LEGG MASON SMALL-CAP QUALITY VALUE ETF

Schedule of investments (unaudited) April 30, 2020

SECURITY	SHARES		VALUE
COMMON STOCKS - 99.8%
COMMUNICATION SERVICES - 3.1%
Entertainment - 0.4%
Sciplay Corp., Class A Shares		3,505	$	36,978	*
Interactive Media & Services - 1.3%
Eventbrite Inc., Class A Shares		2,834		25,846	*
Travelzoo		2,050		11,419	*
TripAdvisor Inc.		3,435		68,597
TrueCar Inc.		12,756		32,655	*
Total Interactive Media & Services				138,517
Media - 1.4%
AMC Networks Inc., Class A Shares		2,019		48,153	*
MSG Networks Inc., Class A Shares		3,074		36,519	*
National CineMedia Inc.		9,462		31,225
Tribune Publishing Co.		3,862		33,097
Total Media				148,994
TOTAL COMMUNICATION SERVICES				324,489
CONSUMER DISCRETIONARY - 11.3%
Auto Components - 0.3%
Superior Industries International Inc.		24,760		34,911
Diversified Consumer Services - 1.3%
American Public Education Inc.		1,473		37,959	*
Collectors Universe Inc.		1,316		28,912
Houghton Mifflin Harcourt Co.		9,743		15,589	*
K12 Inc.		2,236		50,780	*
Total Diversified Consumer Services				133,240
Hotels, Restaurants & Leisure - 1.0%
Cheesecake Factory Inc.		1,865		41,571
Hilton Grand Vacations Inc.		2,025		41,715	*
Ruth’s Hospitality Group Inc.		2,420		27,237
Total Hotels, Restaurants & Leisure				110,523
Household Durables - 2.3%
Ethan Allen Interiors Inc.		3,641		41,180
iRobot Corp.		1,008		61,448	*
La-Z-Boy Inc.		1,953		45,798
Meritage Homes Corp.		952		50,037	*
Sonos Inc.		3,783		38,662	*
Total Household Durables				237,125
Internet & Direct Marketing Retail - 1.2%
PetMed Express Inc.		1,362		53,894

See Notes to Schedule of Investments.

Legg Mason Small-Cap Quality Value ETF 2020 Quarterly Report       1

LEGG MASON SMALL-CAP QUALITY VALUE ETF

Schedule of investments (unaudited) (cont’d) April 30, 2020

SECURITY	SHARES		VALUE
Internet & Direct Marketing Retail - (continued)
Revolve Group Inc.		2,336	$	25,673	*
Shutterstock Inc.		1,293		49,134
Total Internet & Direct Marketing Retail				128,701
Leisure Products - 0.3%
Malibu Boats Inc., Class A Shares		1,044		35,893	*
Multiline Retail - 0.4%
Dillard’s Inc., Class A Shares		1,305		38,471
Specialty Retail - 3.9%
American Eagle Outfitters Inc.		6,243		49,632
Buckle Inc.		2,911		44,567
Michaels Cos. Inc.		16,355		49,719	*
Rent-A-Center Inc.		2,644		52,629
Sally Beauty Holdings Inc.		4,298		41,734	*
Shoe Carnival Inc.		1,409		33,281
Sleep Number Corp.		947		28,315	*
Urban Outfitters Inc.		3,377		58,557	*
Winmark Corp.		115		17,250
Zumiez Inc.		1,742		36,826	*
Total Specialty Retail				412,510
Textiles, Apparel & Luxury Goods - 0.6%
Culp Inc.		4,039		28,717
Kontoor Brands Inc.		1,619		31,425
Total Textiles, Apparel & Luxury Goods				60,142
TOTAL CONSUMER DISCRETIONARY				1,191,516
CONSUMER STAPLES - 3.0%
Beverages - 0.6%
National Beverage Corp.		1,137		57,112	*
Food Products - 0.4%
Seneca Foods Corp., Class A Shares		1,176		42,313	*
Household Products - 0.3%
Oil-Dri Corp. of America		929		34,735
Personal Products - 1.1%
BellRing Brands Inc., Class A Shares		2,124		37,234	*
Lifevantage Corp.		1,832		28,396	*
USANA Health Sciences Inc.		584		52,104	*
Total Personal Products				117,734
Tobacco - 0.6%
Vector Group Ltd.		5,799		62,049
TOTAL CONSUMER STAPLES				313,943

See Notes to Schedule of Investments.

  2     Legg Mason Small-Cap Quality Value ETF 2020 Quarterly Report

LEGG MASON SMALL-CAP QUALITY VALUE ETF

Schedule of investments (unaudited) (cont’d) April 30, 2020

SECURITY	SHARES		VALUE
ENERGY - 8.2%
Energy Equipment & Services - 4.2%
Cactus Inc., Class A Shares		2,744	$	48,788
Era Group Inc.		4,380		22,426	*
ION Geophysical Corp.		12,181		24,606	*
Liberty Oilfield Services Inc., Class A Shares		13,375		63,130
Matrix Service Co.		3,168		33,074	*
NexTier Oilfield Solutions Inc.		21,211		49,209	*
Patterson-UTI Energy Inc.		25,615		94,519
Select Energy Services Inc., Class A Shares		11,349		54,475	*
Smart Sand Inc.		24,406		20,257	*
Solaris Oilfield Infrastructure Inc., Class A Shares		4,744		32,449
Total Energy Equipment & Services				442,933
Oil, Gas & Consumable Fuels - 4.0%
Arch Coal Inc., Class A Shares		1,481		43,231
Bonanza Creek Energy Inc.		3,566		62,262	*
CONSOL Energy Inc.		9,541		72,416	*
CVR Energy Inc.		3,814		90,964
Falcon Minerals Corp.		17,749		43,396
NACCO Industries Inc., Class A Shares		966		33,955
Peabody Energy Corp.		21,466		72,770
Total Oil, Gas & Consumable Fuels				418,994
TOTAL ENERGY				861,927
FINANCIALS - 19.9%
Banks - 9.1%
Associated Banc-Corp.		5,007		70,799
Boston Private Financial Holdings Inc.		5,814		44,187
Cathay General Bancorp		2,481		69,270
Eagle Bancorp Inc.		1,416		49,673
Financial Institutions Inc.		1,760		34,056
First Internet Bancorp		1,332		20,913
Hancock Whitney Corp.		2,785		58,234
HBT Financial Inc.		3,348		39,004
Home BancShares Inc.		4,136		63,405
IBERIABANK Corp.		1,524		63,185
Metrocity Bankshares Inc.		2,554		27,034
MVB Financial Corp.		1,606		22,050
Old Second Bancorp Inc.		3,463		28,501
Parke Bancorp Inc.		1,748		24,629
PCB Bancorp		2,453		23,009
Preferred Bank		915		34,907

See Notes to Schedule of Investments.

Legg Mason Small-Cap Quality Value ETF 2020 Quarterly Report       3

LEGG MASON SMALL-CAP QUALITY VALUE ETF

Schedule of investments (unaudited) (cont’d) April 30, 2020

SECURITY	SHARES		VALUE
Banks - (continued)
RBB Bancorp		2,327	$	30,065
Sterling Bancorp		4,795		59,122
Texas Capital Bancshares Inc.		1,713		47,587	*
Umpqua Holdings Corp.		6,257		78,369
Wintrust Financial Corp.		1,480		62,012
Total Banks				950,011
Capital Markets - 4.8%
Artisan Partners Asset Management Inc., Class A Shares		2,500		73,600
Brightsphere Investment Group Inc.		6,728		49,854
Cohen & Steers Inc.		1,060		61,204
Diamond Hill Investment Group Inc.		348		38,127
Evercore Inc., Class A Shares		1,155		59,598
Federated Hermes Inc.		2,463		56,083
Moelis & Co., Class A Shares		2,431		72,614
Safeguard Scientifics Inc.		3,402		24,120
Waddell & Reed Financial Inc., Class A Shares		4,581		66,654
Total Capital Markets				501,854
Consumer Finance - 1.8%
Atlanticus Holdings Corp.		2,194		35,323	*
Curo Group Holdings Corp.		7,444		69,378
Elevate Credit Inc.		17,627		32,963	*
Enova International Inc.		3,229		51,793	*
Total Consumer Finance				189,457
Insurance - 1.9%
American National Insurance Co.		856		68,908
Employers Holdings Inc.		1,324		40,210
Hallmark Financial Services Inc.		3,713		16,040	*
Investors Title Co.		238		31,868
National Western Life Group Inc., Class A Shares		238		45,870
Total Insurance				202,896
Thrifts & Mortgage Finance - 2.3%
Axos Financial Inc.		2,281		52,577	*
Flagstar Bancorp Inc.		1,519		39,357
Merchants Bancorp		2,068		31,847
Mr. Cooper Group Inc.		7,171		68,698	*
NMI Holdings Inc., Class A Shares		1,822		24,634	*
Sterling Bancorp Inc.		7,068		25,516
Total Thrifts & Mortgage Finance				242,629
TOTAL FINANCIALS				2,086,847

See Notes to Schedule of Investments.

  4     Legg Mason Small-Cap Quality Value ETF 2020 Quarterly Report

LEGG MASON SMALL-CAP QUALITY VALUE ETF

Schedule of investments (unaudited) (cont’d) April 30, 2020

SECURITY	SHARES		VALUE
HEALTH CARE - 17.0%
Biotechnology - 4.1%
Akcea Therapeutics Inc.		2,142	$	36,543	*
Alector Inc.		1,178		29,120	*
Anika Therapeutics Inc.		783		26,019	*
Arena Pharmaceuticals Inc.		981		48,040	*
BioSpecifics Technologies Corp.		406		23,105	*
Catalyst Pharmaceuticals Inc.		4,553		21,581	*
Eagle Pharmaceuticals Inc.		758		38,643	*
Enanta Pharmaceuticals Inc.		644		29,862	*
Ironwood Pharmaceuticals Inc.		1,865		18,650	*
Lexicon Pharmaceuticals Inc.		10,189		19,257	*
Myriad Genetics Inc.		2,870		44,370	*
Puma Biotechnology Inc.		1,848		18,572	*
Scholar Rock Holding Corp.		1,255		20,620	*
Vanda Pharmaceuticals Inc.		2,912		33,488	*
Voyager Therapeutics Inc.		1,738		18,788	*
Total Biotechnology				426,658
Health Care Equipment & Supplies - 7.0%
AngioDynamics Inc.		3,254		33,939	*
Atrion Corp.		47		29,696
CryoLife Inc.		1,134		25,322	*
Electromed Inc.		1,489		20,831	*
FONAR Corp.		1,404		27,378	*
Heska Corp.		277		19,612	*
Inogen Inc.		741		37,050	*
iRadimed Corp.		800		17,408	*
Lantheus Holdings Inc.		2,150		28,058	*
LeMaitre Vascular Inc.		1,029		29,316
Meridian Bioscience Inc.		5,120		61,440	*
Merit Medical Systems Inc.		1,121		45,759	*
Mesa Laboratories Inc.		122		29,036
Natus Medical Inc.		1,289		32,212	*
NuVasive Inc.		823		50,104	*
OraSure Technologies Inc.		4,890		77,947	*
Orthofix Medical Inc.		1,021		36,194	*
Surmodics Inc.		753		28,689	*
Tactile Systems Technology Inc.		480		24,778	*
Utah Medical Products Inc.		295		24,485
Varex Imaging Corp.		2,300		60,099	*
Total Health Care Equipment & Supplies				739,353

See Notes to Schedule of Investments.

Legg Mason Small-Cap Quality Value ETF 2020 Quarterly Report       5

LEGG MASON SMALL-CAP QUALITY VALUE ETF

Schedule of investments (unaudited) (cont’d) April 30, 2020

SECURITY	SHARES		VALUE
Health Care Providers & Services - 2.5%
Magellan Health Inc.		1,035	$	62,856	*
MEDNAX Inc.		3,958		57,470	*
National HealthCare Corp.		650		44,440
National Research Corp.		639		32,966
Premier Inc., Class A Shares		1,856		61,545	*
Total Health Care Providers & Services				259,277
Health Care Technology - 0.3%
NextGen Healthcare Inc.		3,231		34,087	*
Pharmaceuticals - 3.1%
ANI Pharmaceuticals Inc.		703		28,127	*
Corcept Therapeutics Inc.		3,240		41,018	*
Innoviva Inc.		3,330		47,220	*
Lannett Co. Inc.		4,984		47,547	*
Osmotica Pharmaceuticals PLC		6,184		24,736	*
Pacira BioSciences Inc.		874		36,088	*
Phibro Animal Health Corp., Class A Shares		1,565		41,801
Supernus Pharmaceuticals Inc.		2,479		58,009	*
Total Pharmaceuticals				324,546
TOTAL HEALTH CARE				1,783,921
INDUSTRIALS - 17.4%
Air Freight & Logistics - 1.3%
Echo Global Logistics Inc.		2,550		44,702	*
Hub Group Inc. , Class A Shares		1,195		57,491	*
Radiant Logistics Inc.		7,926		33,923	*
Total Air Freight & Logistics				136,116
Building Products - 1.6%
Builders FirstSource Inc.		2,937		53,894	*
Insteel Industries Inc.		2,067		36,317
Patrick Industries Inc.		1,221		50,329
Quanex Building Products Corp.		2,546		31,749
Total Building Products				172,289
Commercial Services & Supplies - 3.5%
ACCO Brands Corp.		6,987		51,704
Deluxe Corp.		1,920		54,086
Ennis Inc.		2,152		40,049
Healthcare Services Group Inc.		2,173		55,390
Herman Miller Inc.		1,999		45,057
HNI Corp.		1,853		45,102

See Notes to Schedule of Investments.

  6     Legg Mason Small-Cap Quality Value ETF 2020 Quarterly Report

LEGG MASON SMALL-CAP QUALITY VALUE ETF

Schedule of investments (unaudited) (cont’d) April 30, 2020

SECURITY	SHARES		VALUE
Commercial Services & Supplies - (continued)
Kimball International Inc., Class B Shares		2,743	$	33,657
Steelcase Inc., Class A Shares		4,252		46,559
Total Commercial Services & Supplies				371,604
Construction & Engineering - 1.6%
Arcosa Inc.		1,345		50,128
Comfort Systems USA Inc.		1,174		39,094
Great Lakes Dredge & Dock Corp.		4,192		37,058	*
HC2 Holdings Inc.		15,596		41,953	*
Total Construction & Engineering				168,233
Electrical Equipment - 0.7%
Encore Wire Corp.		923		42,255
Powell Industries Inc.		1,299		32,956
Total Electrical Equipment				75,211
Machinery - 1.9%
Commercial Vehicle Group Inc.		9,391		22,726	*
Lydall Inc.		3,538		39,626	*
Mueller Industries Inc.		2,151		55,711
Omega Flex Inc.		401		36,130
Wabash National Corp.		4,988		40,901
Total Machinery				195,094
Professional Services - 3.0%
Barrett Business Services Inc.		745		36,445
Heidrick & Struggles International Inc.		1,709		38,350
Kelly Services Inc., Class A Shares		3,768		58,216
Kforce Inc.		1,397		41,840
Korn Ferry		1,700		49,011
Resources Connection Inc.		3,393		36,916
TrueBlue Inc.		3,363		52,227	*
Total Professional Services				313,005
Road & Rail - 0.9%
ArcBest Corp.		2,549		51,923
Universal Logistics Holdings Inc.		2,835		39,492
Total Road & Rail				91,415
Trading Companies & Distributors - 2.9%
BMC Stock Holdings Inc.		2,392		50,830	*
GMS Inc.		2,349		43,175	*
H&E Equipment Services Inc.		2,463		40,048
MRC Global Inc.		10,845		58,129	*
NOW Inc.		6,879		42,444	*

See Notes to Schedule of Investments.

Legg Mason Small-Cap Quality Value ETF 2020 Quarterly Report       7

LEGG MASON SMALL-CAP QUALITY VALUE ETF

Schedule of investments (unaudited) (cont’d) April 30, 2020

SECURITY	SHARES		VALUE
Trading Companies & Distributors - (continued)
WESCO International Inc.		2,040	$	52,775	*
Willis Lease Finance Corp.		716		14,327	*
Total Trading Companies & Distributors				301,728
TOTAL INDUSTRIALS				1,824,695
INFORMATION TECHNOLOGY - 13.3%
Communications Equipment - 1.4%
Communications Systems Inc.		3,734		21,247
Comtech Telecommunications Corp.		1,824		33,762
NetScout Systems Inc.		2,210		58,521	*
PC-Tel Inc.		4,494		30,694	*
Total Communications Equipment				144,224
Electronic Equipment, Instruments & Components - 4.1%
Insight Enterprises Inc.		1,221		66,288	*
PC Connection Inc.		1,245		57,208
Plexus Corp.		769		48,209	*
Sanmina Corp.		2,499		69,297	*
ScanSource Inc.		2,195		56,894	*
TTM Technologies Inc.		4,475		51,865	*
Vishay Intertechnology Inc.		3,505		58,148
Vishay Precision Group Inc.		1,223		28,276	*
Total Electronic Equipment, Instruments & Components				436,185
IT Services - 2.1%
Cass Information Systems Inc.		860		34,495
CSG Systems International Inc.		1,073		52,126
Hackett Group Inc.		2,198		32,596
NIC Inc.		2,293		55,559
Sykes Enterprises		1,471		42,115	*
Total IT Services				216,891
Semiconductors & Semiconductor Equipment - 2.8%
Diodes Inc.		1,098		55,877	*
Ichor Holdings Ltd.		1,260		31,374	*
NVE Corp.		566		32,132
Power Integrations Inc.		506		51,789
SMART Global Holdings Inc.		1,551		39,225	*
Synaptics Inc.		675		44,138	*
Ultra Clean Holdings Inc.		2,082		38,288	*
Total Semiconductors & Semiconductor Equipment				292,823
Software - 1.9%
Cerence Inc.		2,153		45,557	*
CommVault Systems Inc.		1,026		43,800	*

See Notes to Schedule of Investments.

  8     Legg Mason Small-Cap Quality Value ETF 2020 Quarterly Report

LEGG MASON SMALL-CAP QUALITY VALUE ETF

Schedule of investments (unaudited) (cont’d) April 30, 2020

SECURITY	SHARES		VALUE
Software - (continued)
GlobalSCAPE Inc.		2,374	$	22,126
Intelligent Systems Corp.		498		16,703	*
Progress Software Corp.		1,286		52,610
Telenav Inc.		4,092		19,110	*
Total Software				199,906
Technology Hardware, Storage & Peripherals - 1.0%
NCR Corp.		2,975		61,047	*
Super Micro Computer Inc.		2,086		47,769	*
Total Technology Hardware, Storage & Peripherals				108,816
TOTAL INFORMATION TECHNOLOGY				1,398,845
MATERIALS - 5.5%
Chemicals - 2.0%
Advanced Emissions Solutions Inc.		4,170		30,983
FutureFuel Corp.		4,656		48,329
PolyOne Corp.		2,659		61,928
Trinseo SA		3,492		71,412
Total Chemicals				212,652
Containers & Packaging - 0.3%
Myers Industries Inc.		2,820		34,855
Metals & Mining - 2.6%
Commercial Metals Co.		3,931		62,660
Haynes International Inc.		1,578		34,874
Materion Corp.		1,008		52,154
Warrior Met Coal Inc.		5,562		69,803
Worthington Industries Inc.		2,062		54,519
Total Metals & Mining				274,010
Paper & Forest Products - 0.6%
Boise Cascade Co.		1,864		58,288
TOTAL MATERIALS				579,805
REAL ESTATE - 0.4%
Real Estate Management & Development - 0.4%
Marcus & Millichap Inc.		1,331		38,666	*
UTILITIES - 0.7%
Electric Utilities - 0.7%
Genie Energy Ltd., Class B Shares		4,911		38,699
Spark Energy Inc., Class A Shares		4,178		30,165
TOTAL UTILITIES				68,864
TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost - $12,789,061)				10,473,518

See Notes to Schedule of Investments.

Legg Mason Small-Cap Quality Value ETF 2020 Quarterly Report       9

LEGG MASON SMALL-CAP QUALITY VALUE ETF

Schedule of investments (unaudited) (cont’d) April 30, 2020

SECURITY	RATE			SHARES		VALUE
SHORT-TERM INVESTMENTS - 0.2%
Dreyfus Treasury Cash Management, Institutional Class (Cost - $22,382)		0.159	%		22,382	$	22,382
TOTAL INVESTMENTS - 100.0% (Cost - $12,811,443)							10,495,900
Liabilities in Excess of Other Assets - (0.0)%							(1,747	)
TOTAL NET ASSETS - 100.0%						$	10,494,153

* Non-income producing security.

This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.

See Notes to Schedule of Investments.

  10     Legg Mason Small-Cap Quality Value ETF 2020 Quarterly Report

Notes to Schedule of Investments (unaudited)

1. Organization and significant accounting policies

Legg Mason 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 exchange-traded fund (“ETF”). ETFs are funds that trade like other publicly-traded securities. The Fund is designed to track an index. Similar to shares of an index mutual fund, each share of the Fund represents an ownership interest in an underlying portfolio of securities intended to track an index. Unlike shares of a mutual fund, which can be bought from and redeemed by the issuing fund by all shareholders at a price based on net asset value (“NAV”), shares of the Fund may be directly purchased from and redeemed by the Fund at NAV solely by certain large institutional investors who have entered into agreements with the Fund’s distributor (“Authorized Participants”). Also unlike shares of a mutual fund, shares of the Fund are listed on a national securities exchange and trade in the secondary market at market prices that change throughout the day.

Shares of the Fund are listed and traded at market prices on NASDAQ. The market price for the Fund’s shares may be different from the Fund’s NAV. The Fund issues and redeems shares at NAV only in blocks of a specified number of shares or multiples thereof (“Creation Units”). Only Authorized Participants may purchase or redeem Creation Units directly with the Fund at NAV. Creation Units are issued 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 seeks to track the investment results of the Royce Small-Cap Quality Value Index (the “Underlying Index”). The Underlying Index utilizes a proprietary methodology created and sponsored by Royce & Associates, LP (“Royce”), the Fund’s subadviser.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Investment valuation. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Investments in

11

Notes to Schedule of Investments (unaudited) (continued)

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 of Trustees is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Trustees, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Trustees. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.

The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.

For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next

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Notes to Schedule of Investments (unaudited) (continued)

available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:

• Level 1 – quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

ASSETS
DESCRIPTION	QUOTED PRICES (LEVEL 1)		OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		TOTAL
Common Stocks†	$	10,473,518		—		—	$	10,473,518
Short-Term Investments†		22,382		—		—		22,382
Total Investments	$	10,495,900		—		—	$	10,495,900

† See Schedule of Investments for additional detailed categorizations.

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