Roundhill ETFs

 

Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD)

 

Roundhill Sports Betting & iGaming ETF (BETZ)

 

Roundhill Ball Metaverse ETF (METV)

 

Roundhill IO Digital Infrastructure ETF (BYTE)

 

Roundhill MEME ETF (MEME)

 

Roundhill Cannabis ETF (WEED)

 

 

SEMI-ANNUAL REPORT

 

June 30, 2022

 

(Unaudited)

 

 

 

 

Roundhill ETFs

Table of Contents

(Unaudited)

 

   

Schedule of Investments

2

Statements of Assets and Liabilities

14

Statements of Operations

16

Statements of Changes in Net Assets

18

Financial Highlights

24

Notes to Financial Statements

28

Board Consideration and Approval of Advisory and Sub-Advisory Agreements

42

Shareholder Expense Example

50

Supplemental Information

52

Review of Liquidity Risk Management Program

54

 

 

1

 

 

Roundhill BITKRAFT Esports & Digital Entertainment ETF

Schedule of Investments

June 30, 2022 (Unaudited)

 

 

Description

 

Shares

   

Value

 

COMMON STOCKS — 99.7%

               

Computers — 13.1%

               

Asustek Computer, Inc. (b)

    72,087     $ 752,788  

Corsair Gaming, Inc. (a)(e)

    126,302       1,658,345  

Guillemot Corp. (b)

    31,988       377,891  

Keywords Studios PLC (b)

    28,159       750,296  

Logitech International SA (b)

    15,093       786,220  
              4,325,540  

Electronics — 5.1%

               

Micro-Star International Co., Ltd. (b)

    179,942       686,883  

Turtle Beach Corp. (a)

    82,679       1,011,164  
              1,698,047  

Internet — 13.1%

               

AfreecaTV Co., Ltd. (b)

    14,526       896,128  

NCSoft Corp. (b)

    2,332       627,722  

Sea, Ltd. - ADR (a)(b)

    16,836       1,125,655  

Tencent Holdings, Ltd. (b)

    37,100       1,675,586  
              4,325,091  

Semiconductors — 2.3%

               

NVIDIA Corp.

    5,066       767,955  
                 

Software — 63.7% (d)

               

Activision Blizzard, Inc.

    23,855       1,857,350  

Bilibili, Inc. - ADR (a)(b)(e)

    50,614       1,295,718  

Capcom Co., Ltd. (b)

    31,300       759,144  

CD Projekt SA (b)

    40,112       853,658  

Com2uS Corp. (b)

    12,457       687,898  

DeNA Co., Ltd. (b)

    59,200       823,148  

DouYu International Holdings, Ltd. - ADR (a)(b)

    1,550,772       1,860,926  

Electronic Arts, Inc.

    9,234       1,123,316  

Enthusiast Gaming Holdings, Inc. (a)(b)(e)

    575,265       1,137,196  

HUYA, Inc. - ADR (a)(b)(e)

    445,847       1,729,886  

Konami Holdings Corp. (b)

    12,700       702,050  

Krafton, Inc. (a)(b)

    8,808       1,485,638  

NetEase, Inc. - ADR (b)

    11,732       1,095,300  

Nexon Co., Ltd. (b)

    33,700       689,107  

Skillz, Inc. (a)(e)

    843,209       1,045,579  

Software (Continued)

               

Square Enix Holdings Co., Ltd. (b)

    17,600     $ 778,595  

Take-Two Interactive Software, Inc. (a)

    9,651       1,182,537  

Ubisoft Entertainment SA (a)(b)

    25,629       1,122,657  

Unity Software, Inc. (a)

    23,075       849,621  
              21,079,324  

Toys/Games/Hobbies — 2.4%

               

Nintendo Co., Ltd. (b)

    1,800       777,476  
                 

TOTAL COMMON STOCKS (Cost $60,828,380)

            32,973,433  
                 

SHORT-TERM INVESTMENTS — 0.3%

               

Money Market Fund — 0.3%

               

First American Government Obligations Fund, Class X, 1.29% (c)

    96,053       96,053  

TOTAL SHORT-TERM INVESTMENTS (Cost $96,053)

               
                 

INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING — 17.2%

               

First American Government Obligations Fund, Class X, 1.29% (c)

    5,693,883       5,693,883  

TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING (Cost $5,693,883)

               
                 

TOTAL INVESTMENTS (Cost $66,618,316) — 117.2%

            38,763,369  

Other assets and liabilities, net — (17.2)%

            (5,682,069 )

NET ASSETS — 100.0%

          $ 33,081,300  

 

ADR American Depositary Receipt

 

PLC Public Limited Company

 

(a)

Non-income producing security.

 

(b)

Foreign issued security, or represents a foreign issued security.

 

(c)

The rate shown is the annualized seven-day yield at period end.

 

(d)

To the extent the Fund invests more heavily in particular sectors of the economy, its performance will be especially sensitive to developments that significantly affect those sectors.

 

(e)

All or a portion of this security is on loan as of June 30, 2022. The market values of securities out on loan is $5,149,914

 

Percentages are stated as a percent of net assets.

 

The accompanying notes are an integral part of the financial statements.

 

2

 

 

Roundhill BITKRAFT Esports & Digital Entertainment ETF

Schedule of Investments

June 30, 2022 (Unaudited) (Continued)

 

COUNTRY

Percentage
of Net
Assets

United States

28.7%

Cayman Islands

26.5%

Japan

13.7%

Republic of Korea

11.2%

France

4.5%

Taiwan

4.4%

Canada

3.4%

Poland

2.6%

Switzerland

2.4%

United Kingdom

2.3%

Total Country

99.7%

SHORT-TERM INVESTMENTS

0.3%

INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING

17.2%

TOTAL INVESTMENTS

117.2%

Other assets and liabilities, net

-17.2%

NET ASSETS

100.0%

 

 

The accompanying notes are an integral part of the financial statements.

 

3

 

 

Roundhill Sports Betting & iGaming ETF

Schedule of Investments

June 30, 2022 (Unaudited)

 

 

Description

 

Shares

   

Value

 

COMMON STOCKS — 99.4%

               

Advertising — 0.2%

               

XLMedia PLC (a)(b)

    707,368     $ 255,571  
                 

Entertainment — 87.1% (e)

               

888 Holdings PLC (b)

    1,215,950       2,474,961  

Bally’s Corp. (a)

    120,011       2,373,818  

bet-at-home.com AG (a)(b)(f)

    11,045       134,637  

Betmakers Technology Group, Ltd. (a)(b)

    7,438,612       1,739,153  

Betsson AB - Class B (a)(b)

    824,793       4,978,989  

BlueBet Holdings, Ltd. (a)(b)

    679,606       233,665  

Caesars Entertainment, Inc. (a)

    71,793       2,749,672  

Churchill Downs, Inc.

    24,421       4,677,354  

Codere Online Luxembourg SA (a)(b)

    103,589       291,085  

DraftKings, Inc. - Class A (a)(f)

    453,504       5,292,392  

Entain PLC (a)(b)

    369,009       5,579,367  

Evolution Gaming Group AB (b)(c)

    46,160       4,189,689  

Flutter Entertainment PLC (a)(b)

    68,014       6,809,495  

Gaming Realms PLC (a)(b)

    385,670       116,860  

GAN, Ltd. (a)(b)

    1,110,374       3,286,707  

Genius Sports, Ltd. (a)(b)

    1,187,594       2,672,086  

Intralot SA-Integrated Information Systems & Gaming Services (a)(b)

    279,608       159,312  

International Game Technology PLC (b)

    143,233       2,658,404  

Kambi Group PLC (a)(b)

    227,845       3,722,042  

Kindred Group PLC - SDR (b)

    770,833       6,398,409  

La Francaise des Jeux SAEM (b)(c)

    86,726       2,993,834  

LeoVegas AB (b)(c)

    488,385       2,883,394  

Light & Wonder, Inc. (a)

    57,368       2,695,722  

NEOGAMES SA (a)(b)

    266,928       3,579,504  

OPAP SA (b)

    213,974       3,053,480  

Penn National Gaming, Inc. (a)

    200,985       6,113,964  

PointsBet Holdings, Ltd. (a)(b)

    3,067,179       5,652,503  

Raketech Group Holding PLC (a)(b)

    56,079       98,067  

Rush Street Interactive, Inc. (a)

    1,049,209       4,899,806  

Sportradar Holding AG - Class A (a)(b)

    361,743       2,857,770  

STS Holding SA (b)

    204,669       668,292  

Super Group SGHC, Ltd. (a)(b)(f)

    783,587       3,212,707  

Tabcorp Holdings, Ltd. (b)

    1,232,942       902,941  

Entertainment (Continued)

               

The Lottery Corp., Ltd. (a)(b)

    1,232,942     $ 3,832,198  

Tokyotokeiba Co., Ltd. (b)

    93,200       2,692,650  
              106,674,929  

Internet — 2.7%

               

Catena Media PLC (a)(b)(f)

    691,562       2,162,945  

Gambling.com Group, Ltd. (a)(b)(f)

    131,090       1,031,678  

Gaming Innovation Group, Inc. (a)

    72,004       116,026  
              3,310,649  

Lodging — 4.2%

               

Boyd Gaming Corp.

    53,276       2,650,481  

MGM Resorts International

    84,222       2,438,227  
              5,088,708  

Software — 5.2%

               

Better Collective AS (a)(b)(f)

    85,257       1,138,158  

Bragg Gaming Group, Inc. (a)(b)(f)

    213,521       983,228  

Playtech PLC (a)(b)

    651,875       4,286,880  
              6,408,266  

TOTAL COMMON STOCKS (Cost $260,614,421)

            121,738,123  
                 

SHORT-TERM INVESTMENTS — 0.4%

               

Money Market Fund — 0.4%

               

First American Government Obligations Fund, Class X, 1.29% (d)

    460,147       460,147  

TOTAL SHORT-TERM INVESTMENTS (Cost $460,147)

               
                 

INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING — 10.0%

               

First American Government Obligations Fund, Class X, 1.29% (d)

    12,285,163       12,285,163  

TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING (Cost $12,285,163)

               
                 

TOTAL INVESTMENTS (Cost $273,359,731) — 109.8%

            134,483,433  

Other assets and liabilities, net — (9.8)%

            (12,022,850 )

NET ASSETS — 100.0%

          $ 122,460,583  

 

PLC Public Limited Company

 

SDR Special Drawing Rights

 

(a)

Non-income producing security.

 

(b)

Foreign issued security, or represents a foreign issued security.

 

The accompanying notes are an integral part of the financial statements.

 

4

 

 

Roundhill Sports Betting & iGaming ETF

Schedule of Investments

June 30, 2022 (Unaudited) (Continued)

 

(c)

Security exempt from registration pursuant to Rule 144a under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

(d)

The rate shown is the annualized seven-day yield at period end.

 

(e)

To the extent the Fund invests more heavily in particular sectors of the economy, its performance will be especially sensitive to developments that significantly affect those sectors.

 

(f)

All or a portion of this security is on loan as of June 30, 2022. The market values of securities out on loan is $11,264,865.

 

Percentages are stated as a percent of net assets.

 

COUNTRY

Percentage
of Net
Assets

United States

27.8%

Malta

10.1%

Australia

10.1%

Sweden

9.8%

Isle of Man

8.1%

Ireland

5.6%

Guernsey

4.8%

Luxembourg

3.2%

Bermuda

2.7%

Greece

2.6%

France

2.4%

Switzerland

2.3%

United Kingdom

2.3%

Japan

2.2%

Gibraltar

2.0%

Jersey

1.1%

Denmark

0.9%

Canada

0.8%

Poland

0.5%

Germany

0.1%

Total Country

99.4%

SHORT-TERM INVESTMENTS

0.4%

INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING

10.0%

TOTAL INVESTMENTS

109.8%

Other assets and liabilities, net

-9.8%

NET ASSETS

100.0%

 

The accompanying notes are an integral part of the financial statements.

 

5

 

 

Roundhill Ball Metaverse ETF

Schedule of Investments

June 30, 2022 (Unaudited)

 

 

Description

 

Shares

   

Value

 

COMMON STOCKS — 99.2%

               

Apparel — 0.4%

               

NIKE, Inc. - Class B

    18,755     $ 1,916,761  
                 

Commercial Services — 0.2%

               

Block, Inc. (a)

    8,989       552,464  

PayPal Holdings, Inc. (a)

    7,648       534,136  
              1,086,600  

Computers — 7.4%

               

Apple, Inc.

    255,200       34,890,944  
                 

Diversified Financial Services — 3.3%

               

Coinbase Global, Inc. - Class A (a)(e)

    252,594       11,876,970  

Galaxy Digital Holdings, Ltd. (a)(b)

    931,014       3,486,025  
              15,362,995  

Electronic Equipment, Instruments & Components — 0.7%

               

HEXAGON AB (b)

    319,238       3,310,014  
                 

Home Furnishings — 2.4%

               

Sony Group Corp. (b)

    140,000       11,433,514  
                 

Internet — 24.4%

               

Alibaba Group Holding, Ltd. - ADR (a)(b)

    32,474       3,691,644  

Alphabet, Inc. - Class C (a)

    3,644       7,971,068  

Amazon.com, Inc. (a)

    163,526       17,368,096  

Edgio, Inc. (a)(e)

    1,025,414       2,368,706  

Meta Platforms, Inc. - Class A (a)

    193,436       31,191,555  

NAVER Corp. (b)

    20,892       3,861,737  

Sea, Ltd. - ADR (a)(b)

    239,020       15,980,877  

Snap, Inc. - Class A (a)

    1,759,639       23,104,060  

Tencent Holdings, Ltd. (b)

    205,100       9,263,146  
              114,800,889  

Media — 1.0%

               

The Walt Disney Co. (a)

    49,425       4,665,720  
                 

Semiconductors — 20.0%

               

Advanced Micro Devices, Inc. (a)

    135,683     $ 10,375,679  

Intel Corp.

    156,245       5,845,126  

NVIDIA Corp.

    236,732       35,886,204  

QUALCOMM, Inc.

    114,385       14,611,540  

Samsung Electronics Co., Ltd. (b)

    146,427       6,428,172  

Skyworks Solutions, Inc.

    53,344       4,941,788  

Taiwan Semiconductor Manufacturing Co., Ltd. - ADR (b)

    196,051       16,027,169  
              94,115,678  

Software — 37.4% (d)

               

Activision Blizzard, Inc.

    27,714       2,157,812  

Adobe, Inc. (a)

    14,343       5,250,399  

Akamai Technologies, Inc. (a)

    54,575       4,984,335  

Autodesk, Inc. (a)

    88,921       15,290,855  

Bentley Systems, Inc. - Class B

    86,333       2,874,889  

Cloudflare, Inc. - Class A (a)

    119,485       5,227,469  

Electronic Arts, Inc.

    54,638       6,646,713  

Krafton, Inc. (a)(b)

    34,751       5,861,421  

Matterport, Inc. (a)(e)

    1,783,679       6,528,265  

Microsoft Corp.

    123,892       31,819,182  

PTC, Inc. (a)

    26,091       2,774,517  

ROBLOX Corp. - Class A (a)

    1,399,909       46,001,010  

Take-Two Interactive Software, Inc. (a)

    80,682       9,885,965  

Unity Software, Inc. (a)

    833,236       30,679,750  
              175,982,582  

Telecommunications — 1.5%

               

Lumen Technologies, Inc.

    473,273       5,163,408  

Planet Labs PBC (a)

    404,553       1,751,715  
              6,915,123  

Toys/Games/Hobbies — 0.5%

               

Nintendo Co., Ltd. (b)

    4,800       2,073,269  
                 

TOTAL COMMON STOCKS (Cost $870,838,470)

            466,554,089  
                 

REAL ESTATE INVESTMENT TRUSTS — 0.6%

               

Equinix, Inc.

    4,050       2,660,931  

TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $3,218,208)

               
                 

SHORT-TERM INVESTMENTS — 0.2%

               

Money Market Fund — 0.2%

               

First American Government Obligations Fund, Class X, 1.29% (c)

    992,246       992,246  

TOTAL SHORT-TERM INVESTMENTS (Cost $992,246)

               
                 

 

The accompanying notes are an integral part of the financial statements.

 

6

 

 

Roundhill Ball Metaverse ETF

Schedule of Investments

June 30, 2022 (Unaudited) (Continued)

 

Description

 

Shares

   

Value

 

INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING — 4.5%

               

First American Government Obligations Fund, Class X, 1.29% (c)

    21,243,571     $ 21,243,571  

TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING (Cost $21,243,571)

               
                 

TOTAL INVESTMENTS (Cost $896,292,495) — 104.5%

            491,450,837  

Other assets and liabilities, net — (4.5)%

            (21,331,698 )

NET ASSETS — 100.0%

          $ 470,119,139  

 

ADR American Depositary Receipt

 

(a)

Non—income producing security.

 

(b)

Foreign issued security, or represents a foreign issued security.

 

(c)

The rate shown is the annualized seven-day yield at period end.

 

(d)

To the extent the Fund invests more heavily in particular sectors of the economy, its performance will be especially sensitive to developments that significantly affect those sectors.

 

(e)

All or a portion of this security is on loan as of June 30, 2022. The market values of securities out on loan is $19,489,937.

 

Percentages are stated as a percent of net assets.

 

COUNTRY

Percentage
of Net
Assets

United States

81.9%

Cayman Islands

6.2%

Republic of Korea

3.4%

Taiwan

3.4%

Japan

2.9%

Canada

0.7%

Sweden

0.7%

Total Country

99.2%

REAL ESTATE INVESTMENT TRUSTS

0.6%

SHORT-TERM INVESTMENTS

0.2%

INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING

4.5%

TOTAL INVESTMENTS

104.5%

Other assets and liabilities, net

-4.5%

NET ASSETS

100.0%

 

The accompanying notes are an integral part of the financial statements.

 

7

 

 

Roundhill IO Digital Infrastructure ETF

Schedule of Investments

June 30, 2022 (Unaudited)

 

 

Description

 

Shares

   

Value

 

COMMON STOCKS — 77.2%

               

Engineering & Construction — 7.8%

               

Cellnex Telecom SA (b)(c)

    344     $ 13,317  

China Tower Corp., Ltd. (b)(c)

    620,000       79,802  

Infrastrutture Wireless Italiane SpA (b)(c)

    1,506       15,247  

Operadora De Sites Mexicanos SAB de CV (b)

    13,078       15,077  

Sarana Menara Nusantara Tbk PT (b)

    593,700       43,838  
              167,281  

Internet — 4.2%

               

ARTERIA Networks Corp. (b)

    1,500       13,492  

Cogent Communications Holdings, Inc.

    859       52,193  

Vnet Group, Inc. - ADR (a)(b)

    4,282       25,863  
              91,548  

Media — 38.2% (e)

               

Altice USA, Inc. - Class A (a)

    12,965       119,926  

Cable One, Inc.

    66       85,095  

Charter Communications, Inc. - Class A (a)

    268       125,566  

Cogeco Communications, Inc. (b)

    193       13,027  

Comcast Corp. - Class A

    2,647       103,868  

Liberty Global PLC - Class A (a)(b)

    642       13,514  

Liberty Latin America, Ltd. - Class C (a)(b)

    1,649       12,846  

Link Net Tbk PT (a)(b)

    50,600       15,862  

NOS SGPS SA (b)

    4,042       16,210  

Quebecor, Inc. - Class B (b)

    671       14,310  

Telenet Group Holding NV (b)

    3,880       80,356  

Uniti Group, Ltd. (a)(b)

    66,543       225,131  
              825,711  

Telecommunications — 27.0% (e)

               

Chindata Group Holdings, Ltd. - ADR (a)(b)

    3,967       30,784  

Chorus, Ltd. (b)

    3,165       14,208  

Consolidated Communications Holdings, Inc. (a)

    10,228       71,596  

DigitalBridge Group, Inc. (a)

    9,867       48,151  

GDS Holdings, Ltd. - ADR (a)(b)(f)

    744       24,842  

Gogo, Inc. (a)

    3,846       62,267  

Lumen Technologies, Inc.

    10,104       110,234  

Megacable Holdings SAB de CV (b)

    30,848       74,644  

NetLink NBN Trust (b)

    21,866       15,240  

Telecommunications (Continued)

               

NEXTDC, Ltd. (a)(b)

    2,001     $ 14,641  

Shenandoah Telecommunications Co.

    2,038       45,243  

Switch, Inc. - Class A

    1,633       54,706  

Tower Bersama Infrastructure Tbk PT (b)

    77,300       15,255  
              581,811  

TOTAL COMMON STOCKS (Cost $1,894,563)

            1,666,351  
                 

REAL ESTATE INVESTMENT TRUSTS — 21.8%

               

American Tower Corp.

    553       141,341  

Crown Castle International Corp.

    376       63,311  

Digital Realty Trust, Inc.

    408       52,971  

Equinix, Inc.

    111       72,929  

Keppel DC REIT (b)

    9,691       13,718  

SBA Communications Corp.

    270       86,413  

Uniti Group, Inc.

    4,168       39,263  

TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $590,860)

            469,946  
                 

SHORT-TERM INVESTMENTS — 0.9%

               

Money Market Fund — 0.9%

               

First American Government Obligations Fund, Class X, 1.29% (d)

    19,676       19,676  

TOTAL SHORT-TERM INVESTMENTS (Cost $19,676)

               
                 

INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING — 1.1%

               

First American Government Obligations Fund, Class X, 1.29% (d)

    24,181       24,181  

TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING (Cost $24,181)

               
                 

TOTAL INVESTMENTS (Cost $2,529,280) — 101.0%

            2,180,154  

Other assets and liabilities, net — (1.0)%

            (21,016 )

NET ASSETS — 100.0%

          $ 2,159,138  

 

ADR American Depositary Receipt

 

PLC Public Limited Company

 

(a)

Non-income producing security.

 

(b)

Foreign issued security, or represents a foreign issued security.

 

The accompanying notes are an integral part of the financial statements.

 

8

 

 

Roundhill IO Digital Infrastructure ETF

Schedule of Investments

June 30, 2022 (Unaudited) (Continued)

 

(c)

Security exempt from registration pursuant to Rule 144a under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

(d)

The rate shown is the annualized seven-day yield at period end.

 

(e)

To the extent the Fund invests more heavily in particular sectors of the economy, its performance will be especially sensitive to developments that significantly affect those sectors.

 

(f)

All or a portion of this security is on loan as of June 30, 2022. The market values of securities out on loan is $23,573.

 

Percentages are stated as a percent of net assets.

 

COUNTRY

Percentage
of Net
Assets

United States

40.1%

Australia

11.1%

Mexico

4.2%

Cayman Islands

3.8%

Belgium

3.7%

China

3.7%

Indonesia

3.5%

Singapore

1.3%

Canada

1.3%

Portugal

0.8%

Italy

0.7%

New Zealand

0.6%

United Kingdom

0.6%

Japan

0.6%

Spain

0.6%

Bermuda

0.6%

Total Country

77.2%

REAL ESTATE INVESTMENT TRUSTS

21.8%

SHORT-TERM INVESTMENTS

0.9%

INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING

1.1%

TOTAL INVESTMENTS

101.0%

Other assets and liabilities, net

-1.0%

NET ASSETS

100.0%

 

The accompanying notes are an integral part of the financial statements.

 

9

 

 

Roundhill MEME ETF

Schedule of Investments

June 30, 2022 (Unaudited)

 

 

Description

 

Shares

   

Value

 

COMMON STOCKS — 99.6%

               

Auto Manufacturers — 12.0%

               

NIO, Inc. - ADR (a)(b)

    1,773     $ 38,510  

Rivian Automotive, Inc. - Class A (a)

    1,404       36,139  

Tesla, Inc. (a)

    57       38,385  
              113,034  

Biotechnology — 5.0%

               

Novavax, Inc. (a)

    915       47,058  
                 

Commercial Services — 3.9%

               

Affirm Holdings, Inc. (a)

    2,013       36,355  
                 

Diversified Financial Services — 3.6%

               

Coinbase Global, Inc. - Class A (a)

    718       33,760  
                 

Entertainment — 4.2%

               

AMC Entertainment Holdings, Inc. - Class A (a)

    2,938       39,810  
                 

Financial Services — 3.6%

               

Sofi Technologies, Inc. (a)

    6,460       34,044  
                 

Food — 4.0%

               

The Kroger Co.

    796       37,675  
                 

Internet — 27.6% (d)

               

Airbnb, Inc. - Class A (a)

    370       32,960  

Netflix, Inc. (a)

    210       36,723  

Robinhood Markets, Inc. - Class A (a)

    5,122       42,103  

Roku, Inc. (a)

    447       36,716  

Shopify, Inc. - Class A (a)(b)

    1,150       35,926  

Snap, Inc. - Class A (a)

    2,965       38,930  

Twitter, Inc. (a)

    975       36,455  
              259,813  

Oil & Gas — 4.2%

               

Occidental Petroleum Corp.

    661       38,920  
                 

Packaging & Containers — 3.8%

               

O-I Glass, Inc. (a)

    2,535     $ 35,490  
                 

Pharmaceuticals — 3.8%

               

Tilray Brands, Inc. (a)

    11,508       35,905  
                 

Retail — 3.6%

               

GameStop Corp. - Class A (a)

    273       33,388  
                 

Software — 16.6%

               

DocuSign, Inc. (a)

    607       34,829  

MicroStrategy, Inc. - Class A (a)

    219       35,982  

Palantir Technologies, Inc. - Class A (a)

    4,468       40,525  

ROBLOX Corp. - Class A (a)

    1,371       45,051  
              156,387  

Transportation — 3.7%

               

ZIM Integrated Shipping Services, Ltd. (b)

    730       34,478  
                 

TOTAL COMMON STOCKS (Cost $1,212,530)

            936,117  
                 

SHORT-TERM INVESTMENTS — 0.4%

               

Money Market Fund — 0.4%

               

First American Government Obligations Fund, Class X, 1.29% (c)

    4,143       4,143  

TOTAL SHORT-TERM INVESTMENTS (Cost $4,143)

               
                 

TOTAL INVESTMENTS (Cost $1,216,673) — 100.0%

            940,260  

Other assets and liabilities, net — 0.0% (e)

            129  

NET ASSETS — 100.0%

          $ 940,389  

 

ADR American Depositary Receipt

 

(a)

Non-income producing security.

 

(b)

Foreign issued security, or represents a foreign issued security.

 

(c)

The rate shown is the annualized seven-day yield at period end.

 

(d)

To the extent the Fund invests more heavily in particular sectors of the economy, its performance will be especially sensitive to developments that significantly affect those sectors.

 

(e)

Less than 0.05%

 

Percentages are stated as a percent of net assets.

 

The accompanying notes are an integral part of the financial statements.

 

10

 

 

Roundhill MEME ETF

Schedule of Investments

June 30, 2022 (Unaudited) (Continued)

 

COUNTRY

Percentage
of Net
Assets

United States

88.0%

Cayman Islands

4.1%

Canada

3.8%

Israel

3.7%

Total Country

99.6%

SHORT-TERM INVESTMENTS

0.4%

TOTAL INVESTMENTS

100.0%

Other assets and liabilities, net

0.0%

NET ASSETS

100.0%

 

 

The accompanying notes are an integral part of the financial statements.

 

11

 

 

Roundhill Cannabis ETF

Schedule of Investments

June 30, 2022 (Unaudited)

 

 

Description

 

Shares

   

Value

 

COMMON STOCKS — 35.4%

               

Agriculture — 7.4%

               

22nd Century Group, Inc. (a)

    17,591     $ 37,469  

Turning Point Brands, Inc.

    1,470       39,881  

Village Farms International, Inc. (a)(b)

    8,843       23,080  
              100,430  

Household Products/Wares — 7.0%

               

Cronos Group, Inc. (a)(b)

    26,581       74,958  

Leafly Holdings, Inc. (a)

    4,211       18,950  
              93,908  

Pharmaceuticals — 18.3%

               

Aurora Cannabis, Inc. (a)(b)

    25,678       33,895  

Canopy Growth Corp. (a)(b)

    21,970       62,615  

Organigram Holdings, Inc. (a)(b)

    28,748       26,365  

Sundial Growers, Inc. (a)(b)

    180,928       59,000  

Tilray Brands, Inc. (a)

    20,896       65,196  
              247,071  

Software — 2.7%

               

WM Technology, Inc. (a)

    11,092       36,493  
                 

TOTAL COMMON STOCKS (Cost $703,296)

            477,902  
                 

REAL ESTATE INVESTMENT TRUSTS — 6.9%

               

AFC Gamma, Inc.

    1,771     $ 27,149  

Innovative Industrial Properties, Inc.

    593       65,153  

TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $115,070)

            92,302  
                 

SHORT-TERM INVESTMENTS — 18.0%

               

Money Market Fund — 18.0%

               

First American Government Obligations Fund, Class X, 1.29% (c)

    243,032       243,032  

TOTAL SHORT-TERM INVESTMENTS (Cost $243,032)

               
                 

TOTAL INVESTMENTS (Cost $1,061,398) — 60.3%

            813,236  

Other assets and liabilities, net — 39.7%

            535,966  

NET ASSETS — 100.0%

          $ 1,349,202  

 

(a)

Non-income producing security.

 

(b)

Foreign issued security, or represents a foreign issued security.

 

(c)

The rate shown is the annualized seven-day yield at period end.

 

Percentages are stated as a percent of net assets.

 

COUNTRY

Percentage
of Net
Assets

Canada

20.7%

United States

14.7%

Total Country

35.4%

Real Estate Investment Trusts

6.9%

SHORT-TERM INVESTMENTS

18.0%

TOTAL INVESTMENTS

60.3%

Other assets and liabilities, net

39.7%

NET ASSETS

100.0%

 

The accompanying notes are an integral part of the financial statements.

 

12

 

 

Roundhill Cannabis ETF

Schedule of Total Return Swaps

June 30, 2022 (Unaudited)

 

Long Total Return
Equity Swaps

Counterparty

Payment
Frequency

Financing Rate

 

Expiration
Date

   

Notional
Amount

   

Unrealized
Appreciation
(Depreciation)

 

AYR Wellness, Inc.

Nomura Securities International Inc.

Monthly

Overnight Bank Funding Rate Index + 1.50%

    May 15, 2023     $ 37,938     $  

Columbia Care, Inc.

Nomura Securities International Inc.

Monthly

Overnight Bank Funding Rate Index + 1.50%

    May 15, 2023       56,405        

Cresco Labs, Inc.

Nomura Securities International Inc.

Monthly

Overnight Bank Funding Rate Index + 1.50%

    May 15, 2023       65,270        

Curaleaf Holdings, Inc.

Nomura Securities International Inc.

Monthly

Overnight Bank Funding Rate Index + 1.50%

    May 15, 2023       185,380        

Green Thumb Industries, Inc.

Nomura Securities International Inc.

Monthly

Overnight Bank Funding Rate Index + 1.50%

    May 15, 2023       95,136        

Jushi Holdings, Inc. - Class B

Nomura Securities International Inc.

Monthly

Overnight Bank Funding Rate Index + 1.50%

    May 15, 2023       35,699        

Planet 13 Holdings, Inc.

Nomura Securities International Inc.

Monthly

Overnight Bank Funding Rate Index + 1.50%

    May 15, 2023       32,758        

Terrascend Corp.

Nomura Securities International Inc.

Monthly

Overnight Bank Funding Rate Index + 1.50%

    May 15, 2023       59,855        

Trulieve Cannabis Corp.

Nomura Securities International Inc.

Monthly

Overnight Bank Funding Rate Index + 1.50%

    May 15, 2023       102,922        

Verano Holdings Corp.

Nomura Securities International Inc.

Monthly

Overnight Bank Funding Rate Index + 1.50%

    May 15, 2023       94,288        
                  $ 765,651     $  

 

 

The accompanying notes are an integral part of the financial statements.

 

13

 

 

Roundhill ETFs

Statements of Assets and Liabilities

June 30, 2022 (Unaudited)

 

   

Roundhill
BITKRAFT
Esports & Digital
Entertainment
ETF

   

Roundhill
Sports Betting &
iGaming
ETF

   

Roundhill Ball
Metaverse ETF

 

Assets

                       

Investments, at value (Cost $66,618,316, $273,359,731, and $896,292,495, respectively)(1)

  $ 38,763,369     $ 134,483,433     $ 491,450,837  

Cash

                189  

Foreign currency, at value (Cost $0, $282,055, and $0, respectively)

          279,700        

Dividends and interest receivable

    20,813       32,813       137,055  

Securities lending income receivable

    6,120       33,829       20,254  

Total Assets

    38,790,302       134,829,775       491,608,335  
                         

Liabilities

                       

Payable for collateral on securities loaned (Note 7)

    5,693,883       12,285,163       21,243,571  

Payable to Adviser

    15,119       84,029       245,625  

Total Liabilities

    5,709,002       12,369,192       21,489,196  

Net Assets

  $ 33,081,300     $ 122,460,583     $ 470,119,139  
                         

Net Assets Consists of:

                       

Paid-in capital

  $ 73,373,200     $ 317,205,914     $ 986,877,060  

Total distributable earnings (accumulated losses)

    (40,291,900 )     (194,745,331 )     (516,757,921 )

Net Assets

  $ 33,081,300     $ 122,460,583     $ 470,119,139  
                         

Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)

    2,000,000       8,525,000       58,525,000  

Net Asset Value, redemption price and offering price per share

  $ 16.54     $ 14.36     $ 8.03  
                         

(1) Includes loaned securities with a value of:

  $ 5,149,914     $ 11,264,865     $ 19,489,937  

 

 

The accompanying notes are an integral part of the financial statements.

 

14

 

 

Roundhill ETFs

Statements of Assets and Liabilities

June 30, 2022 (Unaudited) (Continued)

 

   

Roundhill
IO Digital
Infrastructure
ETF

   

Roundhill
MEME ETF

   

Roundhill
Cannabis ETF

 

Assets

                       

Investments, at value (Cost $2,529,280, $1,216,673, and $1,061,398, respectively)(1)

  $ 2,180,154     $ 940,260     $ 813,236  

Deposits at broker for total return swap contracts

                803,000  

Receivable for investment securities sold

                9,020  

Dividends and interest receivable

    4,519       518       2,592  

Securities lending income receivable

    3              

Total Assets

    2,184,676       940,778       1,627,848  
                         

Liabilities

                       

Payable for collateral on securities loaned (Note 7)

    24,181              

Payable for open swap contracts

                276,054  

Payable for investment securities purchased

                1,613  

Payable to Adviser

    1,357       389       979  

Total Liabilities

    25,538       389       278,646  

Net Assets

  $ 2,159,138     $ 940,389     $ 1,349,202  
                         

Net Assets Consists of:

                       

Paid-in capital

    2,521,985     $ 2,348,047     $ 2,044,808  

Total distributable earnings (accumulated losses)

    (362,847 )     (1,407,658 )     (695,606 )

Net Assets

  $ 2,159,138     $ 940,389     $ 1,349,202  
                         

Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value)

    175,000       150,000       150,000  

Net Asset Value, redemption price and offering price per share

  $ 12.34     $ 6.27     $ 8.99  
                         

(1) Includes loaned securities with a value of:

  $ 23,573     $     $  

 

 

The accompanying notes are an integral part of the financial statements.

 

15

 

 

Roundhill ETFs

Statements of Operations

For the Period Ended June 30, 2022 (Unaudited)

 

   

Roundhill
BITKRAFT
Esports & Digital
Entertainment
ETF

   

Roundhill
Sports Betting &
iGaming
ETF

   

Roundhill Ball
Metaverse ETF

 

Investment Income

                       

Dividend income (net of withholding taxes and issuance fees of $31,104, $70,999, and $95,920, respectively)

  $ 174,641     $ 732,458     $ 2,420,702  

Securities lending income, net

    42,183       105,222       102,807  

Interest income

    80       1,863       2,058  

Total investment income

    216,904       839,543       2,525,567  
                         

Expenses

                       

Advisory fees

    114,285       726,173       2,109,567  

Total expenses

    114,285       726,173       2,109,567  

Net investment income

    102,619       113,370       416,000  
                         

Realized and Unrealized Gain (Loss) on Investments and Foreign Currency

                       

Net realized gain (loss) from:

                       

Investments

    (8,761,820 )     (27,291,294 )     (94,262,270 )

Foreign currency transactions

    (6,951 )     (1,094 )     (52,918 )

Net realized gain (loss) on investments and foreign currency transactions

    (8,768,771 )     (27,292,388 )     (94,315,188 )

Net change in unrealized appreciation/depreciation on:

                       

Investments

    (10,004,757 )     (80,890,900 )     (364,285,606 )

Foreign currency translation

    (1,902 )     (3,776 )     1,110  

Net change in unrealized appreciation/depreciation on investments and foreign currency translation

    (10,006,659 )     (80,894,676 )     (364,284,496 )

Net realized and unrealized gain (loss) on investments and foreign currency transactions

    (18,775,430 )     (108,187,064 )     (458,599,684 )

Net increase (decrease) in net assets from operations

  $ (18,672,811 )   $ (108,073,694 )   $ (458,183,684 )

 

 

The accompanying notes are an integral part of the financial statements.

 

16

 

 

Roundhill ETFs

Statements of Operations

For the Period Ended June 30, 2022 (Unaudited) (Continued)

 

   

Roundhill
IO Digital
Infrastructure
ETF

   

Roundhill
MEME ETF

   

Roundhill
Cannabis ETF
(1)

 

Investment Income

                       

Dividend income (net of withholding taxes and issuance fees of $2,302, $0, and $3,306, respectively)

  $ 30,085     $ 16,179     $ 2,146  

Securities lending income, net

    19              

Interest income

    21       4       441  

Total investment income

    30,125       16,183       2,587  
                         

Expenses

                       

Advisory fees

    7,965       4,641       2,128  

Expense Reimbursment by Adviser

                (454 )

Total expenses

    7,965       4,641       1,674  

Net investment income (loss)

    22,160       11,542       913  
                         

Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Total Return Swap Contracts

                       

Net realized gain (loss) from:

                       

Investments

    (40,655 )     (1,136,493 )     (27,141 )

Foreign currency transactions

    291              

Total return swap contracts

                (421,216 )

Net realized gain (loss) on investments, foreign currency transactions and total return swap contracts

    (40,364 )     (1,136,493 )     (448,357 )

Net change in unrealized appreciation/depreciation on:

                       

Investments

    (379,843 )     (73,692 )     (248,162 )

Foreign currency translation

    21              

Net change in unrealized appreciation/depreciation on investments, foreign currency translation and total return swap contracts

    (379,822 )     (73,692 )     (248,162 )

Net realized and unrealized gain (loss) on investments, foreign currency transactions and total return swap contracts

    (420,186 )     (1,210,185 )     (696,519 )

Net increase (decrease) in net assets from operations

  $ (398,026 )   $ (1,198,643 )   $ (695,606 )

 

(1)

The Fund commenced operations on April 20, 2022.

 

The accompanying notes are an integral part of the financial statements.

 

17

 

 

Roundhill BITKRAFT Esports & Digital Entertainment ETF

Statements of Changes in Net Assets

 

 

   

Period
Ended
June 30,
2022
(Unaudited)

   

Year
Ended
December 31,
2021

 

From Operations

               

Net investment income

  $ 102,619     $ 147,487  

Net realized gain (loss) on investments and foreign currency transactions

    (8,768,771 )     9,593,128  

Net change in net unrealized appreciation/depreciation on investments and foreign currency translation

    (10,006,659 )     (31,265,305 )

Net decrease in net assets resulting from operations

    (18,672,811 )     (21,524,690 )
                 

From Distributions

               

Distributable earnings

          (13,010 )

Total distributions

          (13,010 )
                 

From Capital Share Transactions

               

Proceeds from shares sold

    2,186,870       70,936,003  

Cost of shares redeemed

    (12,912,790 )     (60,721,313 )

Transaction fees (Note 4)

    4,622       81,181  

Net increase (decrease) in net assets resulting from capital share transactions

    (10,721,298 )     10,295,871  
                 

Total Decrease in Net Assets

    (29,394,109 )     (11,241,829 )
                 

Net Assets

               

Beginning of period

    62,475,409       73,717,238  

End of period

  $ 33,081,300     $ 62,475,409  
                 

Changes in Shares Outstanding

               

Shares outstanding, beginning of period

    2,500,000       2,450,000  

Shares sold

    100,000       2,150,000  

Shares redeemed

    (600,000 )     (2,100,000 )

Shares outstanding, end of period

    2,000,000       2,500,000  

 

 

The accompanying notes are an integral part of the financial statements.

 

18

 

 

Roundhill Sports Betting & iGaming ETF

Statements of Changes in Net Assets

 

 

   

Period
Ended
June 30,
2022
(Unaudited)

   

Year
Ended
December 31,
2021

 

From Operations

               

Net investment income

  $ 113,370     $ 1,011,979  

Net realized gain (loss) on investments and foreign currency transactions

    (27,292,388 )     81,858,219  

Net change in net unrealized appreciation/depreciation on investments and foreign currency translation

    (80,894,676 )     (112,322,895 )

Net decrease in net assets resulting from operations

    (108,073,694 )     (29,452,697 )
                 

From Capital Share Transactions

               

Proceeds from shares sold

    27,183,337       441,244,838  

Cost of shares redeemed

    (87,155,970 )     (328,186,713 )

Transaction fees (Note 4)

          10,185  

Net increase (decrease) in net assets resulting from capital share transactions

    (59,972,633 )     113,068,310  
                 

Total Increase (Decrease) in Net Assets

    (168,046,327 )     83,615,613  
                 

Net Assets

               

Beginning of period

    290,506,910       206,891,297  

End of period

  $ 122,460,583     $ 290,506,910  
                 

Changes in Shares Outstanding

               

Shares outstanding, beginning of period

    11,675,000       8,000,000  

Shares sold

    1,300,000       14,650,000  

Shares redeemed

    (4,450,000 )     (10,975,000 )

Shares outstanding, end of period

    8,525,000       11,675,000  

 

 

The accompanying notes are an integral part of the financial statements.

 

19

 

 

Roundhill Ball Metaverse ETF

Statements of Changes in Net Assets

 

 

   

Period
Ended
June 30,
2022
(Unaudited)

   

Period
Ended
December 31,
2021
(1)

 

From Operations

               

Net investment income (loss)

  $ 416,000     $ (178,353 )

Net realized loss on investments and foreign currency transactions

    (94,315,188 )     (6,889,591 )

Net change in net unrealized appreciation/depreciation on investments and foreign currency translation

    (364,284,496 )     (40,558,298 )

Net decrease in net assets resulting from operations

    (458,183,684 )     (47,626,242 )
                 

From Capital Share Transactions

               

Proceeds from shares sold

    101,488,960       1,051,713,977  

Cost of shares redeemed

    (106,299,992 )     (71,116,640 )

Transaction fees (Note 4)

    54,845       87,915  

Net increase (decrease) in net assets resulting from capital share transactions

    (4,756,187 )     980,685,252  
                 

Total Increase (Decrease) in Net Assets

    (462,939,871 )     933,059,010  
                 

Net Assets

               

Beginning of period

    933,059,010        

End of period

  $ 470,119,139     $ 933,059,010  
                 

Changes in Shares Outstanding

               

Shares outstanding, beginning of period

    61,525,000        

Shares sold

    7,500,000       66,300,000  

Shares redeemed

    (10,500,000 )     (4,775,000 )

Shares outstanding, end of period

    58,525,000       61,525,000  

 

(1)

The Fund commenced operations on June 29, 2021.

 

The accompanying notes are an integral part of the financial statements.

 

20

 

 

Roundhill IO Digital Infrastructure ETF

Statements of Changes in Net Assets

 

 

   

Period
Ended
June 30,
2022
(Unaudited)

   

Period
Ended
December 31,
2021
(1)

 

From Operations

               

Net investment income

  $ 22,160     $ 3,200  

Net realized gain (loss) on investments and foreign currency transactions

    (40,364 )     5,408  

Net change in net unrealized appreciation/depreciation on investments and foreign currency translation

    (379,822 )     31,173  

Net increase (decrease) in net assets resulting from operations

    (398,026 )     39,781  
                 

From Distributions

               

Distributable earnings

          (4,602 )

Total distributions

          (4,602 )
                 

From Capital Share Transactions

               

Proceeds from shares sold

    672,800       1,849,012  

Transaction fees (Note 4)

    37       136  

Net increase in net assets resulting from capital share transactions

    672,837       1,849,148  
                 

Total Increase in Net Assets

    274,811       1,884,327  
                 

Net Assets

               

Beginning of period

    1,884,327        

End of period

  $ 2,159,138     $ 1,884,327  
                 

Changes in Shares Outstanding

               

Shares outstanding, beginning of period

    125,000        

Shares sold

    50,000       125,000  

Shares outstanding, end of period

    175,000       125,000  

 

(1)

The Fund commenced operations on October 27, 2021.

 

The accompanying notes are an integral part of the financial statements.

 

21

 

 

Roundhill MEME ETF

Statements of Changes in Net Assets

 

 

   

Period
Ended
June 30,
2022
(Unaudited)

   

Period
Ended
December 31,
2021
(1)

 

From Operations

               

Net investment Income (loss)

  $ 11,542     $ (1,038 )

Net realized loss on investments and foreign currency transactions

    (1,136,493 )     (11,129 )

Net change in net unrealized appreciation/depreciation on investments and foreign currency translation

    (73,692 )     (202,721 )

Net decrease in net assets resulting from operations

    (1,198,643 )     (214,888 )
                 

From Capital Share Transactions

               

Proceeds from shares sold

    345,255       3,018,945  

Cost of shares redeemed

    (315,445 )     (694,835 )

Transaction fees (Note 4)

           

Net increase in net assets resulting from capital share transactions

    29,810       2,324,110  
                 

Total Increase (Decrease) in Net Assets

    (1,168,833 )     2,109,222  
                 

Net Assets

               

Beginning of period

    2,109,222        

End of period

  $ 940,389     $ 2,109,222  
                 

Changes in Shares Outstanding

               

Shares outstanding, beginning of period

    150,000        

Shares sold

    50,000       200,000  

Shares redeemed

    (50,000 )     (50,000 )

Shares outstanding, end of period

    150,000       150,000  

 

(1)

The Fund commenced operations on December 7, 2021.

 

The accompanying notes are an integral part of the financial statements.

 

22

 

 

Roundhill Cannabis ETF

Statement of Changes in Net Assets

 

 

   

Period
Ended
June 30,
2022
(1)
(Unaudited)

 

From Operations

       

Net investment income

  $ 913  

Net realized loss on investments, foreign currency transactions and swap contracts

    (448,357 )

Net change in net unrealized appreciation/depreciation on investments and foreign currency translation

    (248,162 )

Net decrease in net assets resulting from operations

    (695,606 )
         

From Capital Share Transactions

       

Proceeds from shares sold

    2,043,242  

Cost of shares redeemed

     

Transaction fees (Note 4)

    1,566  

Net increase in net assets resulting from capital share transactions

    2,044,808  
         

Total Increase in Net Assets

    1,349,202  
         

Net Assets

       

Beginning of period

     

End of period

  $ 1,349,202  
         

Changes in Shares Outstanding

       

Shares outstanding, beginning of period

     

Shares sold

    150,000  

Shares redeemed

     

Shares outstanding, end of period

    150,000  

 

(1)

The Fund commenced operations on April 20, 2022.

 

The accompanying notes are an integral part of the financial statements.

 

23

 

 

Roundhill ETFs

Financial Highlights

 

 

   

Per Share
Operating
Performance
(For a
share
outstanding throughout each period)

 
           

Income from
Investment
Operations:

   

Less
Distributions Paid From:

 

 

 

Net Asset
Value,
Beginning
of Period

   

Net
investment
income
(loss)
(1)

   

Net realized
and
unrealized
gain
(loss) on
investments

   

Total from
investment
operations

   

Net
investment
income

   

Net realized
gains

   

Return of
capital

   

Total
distributions
paid

 

Roundhill BITKRAFT Esports & Digital Entertainment ETF

                                               

For the period 01/01/2022 - 6/30/2022 (unaudited)

  $ 24.99       0.05       (8.50 )     (8.45 )                        

For the year 01/01/2021 - 12/31/2021

  $ 30.09       0.05       (5.17 )     (5.12 )     (0.01 )                 (0.01 )

For the year 01/01/2020 - 12/31/2020

  $ 16.01       0.04       14.34       14.38       (0.10 )     (0.22 )           (0.32 )

For the period 06/03/2019(7) - 12/31/2019

  $ 14.86       0.08       1.11       1.19       (0.05 )           (0.00 )(8)     (0.05 )

Roundhill Sports Betting & iGaming ETF

                                                       

For the period 01/01/2022 - 6/30/2022 (unaudited)

  $ 24.88       0.01       (10.53 )     (10.52 )                        

For the year 01/01/2021 - 12/31/2021

  $ 25.86       0.08       (1.06 )     (0.98 )                        

For the period 06/03/2020(7) - 12/31/2020

  $ 15.41       0.11       10.41       10.52       (0.07 )           (0.00 )(8)     (0.07 )

Roundhill Ball Metaverse ETF

                                                       

For the period 01/01/2022 - 6/30/2022 (unaudited)

  $ 15.17       0.01       (7.15 )     (7.14 )                        

For the period 06/29/2021(7) - 12/31/2021

  $ 15.07       (0.01 )     0.10 (9)      0.09                          

Roundhill IO Digital Infrastructure ETF

                                                       

For the period 01/01/2022 - 6/30/2022 (unaudited)

  $ 15.07       0.14       (2.87 )     (2.73 )                        

For the period 10/27/2021(7) - 12/31/2021

  $ 14.85       0.03       0.23       0.26       (0.04 )                 (0.04 )

 

 

The accompanying notes are an integral part of the financial statements.

 

24

 

 

Roundhill ETFs

Financial Highlights

 

 

Per Share
Operating
Performance
(For a share
outstanding
throughout
each period)

 

Ratios/
Supplemental
Data

 

Capital Share
Transactions:

                                 

Ratios to
Average Net
Assets of:
(2)

         

Transaction
fees
(see Note 4)

 

Net Asset
Value, End
of Period

   

Total return,
at NAV
(3)(4)

   

Total return,
at Market
(3)(4)

   

Net assets,
end of period
(000’s)

   

Expenses,
before
waivers

   

Expenses,
after
waivers

   

Net
investment
income
(loss), before
waivers

   

Net
investment
income
(loss), after
waivers

   

Portfolio
turnover
rate
(4)(5)

 
                                                                         

0.00(8)

  $ 16.54       -33.81 %     -33.57 %   $ 33,081       0.50 %     0.50 %     0.45 %     0.45 %     29 %

0.03

  $ 24.99       -16.93 %     -17.57 %   $ 62,475       0.50 %     0.50 %     0.16 %     0.16 %     52 %

0.02

  $ 30.09       89.88 %(6)     89.62 %(6)   $ 73,717       0.50 %     0.44 %     0.12 %     0.18 %     93 %

0.01

  $ 16.01       8.11 %(6)     8.42 %(6)   $ 10,810       0.50 %     0.25 %     0.65 %     0.90 %     34 %
                                                                         

  $ 14.36       -42.27 %     -41.97 %   $ 122,461       0.75 %     0.75 %     0.12 %     0.12 %     24 %

0.00(8)

  $ 24.88       -3.78 %     -3.91 %   $ 290,507       0.75 %     0.75 %     0.26 %     0.26 %     52 %

0.00(8)

  $ 25.86       68.28 %     68.15 %   $ 206,891       0.75 %     0.75 %     0.92 %     0.92 %     43 %
                                                                         

0.00(8)

  $ 8.03       -47.03 %     -47.10 %   $ 470,119       0.63 %     0.63 %     0.12 %     0.12 %     23 %

0.01

  $ 15.17       0.63 %     0.73 %   $ 933,059       0.75 %     0.75 %     -0.13 %     -0.13 %     41 %
                                                                         

0.00(8)

  $ 12.34       -18.15 %     -18.38 %   $ 2,159       0.75 %     0.75 %     2.09 %     2.09 %     27 %

0.00(8)

  $ 15.07       1.76 %     2.01 %   $ 1,884       0.81 %(10)     0.81 %(10)     1.16 %     1.16 %     3 %

 

 

The accompanying notes are an integral part of the financial statements.

 

25

 

 

Roundhill ETFs

Financial Highlights

 

 

   

Per Share
Operating
Performance
(For a
share
outstanding throughout each period)

 
           

Income from
Investment
Operations:

   

Less
Distributions Paid From:

 

 

 

Net Asset
Value,
Beginning
of Period

   

Net
investment
income
(loss)
(1)

   

Net realized
and
unrealized
gain
(loss) on
investments

   

Total from
investment
operations

   

Net
investment
income

   

Net realized
gains

   

Return of
capital

   

Total
distributions
paid

 

Roundhill MEME ETF

                                                       

For the period 01/01/2022 - 6/30/2022 (unaudited)

  $ 14.06       0.08       (7.87 )     (7.79 )                        

For the period 12/07/2021(7) - 12/31/2021

  $ 15.64       (0.01 )     (1.57 )     (1.58 )                        

Roundhill Cannabis ETF

                                               

For the period 04/20/2022(7) - 6/30/2022 (unaudited)

  $ 15.32       0.01       (6.35 )     (6.34 )                        

 

(1)

Per share net investment income (loss) was calculated using average shares outstanding.

 

(2)

Annualized for periods less than one year.

 

(3)

Total return in the table represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of dividends.

 

(4)

Not annualized for periods less than one year.

 

(5)

Excludes in-kind transactions associated with creations and redemptions of the Fund.

 

(6)

The returns reflect the actual performance for the period and do not include the impact of trades executed on the last business day of the period that were recorded on the first business day of the next period

 

(7)

Commencement of operations.

 

(8)

Less than $0.005.

 

(9)

Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statements of Operations due to share transactions for the period.

 

(10)

Includes tax expense of 0.06%.

 

The accompanying notes are an integral part of the financial statements.

 

26

 

 

Roundhill ETFs

Financial Highlights

 

 

Per Share
Operating
Performance
(For a share
outstanding
throughout
each period)

 

Ratios/
Supplemental
Data

 

Capital Share
Transactions:

                                 

Ratios to
Average Net
Assets of:
(2)

         

Transaction
fees
(see Note 4)

 

Net Asset
Value, End
of Period

   

Total return,
at NAV
(3)(4)

   

Total return,
at Market
(3)(4)

   

Net assets,
end of period
(000’s)

   

Expenses,
before
waivers

   

Expenses,
after
waivers

   

Net
investment
income
(loss), before
waivers

   

Net
investment
income
(loss), after
waivers

   

Portfolio
turnover
rate
(4)(5)

 
                                                                         

  $ 6.27       -55.42 %     -55.52 %   $ 940       0.69 %     0.69 %     1.72 %     1.72 %     495 %

  $ 14.06       -10.09 %     -10.10 %   $ 2,109       0.69 %     0.69 %     -0.69 %     -0.69 %     32 %
                                                                         

0.01

  $ 8.99       -41.29 %     -41.57 %   $ 1,349       0.75 %     0.59 %     0.16 %     0.32 %     5 %

 

 

The accompanying notes are an integral part of the financial statements.

 

27

 

 

Roundhill ETFs

Notes to Financial Statements

June 30, 2022 (Unaudited)

 

1.

ORGANIZATION

 

Roundhill BITKRAFT Esports & Digital Entertainment ETF (“NERD”), Roundhill Pro Sports, Media & Apparel ETF (“MVP”), Roundhill Ball Metaverse ETF (“METV”), Roundhill IO Digital Infrastructure ETF (“BYTE”), Roundhill MEME ETF (“MEME”) and Roundhill Cannabis ETF (“WEED”) (each a “Fund” and collectively, the “Funds”) are non-diversified series of Listed Funds Trust (the “Trust”), formerly Active Weighting Funds ETF Trust. The Trust was organized as a Delaware statutory trust on August 26, 2016, under a Declaration of Trust amended on December 21, 2018, and is registered with the U.S. Securities and Exchange Commission (the “SEC”) as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”).

 

NERD is a passively-managed exchange-traded fund (“ETF”). NERD’s objective is to track the total return performance, before fees and expenses, of the Roundhill BITKRAFT Esports Index (the “NERD Index”). The NERD Index tracks the performance of the common stock (or corresponding American Depositary Receipts (“ADRs”) or Global Depositary Receipts (“GDRs”)) of exchange-listed companies across the globe (including in emerging markets) that earn revenue from electronic sports, or esports related business activities, including: video game publishing, video game development, video game streaming platforms, organizing video game tournaments and/or events, operating and/or owning video game leagues, owning competitive video game teams, and gaming hardware and technology companies, or whose principal business activity is classified as that of another digital entertainment business activity, such as broadcasting, interactive home entertainment, interactive media & services, technology hardware storage or technology hardware, storage and peripherals.

 

BETZ is a passively-managed ETF. BETZ’s objective is to track the total return performance, before fees and expenses, of the Roundhill Sports Betting & iGaming Index (the “BETZ Index”). The BETZ Index tracks the performance of the common stock (or corresponding ADRs or GDRs) of exchange-listed companies that earn revenue from online gaming (“iGaming”). iGaming is broadly defined as the wagering of money or some other value on the outcome of an event or a game, using the internet. The BETZ Index includes: companies that operate in-person and/or online/internet sports books; companies that operate online/internet gambling platforms; and companies that provide infrastructure or technology to such companies.

 

METV is a passively-managed ETF. METV’s objective is to track the performance, before fees and expenses, of the Ball Metaverse Index (the “METV Index”). The META Index tracks the performance of globally-listed equity securities of companies that engage in activities or provide products, services, technologies, or technological capabilities to enable the Metaverse, and benefit from its generated revenues (“Metaverse Companies”). “Metaverse” is a term used to refer to a future iteration of the Internet. Users will primarily engage with the Metaverse through persistent, simultaneous, and shared three-dimensional virtual simulations and spaces. The Metaverse will also connect to physical spaces, two-dimensional Internet experiences (e.g., standard apps, webpages), and finite simulations (e.g., a game). The Metaverse will be supported by a wide range of technologies, tools, and standards that enable high volumes of concurrent users, a rich virtual-only economy of labor, goods, and services, and wide-ranging interoperability of data, digital assets, and content.

 

BYTE is a passively-managed ETF. BYTE’s objective seeks to track the performance, before fees and expenses, of the IO Digital Infrastructure Index (the “BYTE Index”), which tracks the performance of digital infrastructure companies. Digital infrastructure is comprised of the high-tech physical assets that support the efficient storage and transmission of data, powering the internet.

 

MEME is a passively-managed ETF. MEME’s objective seeks to track the performance, before fees and expenses, of the Solactive Roundhill Meme Stock Index (the “MEME Index”), which, in turn, seeks to track the performance of “meme stocks”. Meme stocks are equity securities of companies that exhibit a combination of elevated social media activity and high short interest both of which are indicators of market sentiment.

 

WEED is an actively managed ETF. WEED’s seeks to achieve its investment objective by investing primarily in exchange-listed equity securities and total return swaps intended to provide exposure to the cannabis and hemp ecosystem. The cannabis and hemp ecosystem encompasses businesses involved in the production, distribution and marketing of cannabis and hemp and products derived therefrom.

 

Costs incurred by WEED in connection with the organization, registration and the initial public offering of shares were paid by Roundhill Financial Inc. (“Roundhill” or the “Adviser”), the Funds’ Investment Adviser.

 

28

 

 

Roundhill ETFs

Notes to Financial Statements

June 30, 2022 (Unaudited) (Continued)

 

2.

SIGNIFICANT ACCOUNTING POLICIES

 

Each Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services — Investment Companies. Each Fund prepares its financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and follows the significant accounting policies described below.

 

Use of Estimates

 

The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from these estimates.

 

Share Transactions

 

The net asset value (“NAV”) per share of each Fund will be equal to a Fund’s total assets minus a Fund’s total liabilities divided by the total number of shares outstanding. The NAV that is published will be rounded to the nearest cent. The NAV is determined as of the close of trading (generally, 4:00 p.m. Eastern Time) on each day the New York Stock Exchange (“NYSE”) is open for trading.

 

Fair Value Measurement

 

In calculating the NAV, each Fund’s exchange-traded equity securities will be valued at fair value, which will generally be determined using the last reported official closing or last trading price on the exchange or market on which the security is primarily traded at the time of valuation. Such valuations are typically categorized as Level 1 in the fair value hierarchy described below.

 

Securities listed on the NASDAQ Stock Market, Inc. are generally valued at the NASDAQ official closing price. Foreign securities will be priced in their local currencies as of the close of their primary exchange or market or as of the time each Fund calculates its NAV on the valuation date, whichever is earlier.

 

If market quotations are not readily available, or if it is determined that a quotation of a security does not represent fair value, then the security is valued at fair value as determined in good faith by the Adviser using procedures adopted by the Board of Trustees of the Trust (the “Board”). The circumstances in which a security may be fair valued include, among others: the occurrence of events that are significant to a particular issuer, such as mergers, restructurings or defaults; the occurrence of events that are significant to an entire market, such as natural disasters in a particular region or government actions; trading restrictions on securities; thinly traded securities; and market events such as trading halts and early market closings. Due to the inherent uncertainty of valuations, fair values may differ significantly from the values that would have been used had an active market existed. Fair valuation could result in a different NAV than a NAV determined by using market quotations. Such valuations are typically categorized as Level 2 or Level 3 in the fair value hierarchy described below.

 

Money market funds are valued at NAV. If NAV is not readily available, the securities will be valued at fair value.

 

FASB ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”) defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP, and requires disclosure about fair value measurements. It also provides guidance on determining when there has been a significant decrease in the volume and level of activity for an asset or liability, when a transaction is not orderly, and how that information must be incorporated into fair value measurements. Under ASC 820, various inputs are used in determining the value of the Funds’ investments. These inputs are summarized in the following hierarchy:

 

 

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that the Funds have the ability to access.

 

29

 

 

Roundhill ETFs

Notes to Financial Statements

June 30, 2022 (Unaudited) (Continued)

 

 

Level 2 — Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

 

 

Level 3 — Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available; representing the Funds’ own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

 

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

 

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

 

Foreign securities, currencies and other assets denominated in foreign currencies are translated into U.S. dollars at the exchange rate of such currencies against the U.S. dollar using the applicable currency exchange rates as of the close of the NYSE, generally 4:00 p.m. Eastern Time.

 

All other securities and investments for which market values are not readily available, including restricted securities, and those securities for which it is inappropriate to determine prices in accordance with the aforementioned procedures, are valued at fair value as determined in good faith under procedures adopted by the Board, although the actual calculations may be done by others. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The hierarchy classification of inputs used to value the Funds’ investments at June 30, 2022 are as follows:

 

   

Level 1

   

Level 2

   

Level 3

   

Total

 

NERD

                               

Investments - Assets:

                               

Common Stocks*

  $ 32,973,433     $     $     $ 32,973,433  

Money Market Funds

    96,053                   96,053  

Investments Purchased With Proceeds From Securities Lending

    5,693,883                   5,693,883  

Total Investments - Assets

  $ 38,763,369     $     $     $ 38,763,369  
                                 

 

30

 

 

Roundhill ETFs

Notes to Financial Statements

June 30, 2022 (Unaudited) (Continued)

 

   

Level 1

   

Level 2

   

Level 3

   

Total

 

BETZ

                               

Investments - Assets:

                               

Common Stocks*

  $ 121,738,123     $     $     $ 121,738,123  

Money Market Funds

    460,147                   460,147  

Investments Purchased With Proceeds From Securities Lending

    12,285,163                   12,285,163  

Total Investments - Assets

  $ 134,483,433     $     $     $ 134,483,433  
                                 

METV

                               

Investments - Assets:

                               

Common Stocks*

  $ 466,554,089     $     $     $ 466,554,089  

Real Estate Investment Trusts

    2,660,931                   2,660,931  

Money Market Funds

    992,246                   992,246  

Investments Purchased With Proceeds From Securities Lending

    21,243,571                   21,243,571  

Total Investments - Assets

  $ 491,450,837     $     $     $ 491,450,837  
                                 

BYTE

                               

Investments - Assets:

                               

Common Stocks*

  $ 1,666,351     $     $     $ 1,666,351  

Real Estate Investment Trusts

    469,946                   469,946  

Money Market Funds

    19,676                   19,676  

Investments Purchased With Proceeds From Securities Lending

    24,181                   24,181  

Total Investments - Assets

  $ 2,180,154     $     $     $ 2,180,154  
                                 

MEME

                               

Investments - Assets:

                               

Common Stocks*

  $ 936,117     $     $     $ 936,117  

Money Market Funds

    4,143                   4,143  

Total Investments - Assets

  $ 940,260     $     $     $ 940,260  
                                 

WEED

                               

Investments - Assets:

                               

Common Stocks*

  $ 477,902     $     $     $ 477,902  

Real Estate Investment Trusts

    92,302                   92,302  

Money Market Funds

    243,032                   243,032  

Total Investments - Assets

  $ 813,236     $     $     $ 813,236  
                                 

 

 

31

 

 

Roundhill ETFs

Notes to Financial Statements

June 30, 2022 (Unaudited) (Continued)

 

   

Level 1

   

Level 2

   

Level 3

   

Total

 

Swap Contracts**

                               

Long Total Return Equity Swap Contracts

  $     $     $     $  

Total Swap Contracts

  $     $     $     $  

 

*

See the Schedule of Investments for industry classifications.

 

**

Swap contracts are derivative instruments, which are presented at the unrealized appreciation/depreciation on the instrument.

 

Security Transactions

 

Investment transactions are recorded as of the date that the securities are purchased or sold (trade date). Realized gains and losses from the sale or disposition of securities are calculated based on the specific identification basis.

 

The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments and currency gains or losses realized between the trade and settlement dates on securities transactions from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

 

The Funds report net realized foreign exchange gains or losses that arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign currency transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on each Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains or losses arise from changes in the values of assets and liabilities, other than investments in securities at period end, resulting from changes in exchange rates.

 

Investment Income

 

Dividend income is recognized on the ex-dividend date. Interest income is accrued daily. Withholding taxes on foreign dividends has been provided for in accordance with Funds’ understanding of the applicable tax rules and regulations. An amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity, unless the Adviser determines in good faith that such method does not represent fair value.

 

Tax Information, Dividends and Distributions to Shareholders and Uncertain Tax Positions

 

The Funds are treated as separate entities for Federal income tax purposes. Each Fund intends to qualify as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). To qualify and remain eligible for the special tax treatment accorded to RICs, each Fund must meet certain annual income and quarterly asset diversification requirements and must distribute annually at least 90% of the sum of (i) its investment company taxable income (which includes dividends, interest and net short-term capital gains) and (ii) certain net tax-exempt income, if any. If so qualified, each Fund will not be subject to Federal income tax.

 

Distributions to shareholders are recorded on the ex-dividend date. The Funds generally pay out dividends from net investment income, if any, at least annually, and distribute their net capital gains, if any, to shareholders at least annually. The Funds may also pay a special distribution at the end of the calendar year to comply with Federal tax requirements. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the components of net assets based on their Federal tax basis treatment; temporary differences do not require reclassification. Dividends and distributions which exceed earnings and profit for tax purposes are reported as a tax return of capital.

 

Management evaluates the Funds’ tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax liabilities in the financial statements. Recognition of tax benefits of an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. Interest and penalties related to income taxes would be recorded as income tax expense. The Funds’ Federal income tax returns are

 

32

 

 

Roundhill ETFs

Notes to Financial Statements

June 30, 2022 (Unaudited) (Continued)

 

subject to examination by the Internal Revenue Service (the “IRS”) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. As of December 31, 2021, the Funds’ fiscal period end, the Funds had no material uncertain tax positions and did not have a liability for any unrecognized tax benefits. As of December 31, 2021, the Funds’ fiscal period end, the Funds had no examination in progress and management is not aware of any tax positions for which it is reasonably possible that the amounts of unrecognized tax benefits will significantly change in the next twelve months.

 

NERD, BETZ, METV, BYTE, and MEME recognized no interest or penalties related to uncertain tax benefits in the fiscal period 2021. At December 31, 2021, the Funds’ fiscal period end, the tax periods from commencement of operations remained open to examination in the Funds’ major tax jurisdictions.

 

WEED commenced operations after the December 31, 2021 fiscal period end; therefore, there was no tax information as of June 30, 2022.

 

Indemnification

 

In the normal course of business, the Funds expect to enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Funds’ maximum exposure under these anticipated arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Adviser expects the risk of loss to be remote.

 

Derivatives

 

WEED may enter into total return swap agreements. A total return swap is a contract in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include a specified security, basket of securities, or securities indices during the specified period, in return for periodic payments based on a fixed or variable interest rate or the total return from other underlying assets. Swap agreements will usually be done on a net basis, i.e., where the two parties make net payments with the Fund receiving or paying, as the case may be, only the net amount of the two payments. The net amount of the excess, if any, of the Fund’s obligations over its entitlements with respect to each swap is accrued on a daily basis and an amount of cash or equivalents having an aggregate value at least equal to the accrued excess is maintained by the Fund.

 

The total return swap contracts are subject to master netting agreements, which are agreements between the Fund and its counterparties that provide for the net settlement of all transactions and collateral with the Fund through a single payment, in the event of default or termination. Amounts presented on the schedule of total return swaps are gross settlement amounts.

 

The following table presents the Fund’s gross derivative assets and liabilities by counterparty and contract type, net of amounts available for offset under a master netting agreement and the related collateral received or pledged by the Fund as of June 30, 2022.

 

Roundhill Cannabis ETF

 

     

Gross Amounts
of Recognized
Assets
Presented in
the Statements

   

Gross Amounts

           

Gross Amounts not offset in the
Statements of Assets & Liabilities

         

Counterparty

Investment Type

 

of Assets &
Liabilities

   

Available
Offset

   

Net
Amounts

   

Financial
Instruments

   

Collateral
Received

   

Net
Amount

 

Nomura Securities International Inc.

Total Return Swap Contracts

  $ (276,054 )   $     $ (276,054 )   $     $     $ (276,054 )

 

The average monthly notional amount of the swap contracts during the period ended June 30, 2022 for WEED was $770,850.

 

33

 

 

Roundhill ETFs

Notes to Financial Statements

June 30, 2022 (Unaudited) (Continued)

 

The following is a summary of the effect of swap contracts on the Funds’ Statements of Assets and Liabilities as of June 30, 2022:

 

     

Assets

   

Liabilities

   

Net Unrealized
Gain (Loss)

 

Roundhill Cannabis ETF

Swap Contracts

  $     $ 276,054     $  

 

The following is a summary of the effect of swap contracts on the Funds’ Statements of Operations for the period ended June 30, 2022:

 

     

Realized Gain
(Loss)

   

Change in
Unrealized
Appreciation/
Depreciation

 

Roundhill Cannabis ETF

Swap Contracts

  $ (421,216 )   $  

 

3.

INVESTMENT ADVISORY AND OTHER AGREEMENTS

 

Investment Advisory Agreement

 

The Trust has entered into an Investment Advisory Agreement (the “Advisory Agreement”) with the Adviser. Under the Advisory Agreement, the Adviser provides a continuous investment program for the Funds’ assets in accordance with its investment objectives, policies and limitations, and oversees the day-to-day operations of the Funds subject to the supervision of the Board, including the Trustees who are not “interested persons” of the Trust as defined in the 1940 Act.

 

Pursuant to the Advisory Agreement between the Trust, on behalf of the Funds, and Roundhill, each Fund pays a unified management fee to the Adviser, which is calculated daily and paid monthly, at an annual rate of 0.50% of NERD’s average daily net assets, at an annual rate of 0.75% of BETZ, WEED and BYTE’s average daily net assets, at an annual rate of 0.69% of MEME’s average daily net assets and at an annual rate of 0.59% of METV’s average daily net assets. Prior to February 4, 2022, the METV management fee was 0.75%. Roundhill has agreed to pay all expenses of the Funds except the fee paid to Roundhill under the Advisory Agreement, interest charges on any borrowings, dividends and other expenses on securities sold short, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, and distribution (12b-1) fees and expenses (if any). Roundhill, in turn, compensates Exchange Traded Concepts, LLC as the Sub-Adviser from the management fee it receives.

 

Exchange Traded Concepts, LLC (the “Sub-Adviser”), an Oklahoma limited liability company serves as the sub-adviser to the Funds. The Sub-Adviser is majority owned by Cottonwood ETF Holdings LLC. Pursuant to a Sub-Advisory Agreement between the Adviser and the Sub-Adviser (the “Sub-Advisory Agreement”), the Sub-Adviser is responsible for trading portfolio securities on behalf of the Funds, including selecting broker-dealers to execute purchase and sale transactions as instructed by the Adviser or in connection with any rebalancing or reconstitution of a Fund’s Index, subject to the supervision of the Adviser and the Board, including the independent Trustees. For its services, the Sub-Adviser is entitled to a sub-advisory fee paid by the Adviser, which is calculated daily and paid monthly, at an annual rate based on the average daily net assets of each Fund, and subject to a minimum annual fee as follows:

 

Minimum Annual Fee

Asset-Based Fee

$15,000

4 bps (0.04%) on the first $200 million

3.5 bps (0.035%) on the next $800 million

3 bps (0.03%) on the next $1 billion

2.5 bps (0.025%) on the balance over $2 billion

 

BITKRAFT Esports Ventures Fund I, L.P. (“BITKRAFT”) is a minority owner of the Adviser and has (via an affiliate) licensed the name “BITKRAFT” to the Adviser for use with NERD. BITKRAFT is not involved in the management of NERD or the maintenance or calculation of the Index.

 

34

 

 

Roundhill ETFs

Notes to Financial Statements

June 30, 2022 (Unaudited) (Continued)

 

Fee Waiver Agreement

 

For WEED, the Adviser contractually agreed to waive 0.16% of its management fees of the Fund until at least April 30, 2023. The Adviser waived $454 during the period ended June 30, 2022. Pursuant to the Fee Waiver Agreement, waived fees are not subject to recoupment by the Adviser.

 

Distribution Agreement and 12b-1 Plan

 

Foreside Fund Services, LLC (the “Distributor”) serves as each Fund’s distributor pursuant to a Distribution Agreement. The Distributor receives compensation from the Adviser for certain statutory underwriting services it provides to the Funds. The Distributor enters into agreements with certain broker-dealers and others that will allow those parties to be “Authorized Participants” and to subscribe for and redeem shares of the Funds. The Distributor will not distribute shares in less than whole Creation Units and does not maintain a secondary market in shares.

 

The Board has adopted a Distribution and Service Plan pursuant to Rule 12b-1 under the 1940 Act (“Rule 12b-1 Plan”). In accordance with the Rule 12b-1 Plan, each Fund is authorized to pay an amount up to 0.25% of the Fund’s average daily net assets each year for certain distribution-related activities. As authorized by the Board, no Rule 12b-1 fees are currently paid by the Funds and there are no plans to impose these fees. However, in the event Rule 12b-1 fees are charged in the future, they will be paid out of each Fund’s assets. The Adviser and its affiliates may, out of their own resources, pay amounts to third parties for distribution or marketing services on behalf of the Funds.

 

Administrator, Custodian and Transfer Agent

 

U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services” or “Administrator”) serves as administrator, transfer agent and fund accounting agent of the Funds pursuant to a Fund Servicing Agreement. U.S. Bank N.A. (the “Custodian”), an affiliate of Fund Services, serves as the Funds’ custodian pursuant to a Custody Agreement. Under the terms of these agreements, the Adviser pays each Fund’s administrative, custody and transfer agency fees.

 

A Trustee and all officers of the Trust are affiliated with the Administrator and Custodian.

 

4.

CREATION AND REDEMPTION TRANSACTIONS

 

Shares of the Funds are listed and traded on the NYSE Arca, Inc. (the “Exchange”). Each Fund issues and redeems shares on a continuous basis at NAV only in large blocks of shares called “Creation Units.” Creation Units are to be issued and redeemed principally in kind for a basket of securities and a balancing cash amount. Shares generally will trade in the secondary market in amounts less than a Creation Unit at market prices that change throughout the day. Market prices for the shares may be different from their NAV. The NAV is determined as of the close of trading (generally, 4:00 p.m. Eastern Time) on each day the NYSE is open for trading. The NAV of the shares of each Fund will be equal to a Fund’s total assets minus a Fund’s total liabilities divided by the total number of shares outstanding. The NAV that is published will be rounded to the nearest cent; however, for purposes of determining the price of Creation Units, the NAV will be calculated to four decimal places.

 

Creation Unit Transaction Fee

 

Authorized Participants will be required to pay to the Custodian a fixed transaction fee (the “Creation Unit Transaction Fee”) in connection with the issuance or redemption of Creation Units. The standard Creation Unit Transaction Fee will be the same regardless of the number of Creation Units purchased or redeemed by an investor on the applicable business day. The Creation Unit Transaction Fee charged by each Fund for each creation order is as follows:

 

NERD

$ 500

BETZ

$ 500

METV

$ 500

BYTE

$ 750

MEME

$ 300

WEED

$ 300

 

35

 

 

Roundhill ETFs

Notes to Financial Statements

June 30, 2022 (Unaudited) (Continued)

 

Prior to April 30, 2022, the Creation Unit Transaction Fee for MEME was $250.

 

The fixed creation unit transaction fee may be waived on certain orders if the applicable Fund’s custodian has determined to waive some or all of the Creation Order Costs associated with the order or another party, such as the Adviser, has agreed to pay such fee.

 

An additional variable fee of up to a maximum of 2% of the value of the Creation Units subject to the transaction may be imposed for (i) creations effected outside the Clearing Process and (ii) creations made in an all cash amount (to offset the Trust’s brokerage and other transaction costs associated with using cash to purchase or redeem the requisite Deposit Securities). Investors are responsible for the costs of transferring the securities constituting the Deposit Securities to the account of the Trust. Each Fund may determine to not charge a variable fee on certain orders when the Adviser has determined that doing so is in the best interests of Fund shareholders. Variable fees, if any, received by the Funds are displayed in the Capital Share Transactions section on the Statements of Changes in Net Assets.

 

Only “Authorized Participants” may purchase or redeem shares directly from the Funds. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Funds. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees. Securities received or delivered in connection with in-kind creates and redeems are valued as of the close of business on the effective date of the creation or redemption.

 

A creation unit will generally not be issued until the transfer of good title of the deposit securities to the Funds and the payment of any cash amounts have been completed. To the extent contemplated by the applicable participant agreement, Creation Units of the Funds will be issued to such authorized participant notwithstanding the fact that the Funds’ deposits have not been received in part or in whole, in reliance on the undertaking of the authorized participant to deliver the missing deposit securities as soon as possible. If the Funds or their agents do not receive all of the deposit securities, or the required cash amounts, by such time, then the order may be deemed rejected and the authorized participant shall be liable to the Funds for losses, if any.

 

5.

FEDERAL INCOME TAX

 

The tax character of distributions paid was as follows:

 

   

Ordinary
Income
(1)

   

Long-Term
Capital Gain

   

Return of
Capital

 
   

Fiscal period ended June 30, 2022

 

NERD

  $     $     $  

BETZ

                 

METV

                 

BYTE