EXCHANGE LISTED FUNDS TRUST

Corbett Road Tactical Opportunity ETF (OPPX)

Annual Report

November 30, 2021

 

Exchange Listed Funds Trust

TABLE OF CONTENTS

 

November 30, 2021
  

Corbett Road Tactical Opportunity ETF

   

Management’s Discussion of Fund Performance

 

1

Schedule of Investments

 

3

Summary of Investments

 

4

Statement of Assets and Liabilities

 

5

Statement of Operations

 

6

Statement of Changes in Net Assets

 

7

Financial Highlights

 

8

Notes to Financial Statements

 

9

Report of Independent Registered Public Accounting Firm

 

16

Disclosure of Fund Expenses

 

17

Other Information

 

18

Trustees

 

19

Officers

 

20

 

Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is available in the Fund’s prospectus, a copy of which may be obtained by visiting the Fund’s website at www.corbettroadfunds.com. Please read the Fund’s prospectus carefully before you invest.

There are risks involved with investing, including possible loss of principal, and there is no guarantee the Fund will achieve its investment objective. The Fund is classified as a non-diversified investment company under the Investment Company Act of 1940 (the “1940 Act”). Concentration in a particular industry or sector will subject the Fund to loss due to adverse occurrences that may affect that industry or sector.

Individual shares of the Fund may be purchased or sold in the secondary market throughout the regular trading day on the NYSE Arca, Inc. (the “Exchange”) through a brokerage account. However, shares are not individually redeemable directly from the Fund. The Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares (“Creation Units”).

Distributor: Foreside Fund Services, LLC

i

Corbett Road Tactical Opportunity ETF

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

 

November 30, 2021  

(Unaudited)  

Dear Shareholders,

Thank you for your investment in the Corbett Road Tactical Opportunity ETF (“OPPX” or the “Fund”). The information presented in this report relates to the operations of OPPX for the fiscal period February 25, 2021 (Commencement of Operations) through November 30, 2021.

The Fund seeks to provide long-term total return. The Fund is an actively-managed exchange-traded fund (“ETF”) that, under normal market conditions, seeks to achieve its investment objective by investing in equity securities of companies listed on a U.S. securities exchange, including common stocks and American Depositary Receipts. During periods when the U.S. equity market is determined to be unfavorable by the Fund’s sub-adviser, Corbett Road Capital Management, LLC, the Fund may invest all or a portion of its assets in cash, cash equivalents, and fixed income ETFs.

As the economy continued to recover from the Covid-19 pandemic, U.S. equity markets continued to show strength, rising with impressive resilience in 2021. While broad-based market indices advanced, underlying stock performance was characterized by multiple sharp rotations between different styles and factors. At the Fund’s inception, the portfolio was primarily exposed to growth stocks and held little exposure to cyclical, value stocks. Shortly after the Fund began trading, cyclical, economically sensitive businesses outperformed significantly on the back of a sharp rise in interest rates and rapidly improving economic conditions. Performance improved as the year progressed after several changes were made to the Fund’s holdings to balance the portfolio’s exposure between quality growth and value opportunities.

The Fund had positive performance during the fiscal period ended November 30, 2021. Since inception, the market price for OPPX increased 9.86% and the net asset value increased 9.87%, while the S&P 500® Index, a broad equity market index, gained 17.61% over the same period.

The Fund began operations on February 25, 2021, and had 675,000 shares outstanding as of November 30, 2021.

We appreciate your investment in the Corbett Road Tactical Opportunity ETF.

Sincerely,

J. Garrett Stevens,
Chief Executive Officer
Exchange Traded Concepts, Adviser to the Fund

1

Corbett Road Tactical Opportunity ETF

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE
(Concluded)

 

November 30, 2021  

(Unaudited)  

Growth of a $10,000 Investment

(at net asset value)

 

Inception
Date of the Fund

Cumulative
Total
Return
As of
11
/30/2021




Expense Ratio*

Gross

Net

Corbett Road Tactical Opportunity ETF (Net Asset Value)

2/25/2021

9.87%

0.75%

0.75%

Corbett Road Tactical Opportunity ETF (Market Price)

 

9.86%

   

S&P 500® Index

 

17.61%

   

*   Reflects the expense ratio as reported in the Prospectus dated February 19, 2021.

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that shares, when redeemed or sold in the market, may be worth more or less than their original cost. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. The Fund’s performance assumes the reinvestment of all dividends and all capital gains.

Current performance may be lower or higher than performance data quoted. For the Fund’s most recent month end performance, please visit www.corbettroadfunds.com.

There are no assurances that the Fund will meet its stated objectives.

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. The information provided herein represents the opinion of Exchange Traded Concepts, LLC for the period stated and is subject to change at any time.

The S&P 500® Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

The Fund’s shares are listed on an exchange. The price of the Fund’s shares is based on market price, and because exchange-traded fund shares trade at market prices rather than net asset value, shares may trade at a price greater than net asset value (premium) or less than net asset value (discount).

Net asset value (“NAV”) – The dollar value of a single share, is calculated by taking the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.

2

Corbett Road Tactical Opportunity ETF

SCHEDULE OF INVESTMENTS

 

November 30, 2021
  

 

Number
of Shares

 

Value

COMMON STOCKS — 98.5%

   

COMMUNICATION SERVICES — 8.9%

 

 

 

Alphabet, Inc., Class A*

 

318

 

$

902,468

Charter Communications, Inc., Class A*

 

743

 

 

480,186

Sea Ltd., ADR*

 

976

 

 

281,156

       

 

1,663,810

CONSUMER DISCRETIONARY — 15.0%

     

 

 

Amazon.com, Inc.*

 

231

 

 

810,133

Lululemon Athletica, Inc.*

 

784

 

 

356,258

NIKE, Inc., Class B

 

3,161

 

 

534,968

O’Reilly Automotive, Inc.*

 

633

 

 

403,955

PulteGroup, Inc.

 

6,969

 

 

348,659

Stellantis NV

 

21,357

 

 

365,845

       

 

2,819,818

CONSUMER STAPLES — 7.8%

     

 

 

Costco Wholesale Corp.

 

1,331

 

 

717,914

Darling Ingredients, Inc.*

 

4,871

 

 

328,890

Estee Lauder Cos., Inc. (The), Class A

 

1,270

 

 

421,729

       

 

1,468,533

ENERGY — 2.0%

     

 

 

EOG Resources, Inc.

 

4,246

 

 

369,402

       

 

 

FINANCIALS — 8.6%

     

 

 

JPMorgan Chase & Co.

 

3,539

 

 

562,099

Nasdaq, Inc.

 

2,946

 

 

598,716

SVB Financial Group*

 

657

 

 

454,861

       

 

1,615,676

HEALTH CARE — 10.6%

     

 

 

Align Technology, Inc.*

 

521

 

 

318,607

Avantor, Inc.*

 

12,646

 

 

499,264

Charles River Laboratories International, Inc.*

 

1,796

 

 

657,103

Inmode Ltd.*

 

6,887

 

 

523,412

       

 

1,998,386

INDUSTRIALS — 15.1%

     

 

 

Carlisle Cos., Inc.

 

1,837

 

 

413,693

CoStar Group, Inc.*

 

4,060

 

 

315,706

GXO Logistics, Inc.*

 

4,982

 

 

478,521

Old Dominion Freight Line, Inc.

 

1,313

 

 

466,338

Quanta Services, Inc.

 

4,812

 

 

547,509

Union Pacific Corp.

 

1,613

 

 

380,087

XPO Logistics, Inc.*

 

3,188

 

 

230,939

       

 

2,832,793

 

Number
of Shares

 

Value

COMMON STOCKS (Continued)

   

INFORMATION TECHNOLOGY — 24.6%

 

 

 

 

Accenture PLC, Class A

 

1,232

 

$

440,317

 

Arrow Electronics, Inc.*

 

2,890

 

 

351,568

 

ASML Holding NV

 

858

 

 

679,116

 

Cadence Design Systems, Inc.*

 

3,209

 

 

569,469

 

Entegris, Inc.

 

2,756

 

 

402,596

 

KLA Corp.

 

1,285

 

 

524,447

 

Mastercard, Inc., Class A

 

1,415

 

 

445,612

 

Novanta, Inc.*

 

2,946

 

 

475,632

 

Trade Desk, Inc. (The), Class A*

 

4,325

 

 

447,292

 

Visa, Inc., Class A

 

1,503

 

 

291,236

 

       

 

4,627,285

 

REAL ESTATE — 2.5%

     

 

 

 

Jones Lang LaSalle, Inc.*

 

2,042

 

 

479,686

 

       

 

 

 

UTILITIES — 3.4%

     

 

 

 

NextEra Energy, Inc.

 

7,392

 

 

641,478

 

TOTAL COMMON STOCKS

     

 

 

 

(Cost $16,636,059)

     

 

18,516,867

 

       

 

 

 

SHORT-TERM INVESTMENTS — 1.5%

   

Invesco Government & Agency Portfolio — Institutional Class, 0.03%(a)

 

278,288

 

 

278,288

 

TOTAL SHORT TERM INVESTMENTS

     

 

 

 

(Cost $278,288)

     

 

278,288

 

TOTAL INVESTMENTS — 100.0%

     

 

 

 

(Cost $16,914,347)

     

 

18,795,155

 

Liabilities in Excess of Other
Assets — (0.0)%

     

 

(5,058

)

TOTAL NET ASSETS — 100.0%

     

$

18,790,097

 

*   Non-income producing security.

(a) The rate is the annualized seven-day yield at period end.

ADR: American Depositary Receipt

3

Corbett Road Tactical Opportunity ETF

SUMMARY OF INVESTMENTS

 

November 30, 2021  

  

Security Type/Sector

 

Percent of
Total Net
Assets

Common Stocks

   

 

Communication Services

 

8.9

%

Consumer Discretionary

 

15.0

%

Consumer Staples

 

7.8

%

Energy

 

2.0

%

Financials

 

8.6

%

Health Care

 

10.6

%

Industrials

 

15.1

%

Information Technology

 

24.6

%

Real Estate

 

2.5

%

Utilities

 

3.4

%

Total Common Stocks

 

98.5

%

Short-Term Investments

 

1.5

%

Total Investments

 

100.0

%

Liabilities in Excess of Other Assets

 

(0.0

)%

Total Net Assets

 

100.0

%

4

EXCHANGE LISTED FUNDS TRUST

STATEMENT OF ASSETS AND LIABILITIES

 

November 30, 2021
  

  

 

Corbett
Road Tactical
Opportunity
ETF

Assets:

 

 

 

Investments, at value

 

$

18,795,155

Dividends receivable

 

 

6,569

Total Assets

 

 

18,801,724

   

 

 

Liabilities:

 

 

 

Advisory fee payable

 

 

11,627

Total Liabilities

 

 

11,627

   

 

 

Net Assets

 

$

18,790,097

   

 

 

Net Assets Consist of:

 

 

 

Paid-in capital

 

$

17,286,738

Distributable earnings (loss)

 

 

1,503,359

Net Assets

 

$

18,790,097

   

 

 

Net Assets

 

$

18,790,097

Shares of Beneficial Interest Outstanding
(unlimited number of shares authorized, no par value)

 

 

675,000

Net Asset Value, Offering and Redemption Price Per Share

 

$

27.84

Investments, at cost

 

$

16,914,347

5

EXCHANGE LISTED FUNDS TRUST

STATEMENT OF OPERATIONS

 

  

 

Corbett
Road Tactical
Opportunity
ETF

   

 

For the period
February 25,
2021
(1) to
November 30,
2021

Investment Income:

 

 

 

 

Dividends*

 

$

62,291

 

Total Investment Income

 

 

62,291

 

   

 

 

 

Expenses:

 

 

 

 

Advisory fees

 

 

70,623

 

Total Expenses

 

 

70,623

 

Net Investment Income (Loss)

 

 

(8,332

)

   

 

 

 

Realized and Unrealized Gain (Loss)

 

 

 

 

Net realized gain (loss) from:

 

 

 

 

Investments

 

 

(374,348

)

In-kind redemptions

 

 

29,467

 

Net realized gain (loss)

 

 

(344,881

)

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

Investments

 

 

1,880,808

 

Net change in unrealized appreciation (depreciation)

 

 

1,880,808

 

Net realized and unrealized gain (loss)

 

 

1,535,927

 

Net Increase (Decrease) in Net Assets Resulting from Operations

 

$

1,527,595

 

* Net of foreign withholding taxes

 

$

357

 

(1)  Commencement of operations.

6

EXCHANGE LISTED FUNDS TRUST

STATEMENT OF CHANGES IN NET ASSETS

 

  

  

 

Corbett
Road Tactical
Opportunity
ETF

   

 

For the period
February 25,
2021(1) to
November 30,
2021

From Investment Activities:

 

 

 

 

Operations:

 

 

 

 

Net investment income (loss)

 

$

(8,332

)

Net realized gain (loss)

 

 

(344,881

)

Change in net unrealized appreciation (depreciation)

 

 

1,880,808

 

Net increase (decrease) in net assets resulting from operations

 

 

1,527,595

 

   

 

 

 

Capital Transactions:

 

 

 

 

Proceeds from shares issued

 

 

20,296,161

 

Cost of shares redeemed

 

 

(3,033,659

)

Net increase (Decrease) in Net Assets Resulting from Capital Share Transactions

 

 

17,262,502

 

Total Increase (Decrease) in Net Assets

 

 

18,790,097

 

   

 

 

 

Net Assets:

 

 

 

 

Beginning of period

 

 

 

End of period

 

$

18,790,097

 

   

 

 

 

Change in Shares Outstanding:

 

 

 

 

Shares outstanding, beginning of period

 

 

 

Shares issued

 

 

800,000

 

Shares redeemed

 

 

(125,000

)

Shares outstanding, end of period

 

 

675,000

 

(1)  Commencement of operations.

7

EXCHANGE LISTED FUNDS TRUST

FINANCIAL HIGHLIGHTS

 

  

Corbett Road Tactical Opportunity ETF
Selected Per Share Data

 

For the period
February 25,
2021(1)
through
November 30,
2021

Net Asset Value, beginning of period

 

$

25.34

 

Investment Activities

 

 

 

 

Net investment income (loss)(2)

 

 

(0.02

)

Net realized and unrealized gain (loss)

 

 

2.52

 

Total from investment activities

 

 

2.50

 

Net Asset Value, end of period

 

$

27.84

 

Total Return (%)

 

 

9.87

(3)

Total Return at Market Price (%)

 

 

9.86

(3)

Ratios to Average Net Assets

 

 

 

 

Expenses (%)

 

 

0.75

(4)

Net investment income (loss) (%)

 

 

(0.09

)(4)

Supplemental Data

 

 

 

 

Net Assets at end of period (000’s)

 

$

18,790

 

Portfolio turnover (%)(5)

 

 

45

(3)

(1)  Commencement of operations.

(2)  Per share numbers have been calculated using the average shares method.

(3)  Not annualized for periods less than one year.

(4)  Annualized for periods less than one year.

(5)  Excludes the impact of in-kind transactions related to the processing of capital share transactions in Creation Units.

8

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS

 

November 30, 2021

   

Note 1 – Organization

Exchange Listed Funds Trust (the “Trust”) was organized on April 4, 2012 as a Delaware statutory trust and is registered with the Securities and Exchange Commission (“SEC”) under the 1940 Act as an open-end management investment company. The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest (”Shares”) in one or more series representing interests in separate portfolios of securities. The Trust has registered its Shares in multiple separate series. The asset of each series in the Trust are segregated and a shareholder’s interest is limited to the series in which Shares are held. The financial statements herein are for the Corbett Road Tactical Opportunity ETF (the “Fund”).

The Fund is an actively managed exchange-traded fund (“ETF”). Unlike index ETFs, actively managed ETFs do not seek to track the performance of a specified index. Instead, the Fund uses an active investment strategy in seeking to meet its investment objective.

The Fund’s investment objective is to seek to provide long-term total return by investing in equity securities of companies listed on a U.S. securities exchange, including common stocks and American Depository Receipts (“ADRs”). The Fund commenced operations on February 25, 2021.

Under the Trust’s organizational documents, its officers and Board of Trustees (the “Board”) are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust may enter into contracts with vendors and others that provide for general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust.

Note 2 – Basis of Presentation and Significant Accounting Policies

The following is a summary of the significant accounting policies followed by the Trust in the preparation of the financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies.” The preparation of financial statements in accordance with 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 income and expenses during the reporting period. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the financial statements may differ from the value the Fund ultimately realizes upon sale of the securities.

(a) Valuation of Investments

The Fund records investments at fair value using procedures approved by the Board and are generally valued using market valuations (Market Approach). A market valuation generally means a valuation (i) obtained from an exchange, a pricing service, or a major market maker (or dealer) or (ii) based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service, or a major market maker (or dealer). A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. Any assets or liabilities denominated in currencies other than the U.S. dollar are converted into U.S. dollars at the current market rates on the date of valuation as quoted by one or more sources.

In the event that current market valuations are not readily available or such valuations do not reflect current fair market value, the Trust’s procedures require the Trust’s Valuation Committee, in accordance with the Trust’s Board-approved valuation guidelines, to determine a security’s fair value. In determining such value, the Valuation Committee may consider, among other things, (i) price comparisons among multiple sources, (ii) a review of corporate actions and news events, and (iii) a review of relevant financial indicators (e.g., movement in interest rates or market indices). Fair value pricing involves subjective judgments and it is possible that the fair value determination for a security is materially different than the value that could be realized upon the sale of the security. With respect to securities that are primarily listed on foreign exchanges, the value of the Fund’s portfolio securities may change on days when the investors will not be able to purchase or sell their Shares.

9

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

November 30, 2021

   

The Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent of the Fund (observable inputs) and (2) the Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:

•  Level 1 – Quoted prices in active markets for identical assets.

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

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

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

Pursuant to the valuation procedures noted previously, equity securities and short-term investments are generally categorized as Level 1 in the fair value hierarchy (unless there is a fair valuation event, in which case affected securities are generally categorized as Level 2 or Level 3).

The following is a summary of the valuations as of November 30, 2021 for the Fund based upon the three levels defined above:

Corbett Road Tactical Opportunity ETF

 

Level 1

 

Level 2

 

Level 3

 

Total

Investments

 

 

   

 

   

 

   

 

 

Common Stocks(a)

 

$

18,516,867

 

$

 

$

 

$

18,516,867

Short-Term Investments

 

 

278,288

 

 

 

 

 

 

278,288

Total

 

$

18,795,155

 

$

 

$

 

$

18,795,155

(a)  See Schedule of Investments for additional detailed categorizations.

(b) Investment Transactions and Related Income

For financial reporting purposes, investment transactions are reported on trade date. However, for daily NAV determination, portfolio securities transactions are reflected no later than in the first calculation on the first business day following trade date. Dividend income is recorded on the ex-dividend date. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount, using the effective yield method. Gains or losses realized on sales of securities are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds. Dividend Income on the Statements of Operations is shown net of any foreign taxes withheld on income from foreign securities, which are provided for in accordance with the Fund’s understanding of the applicable tax rules and regulations.

(c) Federal Income Tax

It is the policy of the Fund to continue to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986 (the “Code”), and to distribute substantially all of its net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required as long as the Fund qualifies as a regulated investment company.

Management of the Fund has evaluated tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50%) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. In general, tax positions taken in previous tax years remain subject to examination by tax authorities

10

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

November 30, 2021

   

(generally three years for federal income tax purposes). The determination has been made that there are not any uncertain tax positions that would require the Fund to record a tax liability and, therefore, there is no impact to the Fund’s financial statements. The Fund’s policy is to classify interest and penalties associated with underpayment of federal and state income taxes, if any, as income tax expense on its Statement of Operations. As of November 30, 2021, the Fund did not have any interest or penalties associated with the underpayment of any income taxes.

(d) Distributions to Shareholders

The Fund distributes net investment income and capital gains, if any, at least annually. The Fund may make distributions on a more frequent basis for the Fund to comply with the distributions requirement of the Code, in all events in a manner consistent with the provisions of the 1940 Act.

The amount of distributions from net investment income and net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., return of capital and distribution reclassifications), such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences (e.g., wash sales and straddles) do not require a reclassification.

Note 3 – Transactions with Affiliates and Other Servicing Agreements

(a) Investment Advisory Agreement

Exchange Traded Concepts, LLC (the “Adviser”) serves as the investment adviser to the Trust, including the Fund, pursuant to an investment advisory agreement entered into by the Adviser and the Trust on behalf of the Fund (“Advisory Agreement”). Under the Advisory Agreement, the Adviser provides investment advisory services to the Fund. The Adviser is responsible for, among other things, overseeing the Sub-Adviser (as defined below), including regular review of the Sub-Adviser’s performance, trading portfolio securities on behalf of the Fund, and selecting broker-dealers to execute purchase and sale transactions, subject to the supervision of the Board. The Adviser also arranges for transfer agency, custody, fund administration and accounting, and other non-distribution related services necessary for the Fund to operate. The Adviser administers the Fund’s business affairs, provides office facilities and equipment and certain clerical, bookkeeping and administrative services, and provides its officers and employees to serve as officers or Trustees of the Trust.

For the services it provides to the Fund, the Adviser receives a fee, which is calculated daily and paid monthly, at an annual rate of 0.75% of average daily net assets of the Fund.

Under the Advisory Agreement, the Adviser has agreed to pay all expenses of the Fund except for the advisory fee, interest, 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 fees and expenses paid by the Trust under any distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act (collectively, “Excluded Expenses”). Pursuant to an arrangement between the Adviser and the Sub-Adviser, the Sub-Adviser has agreed to assume the Adviser’s obligation to pay Fund expenses (except Excluded Expenses) and has agreed, to the extent applicable, to pay the Adviser’s minimum fee.

An interested Trustee and certain officers of the Trust are affiliated with the Adviser and receive no compensation from the Trust for serving as officers and/or Trustee.

(b) Investment Sub-Advisory Agreement

The Adviser has entered into an investment sub-advisory agreement (the “Sub-Advisory Agreement”) with respect to the Fund with Corbett Road Capital Management, LLC (the “Sub-Adviser”). Under the Sub-Advisory Agreement, the Sub-Adviser makes investment decisions for the Fund and continuously reviews, supervises, and administers the investment program of the Fund, subject to the supervision of the Adviser and the Board. The Adviser pays a fee to the Sub-Adviser, which is calculated daily and paid monthly, at an annual rate of 0.63% on up to $1 billion in assets, 0.65% on the next $2 billion in assets, and 0.67% on assets in excess of $3 billion.

11

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

November 30, 2021

   

(c) Distribution Arrangement

Foreside Fund Services, LLC (the “Distributor”), a Delaware limited liability company, is the principal underwriter and distributor of the Fund’s Shares. The Distributor does not maintain any secondary market in Fund’s Shares.

The Trust has adopted a Rule 12b-1 Distribution and Service Plan (the “Distribution and Service Plan”) pursuant to which payments of up to a maximum of 0.25% of a Fund’s average daily net assets may be made to compensate or reimburse financial intermediaries for activities principally intended to result in the sale of the Fund’s Shares. In accordance with the Distribution and Service Plan, the Distributor may enter into agreements with financial intermediaries and dealers relating to distribution and/or marketing services with respect to the Trust.

Currently, no payments are made under the Distribution and Service Plan. Such payments may only be made after approval by the Board. 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 Trust.

An officer of the Trust is also an employee of an affiliate of the Distributor and receives no compensation from the Trust for serving as an officer.

(d) Other Servicing Agreements

The Bank of New York Mellon (“BNY Mellon”) serves as the Fund’s fund accountant, transfer agent, custodian and administrator.

Note 4 – Investment Transactions

Purchases and sales of investments, excluding in-kind transactions and short-term investments, for the period ended November 30, 2021 were as follows:

Fund

 

Purchases

 

Sales

Corbett Road Tactical Opportunity ETF

 

$

5,618,685

 

$

5,562,319

Purchases and sales of in-kind transactions for the period ended November 30, 2021 were as follows:

Fund

 

Purchases

 

Sales

Corbett Road Tactical Opportunity ETF

 

$

19,820,559

 

$

2,895,985

Note 5 – Capital Share Transactions

Fund Shares are listed and traded on the Exchange each day that the Exchange is open for business (“Business Day”). The Fund’s Shares may only be purchased and sold on the Exchange through a broker-dealer. Because the Fund’s Shares trade at market prices rather than at their NAV, Shares may trade at a price equal to NAV, greater than NAV (premium) or less than NAV (discount).

The Fund offers and redeems Shares on a continuous basis at NAV only in large blocks of Shares (“Creation Unit”). Except when aggregated in Creation Units, Shares are not redeemable securities of the Fund. Fund Shares may only be purchased or redeemed directly from the Fund by certain financial institutions (“Authorized Participants”). An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company (“DTC”) participant and, in each case, must have executed a Participant Agreement with the Distributor. Creation Units are available for purchase and redemption on each Business Day and are offered and redeemed on an in-kind basis, together with the specified cash amount, or for an all cash amount.

To the extent contemplated by a participant agreement, in the event an Authorized Participant has submitted a redemption request in proper form but is unable to transfer all or part of the shares comprising a Creation Unit to be redeemed by the Distributor, on behalf of the Fund, by the time as set forth in a participant agreement, the Distributor may nonetheless accept the redemption request in reliance on the undertaking by the Authorized Participant to deliver the missing shares as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral equal to a percentage

12

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

November 30, 2021

   

of the market value as set forth in the Participant Agreement. A participant agreement may permit the Fund to use such collateral to purchase the missing shares, and could subject an Authorized Participant to liability for any shortfall between the cost of the Fund acquiring such shares and the value of the collateral.

Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the Shares directly from the Fund. Rather, most retail investors will purchase Shares in the secondary market with the assistance of a broker, which will be subject to customary brokerage commissions or fees.

A purchase (i.e., creation) transaction fee may be imposed for the transfer and other transaction costs associated with the purchase of Creation Units, and investors will be required to pay a creation transaction fee regardless of the number of Creation Units created in the transaction. The Fund may adjust the creation transaction fee from time to time based upon actual experience. In addition, a variable fee may be imposed for cash purchases, non-standard orders, or partial cash purchases of Creation Units. The variable fee is primarily designed to cover non-standard charges, e.g., brokerage, taxes, foreign exchange, execution, market impact, and other costs and expenses, related to the execution of trades resulting from such transaction. The Fund may adjust the non-standard charge from time to time based upon actual experience. Investors who use the services of an Authorized Participant, broker or other such intermediary may be charged a fee for such services which may include an amount for the creation transaction fee and non-standard charges. Investors are responsible for the costs of transferring the securities constituting the deposit securities to the account of the Trust. The Adviser may retain all or a portion of the transaction fee to the extent the Adviser bears the expenses that otherwise would be borne by the Trust in connection with the issuance of a Creation Unit, which the transaction fee is designed to cover. The standard Creation Unit transaction fee for the Fund is $500, regardless of the number of Creation Units created in the transaction.

A redemption transaction fee may be imposed for the transfer and other transaction costs associated with the redemption of Creation Units, and Authorized Participants will be required to pay a redemption transaction fee regardless of the number of Creation Units created in the transaction. The redemption transaction fee is the same no matter how many Creation Units are being redeemed pursuant to any one redemption request. The Fund may adjust the redemption transaction fee from time to time based upon actual experience. In addition, a variable fee, payable to the Fund, may be imposed for cash redemptions, non-standard orders, or partial cash redemptions for the Fund. The variable fee is primarily designed to cover non-standard charges, e.g., brokerage, taxes, foreign exchange, execution, market impact, and other costs and expenses, related to the execution of trades resulting from such transaction. Investors who use the services of an Authorized Participant, broker or other such intermediary may be charged a fee for such services which may include an amount for the redemption transaction fees and non-standard charges. Investors are responsible for the costs of transferring the securities constituting the Fund’s securities to the account of the Trust. The non-standard charges are payable to the Fund as it incurs costs in connection with the redemption of Creation Units, the receipt of the Fund’s securities and the cash redemption amount and other transactions costs. The standard redemption transaction fee for the Fund is $500, regardless of the number of Creation Units redeemed in the transaction.

Note 6 – Principal Risks

As with any investment, an investor could lose all or part of their investment in the Fund and the Fund’s performance could trail that of other investments. The Fund is subject to the principal risks noted below, any of which may adversely affect the Fund’s NAV, trading price, yield, total return and ability to meet its investment objective. Additional principal risks are disclosed in the Fund’s prospectus. Please refer to the Fund’s prospectus for a complete description of the principal risks of investing in the Fund.

Asset Allocation Risk. The Fund’s investment performance depends upon the successful allocation by the Sub-Adviser of the Fund’s assets among asset classes. There is no guarantee that the Sub-Adviser’s allocation techniques and decisions will produce the desired results.

Exchange-Traded Funds Risk. Through its investments in ETFs, the Fund is subject to the risks associated with the ETFs’ investments, including the possibility that the value of the instruments held by an ETF could decrease. The Fund’s exposure to a particular risk will be proportionate to the Fund’s overall allocation and each ETF’s asset allocation. In addition, by investing in the Fund, shareholders indirectly bear fees and expenses charged by the ETFs in addition to the Fund’s direct fees and expenses. As a result, the cost of investing in the Fund may exceed the costs of investing directly in ETFs. The Fund may purchase ETFs at prices that exceed the net asset value of their underlying investments and may sell ETF investments at prices below such net asset value, and will likely incur brokerage costs when it purchases and sells ETFs.

13

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

November 30, 2021

   

Market Risk. The market price of a security or instrument could decline, sometimes rapidly or unpredictably, due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic or political conditions throughout the world, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the market generally and on specific securities. The market value of a security may also decline because of factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry.

Trading Risk. Shares of the Fund may trade on the Exchange above (premium) or below (discount) their NAV. The NAV of shares of the Fund will fluctuate with changes in the market value of the Fund’s holdings. The market prices of the Fund’s shares will fluctuate continuously throughout trading hours based on market supply and demand and may deviate significantly from the value of the Fund’s holdings, particularly in times of market stress, with the result that investors may pay more or receive less than the underlying value of the Fund shares bought or sold. When buying or selling shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase shares of the Fund (bid) and the lowest price a seller is willing to accept for shares of the Fund (ask), which is known as the bid-ask spread. In addition, although the Fund’s shares are currently listed on the Exchange, there can be no assurance that an active trading market for shares will develop or be maintained. Trading in Fund shares may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in shares of the Fund inadvisable. In stressed market conditions, the market for the Fund’s shares may become less liquid in response to deteriorating liquidity in the markets for the Fund’s underlying portfolio holdings.

Note 7 – Federal Income Taxes

GAAP requires certain components of net assets to be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or NAV per share. For the period ended November 30, 2021, the following amounts resulting primarily from the differing book and tax treatment relating to the reversal of gains and losses emanating from redemption-in-kind transactions have been reclassified:

Fund

 

Paid-in
Capital

 

Total
Distributable
Earnings
(Loss)

Corbett Road Tactical Opportunity ETF

 

$

24,236

 

$

(24,236)

As of the tax period ended November 30, 2021, the components of accumulated earnings (deficit) on a tax basis were as follows:

Fund

 

Undistributed
Ordinary
Income

 

Undistributed
Long-Term
Capital Gains
(Losses)

 

Accumulated
Capital and
Other Losses

 

Unrealized
Appreciation
(Depreciation)
on Investments

 

Accumulated
Earnings
(Deficit)

Corbett Road Tactical Opportunity ETF

 

$

(8,332

)

 

$

(338,597)

 

$

 

$

1,850,288

 

$

1,503,359

At November 30, 2021, gross unrealized appreciation and depreciation of investments owned by the Fund, based on cost for federal income tax purposes were as follows:

Fund

 

Tax Cost
of Investments

 

Unrealized
Appreciation
on Investments

 

Unrealized
Depreciation
on Investments

 

Net Unrealized
Appreciation
(Depreciation)
on Investments

Corbett Road Tactical Opportunity ETF

 

$

16,944,867

 

$

2,286,632

 

$

(436,344)

 

$

1,850,288

The difference between cost amounts for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in security transactions.

14

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Concluded)

 

November 30, 2021

   

As of the tax period ended November 30, 2021, the Fund has non-expiring accumulated capital loss carryforwards as follows:

Fund

 

Short-Term

 

Long-Term

Corbett Road Tactical Opportunity ETF

 

$

338,597

 

$

To the extent that the Fund may realize future net capital gains, those gains will be offset by any of its unused capital loss carryforward. Future capital loss carryover utilization in any given year may be subject to Code limitations.

As of November 30, 2021, the Corbett Road Tactical Opportunity ETF had $8,332 of qualified late-year ordinary losses, which are deferred until December 1, 2021 for tax purposes. Net late-year losses incurred after December 31, and within the taxable year are deemed to arise on the first day of the Fund’s next taxable year.

Note 8 – Recent Market Events

The spread of COVID-19 around the world has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19 pandemic, as well as its impact on the U.S. and international economies. The operational and financial performance of the issuers of securities in which the Fund invests depends on future developments, including the duration and spread of the outbreak, and such developments may in turn impact the value of the Fund’s investments. The ultimate impact of the pandemic on the financial performance of the Fund’s investments is not reasonably able to be estimated at this time.

Note 9 – Events Subsequent to the Fiscal Period End

In preparing these financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. Management has determined there are no subsequent events that would require disclosure in the Fund’s financial statements.

15

EXCHANGE LISTED FUNDS TRUST

Report of Independent Registered Public Accounting Firm

 

November 30, 2021

   

To the Shareholders of Corbett Road Tactical Opportunity ETF and

Board of Trustees of Exchange Listed Funds Trust

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Corbett Road Tactical Opportunity ETF (the “Fund”), a series of Exchange Listed Funds Trust, as of November 30, 2021, the related statements of operations and changes in net assets, the related notes, and the financial highlights for the period from February 25, 2021 (commencement of operations) through November 30, 2021 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2021, the results of its operations, changes in net assets, and the financial highlights for the period from February 25, 2021 (commencement of operations) through November 30, 2021, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of November 30, 2021, by correspondence with the custodian. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

We have served as the auditor of one or more investment companies advised by Exchange Traded Concepts, LLC since 2012.

COHEN & COMPANY, LTD.

Chicago, Illinois

January 25, 2022

16

EXCHANGE LISTED FUNDS TRUST

DISCLOSURE OF FUND EXPENSES

 

November 30, 2021  

(Unaudited)  

All ETFs have operating expenses. As a shareholder of the Fund, you incur an advisory fee. In addition to the advisory fee, a shareholder may pay brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses), if any. It is important for you to understand the impact of these ongoing costs on your investment returns. Shareholders may incur brokerage commissions on their purchases and sales of the Fund’s shares, which are not reflected in these examples.

The following examples use the annualized expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in the Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period (unless otherwise noted below). The table below illustrates the Fund’s cost in two ways:

Actual Fund Return

This section helps you to estimate the actual expenses after fee waivers that the Fund may have incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.

You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”

Hypothetical 5% Return

This section helps you compare your Fund’s costs with those of other funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio for the period is unchanged. This example is useful in making comparisons because the SEC requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.

NOTE: Because the return is set at 5% for comparison purposes – NOT your Fund’s actual return – the account values shown may not apply to your specific investment.

 

 

Beginning
Account Value
June 1, 2021

 

Ending
Account Value
November 30, 2021

 

Annualized
Expense
Ratio

 

Expenses Paid
During Period(1)

Corbett Road Tactical Opportunity ETF

 

 

   

 

       

 

 

Actual Performance

 

$

1,000.00

 

$

1,089.10

 

0.75%

 

$

3.93

Hypothetical (5% return before expenses)

 

$

1,000.00

 

$

1,021.31

 

0.75%

 

$

3.80

(1)  Expenses paid during the period are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 183 (the number of days in the most recent six-month period), then divided by 365.

17

EXCHANGE LISTED FUNDS TRUST

OTHER INFORMATION

 

November 30, 2021  

(Unaudited)  

Premium/Discount information

Information regarding how often the Shares of the Fund traded on the Exchange at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund for various time periods can be found on the Fund’s website at www.corbettroadfunds.com.

18

EXCHANGE LISTED FUNDS TRUST

TRUSTEES

 

November 30, 2021  

(Unaudited)  

Set forth below is information about each of the persons currently serving as a Trustee of the Trust. The address of each Trustee of the Trust is c/o Exchange Listed Funds Trust, 10900 Hefner Pointe Drive, Suite 400, Oklahoma City, Oklahoma 73120. The Fund’s Statement of Additional Information (“SAI”) contains additional information about the Trust’s Trustees. The SAI is available without charge, upon request, by calling toll-free (866) 983-0885 or at www.corbettroadfunds.com.

Name and
Year of Birth

 

Position(s)
Held with
the Trust

 

Term of Office
and Length of
Time Served
(1)

 

Principal
Occupation(s)
During Past 5 Years

 

Number of
Portfolios
in Fund
Complex
(2)
Overseen
By Trustee

 

Other Directorships
held by Trustee
During the Past 5 Years

Interested Trustee

 

 

 

 

 

 

 

 

 

 

Richard Hogan
(1961)

 

Trustee and Secretary

 

Since 2012

 

Director, Exchange Traded Concepts, LLC (since 2011); Private Investor (since 2002); Secretary, Exchange Traded Concepts Trust (since 2011); Managing Member, Yorkville ETF Advisors (2011 to 2016).

 

18

 

Board Member, Peconic Land Trust of Suffolk County, NY.

Independent Trustees

 

 

 

 

 

 

 

 

 

 

Timothy J. Jacoby
(1952)

 

Trustee

 

Since 2014

 

Senior Partner, Deloitte & Touche LLP, Private Equity/ Hedge Fund/Mutual Fund Services Practice (2000 to 2014).

 

37

 

Independent Trustee, Edward Jones Money Market Fund (since 2017);
Audit Committee Chair, Perth Mint Physical Gold ETF (2018 to 2020); Independent Trustee, Source ETF Trust (201
4 to 2015).

David M. Mahle(3)
(1943)

 

Trustee

 

Since 2012

 

Consultant, Jones Day (2012 to 2015); Of Counsel, Jones Day (2008 to 2011); Partner, Jones Day (1988 to 2008).

 

18

 

Independent Trustee, Exchange Traded Concepts Trust (2012 to 2020); Independent Trustee, Source
ETF Trust (2014 to 2015).

Linda Petrone
(1962)

 

Trustee

 

Since 2019

 

Founding Partner, Sage Search Advisors (since 2012).

 

37

 

None.

(1)  Each Trustee shall serve during the continued life of the Trust until he or she dies, resigns, reaches mandatory retirement age (unless service is extended), is declared bankrupt or incompetent by a court of competent jurisdiction, or is removed.

(2)  The fund complex includes each series of the Trust and of Exchange Traded Concepts Trust.