Semi-Annual Report

April 30, 2022

Blue Horizon BNE ETF

Ticker: BNE

Blue Horizon BNE ETF

TABLE OF CONTENTS

 

Page

Letter to Shareholders

1

Portfolio Allocation

3

Schedule of Investments

4

Statement of Assets and Liabilities

12

Statement of Operations

13

Statements of Changes in Net Assets

14

Financial Highlights

15

Notes to Financial Statements

16

Expense Example

25

Review of Liquidity Risk Management Program

26

Federal Tax Information

27

Information About Portfolio Holdings

27

Information About Proxy Voting

27

Frequency Distribution of Premiums and Discounts

28

Information About the Trustees

28

Blue Horizon BNE ETF

Letter to Shareholders

Dear Shareholders,

Thank you for your investment in the Blue Horizon BNE ETF (“BNE” or the “Fund”). The information presented in this report relates to the operations of BNE from November 1, 2021 through April 30, 2022 (the “current fiscal period”).

The Fund seeks to track the performance, before fees and expenses, of the Blue Horizon New Energy Economy 100 Index (the “Index”). The Index seeks to track the performance of a portfolio of companies that are leaders, enablers, and beneficiaries of a transformational shift in the way energy is produced, stored, distributed, and consumed.

During the period, there was a massive and indiscriminate selling of growth/tech/innovation positions as anything thought to be long-duration equity (such as clean energy and associated aspects of the New Energy Economy) was caught in this rotation. In our view, this repricing was the result of a higher inflationary environment, a Federal Reserve (“FED”) that has turned hostile, and a slowing growth environment. Moreover, significant supply chain issues and disruptions globally in the New Energy space, as well as in many other industries, have contributed to the headwinds. We believe this repricing in global growth stocks offers a compelling entry point for the New Energy thematic, and as always, our index construction aims to capture the New Energy Economy ecosystem in the most holistic and diversified manner possible.

For the current fiscal period, the Fund’s market price decreased 24.19%, and the net asset value (“NAV”) decreased 23.33%. Meanwhile, the S&P 500 ® Energy Index, a broad market index, increased 33.92% over the same period while the Fund’s Index returned negative 23.09%.

The Fund commenced operations on December 8, 2020, and has 300,000 shares outstanding as of April 30, 2022.

We appreciate your investment in the Blue Horizon BNE ETF.

Sincerely,

J. Garrett Stevens, Chief Executive Officer

Exchange Traded Concepts, LLC, Adviser to the Fund

 1

Blue Horizon BNE ETF

LETTER TO SHAREHOLDERS

Must be preceded or accompanied by a prospectus.

The S&P 500 ® Energy Index comprises those companies included in the S&P 500 ® that are classified as members of the GICS ® energy sector. One cannot invest directly in an index.

Investing involves risk. Principal loss is possible. The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility and differences in accounting methods. These risks are greater for investments in emerging markets. ETFs may trade at a premium or discount to their net asset value. Shares of ETFs are bought and sold at market price (rather than NAV) and not individually redeemed from the fund. Brokerage commissions will reduce returns.

Market returns are based on the primary exchange’s official close price at 4:00 p.m. Eastern time and does not represent the returns you would receive if you traded shares at other times.

The Letter to Shareholders seeks to describe some of the Adviser’s current opinions and views of the financial markets. Although the Adviser believes it has a reasonable basis for any opinions or views expressed, actual results may differ, sometimes significantly so, from those expected or expressed.

Fund holdings and allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security. Please see the Schedule of Investments in this report for a complete list of Fund holdings.

Exchange Traded Concepts is the Adviser to Blue Horizon BNE ETF, which is distributed by Quasar Distributors, LLC (“Quasar”). Quasar is not affiliated with Exchange Traded Concepts, LLC.

2

Blue Horizon BNE ETF

Portfolio Allocation
As of April 30, 2022 (Unaudited)

Sector

Percentage of
Net Assets

Basic Materials

24.8%

Industrial

23.8

Energy

22.4

Consumer, Cyclical

16.8

Utilities

6.5

Communications

2.0

Technology

1.9

Financial

1.1

Short Term Investments

0.6

Other Assets in Excess of Liabilities

0.1

Total

100.0%

3

Blue Horizon BNE ETF

Schedule of Investments
April 30, 2022 (Unaudited)

 

Shares

 

Security Description

 

Value

 
       

COMMON STOCKS — 99.3%

       
       

AUSTRALIA — 3.5%

       
       

Basic Materials — 3.5%

       
    11,216  

Allkem, Ltd. (a)

  $ 97,640  
    9,230  

Iluka Resources, Ltd.

    74,383  
    36,114  

Pilbara Minerals, Ltd. (a)

    73,144  
              245,167  
              245,167  
       

BRAZIL — 2.2%

       
       

Basic Materials — 1.1%

       
    4,567  

Vale SA - ADR

    77,137  
                 
       

Industrial — 1.1%

       
    12,805  

WEG SA

    78,347  
              155,484  
       

CANADA — 7.0%

       
       

Basic Materials — 3.3%

       
    3,600  

Cameco Corporation

    93,433  
    8,414  

Largo, Inc. (a)

    70,706  
    2,661  

Lithium Americas Corporation (a)

    66,951  
              231,090  
       

Energy — 1.9%

       
    7,612  

Ballard Power Systems, Inc. (a)

    63,180  
    2,614  

Canadian Solar, Inc. (a)

    71,937  
              135,117  
       

Industrial — 1.8%

       
    10,135  

Li-Cycle Holdings Corporation (a)

    65,776  
    5,931  

Neo Performance Materials, Inc.

    59,911  
              125,687  
              491,894  
       

CHILE — 1.3%

       
       

Basic Materials — 1.3%

       
    1,204  

Sociedad Quimica y Minera de Chile SA - ADR

    88,855  
              88,855  

The accompanying notes are an integral part of these financial statements.

4

Blue Horizon BNE ETF

Schedule of Investments
April 30, 2022 (Unaudited) (Continued)

 

Shares

 

Security Description

 

Value

 
       

COMMON STOCKS — 99.3% (Continued)

       

CHINA — 9.0%

       
       

Basic Materials — 1.7%

       
    126,000  

China Molybdenum Company, Ltd. - H-Shares

  $ 64,076  
    4,400  

Ganfeng Lithium Company, Ltd. - H-Shares

    53,723  
              117,799  
       

Consumer, Cyclical — 4.3%

       
    2,500  

BYD Company, Ltd. - H-Shares

    75,132  
    2,559  

Li Auto, Inc. - ADR (a)

    57,398  
    3,067  

NIO, Inc. - ADR (a)

    51,219  
    1,926  

XPeng, Inc. - ADR (a)

    47,399  
    48,000  

Yadea Group Holdings, Ltd.

    73,167  
              304,315  
       

Energy — 2.1%

       
    1,786  

JinkoSolar Holding Company, Ltd. - ADR (a)

    91,550  
    40,000  

Xinyi Solar Holdings, Ltd.

    60,361  
              151,911  
       

Industrial — 0.9%

       
    43,600  

Xinjiang Goldwind Science & Technology Company, Ltd. - H-Shares

    62,681  
              636,706  
       

DENMARK — 1.1%

       
       

Energy — 1.1%

       
    2,904  

Vestas Wind System AS

    75,292  
              75,292  
       

FINLAND — 1.8%

       
       

Energy — 1.1%

       
    1,806  

Neste Oyj

    78,496  
       

Industrial — 0.7%

       
    6,487  

Wartsila Oyj Abp

    52,681  
              131,177  
       

FRANCE — 3.3%

       
       

Basic Materials — 1.1%

       
    444  

Air Liquide SA

    77,445  

The accompanying notes are an integral part of these financial statements.

5

Blue Horizon BNE ETF

Schedule of Investments
April 30, 2022 (Unaudited) (Continued)

 

Shares

 

Security Description

 

Value

 
       

COMMON STOCKS — 99.3% (Continued)

       

FRANCE — 3.3% (Continued)

       

Energy — 1.3%

       
    2,292  

Neoen SA (a)

  $ 92,366  
       

Industrial — 0.9%

       
    456  

Schneider Electric SE

    66,242  
              236,053  
       

GERMANY — 1.6%

       
       

Consumer, Cyclical — 0.8%

       
    267  

Volkswagen AG

    58,926  
       

Industrial — 0.8%

       
    478  

Siemens AG

    59,392  
              118,318  
       

HONG KONG — 1.0%

       
       

Energy — 1.0%

       
    227,000  

GCL Technology Holdings, Ltd. (a)

    73,486  
              73,486  
       

IRELAND — 1.8%

       
       

Consumer, Cyclical — 0.8%

       
    530  

Aptiv plc (a)

    56,392  
       

Industrial — 1.0%

       
    501  

Trane Technologies plc

    70,085  
              126,477  
       

ISRAEL — 1.0%

       
       

Energy — 1.0%

       
    288  

SolarEdge Technologies, Inc. (a)

    72,118  
              72,118  
       

ITALY — 1.0%

       
       

Utilities — 1.0%

       
    10,296  

Enel SpA

    67,539  
              67,539  
       

JAPAN — 3.5%

       
       

Consumer, Cyclical — 2.7%

       
    1,000  

Denso Corporation

    61,416  

The accompanying notes are an integral part of these financial statements.

6

Blue Horizon BNE ETF

Schedule of Investments
April 30, 2022 (Unaudited) (Continued)

 

Shares

 

Security Description

 

Value

 
       

COMMON STOCKS — 99.3% (Continued)

       

JAPAN — 3.5% (Continued)

       

Consumer, Cyclical — 2.7% (Continued)

       
    7,100  

Panasonic Holdings Corporation

  $ 63,596  
    4,000  

Toyota Motor Corporation

    69,018  
              194,030  
       

Industrial — 0.8%

       
    900  

Nidec Corporation

    59,317  
              253,347  
       

MALAYSIA — 1.1%

       
       

Basic Materials — 1.1%

       
    11,639  

Lynas Rare Earths, Ltd. (a)

    75,765  
              75,765  
       

NETHERLANDS — 1.9%

       
       

Consumer, Cyclical — 0.8%

       
    3,961  

Stellantis NV

    54,247  
       

Industrial — 1.1%

       
    889  

Alfen Beheer BV (a)

    80,825  
              135,072  
       

NEW ZEALAND — 1.0%

       
       

Utilities — 1.0%

       
    22,401  

Meridian Energy, Ltd.

    68,917  
              68,917  
       

NORWAY — 2.9%

       
       

Consumer, Cyclical — 0.9%

       
    13,753  

Zaptec AS (a)

    60,509  
       

Energy — 2.0%

       
    51,473  

NEL ASA (a)

    75,194  
    5,422  

Scatec ASA

    67,218  
              142,412  
              202,921  
       

REPUBLIC OF KOREA — 12.5%

       
       

Basic Materials — 3.4%

       
    770  

SK IE Technology Company, Ltd. (a)

    77,858  
    1,526  

Solus Advanced Materials Company, Ltd.

    87,964  

The accompanying notes are an integral part of these financial statements.

7

Blue Horizon BNE ETF

Schedule of Investments
April 30, 2022 (Unaudited) (Continued)

 

Shares

 

Security Description

 

Value

 
       

COMMON STOCKS — 99.3% (Continued)

       

REPUBLIC OF KOREA — 12.5% (Continued)

       

Basic Materials — 3.4% (Continued)

       
    391  

Soulbrain Company, Ltd.

  $ 76,581  
              242,403  
       

Communications — 1.1%

       
    163  

Samsung SDI Company, Ltd.

    79,294  
       

Consumer, Cyclical — 0.9%

       
    200  

LG Energy Solution (a)

    66,401  
       

Energy — 1.0%

       
    429  

SK Innovation Company, Ltd. (a)

    70,020  
       

Industrial — 6.1%

       
    259  

Ecopro BM Company, Ltd.

    98,240  
    972  

Iljin Materials Company, Ltd.

    68,102  
    492  

L&F Company, Ltd. (a)

    85,904  
    2,258  

People & Technology, Inc.

    90,787  
    790  

POSCO Chemical Company, Ltd.

    85,541  
              428,574  
              886,692  
       

RUSSIAN FEDERATION — 0.0% (b)

       
       

Basic Materials — 0.0% (b)

       
    2,645  

MMC Norilsk Nickel PJSC - ADR (d)

    26  
              26  
       

SPAIN — 0.9%

       
       

Energy — 0.9%

       
    3,926  

Siemens Gamesa Renewable Energy SA (a)

    63,472  
              63,472  
       

SWITZERLAND — 3.0%

       
       

Basic Materials — 1.2%

       
    13,233  

Glencore plc

    82,621  
       

Energy — 0.9%

       
    1,150  

Landis+Gyr Group AG

    64,926  
       

Industrial — 0.9%

       
    2,180  

ABB, Ltd.

    66,479  
              214,026  

The accompanying notes are an integral part of these financial statements.

8

Blue Horizon BNE ETF

Schedule of Investments
April 30, 2022 (Unaudited) (Continued)

 

Shares

 

Security Description

 

Value

 
       

COMMON STOCKS — 99.3% (Continued)

       

TAIWAN — 1.6%

       
       

Industrial — 1.6%

       
    1,442  

Advanced Energy Solution Holding Company, Ltd.

  $ 45,008  
    19,934  

Hon Hai Precision Industry Company, Ltd.

    68,982  
              113,990  
              113,990  
       

UNITED KINGDOM — 1.1%

       
       

Basic Materials — 1.1%

       
    254  

Linde plc

    79,238  
              79,238  
       

UNITED STATES — 34.2% (e)

       
       

Basic Materials — 6.0%

       
    315  

Air Products and Chemicals, Inc.

    73,732  
    385  

Albemarle Corporation

    74,239  
    991  

Alcoa Corporation

    67,190  
    1,754  

Freeport-McMoRan, Inc.

    71,125  
    3,423  

Livent Corporation (a)

    73,115  
    1,822  

MP Materials Corporation (a)

    69,309  
              428,710  
       

Communications — 0.9%

       
    2,123  

Uber Technologies, Inc. (a)

    66,832  
       

Consumer, Cyclical — 5.6%

       
    7,234  

EVgo, Inc. (a)

    65,540  
    4,322  

Ford Motor Company

    61,200  
    1,553  

General Motors Company (a)

    58,874  
    8,684  

Proterra, Inc. (a)

    53,928  
    9,572  

Solid Power, Inc. (a)

    77,724  
    87  

Tesla, Inc. (a)

    75,756  
              393,022  
       

Energy — 8.1%

       
    511  

Enphase Energy, Inc. (a)

    82,475  
    1,084  

First Solar, Inc. (a)

    79,165  

The accompanying notes are an integral part of these financial statements.

9

Blue Horizon BNE ETF

Schedule of Investments
April 30, 2022 (Unaudited) (Continued)

 

Shares

 

Security Description

 

Value

 
       

COMMON STOCKS — 99.3% (Continued)

       

UNITED STATES — 34.2% (e) (Continued)

       

Energy — 8.1% (Continued)

       
    14,413  

FuelCell Energy, Inc. (a)

  $ 58,805  
    1,042  

NextEra Energy Partners LP

    69,460  
    3,275  

Plug Power, Inc. (a)

    68,841  
    4,428  

Sunnova Energy International, Inc. (a)

    76,472  
    4,642  

SunPower Corporation (a)

    76,639  
    3,278  

Sunrun, Inc. (a)

    65,494  
              577,351  
       

Financial — 1.1%

       
    1,904  

Hannon Armstrong Sustainable Infrastructure Capital, Inc.

    76,141  
       

Industrial — 6.1%

       
    1,265  

AeroVironment, Inc. (a)

    101,605  
    4,009  

Bloom Energy Corporation - Class A (a)

    74,407  
    5,246  

ChargePoint Holdings, Inc. (a)

    67,883  
    1,376  

Itron, Inc. (a)

    65,745  
    466  

Stanley Black & Decker, Inc.

    55,990  
    544  

Universal Display Corporation

    69,485  
              435,115  
       

Technology — 1.9%

       
    2,695  

Allegro MicroSystems, Inc. (a)

    65,515  
    758  

Wolfspeed, Inc. (a)

    69,517  
              135,032  
       

Utilities — 4.5%

       
    1,389  

Ameresco, Inc. - Class A (a)

  70,061  
    1,006  

NextEra Energy, Inc.

    71,446  
    1,142  

Ormat Technologies, Inc.

    88,734  
    1,147  

Xcel Energy, Inc.

    84,029  
              314,270  
              2,426,473  
       

TOTAL COMMON STOCKS (Cost $8,394,148)

    7,038,505  
                 

The accompanying notes are an integral part of these financial statements.

10

Blue Horizon BNE ETF

Schedule of Investments
April 30, 2022 (Unaudited) (Continued)

 

Shares

 

Security Description

 

Value

 
       

SHORT-TERM INVESTMENTS — 0.6%

       
    43,668  

First American Government Obligations Fund - Class X, 0.22% (f)

  $ 43,668  
       

TOTAL SHORT-TERM INVESTMENTS (Cost $43,668)

    43,668  
       

Total Investments (Cost $8,437,816) — 99.9%

    7,082,173  
       

Other Assets in Excess of Liabilities — 0.1%

    8,898  
       

NET ASSETS — 100.0%

  $ 7,091,071  

Percentages are stated as a percent of net assets.

ADR

American Depositary Receipt.

(a)

Non-income producing security.

(b)

Represents less than 0.05% of net assets.

(c)

Value determined using significant unobservable inputs. Classified as Level 3 in the fair value hierarchy.

(d)

This security has been deemed illiquid according to the Fund’s liquidity guidelines. The value of this security is $26 or 0.00% of net assets.

(e)

To the extent that the Fund invests a significant portion of its assets in the securities of companies of a single country or region, it is more likely to be impacted by events or conditions affecting the country or region. See Note 7 in Notes to Financial Statements.

(f)

Rate shown is the annualized seven-day yield as of April 30, 2022.

The accompanying notes are an integral part of these financial statements.

11

Blue Horizon BNE ETF

Statement of Assets and Liabilities
April 30, 2022 (Unaudited)

ASSETS

       

Investments in securities, at value (Cost $8,437,816)

  $ 7,082,173  

Dividends and interest receivable

    14,488  

Total assets

    7,096,661  
         

LIABILITIES

       

Management fees payable, net of waiver

    5,576  

Bank fees payable

    14  

Total liabilities

    5,590  
         

NET ASSETS

  $ 7,091,071  
         

Net Assets Consist of:

       

Paid-in capital

  $ 9,329,255  

Total distributable earnings (accumulated deficit)

    (2,238,184 )

Net assets

  $ 7,091,071  
         

Net Asset Value:

       

Net assets

  $ 7,091,071  

Shares outstanding ^

    300,000  

Net asset value, offering and redemption price per share

  $ 23.64  

^

No par value, unlimited number of shares authorized.

The accompanying notes are an integral part of these financial statements.

12

Blue Horizon BNE ETF

Statement of Operations
For the Six-Months Ended April 30, 2022 (Unaudited)

INCOME

       

Dividends+

  $ 40,068  

Interest

    13  

Total investment income

    40,081  
         

EXPENSES

       

Management fees

    36,219  

Total expenses

    36,219  

Less: fees waived (Note 3)

    (814 )

Net expenses

    35,405  

Net investment income (loss)

    4,676  
         

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS

       

Net realized gain (loss) on:

       

Investments

    (368,711 )

Foreign currency transactions

    (2,720 )

Change in unrealized appreciation (depreciation) on:

       

Investments

    (1,790,925 )

Foreign currency translation

    (183 )

Net realized and unrealized gain (loss) on investments

    (2,162,539 )

Net increase (decrease) in net assets resulting from operations

  $ (2,157,863 )

+

Net of foreign taxes withheld of $6,498.

The accompanying notes are an integral part of these financial statements.

13

Blue Horizon BNE ETF

Statements of Changes in Net Assets

   

Six-Months Ended
April 30, 2022
(Unaudited)

   

Period Ended
October 31,
2021
(1)

 

OPERATIONS

               

Net investment income (loss)

  $ 4,676     $ 7,940  

Net realized gain (loss) on investments and foreign currency

    (371,431 )     (28,096 )

Change in unrealized appreciation (depreciation) on investments and foreign currency translation

    (1,791,108 )     435,178  

Net increase (decrease) in net assets resulting from operations

    (2,157,863 )     415,022  
                 

DISTRIBUTIONS TO SHAREHOLDERS

               

Net distributions to shareholders

          (221 )

Total distributions to shareholders

          (221 )
                 

CAPITAL SHARE TRANSACTIONS

               

Proceeds from shares sold

          11,734,338  

Payments for shares redeemed

          (2,903,860 )

Transaction fees (Note 7)

          3,655  

Net increase (decrease) in net assets derived from capital share transactions (a)

          8,834,133  

Net increase (decrease) in net assets

  $ (2,157,863 )   $ 9,248,934  
                 

NET ASSETS

               

Beginning of period

  $ 9,248,934     $  

End of period

  $ 7,091,071     $ 9,248,934  

(a)

A summary of capital share transactions is as follows:

   

Shares

   

Shares

 

Shares sold

          400,000  

Shares redeemed

          (100,000 )

Net increase (decrease)

          300,000  

(1)

The Fund commenced operations on December 8, 2020. The information presented is for the period from December 8, 2020 to October 31, 2021.

The accompanying notes are an integral part of these financial statements.

14

Blue Horizon BNE ETF

Financial Highlights
For a capital share outstanding throughout the period

   

Six-Months
Ended April
30, 2022
(Unaudited)

   

Period Ended
October 31,
2021
(1)

 

Net asset value, beginning of period

  $ 30.83     $ 25.00  
                 

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

               

Net investment income (loss) (2)

    0.02       0.03  

Net realized and unrealized gain (loss) on investments (8)

    (7.21 )     5.78  

Total from investment operations

    (7.19 )     5.81  
                 

DISTRIBUTIONS TO SHAREHOLDERS:

               

Distributions from:

               

Net investment income

          (0.00 ) (3)

Total distributions to shareholders

          (0.00 )
                 

CAPITAL SHARE TRANSACTIONS

               

Transaction fees (Note 6)

          0.02  

Net asset value, end of period

  $ 23.64     $ 30.83  
                 

Total return

    -23.33 % (4)     23.34 % (4)
                 

SUPPLEMENTAL DATA:

               

Net assets at end of period (000’s)

  $ 7,091     $ 9,249  
                 

RATIOS TO AVERAGE NET ASSETS:

               

Expenses before fees waived

    0.89 % (5)     0.89 % (5)

Expenses after fees waived

    0.87 % (5)(6)     0.87 % (5)(6)

Net investment income (loss) before fees waived

    0.09 % (5)     0.11 % (5)

Net investment income (loss) after fees waived

    0.11 % (5)(6)     0.13 % (5)(6)

Portfolio turnover rate (7)

    33 % (4)     76 % (4)

(1)

Commencement of operations on December 8, 2020.

(2)

Calculated based on average shares outstanding during the period.

(3)

Represents less than $0.005 per share.

(4)

Not annualized.

(5)

Annualized.

(6)

The Adviser has agreed to waive 2 basis points (0.02%) of its management fees for the Fund until at least February 28, 2023. See Note 3 in Notes to Financial Statements.

(7)

Excludes the impact of in-kind transactions.

(8)

Realized and unrealized gains and losses per share in this caption are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period.

The accompanying notes are an integral part of these financial statements.

15

Blue Horizon BNE ETF

Notes to Financial Statements
April 30, 2022 (Unaudited)

NOTE 1 – ORGANIZATION

Blue Horizon BNE ETF (the “Fund”) is a non-diversified series of ETF Series Solutions (“ESS” or the “Trust”), an open-end management investment company consisting of multiple investment series, organized as a Delaware statutory trust on February 9, 2012. The Trust is registered with the Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company and the offering of the Fund’s shares is registered under the Securities Act of 1933, as amended (the “Securities Act”). The investment objective of the Fund is to track the performance, before fees and expenses, of the Blue Horizon New Energy Economy 100 Index. The Fund commenced operations on December 8, 2020.

The end of the reporting period for the Fund is April 30, 2022, and the period covered by these Notes to Financial Statements is the six-month period from November 1, 2021 through April 30, 2022 (the “current fiscal period”).

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 Financial Services – Investment Companies.

The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

A.

Security Valuation. All equity securities, including domestic and foreign common stocks, preferred stocks and exchange-traded funds that are traded on a national securities exchange, except those listed on the Nasdaq Global Market ® , Nasdaq Global Select Market ® and the Nasdaq Capital Market ® exchanges (collectively, “Nasdaq”), are valued at the last reported sale price on the exchange on which the security is principally traded. Securities traded on Nasdaq will be valued at the Nasdaq Official Closing Price (“NOCP”). If, on a particular day, an exchange-traded or Nasdaq security does not trade, then the mean between the most recent quoted bid and asked prices will be used. All equity securities that are not traded on a listed exchange are valued at the last sale price in the over-the-counter market. If a non-exchange traded security does not trade on a particular day, then the mean between the last quoted closing bid and asked price will be used. Prices denominated in foreign currencies are converted to U.S. dollar equivalents at the current exchange rate, which approximates fair value.

16

Blue Horizon BNE ETF

NOTES TO FINANCIAL STATEMENTS
April 30, 2022 (Unaudited) (Continued)

Investments in mutual funds, including money market funds, are valued at their net asset value (“NAV”) per share.

Securities for which quotations are not readily available are valued at their respective fair values in accordance with pricing procedures adopted by the Fund’s Board of Trustees (the “Board”). When a security is “fair valued,” consideration is given to the facts and circumstances relevant to the particular situation, including a review of various factors set forth in the pricing procedures adopted by the Board. The use of fair value pricing by the Fund may cause the NAV of its shares to differ significantly from the NAV that would be calculated without regard to such considerations.

As described above, the Fund utilizes various methods to measure the fair value of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:

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.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

17

Blue Horizon BNE ETF

NOTES TO FINANCIAL STATEMENTS
April 30, 2022 (Unaudited) (Continued)

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The following is a summary of the inputs used to value the Fund’s investments as of the end of the current fiscal period:

Assets^

 

Level 1

   

Level 2

   

Level 3

   

Total

 

Common Stocks

  $ 7,038,479     $     $ 26     $ 7,038,505  

Short-Term Investments

    43,668                   43,668  

Total Investments in Securities

  $ 7,082,147     $     $ 26     $ 7,082,173  

^ See Schedule of Investments for breakout of investments by country and sector classifications.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

Balance
as of
10/31/2021

Net Realized
Gain (Loss)

Change in Net
Unrealized
Appreciation
(Depreciation)

Purchases

Common Stocks

$ —

$ —

$ —

$ —

 

Sales

Transfers
Into Level 3

Transfers
Out of
Level 3

Balance
as of
4/30/2022

Common Stocks

$ —

$ 26

$ —

$ 26

The following is a summary of quantitative information about Level 3 Fair Value Measurements:

 

Fair Value
as of
4/30/2022

Valuation
Techniques

Unobservable
Input

Impact to
valuation
from an
increase
to input *

Common Stocks

$ 26

Market comparable companies

Discount for lack of marketability

0.01 USD

*

MMC Norilsk Nickel PJSC - ADR has been valued between $0.01 and $32.31 per share throughout the period.

18

Blue Horizon BNE ETF

NOTES TO FINANCIAL STATEMENTS
April 30, 2022 (Unaudited) (Continued)

 

B.

Foreign Currency . Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments and currency gains or losses realized between the trade and settlement dates on securities transactions from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments. The Fund reports net realized foreign exchange gains or losses that arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign currency transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books 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 values of assets and liabilities, other than investments in securities at fiscal period end, resulting from changes in exchange rates.

 

C.

Federal Income Taxes. The Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all net taxable investment income and net capital gains to shareholders. Therefore, no federal income tax provision is required. The Fund plans to file U.S. Federal and various state and local tax returns.

The Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed the Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management 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 12 months. Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits on uncertain tax positions as income tax expenses in the Statement of Operations. During the current fiscal period, the Fund did not incur any interest or penalties.

 

D.

Security Transactions and Investment Income. Investment securities transactions are accounted for on the trade date. Gains and losses realized on sales of securities are determined on a specific identification basis. Dividend

19

Blue Horizon BNE ETF

NOTES TO FINANCIAL STATEMENTS
April 30, 2022 (Unaudited) (Continued)

income is recorded on the ex-dividend date. Non-cash dividends included in dividend income or separately disclosed, if any, are recorded at the fair value of the security received. Interest income is recorded on an accrual basis. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable tax rules and regulations.

Distributions received from the Fund’s investments in real estate investment trusts (“REITs”) may be characterized as ordinary income, net capital gain, or a return of capital. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, the Fund must use estimates in reporting the character of its income and distributions received during the current calendar year for financial statement purposes. The actual character of distributions to the Fund’s shareholders will be reflected on the Form 1099 received by shareholders after the end of the calendar year. Due to the nature of REIT investments, a portion of the distributions received by the Fund’s shareholders may represent a return of capital.

 

E.

Distributions to Shareholders. Distributions to shareholders from net investment income and net realized gains on securities are declared and paid by the Fund at least annually. Distributions are recorded on the ex-dividend date.

 

F.

Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the current fiscal period. Actual results could differ from those estimates.

 

G.

Share Valuation. The NAV per share of the Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash and other assets, minus all liabilities (including estimated accrued expenses) by the total number of shares outstanding of the Fund, rounded to the nearest cent. The Fund’s shares will not be priced on the days on which the New York Stock Exchange (“NYSE”) is closed for trading. The offering and redemption price per share for creation units of the Fund is equal to the Fund’s NAV per share.

 

H.

Guarantees and Indemnifications. In the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.

20

Blue Horizon BNE ETF

NOTES TO FINANCIAL STATEMENTS
April 30, 2022 (Unaudited) (Continued)

 

I.

Reclassification of Capital Accounts. U.S. GAAP requires 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 NAV per share.

The permanent differences primarily relate to redemptions in-kind and net operating losses. During the fiscal year ended October 31, 2021, the following table shows the reclassifications made:

Distributable Earnings
(Accumulated Deficit)

Paid-In
Capital

$(495,122)

$495,122

During the fiscal year ended October 31, 2021, the Fund realized $496,555 in net capital gains resulting from in-kind redemptions, in which shareholders exchanged Fund shares for securities held by the Fund rather than for cash. Because such gains are not taxable to the Fund, and are not distributed to shareholders, they have been reclassified from distributable earnings (accumulated deficit) to paid-in capital.

 

J.

Subsequent Events. In preparing these financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. There were no events or transactions that occurred during the period subsequent to the end of the current fiscal period that materially impacted the amounts or disclosures in the Fund’s financial statements.

NOTE 3 – COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS

Exchange Traded Concepts, LLC (the “Adviser”), serves as the investment adviser to the Fund. Pursuant to the Investment Advisory Agreement (“Advisory Agreement”) between the Trust, on behalf of the Fund, and the Adviser, the Adviser provides investment advice to the Fund and oversees the day-to-day operations of the Fund, subject to the direction and control of the Board and the officers of the Trust. Under the Advisory Agreement, the Adviser is also responsible for arranging transfer agency, custody, fund administration and accounting, and other non-distribution related services necessary for the Fund to operate. Under the Advisory Agreement, the Adviser has agreed to pay all expenses of the Fund, except for: the fee paid to the Adviser pursuant to the Advisory Agreement, interest charges on any borrowings, 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 distributions (12b-1) fees and expenses. For services provided to the Fund, the Fund pays the Adviser a

21

Blue Horizon BNE ETF

NOTES TO FINANCIAL STATEMENTS
April 30, 2022 (Unaudited) (Continued)

unified management fee, calculated daily and paid monthly, at an annual rate of 0.89% based on the Fund’s average daily net assets with a fee waiver of 0.02% until at least February 28, 2023. This agreement may only be terminated before that date by or with the consent of the Fund’s Board of Trustees.

The Adviser has entered into an agreement with Blue Horizon Capital LLC. (the “Sponsor”), under which the Sponsor agrees to (i) sub-license the Index to the Adviser for use by the Fund, (ii) assist with the development of and provide other support to the Fund, and (iii) assume the obligation of the Adviser to pay all expenses of the Fund, except Excluded Expenses, and, to the extent applicable, pay the Adviser’s minimum fee for its services under the arrangement. The Sponsor also provides marketing support for the Fund, including distributing marketing materials related to the Fund. For its services, the Sponsor is entitled to a fee from the Adviser, which is calculated daily and paid monthly, based on a percentage of the average daily net assets of the Fund. The Sponsor does not act as an investment adviser or otherwise provide investment advice to the Fund, but does serve as the Index Provider.

U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services” or “Administrator”), acts as the Fund’s Administrator and, in that capacity, performs various administrative and accounting services for the Fund. The Administrator prepares various federal and state regulatory filings, reports and returns for the Fund, including regulatory compliance monitoring and financial reporting, prepares reports and materials to be supplied to the Board and monitors the activities of the Fund’s Custodian, transfer agent and fund accountant. Fund Services also serves as the transfer agent and fund accountant to the Fund. U.S. Bank N.A. (the “Custodian”), an affiliate of Fund Services, serves as the Fund’s Custodian.

A Trustee and all officers of the Trust are affiliated with the Administrator and Custodian.

NOTE 4 – PURCHASES AND SALES OF SECURITIES

During the current fiscal period, purchases and sales of securities by the Fund, excluding short-term securities and in-kind transactions, were $2,703,815 and $2,709,081, respectively.

During the current fiscal period, there were no purchases or sales of U.S. Government securities.

During the current fiscal period, there were no in-kind transactions associated with creations and redemptions.

22

Blue Horizon BNE ETF

NOTES TO FINANCIAL STATEMENTS
April 30, 2022 (Unaudited) (Continued)

NOTE 5 – INCOME TAX INFORMATION

The components of distributable earnings (accumulated deficit) and cost basis of investments for federal income tax purposes at October 31, 2021 were as follows:

Tax cost of investments

  $ 9,030,724  

Gross tax unrealized appreciation

  $ 1,096,410  

Gross tax unrealized depreciation

    (878,156 )

Net tax unrealized appreciation (depreciation)

    218,254  

Undistributed ordinary income

     

Undistributed long-term capital gains

     

Other accumulated gain (loss)

    (298,575 )

Distributable earnings (accumulated deficit)

  $ (80,321 )

The difference between the cost basis for financial statement and federal income tax purposes is due primarily to timing differences in recognizing wash sales.

A regulated investment company may elect for any taxable year to treat any portion of any qualified late year loss as arising on the first day of the next taxable year. Qualified late year losses are certain capital and ordinary losses which occur during the portion of the Fund’s taxable year subsequent to October 31 and December 31, respectively. For the taxable year ended October 31, 2021, the Fund deferred, on a tax basis, no late-year ordinary losses and no post-October capital losses.

As of October 31, 2021, the Fund had a short-term capital loss carryforward of $298,575 and $0 of long-term capital loss carryforwards. These amounts do not have an expiration date.

The tax character of distributions paid by the Fund during the fiscal year ended October 31, 2021 was $221 of ordinary income.

NOTE 6 – SHARE TRANSACTIONS

Shares of the Fund are listed and traded on the New York Stock Exchange Arca, Inc. (“NYSE Arca”). Market prices for the shares may be different from its NAV. The Fund issues and redeems shares on a continuous basis at NAV generally in blocks of 25,000 shares, called, “Creation Units.” Creation Units are issued and redeemed principally in-kind for securities included in a specified universe. Once created, shares generally trade in the secondary market at market prices that change throughout the day. Except when aggregated in Creation Units, shares are not redeemable securities of the Fund. Creation Units may only be purchased or redeemed 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

23

Blue Horizon BNE ETF

NOTES TO FINANCIAL STATEMENTS
April 30, 2022 (Unaudited) (Continued)

System of the National Securities Clearing Corporation or (ii) a Depository Trust Company participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors do not qualify as Authorized Participants nor have the resources to buy and sell whole Creation Units. Therefore, they are unable to purchase or redeem shares directly from the Fund. Rather, most retail investors may purchase shares in the secondary market with the assistance of a broker and are subject to customary brokerage commissions or fees.

The Fund currently offers one class of shares, which has no front-end sales load, no deferred sales charges, and no redemption fee. A fixed transaction fee is imposed for the transfer and other transaction costs associated with the purchase or sale of Creation Units. The standard fixed transaction fee for the Fund is $1,000, payable to the Custodian. The fixed transaction fee may be waived on certain orders if the Fund’s Custodian has determined to waive some or all of the costs associated with the order or another party, such as the Adviser, has agreed to pay such fee. In addition, a variable fee may be charged on all cash transactions or substitutes for Creation Units of up to a maximum of 2% as a percentage of the value of the Creation Units subject to the transaction. Variable fees are imposed to compensate the Fund for the transaction costs associated with the cash transactions. Variable fees received by the Fund, if any, are displayed in the Capital Share Transactions section of the Statement of Changes in Net Assets. The Fund may issue an unlimited number of shares of beneficial interest, with no par value. All shares of the Fund have equal rights and privileges.

NOTE 7 – RISKS

Covid-19 Risk. The recent global outbreak of COVID-19 has disrupted economic markets and the prolonged economic impact is uncertain. 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 uncertainty may in turn impact the value of the Fund’s investments.

Geographic Investment Risk. To the extent that the Fund invests a significant portion of its assets in the securities of companies of a single country or region, it is more likely to be impacted by events or conditions affecting the country or region.

Russia/Ukraine Conflict. On February 24, 2022, Russia commenced a military attack on Ukraine. The outbreak of hostilities between the two countries could result in more widespread conflict and could have a severe adverse effect on the region and the markets. In addition, sanctions imposed on Russia by the United States and other countries, and any sanctions imposed in the future could have a significant adverse impact on the Russian economy and related markets. The price and liquidity of investments may fluctuate widely as a result of the conflict and related events. How long such conflict and related events will last and whether it will escalate further cannot be predicted, nor its effect on the Funds.

24

Blue Horizon BNE ETF

Expense Example
For the Six-Months Ended April 30, 2022 (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on purchases and sales of Fund shares, and (2) ongoing costs, including management fees and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated in the following Expense Example Table.

Actual Expenses

The first line of the table provides information about actual account values based on actual returns and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then, multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period’’ to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table provides information about hypothetical account values based on a hypothetical return and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of Fund shares. Therefore, the second line of the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher.

 

Beginning
Account Value
November 1, 2021

Ending
Account Value
April 30, 2022

Expenses
Paid During
the Period
(1)

Actual

$1,000.00

$ 766.70

$3.81

Hypothetical (5% annual return before expenses)

$1,000.00

$ 1,020.48

$4.36

(1)

The dollar amounts shown as expenses paid during the period are equal to the annualized net expense ratio, 0.87%, multiplied by the average account value during the period, multiplied by 181/365 to reflect the one-half year period.

25

Blue Horizon BNE ETF

Review of Liquidity Risk Management Program
(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 “Series”), 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 a fund will be unable to meet its redemption obligations and mitigating dilution of the interests of fund shareholders. The Trust’s liquidity risk management program is tailored to reflect the Series’ particular risks, but not to eliminate all adverse impacts of liquidity risk, which would be incompatible with the nature of such Series.

The investment adviser to the Series has adopted and implemented its own written liquidity risk management program (the “Program”) tailored specifically to assess and manage the liquidity risk of the Series.

At a recent 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 reasonably designed to assess and manage the Series’ liquidity risk and has operated adequately and effectively to manage such risk. The report reflected that there were no liquidity events that impacted the Series’ ability to timely meet redemptions without dilution to existing shareholders. The report further noted 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 prospectus for more information regarding the Series’ exposure to liquidity risk and other principal risks to which an investment in the Series may be subject.

26

Blue Horizon BNE ETF

Federal Tax Information
(Unaudited)

For the fiscal year ended October 31, 2021, certain dividends paid by the Fund may be subject to a maximum tax rate of 23.8%, as provided for the Jobs and Growth Tax Relief Reconciliation Act of 2003.

The percent of dividends declared from ordinary income designated as qualified dividend income was 100.00%.

For the corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deducted for the fiscal year ended October 31, 2021 was 0.00%.

The percentage of taxable ordinary income distributions that are designated as short-term capital gain distributions under Internal Revenue Section 871(k)(2)(c) was 0.00%.

Information About Portfolio Holdings
(Unaudited)

The Fund files its complete schedules of portfolio holdings for its first and third fiscal quarters with the SEC on Part F of Form N-PORT. The Fund’s Part F of Form N-PORT is available without charge, upon request, by calling toll-free at (800) 617-0004. Furthermore, you may obtain the Part F of Form N-PORT on the SEC’s website at www.sec.gov or the Fund’s website at www.bne-etf.com . The Fund’s portfolio holdings are posted on its website at www.bne-etf.com daily.

Information About Proxy Voting
(Unaudited)

A description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is provided in the Statement of Additional Information (“SAI”). The SAI is available without charge, upon request, by calling toll-free at (800) 617-0004, by accessing the SEC’s website at www.sec.gov , or by accessing the Fund’s website at www.bne-etf.com .

When available, information regarding how the Fund voted proxies relating to portfolio securities during the twelve-months ending June 30 is available by calling toll-free at (800) 617-0004 or by accessing the SEC’s website at www.sec.gov.

27

Blue Horizon BNE ETF

Frequency Distribution of Premiums and Discounts
(Unaudited)

Information regarding how often shares of the Fund trade on the exchange at a price above (i.e., at a premium) or below (i.e., at a discount) the NAV of the Fund is available, without charge, on the Fund’s website at www.bne-etf.com .

Information About the Trustees
(Unaudited)

The SAI includes additional information about the Fund’s Trustees and is available without charge, upon request, by calling (800) 617-0004, by accessing the SEC’s website at www.sec.gov , or by accessing the Fund’s website at www.bne-etf.com .

28

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Adviser

Exchange Traded Concepts, LLC

10900 Hefner Point Drive, Suite 400

Oklahoma City, Oklahoma 73120

Index Provider

Blue Horizon Capital LLC

676 E. Swedesford Road, Suite 130

Wayne, Pennsylvania 19087

Distributor

Quasar Distributors, LLC

111 East Kilbourn Avenue, Suite 2200

Milwaukee, Wisconsin 53202

Custodian

U.S. Bank National Association

1555 North Rivercenter Drive, Suite 302

Milwaukee, Wisconsin 53212

Transfer Agent

U.S. Bancorp Fund Services, LLC

615 East Michigan Street

Milwaukee, Wisconsin 53202

Independent Registered Public Accounting Firm

Cohen & Company, Ltd.

342 North Water Street, Suite 830

Milwaukee, Wisconsin 53202

Legal Counsel

Morgan, Lewis & Bockius LLP

1111 Pennsylvania Avenue, NW

Washington, DC 20004

Blue Horizon BNE ETF

Symbol – BNE

CUSIP – 26922B303