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
|
811-22175
|
|
ALPS ETF TRUST
|
(Exact name of registrant as specified
in charter)
|
|
1290 Broadway, Suite 1100, Denver, Colorado
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80203
|
(Address of principal executive
offices)
|
|
(Zip code)
|
|
Craig Fidler
ALPS ETF Trust
1290 Broadway, Suite 1100
Denver, Colorado 80203
|
(Name and address of agent for
service)
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Registrants telephone number, including
area code:
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(303) 623-2577
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Date of fiscal year end:
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December 31
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|
|
Date of reporting period:
|
May 7, 2008
- June 30, 2008
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|
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Item
1.
Reports to Stockholders.
ALPS ETF Trust
|
TABLE OF CONTENTS
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Shareholder Letter
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2
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Fund Description
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3
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Performance Overview
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3
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Disclosure of Fund Expenses
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6
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Financial Statements
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Schedule of Investments
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7
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Statement of Assets and
Liabilities
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10
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Statement of Operations
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11
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Statement of Changes in Net
Assets
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12
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Financial Highlights
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13
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Notes to Financial
Statements
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14
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Additional Information
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20
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Semi-Annual | June 30,
2008
1
ALPS ETF
Trust
|
SHAREHOLDER LETTER
|
June 30, 2008
Dear Shareholders,
ALPS Fund Services has
established itself as a significant service provider to the exchange-traded
fund (ETF) industry since ETFs were introduced on the American Stock Exchange
in 1993. Given that history, it gave us great pleasure to launch the Cohen &
Steers Global Realty Majors Exchange Traded Fund (AMEX: GRI) in May 2008.
Our new investment company,
ALPS ETF Trust, had been searching for opportunities to partner with an asset
manager or index provider to develop our first product. We found what we were
looking for in Cohen & Steers, a best in class real estate investment
trust manager whose experience in the real estate field made for a good
complement to ALPS ETF knowledge.
ETFs provide investors with a
transparent, low-cost and tax efficient way to
obtain exposure to a variety of asset classes. Global real estate is an asset class that has
been growing significantly in recent years, and one that we believe should have
a place in every investors portfolio.
Cohen & Steers has a long and
distinguished reputation in managing real estate securities. The
Fund also fits with the ALPS philosophy of moving beyond the traditional style
boxes to obtain
better
diversification. We believe the advantages
of ETFs, coupled with the
attractiveness
of global real estate and the expertise of Cohen & Steers will make
GRI a suitable investment for a wide range of investors.
In the pages that
follow, the fund managers provide a detailed analysis of this exciting new
ETF. I encourage you to review their
perspective and the rest of the information in the semi-annual report.
And of course, I thank you
for being a GRI shareholder.
Tom Carter
President, ALPS ETF Trust
www.alpsetfs.com | 866.513.5856
2
ALPS ETF
Trust
|
PERFORMANCE OVERVIEW
|
FUND
DESCRIPTION
The Cohen & Steers
Global Realty Majors ETF (the Fund) seeks investment results that correspond
generally to the performance (before the Funds fees and expenses) of an equity
index called the Cohen & Steers Global Realty Majors Index (the
Index). The Shares of the Fund are listed and trade on the American Stock
Exchange under the ticker symbol GRI. The Fund will normally invest
substantially all of its assets in the 75 stocks that comprise the Cohen &
Steers Global Realty Majors Index. The Fund began trading on May 9, 2008.
The Index is a free-float,
market-cap-weighted total return index of selected real
estate equity securities maintained by
Cohen & Steers. It is quoted intraday on a
real-time basis by the Chicago Mercantile Exchange under the
symbol GRM. The
indexs free-float
market capitalization approach and qualitative screening process
emphasize companies that the Cohen &
Steers Index Committee believes are leading
the
securitization of real estate globally.
PERFORMANCE
OVERVIEW
(as of June 30, 2008)
Real estate securities
performed poorly in May and June as fears of increasing global
inflation and slowing global economic growth persisted amongst investors.
Initial hopes of interest rate cuts by the worlds central banks changed to
concerns over the likelihood of rate hikes by year-end. Although global stock market declines were
widespread, Europe suffered the most significant declines, followed by Asia
Pacific and North America.
U.S. real estate securities
stumbled in June although performance varied widely by property
sector. The office REIT sector, which
had been highly correlated with financial services stocks, started to rebound
and was the best performer in the group.
The hotel sector (15%) was the poorest performer, due in part to the
rising cost and reduced availability of air travel.
Asian real estate securities
outperformed their European peers in the 2nd quarter, but remained the poorest
regional performer on a year-to-date basis.
Japan was the standout, posting gains in excess of 5% for the
quarter. Hong Kong and Singapore, down
10.8% and 10.9% respectively, were hampered by higher inflation and signs of
softening in the economy. Despite solid
property fundamentals in Australia,
concern
over higher future cap rates and lower occupancies moved the sector down 14.5%
for the quarter.
3
European real estate
securities were the worst performers in the second quarter, lead by Germany
(24.5%) and the U.K. (22.6%). Despite
better than expected economic growth in Germany, real estate stocks
underperformed. Debt downgrades of
homebuilders and the reluctance of banks to lend were major contributors to the
continually worsening housing market in the U.K. While still negative in absolute terms,
higher occupancies, rising rents and conservative financing all contributed to
out-performance by both Dutch (11.5%) and French (10.9%) real estate securities
for the quarter.
The Fund commenced operations
in the middle of the second quarter on May 7, 2008. The Funds net asset value (NAV) declined
16.0% from inception through June 30, 2008, compared to declines of 15.8%
for the Index and 14.9% for the Funds market price.
|
|
Cumulative Total Returns
|
|
|
|
Since Fund Inception
|
|
|
|
(May 7, 2008)
|
|
Fund Performance
|
|
|
|
NAV
|
|
(15.96
|
)%
|
Market Price
|
|
(14.90
|
)%
|
Index Performance
|
|
|
|
Cohen & Steers Global Realty
Majors Index
|
|
(15.83
|
)%
|
4
TOP 10
HOLDINGS
as of June 30, 2008
Mitsubishi Estate Co., Ltd.
|
|
3.74
|
%
|
Simon Property Group, Inc.
|
|
3.69
|
%
|
Westfield Group
|
|
3.63
|
%
|
Unibail-Rodamco
|
|
3.55
|
%
|
Mitsui Fudosan Co., Ltd.
|
|
3.50
|
%
|
ProLogis
|
|
3.48
|
%
|
Sun Hung Kai Properties, Ltd.
|
|
2.85
|
%
|
Vornado Realty Trust
|
|
2.83
|
%
|
Land Securities Group Plc
|
|
2.73
|
%
|
Public Storage
|
|
2.57
|
%
|
Percent of Net Assets in Top Ten Holdings:
|
|
32.57
|
%
|
COUNTRY
BREAKDOWN (% OF NET ASSETS)
as of June 30, 2008
Australia
|
|
9.9
|
%
|
Belgium
|
|
0.3
|
%
|
Bermuda
|
|
2.0
|
%
|
Canada
|
|
1.0
|
%
|
France
|
|
5.3
|
%
|
Germany
|
|
0.9
|
%
|
Great Britain
|
|
8.6
|
%
|
Hong Kong
|
|
8.6
|
%
|
Japan
|
|
13.5
|
%
|
Netherlands
|
|
1.7
|
%
|
Singapore
|
|
3.3
|
%
|
Sweden
|
|
0.9
|
%
|
Switzerland
|
|
0.5
|
%
|
United States
|
|
41.1
|
%
|
GROWTH OF
$10K
as of June 30, 2008
Comparison of Change in Value
of $10,000 Investment in Cohen & Steers Global Realty Majors ETF and
Cohen & Steers Global Realty Majors Index.
5
ALPS ETF
Trust
|
DISCLOSURE OF FUND EXPENSES
|
|
For the Period Ended June 30, 2008(a) (Unaudited)
|
Shareholder
Expense Example:
As a shareholder of the Fund, you incur two
types of costs: (1) transaction costs which may include creation and
redemption fees or brokerage charges and (2) ongoing costs, including management
fees and other Fund expenses. These
examples are intended to help you understand your ongoing
costs (in dollars) of investing in the
Fund and to compare these costs with the
ongoing
costs of investing in other funds. It is based on an investment of $1,000
invested at May 9, 2008, the first day the Fund traded, and held through
the period ended June 30, 2008.
Actual
Return:
The
first line of the table provides information about actual
account values and actual expenses. You
may use the information in this table,
together
with the amount you invested, to estimate the expenses that you
incurred over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by
the
number in the first table under the heading entitled Expenses Paid during
Period to estimate the expenses attributable to your investment during this
period.
Hypothetical
5% Return:
The second line of the table provides
information about hypothetical account values and hypothetical expenses based
on the Funds actual
expense ratio
and an assumed rate of return of 5% per year before expenses, which is not the
Funds actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending
account balance or expenses you paid for the
period.
You may use this information to compare ongoing costs of investing in the Fund
and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the
shareholder reports of the other funds.
The expenses shown in the
table are meant to highlight ongoing Fund costs only and do not reflect any
transaction costs, such as creation and redemption fees, or brokerage charges.
Therefore, the second table is useful in comparing ongoing costs only, and will
not help you determine the relative total costs of owning different funds. In
addition, if these costs were included, your costs would have been higher.
|
|
Beginning
|
|
Ending
|
|
|
|
Expenses Paid
|
|
|
|
Account
|
|
Account
|
|
|
|
During
|
|
|
|
Value
|
|
Value
|
|
Expense
|
|
Period(b)
|
|
|
|
5/7/08
|
|
6/30/08
|
|
Ratio(a)
|
|
5/7/08-6/30/08
|
|
Actual
|
|
$
|
1,000.00
|
|
$
|
840.40
|
|
0.55
|
%
|
$
|
0.74
|
|
Hypothetical
|
|
$
|
1,000.00
|
|
$
|
1,006.44
|
|
0.55
|
%
|
$
|
0.80
|
|
(a)
|
The
Cohen & Steers Global Realty Majors ETF commenced operations on
May 7, 2008. The Funds expenses have been annualized from the period
May 9, 2008 through June 30, 2008.
|
|
|
(b)
|
Expenses
are equal to the Funds annualized expense ratio multiplied by the average
account value over the period, multiplied by the number of days in the most
recent fiscal half year (53), then divided by 366.
|
6
ALPS ETF
Trust
|
SCHEDULE OF INVESTMENTS
|
|
June 30, 2008 (Unaudited)
|
Security Description
|
|
Shares
|
|
Value
|
|
|
|
|
|
|
|
COMMON STOCKS (97.6%)
|
|
|
|
|
|
Australia (9.9%)
|
|
|
|
|
|
CFS Retail Property Trust*
|
|
17,348
|
|
$
|
30,799
|
|
Dexus Property Group*
|
|
29,587
|
|
39,183
|
|
Goodman Group
|
|
16,298
|
|
48,329
|
|
GPT Group
|
|
20,229
|
|
43,096
|
|
Mirvac Group*
|
|
10,923
|
|
31,027
|
|
Stockland Trust Group
|
|
14,376
|
|
74,360
|
|
Westfield Group
|
|
9,946
|
|
155,387
|
|
|
|
|
|
422,181
|
|
Belgium (0.3%)
|
|
|
|
|
|
Confinimmo*
|
|
82
|
|
14,922
|
|
|
|
|
|
|
|
Bermuda (2.0%)
|
|
|
|
|
|
Hongkong Land Holdings, Ltd.
|
|
13,000
|
|
55,120
|
|
Kerry Properties, Ltd.
|
|
6,000
|
|
31,510
|
|
|
|
|
|
86,630
|
|
Canada (1.0%)
|
|
|
|
|
|
RioCan REIT*
|
|
2,194
|
|
42,948
|
|
|
|
|
|
|
|
France (5.3%)
|
|
|
|
|
|
Fonciere des Regions*
|
|
270
|
|
33,096
|
|
Klepierre*
|
|
810
|
|
40,838
|
|
Unibail-Rodamco
|
|
657
|
|
152,082
|
|
|
|
|
|
226,016
|
|
Germany (0.9%)
|
|
|
|
|
|
GAGFAH SA*
|
|
1,459
|
|
20,735
|
|
IVG Immobilien AG*
|
|
896
|
|
17,674
|
|
|
|
|
|
38,409
|
|
Great Britain (8.6%)
|
|
|
|
|
|
British Land Co., Plc
|
|
5,180
|
|
73,039
|
|
Brixton Plc*
|
|
2,386
|
|
11,420
|
|
Derwent London Plc*
|
|
776
|
|
15,567
|
|
Great Portland Estates Plc
|
|
2,229
|
|
15,005
|
|
Hammerson Plc
|
|
3,036
|
|
53,926
|
|
Land Securities Group Plc
|
|
4,780
|
|
117,199
|
|
Liberty International Plc*
|
|
2,818
|
|
48,343
|
|
Segro Plc
|
|
4,105
|
|
32,147
|
|
|
|
|
|
366,646
|
|
|
|
|
|
|
|
|
7
Security Description
|
|
Shares
|
|
Value
|
|
|
|
|
|
|
|
Hong Kong (8.6%)
|
|
|
|
|
|
Hang Lung Properties, Ltd.
|
|
19,000
|
|
$
|
60,917
|
|
Henderson Land Development Co., Ltd.
|
|
12,000
|
|
74,794
|
|
The Link REIT*
|
|
18,500
|
|
42,137
|
|
Sun Hung Kai Properties, Ltd.
|
|
9,000
|
|
122,117
|
|
The Wharf Holdings, Ltd.
|
|
16,000
|
|
66,996
|
|
|
|
|
|
366,961
|
|
Japan (13.5%)
|
|
|
|
|
|
Aeon Mall Co., Ltd.
|
|
1,100
|
|
32,583
|
|
Japan Real Estate Investment Corp.*
|
|
4
|
|
42,262
|
|
Japan Retail Fund Investment Corp.
|
|
3
|
|
17,320
|
|
Mitsubishi Estate Co., Ltd.
|
|
7,000
|
|
160,464
|
|
Mitsui Fudosan Co., Ltd.
|
|
7,000
|
|
149,899
|
|
Nippon Building Fund, Inc.*
|
|
4
|
|
47,168
|
|
Nomura Real Estate Office Fund, Inc.*
|
|
2
|
|
15,075
|
|
NTT Urban Development Corp.*
|
|
17
|
|
22,291
|
|
Sumitomo Realty & Development Co.,
Ltd.
|
|
4,000
|
|
79,619
|
|
Tokyo Tatemono Co., Ltd.
|
|
2,000
|
|
12,962
|
|
|
|
|
|
579,643
|
|
Netherlands (1.7%)
|
|
|
|
|
|
Corio N.V.*
|
|
526
|
|
41,130
|
|
Eurocommercial Properties N.V.*
|
|
272
|
|
12,972
|
|
Wereldhave N.V.*
|
|
178
|
|
18,776
|
|
|
|
|
|
72,878
|
|
Singapore (3.3%)
|
|
|
|
|
|
Ascendas Real Estate Investment Trust
|
|
6,000
|
|
9,760
|
|
CapitaLand, Ltd.
|
|
18,000
|
|
75,516
|
|
City Developments, Ltd.
|
|
7,000
|
|
55,953
|
|
|
|
|
|
141,229
|
|
Sweden (0.9%)
|
|
|
|
|
|
Castellum AB
|
|
1,500
|
|
14,338
|
|
Fabege AB*
|
|
1,400
|
|
9,379
|
|
Kungsleden AB
|
|
1,720
|
|
12,753
|
|
|
|
|
|
36,470
|
|
Switzerland (0.5%)
|
|
|
|
|
|
PSP Swiss Property AG*
|
|
394
|
|
23,479
|
|
|
|
|
|
|
|
United States (41.1%)
|
|
|
|
|
|
Alexandria Real Estate Equities, Inc.
|
|
336
|
|
32,706
|
|
AMB Property Corp.
|
|
1,036
|
|
52,194
|
|
|
|
|
|
|
|
|
8
Security Description
|
|
Shares
|
|
Value
|
|
|
|
|
|
|
|
United States (continued)
|
|
|
|
|
|
Apartment Investment and Management Co.
|
|
1,016
|
|
$
|
34,605
|
|
AvalonBay Communities, Inc.
|
|
808
|
|
72,041
|
|
Boston Properties, Inc.
|
|
1,222
|
|
110,249
|
|
Brookfield Properties Corp.
|
|
2,181
|
|
38,800
|
|
Camden Property Trust
|
|
612
|
|
27,087
|
|
Developers Diversified Realty Corp.
|
|
1,292
|
|
44,845
|
|
Duke Realty Corp.*
|
|
1,540
|
|
34,573
|
|
Equity Residential
|
|
2,782
|
|
106,467
|
|
Essex Property Trust, Inc.*
|
|
276
|
|
29,394
|
|
Federal Realty Investment Trust
|
|
562
|
|
38,778
|
|
General Growth Properties, Inc.
|
|
2,796
|
|
97,944
|
|
HCP, Inc.
|
|
2,410
|
|
76,662
|
|
Host Hotels & Resorts, Inc.
|
|
5,448
|
|
74,365
|
|
Kimco Realty Corp.
|
|
2,594
|
|
89,545
|
|
Liberty Property Trust*
|
|
988
|
|
32,752
|
|
The Macerich Co.
|
|
760
|
|
47,219
|
|
ProLogis
|
|
2,744
|
|
149,136
|
|
Public Storage
|
|
1,366
|
|
110,359
|
|
Regency Centers Corp.
|
|
730
|
|
43,158
|
|
Simon Property Group, Inc.
|
|
1,758
|
|
158,028
|
|
SL Green Realty Corp.
|
|
572
|
|
47,316
|
|
UDR, Inc.
|
|
1,452
|
|
32,496
|
|
Ventas, Inc.
|
|
1,442
|
|
61,386
|
|
Vornado Realty Trust
|
|
1,378
|
|
121,264
|
|
|
|
|
|
1,763,369
|
|
|
|
|
|
|
|
TOTAL COMMON STOCKS
|
|
|
|
|
|
(Cost $4,994,609)
|
|
|
|
4,181,781
|
|
|
|
|
|
|
|
TOTAL INVESTMENTS (97.6%)
|
|
|
|
|
|
(Cost $4,994,609)
|
|
|
|
4,181,781
|
|
|
|
|
|
|
|
NET OTHER ASSETS AND LIABILITIES (2.4%)
|
|
|
|
103,789
|
|
|
|
|
|
|
|
NET ASSETS (100.0%)
|
|
|
|
$
|
4,285,570
|
|
*
Non-income producing security.
Common Abbreviations:
|
AB
|
Aktiebolag
is the Swedish equivalent of the term corporation.
|
AG
|
Aktiengesellschaft
is a German term that refers to a corporation that is limited by shares,
i.e., owned by shareholders.
|
Ltd.
|
Limited
|
N.V.
|
Naamloze
Vennootchap is the Dutch term for a public limited liability corporation.
|
Plc
|
Public
Limited Co.
|
REIT
|
Real
Estate Investment Trust
|
|
SA Generally
designates corporations in various countries, mostly those employing the
civil law. This translates literally in all languages mentioned as anonymous
company.
|
See Notes
to Financial Statements.
9
ALPS ETF
Trust
|
STATEMENT OF ASSETS & LIABILITIES
|
|
June 30, 2008 (Unaudited)
|
ASSETS:
|
|
|
|
Investments, at value
|
|
$
|
4,181,781
|
|
Cash
|
|
64,996
|
|
Foreign currency, at value (Cost $60,912)
|
|
61,239
|
|
Receivable for investments sold
|
|
71,991
|
|
Foreign tax reclaims
|
|
88
|
|
Interest and dividends receivable
|
|
19,654
|
|
Total Assets
|
|
4,399,749
|
|
|
|
|
|
LIABIlITIES:
|
|
|
|
Payable for investments purchased
|
|
110,424
|
|
Payable to advisor
|
|
3,755
|
|
Total Liabilities
|
|
114,179
|
|
NET ASSETS
|
|
$
|
4,285,570
|
|
|
|
|
|
NET ASSETS CONSIST OF:
|
|
|
|
Paid-in capital
|
|
$
|
5,099,704
|
|
Undistributed net investment income
|
|
31,961
|
|
Accumulated net realized loss on
investments and foreign currency transactions
|
|
(33,506
|
)
|
Net unrealized depreciation on investments and
translation of assets and liabilities denominated in foreign currencies
|
|
(812,589
|
)
|
NET ASSETS
|
|
$
|
4,285,570
|
|
|
|
|
|
INVESTMENTS, AT COST
|
|
$
|
4,994,609
|
|
|
|
|
|
PRICING OF SHARES
|
|
|
|
Net Asset Value, offering and redemption
price per share
|
|
$
|
42.02
|
|
Net Assets
|
|
$
|
4,285,570
|
|
Shares of beneficial interest outstanding (Unlimited
number of shares authorized, par value $0.01 per share)
|
|
102,000
|
|
See Notes
to Financial Statements.
10
ALPS ETF
Trust
|
STATEMENT OF OPERATIONS
|
|
|
For the Period
|
|
|
|
May 7, 2008(a) through
|
|
|
|
June 30, 2008
|
|
|
|
(Unaudited)
|
|
INVESTMENT INCOME:
|
|
|
|
Dividends (b)
|
|
$
|
35,718
|
|
Total Investment Income
|
|
35,718
|
|
|
|
|
|
EXPENSES:
|
|
|
|
Investment advisory fee
|
|
3,757
|
|
Total net expenses
|
|
3,757
|
|
NET INVESTMENT INCOME:
|
|
31,961
|
|
|
|
|
|
Net realized loss on investments
|
|
(31,480
|
)
|
Net realized loss on foreign currency
transactions
|
|
(2,026
|
)
|
Net change in unrealized depreciation on
investments
|
|
(812,828
|
)
|
|
|
|
|
Net change in unrealized appreciation on
translation
of
assets and liabilities in foreign currencies
|
|
239
|
|
NET REALIZED AND UNREALIZED LOSS ON
INVESTMENTS
|
|
(846,095
|
)
|
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS
|
|
$
|
(814,134
|
)
|
(a)
|
Inception
date.
|
(b)
|
Net of
foreign withholding tax of $902.
|
See Notes
to Financial Statements.
11
ALPS
ETF Trust
|
STATEMENT OF CHANGES IN NET ASSETS
|
|
|
For the Period
|
|
|
|
May 7, 2008
(a)
through
|
|
|
|
June 30, 2008
|
|
|
|
(Unaudited)
|
|
OPERATIONS:
|
|
|
|
Net investment income
|
|
$
|
31,961
|
|
Net realized loss on investments
|
|
(31,480
|
)
|
Net realized loss on foreign currency
transactions
|
|
(2,026
|
)
|
Net change in unrealized depreciation on
investments and foreign currency
|
|
(812,589
|
)
|
Net decrease in net assets resulting from
operations
|
|
(814,134
|
)
|
|
|
|
|
SHARE TRANSACTIONS:
|
|
|
|
Proceeds from sale of shares
|
|
4,999,704
|
|
Net increase from share transactions
|
|
4,999,704
|
|
Net increase in net assets
|
|
4,185,570
|
|
|
|
|
|
NET ASSETS:
|
|
|
|
Beginning of period
|
|
100,000
|
|
End of period (including undistributed net
investment income of $31,961)
|
|
$
|
4,285,570
|
|
|
|
|
|
Other Information:
|
|
|
|
SHARE TRANSACTIONS:
|
|
|
|
Beginning Shares
|
|
2,000
|
|
Sold
|
|
100,000
|
|
Net increase in shares outstanding
|
|
102,000
|
|
See Notes to Financial Statements.
12
ALPS
ETF TRUST
|
|
FINANCIAL HIGHLIGHTS
|
For a Share Outstanding Throughout
the Period Presented
|
|
For the Period
|
|
|
|
May 7, 2008(a) through
|
|
|
|
June 30, 2008
|
|
|
|
(Unaudited)
|
|
NET ASSET VALUE, BEGINNING OF PERIOD
|
|
$
|
50.00
|
|
|
|
|
|
INCOME/(LOSS) FROM OPERATIONS:
|
|
|
|
Net investment income
|
|
0.31
|
|
Net realized and unrealized loss on investments
|
|
(8.29
|
)
|
Total from Investment Operations
|
|
(7.98
|
)
|
|
|
|
|
NET DECREASE IN NET ASSET VALUE
|
|
(7.98
|
)
|
NET ASSET VALUE, END OF PERIOD
|
|
$
|
42.02
|
|
TOTAL RETURN
|
|
(15.96
|
)%(b)
|
|
|
|
|
RATIOS/ SUPPLEMENTAL DATA:
|
|
|
|
Net assets, end of period (in 000s)
|
|
$
|
4,286
|
|
|
|
|
|
RATIOS TO AVERAGE NET ASSETS:
|
|
|
|
Net investment income including
reimbursement/waiver
|
|
5.25
|
%(c)
|
Operating expenses including
reimbursement/waiver
|
|
0.55
|
%(c)
|
Operating expenses excluding
reimbursement/waiver
|
|
0.55
|
%(c)
|
PORTFOLIO TURNOVER RATE
|
|
16.55
|
%(d)
|
(a)
|
Inception
date.
|
(b)
|
Total
return is calculated assuming an initial investment made at the net asset
value at the beginning of the period and redemption at the net asset value on
the last day of the period. The return presented does not reflect the
deduction of taxes that a shareholder would pay on Fund distributions or the
redemption or sale of Fund shares. Total return calculated for a period of
less than one year is not annualized.
|
(c)
|
Annualized.
|
(d)
|
Portfolio
turnover is not annualized and does not include securities received or
delivered from processing creations or redemptions.
|
See Notes
to Financial Statements.
13
ALPS ETF
Trust
|
NOTES
TO FINANCIAL STATEMENTS
|
(Unaudited)
1.
ORGANIZATION
The ALPS ETF Trust (the
Trust) is an investment company organized as a Delaware statutory trust on September 13,
2007 and is registered with the Securities and Exchange Commission (SEC)
under the Investment Company Act of 1940, as amended (the 1940 Act). The
Trust consists of one separate ETF, the Fund, which commenced operations on May 7,
2008.
The Funds Shares are listed
on the American Stock Exchange (AMEX). Unlike conventional mutual funds, the
Fund issues and redeems Shares on a continuous basis, at NAV, only in large
specified blocks of 50,000 Shares, each of which is called a Creation Unit.
Creation Units are issued and redeemed principally in-kind for securities
included in a specified index. Except when aggregated in Creation Units, Shares
are not redeemable securities of the Fund. The investment objective of the Fund
is to seek investment results that correspond generally to the price and yield
(before the Funds fees and expenses) of the Cohen & Steers Global
Realty Majors Index.
2.
SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of the financial statements. The preparation of the financial
statements in accordance with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions
that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those
estimates.
A. Portfolio Valuation
The Funds NAV is determined
daily, as of the close of regular trading on the New York Stock Exchange
(NYSE), normally 4:00 p.m. Eastern time, on each day the NYSE is open
for trading. The NAV is computed by dividing the value of all assets of the
Fund (including accrued interest and dividends), less all liabilities
(including accrued expenses and dividends declared but unpaid), by the total
number of shares outstanding.
The Funds investments are
valued at market value or, in the absence of market value with respect to any
portfolio securities, at fair value according to procedures adopted by the
Trusts Board of Trustees. Portfolio securities listed on any exchange other
than the NASDAQ Stock Market, Inc. (NASDAQ) are valued at the last sale
price on the business day as of which such value is being determined. If there
has been no sale on such day, the securities are valued at the mean of the most
recent bid and asked prices on such day. Securities traded on the NASDAQ are
valued at the NASDAQ Official Closing Price as determined by NASDAQ. Portfolio
securities traded on more than
14
ALPS ETF
Trust
|
NOTES
TO FINANCIAL STATEMENTS
|
(Unaudited)
one securities exchange are
valued at the last sale price on the business day as of which such value is
being determined at the close of the exchange representing the principal market
for such securities. Portfolio securities traded in the over-the-counter
market, but excluding securities traded on the NASDAQ, are valued at the
closing bid prices. Short-term investments that mature in less than 60 days are
valued at amortized cost.
Certain securities may not be
able to be priced by pre-established pricing methods. Such securities may be
valued by the Board of Trustees or its delegate at fair value. These securities
generally include, but are not limited to, restricted securities (securities
which may not be publicly sold without registration under the Securities Act of
1933) for which a pricing service is unable to provide a market price;
securities whose trading has been formally suspended; a security whose market
price is not available from a pre-established pricing source; a security with
respect to which an event has occurred that is most likely to materially affect
the value of the security after the market has closed but before the
calculation of the Funds NAV or make it difficult or impossible to obtain a
reliable market quotation; and a security whose price, as provided by the
pricing service, does not reflect the securitys fair value. As a general
principle, the current fair value of a security would appear to be the amount
which the owner might reasonably expect to receive from the closing sale prices
on the applicable exchange and fair value prices may not reflect the actual
value of a security. A variety of factors may be considered in determining the
fair value of such securities.
Valuing the Funds securities
using fair value pricing will result in using prices for those securities that
may differ from current market valuations. Use of fair value prices and certain
market valuations could result in a difference between the prices used to
calculate a Funds NAV and the prices used by the Index, which, in turn, could
result in a difference between a Funds performance and the performance of the
Index.
B. Foreign Currency Translation and Foreign Investments
The accounting records of the
Fund are maintained in U.S. dollars. Portfolio securities and other assets and
liabilities denominated in a foreign currency are translated to U.S. dollars at
the prevailing rates of exchange at period end. Amounts related to the
purchases and sales of securities and investment income are translated into
U.S. dollars at the prevailing exchange rate on the respective dates of
transactions. The effects of changes in foreign currency exchange rates on
portfolio investments are included in the net realized and unrealized gains and
losses on investments. Net gains and losses on foreign currency transactions
include disposition of foreign currencies, and currency gains and losses
between the accrual and receipt dates of portfolio investment income and
between the trade and settlement dates of portfolio investment transactions.
C. Securities Transactions and Investment Income
Securities transactions are
recorded as of the trade date. Realized gains and
15
ALPS ETF
Trust
|
NOTES
TO FINANCIAL STATEMENTS
|
(Unaudited)
losses from securities
transactions are recorded on the identified cost basis. Dividend income is
recorded on the ex-dividend date. Interest income, if any, is recorded on the
accrual basis.
D. Dividends and Distributions to Shareholders
Dividends from net investment
income of the Fund, if any, are declared and paid annually or as the Board of
Trustees may determine from time to time. Distributions of net realized capital
gains earned by the Fund, if any, are distributed at least annually.
Distributions from income and
capital gains are determined in accordance with income tax regulations, which
may differ from accounting principles generally accepted in the United States
of America. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Fund, timing
differences and differing characterization of distributions made by the Fund.
There were no distributions
paid during the period ended June 30, 2008.
As of June 30, 2008, the
components of distributable earnings on a tax basis for the Fund were as
follows:
Undistributed net investment income
|
|
$
|
31,961
|
|
Accumulated net realized loss on
investments and foreign currencies
|
|
(33,506
|
)
|
Net unrealized depreciation on investments
and translation of assets and liabilities denominated in foreign currencies
|
|
(811,420
|
)
|
Total
|
|
$
|
(812,965
|
)
|
E. Income Taxes
The Fund intends to qualify
as a regulated investment company by complying with the requirements under
Subchapter M of the Internal Revenue Code of 1986, as amended, by distributing
substantially all of its net investment income and net realized gains to
shareholders. Accordingly, no provision has been made for federal and state
income taxes.
In June 2006, Financial
Accounting Standards Board Interpretation No. 48, Accounting for
Uncertainty in Income Taxes an interpretation of FASB 109 (FIN 48) was
issued and is effective for fiscal years beginning after December 15,
2006. This interpretation prescribes a minimum threshold for financial
statement recognition of the benefit of a tax position taken or expected to be
taken in a tax return. As of June 30, 2008, management has evaluated the
application of FIN 48 to the Fund, and has determined that there is no material
impact resulting from the adoption of this interpretation on the Funds
financial statements.
16
ALPS ETF
Trust
|
NOTES
TO FINANCIAL STATEMENTS
|
(Unaudited)
F. New Accounting Pronouncements
In March, 2008, Statement of
Financial Accounting Standards No. 161, Disclosures about Derivative
Instruments and Hedging Activities (SFAS 161) was issued and is effective
for fiscal years and interim periods beginning after November 15, 2008.
SFAS 161 requires enhanced disclosures about Funds derivative and hedging
activities. Management is currently evaluating the impact, if any, the adoption
of SFAS 161 will have on the Funds financial statement disclosure.
G. Fair Value Measurements
The Fund has adopted
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157, Fair Value Measurements (FAS 157). FAS 157 defines
fair value, establishes a three-tier hierarchy to measure fair value based on
the extent of use of observable inputs as compared to unobservable inputs
for disclosure purposes and requires additional disclosures about these
valuations measurements. Inputs refer broadly to the assumptions that market
participants would use in pricing a security. Observable inputs are inputs that
reflect the assumptions market participants would use in pricing the security
developed based on market data obtained from sources independent of the
reporting entity. Unobservable inputs are inputs that reflect the reporting
entitys own assumptions about the assumptions market participants would use in
pricing the security developed based on the best information available in the
circumstances.
The three-tier hierarchy is
summarized as follows:
1)
Level 1 quoted prices in active markets for
identical securities
2)
Level 2 other significant observable inputs
(including quoted prices for similar securities, interest rates, prepayment
speeds, credit risk, etc.)
3)
Level 3 significant unobservable inputs
(including the Funds own assumptions in determining the fair value of
investments)
The following is a summary of
the inputs used as of June 30, 2008 in valuing the Funds assets:
|
|
|
|
Other Financial
|
|
|
|
|
|
Instruments*
|
|
|
|
|
|
- Unrealized
|
|
|
|
Investments in
|
|
Appreciation
|
|
Valuation
Inputs
|
|
Securities
at Value
|
|
(Depreciation)
|
|
Level 1 - Quoted Prices
|
|
$
|
4,181,781
|
|
$
|
|
|
|
|
|
|
|
|
Level 2 - Other
Significant Observable Inputs
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
Level 3 - Significant
Unobservable Inputs
|
|
$
|
|
|
$
|
|
|
Total
|
|
$
|
4,181,781
|
|
$
|
|
|
* Other
financial instruments include futures, forwards and swap contracts
17
ALPS ETF
Trust
|
NOTES
TO FINANCIAL STATEMENTS
|
(Unaudited)
All securities of the Fund
were valued using either Level 1 or Level 2 inputs during the period ended June 30,
2008. Thus a reconciliation of assets in which significant unobservable inputs
(Level 3) were used is not applicable for the Fund.
3.
INVESTMENT ADVISORY FEE AND OTHER AFFILIATED
TRANSACTIONS
ALPS Advisers, Inc. (the
Investment Adviser) acts as the Funds investment adviser pursuant to an
advisory agreement with the Trust on behalf of the Fund (the Advisory
Agreement). Pursuant to the Advisory Agreement, the Fund pays the Investment
Adviser a unitary fee for the services and facilities it provides payable on a
monthly basis at the annual rate of 0.55% of the Funds average daily net
assets. From time to time, the Investment Adviser may waive all or a portion of
its fee.
Out of the unitary management
fee, the Investment Adviser pays substantially all expenses of the Fund,
including the fees of the Sub-Adviser, the licensing fee of the Index provider,
and the cost of transfer agency, custody, fund administration, legal, audit and
other services, except for interest expenses, distribution fees or expenses,
brokerage expenses, taxes and extraordinary expenses not incurred in the
ordinary course of the Funds business.
The Investment Advisers
unitary management fee is designed to pay substantially all of the Funds
expenses and to compensate the Investment Adviser for providing services for
the Fund.
Mellon Capital Management
Corporation acts as the Funds sub-adviser (the Sub-Adviser) pursuant to a
sub-advisory agreement with the Investment
Adviser
(the Sub-Advisory Agreement).
According to this agreement, the
Investment
Adviser pays the Sub-Adviser on a monthly basis, an annual rate of 0.10% of the
Funds average daily net assets. The Investment Adviser will pay the
Sub-Adviser a minimum of $62,500 per year after the Funds first year of
operations and a
minimum of
$125,000 per year after the Funds second year of operations.
ALPS Fund Services, Inc.
(ALPS) is the administrator of the Fund.
The Bank of New York Mellon
is the custodian, fund accounting agent and transfer agent for the Fund.
Each Trustee who is not an
officer or employee of ALPS Advisers, Inc., any
sub-adviser or any of their affiliates (Independent
Trustees) is paid a quarterly retainer of $3,500 and $1,500 for each Board
meeting attended.
18
ALPS ETF
Trust
|
NOTES
TO FINANCIAL STATEMENTS
|
(Unaudited)
4.
PURCHASES AND SALES OF SECURITIES
For the period ended June 30,
2008, the cost of purchases and proceeds from sales of investment securities,
excluding short-term investments and in-kind transactions, were as follows:
|
|
Purchases
|
|
Sales
|
|
Cohen & Steers Global Realty
Majors ETF
|
|
$
|
762,136
|
|
$
|
735,743
|
|
|
|
|
|
|
|
|
|
For the period ended June 30,
2008, the cost of in-kind purchases and proceeds from in-kind sales were as
follows:
|
|
Purchases
|
|
Sales
|
|
Cohen & Steers Global Realty
Majors ETF
|
|
$
|
4,999,697
|
|
$
|
|
|
|
|
|
|
|
|
|
|
Gains on in-kind transactions
are not considered taxable for federal income tax purposes.
As of June 30, 2008, the
costs of investments for federal income tax purposes and accumulated net
unrealized appreciation/(depreciation) on investments were as follows:
Gross Appreciation (excess of value over
tax cost)
|
|
$
|
18,580
|
|
Gross Depreciation (excess of tax cost over
value)
|
|
(830,000
|
)
|
Net unrealized depreciation
|
|
(811,420
|
)
|
|
|
|
|
Cost of investment for income tax purposes
|
|
$
|
4,993,201
|
|
5.
CREATIONS, REDEMPTIONS AND TRANSACTION FEES
The Fund issues and redeems
Shares at NAV only in large blocks of 50,000 Shares (each block of 50,000
Shares is called a Creation Unit) or multiples thereof. As a practical
matter, only broker-dealers or large institutional investors with creation and
redemption agreements called Authorized Participants (APs) can
purchase or redeem these Creation Units.
Purchasers of Creation Units at NAV must pay a standard Creation Transaction
Fee of $1,500 per transaction. The value of a Creation unit as of first
creation was approximately $2,500,000. An AP who
holds Creation Units and wishes to redeem at NAV would also
pay a standard Redemption Transaction Fee of $1,500 per transaction. If a
Creation Unit is purchased or redeemed for cash, a variable fee of up to four
times the standard Creation or Redemption Transaction Fee may be charged to the
AP making the transaction.
The creation fee, redemption
fee and variable fee are not expenses of the Fund and do not impact the Funds
expense ratio.
19
ALPS ETF
Trust
|
ADDITIONAL INFORMATION
|
(Unaudited)
PROXY VOTING
POLICIES AND PROCEDURES
A description of the policies
and procedures that the Fund uses to determine how to vote proxies and
information on how the Fund voted proxies relating to portfolio securities
during the period ending June 30, 2008 is available (1) without
charge, upon request, by calling (866) 513-5856; (2) on the Trusts
website located at http://www.alpsetfs.com; and (3) on the SECs website
at http://www.sec.gov.
PORTFOLIO
HOLDINGS
The Trust will file its
complete schedule of portfolio holdings with the SEC for the first and third
quarters of each fiscal year on Form N-Q beginning with the September 30,
2008 holdings. The Trusts Form N-Q will be available (1) by calling
(866) 513-5856; (2) on the Trusts website located at
http://www.alpsetfs.com; (3) on the SECs website at http://www.sec.gov;
and (4) for review and copying at the SECs Public Reference Room (PRR)
in Washington D.C. Information regarding the operation of the PRR may be
obtained by calling (800) SEC-0330.
ADVISORY
CONTRACT APPROVAL
At an in-person meeting held
on March 26, 2008, The Board of Trustees of the Trust, including the
Independent Trustees, evaluated proposals to approve the Advisory Agreement
between the Trust and the Investment Adviser with respect to the Fund. The
Trustees who are not interested persons of the Trust within the meaning of
the 1940 Act, as amended (the Independent Trustees) also met separately with
their independent legal counsel to consider the Agreement.
In evaluating the Advisory
Agreement, the Board drew on materials provided to them by the Investment
Adviser, The Bank of New York Mellon, the Trusts Transfer Agent and Custodian,
and ALPS Fund Services, Inc., the Trusts Administrator. In
deciding whether to approve the Advisory
Agreement, the Board considered various factors, including (i) the nature,
extent and quality of the services expected to be provided by the Investment
Adviser with respect to the Fund under the Advisory Agreement, (ii) costs
to the Investment Adviser of its services; and (iii) the extent to which
economies of scale would be realized if and as the Fund grows and whether the
fee level in the Advisory Agreement reflects these economies of scale.
The Board considered the
nature, extent and quality of services to be provided by the Adviser. The Board
reviewed the Advisory Agreement and the Investment
Advisers anticipated responsibilities for managing
investment operations of the Fund, in accordance with the Funds investment
objective and policies, and applicable legal and regulatory requirements. The
Board considered the background and experience of the Investment Advisers
senior management, including those
20
individuals responsible for
the portfolio management and compliance of the Fund. It also considered the
efforts expended by ALPS in organizing the Trust and making arrangements for
entities to provide services to the Fund. Since the Fund is newly organized,
the Board did not consider investment performance of the Fund, but the Board
did consider performance of the applicable index for the Fund. The Board
concluded it was comfortable that the Investment Adviser had the capabilities
and resources to oversee the operations of the Fund, including services to be
provided by other service providers.
The Board considered whether
the Investment Adviser benefited in other ways from its relationship with the
Trust, noting that the Investment Adviser does not maintain soft-dollar
arrangements in connection with the Trusts brokerage transactions. The Board
concluded that, to the extent that the Investment Adviser derives other
benefits from its relationship with the Trust, those benefits are not so
significant as to cause the Investment Advisers fees with respect to the Fund
to be excessive.
The Board determined that the
Investment Adviser is likely to realize economies of scale in managing the Fund
as assets grow in size. However, the Board intends to continue to monitor fees
as the Fund grows in size and assess whether fee breakpoints may be warranted.
The Board evaluated the
Funds unitary fee through the review of comparative information with respect
to fees paid by similar funds i.e., ETFs tracking real estate equity indexes.
The Board reviewed the universe of similar ETFs for the Fund based upon data
from Lipper Analytical Services and related comparative information for similar
ETFs. The Board considered limitations of the universe, notably the small
number of ETFs in the universe and the fact that many were recently launched.
The Board used a fund-by-fund analysis of the data and concluded, based on the
information presented, that the Fund fees were fair and reasonable in light of
those of its direct competitors.
The Boards conclusions
regarding the Advisory Agreement, including the
independent Trustees voting separately, were as follows: (a) the
nature and extent of the services expected to be provided by the Investment
Adviser with respect
to the Fund
were appropriate; (b) the Investment Advisers fees for the Fund and
the unitary fee, considered in relation to
the services expected to be provided,
were
fair and reasonable; and (c) any additional benefits to the Investment
Adviser were not of a magnitude to
materially affect the Boards conclusions.
At the same in person
meeting, the Board also evaluated the proposal to approve the Sub-Advisory
Agreement among the Investment Adviser, the Trust and
21
the Sub-Adviser with respect
to the Fund. In deciding whether to approve the Sub-Advisory Agreement, the
Board considered various factors, including (i) the nature, extent and
quality of the services expected to be provided by the Sub-Adviser with respect
to the Fund under the Sub-Advisory Agreement, (ii) the fees charged by the
Sub-Adviser and any additional benefits received by the
Sub-Adviser due to its relationship with
the Investment Adviser and the Trust;
and
(iii) the extent to which economies of scale would be realized if and as
the Fund grows and whether the fee levels in the Sub-Advisory Agreement reflect
these economies of scale.
The Board considered, among
other matters, the background and experience of the Sub-Advisers senior
management and in particular the Sub-Advisers experience in investing in
global real estate securities. The Board evaluated the Sub-Advisers proposed
fee and determined that the Sub-Adviser is likely to realize economies of scale
in managing the Fund as assets grow in size. The Board determined that such
economies of scale are shared with the Fund by way of the relatively low
advisory/sub-advisory fees and unitary fee structure of the Fund, although the
Board intends to continue to monitor fees as the Fund grows in size and assess
whether fee breakpoints may be warranted.
The Boards conclusions in
approving the Sub-Advisory Agreement, including the independent Trustees voting
separately, were as follows: (a) the nature and extent of the services
expected to be provided by the Sub-Adviser to the Fund were appropriate; (b) the
Sub-Advisers fees for the Fund and the unitary fee, considered in relation to
the services provided, were fair and reasonable; (c) any additional
benefits to the Sub-Adviser were not of a magnitude to materially affect the
Boards conclusions; and (d) the fees expected to be paid to the Sub-Adviser
adequately shared the economies of scale with the Fund.
22
RISK
CONSIDERATIONS
You should consider the Funds investment objective, risks and charges
carefully before investing. You can download the Funds prospectus at
http://www.alpsetfs.com or contact ALPS Distributors, Inc. at
1-866-513-5856 to request a prospectus, which contains this and other
information about the Fund. Read it carefully before you invest. ALPS
Distributors, Inc. is the distributor of the Cohen & Steers
Global Realty Majors ETF.
The Funds shares will change
in value, and you could lose money by investing in the Fund. An investment in the Fund involves risks
similar to those of investing in any fund of equity securities traded on an
exchange. Investors buying or selling Fund shares on the secondary market may
incur brokerage commissions. In addition, investors who sell Fund shares may
receive less than the shares net asset value. Unlike shares of open-ended
funds, investors are generally not able to
purchase
ETF shares directly from the Fund and individual ETF shares are not redeemable.
However, specified large blocks of shares called creation units can be
purchased from, or redeemed to, the Fund.
You should anticipate that
the value of the Funds shares will decline, more or less, in correlation with
any decline in the value of its corresponding Index.
The Funds return may not
match the return of its corresponding Index for a number of reasons. For
example, the Fund incurs operating expenses not applicable to its corresponding
Index, and may incur costs in buying and selling securities, especially when
rebalancing the Funds portfolio holdings to reflect changes in composition of
its corresponding Index. In addition the Funds portfolio holdings may not
exactly replicate the securities included in its corresponding Index or the
ratios between the securities included in such Index.
The Fund is exposed to
additional market risk due to its policy of investing principally in the securities
included in its corresponding Index. As a result of this policy, securities
held by the Fund will generally not be bought or sold in response to market
fluctuations and the securities may be issued by companies concentrated in a
particular industry. Therefore, the Fund will generally not sell a stock
because the stocks issuer is in financial trouble, unless that stock is
removed or is anticipated to be removed from the Funds Index.
The Fund relies on a license
and related sublicense that permits it to use its
corresponding Index and associated trade names and trademarks
in connection with the name and investment strategies of the Fund. Such license
and related
23
sublicense may be terminated
by the Index provider and, as a result, the Fund may lose its ability to use
such intellectual property. In the event the license is terminated or the index
provider does not have rights to license such intellectual property, it may
have a significant effect on the operation of the Fund.
The value of an individual
security or particular type of security can be more volatile than the market as
a whole and can perform differently from the value of the market as a whole.
The Fund is not actively
managed. The Fund may be affected by a general decline in certain market
segments relating to its Index. The Fund invests in securities included in, or
representative of, its index regardless of such investments merit. The Fund
does not attempt to take defensive positions in declining markets.
The Fund invests in
securities of foreign companies and, therefore, is subject to certain risks
associated with possible adverse economic, political and social occurrences
outside of the United States of America.
The Funds NAV is determined
on the basis of the U.S. dollar. You may lose money if the local currency of a
foreign market depreciates against the U.S. dollar, even if the local currency
value of the Funds holdings goes up.
The Fund invests in
securities of non-U.S. issuers. Investing in securities of non-U.S. issuers,
which are generally denominated in non-U.S. currencies, may involve certain
risks not typically associated with investing in securities of U.S. issuers
such as there being less publicly available information about non-U.S. issuers
or markets and non-U.S. markets being less smaller, less liquid and more
volatile than the U.S. market. These risks may be more pronounced to the extent
that the Fund invests a significant amount of its assets in companies located in
one region.
The Fund invests in companies
that are considered to be passive foreign investment companies and could be
subject to U.S. federal income tax and additional interest charges on gains and
certain distributions with respect to those equity interests.
The Fund invests in companies
in the real estate industry, including real estate investment trusts and is
subject to the risks associated with investing in real estate such as possible
declines in the value of real estate, adverse general and local economic
conditions and changes in interest rates and environmental problems.
24
Item
2.
Code of
Ethics.
Not Applicable to this Report.
Item
3.
Audit
Committee Financial Expert.
Not
Applicable to this Report.
Item
4.
Principal
Accountant Fees and Services.
Not
Applicable to this Report.
Item
5.
Audit
Committee of Listed Registrants.
Not
applicable.
Item
6.
Schedule
of Investments.
Schedule
of Investments is included as part of the Report to Stockholders filed under
Item 1 of this form.
Item 7.
Disclosure
of Proxy Voting Policies and Procedures for Closed-End Management Investment
Companies.
Not
applicable.
Item 8.
Portfolio
Managers of Closed-End Management Investment Companies.
Not
applicable.
2
Item 9.
Purchases
of Equity Securities by Closed-End Management Investment Company and Affiliated
Purchasers.
Not
applicable.
Item
10.
Submission
of Matters to Vote of Security Holders.
No
material changes to the procedures by which the shareholders may recommend
nominees to the Registrants Board of Trustees have been implemented after the
Registrants last provided disclosure in response to the requirements of Item
407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item
22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item
.
Item
11.
Controls
and Procedures.
(a)
The Registrants principal executive and
principal financial officers, or persons performing similar functions, have
concluded that the Registrants disclosure controls and procedures (as defined
in Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the 1940 Act) (17 CFR 270.30a-3(c))) are effective, as of a date within 90
days of the filing date of the report that includes the disclosure required by
this paragraph, based on their evaluation of these controls and procedures
required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b))
and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange
Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b)
No
changes in the Registrants internal control over financial reporting (as
defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))
occurred during the Registrants second fiscal quarter of the period covered by
this report that have materially affected, or are reasonably likely to
materially affect, the Registrants internal control over financial reporting.
Item
12.
Exhibits.
(a)(1)
Not Applicable
to this Report.
(a)(2)
The
certifications required by Rule 30a-2(a) of the Investment Company
Act of 1940, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002
are attached hereto as Ex99.Cert.
(a)(3)
Not applicable.
(b)
The
certifications by the Registrants Principal Executive Officer and Principal
Financial Officer, as required by Rule 30a-2(b) of the Investment
Company Act of 1940, as amended, and Section 906 of the Sarbanes-Oxley Act
of 2002 are attached hereto as Ex99.906Cert.
3
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.
ALPS
ETF TRUST
|
|
By:
|
/s/
Thomas A. Carter
|
|
|
Thomas
A. Carter (Principal Executive Officer)
|
|
President
|
|
|
Date:
|
September 8,
2008
|
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/
Thomas A. Carter
|
|
|
Thomas
A. Carter (Principal Executive Officer)
|
|
President
|
|
|
Date:
|
September 8,
2008
|
By:
|
/s/
Kimberly R. Storms
|
|
|
Kimberly
R. Storms (Principal Financial Officer)
|
|
Treasurer
|
|
|
Date:
|
September 8,
2008
|
4
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