EXCHANGE LISTED FUNDS TRUST

Corbett Road Tactical Opportunity ETF (OPPX)

Semi-Annual Report

May 31, 2022

(Unaudited)

 

Exchange Listed Funds Trust

TABLE OF CONTENTS

 

May 31, 2022  
(Unaudited)  

Corbett Road Tactical Opportunity ETF

   

Schedule of Investments

 

1

Summary of Investments

 

2

Statement of Assets and Liabilities

 

3

Statement of Operations

 

4

Statements of Changes in Net Assets

 

5

Financial Highlights

 

6

Notes to Financial Statements

 

7

Disclosure of Fund Expenses

 

14

Review of Liquidity Risk Management Program

 

15

 

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

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

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

Distributor: Foreside Fund Services, LLC

i

Corbett Road Tactical Opportunity ETF

SCHEDULE OF INVESTMENTS

 

May 31, 2022  
(Unaudited)  

 

Number
of Shares

 

Value

COMMON STOCKS — 81.1%

   

COMMUNICATION SERVICES — 6.1%

     

 

 

Alphabet, Inc., Class A*

 

315

 

$

716,700

Liberty Media Corp.-Liberty Formula One, Class C*

 

7,096

 

 

442,010

       

 

1,158,710

CONSUMER DISCRETIONARY — 5.2%

     

 

 

Amazon.com, Inc.*

 

206

 

 

495,263

O’Reilly Automotive, Inc.*

 

798

 

 

508,462

       

 

1,003,725

CONSUMER STAPLES — 8.0%

     

 

 

Archer-Daniels-Midland Co.

 

3,591

 

 

326,135

Coca-Cola Co. (The)

 

6,817

 

 

432,061

Costco Wholesale Corp.

 

1,662

 

 

774,858

       

 

1,533,054

ENERGY — 7.5%

     

 

 

EOG Resources, Inc.

 

5,339

 

 

731,229

Exxon Mobil Corp.

 

4,368

 

 

419,328

Valero Energy Corp.

 

2,168

 

 

280,973

       

 

1,431,530

FINANCIALS — 3.8%

     

 

 

Nasdaq, Inc.

 

1,889

 

 

293,286

Progressive Corp. (The)

 

3,664

 

 

437,409

       

 

730,695

HEALTH CARE — 14.7%

     

 

 

Anthem, Inc.

 

1,079

 

 

549,869

Eli Lilly & Co.

 

1,647

 

 

516,236

Halozyme Therapeutics, Inc.*

 

10,344

 

 

475,617

Molina Healthcare, Inc.*

 

1,450

 

 

420,819

STERIS PLC

 

1,772

 

 

404,370

Vertex Pharmaceuticals, Inc.*

 

1,650

 

 

443,273

       

 

2,810,184

INDUSTRIALS — 9.2%

     

 

 

Carlisle Cos., Inc.

 

2,301

 

 

585,443

Northrop Grumman Corp.

 

969

 

 

453,463

Quanta Services, Inc.

 

6,019

 

 

716,261

       

 

1,755,167

INFORMATION TECHNOLOGY — 18.1%

 

 

 

ASML Holding NV

 

677

 

 

390,148

Automatic Data Processing, Inc.

 

1,455

 

 

324,378

Broadcom, Inc.

 

823

 

 

477,447

Jack Henry & Associates, Inc.

 

2,160

 

 

406,339

KLA Corp.

 

1,614

 

 

588,868

Mastercard, Inc., Class A

 

1,772

 

 

634,146

Visa, Inc., Class A

 

3,034

 

 

643,724

       

 

3,465,050

 

Number
of Shares

 

Value

COMMON STOCKS (Continued)

   

MATERIALS — 2.4%

     

 

 

CF Industries Holdings, Inc.

 

4,651

 

$

459,379

       

 

 

UTILITIES — 6.1%

     

 

 

Exelon Corp.

 

9,275

 

 

455,866

NextEra Energy, Inc.

 

9,271

 

 

701,722

       

 

1,157,588

TOTAL COMMON STOCKS
(Cost $14,942,719)

     

 

15,505,082

       

 

 

EXCHANGE-TRADED FUNDS — 16.9%

   

EQUITY — 6.9%

     

 

 

Vanguard S&P 500 ETF

 

3,488

 

 

1,324,324

       

 

 

FIXED INCOME — 10.0%

     

 

 

iShares Short Treasury Bond ETF

 

17,358

 

 

1,913,546

TOTAL EXCHANGE-TRADED FUNDS
(Cost $3,246,702)

     

 

3,237,870

       

 

 

SHORT-TERM INVESTMENTS — 1.9%

   

Invesco Government & Agency Portfolio - Institutional Class, 0.68%(a)

 

365,593

 

 

365,593

TOTAL SHORT TERM INVESTMENTS
(Cost $365,593)

     

 

365,593

TOTAL INVESTMENTS — 99.9%
(Cost $18,555,014)

     

 

19,108,545

Other Assets in Excess of Liabilities — 0.1%

     

 

9,124

TOTAL NET ASSETS — 100.0%

     

$

19,117,669

*    Non-income producing security.

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

1

Corbett Road Tactical Opportunity ETF

SUMMARY OF INVESTMENTS

 

May 31, 2022  
(Unaudited)  

Security Type/Sector

 

Percent of
Total Net
Assets

Common Stocks

   

 

Communication Services

 

6.1

%

Consumer Discretionary

 

5.2

%

Consumer Staples

 

8.0

%

Energy

 

7.5

%

Financials

 

3.8

%

Health Care

 

14.7

%

Industrials

 

9.2

%

Information Technology

 

18.1

%

Materials

 

2.4

%

Utilities

 

6.1

%

Total Common Stocks

 

81.1

%

Exchange-Traded Funds

   

 

Equity

 

6.9

%

Fixed Income

 

10.0

%

Total Exchange-Traded Funds

 

16.9

%

Short-Term Investments

 

1.9

%

Total Investments

 

99.9

%

Other Assets in Excess of Liabilities

 

0.1

%

Total Net Assets

 

100.0

%

2

EXCHANGE LISTED FUNDS TRUST

STATEMENT OF ASSETS AND LIABILITIES

 

May 31, 2022  
(Unaudited)  

 

 

Corbett
Road Tactical
Opportunity
ETF

Assets:

 

 

 

 

Investments, at value

 

$

19,108,545

 

Dividends receivable

 

 

20,967

 

Total Assets

 

 

19,129,512

 

   

 

 

 

Liabilities:

 

 

 

 

Advisory fee payable

 

 

11,843

 

Total Liabilities

 

 

11,843

 

   

 

 

 

Net Assets

 

$

19,117,669

 

   

 

 

 

Net Assets Consist of:

 

 

 

 

Paid-in capital

 

$

21,668,659

 

Distributable earnings (loss)

 

 

(2,550,990

)

Net Assets

 

$

19,117,669

 

   

 

 

 

Net Assets

 

$

19,117,669

 

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

 

 

850,000

 

Net Asset Value, Offering and Redemption Price Per Share

 

$

22.49

 

Investments, at cost

 

$

18,555,014

 

3

EXCHANGE LISTED FUNDS TRUST

STATEMENT OF OPERATIONS

 

  

   

 

Corbett
Road Tactical
Opportunity
ETF

For the Six
Months Ended
May 31,
2022
(Unaudited)

Investment Income:

 

 

 

 

Dividends*

 

$

89,634

 

Total Investment Income

 

 

89,634

 

   

 

 

 

Expenses:

 

 

 

 

Advisory fees

 

 

70,822

 

Total Expenses

 

 

70,822

 

Net Investment Income (Loss)

 

 

18,812

 

   

 

 

 

Realized and Unrealized Gain (Loss)

 

 

 

 

Net realized gain (loss) from:

 

 

 

 

Investments

 

 

(2,745,884

)

Net realized gain (loss)

 

 

(2,745,884

)

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

Investments

 

 

(1,327,277

)

Net change in unrealized appreciation (depreciation)

 

 

(1,327,277

)

Net realized and unrealized gain (loss)

 

 

(4,073,161

)

Net Increase (Decrease) in Net Assets Resulting from Operations

 

$

(4,054,349

)

* Net of foreign withholding taxes

 

$

613

 

4

EXCHANGE LISTED FUNDS TRUST

STATEMENTS OF CHANGES IN NET ASSETS

 

  

   

 

Corbett Road Tactical
Opportunity ETF

For the Six
Months Ended
May 31,
2022
(Unaudited)

 

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

From Investment Activities:

 

 

 

 

 

 

 

 

Operations:

 

 

 

 

 

 

 

 

Net investment income (loss)

 

$

18,812

 

 

$

(8,332

)

Net realized gain (loss)

 

 

(2,745,884

)

 

 

(344,881

)

Change in net unrealized appreciation (depreciation)

 

 

(1,327,277

)

 

 

1,880,808

 

Net Increase (Decrease) in Net Assets Resulting from Operations

 

 

(4,054,349

)

 

 

1,527,595

 

   

 

 

 

 

 

 

 

Capital Transactions:

 

 

 

 

 

 

 

 

Proceeds from shares issued

 

 

4,381,921

 

 

 

20,296,161

 

Cost of shares redeemed

 

 

 

 

 

(3,033,659

)

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

 

 

4,381,921

 

 

 

17,262,502

 

Total Increase (Decrease) in Net Assets

 

 

327,572

 

 

 

18,790,097

 

   

 

 

 

 

 

 

 

Net Assets:

 

 

 

 

 

 

 

 

Beginning of period

 

 

18,790,097

 

 

 

 

End of period

 

$

19,117,669

 

 

$

18,790,097

 

   

 

 

 

 

 

 

 

Change in Shares Outstanding:

 

 

 

 

 

 

 

 

Shares outstanding, beginning of period

 

 

675,000

 

 

 

 

Shares issued

 

 

175,000

 

 

 

800,000

 

Shares redeemed

 

 

 

 

 

(125,000

)

Shares outstanding, end of period

 

 

850,000

 

 

 

675,000

 

(1)  Commencement of operations.

5

EXCHANGE LISTED FUNDS TRUST

FINANCIAL HIGHLIGHTS

 

  

Corbett Road Tactical Opportunity ETF
Selected Per Share Data

 

For the Six
Months Ended
May 31,
2022
(Unaudited)

 

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

Net Asset Value, beginning of period

 

$

27.84

 

 

$

25.34

 

Investment Activities

 

 

 

 

 

 

 

 

Net investment income (loss)(2)

 

 

0.02

 

 

 

(0.02

)

Net realized and unrealized gain (loss)

 

 

(5.37

)

 

 

2.52

 

Total from investment activities

 

 

(5.35

)

 

 

2.50

 

Net Asset Value, end of period

 

$

22.49

 

 

$

27.84

 

Total Return (%)

 

 

(19.20

)(3)

 

 

9.87

(3)

Total Return at Market Price (%)

 

 

(19.25

)(3)

 

 

9.86

(3)

Ratios to Average Net Assets

 

 

 

 

 

 

 

 

Expenses (%)

 

 

0.75

(4)

 

 

0.75

(4)

Net investment income (loss) (%)

 

 

0.20

(4)

 

 

(0.09

)(4)

Supplemental Data

 

 

 

 

 

 

 

 

Net Assets at end of period (000’s)

 

$

19,118

 

 

$

18,790

 

Portfolio turnover (%)(5)

 

 

91

(3)

 

 

45

(3)

(1)  Commencement of operations.

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

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

(4)  Annualized for periods less than one year.

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

6

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS

 

May 31, 2022  

(Unaudited)  

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 assets of each series in the Trust are segregated and a shareholder’s interest is limited to the series in which Shares are held. The financial statements herein are for the Corbett Road Tactical Opportunity ETF (the “Fund”).

The Fund is an actively managed exchange-traded fund (“ETF”). Unlike index ETFs, actively managed ETFs do not seek to track the performance of a specified index. Instead, the Fund uses an active investment strategy in seeking to meet its investment objective. 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 Fund’s investment objective is to seek to provide long-term total return by investing in equity securities of companies listed on U.S. securities exchange, including common stocks and American Depository Receipts (“ADRs”). The Fund commenced operations on February 25, 2021.

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

Note 2 – Basis of Presentation and Significant Accounting Policies

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

(a) Valuation of Investments

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

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

7

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

May 31, 2022  

(Unaudited)  

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

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

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

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

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

Pursuant to the valuation procedures noted previously, equity securities, ETFs 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 May 31, 2022 for the Fund based upon the three levels defined above:

Corbett Road Tactical Opportunity ETF

 

Level 1

 

Level 2

 

Level 3

 

Total

Investments

 

 

   

 

   

 

   

 

 

Common Stocks(a)

 

$

15,505,082

 

$

 

$

 

$

15,505,082

Exchange-Traded Funds(a)

 

 

3,237,870

 

 

 

 

 

 

3,237,870

Short-Term Investments

 

 

365,593

 

 

 

 

 

 

365,593

Total

 

$

19,108,545

 

$

 

$

 

$

19,108,545

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

(b) Investment Transactions and Related Income

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

(c) Foreign Currency Transactions

The accounting records of the Fund are maintained in U.S. dollars. Financial instruments and other assets and liabilities of the 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. The 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,

8

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

May 31, 2022  

(Unaudited)  

including financial instruments, resulting from changes in currency exchange rates. The 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 the Fund invests.

(d) Federal Income Tax

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

Management of the Fund has evaluated tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50%) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. In general, tax positions taken in previous tax years remain subject to examination by tax authorities (generally three years for federal income tax purposes). The determination has been made that there are not any uncertain tax positions that would require the Fund to record a tax liability and, therefore, there is no impact to the Fund’s financial statements. The Fund’s policy is to classify interest and penalties associated with underpayment of federal and state income taxes, if any, as income tax expense on its Statement of Operations. As of May 31, 2022, the Fund did not have any interest or penalties associated with the underpayment of any income taxes.

(e) Distributions to Shareholders

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

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

Note 3 – Transactions with Affiliates and Other Servicing Agreements

(a) Investment Advisory Agreement

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

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

9

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

May 31, 2022  

(Unaudited)  

Under the Advisory Agreement, the Adviser has agreed to pay all expenses of the Fund except for the advisory fee, interest, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, and distribution fees and expenses paid by the Trust under any distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act (collectively, “Excluded Expenses”). As part of an arrangement between the Adviser and the Sub-Adviser, the Sub-Adviser has agreed to assume the Adviser’s obligation to pay, or cause to be paid, all expenses of the Fund (except the Excluded Expenses) and, to the extent applicable, pay the Adviser a minimum fee.

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

(b) Investment Sub-Advisory Agreement

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

(c) Distribution Arrangement

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

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

Currently, no payments are made under the Distribution and Service Plan. Such payments may only be made after approval by the Board. The Adviser and its affiliates may, out of their own resources, pay amounts to third parties for distribution or marketing services on behalf of the Trust.

(d) Other Servicing Agreements

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

Note 4 – Investment Transactions

Purchases and sales of investments, excluding in-kind transactions and short-term investments, for the period ended May 31, 2022 were as follows:

Fund

 

Purchases

 

Sales

Corbett Road Tactical Opportunity ETF

 

$

17,089,226

 

$

17,031,687

Purchases and sales of in-kind transactions for the period ended May 31, 2022 were as follows:

Fund

 

Purchases

 

Sales

Corbett Road Tactical Opportunity ETF

 

$

4,241,818

 

$

10

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

May 31, 2022  

(Unaudited)  

Note 5 – Capital Share Transactions

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

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

To the extent contemplated by a participant agreement, in the event an Authorized Participant has submitted a redemption request in proper form but is unable to transfer all or part of the Shares comprising a Creation Unit to be redeemed by the Distributor, on behalf of the Fund, by the time as set forth in a participant agreement, the Distributor may nonetheless accept the redemption request in reliance on the undertaking by the Authorized Participant to deliver the missing Shares as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral equal to a percentage of the market value as set forth in the Participant Agreement. A participant agreement may permit the Fund to use such collateral to purchase the missing Shares, and could subject an Authorized Participant to liability for any shortfall between the cost of the Fund acquiring such Shares and the value of the collateral.

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

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

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

11

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Continued)

 

May 31, 2022  

(Unaudited)  

account of the Trust. The non-standard charges are payable to the Fund as it incurs costs in connection with the redemption of Creation Units, the receipt of the Fund’s securities and the cash redemption amount and other transactions costs. The standard redemption transaction fee for the Fund is $500, regardless of the number of Creation Units redeemed in the transaction.

Note 6 – Principal Risks

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

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

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.

Non-Diversification Risk. The Fund is non-diversified under the 1940 Act, 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 the Fund’s performance.

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

Note 7 – Federal Income Taxes

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

Fund

 

Undistributed
Ordinary
Income

 

Undistributed
Long-Term
Capital Gains
(Losses)

 

Accumulated
Capital and
Other Losses

 

Unrealized
Appreciation
(Depreciation)
on Investments

 

Distributable Earnings
(Loss)

Corbett Road Tactical Opportunity ETF

 

$

(8,332

)

 

$

(338,597)

 

$

 

$

1,850,288

 

$

1,503,359

12

EXCHANGE LISTED FUNDS TRUST

NOTES TO FINANCIAL STATEMENTS (Concluded)

 

May 31, 2022  

(Unaudited)  

At May 31, 2022, gross unrealized appreciation and depreciation of investments owned by the Fund, based on cost for federal income tax purposes were as follows:

Fund

 

Tax Cost
of Investments

 

Unrealized
Appreciation
on Investments

 

Unrealized
Depreciation
on Investments

 

Net Unrealized
Appreciation
(Depreciation)
on Investments

Corbett Road Tactical Opportunity ETF

 

$

18,555,014

 

$

981,106

 

$

(427,575)

 

$

553,531

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

Fund

 

Short-Term

 

Long-Term

Corbett Road Tactical Opportunity ETF

 

$

338,597

 

$

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

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

The tax character of current year distributions will be determined at the end of the current fiscal 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 Fund invests depends on future developments, including the duration and spread of the outbreak, and such developments may in turn impact the value of the Fund’s investments. The ultimate impact of the pandemic on the financial performance of the Fund’s investments is not reasonably able to be estimated at this time.

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 Period End

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

13

EXCHANGE LISTED FUNDS TRUST

DISCLOSURE OF FUND EXPENSES

 

May 31, 2022  

(Unaudited)  

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

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

Actual Fund Return

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

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

Hypothetical 5% Return

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

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

 

 

Beginning
Account Value
December 1, 2021

 

Ending
Account Value
May 31, 2022

 

Annualized
Expense
Ratio

 

Expenses Paid
During
Period(1)

Corbett Road Tactical Opportunity ETF

 

 

   

 

     

 

 

 

 

Actual Performance

 

$

            1,000.00

 

$

            808.00

 

0.75

%

 

$

            3.38

Hypothetical (5% return before expenses)

 

$

            1,000.00

 

$

            1,021.19

 

0.75

%

 

$

            3.78

(1)  Expenses paid during the period are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182 (the number of days in the most recent six-month period), then divided by 365.

14

EXCHANGE LISTED FUNDS TRUST

REVIEW OF LIQUIDITY RISK MANAGEMENT PROGRAM

 

May 31, 2022  

(Unaudited)  

Pursuant to Rule 22e-4 under the Investment Company Act of 1940, the Trust, on behalf of the series of the Trust covered by this shareholder report (the “Fund”), has adopted a liquidity risk management program to govern the Trust’s approach to managing liquidity risk. Rule 22e-4 seeks to promote effective liquidity risk management, thereby reducing the risk that the Fund will be unable to meet its redemption obligations and mitigating dilution of the interests of its shareholders. The Trust’s liquidity risk management program (the “Program”), which adopts the liquidity risk management policies and procedures of Exchange Traded Concepts, LLC, the Trust’s investment adviser (the “Adviser”), is tailored to reflect the Fund’s particular risks, but not to eliminate all adverse impacts of liquidity risk, which would be incompatible with the nature of the Fund.

The Adviser, which is the administrator of the Program, has formed a Liquidity Risk Working Group (“LRWG”) consisting of certain individuals from the Adviser’s portfolio management, capital markets and compliance teams. The LRWG is responsible for conducting an initial assessment of the liquidity risk of the Funds and to manage the liquidity risk of the Fund on an ongoing basis. Meetings of the LRWG are held no less than monthly.

At the February 2022 meeting of the Board of Trustees of the Trust, the Trustees received a report pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the period ended December 31, 2021. The report concluded that the Program is adequately designed to assess and manage the Fund’s liquidity risk and has been effectively implemented. The report reflected that no material changes have been made to the Program since its implementation.

There can be no assurance that the Program will achieve its objectives in the future. Please refer to the Fund’s prospectus for more information regarding the Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.

15

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

Investment Sub-Adviser:

Corbett Road Capital Management, LLC
7901 Jones Branch Drive Suite 800
McLean, VA 22102

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 Fund’s Statement of Additional Information, which is available without charge by visiting the Fund’s website at www.corbettroadfunds.com or the SEC’s website at www.sec.gov or by calling toll free (866) 983-0885.

In addition, a description of how the 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 (866) 983-0885 or on the SEC’s website at www.sec.gov.

Quarterly Portfolio Holdings Information

The 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. The Fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov. In addition, the Fund’s full portfolio holdings are updated daily and available on the Fund’s website at www.corbettroadfunds.com

This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.