EXCHANGE LISTED FUNDS TRUST

Akros Monthly Payout ETF (MPAY)

Annual Report

November 30, 2023

 

Exchange Listed Funds Trust
TABLE OF CONTENTS

 

November 30, 2023  

  

Akros Monthly Payout ETF

   

Management’s Discussion of Fund Performance

 

1

Schedule of Investments

 

4

Summary of Investments

 

6

Statement of Assets and Liabilities

 

7

Statement of Operations

 

8

Statements of Changes in Net Assets

 

9

Financial Highlights

 

10

Notes to Financial Statements

 

11

Report of Independent Registered Public Accounting Firm

 

19

Disclosure of Fund Expenses

 

20

Board Consideration and Approval of Continuance of Investment Advisory Agreement

 

21

Other Information

 

23

Trustees

 

24

Officers

 

25

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

There are risks involved with investing, including possible loss of principal, and there is no guarantee the Fund will achieve its investment objective. The Fund is classified as a 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.

The Fund seeks to make cash distributions once per month throughout a calendar year with the goal, but not the guarantee, of an annualized target rate of 7.0%, which is based on the Fund’s per-share net asset value (“NAV”) on the date of a distribution’s declaration. See Note 2(f) — Distributions to Shareholders for additional information on the Fund’s target distributions.

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

Distributor: Foreside Fund Services, LLC

i

Akros Monthly Payout ETF

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE

 

November 30, 2023  

(Unaudited)  

Dear Shareholders,

Thank you for your investment in the Akros Monthly Payout ETF (“MPAY” or the “Fund”). The information presented in this report relates to the operations of MPAY for the fiscal year ended November 30, 2023.

The Fund seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Akros Multi-Asset Index (the “Index”). The Index generally consists of 18 exchange-traded funds and 50 U.S. exchange-listed stocks. The Index is broadly diversified and seeks to offer the potential for monthly distributions, which may include return of capital to investors. The goal of the Index is to represent an allocation to a balanced portfolio of international equities, fixed income securities and alternative investments. The Index composition is dynamically allocated across asset classes taking into consideration the current macroeconomic state. The Index will have risk characteristics similar to the international stock and bond markets and foreign exchange markets and will generally rise and fall with prevailing market conditions, with the goal, but not the guarantee, of achieving a total return sufficient, over time and after expenses, to support a seven percent (7.0%) annual distribution rate.

The Fund’s performance is primarily influenced by the dynamic allocation of U.S. equities in our regime detection model. Our regime detection model is based on around 500 macroeconomic time series provided by Federal Reserve Economic Data (FRED), such as CPI and unemployment rate. The model then generates a few millions of regime candidates derived from the FRED time series. These generated regimes may be simple as inflation/deflation periods determined by CPI YoY, but most of them consist of multiple FRED variables. Among these candidates, only a few hundreds are classified as robust regimes that provide reliable signals for the future performance of our target assets. The final MPAY portfolio is constructed by allocating weights on assets that showed good performance in the predicted regime. From March to July 2023, the Fund allocated a relatively high percentage, approximately 40%, of its assets to U.S. equities. During this period, the S&P 500® Index also experienced a significant increase of 16.3%. However, the average weight allocated to U.S. equities decreased to 23% from August to September 2023, coinciding with a 6.3% decline in the S&P 500® Index during the same period.

The Fund had positive performance during the fiscal year ended November 30, 2023. The market price for the Fund’s shares increased 4.84% and the net asset value increased 4.77%. The Index increased 5.00%, while the S&P 500® Index and the Blended Index (60% S&P 500® Index and 40% Barclays Aggregate Bond Index) returned 13.84% and 8.76%, respectively.

The Fund commenced operations on May 6, 2022, with 90,001 shares outstanding as of November 30, 2023. We appreciate your investment in the Akros Monthly Payout ETF.

Sincerely,

J. Garrett Stevens

Chief Executive Officer

Exchange Traded Concepts, Adviser to the Fund

1

Akros Monthly Payout ETF

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE (Continued)

 

November 30, 2023  

(Unaudited)  

Growth of a $10,000 Investment

(at net asset value)

 

Average Annual
Return
As of 11/30/2023

 

 

Inception Date
of the Fund

One Year

Since
Inception

Expense Ratio*

Gross

Net

Akros Monthly Payout ETF (Net Asset Value)

5/6/2022

4.77%

0.79%

0.82%

0.57%

Akros Monthly Payout ETF (Market Price)

 

4.84%

0.80%

   

S&P 500® Index

 

13.84%

8.19%

   

Blended Index (60% S&P 500® Index and 40% Bloomberg US Aggregate Bond Index)

 

8.76%

4.67%

   

Akros Multi-Asset Index

 

5.00%

0.95%

   

*   Reflects the expense ratios (inclusive of 0.07% of acquired fund fees and expenses). Exchange Traded Concepts, LLC (the “Adviser”) has contractually agreed to waive a portion of its management fee in an amount equal to 0.25% of average daily net assets through March 31, 2024 as reported in the Prospectus dated April 1, 2023.

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. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. Please note that one cannot invest directly in an unmanaged index.

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

2

Akros Monthly Payout ETF

MANAGEMENT’S DISCUSSION OF FUND PERFORMANCE (Concluded)

 

November 30, 2023  

(Unaudited)

Blended Index is 60% the S&P 500® Index and 40% the Bloomberg US Aggregate Bond Index.

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 Bloomberg US Aggregate Bond Index is a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States.

The Akros Multi-Asset Index seeks to facilitate the Fund’s adopted policy to pay monthly distributions on Fund shares at a target rate that represents an annualized payout of approximately 7.0% on the Fund’s per-share net asset value on the date of a distributions’s declaration.

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).

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.

3

Akros Monthly Payout ETF

SCHEDULE OF INVESTMENTS

 

November 30, 2023  

 

 

Number of
Shares

 

Value

COMMON STOCKS — 2.4%

     

 

 

CONSUMER DISCRETIONARY — 0.3%

 

 

 

AutoNation, Inc.*

 

6

 

$

812

Bath & Body Works, Inc.

 

24

 

 

783

DR Horton, Inc.

 

8

 

 

1,021

H&R Block, Inc.

 

17

 

 

772

Laureate Education, Inc.

 

45

 

 

591

Magna International, Inc.

 

16

 

 

863

Murphy USA, Inc.

 

1

 

 

369

Tempur Sealy International, Inc.

 

17

 

 

685

Travel + Leisure Co.

 

19

 

 

677

       

 

6,573

CONSUMER STAPLES — 0.0%

     

 

 

Albertsons Cos., Inc., Class A

 

30

 

 

653

ENERGY — 0.2%

     

 

 

Halliburton Co.

 

21

 

 

778

Schlumberger Ltd.

 

20

 

 

1,041

TechnipFMC PLC.

 

33

 

 

684

Weatherford International PLC*

 

8

 

 

725

       

 

3,228

FINANCIALS — 0.3%

     

 

 

Allstate Corp. (The)

 

7

 

 

965

Aon PLC, Class A

 

3

 

 

985

Assurant, Inc.

 

6

 

 

1,008

Old Republic International Corp.

 

25

 

 

733

Travelers Cos., Inc. (The)

 

6

 

 

1,084

Unum Group

 

15

 

 

645

       

 

5,420

HEALTH CARE — 0.4%

     

 

 

Cigna Group (The)

 

3

 

 

789

HCA Healthcare, Inc.

 

3

 

 

751

Laboratory Corp. of America Holdings

 

3

 

 

651

McKesson Corp.

 

2

 

 

941

Organon & Co.

 

44

 

 

498

Tenet Healthcare Corp.*

 

12

 

 

828

UnitedHealth Group, Inc.

 

7

 

 

3,871

       

 

8,329

INDUSTRIALS — 0.4%

     

 

 

Acuity Brands, Inc.

 

3

 

 

538

CH Robinson Worldwide, Inc.

 

9

 

 

739

Clean Harbors, Inc.*

 

3

 

 

485

Ferguson PLC

 

6

 

 

1,028

Huntington Ingalls Industries, Inc.

 

2

 

 

474

 

Number of
Shares

 

Value

COMMON STOCKS (Continued)

     

 

 

INDUSTRIALS (Continued)

 

 

 

Illinois Tool Works, Inc.

 

6

 

$

1,453

ITT, Inc.

 

8

 

 

866

Lennox International, Inc.

 

2

 

 

813

ManpowerGroup, Inc.

 

9

 

 

668

Ryder System, Inc.

 

7

 

 

750

       

 

7,814

INFORMATION TECHNOLOGY — 0.5%

 

 

 

Accenture PLC, Class A

 

7

 

 

2,332

Dell Technologies, Inc., Class C

 

11

 

 

835

International Business Machines Corp.

 

10

 

 

1,586

Jabil, Inc.

 

7

 

 

807

Kyndryl Holdings, Inc.*

 

46

 

 

829

NVIDIA Corp.

 

9

 

 

4,209

       

 

10,598

MATERIALS — 0.3%

     

 

 

Berry Global Group, Inc.

 

12

 

 

793

Dow, Inc.

 

18

 

 

931

International Paper Co.

 

20

 

 

739

Mosaic Co. (The)

 

20

 

 

718

NewMarket Corp.

 

1

 

 

531

Reliance Steel & Aluminum Co.

 

2

 

 

551

Westrock Co.

 

19

 

 

782

       

 

5,045

TOTAL COMMON STOCKS
(Cost $45,964)

     

 

47,660

       

 

 

EXCHANGE-TRADED FUNDS — 96.7%

 

 

 

COMMODITY — 27.3%

     

 

 

abrdn Physical Gold Shares ETF*

 

2,329

 

 

45,346

iShares Gold Trust*

 

2,160

 

 

83,246

iShares Gold Trust Micro*

 

10,204

 

 

207,447

SPDR Gold MiniShares Trust*

 

5,136

 

 

207,392

       

 

543,431

EQUITY — 23.0%

     

 

 

FlexShares Morningstar Global Upstream Natural Resources Index Fund

 

5,220

 

 

208,957

iShares Global Infrastructure ETF

 

836

 

 

38,506

SPDR S&P Global Natural Resources ETF

 

3,783

 

 

210,373

SPDR S&P North American Natural Resources ETF

 

17

 

 

859

       

 

458,695

4

Akros Monthly Payout ETF

SCHEDULE OF INVESTMENTS (Concluded)

 

November 30, 2023  

 

 

Number of
Shares

 

Value

EXCHANGE-TRADED FUNDS (Continued)

 

 

 

FIXED INCOME — 45.1%

     

 

 

iShares 1-5 Year Investment Grade Corporate Bond ETF

 

47

 

$

2,381

iShares Broad USD High Yield Corporate Bond ETF

 

5,961

 

 

212,152

Vanguard Short-Term Corporate Bond ETF

 

2,716

 

 

207,557

Vanguard Short-Term Treasury ETF

 

1,081

 

 

62,741

Xtrackers Low Beta High Yield Bond ETF

 

4,412

 

 

200,879

Xtrackers USD High Yield Corporate Bond ETF

 

6,109

 

 

212,226

       

 

897,936

REAL ESTATE — 1.3%

     

 

 

Vanguard Real Estate ETF

 

327

 

 

26,726

TOTAL EXCHANGE-TRADED FUNDS
(Cost $1,881,596)

     

 

1,926,788

       

 

 

SHORT-TERM INVESTMENTS — 0.7%

 

 

 

Invesco Government & Agency Portfolio  Institutional Class, 5.28%(a)

 

13,342

 

 

13,342

TOTAL SHORT-TERM INVESTMENTS
(Cost $13,342)

     

 

13,342

TOTAL INVESTMENTS — 99.8% (Cost $1,940,902)

     

 

1,987,790

Other Assets in Excess of Liabilities — 0.2%

     

 

 4,135

TOTAL NET ASSETS — 100.0%

     

$

1,991,925

*   Non-income producing security.

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

5

Akros Monthly Payout ETF

SUMMARY OF INVESTMENTS

 

November 30, 2023  

 

Security Type/Sector

 

Percent of
Total Net
Assets

Common Stocks

   

 

Consumer Discretionary

 

0.3

%

Consumer Staples

 

0.0

%

Energy

 

0.2

%

Financials

 

0.3

%

Health Care

 

0.4

%

Industrials

 

0.4

%

Information Technology

 

0.5

%

Materials

 

0.3

%

Total Common Stocks

 

2.4

%

Exchange-Traded Funds

   

 

Commodity

 

27.3

%

Equity

 

23.0

%

Fixed Income

 

45.1

%

Real Estate

 

1.3

%

Total Exchange-Traded Funds

 

96.7

%

Short-Term Investments

 

0.7

%

Total Investments

 

99.8

%

Other Assets in Excess of Liabilities

 

0.2

%

Total Net Assets

 

100.0

%

6

EXCHANGE LISTED FUNDS TRUST

STATEMENT OF ASSETS AND LIABILITIES

 

November 30, 2023  
  

 

Akros Monthly
Payout ETF

Assets:

 

 

 

 

Investments, at value

 

$

1,987,790

 

Capital shares receivable

 

 

442,645

 

Dividends receivable

 

 

148

 

Foreign tax reclaim

 

 

1

 

Total Assets

 

 

2,430,584

 

   

 

 

 

Liabilities:

 

 

 

 

Advisory fee payable

 

 

626

 

Investment securities purchased payable

 

 

438,033

 

Total Liabilities

 

 

438,659

 

   

 

 

 

Net Assets

 

$

1,991,925

 

   

 

 

 

Net Assets Consist of:

 

 

 

 

Paid-in capital

 

$

2,148,536

 

Distributable earnings (loss)

 

 

(156,611

)

Net Assets

 

$

1,991,925

 

   

 

 

 

Shares of Beneficial Interest Outstanding

 

 

 

 

(unlimited number of shares authorized, no par value)

 

 

90,001

 

Net Asset Value, Offering and Redemption Price Per Share

 

$

22.13

 

Investments, at cost

 

$

1,940,902

 

7

EXCHANGE LISTED FUNDS TRUST

STATEMENT OF OPERATIONS

 

  

 

Akros Monthly
Payout ETF

   

Year Ended
November 30,
2023

Investment Income:

 

 

 

 

Dividends*

 

$

58,698

 

Total Investment Income

 

 

58,698

 

   

 

 

 

Expenses:

 

 

 

 

Advisory fees

 

 

16,398

 

Total Expenses

 

 

16,398

 

Less fees waived:

 

 

 

 

Waiver

 

 

(5,466

)

Net Expenses

 

 

10,932

 

Net Investment Income (Loss)

 

 

47,766

 

   

 

 

 

Realized and Unrealized Gain (Loss)

 

 

 

 

Net realized gain (loss) from:

 

 

 

 

Investments

 

 

(89,297

)

In-kind redemptions

 

 

135,667

 

Net realized gain (loss)

 

 

46,370

 

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

Investments

 

 

1,447

 

Net change in unrealized appreciation (depreciation)

 

 

1,447

 

Net realized and unrealized gain (loss)

 

 

47,817

 

   

 

 

 

Net Increase (Decrease) in Net Assets Resulting from Operations

 

$

95,583

 

* Net of foreign withholding taxes

 

$

25

 

8

EXCHANGE LISTED FUNDS TRUST

STATEMENTS OF CHANGES IN NET ASSETS

 

  

 

Akros Monthly
Payout ETF

 

 

Year Ended November 30, 2023

 

For the period
May 6, 2022
(1) to November 30,
2022

From Investment Activities:

 

 

 

 

 

 

 

 

Operations:

 

 

 

 

 

 

 

 

Net investment income (loss)

 

$

47,766

 

 

$

28,199

 

Net realized gain (loss)

 

 

46,370

 

 

 

(72,773

)

Change in net unrealized appreciation (depreciation)

 

 

1,447

 

 

 

45,441

 

Net Increase (Decrease) in Net Assets Resulting from Operations

 

 

95,583

 

 

 

867

 

   

 

 

 

 

 

 

 

Distributions to Shareholders:

 

 

 

 

 

 

 

 

Distributions

 

 

(47,766

)

 

 

(28,199

)

Return of capital

 

 

(107,965

)

 

 

(39,557

)

Total Distributions to Shareholders

 

 

(155,731

)

 

 

(67,756

)

   

 

 

 

 

 

 

 

Capital Share Transactions:

 

 

 

 

 

 

 

 

Proceeds from shares issued

 

 

2,037,440

 

 

 

3,738,178

 

Cost of shares redeemed

 

 

(2,478,108

)

 

 

(1,178,572

)

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

 

 

(440,668

)

 

 

2,559,606

 

Total Increase (Decrease) in Net Assets

 

 

(500,816

)

 

 

2,492,717

 

   

 

 

 

 

 

 

 

Net Assets:

 

 

 

 

 

 

 

 

Beginning of period

 

 

2,492,741

 

 

 

24

(2)

End of period

 

$

1,991,925

 

 

$

2,492,741

 

   

 

 

 

 

 

 

 

Change in Shares Outstanding:

 

 

 

 

 

 

 

 

Shares outstanding, beginning of period

 

 

110,001

 

 

 

1

 

Shares issued

 

 

90,000

 

 

 

160,000

 

Shares redeemed

 

 

(110,000

)

 

 

(50,000

)

Shares outstanding, end of period

 

 

90,001

 

 

 

110,001

 

(1)  Commencement of operations.

(2)  Beginning capital of $24 was contributed by the Adviser in exchange for 1 share of the Fund in connection with the commencement of operations.

9

EXCHANGE LISTED FUNDS TRUST

FINANCIAL HIGHLIGHTS

   

Akros Monthly Payout ETF
Selected Per Share Data

 

Year Ended
November 30,
2023

 

For the period
May 6, 2022(1)
through
November 30,
2022

Net Asset Value, beginning of period

 

$

22.66

 

 

$

24.28

 

   

 

 

 

 

 

 

 

Investment Activities

 

 

 

 

 

 

 

 

Net investment income (loss)(2)

 

 

0.49

 

 

 

0.34

 

Net realized and unrealized gain (loss)

 

 

0.55

 

 

 

(1.16

)

Total from investment activities

 

 

1.04

 

 

 

(0.82

)

   

 

 

 

 

 

 

 

Distributions to shareholders from:

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.48

)

 

 

(0.33

)

Return of Capital

 

 

(1.09

)

 

 

(0.47

)

Total distributions

 

 

(1.57

)

 

 

(0.80

)

   

 

 

 

 

 

 

 

Net Asset Value, end of period

 

$

22.13

 

 

$

22.66

 

Total Return (%)

 

 

4.77

 

 

 

(3.36

)(3)

Total Return at Market Price (%)

 

 

4.84

 

 

 

(3.41

)(3)

   

 

 

 

 

 

 

 

Ratios to Average Net Assets

 

 

 

 

 

 

 

 

Expenses before fee waiver (%)(4)

 

 

0.75

 

 

 

0.75

(5)

Expenses after fee waiver (%)(4)

 

 

0.50

 

 

 

0.50

(5)

Net investment income (loss) (%)

 

 

2.18