EXCHANGE LISTED FUNDS TRUST
QRAFT AI-Enhanced U.S. High Dividend ETF (HDIV)
QRAFT AI-Enhanced U.S. Large Cap ETF (QRFT)
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF (AMOM)
QRAFT AI-Enhanced U.S. Next Value ETF (NVQ)
Annual Report
April 30, 2022
Exchange Listed Funds Trust TABLE OF CONTENTS |
April 30, 2022
|
1 | ||
QRAFT AI-Enhanced U.S. High Dividend ETF |
||
9 | ||
11 | ||
QRAFT AI-Enhanced U.S. Large Cap ETF |
||
12 | ||
17 | ||
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF |
||
18 | ||
19 | ||
QRAFT AI-Enhanced U.S. Next Value ETF |
||
20 | ||
22 | ||
23 | ||
24 | ||
25 | ||
27 | ||
29 | ||
38 | ||
39 | ||
40 | ||
44 | ||
45 | ||
46 |
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is available in each Fund’s prospectus, a copy of which may be obtained by visiting the Funds’ website at www.qraftaietf.com. Please read a Fund’s prospectus carefully before you invest.
There are risks involved with investing, including possible loss of principal, and there is no guarantee each Fund will achieve its investment objective. Each 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 each 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 each Fund. Each 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
QRAFT AI-Enhanced U.S. High Dividend ETF |
April 30, 2022 (Unaudited) |
Dear Shareholders,
Thank you for your investment in the QRAFT AI-Enhanced U.S. High Dividend ETF (“HDIV” or the “Fund”). The information presented in this report relates to the operations of HDIV for the fiscal year ended through April 30, 2022.
The Fund is an actively managed exchange-traded fund that seeks long-term total returns through regular dividend income and capital appreciation. In seeking to achieve this objective, the Fund utilizes a proprietary artificial intelligence system to select dividend paying securities of U.S.-listed companies using a proprietary dividend factor scoring formula based on dividend and quality factors.
In 2021, both security selection and an overweight relative to the S&P 500 in the Consumer Discretionary Sector aided performance. From January through April 2022, relative to the S&P 500, the Fund’s overweighting’s in the Consumer Discretionary and Information Technology Sectors, and underweighting’s in the Energy and Utilities Sectors contributed to HDIV’s underperformance while an overweight in the Health Care Sector aided performance.
The Fund had positive performance during the fiscal year ended on April 30. The Fund’s market price increased 4.36% and the net asset value increased 4.45% while the S&P 500 Index, a broad market equity index, gained 0.21%.
The Fund commenced operations on February 26, 2020 and had 175,000 shares outstanding on April 30, 2022.
We appreciate your investment in the QRAFT AI-Enhanced U.S. High Dividend ETF.
Sincerely,
J.
Garrett Stevens
Chief Executive Officer
Exchange Traded Concepts, LLC,
Adviser to the Fund
1
QRAFT AI-Enhanced U.S. High Dividend ETF MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE (Concluded) |
April 30, 2022 (Unaudited) |
Growth of a $10,000 Investment
(at net asset value)
|
|
Average
|
| |||||||
One Year |
Since Inception |
Gross |
Net | |||||||
QRAFT AI-Enhanced
U.S. High Dividend ETF |
2/26/2020 |
4.45% |
12.97% |
0.75% |
0.75% | |||||
QRAFT AI-Enhanced
U.S. High Dividend ETF |
4.36% |
12.95% |
||||||||
S&P 500® Index |
0.21% |
15.64% |
* Reflects the expense ratio as reported in the Prospectus dated September 1, 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.qraftaietf.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. NAV is calculated at the end of each business day.
2
QRAFT AI-Enhanced U.S. Large Cap ETF MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
April 30, 2022 (Unaudited) |
Dear Shareholders,
Thank you for your investment in the QRAFT AI-Enhanced U.S. Large Cap ETF (“QRFT” or the “Fund”). The information presented in this report relates to the operations of QRFT for the fiscal year ended April 30, 2022.
The Fund is an actively managed exchange-traded fund that aims to provide investors with capital appreciation by utilizing a proprietary artificial intelligence system to select large-capitalization U.S. stocks (which the Fund defines as companies having a market capitalization in excess of $4 billion) to be held in the portfolio. The Fund seeks to hold stocks with exposure to a variety of factors affecting the U.S. market including, but not limited to, quality (generally, a company’s profitability), size (market capitalization), value (comparison of a company’s market value versus its book value), momentum (a security’s recent price returns compared to the overall market over time), and volatility (a security’s systematic risk as compared to the market as a whole). The Fund’s adviser, Exchange Traded Concepts, LLC (the “Adviser”), utilizes proprietary artificial intelligence (AI) technology provided by QRAFT Technologies, Inc. to continuously learn the correlation of factor returns with various macroeconomic and valuation conditions.
In 2021, an overweight in the Information Technology Sector bolstered Fund performance while all other relative sector weights diminished performance relative to the S&P 500. From January through April 2022, relative to the S&P 500, the Fund had overweightings in the Consumer Discretionary and Information Technology Sectors and underweightings in the Energy and Utilities Sectors, which contributed to QRFT’s underperformance, while an overweight in the Materials Sector, specifically, companies in the Steel Sub-Industry bolstered performance.
The Fund had negative performance during the fiscal year ended April 30, 2022. The Fund’s market price decreased 4.63% and the net asset value decreased 4.57% while the S&P 500 Index, a broad market equity index, gained 0.21%.
The Fund commenced operations on May 20, 2019 and had 300,001 shares outstanding on April 30, 2022.
We appreciate your investment in the QRAFT AI-Enhanced U.S. Large Cap ETF.
Sincerely,
J.
Garrett Stevens
Chief Executive Officer
Exchange Traded Concepts, LLC,
Adviser to the Fund
3
QRAFT AI-Enhanced U.S. Large Cap ETF MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE (Concluded) |
April 30, 2022 (Unaudited) |
Growth of a $10,000 Investment
(at net asset value)
|
|
Average
|
| |||||||
One Year |
Since Inception |
Gross |
Net | |||||||
QRAFT AI-Enhanced
U.S. Large Cap ETF |
5/20/2019 |
-4.57% |
18.75% |
0.75% |
0.75% | |||||
QRAFT AI-Enhanced
U.S. Large Cap ETF |
-4.63% |
18.69% |
||||||||
S&P 500® Index |
0.21% |
15.46% |
* Reflects the expense ratio as reported in the Prospectus dated September 1, 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.qraftaietf.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. NAV is calculated at the end of each business day.
4
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
April 30, 2022 (Unaudited) |
Dear Shareholders,
Thank you for your investment in the QRAFT AI-Enhanced U.S. Large Cap Momentum ETF (“AMOM” or the “Fund”). The information presented in this report relates to the operations of AMOM for the fiscal year ended April 30, 2022.
The Fund is an actively managed exchange-traded fund that seeks to provide investors with capital appreciation. Exchange Traded Concepts LLC, the Fund’s adviser, utilizes proprietary artificial intelligence (AI) technology provided by Qraft Technologies, Inc. to manage the Fund’s portfolio on a day-to-day basis. The AI technology seeks to create optimal portfolio factor weights by analyzing market data. Utilizing the AI, the adviser selects stocks of U.S. large-capitalization companies stocks (which the Fund defines as companies having a market capitalization in excess of $4 billion) based on the stocks’ momentum over a certain time period.
In 2021, security selection within the Industrials Sector aided Fund performance while securities selected within the Consumer Discretionary Sector hurt Fund performance. An overweight in securities in the Information Technology sector bolstered Fund performance relative to the S&P 500 in 2021, but hurt performance from January through April 2022. Also for the period January through April 2022, an overweight in the Consumer Discretionary Sector and an underweight in the Energy Sector contributed to AMOM’s underperformance while an overweight in the Materials Sector, specifically, companies in the Steel Sub-Industry bolstered performance relative to the S&P 500.
The Fund had negative performance during the fiscal year ending on April 30, 2022. The Fund’s market price decreased 20.67% and the net asset value decreased 20.63% while the S&P 500 Index, a broad market equity index, gained 0.21%.
The Fund commenced operations on May 20, 2019 and had 575,001 shares outstanding on April 30, 2022.
We appreciate your investment in the QRAFT AI-Enhanced U.S. Large Cap Momentum ETF.
Sincerely,
J.
Garrett Stevens
Chief Executive Officer
Exchange Traded Concepts, LLC,
Adviser to the Fund
5
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE (Concluded) |
April 30, 2022 (Unaudited) |
Growth of a $10,000 Investment
(at net asset value)
|
|
Average
|
| |||||||
One Year |
Since Inception |
Gross |
Net | |||||||
QRAFT AI-Enhanced
U.S. Large Cap Momentum ETF |
5/20/2019 |
-20.63% |
14.31% |
0.75% |
0.75% | |||||
QRAFT AI-Enhanced
U.S. Large Cap Momentum ETF |
-20.67% |
14.26% |
||||||||
S&P 500® Index |
0.21% |
15.46% |
* Reflects the expense ratio as reported in the Prospectus dated September 1, 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.qraftaietf.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. NAV is calculated at the end of each business day.
6
QRAFT AI-Enhanced U.S. Next Value ETF MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE |
April 30, 2022 (Unaudited) |
Dear Shareholders,
Thank you for your investment in the QRAFT AI-Enhanced U.S. Next Value ETF (“NVQ” or the “Fund”). The information presented in this report relates to the operations of NVQ for the fiscal year ended April 30, 2022.
The Fund is an actively managed exchange-traded fund that seeks capital appreciation by utilizing a value investing strategy enhanced by the use of artificial intelligence. The Fund’s adviser, Exchange Traded Concepts, LLC, consults proprietary artificial intelligence technology provided by Qraft Technologies, Inc. to develop a portfolio of investments based on the theory that a value investing strategy that adjusts a company’s book value by taking into account future intangible assets (e.g., a company’s investment in research and development, marketing and advertising, and intellectual property) in addition to typical value factors (e.g., book value to market value ratio, earning to market value ratio, and EV to EBIDTA ratio (also known as enterprise multiple, which is a ratio used to determine the value of a company – enterprise value, or EV, divided by earnings before interest, taxes, depreciation, and amortization, or EBITDA)), may outperform more conventional value investing strategies that do not take such assets into account in comparing a company’s book value to its intrinsic value.
In 2021, security selection within the Industrials Sector aided Fund performance while securities selected within the Consumer Discretionary Sector hurt Fund performance. From January through April 2022, overweightings in the Consumer Staples, Energy, Health Care and Materials Sectors and an underweight in the Information Technology Sector contributed to NVQ’s outperformance relative to the S&P 500. However, marginal exposure to mid capitalization and small capitalization companies constrained NVQ’s outperformance of its benchmark for the period.
The Fund had positive performance during the fiscal year ended April 30, 2022. The Fund’s market price increased 1.32% and the net asset value increased 1.62% while the broad market equity index, the S&P 500 Index returned 0.21%.
The Fund commenced operations on December 2, 2020 and had 175,000 shares outstanding on April 30, 2022.
We appreciate your investment in the QRAFT AI-Enhanced U.S. Next Value ETF.
Sincerely,
J.
Garrett Stevens
Chief Executive Officer
Exchange Traded Concepts, LLC,
Adviser to the Fund
7
QRAFT AI-Enhanced U.S. Next Value ETF MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE (Concluded) |
April 30, 2022 (Unaudited) |
Growth of a $10,000 Investment
(at net asset value)
|
|
Average
|
| |||||||
One Year |
Since Inception |
Gross |
Net | |||||||
QRAFT AI-Enhanced
U.S. Next Value ETF |
12/2/2020 |
1.62% |
19.25% |
0.75% |
0.75% | |||||
QRAFT
AI-Enhanced U.S. Next Value ETF
|
1.32% |
19.53% |
||||||||
S&P 500® Index |
0.21% |
10.35% |
* Reflects the expense ratio as reported in the Prospectus dated September 1, 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.qraftaietf.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. NAV is calculated at the end of each business day.
8
Number of
|
Value | ||||
COMMON STOCKS — 99.5% |
|||||
COMMUNICATION SERVICES — 8.0% |
|||||
AT&T, Inc. |
7,504 |
$ |
141,526 | ||
Lumen Technologies, Inc. |
1,113 |
|
11,197 | ||
Paramount Global, Class A |
627 |
|
19,782 | ||
Sirius XM Holdings, Inc. |
4,206 |
|
25,236 | ||
Verizon Communications, Inc. |
4,408 |
|
204,090 | ||
Warner Bros Discovery, Inc.* |
1,815 |
|
32,942 | ||
|
434,773 | ||||
CONSUMER DISCRETIONARY — 5.7% |
|
||||
ADT, Inc. |
864 |
|
5,918 | ||
Advance Auto Parts, Inc. |
66 |
|
13,176 | ||
Best Buy Co., Inc. |
257 |
|
23,112 | ||
BRP, Inc. |
98 |
|
7,941 | ||
Columbia Sportswear Co. |
73 |
|
5,998 | ||
Dick’s Sporting Goods, Inc. |
70 |
|
6,749 | ||
Gap, Inc. (The) |
424 |
|
5,266 | ||
Genuine Parts Co. |
152 |
|
19,768 | ||
Hanesbrands, Inc. |
398 |
|
5,277 | ||
Kohl’s Corp. |
153 |
|
8,856 | ||
Macy’s, Inc. |
325 |
|
7,855 | ||
Newell Brands, Inc. |
467 |
|
10,811 | ||
Penske Automotive Group, Inc. |
86 |
|
9,015 | ||
PVH Corp. |
79 |
|
5,750 | ||
Ralph Lauren Corp. |
53 |
|
5,530 | ||
Target Corp. |
504 |
|
115,240 | ||
Under Armour, Inc., Class A* |
456 |
|
7,004 | ||
VF Corp. |
416 |
|
21,632 | ||
Whirlpool Corp. |
64 |
|
11,617 | ||
Williams-Sonoma, Inc. |
80 |
|
10,438 | ||
|
306,953 | ||||
CONSUMER STAPLES — 20.4% |
|
||||
Albertsons Cos., Inc., Class A |
520 |
|
16,266 | ||
Altria Group, Inc. |
1,919 |
|
106,639 | ||
Casey’s General Stores, Inc. |
41 |
|
8,253 | ||
Kellogg Co. |
365 |
|
25,002 | ||
PepsiCo, Inc. |
1,452 |
|
249,323 | ||
Philip Morris International, Inc. |
1,629 |
|
162,900 | ||
Sysco Corp. |
537 |
|
45,903 | ||
US Foods Holding Corp.* |
246 |
|
9,254 | ||
Walgreens Boots Alliance, Inc. |
915 |
|
38,796 | ||
Walmart, Inc. |
2,910 |
|
445,201 | ||
|
1,107,537 |
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
ENERGY — 7.3% |
|||||
Coterra Energy, Inc. |
869 |
$ |
25,018 | ||
Crescent Point Energy Corp. |
1,442 |
|
9,978 | ||
Enterprise Products Partners LP |
2,304 |
|
59,697 | ||
EOG Resources, Inc. |
617 |
|
72,041 | ||
Magellan Midstream Partners LP |
232 |
|
11,240 | ||
MPLX LP |
1,077 |
|
34,852 | ||
Occidental Petroleum Corp. |
987 |
|
54,374 | ||
PDC Energy, Inc. |
108 |
|
7,532 | ||
Pioneer Natural Resources Co. |
256 |
|
59,512 | ||
Plains All American Pipeline LP |
788 |
|
8,164 | ||
Shell Midstream Partners LP |
444 |
|
6,274 | ||
Valero Energy Corp. |
433 |
|
48,271 | ||
|
396,953 | ||||
FINANCIALS — 5.8% |
|
||||
AGNC Investment Corp., REIT |
582 |
|
6,390 | ||
American Financial Group, Inc. |
92 |
|
12,740 | ||
Annaly Capital Management, Inc., REIT |
1,595 |
|
10,240 | ||
Ares Capital Corp. |
7 |
|
142 | ||
Blackstone, Inc. |
737 |
|
74,857 | ||
Credicorp Ltd. |
86 |
|
11,944 | ||
Deutsche Bank AG* |
2,200 |
|
21,736 | ||
FS KKR Capital Corp. |
319 |
|
6,683 | ||
Jefferies Financial Group, Inc. |
267 |
|
8,213 | ||
Old Republic International Corp. |
339 |
|
7,461 | ||
OneMain Holdings, Inc. |
143 |
|
6,568 | ||
Owl Rock Capital Corp. |
444 |
|
6,354 | ||
Progressive Corp. (The) |
616 |
|
66,134 | ||
Prudential Financial, Inc. |
398 |
|
43,187 | ||
T Rowe Price Group, Inc. |
243 |
|
29,899 | ||
|
312,548 | ||||
HEALTH CARE — 34.8% |
|
||||
AbbVie, Inc. |
1,856 |
|
272,609 | ||
Amgen, Inc. |
586 |
|
136,649 | ||
Bristol-Myers Squibb Co. |
2,332 |
|
175,530 | ||
Cardinal Health, Inc. |
298 |
|
17,299 | ||
CVS Health Corp. |
1,380 |
|
132,659 | ||
ELI Lilly & Co. |
999 |
|
291,838 | ||
Gilead Sciences, Inc. |
1,322 |
|
78,447 | ||
Johnson & Johnson |
2,500 |
|
451,150 | ||
LHC Group, Inc.* |
36 |
|
5,971 | ||
Merck & Co., Inc. |
2,652 |
|
235,206 | ||
Moderna, Inc.* |
427 |
|
57,393 | ||
Quest Diagnostics, Inc. |
132 |
|
17,667 | ||
Viatris, Inc. |
1,309 |
|
13,522 | ||
|
1,885,940 |
9
QRAFT AI-Enhanced U.S. High Dividend ETF SCHEDULE OF INVESTMENTS (Concluded) |
April 30, 2022
|
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
INDUSTRIALS — 3.2% |
|||||
3M Co. |
602 |
$ |
86,820 | ||
AGCO Corp. |
81 |
|
10,319 | ||
Brookfield Business Partners LP |
292 |
|
6,953 | ||
FedEx Corp. |
280 |
|
55,647 | ||
Lincoln Electric Holdings, Inc. |
65 |
|
8,758 | ||
WESCO International, Inc.* |
57 |
|
7,026 | ||
|
175,523 | ||||
INFORMATION TECHNOLOGY — 10.7% |
|
||||
Hewlett Packard Enterprise Co. |
1,390 |
|
21,420 | ||
Intel Corp. |
4,276 |
|
186,391 | ||
International Business Machines Corp. |
943 |
|
124,674 | ||
Logitech International SA |
180 |
|
11,754 | ||
NetApp, Inc. |
238 |
|
17,433 | ||
Texas Instruments, Inc. |
970 |
|
165,143 | ||
VMware, Inc., Class A |
444 |
|
47,970 | ||
Western Union Co. (The) |
437 |
|
7,324 | ||
|
582,109 | ||||
MATERIALS — 2.3% |
|
||||
Dow, Inc. |
778 |
|
51,737 | ||
International Paper Co. |
404 |
|
18,697 | ||
LyondellBasell Industries NV, Class A |
353 |
|
37,429 | ||
Olin Corp. |
172 |
|
9,873 | ||
Sonoco Products Co. |
110 |
|
6,810 | ||
|
124,546 | ||||
REAL ESTATE — 0.8% |
|
||||
Gaming and Leisure Properties, Inc., REIT |
259 |
|
11,494 | ||
Iron Mountain, Inc., REIT |
312 |
|
16,764 | ||
Lamar Advertising Co., Class A, REIT |
95 |
|
10,489 | ||
Omega Healthcare Investors, Inc., REIT |
265 |
|
6,752 | ||
|
45,499 |
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
UTILITIES — 0.5% |
|||||
AES Corp. (The) |
761 |
$ |
15,540 | ||
Nextera Energy Partners LP |
93 |
|
6,199 | ||
UGI Corp. |
232 |
|
7,958 | ||
|
29,697 | ||||
TOTAL COMMON
STOCKS |
|
5,402,078 | |||
|
|||||
SHORT-TERM INVESTMENTS — 0.3% | |||||
Invesco Government &
Agency Portfolio - Institutional |
15,311 |
|
15,311 | ||
TOTAL SHORT
TERM INVESTMENTS |
|
15,311 | |||
TOTAL
INVESTMENTS — 99.8% |
|
5,417,389 | |||
Other Assets in Excess of Liabilities — 0.2% |
|
9,374 | |||
TOTAL NET ASSETS — 100.0% |
$ |
5,426,763 |
* Non-income producing security.
(a) The rate is the annualized seven-day yield at period end.
REIT : Real Estate Investment Trust
10
Security Type/Sector |
Percent
of | ||
Common Stocks |
| ||
Communication Services |
8.0 |
% | |
Consumer Discretionary |
5.7 |
% | |
Consumer Staples |
20.4 |
% | |
Energy |
7.3 |
% | |
Financials |
5.8 |
% | |
Health Care |
34.8 |
% | |
Industrials |
3.2 |
% | |
Information Technology |
10.7 |
% | |
Materials |
2.3 |
% | |
Real Estate |
0.8 |
% | |
Utilities |
0.5 |
% | |
Total Common Stocks |
99.5 |
% | |
Short-Term Investments |
0.3 |
% | |
Total Investments |
99.8 |
% | |
Other Assets in Excess of Liabilities |
0.2 |
% | |
Total Net Assets |
100.0 |
% |
11
Number of
|
Value | ||||
COMMON STOCKS — 99.7% |
|||||
COMMUNICATION SERVICES — 4.0% |
|||||
Activision Blizzard, Inc. |
113 |
$ |
8,543 | ||
Alphabet, Inc., Class A* |
90 |
|
205,397 | ||
AT&T, Inc. |
1,019 |
|
19,218 | ||
BCE, Inc. |
295 |
|
15,685 | ||
Comcast Corp., Class A |
644 |
|
25,605 | ||
Electronic Arts, Inc. |
42 |
|
4,958 | ||
Match Group, Inc.* |
42 |
|
3,324 | ||
Meta Platforms, Inc., Class A* |
329 |
|
65,955 | ||
Netflix, Inc.* |
65 |
|
12,373 | ||
Snap, Inc., Class A* |
197 |
|
5,607 | ||
TELUS Corp. |
446 |
|
11,154 | ||
T-Mobile US, Inc.* |
178 |
|
21,919 | ||
Twitter, Inc.* |
115 |
|
5,637 | ||
Verizon Communications, Inc. |
599 |
|
27,734 | ||
Walt Disney Co. (The)* |
258 |
|
28,801 | ||
Warner Bros Discovery, Inc.* |
245 |
|
4,447 | ||
|
466,357 | ||||
CONSUMER DISCRETIONARY — 6.9% |
|
||||
Airbnb, Inc., Class A* |
50 |
|
7,660 | ||
Amazon.com, Inc.* |
73 |
|
181,451 | ||
AutoZone, Inc.* |
4 |
|
7,822 | ||
Booking Holdings, Inc.* |
5 |
|
11,052 | ||
Chipotle Mexican Grill, Inc.* |
6 |
|
8,734 | ||
Dollar Tree, Inc.* |
30 |
|
4,874 | ||
DoorDash, Inc., Class A* |
43 |
|
3,501 | ||
eBay, Inc. |
84 |
|
4,361 | ||
Ferrari NV |
27 |
|
5,663 | ||
Ford Motor Co. |
560 |
|
7,930 | ||
Home Depot, Inc. (The) |
151 |
|
45,360 | ||
Las Vegas Sands Corp.* |
109 |
|
3,862 | ||
Lowe’s Cos., Inc. |
95 |
|
18,784 | ||
Lucid Group, Inc.* |
233 |
|
4,213 | ||
Lululemon Athletica, Inc.* |
535 |
|
189,727 | ||
Magna International, Inc. |
98 |
|
5,906 | ||
McDonald’s Corp. |
105 |
|
26,162 | ||
MercadoLibre, Inc.* |
5 |
|
4,868 | ||
NVR, Inc.* |
17 |
|
74,396 | ||
O’Reilly Automotive, Inc.* |
9 |
|
5,459 | ||
Rivian Automotive, Inc., Class A* |
125 |
|
3,780 | ||
Ross Stores, Inc. |
51 |
|
5,088 | ||
Starbucks Corp. |
163 |
|
12,166 | ||
Target Corp. |
67 |
|
15,320 | ||
Tesla, Inc.* |
149 |
|
129,743 | ||
TJX Cos., Inc. (The) |
171 |
|
10,479 | ||
Yum! Brands, Inc. |
43 |
|
5,031 | ||
|
803,392 |
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
CONSUMER STAPLES — 3.7% |
|||||
Altria Group, Inc. |
259 |
$ |
14,393 | ||
Archer-Daniels-Midland Co. |
79 |
|
7,075 | ||
Coca-Cola Co. (The) |
618 |
|
39,929 | ||
Colgate-Palmolive Co. |
120 |
|
9,246 | ||
Costco Wholesale Corp. |
247 |
|
131,335 | ||
Estee Lauder Cos., Inc. (The), Class A |
32 |
|
8,450 | ||
General Mills, Inc. |
87 |
|
6,153 | ||
Hershey Co. (The) |
19 |
|
4,290 | ||
Kimberly-Clark Corp. |
48 |
|
6,664 | ||
Kroger Co. (The) |
104 |
|
5,612 | ||
Mondelez International, Inc., Class A |
199 |
|
12,831 | ||
Monster Beverage Corp.* |
77 |
|
6,597 | ||
PepsiCo, Inc. |
197 |
|
33,827 | ||
Philip Morris International, Inc. |
223 |
|
22,300 | ||
Procter & Gamble Co. (The) |
343 |
|
55,069 | ||
Sysco Corp. |
73 |
|
6,240 | ||
Walgreens Boots Alliance, Inc. |
125 |
|
5,300 | ||
Walmart, Inc. |
396 |
|
60,584 | ||
|
435,895 | ||||
ENERGY — 2.7% |
|
||||
Baker Hughes Co. |
138 |
|
4,281 | ||
Canadian Natural Resources Ltd. |
380 |
|
23,511 | ||
Cenovus Energy, Inc. |
645 |
|
11,920 | ||
Chevron Corp. |
279 |
|
43,711 | ||
ConocoPhillips |
185 |
|
17,671 | ||
Devon Energy Corp. |
94 |
|
5,468 | ||
Enbridge, Inc. |
654 |
|
28,541 | ||
Energy Transfer LP |
438 |
|
4,853 | ||
Enterprise Products Partners LP |
311 |
|
8,058 | ||
EOG Resources, Inc. |
83 |
|
9,691 | ||
Exxon Mobil Corp. |
606 |
|
51,661 | ||
Halliburton Co. |
127 |
|
4,524 | ||
Hess Corp. |
43 |
|
4,432 | ||
Marathon Petroleum Corp. |
79 |
|
6,894 | ||
MPLX LP |
145 |
|
4,692 | ||
Occidental Petroleum Corp. |
134 |
|
7,382 | ||
ONEOK, Inc. |
65 |
|
4,116 | ||
Ovintiv, Inc. |
85 |
|
4,351 | ||
Pembina Pipeline Corp. |
177 |
|
6,699 | ||
Phillips 66 |
64 |
|
5,553 | ||
Pioneer Natural Resources Co. |
34 |
|
7,904 | ||
Schlumberger NV |
201 |
|
7,841 | ||
Suncor Energy, Inc. |
464 |
|
16,676 | ||
TC Energy Corp. |
317 |
|
16,769 | ||
Valero Energy Corp. |
58 |
|
6,466 | ||
Williams Cos., Inc. (The) |
173 |
|
5,932 | ||
|
319,597 |
12
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Continued) |
April 30, 2022
|
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
FINANCIALS — 25.0% |
|||||
Aflac, Inc. |
92 |
$ |
5,270 | ||
Alleghany Corp.* |
79 |
|
66,083 | ||
Allstate Corp. (The) |
929 |
|
117,556 | ||
American Express Co. |
435 |
|
75,999 | ||
American International Group, Inc. |
115 |
|
6,729 | ||
Ameriprise Financial, Inc. |
343 |
|
91,063 | ||
Aon PLC, Class A |
324 |
|
93,309 | ||
Apollo Global Management, Inc. |
80 |
|
3,981 | ||
Arthur J Gallagher & Co. |
414 |
|
69,755 | ||
Bank of America Corp. |
1,151 |
|
41,068 | ||
Bank of Montreal |
209 |
|
22,162 | ||
Bank of New York Mellon Corp. (The) |
117 |
|
4,921 | ||
Bank of Nova Scotia (The) |
393 |
|
24,885 | ||
Berkshire Hathaway, Inc., Class B* |
526 |
|
169,809 | ||
BlackRock, Inc. |
21 |
|
13,118 | ||
Blackstone, Inc. |
102 |
|
10,360 | ||
Brookfield Asset Management, Inc., Class A |
509 |
|
25,379 | ||
Canadian Imperial Bank of Commerce |
147 |
|
16,251 | ||
Capital One Financial Corp. |
575 |
|
71,656 | ||
Charles Schwab Corp. (The) |
257 |
|
17,047 | ||
Chubb Ltd. |
62 |
|
12,800 | ||
Citigroup, Inc. |
281 |
|
13,547 | ||
CME Group, Inc. |
53 |
|
11,625 | ||
Coinbase Global, Inc., Class A* |
21 |
|
2,367 | ||
Credit Acceptance Corp.* |
322 |
|
165,025 | ||
Discover Financial Services |
41 |
|
4,611 | ||
Everest RE Group Ltd. |
271 |
|
74,446 | ||
FactSet Research Systems, Inc. |
172 |
|
69,400 | ||
Fidelity National Financial, Inc. |
2,623 |
|
104,448 | ||
Fifth Third Bancorp |
98 |
|
3,678 | ||
Goldman Sachs Group, Inc. (The) |
319 |
|
97,451 | ||
Hartford Financial Services Group, Inc. (The) |
1,358 |
|
94,965 | ||
Intercontinental Exchange, Inc. |
79 |
|
9,149 | ||
JPMorgan Chase & Co. |
422 |
|
50,370 | ||
KKR & Co., Inc. |
83 |
|
4,231 | ||
Manulife Financial Corp. |
631 |
|
12,342 | ||
MarketAxess Holdings, Inc. |
608 |
|
160,275 | ||
Marsh & McLennan Cos., Inc. |
727 |
|
117,556 | ||
MetLife, Inc. |
117 |
|
7,685 | ||
Moody’s Corp. |
333 |
|
105,388 | ||
Morgan Stanley |
979 |
|
78,898 |
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
FINANCIALS (Continued) |
|||||
MSCI, Inc. |
149 |
$ |
62,766 | ||
PNC Financial Services Group, Inc. (The) |
60 |
|
9,966 | ||
Progressive Corp. (The) |
83 |
|
8,911 | ||
Prudential Financial, Inc. |
53 |
|
5,751 | ||
Raymond James Financial, Inc. |
1,485 |
|
144,728 | ||
Royal Bank of Canada |
460 |
|
46,474 | ||
S&P Global, Inc. |
391 |
|
147,211 | ||
SEI Investments Co. |
1,181 |
|
65,805 | ||
Signature Bank |
310 |
|
75,097 | ||
State Street Corp. |
54 |
|
3,616 | ||
Sun Life Financial, Inc. |
189 |
|
9,403 | ||
SVB Financial Group* |
7 |
|
3,413 | ||
Synchrony Financial |
2,215 |
|
81,534 | ||
T Rowe Price Group, Inc. |
31 |
|
3,814 | ||
Toronto-Dominion Bank (The) |
589 |
|
42,549 | ||
Truist Financial Corp. |
188 |
|
9,090 | ||
US Bancorp |
210 |
|
10,198 | ||
Wells Fargo & Co. |
556 |
|
24,258 | ||
|
2,901,242 | ||||
HEALTH CARE — 15.6% |
|
||||
Abbott Laboratories |
252 |
|
28,602 | ||
AbbVie, Inc. |
253 |
|
37,161 | ||
Agilent Technologies, Inc. |
41 |
|
4,890 | ||
Alcon, Inc. |
69 |
|
4,913 | ||
Align Technology, Inc.* |
11 |
|
3,189 | ||
AmerisourceBergen Corp., Class A |
29 |
|
4,387 | ||
Amgen, Inc. |
78 |
|
18,189 | ||
Anthem, Inc. |
34 |
|
17,066 | ||
Baxter International, Inc. |
905 |
|
64,309 | ||
Becton Dickinson and Co. |
43 |
|
10,629 | ||
Biogen, Inc.* |
20 |
|
4,149 | ||
Bio-Rad Laboratories, Inc., Class A* |
129 |
|
66,056 | ||
Boston Scientific Corp.* |
203 |
|
8,548 | ||
Bristol-Myers Squibb Co. |
319 |
|
24,011 | ||
Centene Corp.* |
83 |
|
6,686 | ||
Charles River Laboratories International, Inc.* |
217 |
|
52,408 | ||
Cigna Corp. |
45 |
|
11,105 | ||
CVS Health Corp. |
185 |
|
17,784 | ||
Danaher Corp. |
103 |
|
25,866 | ||
Dexcom, Inc.* |
15 |
|
6,129 | ||
Edwards Lifesciences Corp.* |
91 |
|
9,626 | ||
Eli Lilly & Co. |
138 |
|
40,314 | ||
Embecta Corp.* |
6 |
|
183 |
13
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Continued) |
April 30, 2022
|
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
HEALTH CARE (Continued) |
|||||
Gilead Sciences, Inc. |
178 |
$ |
10,562 | ||
Humana, Inc. |
185 |
|
82,244 | ||
IDEXX Laboratories, Inc.* |
158 |
|
68,016 | ||
Illumina, Inc.* |
22 |
|
6,526 | ||
Intuitive Surgical, Inc.* |
52 |
|
12,444 | ||
IQVIA Holdings, Inc.* |
29 |
|
6,322 | ||
Johnson & Johnson |
377 |
|
68,033 | ||
McKesson Corp. |
20 |
|
6,192 | ||
Medtronic PLC |
191 |
|
19,933 | ||
Merck & Co., Inc. |
361 |
|
32,017 | ||
Mettler-Toledo International, Inc.* |
91 |
|
116,255 | ||
Moderna, Inc.* |
57 |
|
7,661 | ||
Pfizer, Inc. |
802 |
|
39,354 | ||
Regeneron Pharmaceuticals, Inc.* |
163 |
|
107,435 | ||
ResMed, Inc. |
633 |
|
126,581 | ||
Stryker Corp. |
269 |
|
64,899 | ||
Thermo Fisher Scientific, Inc. |
201 |
|
111,137 | ||
UnitedHealth Group, Inc. |
301 |
|
153,073 | ||
Veeva Systems, Inc., Class A* |
745 |
|
135,553 | ||
Vertex Pharmaceuticals, Inc.* |
331 |
|
90,436 | ||
West Pharmaceutical Services, Inc. |
210 |
|
66,163 | ||
Zoetis, Inc. |
65 |
|
11,521 | ||
|
1,808,557 | ||||
INDUSTRIALS — 6.7% |
|
||||
3M Co. |
81 |
|
11,682 | ||
AMETEK, Inc. |
32 |
|
4,040 | ||
Boeing Co. (The)* |
83 |
|
12,354 | ||
Booz Allen Hamilton Holding Corp. |
1,339 |
|
109,303 | ||
Canadian National Railway Co. |
226 |
|
26,582 | ||
Canadian Pacific Railway Ltd. |
1,007 |
|
73,733 | ||
Carrier Global Corp. |
123 |
|
4,707 | ||
Caterpillar, Inc. |
78 |
|
16,422 | ||
Cintas Corp. |
16 |
|
6,356 | ||
Copart, Inc.* |
33 |
|
3,750 | ||
CSX Corp. |
313 |
|
10,748 | ||
Deere & Co. |
42 |
|
15,857 | ||
Eaton Corp. PLC |
56 |
|
8,121 | ||
Emerson Electric Co. |
85 |
|
7,665 | ||
Fastenal Co. |
81 |
|
4,480 | ||
FedEx Corp. |
39 |
|
7,751 | ||
Ferguson PLC |
30 |
|
3,741 | ||
General Dynamics Corp. |
41 |
|
9,698 | ||
General Electric Co. |
157 |
|
11,704 | ||
Honeywell International, Inc. |
99 |
|
19,157 | ||
Illinois Tool Works, Inc. |
43 |
|
8,476 |
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
INDUSTRIALS (Continued) |
|||||
Johnson Controls International PLC |
102 |
$ |
6,107 | ||
L3Harris Technologies, Inc. |
29 |
|
6,736 | ||
Leidos Holdings, Inc. |
578 |
|
59,829 | ||
Lockheed Martin Corp. |
417 |
|
180,194 | ||
Norfolk Southern Corp. |
33 |
|
8,510 | ||
Northrop Grumman Corp. |
22 |
|
9,667 | ||
Old Dominion Freight Line, Inc. |
18 |
|
5,042 | ||
Otis Worldwide Corp. |
61 |
|
4,443 | ||
PACCAR, Inc. |
50 |
|
4,153 | ||
Parker-Hannifin Corp. |
19 |
|
5,146 | ||
Raytheon Technologies Corp. |
212 |
|
20,121 | ||
Republic Services, Inc. |
44 |
|
5,908 | ||
Rockwell Automation, Inc. |
18 |
|
4,548 | ||
Thomson Reuters Corp. |
158 |
|
15,794 | ||
Trane Technologies PLC |
32 |
|
4,476 | ||
TransDigm Group, Inc.* |
6 |
|
3,569 | ||
Uber Technologies, Inc.* |
280 |
|
8,814 | ||
Union Pacific Corp. |
89 |
|
20,852 | ||
Verisk Analytics, Inc. |
23 |
|
4,693 | ||
Waste Connections, Inc. |
83 |
|
11,452 | ||
Waste Management, Inc. |
59 |
|
9,702 | ||
|
776,083 | ||||
INFORMATION TECHNOLOGY — 28.9% |
|
||||
Accenture PLC, Class A |
93 |
|
27,933 | ||
Adobe, Inc.* |
65 |
|
25,737 | ||
Advanced Micro Devices, Inc.* |
234 |
|
20,012 | ||
Akamai Technologies, Inc.* |
1,133 |
|
127,213 | ||
Amdocs Ltd. |
1,484 |
|
118,260 | ||
Amphenol Corp., Class A |
86 |
|
6,149 | ||
Analog Devices, Inc. |
76 |
|
11,733 | ||
ANSYS, Inc.* |
418 |
|
115,238 | ||
Apple, Inc. |
2,332 |
|
367,640 | ||
Applied Materials, Inc. |
628 |
|
69,300 | ||
Arista Networks, Inc.* |
42 |
|
4,854 | ||
Atlassian Corp. PLC, Class A* |
19 |
|
4,272 | ||
Autodesk, Inc.* |
29 |
|
5,489 | ||
Automatic Data Processing, Inc. |
463 |
|
101,017 | ||
Block, Inc., Class A* |
74 |
|
7,366 | ||
Broadcom, Inc. |
58 |
|
32,155 | ||
Cadence Design Systems, Inc.* |
462 |
|
69,693 | ||
CGI, Inc.* |
1,325 |
|
105,642 | ||
Cisco Systems, Inc. |
603 |
|
29,535 | ||
Cloudflare, Inc., Class A* |
41 |
|
3,532 | ||
Cognizant Technology Solutions Corp., Class A |
76 |
|
6,148 |
14
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Continued) |
April 30, 2022
|
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
INFORMATION TECHNOLOGY (Continued) | |||||
Corning, Inc. |
121 |
$ |
4,258 | ||
Crowdstrike Holdings, Inc., Class A* |
29 |
|
5,764 | ||
Datadog, Inc., Class A* |
37 |
|
4,469 | ||
Entegris, Inc. |
836 |
|
93,122 | ||
EPAM Systems, Inc.* |
494 |
|
130,905 | ||
Fidelity National Information Services, Inc. |
88 |
|
8,725 | ||
Fiserv, Inc.* |
92 |
|
9,009 | ||
Fortinet, Inc.* |
353 |
|
102,021 | ||
Genpact Ltd. |
1,759 |
|
70,835 | ||
Global Payments, Inc. |
42 |
|
5,753 | ||
GLOBALFOUNDRIES, Inc.* |
78 |
|
4,079 | ||
HP, Inc. |
154 |
|
5,641 | ||
Intel Corp. |
583 |
|
25,413 | ||
International Business Machines Corp. |
126 |
|
16,658 | ||
Intuit, Inc. |
42 |
|
17,588 | ||
Keysight Technologies, Inc.* |
30 |
|
4,208 | ||
KLA Corp. |
677 |
|
216,139 | ||
Lam Research Corp. |
165 |
|
76,850 | ||
Marvell Technology, Inc. |
121 |
|
7,028 | ||
Mastercard, Inc., Class A |
139 |
|
50,510 | ||
Microchip Technology, Inc. |
77 |
|
5,020 | ||
Micron Technology, Inc. |
161 |
|
10,979 | ||
Microsoft Corp. |
1,387 |
|
384,920 | ||
MongoDB, Inc.* |
8 |
|
2,839 | ||
Monolithic Power Systems, Inc. |
197 |
|
77,271 | ||
Motorola Solutions, Inc. |
24 |
|
5,129 | ||
NVIDIA Corp. |
355 |
|
65,842 | ||
NXP Semiconductors NV |
38 |
|
6,494 | ||
Oracle Corp. |
380 |
|
27,892 | ||
Palo Alto Networks, Inc.* |
15 |
|
8,419 | ||
Paychex, Inc. |
503 |
|
63,745 | ||
PayPal Holdings, Inc.* |
166 |
|
14,596 | ||
QUALCOMM, Inc. |
733 |
|
102,393 | ||
Roper Technologies, Inc. |
16 |
|
7,519 | ||
Salesforce.com, Inc.* |
139 |
|
24,456 | ||
ServiceNow, Inc.* |
30 |
|
14,343 | ||
Shopify, Inc., Class A* |
37 |
|
15,792 | ||
Snowflake, Inc., Class A* |
42 |
|
7,201 | ||
Synopsys, Inc.* |
351 |
|
100,663 | ||
TE Connectivity Ltd. |
46 |
|
5,740 | ||
Teledyne Technologies, Inc.* |
139 |
|
59,985 |
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
INFORMATION TECHNOLOGY (Continued) |
|||||
Texas Instruments, Inc. |
132 |
$ |
22,473 | ||
Trade Desk, Inc. (The), Class A* |
64 |
|
3,771 | ||
Ubiquiti, Inc. |
474 |
|
133,787 | ||
Visa, Inc., Class A |
235 |
|
50,086 | ||
VMware, Inc., Class A |
60 |
|
6,482 | ||
Workday, Inc., Class A* |
29 |
|
5,994 | ||
Zscaler, Inc.* |
18 |
|
3,649 | ||
|
3,355,373 | ||||
MATERIALS — 2.0% |
|
||||
Agnico Eagle Mines Ltd. |
148 |
|
8,618 | ||
Air Products and Chemicals, Inc. |
295 |
|
69,051 | ||
Barrick Gold Corp. |
576 |
|
12,851 | ||
Corteva, Inc. |
102 |
|
5,884 | ||
Dow, Inc. |
104 |
|
6,916 | ||
DuPont de Nemours, Inc. |
74 |
|
4,879 | ||
Ecolab, Inc. |
43 |
|
7,282 | ||
Franco-Nevada Corp. |
63 |
|
9,523 | ||
International Flavors & Fragrances, Inc. |
36 |
|
4,367 | ||
Linde PLC |
74 |
|
23,085 | ||
LyondellBasell Industries NV, Class A |
47 |
|
4,983 | ||
Newmont Corp. |
257 |
|
18,722 | ||
Nucor Corp. |
40 |
|
6,191 | ||
Nutrien Ltd. |
178 |
|
17,488 | ||
PPG Industries, Inc. |
33 |
|
4,224 | ||
Sherwin-Williams Co. (The) |
38 |
|
10,448 | ||
Southern Copper Corp. |
111 |
|
6,912 | ||
Teck Resources Ltd., Class B |
175 |
|
6,906 | ||
Wheaton Precious Metals Corp. |
146 |
|
6,550 | ||
|
234,880 | ||||
REAL ESTATE — 2.2% |
|
||||
Alexandria Real Estate Equities, Inc., REIT |
22 |
|
4,008 | ||
American Tower Corp., REIT |
374 |
|
90,141 | ||
AvalonBay Communities, Inc., REIT |
18 |
|
4,095 | ||
CBRE Group, Inc., Class A* |
48 |
|
3,986 | ||
Crown Castle International Corp., REIT |
62 |
|
11,483 | ||
Digital Realty Trust, Inc., REIT |
42 |
|
6,137 | ||
EastGroup Properties, Inc., REIT |
407 |
|
76,312 | ||
Equinix, Inc., REIT |
13 |
|
9,348 | ||
Equity Residential, REIT |
53 |
|
4,319 | ||
Prologis, Inc., REIT |
105 |
|
16,830 |
15
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Concluded) |
April 30, 2022
|
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
REAL ESTATE (Continued) |
|||||
Public Storage, REIT |
25 |
$ |
9,288 | ||
Realty Income Corp., REIT |
85 |
|
5,896 | ||
SBA Communications Corp., REIT |
17 |
|
5,901 | ||
Simon Property Group, Inc., REIT |
46 |
|
5,428 | ||
Welltower, Inc., REIT |
65 |
|
5,903 | ||
|
259,075 | ||||
UTILITIES — 2.0% |
|
||||
American Electric Power Co., Inc. |
76 |
|
7,532 | ||
American Water Works Co., Inc. |
381 |
|
58,705 | ||
Brookfield Infrastructure Partners LP |
100 |
|
6,243 | ||
Consolidated Edison, Inc. |
52 |
|
4,822 | ||
Constellation Energy Corp. |
4 |
|
217 | ||
Dominion Energy, Inc. |
114 |
|
9,307 | ||
Duke Energy Corp. |
111 |
|
12,228 | ||
Evergy, Inc. |
868 |
|
58,894 | ||
Eversource Energy |
50 |
|
4,370 | ||
Exelon Corp. |
138 |
|
6,456 | ||
Fortis, Inc. |
153 |
|
7,443 | ||
NextEra Energy, Inc. |
293 |
|
20,809 | ||
Public Service Enterprise Group, Inc. |
72 |
|
5,016 | ||
Sempra Energy |
45 |
|
7,261 | ||
Southern Co. (The) |
149 |
|
10,935 | ||
WEC Energy Group, Inc. |
44 |
|
4,402 | ||
Xcel Energy, Inc. |
77 |
|
5,641 | ||
|
230,281 | ||||
TOTAL COMMON
STOCKS |
|
11,590,732 |
Number of
|
Value | |||||
SHORT-TERM INVESTMENTS — 0.3% |
||||||
Invesco
Government & Agency Portfolio - Institutional |
32,013 |
$32,013 | ||||
TOTAL SHORT
TERM INVESTMENTS |
|
32,013 |
| |||
TOTAL
INVESTMENTS — 100.0% |
|
11,622,745 |
| |||
Liabilities in Excess of Other Assets — (0.0)% |
|
(1,567 |
) | |||
TOTAL NET ASSETS — 100.0% |
$ |
11,621,178 |
|
* Non-income producing security.
(a) The rate is the annualized seven-day yield at period end.
REIT : Real Estate Investment Trust
16
Security Type/Sector |
Percent
of | ||
Common Stocks |
| ||
Communication Services |
4.0 |
% | |
Consumer Discretionary |
6.9 |
% | |
Consumer Staples |
3.7 |
% | |
Energy |
2.7 |
% | |
Financials |
25.0 |
% | |
Health Care |
15.6 |
% | |
Industrials |
6.7 |
% | |
Information Technology |
28.9 |
% | |
Materials |
2.0 |
% | |
Real Estate |
2.2 |
% | |
Utilities |
2.0 |
% | |
Total Common Stocks |
99.7 |
% | |
Short-Term Investments |
0.3 |
% | |
Total Investments |
100.0 |
% | |
Liabilities in Excess of Other Assets |
(0.0 |
)% | |
Total Net Assets |
100.0 |
% |
17
Number of
|
Value | ||||
COMMON STOCKS — 99.8% |
|||||
CONSUMER DISCRETIONARY — 18.4% |
|||||
AutoZone, Inc.* |
145 |
$ |
283,543 | ||
Home Depot, Inc. (The) |
2,339 |
|
702,636 | ||
Lowe’s Cos., Inc. |
2,150 |
|
425,120 | ||
Lululemon Athletica, Inc.* |
821 |
|
291,151 | ||
O’Reilly Automotive, Inc.* |
440 |
|
266,882 | ||
Pool Corp. |
609 |
|
246,779 | ||
Tractor Supply Co. |
1,162 |
|
234,085 | ||
Ulta Beauty, Inc.* |
664 |
|
263,475 | ||
Williams-Sonoma, Inc. |
1,711 |
|
223,251 | ||
|
2,936,922 | ||||
CONSUMER STAPLES — 12.1% |
|
||||
BJ’s Wholesale Club Holdings, Inc.* |
3,637 |
|
234,041 | ||
Costco Wholesale Corp. |
1,068 |
|
567,877 | ||
Flowers Foods, Inc. |
9,345 |
|
247,829 | ||
Walmart, Inc. |
5,715 |
|
874,338 | ||
|
1,924,085 | ||||
ENERGY — 17.5% |
|
||||
Canadian Natural Resources Ltd. |
7,742 |
|
478,998 | ||
Cenovus Energy, Inc. |
20,697 |
|
382,481 | ||
ConocoPhillips |
4,266 |
|
407,488 | ||
Continental Resources, Inc. |
4,331 |
|
240,674 | ||
Diamondback Energy, Inc. |
1,960 |
|
247,411 | ||
EOG Resources, Inc. |
2,823 |
|
329,613 | ||
Matador Resources Co. |
4,558 |
|
222,522 | ||
Murphy Oil Corp. |
5,978 |
|
227,642 | ||
Southwestern Energy Co.* |
34,041 |
|
255,307 | ||
|
2,792,136 | ||||
FINANCIALS — 1.8% |
|
||||
Blackstone, Inc. |
2,878 |
|
292,318 | ||
HEALTH CARE — 10.1% |
|
||||
Cerner Corp. |
2,920 |
|
273,429 | ||
Edwards Lifesciences Corp.* |
2,906 |
|
307,397 | ||
IDEXX Laboratories, Inc.* |
550 |
|
236,764 | ||
Mettler-Toledo International, Inc.* |
203 |
|
259,338 | ||
Regeneron Pharmaceuticals, Inc.* |
493 |
|
324,941 | ||
West Pharmaceutical Services, Inc. |
678 |
|
213,611 | ||
|
1,615,480 | ||||
INDUSTRIALS — 9.0% |
|
||||
Builders FirstSource, Inc.* |
3,861 |
|
237,722 | ||
Fastenal Co. |
4,771 |
|
263,884 | ||
Landstar System, Inc. |
1,596 |
|
247,220 | ||
Matson, Inc. |
1,988 |
|
171,008 | ||
Rollins, Inc. |
7,359 |
|
246,821 | ||
WW Grainger, Inc. |
526 |
|
263,016 | ||
|
1,429,671 |
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
INFORMATION TECHNOLOGY — 18.6% |
|||||
Apple, Inc. |
7,746 |
$ |
1,221,157 | ||
Arista Networks, Inc.* |
2,130 |
|
246,164 | ||
Cadence Design Systems, Inc.* |
1,828 |
|
275,754 | ||
Fortinet, Inc.* |
925 |
|
267,334 | ||
Gartner, Inc.* |
904 |
|
262,657 | ||
Manhattan Associates, Inc.* |
1,767 |
|
230,682 | ||
Monolithic Power Systems, Inc. |
547 |
|
214,555 | ||
Ubiquiti, Inc. |
888 |
|
250,638 | ||
|
2,968,941 | ||||
MATERIALS — 12.3% |
|
||||
CF Industries Holdings, Inc. |
2,564 |
|
248,272 | ||
ICL Group Ltd. |
21,194 |
|
232,498 | ||
Louisiana-Pacific Corp. |
3,865 |
|
249,370 | ||
Mosaic Co. (The) |
4,041 |
|
252,239 | ||
Nucor Corp. |
1,968 |
|
304,607 | ||
Nutrien Ltd. |
4,105 |
|
403,317 | ||
Steel Dynamics, Inc. |
3,079 |
|
264,024 | ||
|
1,954,327 | ||||
TOTAL COMMON
STOCKS |
|
15,913,880 | |||
|
|||||
SHORT-TERM INVESTMENTS — 0.2% |
|||||
Invesco Government &
Agency Portfolio - Institutional |
25,602 |
|
25,602 | ||
TOTAL SHORT
TERM INVESTMENTS |
|
25,602 | |||
TOTAL
INVESTMENTS — 100.0% |
|
15,939,482 | |||
Other Assets in Excess of Liabilities — 0.0% |
|
476 | |||
TOTAL NET ASSETS — 100.0% |
$ |
15,939,958 |
* Non-income producing security.
(a) The rate is the annualized seven-day yield at period end.
18
Security Type/Sector |
Percent
of | ||
Common Stocks |
| ||
Consumer Discretionary |
18.4 |
% | |
Consumer Staples |
12.1 |
% | |
Energy |
17.5 |
% | |
Financials |
1.8 |
% | |
Health Care |
10.1 |
% | |
Industrials |
9.0 |
% | |
Information Technology |
18.6 |
% | |
Materials |
12.3 |
% | |
Total Common Stocks |
99.8 |
% | |
Short-Term Investments |
0.2 |
% | |
Total Investments |
100.0 |
% | |
Other Assets in Excess of Liabilities |
0.0 |
% | |
Total Net Assets |
100.0 |
% |
19
Number of
|
Value | ||||
COMMON STOCKS — 99.8% |
|||||
COMMUNICATION SERVICES — 2.1% |
|||||
Gray Television, Inc., Class A |
1,967 |
$ |
33,697 | ||
Nexstar Media Group, Inc., Class A |
302 |
|
47,843 | ||
TEGNA, Inc. |
1,661 |
|
36,625 | ||
|
118,165 | ||||
CONSUMER DISCRETIONARY — 8.3% |
|
||||
AutoNation, Inc.* |
251 |
|
29,093 | ||
Century Communities, Inc. |
223 |
|
11,757 | ||
Dick’s Sporting Goods, Inc. |
388 |
|
37,411 | ||
Group 1 Automotive, Inc. |
182 |
|
31,693 | ||
Lennar Corp., Class A |
1,421 |
|
108,692 | ||
MDC Holdings, Inc. |
1,392 |
|
51,379 | ||
Meritage Homes Corp.* |
570 |
|
47,054 | ||
Penske Automotive Group, Inc. |
311 |
|
32,599 | ||
Qurate Retail, Inc., Series A |
3,297 |
|
13,880 | ||
Rent-A-Center, Inc./TX |
252 |
|
6,078 | ||
Taylor Morrison Home Corp.* |
678 |
|
17,757 | ||
Toll Brothers, Inc. |
722 |
|
33,479 | ||
Tri Pointe Homes, Inc.* |
1,719 |
|
35,532 | ||
|
456,404 | ||||
CONSUMER STAPLES — 8.6% |
|
||||
Ingredion, Inc. |
340 |
|
28,937 | ||
Kroger Co. (The) |
2,988 |
|
161,233 | ||
Sprouts Farmers Market, Inc.* |
693 |
|
20,651 | ||
Tyson Foods, Inc., Class A |
1,117 |
|
104,060 | ||
United Natural Foods, Inc.* |
353 |
|
15,154 | ||
Walgreens Boots Alliance, Inc. |
3,128 |
|
132,627 | ||
Weis Markets, Inc. |
133 |
|
10,624 | ||
|
473,286 | ||||
ENERGY — 17.5% |
|
||||
Civitas Resources, Inc. |
652 |
|
38,220 | ||
Continental Resources, Inc./OK |
1,321 |
|
73,408 | ||
Energy Transfer LP |
11,098 |
|
122,966 | ||
EOG Resources, Inc. |
2,118 |
|
247,298 | ||
Frontline Ltd.* |
1,622 |
|
13,511 | ||
HF Sinclair Corp.* |
860 |
|
32,697 | ||
Marathon Petroleum Corp. |
2,011 |
|
175,480 | ||
Murphy Oil Corp. |
657 |
|
25,019 | ||
Plains All American Pipeline LP |
2,962 |
|
30,686 | ||
Plains GP Holdings LP, Class A* |
976 |
|
10,902 | ||
Valero Energy Corp. |
1,513 |
|
168,669 | ||
World Fuel Services Corp. |
1,177 |
|
28,507 | ||
|
967,363 |
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
FINANCIALS — 30.1% |
|||||
American National Group, Inc. |
105 |
$ |
19,804 | ||
Ameris Bancorp |
284 |
|
11,843 | ||
Associated Banc-Corp. |
658 |
|
13,127 | ||
Bank OZK |
480 |
|
18,442 | ||
Banner Corp. |
241 |
|
12,942 | ||
Cadence Bank |
756 |
|
18,930 | ||
Capital One Financial Corp. |
1,689 |
|
210,483 | ||
Citizens Financial Group, Inc. |
1,527 |
|
60,164 | ||
CNA Financial Corp. |
980 |
|
46,491 | ||
Customers Bancorp, Inc.* |
230 |
|
9,676 | ||
Encore Capital Group, Inc.* |
1,183 |
|
68,389 | ||
Enstar Group Ltd.* |
77 |
|
18,153 | ||
First Financial Bancorp |
497 |
|
10,164 | ||
Flagstar Bancorp, Inc. |
323 |
|
11,402 | ||
FNB Corp./PA |
2,722 |
|
31,357 | ||
FS KKR Capital Corp. |
1,226 |
|
25,685 | ||
Fulton Financial Corp. |
1,034 |
|
15,686 | ||
Genworth Financial, Inc., Class A* |
3,520 |
|
13,059 | ||
Hope Bancorp, Inc. |
445 |
|
6,364 | ||
Jefferies Financial Group, Inc. |
980 |
|
30,145 | ||
Lincoln National Corp. |
768 |
|
46,195 | ||
M&T Bank Corp. |
474 |
|
78,987 | ||
MetLife, Inc. |
3,080 |
|
202,294 | ||
Nelnet, Inc., Class A |
128 |
|
10,505 | ||
New York Community Bancorp, Inc. |
3,042 |
|
28,108 | ||
Principal Financial Group, Inc. |
984 |
|
67,050 | ||
Sandy Spring Bancorp, Inc. |
241 |
|
9,464 | ||
State Street Corp. |
1,321 |
|
88,467 | ||
Synovus Financial Corp. |
595 |
|
24,716 | ||
Towne Bank/Portsmouth VA |
276 |
|
7,609 | ||
Truist Financial Corp. |
4,726 |
|
228,502 | ||
Trustmark Corp. |
392 |
|
10,929 | ||
United Bankshares, Inc./WV |
898 |
|
29,868 | ||
Unum Group |
1,319 |
|
40,256 | ||
Valley National Bancorp |
2,122 |
|
25,422 | ||
Victory Capital Holdings, Inc., Class A |
544 |
|
14,683 | ||
Voya Financial, Inc. |
388 |
|
24,498 | ||
Washington Federal, Inc. |
595 |
|
18,106 | ||
White Mountains Insurance Group Ltd. |
21 |
|
22,008 | ||
Zions Bancorp NA |
545 |
|
30,798 | ||
|
1,660,771 |
20
QRAFT AI-Enhanced U.S. Next Value ETF SCHEDULE OF INVESTMENTS (Concluded) |
April 30, 2022
|
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
HEALTH CARE — 18.0% |
|||||
Bio-Rad Laboratories, Inc., Class A* |
129 |
$ |
66,056 | ||
Centene Corp.* |
2,252 |
|
181,399 | ||
Cigna Corp. |
1,241 |
|
306,254 | ||
CVS Health Corp. |
4,566 |
|
438,929 | ||
|
992,638 | ||||
INDUSTRIALS — 5.1% |
|
||||
AAR Corp.* |
173 |
|
8,128 | ||
AerCap Holdings NV* |
1,065 |
|
49,746 | ||
Air Lease Corp. |
915 |
|
36,856 | ||
Atlas Corp. |
957 |
|
11,829 | ||
Danaos Corp. |
229 |
|
18,718 | ||
GMS, Inc.* |
201 |
|
9,638 | ||
Hub Group, Inc., Class A* |
342 |
|
22,969 | ||
ICF International, Inc. |
366 |
|
36,164 | ||
ManpowerGroup, Inc. |
198 |
|
17,860 | ||
WESCO International, Inc.* |
546 |
|
67,300 | ||
|
279,208 | ||||
INFORMATION TECHNOLOGY — 7.6% |
|
||||
Amkor Technology, Inc. |
926 |
|
17,418 | ||
Arrow Electronics, Inc.* |
389 |
|
45,847 | ||
Avnet, Inc. |
665 |
|
29,034 | ||
Insight Enterprises, Inc.* |
193 |
|
19,178 | ||
Sanmina Corp.* |
486 |
|
19,873 | ||
TD SYNNEX Corp. |
869 |
|
86,978 | ||
Vishay Intertechnology, Inc. |
547 |
|
10,191 | ||
VMware, Inc., Class A |
1,564 |
|
168,975 | ||
Xerox Holdings Corp. |
1,217 |
|
21,176 | ||
|
418,670 |
Number of
|
Value | ||||
COMMON STOCKS (Continued) |
|||||
MATERIALS — 2.5% |
|||||
Commercial Metals Co. |
1,386 |
$ |
56,826 | ||
Reliance Steel & Aluminum Co. |
421 |
|
83,463 | ||
|
140,289 | ||||
TOTAL COMMON
STOCKS |
|
5,506,794 | |||
|
|||||
SHORT-TERM INVESTMENTS — 0.2% |
|
||||
Invesco Government &
Agency Portfolio - Institutional |
10,538 |
|
10,538 | ||
TOTAL SHORT
TERM INVESTMENTS |
|
10,538 | |||
TOTAL
INVESTMENTS — 100.0% |
|
5,517,332 | |||
Other Assets in Excess of
|
|
1,414 | |||
TOTAL NET ASSETS — 100.0% |
$ |
5,518,746 |
* Non-income producing security.
(a) The rate is the annualized seven-day yield at period end.
21
Security Type/Sector |
Percent
of | ||
Common Stocks |
| ||
Communication Services |
2.1 |
% | |
Consumer Discretionary |
8.3 |
% | |
Consumer Staples |
8.6 |
% | |
Energy |
17.5 |
% | |
Financials |
30.1 |
% | |
Health Care |
18.0 |
% | |
Industrials |
5.1 |
% | |
Information Technology |
7.6 |
% | |
Materials |
2.5 |
% | |
Total Common Stocks |
99.8 |
% | |
Short-Term Investments |
0.2 |
% | |
Total Investments |
100.0 |
% | |
Other Assets in Excess of Liabilities |
0.0 |
% | |
Total Net Assets |
100.0 |
% |
22
|
QRAFT
|
QRAFT
|
QRAFT
|
QRAFT
| ||||||||||||
Assets: |
|
|
|
|
|
|
|
| ||||||||
Investments, at value |
$ |
5,417,389 |
|
$ |
11,622,745 |
|
$ |
15,939,482 |
|
$ |
5,517,332 |
| ||||
Dividends receivable |
|
10,715 |
|
|
8,002 |
|
|
10,817 |
|
|
4,470 |
| ||||
Investment securities sold |
|
1,484 |
|
|
145 |
|
|
— |
|
|
644 |
| ||||
Foreign tax reclaim |
|
673 |
|
|
166 |
|
|
831 |
|
|
— |
| ||||
Total Assets |
|
5,430,261 |
|
|
11,631,058 |
|
|
15,951,130 |
|
|
5,522,446 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Liabilities: |
|
|
|
|
|
|
|
| ||||||||
Advisory fee payable |
|
3,498 |
|
|
9,880 |
|
|
11,172 |
|
|
3,700 |
| ||||
Total Liabilities |
|
3,498 |
|
|
9,880 |
|
|
11,172 |
|
|
3,700 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Net Assets |
$ |
5,426,763 |
|
$ |
11,621,178 |
|
$ |
15,939,958 |
|
$ |
5,518,746 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Net Assets Consist of: |
|
|
|
|
|
|
|
| ||||||||
Paid-in capital |
$ |
6,052,916 |
|
$ |
15,207,095 |
|
$ |
28,736,612 |
|
$ |
6,414,908 |
| ||||
Distributable earnings (loss) |
|
(626,153 |
) |
|
(3,585,917 |
) |
|
(12,796,654 |
) |
|
(896,162 |
) | ||||
Net Assets |
$ |
5,426,763 |
|
$ |
11,621,178 |
|
$ |
15,939,958 |
|
$ |
5,518,746 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Net Assets |
$ |
5,426,763 |
|
$ |
11,621,178 |
|
$ |
15,939,958 |
|
$ |
5,518,746 |
| ||||
Shares of
Beneficial Interest Outstanding |
|
175,000 |
|
|
300,001 |
|
|
575,001 |
|
|
175,000 |
| ||||
Net Asset Value, Offering and Redemption Price Per Share |
$ |
31.01 |
|
$ |
38.74 |
|
$ |
27.72 |
|
$ |
31.54 |
| ||||
Investments, at cost |
$ |
5,463,162 |
|
$ |
12,719,390 |
|
$ |
17,087,548 |
|
$ |
5,711,904 |
|
23
QRAFT
|
QRAFT
|
QRAFT
|
QRAFT
| |||||||||||||
|
Year
Ended |
Year
Ended |
Year
Ended |
Year
Ended | ||||||||||||
Investment Income: |
|
|
|
|
|
|
|
| ||||||||
Dividends* |
$ |
167,018 |
|
$ |
172,930 |
|
$ |
221,506 |
|
$ |
143,388 |
| ||||
Total Investment Income |
|
167,018 |
|
|
172,930 |
|
|
221,506 |
|
|
143,388 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Expenses: |
|
|
|
|
|
|
|
| ||||||||
Advisory fees |
|
45,385 |
|
|
144,851 |
|
|
213,522 |
|
|
45,236 |
| ||||
Total Expenses |
|
45,385 |
|
|
144,851 |
|
|
213,522 |
|
|
45,236 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Net Investment Income (Loss) |
|
121,633 |
|
|
28,079 |
|
|
7,984 |
|
|
98,152 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss) |
|
|
|
|
|
|
|
| ||||||||
Net realized gain (loss) from: |
|
|
|
|
|
|
|
| ||||||||
Investments |
|
(389,942 |
) |
|
(2,920,959 |
) |
|
(12,189,427 |
) |
|
(840,934 |
) | ||||
In-kind redemptions |
|
832,816 |
|
|
4,256,145 |
|
|
9,603,490 |
|
|
1,425,314 |
| ||||
Foreign currency transactions |
|
(11 |
) |
|
62 |
|
|
— |
|
|
24 |
| ||||
Net realized gain (loss) |
|
442,863 |
|
|
1,335,248 |
|
|
(2,585,937 |
) |
|
584,404 |
| ||||
Net change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
|
|
| ||||||||
Investments |
|
(288,760 |
) |
|
(1,771,962 |
) |
|
(1,710,381 |
) |
|
(497,144 |
) | ||||
Net change in unrealized appreciation (depreciation) |
|
(288,760 |
) |
|
(1,771,962 |
) |
|
(1,710,381 |
) |
|
(497,144 |
) | ||||
Net realized and unrealized gain (loss) |
|
154,103 |
|
|
(436,714 |
) |
|
(4,296,318 |
) |
|
87,260 |
| ||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ |
275,736 |
|
$ |
(408,635 |
) |
$ |
(4,288,334 |
) |
$ |
185,412 |
| ||||
*Net of foreign withholding taxes |
$ |
2,797 |
|
$ |
4,035 |
|
$ |
927 |
|
$ |
522 |
|
24
QRAFT
AI-Enhanced |
QRAFT
AI-Enhanced | |||||||||||||||
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
| ||||||||||||
From Investment Activities: |
|
|
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
| ||||||||
Net investment income (loss) |
$ |
121,633 |
|
$ |
65,199 |
|
$ |
28,079 |
|
$ |
(8,565 |
) | ||||
Net realized gain (loss) |
|
442,863 |
|
|
887,204 |
|
|
1,335,248 |
|
|
3,739,203 |
| ||||
Change in net unrealized appreciation (depreciation) |
|
(288,760 |
) |
|
140,510 |
|
|
(1,771,962 |
) |
|
413,245 |
| ||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
|
275,736 |
|
|
1,092,913 |
|
|
(408,635 |
) |
|
4,143,883 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders |
|
(119,751 |
) |
|
(66,291 |
) |
|
(12,969 |
) |
|
(412,139 |
) | ||||
|
|
|
|
|
|
|
| |||||||||
Capital Transactions: |
|
|
|
|
|
|
|
| ||||||||
Proceeds from shares issued |
|
10,245,459 |
|
|
7,004,904 |
|
|
33,253,331 |
|
|
46,924,423 |
| ||||
Cost of shares redeemed |
|
(10,277,772 |
) |
|
(5,501,250 |
) |
|
(41,521,513 |
) |
|
(33,699,275 |
) | ||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions |
|
(32,313 |
) |
|
1,503,654 |
|
|
(8,268,182 |
) |
|
13,225,148 |
| ||||
Total Increase (Decrease) in Net Assets |
|
123,672 |
|
|
2,530,276 |
|
|
(8,689,786 |
) |
|
16,956,892 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: |
|
|
|
|
|
|
|
| ||||||||
Beginning of period |
|
5,303,091 |
|
|
2,772,815 |
|
|
20,310,964 |
|
|
3,354,072 |
| ||||
End of period |
$ |
5,426,763 |
|
$ |
5,303,091 |
|
$ |
11,621,178 |
|
$ |
20,310,964 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Change in Shares Outstanding: |
|
|
|
|
|
|
|
| ||||||||
Shares outstanding, beginning of period |
|
175,000 |
|
|
125,000 |
|
|
500,001 |
|
|
125,001 |
| ||||
Shares issued |
|
325,000 |
|
|
250,000 |
|
|
775,000 |
|
|
1,250,000 |
| ||||
Shares redeemed |
|
(325,000 |
) |
|
(200,000 |
) |
|
(975,000 |
) |
|
(875,000 |
) | ||||
Shares outstanding, end of period |
|
175,000 |
|
|
175,000 |
|
|
300,001 |
|
|
500,001 |
|
25
EXCHANGE LISTED FUNDS TRUST STATEMENTS OF CHANGES IN NET ASSETS (Concluded) |
|
QRAFT AI-Enhanced
|
QRAFT AI-Enhanced
| |||||||||||||||
|
Year
Ended |
Year
Ended |
Year
Ended |
For the period
| ||||||||||||
From Investment Activities: |
|
|
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
| ||||||||
Net investment income (loss) |
$ |
7,984 |
|
$ |
(7,050 |
) |
$ |
98,152 |
|
$ |
12,984 |
| ||||
Net realized gain (loss) |
|
(2,585,937 |
) |
|
1,914,060 |
|
|
584,404 |
|
|
532,226 |
| ||||
Change in net unrealized appreciation (depreciation) |
|
(1,710,381 |
) |
|
586,040 |
|
|
(497,144 |
) |
|
302,572 |
| ||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
|
(4,288,334 |
) |
|
2,493,050 |
|
|
185,412 |
|
|
847,782 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders |
|
(206,693 |
) |
|
(1,169,034 |
) |
|
(105,822 |
) |
|
(12,192 |
) | ||||
|
|
|
|
|
|
|
| |||||||||
Capital Transactions: |
|
|
|
|
|
|
|
| ||||||||
Proceeds from shares issued |
|
106,001,332 |
|
|
24,712,501 |
|
|
17,074,429 |
|
|
9,898,443 |
| ||||
Cost of shares redeemed |
|
(107,558,504 |
) |
|
(6,619,487 |
) |
|
(16,375,345 |
) |
|
(5,993,961 |
) | ||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions |
|
(1,557,172 |
) |
|
18,093,014 |
|
|
699,084 |
|
|
3,904,482 |
| ||||
Total Increase (Decrease) in Net Assets |
|
(6,052,199 |
) |
|
19,417,030 |
|
|
778,674 |
|
|
4,740,072 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: |
|
|
|
|
|
|
|
| ||||||||
Beginning of period |
|
21,992,157 |
|
|
2,575,127 |
|
|
4,740,072 |
|
|
— |
| ||||
End of period |
$ |
15,939,958 |
|
$ |
21,992,157 |
|
$ |
5,518,746 |
|
$ |
4,740,072 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Change in Shares Outstanding: |
|
|
|
|
|
|
|
| ||||||||
Shares outstanding, beginning of period |
|
625,001 |
|
|
100,001 |
|
|
150,000 |
|
|
— |
| ||||
Shares issued |
|
2,925,000 |
|
|
725,000 |
|
|
525,000 |
|
|
350,000 |
| ||||
Shares redeemed |
|
(2,975,000 |
) |
|
(200,000 |
) |
|
(500,000 |
) |
|
(200,000 |
) | ||||
Shares outstanding, end of period |
|
575,001 |
|
|
625,001 |
|
|
175,000 |
|
|
150,000 |
|
(1) Commencement of operations.
26
QRAFT AI-Enhanced
U.S. High Dividend ETF |
|
For the period
| ||||||||||
2022 |
2021 |
|||||||||||
Net Asset Value, beginning of period |
$ |
30.30 |
|
$ |
22.18 |
|
$ |
24.79 |
| |||
Investment Activities |
|
|
|
|
|
| ||||||
Net investment income (loss)(2) |
|
0.63 |
|
|
0.53 |
|
|
0.09 |
| |||
Net realized and unrealized gain (loss) |
|
0.72 |
|
|
8.11 |
|
|
(2.70 |
) | |||
Total from investment activities |
|
1.35 |
|
|
8.64 |
|
|
(2.61 |
) | |||
Distributions to shareholders from: |
|
|
|
|
|
| ||||||
Net investment income |
|
(0.64 |
) |
|
(0.52 |
) |
|
— |
| |||
Total distributions |
|
(0.64 |
) |
|
(0.52 |
) |
|
— |
| |||
Net Asset Value, end of period |
$ |
31.01 |
|
$ |
30.30 |
|
$ |
22.18 |
| |||
Total Return (%) |
|
4.45 |
|
|
39.50 |
|
|
(10.53 |
)(3) | |||
Total Return at Market Price (%) |
|
4.36 |
|
|
39.21 |
|
|
(10.29 |
)(3) | |||
Ratios to Average Net Assets |
|
|
|
|
|
| ||||||
Expenses (%) |
|
0.75 |
|
|
0.75 |
|
|
0.75 |
(4) | |||
Net investment income (loss) (%) |
|
2.01 |
|
|
2.05 |
|
|
2.46 |
(4) | |||
Supplemental Data |
|
|
|
|
|
| ||||||
Net Assets at end of period (000’s) |
$ |
5,427 |
|
$ |
5,303 |
|
$ |
2,773 |
| |||
Portfolio turnover (%)(5) |
|
208 |
|
|
198 |
|
|
45 |
(3) |
QRAFT AI-Enhanced
U.S. Large Cap ETF |
|
For the period
| ||||||||||
2022 |
2021 |
|||||||||||
Net Asset Value, beginning of period |
$ |
40.62 |
|
$ |
26.83 |
|
$ |
24.73 |
| |||
Investment Activities |
|
|
|
|
|
| ||||||
Net investment income (loss)(2) |
|
0.06 |
|
|
(0.02 |
) |
|
0.14 |
| |||
Net realized and unrealized gain (loss) |
|
(1.91 |
) |
|
14.50 |
|
|
3.07 |
| |||
Total from investment activities |
|
(1.85 |
) |
|
14.48 |
|
|
3.21 |
| |||
Distributions to shareholders from: |
|
|
|
|
|
| ||||||
Net investment income |
|
(0.03 |
) |
|
(0.02 |
) |
|
(0.12 |
) | |||
Net realized gain |
|
— |
|
|
(0.67 |
) |
|
(0.99 |
) | |||
Total distributions |
|
(0.03 |
) |
|
(0.69 |
) |
|
(1.11 |
) | |||
Net Asset Value, end of period |
$ |
38.74 |
|
$ |
40.62 |
|
$ |
26.83 |
| |||
Total Return (%) |
|
(4.57 |
) |
|
54.12 |
|
|
12.84 |
(3) | |||
Total Return at Market Price (%) |
|
(4.63 |
) |
|
53.83 |
|
|
12.96 |
(3) | |||
Ratios to Average Net Assets |
|
|
|
|
|
| ||||||
Expenses (%) |
|
0.75 |
|
|
0.75 |
|
|
0.75 |
(4) | |||
Net investment income (loss) (%) |
|
0.15 |
|
|
(0.06 |
) |
|
0.56 |
(4) | |||
Supplemental Data |
|
|
|
|
|
| ||||||
Net Assets at end of period (000’s) |
$ |
11,621 |
|
$ |
20,311 |
|
$ |
3,354 |
| |||
Portfolio turnover (%)(5) |
|
180 |
|
|
263 |
|
|
219 |
(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.
27
EXCHANGE LISTED FUNDS TRUST FINANCIAL HIGHLIGHTS (Concluded) |
QRAFT AI-Enhanced
U.S. Large Cap Momentum ETF |
|
For the period
| ||||||||||
2022 |
2021 |
|||||||||||
Net Asset Value, beginning of period |
$ |
35.19 |
|
$ |
25.75 |
|
$ |
24.70 |
| |||
Investment Activities |
|
|
|
|
|
| ||||||
Net investment income (loss)(2) |
|
0.01 |
|
|
(0.04 |
) |
|
0.07 |
| |||
Net realized and unrealized gain (loss) |
|
(7.21 |
) |
|
17.27 |
|
|
2.41 |
| |||
Total from investment activities |
|
(7.20 |
) |
|
17.23 |
|
|
2.48 |
| |||
Distributions to shareholders from: |
|
|
|
|
|
| ||||||
Net investment income |
|
(0.01 |
) |
|
(0.02 |
) |
|
(0.04 |
) | |||
Net realized gain |
|
(0.26 |
) |
|
(7.77 |
) |
|
(1.39 |
) | |||
Total distributions |
|
(0.27 |
) |
|
(7.79 |
) |
|
(1.43 |
) | |||
Net Asset Value, end of period |
$ |
27.72 |
|
$ |
35.19 |
|
$ |
25.75 |
| |||
Total Return (%) |
|
(20.63 |
) |
|
69.95 |
|
|
9.99 |
(3) | |||
Total Return at Market Price (%) |
|
(20.67 |
) |
|
69.50 |
|
|
10.16 |
(3) | |||
Ratios to Average Net Assets |
|
|
|
|
|
| ||||||
Expenses (%) |
|
0.75 |
|
|
0.75 |
|
|
0.75 |
(4) | |||
Net investment income (loss) (%) |
|
0.03 |
|
|
(0.13 |
) |
|
0.28 |
(4) | |||
Supplemental Data |
|
|
|
|
|
| ||||||
Net Assets at end of period (000’s) |
$ |
15,940 |
|
$ |
21,992 |
|
$ |
2,575 |
| |||
Portfolio turnover (%)(5) |
|
790 |
|
|
346 |
|
|
275 |
(3) |
QRAFT AI-Enhanced
U.S. Next Value ETF |
Year Ended |
For the period
| ||||||
Net Asset Value, beginning of period |
$ |
31.60 |
|
$ |
25.14 |
| ||
Investment Activities |
|
|
|
| ||||
Net investment income (loss)(2) |
|
0.52 |
|
|
0.10 |
| ||
Net realized and unrealized gain (loss) |
|
0.01 |
|
|
6.46 |
| ||
Total from investment activities |
|
0.53 |
|
|
6.56 |
| ||
Distributions to shareholders from: |
|
|
|
| ||||
Net investment income |
|
(0.44 |
) |
|
(0.10 |
) | ||
Net realized gain |
|
(0.15 |
) |
|
— |
| ||
Total distributions |
|
(0.59 |
) |
|
(0.10 |
) | ||
Net Asset Value, end of period |
$ |
31.54 |
|
$ |
31.60 |
| ||
Total Return (%) |
|
1.62 |
|
|
26.10 |
(3) | ||
Total Return at Market Price (%) |
|
1.32 |
|
|
26.89 |
(3) | ||
Ratios to Average Net Assets |
|
|
|
| ||||
Expenses (%) |
|
0.75 |
|
|
0.75 |
(4) | ||
Net investment income (loss) (%) |
|
1.63 |
|
|
0.83 |
(4) | ||
Supplemental Data |
|
|
|
| ||||
Net Assets at end of period (000’s) |
$ |
5,519 |
|
$ |
4,740 |
| ||
Portfolio turnover (%)(5) |
|
379 |
|
|
173 |
(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.
28
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 presented herein relate to the funds listed below and are individually referred to as a “Fund” or collectively as the “Funds”:
QRAFT AI-Enhanced U.S. High Dividend ETF
QRAFT AI-Enhanced U.S. Large Cap ETF
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF
QRAFT AI-Enhanced U.S. Next Value ETF
Each 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, actively managed ETFs use an active investment strategy in seeking to meet their investment objectives. Actively managed ETFs are required to publish their portfolio holdings on a daily basis. The availability of this information, which is used by, among others, large institutional investors when deciding to purchase or redeem Creation Units of the ETF, is designed to ensure that shares of the ETF do not trade at a material premium or discount in relation to NAV per share.
The QRAFT AI-Enhanced U.S. High Dividend ETF seeks to achieve its investment objective by investing at least 80% of its net assets, plus the amounts of any borrowings for investment purposes, in dividend paying securities of U.S. listed companies. Each of the QRAFT AI-Enhanced U.S. Large Cap ETF and the QRAFT AI-Enhanced U.S. Large Cap Momentum ETF seeks to achieve its investment objective by investing at least 80% of its net assets, plus the amounts of any borrowings for investment purposes, in securities of U.S. listed large capitalization companies (as such term is defined in each Fund’s prospectus). The QRAFT AI-Enhanced U.S. Next Value ETF seeks to achieve its investment objective by investing at least 80% of its net assets, plus the amounts of any borrowings for investment purposes, in securities of U.S. listed companies.
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 each Fund ultimately realizes upon sale of the securities.
(a) Valuation of Investments
Each 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
29
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) |
April 30, 2022
|
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 each Fund’s portfolio securities may change on days when the investors will not be able to purchase or sell their Shares.
Each 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 each Fund (observable inputs) and (2) each 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 each 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 April 30, 2022 for each Fund based upon the three levels defined above:
QRAFT AI-Enhanced U.S. High Dividend ETF |
Level 1 |
Level 2 |
Level 3 |
Total | ||||||||
Investments |
|
|
|
|
||||||||
Common Stocks(a) |
$ |
5,402,078 |
$ |
— |
$ |
— |
$ |
5,402,078 | ||||
Short-Term Investments |
|
15,311 |
|
— |
|
— |
|
15,311 | ||||
Total |
$ |
5,417,389 |
$ |
— |
$ |
— |
$ |
5,417,389 |
QRAFT AI-Enhanced U.S. Large Cap ETF |
Level 1 |
Level 2 |
Level 3 |
Total | ||||||||
Investments |
|
|
|
|
||||||||
Common Stocks(a) |
$ |
11,590,732 |
$ |
— |
$ |
— |
$ |
11,590,732 | ||||
Short-Term Investments |
|
32,013 |
|
— |
|
— |
|
32,013 | ||||
Total |
$ |
11,622,745 |
$ |
— |
$ |
— |
$ |
11,622,745 |
30
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) |
April 30, 2022
|
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF |
Level 1 |
Level 2 |
Level 3 |
Total | ||||||||
Investments |
|
|
|
|
||||||||
Common Stocks(a) |
$ |
15,913,880 |
$ |
— |
$ |
— |
$ |
15,913,880 | ||||
Short-Term Investments |
|
25,602 |
|
— |
|
— |
|
25,602 | ||||
Total |
$ |
15,939,482 |
$ |
— |
$ |
— |
$ |
15,939,482 |
QRAFT AI-Enhanced U.S. Next Value ETF |
Level 1 |
Level 2 |
Level 3 |
Total | ||||||||
Investments |
|
|
|
|
||||||||
Common Stocks(a) |
$ |
5,506,794 |
$ |
— |
$ |
— |
$ |
5,506,794 | ||||
Short-Term Investments |
|
10,538 |
|
— |
|
— |
|
10,538 | ||||
Total |
$ |
5,517,332 |
$ |
— |
$ |
— |
$ |
5,517,332 |
(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 and Interest 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 each Fund’s understanding of the applicable tax rules and regulations.
(c) Foreign Currency Transactions
The accounting records of each Fund are maintained in U.S. dollars. Financial instruments and other assets and liabilities of each Fund denominated in a foreign currency, if any, are translated into U.S. dollars at current exchange rates. Purchases and sales of financial instruments, income receipts and expense payments are translated into U.S. dollars at the exchange rate on the date of the transaction. Each Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates from those resulting from changes in values to financial instruments. Such fluctuations are included with the net realized and unrealized gains or losses from investments. Realized foreign exchange gains or losses arise from transactions in financial instruments and foreign currencies, currency exchange fluctuations between the trade and settlement date of such transactions, and the difference between the amount of assets and liabilities recorded and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, including financial instruments, resulting from changes in currency exchange rates. Each Fund may be subject to foreign taxes related to foreign income received, capital gains on the sale of securities and certain foreign currency transactions (a portion of which may be reclaimable). All foreign taxes are recorded in accordance with the applicable regulations and rates that exist in the foreign jurisdictions in which each Fund invests.
(d) Federal Income Tax
It is the policy of each 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 each Fund qualifies as a regulated investment company.
Management of each Fund has evaluated tax positions taken or expected to be taken in the course of preparing each 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
31
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) |
April 30, 2022
|
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 (generally three years for federal income tax purposes). The determination has been made that there are not any uncertain tax positions that would require each Fund to record a tax liability and, therefore, there is no impact to the Fund’s financial statements. Each 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 April 30, 2022, no Fund had any interest or penalties associated with the underpayment of any income taxes.
(e) Distributions to Shareholders
Each Fund pays out dividends from its net investment income at least quarterly and distributes its net capital gains, if any, to investors at least annually. Each Fund may make distributions on a more frequent basis for such 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 each Fund, pursuant to an investment advisory agreement entered into by the Adviser and the Trust, on behalf of each Fund (“Advisory Agreement”). Under the Advisory Agreement, the Adviser provides investment advisory services to each Fund. The Adviser is responsible for the day-to-day management of the Funds, including, among other things, providing an investment program for the Funds, trading portfolio securities on behalf of each Fund, and selecting broker-dealers to execute purchase and sale transactions, subject to the oversight of the Board. The Adviser also arranges for transfer agency, custody, fund administration and accounting, and other non-distribution related services necessary for each Fund to operate. The Adviser administers each 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 each 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 each Fund.
Under the Advisory Agreement, the Adviser has agreed to pay all expenses of each 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 (“Excluded Expenses”).
QRAFT Technologies, Inc. (“Qraft”) is the Funds’ sponsor. In connection with an arrangement between the Adviser and QRAFT, QRAFT has agreed to assume the Adviser’s obligation to pay all expenses of the Funds (except Excluded Expenses) and, to the extent applicable, pay the Adviser a minimum fee. Qraft will also provide marketing support for the Funds including, but not limited to, distributing each Fund’s materials and providing the Funds with access to and the use of Qraft’s other marketing capabilities, including communications through print and electronic media. For its services, Qraft is entitled to a fee from the Adviser, which is calculated daily and paid monthly, based on a percentage of the average daily net assets of each Fund. Qraft does not make investment decisions, provide investment advice, or otherwise act in the capacity of an investment adviser to the Funds.
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.
32
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) |
April 30, 2022
|
(b) Distribution Arrangement
Foreside Fund Services, LLC (the “Distributor”), a Delaware limited liability company, is the principal underwriter and distributor of each Fund’s Shares. The Distributor does not maintain any secondary market in any 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 average daily net assets may be made to compensate or reimburse financial intermediaries for activities principally intended to result in the sale of each 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.
(c) Other Servicing Agreements
The Bank of New York Mellon (“BNY Mellon”) serves as each 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 year ended April 30, 2022 were as follows:
Fund |
Purchases |
Sales | ||||
AI-Enhanced U.S. High Dividend ETF |
$ |
12,520,790 |
$ |
13,597,036 | ||
AI-Enhanced U.S. Large Cap ETF |
|
34,541,419 |
|
39,343,123 | ||
AI-Enhanced U.S. Large Cap Momentum ETF |
|
217,168,813 |
|
224,481,024 | ||
AI-Enhanced U.S. Next Value ETF |
|
22,213,385 |
|
26,284,025 |
Purchases and sales of in-kind transactions for the year ended April 30, 2022 were as follows:
Fund |
Purchases |
Sales | ||||
AI-Enhanced U.S. High Dividend ETF |
$ |
10,136,885 |
$ |
9,071,793 | ||
AI-Enhanced U.S. Large Cap ETF |
|
33,189,786 |
|
36,554,354 | ||
AI-Enhanced U.S. Large Cap Momentum ETF |
|
105,748,836 |
|
100,206,580 | ||
AI-Enhanced U.S. Next Value ETF |
|
16,933,581 |
|
12,150,017 |
Note 5 – Capital Share Transactions
Fund Shares are listed and traded on the Exchange on each day that the Exchange is open for business (“Business Day”). Each Fund’s Shares may only be purchased and sold on the Exchange through a broker-dealer. Because each Fund’s Shares trade at market prices rather than at their NAV, Shares may trade at a price equal to the NAV, greater than NAV (premium) or less than NAV (discount).
Each 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 a Fund. Fund Shares may only be purchased or redeemed directly from each 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
33
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) |
April 30, 2022
|
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 each 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 of the market value as set forth in the Participant Agreement. A participant agreement may permit each 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 each 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 each 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. Each 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. Each 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 fees for AI-Enhanced U.S. High Dividend ETF, AI-Enhanced U.S. Large Cap ETF, AI-Enhanced U.S. Large Cap Momentum ETF and AI-Enhanced U.S. Next Value ETF are $500, $1,750, $250 and $500, respectively, 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. Each Fund may adjust the redemption transaction fee from time to time based upon actual experience. In addition, a variable fee, payable to each Fund, may be imposed for cash redemptions, non-standard orders, or partial cash redemptions for each 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 each Fund’s securities to the account of the Trust. The non-standard charges are payable to each Fund as it incurs costs in connection with the redemption of Creation Units, the receipt of each Fund’s securities and the cash redemption amount and other transactions costs. The standard redemption transaction fees for AI-Enhanced U.S. High Dividend ETF, AI-Enhanced U.S. Large Cap ETF, AI-Enhanced U.S. Large Cap Momentum ETF and AI-Enhanced U.S. Next Value ETF are $500, $1,750, $250 and $500, respectively, regardless of the number of Creation Units created in the transaction.
34
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) |
April 30, 2022
|
Note 6 – Principal Risks
As with any investment, an investor could lose all or part of their investment in each Fund and each Fund’s performance could trail that of other investments. Each Fund is subject to the principal risks noted below, any of which may adversely affect each Fund’s NAV, trading price, yield, total return and ability to meet its investment objective. Additional principal risks are disclosed in the Funds’ prospectus. Please refer to the relevant Fund’s prospectus for a complete description of the principal risks of investing in that Fund.
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.
Models and Data Risk: Each Fund relies heavily on a proprietary artificial intelligence selection model as well as data and information supplied by third parties that are utilized by such model. To the extent the model does not perform as designed or as intended, each Fund’s strategy may not be successfully implemented, and each Fund may lose value. If the model or data are incorrect or incomplete, any decisions made in reliance thereon may lead to the inclusion or exclusion of securities that would have been excluded or included had the model or data been correct and complete.
Non-Diversification Risk: Each Fund is non-diversified, meaning that, as compared to a diversified fund, it can invest a greater percentage of its assets in securities issued by or representing a small number of issuers. As a result, the performance of these issuers can have a substantial impact on each Fund’s performance.
Sector Focus Risk: Each Fund may invest a significant portion of its assets in one or more sectors and thus will be more susceptible to the risks affecting those sectors. Each Fund identifies its sector weightings in its Summary of Investments and the sector exposure is expected to vary over time.
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 year ended April 30, 2022, 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, non deductible partnership expenses and prior year true ups have been reclassified:
Fund |
Paid-in
|
Total
| |||||
AI-Enhanced U.S. High Dividend ETF |
$ |
775,403 |
$ |
(775,403 |
) | ||
AI-Enhanced U.S. Large Cap ETF |
|
3,262,590 |
|
(3,262,590 |
) | ||
AI-Enhanced U.S. Large Cap Momentum ETF |
|
8,991,405 |
|
(8,991,405 |
) | ||
AI-Enhanced U.S. Next Value ETF |
|
1,272,301 |
|
(1,272,301 |
) |
35
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) |
April 30, 2022
|
The tax character of the distributions paid during the tax year ended April 30, 2022 and April 30, 2021 were as follows:
Year Ended April 30, 2022 | ||||||||||||
Fund |
Ordinary
|
Net |
Return
of |
Total
| ||||||||
AI-Enhanced U.S. High Dividend ETF |
$ |
119,751 |
$ |
— |
$ |
— |
$ |
119,751 | ||||
AI-Enhanced U.S. Large Cap ETF |
|
12,969 |
|
— |
|
— |
|
12,969 | ||||
AI-Enhanced U.S. Large Cap Momentum ETF |
|
190,695 |
|
15,998 |
|
— |
|
206,693 | ||||
AI-Enhanced U.S. Next Value ETF |
|
105,822 |
|
— |
|
— |
|
105,822 |
Year Ended April 30, 2021 | ||||||||||||
Fund |
Ordinary
|
Net |
Return
of |
Total
| ||||||||
AI-Enhanced U.S. High Dividend ETF |
$ |
66,291 |
$ |
— |
$ |
— |
$ |
66,291 | ||||
AI-Enhanced U.S. Large Cap ETF |
|
365,518 |
|
46,621 |
|
— |
|
412,139 | ||||
AI-Enhanced U.S. Large Cap Momentum ETF |
|
1,166,815 |
|
2,219 |
|
— |
|
1,169,034 | ||||
AI-Enhanced U.S. Next Value ETF |
|
12,192 |
|
— |
|
— |
|
12,192 |
As of the tax year ended April 30, 2022, the components of Distributable earnings (loss) on a tax basis were as follows:
Fund |
Undistributed
|
Undistributed
|
Unrealized
|
Distributable
| |||||||||||
AI-Enhanced U.S. High Dividend ETF |
$ |
17,292 |
$ |
(567,911 |
) |
$ |
(75,534 |
) |
$ |
(626,153 |
) | ||||
AI-Enhanced U.S. Large Cap ETF |
|
977 |
|
(2,001,594 |
) |
|
(1,585,300 |
) |
|
(3,585,917 |
) | ||||
AI-Enhanced U.S. Large Cap Momentum ETF |
|
— |
|
(11,567,510 |
) |
|
(1,229,144 |
) |
|
(12,796,654 |
) | ||||
AI-Enhanced U.S. Next Value ETF |
|
4,993 |
|
(594,947 |
) |
|
(306,208 |
) |
|
(896,162 |
) |
At April 30, 2022, gross unrealized appreciation and depreciation of investments owned by each Fund, based on cost for federal income tax purposes were as follows:
Fund |
Tax Cost of
|
Unrealized
|
Unrealized
|
Net | ||||||||||
AI-Enhanced U.S. High Dividend ETF |
$ |
5,492,923 |
$ |
246,849 |
$ |
(322,383 |
) |
$ |
(75,534 |
) | ||||
AI-Enhanced U.S. Large Cap ETF |
|
13,208,045 |
|
284,642 |
|
(1,869,942 |
) |
|
(1,585,300 |
) | ||||
AI-Enhanced U.S. Large Cap Momentum ETF |
|
17,168,626 |
|
260,491 |
|
(1,489,635 |
) |
|
(1,229,144 |
) | ||||
AI-Enhanced U.S. Next Value ETF |
|
5,823,540 |
|
207,619 |
|
(513,827 |
) |
|
(306,208 |
) |
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 and adjustments for corporations and partnerships.
As of the tax year ended April 30, 2022, each Fund has non-expiring accumulated capital loss carryforwards as follows:
Fund |
Short-Term |
Long-Term |
Total Amount | ||||||
AI-Enhanced U.S. High Dividend ETF |
$ |
565,029 |
$ |
2,882 |
$ |
567,911 | |||
AI-Enhanced U.S. Large Cap ETF |
|
1,940,464 |
|
61,130 |
|
2,001,594 | |||
AI-Enhanced U.S. Large Cap Momentum ETF |
|
11,565,039 |
|
1,603 |
|
11,566,642 | |||
AI-Enhanced U.S. Next Value ETF |
|
591,494 |
|
3,453 |
|
594,947 |
36
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Concluded) |
April 30, 2022
|
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 April 30, 2022, AI-Enhanced U.S. Large Cap Momentum ETF had $868 of qualified late-year ordinary losses, which are deferred until May 1, 2022 for tax purposes. Net late-year losses incurred after December 31, 2021, 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 the 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 Funds invest depends on future developments, including the duration and spread of the outbreak, and such developments may in turn impact the value of the Funds’ investments. The ultimate impact of the pandemic on the financial performance of the Funds’ investments is not reasonably able to be estimated at this time.
On February 24, 2022, Russia engaged in military actions in the sovereign territory of Ukraine. The current political and financial uncertainty surrounding Russia and Ukraine may increase market volatility and the economic risk of investing in securities in these countries and may also cause uncertainty for the global economy and broader financial markets. The ultimate fallout and long-term impact from these events are not known.
Note 9 – Events Subsequent to the Fiscal Year 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 Funds’ financial statements.
37
To
the Shareholders of QRAFT AI-Enhanced U.S. High
Dividend ETF, QRAFT AI-Enhanced U.S. Large Cap ETF,
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF,
and QRAFT AI-Enhanced U.S. Next Value ETF and
Board of Trustees of Exchange Listed Funds Trust
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Exchange Listed Funds Trust comprising the funds listed below, as of April 30, 2022, the related statements of operations, the statements of changes in net assets, the related notes, and the financial highlights for each of the periods indicated below (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of April 30, 2022, the results of their operations, the changes in net assets, and the financial highlights for each of the periods indicated below in conformity with accounting principles generally accepted in the United States of America.
Fund Name |
Statements of
|
Statements of
|
Financial
|
QRAFT AI-Enhanced U.S. High Dividend ETF |
For the year ended April 30, 2022 |
For the years ended April 30, 2022 and 2021 |
For the years ended April 30, 2022 and 2021, and for the period from February 26, 2020 (commencement of operations) through April 30, 2020 |
QRAFT AI-Enhanced U.S. Large Cap ETF and QRAFT AI-Enhanced U.S. Large Cap Momentum ETF |
For the year ended April 30, 2022 |
For the years ended April 30, 2022 and 2021 |
For the years ended April 30, 2022 and 2021, and for the period from May 20, 2019 (commencement of operations) through April 30, 2020 |
QRAFT AI-Enhanced U.S. Next Value ETF |
For the year ended April 30, 2022 |
For the year ended April 30, 2022 and for the period from December 2, 2020 (commencement of operations) through April 30, 2021 |
Basis for Opinion
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022, by correspondence with the custodian. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide 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.
Cleveland, Ohio
June 29,
2022
38
All ETFs have operating expenses. As a shareholder of a 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 Funds’ 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 a 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 each 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 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 |
Ending |
Annualized |
Expenses
Paid | |||||
QRAFT AI-Enhanced U.S. High Dividend ETF |
||||||||
Actual Performance |
$1,000.00 |
$1,001.90 |
0.75% |
$3.72 | ||||
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,021.08 |
0.75% |
$3.76 | ||||
QRAFT AI-Enhanced U.S. Large Cap ETF |
||||||||
Actual Performance |
$1,000.00 |
$856.70 |
0.75% |
$3.45 | ||||
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,021.08 |
0.75% |
$3.76 | ||||
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF |
||||||||
Actual Performance |
$1,000.00 |
$746.10 |
0.75% |
$3.25 | ||||
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,021.08 |
0.75% |
$3.76 | ||||
QRAFT AI-Enhanced U.S. Next Value ETF |
||||||||
Actual Performance |
$1,000.00 |
$1,019.80 |
0.75% |
$3.76 | ||||
Hypothetical (5% return before expenses) |
$1,000.00 |
$1,021.08 |
0.75% |
$3.76 |
(1) Expenses paid during the period are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181 (the number of days in the most recent six-month period), then divided by 365.
39
At a meeting held on December 9, 2021 (the “Meeting”), the Board of Trustees (the “Board”) of Exchange Listed Funds Trust (the “Trust”) considered and approved an investment advisory agreement between the Trust, on behalf of the QRAFT AI-Enhanced U.S. High Dividend ETF (the “Fund”), and Exchange Traded Concepts, LLC (“ETC”) pursuant to which ETC provides advisory services to the Fund (the “Agreement”).
Pursuant to Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Agreement must be approved by a vote of (i) the Trustees or the shareholders of the Fund and (ii) a majority of the Trustees who are not parties to the Agreement or “interested persons” of any party thereto, as defined in the 1940 Act (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In connection with its consideration of such approvals, the Board must request and evaluate, and ETC is required to furnish, such information as may be reasonably necessary to evaluate the terms of the Agreement. In addition, rules under the 1940 Act require an investment company to disclose in its shareholder reports the material factors and the conclusions with respect thereto that formed the basis for the Board’s approval of an investment advisory agreement.
Although the 1940 Act requires that the Agreement be approved by the in-person vote of a majority of the Independent Trustees, the Meeting was held virtually through the internet in view of the health risks associated with holding an in-person meeting during the COVID-19 pandemic and possible restrictions on gatherings. The Meeting was held in reliance on an order issued by the Securities and Exchange Commission that provides temporary relief from the in-person voting requirements of the 1940 Act with respect to the approval of a fund’s advisory agreement in response to the challenges arising in connection with the COVID-19 pandemic.
Consistent with these responsibilities, prior to the Meeting, the Board reviewed written materials from ETC and, at the Meeting, representatives from ETC presented additional oral and written information to help the Board evaluate the Agreement. Among other things, representatives from ETC provided an overview of its advisory business, including investment personnel and investment processes. Prior to the Meeting, the Trustees met to review and discuss certain information provided. During the Meeting, the Board discussed the materials it received, including a memorandum from legal counsel to the Independent Trustees on the responsibilities of Trustees in considering the approval of investment advisory agreements under the 1940 Act, considered ETC’s oral presentations, and deliberated on the approval of the Agreement in light of this information. Throughout the process, the Trustees were afforded the opportunity to ask questions of and request additional materials from ETC. The Independent Trustees were assisted in their review by independent legal counsel and met with counsel separately and without management present.
In considering whether to approve the continuance of the Agreement, the Board took into account the presentation made and the extensive discussion during the Meeting, including the discussion the Independent Trustees had during their executive session with independent legal counsel. In particular, the Trustees took into consideration (i) the nature, extent and quality of the services provided by ETC to the Fund; (ii) the Fund’s performance; (iii) ETC’s costs of and profits realized from providing advisory services to the Fund, including any fall-out benefits enjoyed by ETC or its affiliates; (iv) comparative fee and expense data for the Fund; (v) the extent to which the advisory fee for the Fund reflects economies of scale shared with Fund shareholders; and (vi) other factors the Board deemed to be relevant.
Nature, Extent and Quality of Services
With respect to the nature, extent and quality of the services provided to the Fund, the Board considered ETC’s specific responsibilities in all aspects of day-to-day management of the Fund. The Board noted that such responsibilities include, among other things, monitoring compliance with various fund policies and procedures and applicable securities regulations, trading portfolio securities and other investment instruments on behalf of the Fund, selecting broker-dealers to execute purchase and sale transactions, determining the daily baskets of deposit securities and cash components, executing portfolio securities trades for purchases and redemptions of Fund shares, overseeing general portfolio compliance with relevant law, preparing and presenting quarterly reports to the Board, and implementing Board directives as they relate to the Fund. The Board considered the qualifications, experience and responsibilities of ETC’s investment personnel, the quality of ETC’s compliance infrastructure, and the determination of the Trust’s Chief Compliance Officer that ETC has appropriate compliance policies and procedures in place. The Board noted that it had been provided with ETC’s responses to a detailed series of questions, which included a description of ETC’s operations, service offerings, personnel, compliance program, risk management program, and financial condition. The Board considered ETC’s experience working with ETFs, including the Fund, other series of the Trust, and other ETFs outside of the Trust.
40
EXCHANGE LISTED FUNDS TRUST BOARD CONSIDERATION AND APPROVAL OF INVESTMENT ADVISORY AND AGREEMENT (Continued) |
April 30, 2022 (Unaudited) |
The Board also considered other services provided to the Fund by the ETC, such as arranging for transfer agency, custody, fund administration and accounting, and other non-distribution related services necessary for the Fund to operate; administering the Fund’s business affairs; providing office facilities and equipment and certain clerical, bookkeeping and administrative services; liaising with and reporting to the Board on matters relating to Fund operations, portfolio management and other matters essential to the Fund’s business activities; supervising the Fund’s registration as an investment company and the offering of its shares to the public, including oversight and preparation of regulatory filings; working with ETF market participants, including authorized participants, market makers, and exchanges, to help facilitate an orderly trading environment for the Fund’s shares; and providing its officers and employees to serve as officers or Trustees of the Trust. Based on the factors discussed above, as well as those discussed below, the Board concluded that it was satisfied with the nature, extent, and quality of the services provided to the Fund by ETC.
Performance
The Board reviewed the Fund’s performance in light of the Fund’s stated investment objective. The Board was provided with reports regarding the performance of the Fund, including reports prepared by an independent third party comparing the Fund’s performance with the performance of a group of peer funds for various time periods, as well as a report comparing the Fund’s performance with the performance of the Fund’s benchmark for various time periods. The Board noted that the Fund is actively managed and that its total return was slightly lower than the peer group median and benchmark for the time periods measured. In reviewing the Fund’s performance, the Board took into account that the Fund has had a relatively short operating history over which to consider the Fund’s performance. The Board further noted that it received regular reports regarding the Fund’s performance at its quarterly meetings.
Costs of Services Provided and Profitability
The Board reviewed the advisory fees paid by the Fund to ETC for the services provided to the Fund under the Agreement. The Board reviewed a report prepared by an independent third party, comparing the Fund’s advisory fee to those paid by a group of peer funds. The Board noted that the Fund’s advisory fee was at the higher end of advisory fees paid by the peer funds. The Board took into consideration that the advisory fee for the Fund is a “unitary fee,” meaning that the Fund pays no expenses other than the advisory fee and certain expenses customarily excluded from unitary fee arrangements, such as brokerage commissions, taxes, and interest. The Board noted that, under the Agreement, ETC is responsible for compensating the Fund’s other service providers and paying the Fund’s other expenses out of its own fee and resources and that, while the Fund’s sponsor has agreed to assume such responsibility, ETC is ultimately responsible for ensuring the obligation is satisfied. The Board considered information provided about the costs and expenses incurred by ETC in providing advisory services, evaluated the compensation and benefits received by ETC from its relationship with the Fund, and reviewed a profitability analysis from ETC with respect to the Fund. In light of the foregoing information, the Board concluded that the Fund’s advisory fees appeared reasonable in light of the services rendered.
Economies of Scale
The Board considered for the Fund whether economies of scale have been realized. The Board concluded that no significant economies of scale have been realized by the Fund and that the Board will have the opportunity periodically reexamine whether such economies have been achieved.
Conclusion
No single factor was determinative of the Board’s decision to approve the continuance of the Agreement on behalf of the Fund; rather, the Board based its determination on the total mix of information available to it. Based on a consideration of all the factors in their totality, the Board, including the Independent Trustees, determined that the Agreement, including the compensation payable thereunder, was fair and reasonable to the Fund. The Board, including the Independent Trustees, therefore determined that the approval of the continuance of the Agreement was in the best interests of the Fund and its shareholders.
41
EXCHANGE LISTED FUNDS TRUST BOARD CONSIDERATION AND APPROVAL OF INVESTMENT ADVISORY AND AGREEMENT (Continued) |
April 30, 2022 (Unaudited) |
At a meeting held on February 22, 2022 (the “Meeting”), the Board of Trustees (the “Board”) of Exchange Listed Funds Trust (the “Trust”) considered and approved an investment advisory agreement between the Trust, on behalf of the QRAFT AI-Enhanced U.S Large Cap ETF and QRAFT AI-Enhanced U.S Large Cap Momentum ETF (the “Funds”), and Exchange Traded Concepts, LLC (“ETC”) pursuant to which ETC provides advisory services to the Fund (the “Agreement”).
Pursuant to Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Agreement must be approved by a vote of (i) the Trustees or the shareholders of the Fund and (ii) a majority of the Trustees who are not parties to the Agreement or “interested persons” of any party thereto, as defined in the 1940 Act (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In connection with its consideration of such approvals, the Board must request and evaluate, and ETC is required to furnish, such information as may be reasonably necessary to evaluate the terms of the Agreement. In addition, rules under the 1940 Act require an investment company to disclose in its shareholder reports the material factors and the conclusions with respect thereto that formed the basis for the Board’s approval of an investment advisory agreement.
Although the 1940 Act requires that the Agreement be approved by the in-person vote of a majority of the Independent Trustees, the Meeting was held virtually through the internet in view of the health risks associated with holding an in-person meeting during the COVID-19 pandemic and possible restrictions on gatherings. The Meeting was held in reliance on an order issued by the Securities and Exchange Commission that provides temporary relief from the in-person voting requirements of the 1940 Act with respect to the approval of a fund’s advisory agreement in response to the challenges arising in connection with the COVID-19 pandemic.
Consistent with these responsibilities, prior to the Meeting, the Board reviewed written materials from ETC and, at the Meeting, representatives from ETC presented additional oral and written information to help the Board evaluate the Agreement. Among other things, representatives from ETC provided an overview of its advisory business, including investment personnel and investment processes. Prior to the Meeting, the Trustees met to review and discuss certain information provided. During the Meeting, the Board discussed the materials it received, including a memorandum from legal counsel to the Independent Trustees on the responsibilities of Trustees in considering the approval of investment advisory agreements under the 1940 Act, considered ETC’s oral presentations, and deliberated on the approval of the Agreement in light of this information. Throughout the process, the Trustees were afforded the opportunity to ask questions of and request additional materials from ETC. The Independent Trustees were assisted in their review by independent legal counsel and met with counsel separately and without management present.
In considering whether to approve the continuance of the agreement, the Board took into consideration (i) the nature, extent and quality of the services provided by ETC to the Funds; (ii) each Fund’s performance; (iii) ETC’s costs of and profits realized from providing such services, including any fall-out benefits enjoyed by ETC or its affiliates; (iv) comparative fee and expense data for each Fund; (v) the extent to which the advisory fee for each Fund reflects economies of scale shared with Fund shareholders; and (vi) other factors the Board deemed to be relevant. The Independent Trustees were assisted in their review by independent legal counsel and met with counsel separately without management present.
Nature, Extent and Quality of Services
With respect to the nature, extent and quality of the services provided to the Funds, the Board considered ETC’s specific responsibilities in all aspects of day-to-day management of the Funds. The Board noted that such responsibilities include developing, implementing, and maintaining the Funds’ investment program, trading portfolio securities and other investment instruments on behalf of each Fund, selecting broker-dealers to execute purchase and sale transactions, determining the daily baskets of deposit securities and cash components, executing portfolio securities trades for purchases and redemptions of Fund shares, monitoring compliance with various policies and procedures and applicable securities regulations, quarterly reporting to the Board, and implementing Board directives as they relate to the Funds. The Board considered the qualifications, experience and responsibilities of ETC’s investment personnel, the quality of ETC’s compliance infrastructure, and the determination of the Trust’s Chief Compliance Officer that ETC has appropriate compliance policies and procedures in place. The Board noted that it had been provided with ETC’s registration form on Form ADV as well as ETC’s responses to a detailed series of questions, which included a description of ETC’s operations, service offerings, personnel, compliance program, risk management program, and financial condition, and whether there had been any material changes to such information since it was last presented to the Board. The Board considered ETC’s experience working with ETFs, including the Funds and other series of the Trust, and other ETFs outside of the Trust.
42
EXCHANGE LISTED FUNDS TRUST BOARD CONSIDERATION AND APPROVAL OF INVESTMENT ADVISORY AND AGREEMENT (Concluded) |
April 30, 2022 (Unaudited) |
The Board also considered other services provided to the Funds by ETC, such as arranging for transfer agency, custody, fund administration and accounting, and other non-distribution related services necessary for the Funds to operate; administering the Funds’ business affairs; providing office facilities and equipment and certain clerical, bookkeeping and administrative services; liaising with and reporting to the Board on matters relating to Fund operations, portfolio management and other matters essential to the Funds’ business activities; supervising each Fund’s registration as an investment company and the offering of shares to the public, including oversight and preparation of regulatory filings; working with ETF market participants, including authorized participants, market makers, and exchanges, to help facilitate an orderly trading environment for each Fund’s shares; and providing its officers and employees to serve as officers or Trustees of the Trust. Based on the factors discussed above, as well as those discussed below, the Board concluded that it was satisfied with the nature, extent, and quality of the services provided to the Funds by ETC.
Performance
The Board reviewed the Funds’ performance in light of each Fund’s stated investment objective, noting that each Fund is actively managed. The Board was provided with reports regarding the past performance of each Fund, including a report prepared by an independent third party, comparing each Fund’s performance with the performance of a group of peer funds for various time periods. The Board noted that for the one year period ended December 31, 2021 QRFT’s total return was above the peer group average but below the median and that AMOM’s total return was below both the peer group average and median. In reviewing each Fund’s performance, the Board took into account that each Fund has had a relatively short operating history over which to consider performance. The Board further noted that it received regular reports regarding each Fund’s performance at its quarterly meetings.
Cost of Advisory Services and Profitability
The Board reviewed the advisory fees paid by each Fund to ETC for the services provided to the Funds under the agreement. The Board reviewed a report prepared by an independent third party comparing each Fund’s advisory fee to those paid by a group of peer funds. The Board noted that each Fund’s advisory fee was generally in the mid-range of advisory fees paid by the peer funds. The Board took into consideration that the advisory fee for the Funds is a “unitary fee,” meaning that each Fund pays no expenses other than the advisory fee and certain expenses customarily excluded from unitary fee arrangements, such as brokerage commissions, taxes, and interest. The Board noted that ETC is responsible for compensating each Fund’s other service providers and paying each Fund’s other expenses out of its own fee and resources and that, while the Funds’ sponsor has agreed to assume such responsibility, ETC is ultimately responsible for ensuring the obligation is satisfied. The Board considered information provided about the costs and expenses incurred by ETC in providing advisory services, evaluated the compensation and benefits received by ETC from its relationship with each Fund, and reviewed a profitability analysis from ETC with respect to each Fund. In light of the foregoing information, the Board concluded that the advisory fees appeared reasonable in light of the services rendered.
Economies of Scale
The Board considered whether economies of scale have been realized with respect to the Funds. The Board concluded that no significant economies of scale have been realized by either Fund, and that the Board will have the opportunity to periodically reexamine whether such economies have been achieved.
Conclusion
No single factor was determinative of the Board’s decision to approve the continuance of the agreement on behalf of the Funds; rather, the Board based its determination on the total mix of information available to it. Based on a consideration of all the factors in their totality, the Board, including a majority of the Independent Trustees, determined that the agreement, including the compensation payable thereunder, was fair and reasonable to each Fund. The Board, including the Independent Trustees, therefore determined that the approval of the continuance of the agreement was in the best interests of each Fund and its shareholders.
43
Tax Information
For the year ended April 30, 2022, the Funds listed below had a percentage of the dividends paid from net investment income, including short-term capital gains (if any) designated as qualified dividend income.
Fund |
Qualified | |
AI-Enhanced U.S. High Dividend ETF |
100.00% | |
AI-Enhanced U.S. Large Cap ETF |
100.00% | |
AI-Enhanced U.S. Large Cap Momentum ETF |
5.56% | |
AI-Enhanced U.S. Next Value ETF |
85.43% |
For the year ended April 30, 2022, the Funds listed below had a percentage of the dividends paid from net investment income, including short-term capital gains (if any), qualify for the dividends received deduction available to corporate shareholders.
Fund |
Corporate
| |
AI-Enhanced U.S. High Dividend ETF |
100.00% | |
AI-Enhanced U.S. Large Cap ETF |
100.00% | |
AI-Enhanced U.S. Large Cap Momentum ETF |
5.52% | |
AI-Enhanced U.S. Next Value ETF |
79.45% |
Capital Gain Designation
For federal income tax purposes, the AI-Enhanced U.S. Large Cap Momentum ETF designate long-term capital gain dividends of $15,998, for the year ended April 30, 2022.
Premium/Discount information
Information regarding how often the Shares of each Fund traded on the Exchange at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of each Fund for various time periods can be found on the Funds’ website at www.qraftaietf.com.
44
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 Funds’ 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 (855) 973-7880 or at www.qraftaietf.com.
Name and |
Position(s) |
Term of
Office |
Principal |
Number
of |
Other
Directorships |
Interested Trustee |
|
|
|
|
|
Richard Hogan |
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 |
Trustee |
Since 2014 |
None. |
39 |
Independent Trustee, Bridge
Builder Trust (since |
Linda Petrone |
Trustee |
Since 2019 |
Founding Partner, Sage Search Advisors (since 2012). |
39 |
None. |
Stuart Strauss(3) |
Trustee |
Since 2022 |
Partner, Dechert LLP (2009 to 2020). |
39 |
None. |
(1) Each Trustee shall serve during the continued life of the Trust until he or she dies, resigns, 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.
(3) Mr. Strauss was elected as an Independent Trustee effective January 24, 2022.
45
Set forth below is information about each of the persons currently serving as officers of the Trust. The address of each officer of the Trust is c/o Exchange Listed Funds Trust, 10900 Hefner Pointe Drive, Suite 400, Oklahoma City, Oklahoma 73120.
Name and |
Position(s) Held |
Term of Office
|
Principal
Occupation(s) |
J. Garrett
Stevens |
President |
Since 2012 |
Investment Adviser/Vice President, T.S. Phillips Investments, Inc. (since 2000); Chief Executive Officer, Exchange Traded Concepts, LLC (since 2009); and President, Exchange Traded Concepts Trust (since 2011). |
Richard Hogan |
Trustee and Secretary |
Since 2012 |
Director, Exchange Traded Concepts, LLC (since 2011); Private Investor (since 2003); Secretary, Exchange Traded Concepts Trust (since 2011); Board Member, Peconic Land Trust (2012 to 2016); Managing Member, Yorkville ETF Advisors (2011 to 2016). |
Christopher
W. Roleke |
Treasurer |
Since 2012 |
Controller, Exchange Traded Concepts, LLC (since 2022); Managing Director/Fund Principal Financial Officer, Foreside Management Services, LLC (2011 to 2022). |
James J. Baker
Jr. |
Assistant Treasurer |
Since 2015 |
Managing Partner, Exchange Traded Concepts, LLC (since 2011); Managing Partner, Yorkville ETF Advisors (2012 to 2016); Vice President, Goldman Sachs (2000 to 2011). |
Matthew
Fleischer |
Chief Compliance Officer |
Since 2021 |
Chief Compliance Officer, Exchange Listed Funds Trust (since 2021); Chief Compliance Officer, Exchange Traded Concepts Trust (since 2021); Vice President, Compliance, Goldman Sachs Group, Inc., Goldman Sachs Asset Management Funds (2017 to 2021); Associate Counsel, Ameriprise Financial, Columbia Threadneedle Funds (2015 to 2017). |
(1) Each officer serves at the pleasure of the Board.
46
10900
Hefner Pointe Drive, Suite 400
Oklahoma City, OK 73120
Investment Adviser:
Exchange
Traded Concepts, LLC
10900 Hefner Pointe Drive, Suite 400
Oklahoma City,
OK 73120
Distributor:
Foreside
Fund Services, LLC
Three Canal Plaza, Suite 100
Portland,
ME 04101
Legal Counsel:
Morgan,
Lewis & Bockius LLP
1111 Pennsylvania Avenue NW
Washington, DC
20004
Proxy Voting Information
Exchange Traded Concepts’ proxy voting policies and procedures are attached to the Funds’ SAI, which is available without charge by visiting the Funds’ website at www.qraftaietf.com or the SEC’s website at www.sec.gov or by calling toll-free (855) 973-7880.
In addition, a description of how each Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available without charge upon request by calling toll-free (855) 973-7880 or on the SEC’s website at www.sec.gov.
Quarterly Portfolio Holdings Information
Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of its fiscal period as an exhibit to its reports on Form N-PORT within sixty days after the end of the period. Each Fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov. In addition, each Fund’s full portfolio holdings are updated daily and available on the Fund’s website at www.qraftaietf.com.
This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.