Sector Allocation of Portfolio Assets |
3 | ||
Schedule of Investments |
4 | ||
Statement of Assets and Liabilities |
8 | ||
Statement of Operations |
9 | ||
Statements of Changes in Net Assets |
10 | ||
Financial Highlights |
12 | ||
Notes to the Financial Statements |
14 | ||
Expense Example |
26 | ||
Notice to Shareholders |
27 | ||
Statement Regarding Liquidity Risk Management Program |
28 |
SECTOR
ALLOCATION OF PORTFOLIO ASSET |
at
October 31, 2022 (Unaudited) |
SCHEDULE OF
INVESTMENTS |
at
October 31, 2022 (Unaudited) |
COMMON STOCKS – 99.12%
|
Shares
|
Value
|
||||||
Capital Goods – 5.68% |
||||||||
Fastenal Co. |
21,581 |
$ |
1,043,010 |
|||||
Nordson Corp. |
2,922 |
657,450 |
||||||
United Rentals, Inc. (a) |
2,381 |
751,705 |
||||||
2,452,165 |
||||||||
Commercial & Professional Services –
5.17% |
||||||||
Cintas Corp. |
2,565 |
1,096,666 |
||||||
Copart, Inc. (a) |
5,507 |
633,415 |
||||||
Insperity, Inc. |
4,257 |
502,411 |
||||||
2,232,492 |
||||||||
Consumer Durables & Apparel – 2.38%
|
||||||||
Lululemon Athletica, Inc. (a) |
1,554 |
511,328 |
||||||
Nike, Inc. – Class B |
5,583 |
517,433 |
||||||
1,028,761 |
||||||||
Consumer Services – 2.57% |
||||||||
Marriott International, Inc. – Class A
|
1,486 |
237,923 |
||||||
Starbucks Corp. |
10,095 |
874,126 |
||||||
1,112,049 |
||||||||
Diversified Financials – 2.76% |
||||||||
Coinbase Global, Inc. – Class A (a)
|
4,597 |
304,551 |
||||||
LPL Financial Holdings, Inc. |
2,109 |
539,166 |
||||||
OneMain Holdings, Inc. |
8,972 |
345,960 |
||||||
1,189,677 |
||||||||
Food, Beverage & Tobacco – 3.10%
|
||||||||
Constellation Brands, Inc. – Class A
|
2,999 |
740,993 |
||||||
Monster Beverage Corp. (a) |
6,369 |
596,903 |
||||||
1,337,896 |
||||||||
Household & Personal Products – 2.62%
|
||||||||
Estee Lauder Cos., Inc. – Class A
|
5,638 |
1,130,363 |
||||||
Materials – 1.66% |
||||||||
Sherwin-Williams Co. |
3,190 |
717,846 |
||||||
Media & Entertainment – 11.79%
|
||||||||
Alphabet, Inc. – Class A (a) |
11,312 |
1,069,097 |
SCHEDULE OF
INVESTMENTS (Continued) |
at
October 31, 2022 (Unaudited) |
COMMON STOCKS – 99.12%
(Continued) |
Shares
|
Value
|
||||||
Media & Entertainment – 11.79%
(Continued) |
||||||||
Alphabet, Inc. – Class C (a)(b) |
7,878 |
$ |
745,732 |
|||||
Electronic Arts, Inc. |
6,238 |
785,738 |
||||||
Meta Platforms, Inc. – Class A (a)
|
5,313 |
494,959 |
||||||
Netflix, Inc. (a) |
4,734 |
1,381,760 |
||||||
Trade Desk, Inc. – Class A (a) |
11,513 |
612,952 |
||||||
5,090,238 |
||||||||
Pharmaceuticals, Biotechnology & Life
Sciences – 10.37% |
||||||||
Agilent Technologies, Inc. |
4,936 |
682,896 |
||||||
Charles River Laboratories International,
Inc. (a) |
1,530 |
324,743 |
||||||
IQVIA Holdings, Inc. (a) |
2,704 |
566,948 |
||||||
Mettler-Toledo International, Inc. (a)
|
1,029 |
1,301,613 |
||||||
Waters Corp. (a) |
2,773 |
829,598 |
||||||
Zoetis, Inc. |
5,121 |
772,144 |
||||||
4,477,942 |
||||||||
Retailing – 14.81% |
||||||||
Amazon.com, Inc. (a) |
16,467 |
1,686,880 |
||||||
Burlington Stores, Inc. (a) |
2,696 |
385,420 |
||||||
Dick’s Sporting Goods, Inc. |
11,828 |
1,345,553 |
||||||
Home Depot, Inc. |
1,780 |
527,111 |
||||||
Lithia Motors, Inc. |
3,619 |
717,105 |
||||||
Pool Corp. |
993 |
302,100 |
||||||
RH (a) |
887 |
225,236 |
||||||
Williams-Sonoma, Inc. |
9,724 |
1,204,123 |
||||||
6,393,528 |
||||||||
Semiconductors & Semiconductor
Equipment – 8.36% |
||||||||
Broadcom, Inc. |
4,076 |
1,916,209 |
||||||
KLA Corp. |
5,358 |
1,695,539 |
||||||
3,611,748 |
||||||||
Software & Services – 12.07% |
||||||||
Accenture PLC – Class A (c) |
784 |
222,578 |
||||||
Adobe Systems, Inc. (a) |
1,676 |
533,806 |
||||||
Cognizant Technology Solutions Corp. –
Class A |
7,240 |
450,690 |
||||||
EPAM Systems, Inc. (a) |
2,297 |
803,950 |
SCHEDULE OF
INVESTMENTS (Continued) |
at
October 31, 2022 (Unaudited) |
COMMON STOCKS – 99.12%
(Continued) |
Shares
|
Value
|
||||||
Software & Services – 12.07%
(Continued) |
||||||||
MasterCard, Inc. – Class A |
6,679 |
$ |
2,191,914 |
|||||
Paycom Software, Inc. (a) |
2,913 |
1,007,898 |
||||||
5,210,836 |
||||||||
Technology Hardware & Equipment –
13.31% |
||||||||
Amphenol Corp. – Class A |
23,395 |
1,774,043 |
||||||
Apple, Inc. |
15,927 |
2,442,246 |
||||||
Arista Networks, Inc. (a) |
1,887 |
228,063 |
||||||
CDW Corp. of Delaware |
2,672 |
461,748 |
||||||
IPG Photonics Corp. (a) |
2,669 |
228,626 |
||||||
Trimble, Inc. (a) |
6,190 |
372,390 |
||||||
Zebra Technologies Corp. – Class A (a)
|
844 |
239,038 |
||||||
5,746,154 |
||||||||
Transportation – 2.47% |
||||||||
Old Dominion Freight Line, Inc. |
3,893 |
1,069,018 |
||||||
TOTAL COMMON STOCKS
|
||||||||
(Cost $19,615,252) |
42,800,713 |
|||||||
MONEY MARKET FUND –
1.04% |
||||||||
Fidelity Government Portfolio – Class I,
2.86% (d) |
448,116 |
448,116 |
||||||
TOTAL MONEY MARKET
FUND |
||||||||
(Cost $448,116) |
448,116 |
|||||||
TOTAL INVESTMENTS
|
||||||||
(Cost $20,063,368) – 100.16%
|
43,248,829 |
|||||||
Liabilities in Excess of Other Assets –
(0.16)% |
(67,394 |
) | ||||||
TOTAL NET ASSETS –
100.00% |
$ |
43,181,435 |
(a) |
Non-income producing security.
|
(b) |
Non-voting shares. |
(c) |
U.S. traded security of a foreign issuer.
|
(d) |
Rate shown is the 7-day annualized yield
as of October 31, 2022. |
STATEMENT OF
ASSETS AND LIABILITIES |
at
October 31, 2022 (Unaudited) |
Assets: |
||||
Investments,
at value (cost $20,063,368) |
$ |
43,248,829 |
||
Receivables
|
||||
Dividends
and interest |
21,173 |
|||
Prepaid
expenses |
1,426 |
|||
Total
assets |
43,271,428 |
|||
Liabilities: |
||||
Payables
|
||||
Advisory
fee (Note 4) |
19,722 |
|||
Audit
fees |
31,988 |
|||
Administration
and accounting fees |
21,183 |
|||
Transfer
agent fees and expenses |
4,996 |
|||
Shareholder
reporting |
4,813 |
|||
Chief
Compliance Officer fee |
3,744 |
|||
Legal
fees |
687 |
|||
Custody
fees |
1,468 |
|||
Accrued
expenses and other payables |
1,392 |
|||
Total
liabilities |
89,993 |
|||
Net assets |
$ |
43,181,435 |
||
Net assets consist of: |
||||
Paid-in
capital |
$ |
19,621,977 |
||
Total
distributable earnings |
23,559,458 |
|||
Net assets |
$ |
43,181,435 |
||
Calculation of net assets: |
||||
Net
assets |
$ |
43,181,435 |
||
Shares
issued (unlimited number of beneficial |
||||
interest
authorized, $0.01 par value) |
1,439,096 |
|||
Net
asset value per share |
$ |
30.01 |
STATEMENT OF
OPERATIONS |
For the Six Months Ended October 31, 2022
(1)
(Unaudited)
|
Investment income: |
||||
Dividends |
$ |
208,096 |
||
Interest |
3,984 |
|||
Total
investment income |
212,080 |
|||
Expenses: |
||||
Investment advisory fees (Note 4) |
152,535 |
|||
Administration and accounting fees (Note 4) |
41,140 |
|||
Audit fees |
10,988 |
|||
Transfer agent fees and expenses (Note 4) |
10,216 |
|||
Chief Compliance Officer fees (Note 4) |
7,495 |
|||
Trustee fees and expenses |
6,459 |
|||
Reports to shareholders |
4,123 |
|||
Legal fees |
3,775 |
|||
Federal and state registration fees |
3,087 |
|||
Other expenses |
3,060 |
|||
Custody fees (Note 4) |
2,775 |
|||
Insurance expense |
1,352 |
|||
Total
expenses before advisory fee waiver |
247,005 |
|||
Advisory
fee waiver (Note 4) |
(6,302 |
) | ||
Net
expenses |
240,703 |
|||
Net investment loss |
(28,623 |
) | ||
Realized and unrealized loss on
investments: |
||||
Net
realized loss on transactions on investments |
(355,182 |
) | ||
Net
change in unrealized appreciation/(depreciation) on investments |
(2,668,695 |
) | ||
Net realized and unrealized loss on
investments |
(3,023,877 |
) | ||
Net decrease in net assets resulting from
operations |
$ |
(3,052,500 |
) |
(1) |
The Fund converted from a mutual fund to
an ETF pursuant to an Agreement and Plan of Reorganization on August 5,
2022. See Note 1 in the Notes to Financial Statements for additional
information about the Reorganization. |
STATEMENTS
OF CHANGES IN NET ASSETS |
Six
Months Ended |
||||||||
October
31, 2022 (1)
|
Year
Ended |
|||||||
(Unaudited)
|
April
30, 2022 |
|||||||
Operations: |
||||||||
Net investment loss |
$ |
(28,623 |
) |
$ |
(160,796 |
) | ||
Net realized gain/(loss) on investments
|
(355,182 |
) |
4,614,341 |
|||||
Net change in unrealized |
||||||||
appreciation/(depreciation)
on investments |
(2,668,695 |
) |
(12,339,988 |
) | ||||
Net
decrease in net assets |
||||||||
resulting from operations |
(3,052,500 |
) |
(7,886,443 |
) | ||||
Distributions to
Shareholders: |
||||||||
Institutional Class |
— |
(4,407,926 |
) | |||||
Total
distributions to shareholders |
— |
(4,407,926 |
) | |||||
Capital Share Transactions: |
||||||||
Proceeds from shares sold |
||||||||
Investor
Class shares* |
— |
538,464 |
||||||
Institutional
Class shares |
26,415,782 |
2,824,181 |
||||||
Proceeds
from converted shares* |
— |
19,573,089 |
||||||
Proceeds from shares issued to holders |
||||||||
in reinvestment of dividends |
||||||||
Institutional
Class shares |
— |
4,407,926 |
||||||
Cost of shares redeemed |
||||||||
Investor
Class shares* |
— |
(19,801,043 |
) | |||||
Institutional
Class shares |
(30,806,301 |
) |
(2,272,672 |
) | ||||
Redemption fees retained |
||||||||
Institutional
Class shares |
2 |
256 |
||||||
Net
increase/(decrease) in net assets |
||||||||
from capital share transactions
|
(4,390,517 |
) |
5,270,201 |
|||||
Total decrease in net
assets |
(7,443,017 |
) |
(7,024,168 |
) | ||||
Net Assets: |
||||||||
Beginning of period |
50,624,452 |
57,648,620 |
||||||
End of period |
$ |
43,181,435 |
$ |
50,624,452 |
* |
Investor Class Shares converted to
Institutional Class Shares on November 12, 2021. |
(1) |
The Fund converted from a mutual fund to
an ETF pursuant to an Agreement and Plan of Reorganization on August 5,
2022. See Note 1 in the Notes to Financial Statements for additional
information about the Reorganization. |
STATEMENTS
OF CHANGES IN NET ASSETS (Continued) |
Six
Months Ended |
||||||||
October
31, 2022 (1)
|
Year
Ended |
|||||||
(Unaudited)
|
April
30, 2022 |
|||||||
Changes in Shares Outstanding: |
||||||||
Shares sold |
||||||||
Investor
Class shares* |
— |
13,643 |
||||||
Institutional
Class shares |
826,381 |
65,493 |
||||||
Converted shares*
|
— |
427,245 |
||||||
Shares issued to holders in reinvestment
of dividends |
||||||||
Institutional
Class shares |
— |
104,354 |
||||||
Shares redeemed |
||||||||
Investor
Class shares* |
— |
(443,174 |
) | |||||
Institutional
Class shares |
(961,309 |
) |
(53,994 |
) | ||||
Net increase/(decrease) in shares
outstanding |
(134,928 |
) |
113,567 |
* |
Investor Class Shares converted to
Institutional Class Shares on November 12, 2021. |
(1) |
The Fund converted from a mutual fund to
an ETF pursuant to an Agreement and Plan of Reorganization on August 5,
2022. See Note 1 in the Notes to Financial Statements for additional
information about the Reorganization. |
FINANCIAL
HIGHLIGHTS |
Six
Months Ended |
||||
October
31, 2022 (1)
| ||||
(Unaudited)
|
||||
Net Asset Value – Beginning of Period
|
$ |
32.16 |
||
Income from Investment Operations:
|
||||
Net investment loss |
(0.02
|
)^ | ||
Net realized and unrealized gain/(loss) on investments |
(2.13 |
) | ||
Total
from investment operations |
(2.15 |
) | ||
Less Distributions: |
||||
Distributions from net realized gains |
— |
|||
Total
distributions |
— |
|||
Redemption fees |
0.00
|
^~ | ||
Net Asset Value – End of Period |
$ |
30.01 |
||
Total Return, at NAV |
-6.70 |
% +
| ||
Total Return, at Market |
-6.65 |
% +
| ||
Ratios and Supplemental Data: |
||||
Net assets, end of period (thousands) |
$ |
43,181 |
+
| |
Ratio of expenses to average net assets: |
||||
Before
fee waivers and recoupment |
1.05 |
% #
| ||
After
fee waivers and recoupment |
1.02 |
% #
| ||
Ratio of net investment loss to average net assets: |
||||
Before
fee waivers and recoupment |
(0.15 |
%) #
| ||
After
fee waivers and recoupment |
(0.12 |
%) #
| ||
Portfolio turnover rate (2)
|
3 |
% +
|
^ |
Based on average shares outstanding.
|
~ |
Amount is less than $0.01 per share.
|
+ |
Not annualized. |
# |
Annualized. |
(1) |
The Fund converted from a mutual fund to
an ETF pursuant to an Agreement and Plan of Reorganization on August 5,
2022. See Note 1 in the Notes to Financial Statements for additional
information about the Reorganization. |
(2) |
Excludes impact of in-kind transactions.
|
FINANCIAL
HIGHLIGHTS (Continued) |
Year
Ended April 30, |
||||||||||||||||||
2022
|
2021
|
2020
|
2019
|
2018
|
||||||||||||||
$ |
39.73 |
$ |
26.31 |
$ |
25.61 |
$ |
22.29 |
$ |
18.50 |
|||||||||
(0.10
|
)^ |
(0.15
|
)^ |
(0.10
|
)^ |
(0.10
|
)^ |
(0.10 |
) | |||||||||
(4.46 |
) |
15.45 |
0.91 |
3.97 |
3.89 |
|||||||||||||
(4.56 |
) |
15.30 |
0.81 |
3.87 |
3.79 |
|||||||||||||
(3.01 |
) |
(1.88 |
) |
(0.11 |
) |
(0.55 |
) |
— |
||||||||||
(3.01 |
) |
(1.88 |
) |
(0.11 |
) |
(0.55 |
) |
— |
||||||||||
0.00
|
^~ |
0.00
|
^~ |
— |
— |
— |
||||||||||||
$ |
32.16 |
$ |
39.73 |
$ |
26.31 |
$ |
25.61 |
$ |
22.29 |
|||||||||
-13.28 |
% |
59.01 |
% |
3.15 |
% |
17.95 |
% |
20.49 |
% | |||||||||
— |
% |
— |
% |
— |
% |
— |
% |
— |
% | |||||||||
$ |
50,624 |
$ |
40,964 |
$ |
27,850 |
$ |
24,936 |
$ |
21,140 |
|||||||||
1.03 |
% |
1.13 |
% |
1.29 |
% |
1.33 |
% |
1.39 |
% | |||||||||
1.10 |
% |
1.17 |
% |
1.24 |
% |
1.24 |
% |
1.24 |
% | |||||||||
(0.18 |
)% |
(0.39 |
)% |
(0.46 |
)% |
(0.51 |
)% |
(0.65 |
)% | |||||||||
(0.25 |
)% |
(0.43 |
)% |
(0.41 |
)% |
(0.42 |
)% |
(0.50 |
)% | |||||||||
13 |
% |
11 |
% |
12 |
% |
8 |
% |
8 |
% |
NOTES
TO FINANCIAL STATEMENTS |
October
31, 2022 (Unaudited) |
NOTES
TO FINANCIAL STATEMENTS (Continued) |
October
31, 2022 (Unaudited) |
A. |
Security
Valuation: All investments in securities are recorded at
their estimated fair value, as described in Note 3. | |
B. |
Federal
Income Taxes: It is the Fund’s policy to comply with the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no federal income or
excise tax provisions are required. | |
The Fund recognizes the tax benefits of
uncertain tax positions only where the position is “more likely than not”
to be sustained assuming examination by tax authorities. The tax
returns of the Fund’s prior three fiscal years are open for examination.
Management has reviewed all open tax years in major jurisdictions and
concluded that there is no impact on the Fund’s net assets and no tax
liability resulting from unrecognized tax events relating to uncertain
income tax positions taken or expected to be taken on a tax return. The
Fund identifies its major tax jurisdictions as U.S. Federal and the state
of Wisconsin. The Fund is not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits
will change materially in the next twelve months. | ||
C. |
Securities Transactions, Income and
Distributions: Securities transactions are accounted for on
the trade date. Realized gains and losses on securities sold are
|
NOTES
TO FINANCIAL STATEMENTS (Continued) |
October
31, 2022 (Unaudited) |
determined on the basis of identified
cost. Interest income is recorded on an accrual basis.
Dividend income and distributions to shareholders are recorded on the
ex-dividend date. Withholding taxes on foreign dividends have been
provided for in accordance with the Fund’s understanding of the applicable
country’s tax rules and rates. | ||
The Fund distributes substantially all of
its net investment income, if any, and net realized capital gains, if any,
annually. Distributions from net realized gains for book purposes
may include short-term capital gains. All short-term capital gains
are included in ordinary income for tax purposes. The amount of
dividends and distributions to shareholders from net investment income and
net realized capital gains is determined in accordance with federal income
tax regulations, which differ from accounting principles generally
accepted in the United States of America. To the extent these
book/tax differences are permanent, such amounts are reclassified within
the capital accounts based on their federal tax treatment. | ||
Investment income, expenses (other than
those specific to the class of shares), and realized and unrealized gains
and losses on investments are allocated to the separate classes of the
Fund’s shares based upon their relative net assets on the date income is
earned or expensed and realized and unrealized gains and losses are
incurred. | ||
The Fund is charged for those expenses
that are directly attributable to it, such as investment advisory, custody
and transfer agent fees. Expenses that are not attributable to a
fund are typically allocated among the funds in the Trust proportionately
based on allocation methods approved by the Board of Trustees (the
“Board”). Common expenses of the Trust are typically allocated among
the funds in the Trust based on a fund’s respective net assets, or by
other equitable means. | ||
D. |
REITs:
The Fund is able to make certain investments in real estate
investment trusts (“REITs”) which pay dividends to their shareholders
based upon available funds from operations. It is quite common for
these dividends to exceed the REITs’ taxable earnings and profits
resulting in the excess portion being designated as a return of
capital. The Fund intends to include the gross dividends from such
REITs in its annual distributions to its shareholders and, accordingly, a
portion of the Fund’s distributions may also be designated as a return of
capital. | |
E. |
Use of
Estimates: The preparation of financial statements in
conformity with accounting principles generally accepted in the United
States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of increases and
decreases in net assets during the reporting period. Actual results
could differ from those estimates. |
NOTES
TO FINANCIAL STATEMENTS (Continued) |
October
31, 2022 (Unaudited) |
F. |
Reclassification of Capital Accounts:
Accounting principles generally accepted in the United States of
America require that certain components of net assets relating to
permanent differences be reclassified between financial and tax
reporting. These reclassifications have no effect on net assets or
net asset value per share. | |
G. |
Events
Subsequent to the Fiscal Period End: In preparing the
financial statements as of October 31, 2022, management considered the
impact of subsequent events for the potential recognition or disclosure in
the financial statements. Management has determined there were no
subsequent events that would need to be disclosed in the Fund’s financial
statements. |
Level 1 – |
Unadjusted quoted prices in active
markets for identical assets or liabilities that the Fund has the ability
to access. | |
Level 2 – |
Observable inputs other than quoted
prices included in level 1 that are observable for the asset or liability,
either directly or indirectly. These inputs may include quoted
prices for the identical instrument on an inactive market, prices for
similar instruments, interest rates, prepayment speeds, credit risk, yield
curves, default rates and similar data. | |
Level 3 – |
Unobservable inputs for the asset or
liability, to the extent relevant observable inputs are not available,
representing the Fund’s own assumptions about the assumptions a market
participant would use in valuing the asset or liability, and would be
based on the best information available. |
NOTES
TO FINANCIAL STATEMENTS (Continued) |
October
31, 2022 (Unaudited) |
NOTES
TO FINANCIAL STATEMENTS (Continued) |
October
31, 2022 (Unaudited) |
Level
1 |
Level
2 |
Level
3 |
Total
|
|||||||||||||
Common Stocks |
||||||||||||||||
Communication
Services |
$ |
5,090,238 |
$ |
— |
$ |
— |
$ |
5,090,238 |
||||||||
Consumer
Discretionary |
8,534,338 |
— |
— |
8,534,338 |
||||||||||||
Consumer
Staples |
2,468,258 |
— |
— |
2,468,258 |
||||||||||||
Financials
|
1,189,677 |
— |
— |
1,189,677 |
||||||||||||
Health
Care |
4,477,942 |
— |
— |
4,477,942 |
||||||||||||
Industrials
|
5,753,675 |
— |
— |
5,753,675 |
||||||||||||
Information
Technology |
14,568,739 |
— |
— |
14,568,739 |
||||||||||||
Materials
|
717,846 |
— |
— |
717,846 |
||||||||||||
Total Common Stocks |
42,800,713 |
— |
— |
42,800,713 |
||||||||||||
Money Market Fund |
448,116 |
— |
— |
448,116 |
||||||||||||
Total Investments |
$ |
43,248,829 |
$ |
— |
$ |
— |
$ |
43,248,829 |
NOTES
TO FINANCIAL STATEMENTS (Continued) |
October
31, 2022 (Unaudited) |
Date
|
Amount
|
||
10/31/2025
|
$6,302
|
NOTES
TO FINANCIAL STATEMENTS (Continued) |
October
31, 2022 (Unaudited) |
Purchases
|
Sales
|
||
$1,182,017
|
$5,807,092
|
Six
Months Ended |
Year
Ended |
||||||||
October
31, 2022 |
April
30, 2022 |
||||||||
Long-Term
Capital Gains |
$ |
—
|
$ |
4,407,926 |
NOTES
TO FINANCIAL STATEMENTS (Continued) |
October
31, 2022 (Unaudited) |
Cost of investments (a)
|
$ |
24,909,960 |
|||
Gross unrealized appreciation |
28,304,354 |
||||
Gross unrealized depreciation |
(2,510,378 |
) | |||
Net unrealized appreciation (a)
|
25,793,976 |
||||
Undistributed long-term capital gains
|
876,539 |
||||
Total distributable earnings |
876,539 |
||||
Other accumulated gains/(losses)
|
(58,557 |
) | |||
Total accumulated earnings/(losses)
|
$ |
26,611,958 |
(a) |
The difference between the book-basis and
tax-basis net unrealized appreciation and cost is attributable primarily
to wash sales. |
NOTES
TO FINANCIAL STATEMENTS (Continued) |
October
31, 2022 (Unaudited) |
Authorized Participants, Market Makers, and
Liquidity Providers Concentration Risk. The Fund has a limited
number of financial institutions that may act as Authorized Participants
(“APs”). In addition, there may be a limited number of market makers
and/or liquidity providers in the marketplace. To the extent either of the
following events occur, Shares may trade at a material discount to NAV and
possibly face delisting: (i) APs exit the business or otherwise become
unable to process creation and/or redemption orders and no other APs step
forward to perform these services, or (ii) market makers and/or liquidity
providers exit the business or significantly reduce their business
activities and no other entities step forward to perform their functions.
| |
Costs of
Buying or Selling Shares. Due to the costs of buying or selling
Shares, including brokerage commissions imposed by brokers and bid-ask
spreads, frequent trading of Shares may significantly reduce investment
results and an investment in Shares may not be advisable for investors who
anticipate regularly making small investments. | |
Shares
May Trade at Prices Other Than NAV. As with all ETFs, Shares may be
bought and sold in the secondary market at market prices. Although it is
expected that the market price of Shares will approximate the Fund’s NAV,
there may be times when the market price of Shares is more than the NAV
intra-day (premium) or less than the NAV intra-day (discount) due to
supply and demand of Shares or during periods of market volatility. This
risk is heightened in times of market volatility, periods of steep market
declines, and periods when there is limited trading activity for Shares in
the secondary market, in which case such premiums or discounts may be
significant. | |
Trading.
Although Shares are listed for trading on NYSE Arca, Inc. (the
“Exchange”) and may be traded on U.S. exchanges other than the Exchange,
there can be no assurance that Shares will trade with any volume, or at
all, on any stock exchange. In stressed market conditions, the liquidity
of Shares may begin to mirror the liquidity of the Fund’s underlying
portfolio holdings, which can be significantly less liquid than Shares.
|
NOTES
TO FINANCIAL STATEMENTS (Continued) |
October
31, 2022 (Unaudited) |
NOTES
TO FINANCIAL STATEMENTS (Continued) |
October
31, 2022 (Unaudited) |
EXPENSE
EXAMPLE |
October
31, 2022 (Unaudited) |
Beginning
|
Ending
|
Expenses
Paid | |
Account
Value |
Account
Value |
During
Period (1)
| |
5/1/2022
|
10/31/2022
|
5/1/2022
– 10/31/2022 | |
Actual |
$1,000.00
|
$
933.00 |
$4.97
|
Hypothetical (5%
return |
|||
before
expenses) |
$1,000.00
|
$1,020.06
|
$5.19
|
(1)
|
Expenses are equal to the annualized
expense ratio of 1.02% multiplied by the average account value over the
period, multiplied by 184 (days in most recent fiscal half-year) / 365
days to reflect the one-half year expense. |
NOTICE
TO SHAREHOLDERS |
at
October 31, 2022 (Unaudited) |
STATEMENT
REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM |
at
October 31, 2022 (Unaudited) |