|
Results of Meeting(s) of Shareholders
|
For the period covered by this report
|
|
Not applicable.
|
|
|
Remuneration Paid to Directors, Officers and Others
|
For the period covered by this report
|
|
Not applicable. Remuneration paid to directors, officers, and others is included as part of the all-inclusive
management fee and not paid directly by the Fund.
|
|
Royce Quant Small-Cap Quality Value ETF
27
(This page intentionally left blank.)
Royce
Quant Small-Cap Quality Value ETF
Trustees
Alison J. Baumann
Rohit Bhagat
Chair
Deborah D. McWhinney
Patrick O'Connor
Anantha K. Pradeep
Investment manager
Franklin Templeton Fund Adviser, LLC
Subadviser
Royce & Associates, LP
Custodian
The Bank of New York Mellon
Transfer agent
The Bank of New York Mellon
240 Greenwich Street
New York, NY 10286
240 Greenwich Street
New York, NY 10286
Independent registered public accounting firm
PricewaterhouseCoopers LLP
San Francisco, CA
San Francisco, CA
Royce Quant Small-Cap Quality Value ETF
The Fund is a separate investment series of Legg Mason ETF Investment Trust, a Maryland statutory trust.
Royce Quant Small-Cap Quality Value ETF
Legg Mason Funds
One Madison Avenue, 17th Floor
New York, NY 10010
Legg Mason Funds
One Madison Avenue, 17th Floor
New York, NY 10010
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund's Forms N-PORT are available on the SEC's website at www.sec.gov. To obtain information on Form N-PORT, shareholders can call the Fund at (800) DIAL BEN/342-5236.
Information on how the Fund voted proxies relating to portfolio securities during the prior 12-month period ended June 30th of each year and a description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio transactions are available (1) without charge, upon request, by calling the Fund at (800) DIAL BEN/342-5236,(2) at www.franklintempleton.com and (3) on the SEC's website at www.sec.gov.
This report is submitted for the general information of the shareholders of Royce Quant Small-Cap Quality Value ETF. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by a current prospectus.
Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. Theprospectus contains this and other important information about the Fund. Please read the prospectuscarefully before investing.
www.franklintempleton.com
© 2026 Franklin Distributors, LLC, Member FINRA/SIPC. All rights reserved.
SQVL-AFSOI 5/26
© 2026 Franklin Templeton. All rights reserved.
| ITEM 8. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 9. | PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 10. | REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR.
| ITEM 11. | STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT. |
The information is disclosed as part of the Financial Statements included in Item 7 of this Form N-CSR, as 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 changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
| ITEM 16. | CONTROLS AND PROCEDURES. |
| (a) | The Registrants acknowledge the Staff's comment. In future filings on Form N-CSR, the certifications required by Rule 30a-2 and Item 19(a)(3) will include the designations "principal executive officer" and "principal financial officer" in the signature blocks, reflecting the capacity in which each signatory executes the certification, in conformity with the language of the Rule and Form N-CSR. The Registrants may also include each signatory's actual title with respect to the Funds alongside the required designation. |
| (b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected or are 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. |
| (a) | Not applicable. |
| (b) | Not applicable. |
| ITEM 19. | EXHIBITS. |
Exhibit 99.CODE ETH
Exhibit 99.CERT
Exhibit 99.906CERT
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, there unto duly authorized.
Legg Mason ETF Investment Trust
| By: | /s/ Christopher Kings | |
| Christopher Kings | ||
| Chief Executive Officer - Finance and Administration | ||
| Date: | June 03, 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: | /s/ Christopher Kings | |
| Christopher Kings | ||
| Chief Executive Officer - Finance and Administration | ||
| Date: | June 03, 2026 |
| By: | /s/ Jeffrey White | |
| Jeffrey White | ||
| Chief Financial Officer, Chief Accounting Officer and Treasurer | ||
| Date: | June 03, 2026 |
Legg Mason Etf Investment Trust published this content on June 03, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on June 03, 2026 at 15:21 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]