ANNUAL
report 2022

Motley Fool Asset Management ETFs
Series of The RBB Fund, Inc.

 

8/31/22

 

Motley Fool Global Opportunities ETF

(Formerly MFAM Global Opportunities Fund)

Motley Fool Mid-Cap Growth ETF

(Formerly MFAM Mid-Cap Growth Fund)

Motley Fool 100 Index ETF

Motley Fool Small-Cap Growth ETF

(Formerly MFAM Small-Cap Growth ETF)

Motley Fool Capital Efficiency 100 Index ETF

Motley Fool Next Index ETF

 

 

 

 

Motley Fool Global Opportunities ETF (TMFG)

Motley Fool Mid-Cap Growth ETF (TMFM)

Motley Fool 100 Index ETF (TMFC)

Motley Fool Small-Cap Growth ETF (TMFS)

Motley Fool Capital Efficiency 100 Index ETF (TMFE)

Motley Fool Next Index ETF (TMFX)

 

 

Table of Contents

 

   

President’s Letter to Shareholders

1

Letter to Shareholders

3

Portfolio Characteristics

11

Fund Expense Examples

24

Schedules of Investments

26

Financial Statements

57

Notes to Financial Statements

75

Report of Independent Registered Public Accounting Firm

91

Shareholder Tax Information

93

Notice to Shareholders

94

Privacy Notice

97

Directors and Officers

100

 

 

 

 

Motley Fool Asset Management ETFS

President’s Letter to Shareholders

AUGUST 31, 2022 (Unaudited)

 

Kelsey Mowrey
President,
Motley Fool Asset Management

 

Dear Fellow Shareholders,

 

First, I want to extend a heartfelt thank you for being members of our Foolish Family. We realize you have many investment options and appreciate the trust you place in us. We consider ourselves very fortunate to be on this journey with you.

 

And what a journey the last 12 months have been! Have you ever had the opportunity to ride Mr. Toad’s Wild Ride in Disneyland or Walt Disney World? When I sat down to write this letter and reflect on the past year, that beloved theme park ride kept coming to mind.

 

Maybe you can recall the magical, whimsical, sometimes perilous, and often buggy ride through Toad Hall and the English countryside. Mr. Toad’s Wild Ride was an original attraction when both Disneyland and Walt Disney World opened. While the Disney World iteration closed in 1998, the ride at Disneyland has had several reimaginations over the years, and still operates today.

 

As the Disney Universe keeps expanding, Mr. Toad’s Wild Ride provides a happy sense of nostalgia for many visitors, a reminder of the original magic that made Disney so special. This year, we also got a bit nostalgic and made the decision to bring Foolishness back to our brand in a big way. We moved away from our acronym, MFAM, and reintroduced our proper name, Motley Fool Asset Management. In addition, we are once again proudly wearing and displaying our jester cap in our company logo.

 

But Mr. Toad has evolved since 1955 as well (the original ride had plywood cutout characters!) Technical updates in 1961 and 1983 have transformed Mr. Toad’s Wild Ride into the beloved attraction we know today. At Motley Fool Asset Management, we had a transformation of our own last year. We converted two mutual funds to ETFs (a somewhat bumpy transition, to be honest!) and launched two new passive ETF products. With these ETF products we were able to improve efficiency, lower fees, increase transparency, and gain more access to our sister company, The Motley Fool, LLC’s stock recommendations.

 

That brings me to perhaps the most obvious parallel between Mr. Toad and the stock market: The Wild Ride. The past year, particularly the last 8 months, has been a challenging time to be an investor to say the least. Domestic stock market indexes logged numerous record highs during the latter half of 2021, only to come tumbling down in 2022. The S&P 500 Index closed at an all-time high on January 3, 2022, and then dropped 19.96% by June 30, 2022. As of August 31, 2022, it is down 16.14% year to date. Similar scenarios played out in the Dow Jones Industrial Average as well as the Nasdaq Composite and the domestic bond markets have not been the usual safe havens we have come to expect. A wild ride, indeed!

 

Throughout their trip with Mr. Toad, travelers encounter several obstacles or dangers. Whether you are trying to avoid a stack of falling books, plunging into a stream, or a collision with a delivery truck, there’s a lot that threatens to knock you off course. These last twelve months have had their share of obstacles too. Historically high inflation, continued supply chain issues and slowing domestic growth are just a few of the issues impeding our investment path.

 

Even though our time with Mr. Toad consists of many twists, turns, and startling moments, most park goers wouldn’t consider jumping out of the buggy mid-ride. That’s because they know if they wait long enough, the trek will end with a satisfying resolution. Investing shouldn’t be much different. With patience and a long time horizon, we believe short term market fluctuations most likely will not prevent us from reaching our long-term goals.

 

With that in mind, I’d like to thank you for staying on this ride with us. As investors, we know it is always important to stay the course; however, when the ride gets wild it can be difficult to maintain that mindset. Please know that we will continue to navigate this track along with you and be good stewards for your investments. We are grateful for your business and look forward to more adventures with you in the coming year, whatever the road ahead may bring.

 

Kindly,

 

 

Kelsey Mowrey

 

President

 

 

 

1

 

 

Motley Fool Asset Management ETFS

President’s Letter to Shareholders (Concluded)

AUGUST 31, 2022 (Unaudited)

 

Motley Fool Asset Management’s ETFs are distributed by Quasar Distributors, LLC.

 

The investment advisor for each fund is Motley Fool Asset Management, LLC (“MFAM”). MFAM is a wholly owned subsidiary of Motley Fool Investment Management, LLC, whose parent company, The Motley Fool Holdings, Inc., is a multimedia financial-services holding company. MFAM, an affiliate of The Motley Fool LLC (“TMF”), is a separate legal entity. No TMF analyst is involved in the investment decision-making or daily operations of MFAM. With respect to its actively-managed funds, MFAM does not attempt to track any TMF services and, as such, those funds may diverge completely from TMF’s services.

 

The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it.

 

All investing involves risk. Principal loss is possible. Each of Motley Fool Asset Management ETFs invests in particular market capitalizations or qualifications distinct to that individual fund, including small cap stocks and mid cap stocks, thus each fund’s performance will be especially sensitive to market conditions that particularly affect that fund’s particular market. Some funds are non-diversified, which means its NAV, market price and total returns may fluctuate or fall more than a diversified fund. Gains or losses on a single stock may have a greater impact on any of Motley Fool Asset Management’s ETFs. For these and other reasons, there is no guarantee any of Motley Fool Asset Management ETFs will achieve its particular, stated objective.

 

Please consider the charges, risks, expenses, and investment objectives carefully before you invest. Please see the prospectuses for the Motley Fool Global Opportunities ETF, the Motley Fool Mid-Cap Growth ETF, the Motley Fool 100 Index ETF, the Motley Fool Small-Cap Growth ETF, the Motley Fool Next Index ETF and the Motley Fool Capital Efficiency 100 Index ETF containing this and other information. Read it carefully before you invest or send money.

 

2

 

 

 

Motley Fool Asset Management ETFS

Letter to Shareholders

AUGUST 31, 2022 (Unaudited)

 

 

Bryan Hinmon
Chief Investment Officer,
Motley Fool Asset Management

 

“It is imperative that we remain vigilant in questioning how we do things that lead to decisions about investing your capital. We are on a quest to do this better, every day.”

 

    — Me, back in 2016

 

Dear Fellow Shareholder,

 

You’re probably thinking: I can’t believe the ego of this guy, quoting himself to open this letter! Let me reassure you that my ego is kept well in check by my two year old. Most recently, he has admired the “stripes” across my forehead and around my eyes, mocked my “silly” attempt to build his train tracks, and laughed uncontrollably as my mini breakfast burritos “look like trash cans.” Writing this reminds me those barbs still sting and my ego has no chance of inflating.

 

In preparing to write this letter I went back and read what I’ve written in the past. I’ve touched on several important topics over the years: the folly of economic and market forecasting, bias and decision making, and simplicity and focus, to name a few. But the idea that tends to come up again and again, as highlighted in the opening quote, is the need to be open to change on a never-ending quest for better.

 

I think the reason this is the most popular idea to explore is because of the nature of investing. Investing resembles a wicked problem.1 That is, the problem isn’t fully understood, the context and constraints are always changing, and there is no obvious single answer that a rote process can solve for.

 

Given the messy nature of the endeavor, blindly applying thinking and methods that have worked in the past can be dangerous. Reflection, which addresses an honest capacity to accept underperformance and intelligently adapt, is critical for making sure we remain on the path to long term success. I believe that is the path we are on. We reflect on and consider improving our methods every year, but the state of affairs here in late 2022 make the exercise seem more poignant.

 

CAPACITY TO SUFFER

 

It is well known that investors feel losses more powerfully than gains. The urge to sell or to shift investing styles or methods, when things aren’t going well, is rooted in pain relief. Even if an investor is wired to handle some pain, as their stocks head relentlessly lower, the emotional hits keep coming. Research shows that, under such stress, investor focus narrows to the immediate future and, according to Michael Mauboussin, “turn[s] off any thought about the long term. So even if an investor believes a stock or industry group is likely to fare well over a three to six year period, anxiety about the next three to six months prevails – and a great opportunity slips away.”2

 

This narrowing of time frame has, in our view, come to life today via the broad selling of companies with the promise of strong cash flow generation in the future, but little current profitability. In investing shorthand, there has been a strong preference for value stocks over growth stocks. Value stocks, with their perceived tendency for tangible, bird-in-the-hand cash generation, have outperformed growth stocks by more than 35 percentage points over the past two years.3

 

This performance gap is breathtaking. Within the context of persistent inflation, rising global recession risk, changing monetary policy, and ongoing war during that two year period, a recalibration of the value of future cash flows seems warranted in our opinion. But the breadth and violence of the growth exodus suggests to us a degree of “stress” selling4 and raises the chance of some perfectly viable, high-value-creating (but not-yet-cash-flowing) businesses being tossed aside with the pretenders.

 

1

The idea of Wicked Problems was developed by Horst Rittel and Melvin Webber in the early 1970s. Their definition was focused on social policy issues, but over the subsequent 50 years, the idea of wicked problems has been more loosely defined and broadly applied. The fact that investing is wicked is one of the aspects that make it so challenging, but also so fun.

2

Mauboussin, Michael. Anatomy of a Market Crash. Forbes, October 25, 2007.

3

Value stocks, here, are represented by the Russell 1000 Value Index. Growth stocks, here, are represented by the Russell 1000 Growth Index. Return data from Standard & Poor’s Capital IQ for the period 9/1/2020 to 8/31/2022.

4

We would recommend exploring the concept of “hyperbolic discounting” if you’re curious.

 

 

3

 

 

Motley Fool Asset Management ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2022 (Unaudited)

 

We can’t in good faith, and simply won’t, state that many high-flyers are pretenders while ours are clear-cut, long-term winners that the market is mistreating. We have inked plenty of mistakes in the past and time will show us to have made additional ones. Said differently, it is unclear whether the market is treating our chosen growthy businesses rationally or whether it is panicking to some degree. But what we can say with confidence is that we understand our own beliefs and expectations behind each investment (thanks to our research process) and accept such pricing swings in exchange for the reward potential we believe persists.

 

We are, and remain, patient owners of businesses. While we don’t like poor performance, we appreciate that it is what sometimes creates mispricings and may open the door to long-term rewards.

 

ADAPTATION

 

You probably didn’t ignore the statement above about our past and inevitable future mistakes. We understand that no flavor of investing works 100% of the time, and that no active manager can operate in a mistake free utopia. The recent past has been trying, and we are frustrated with our performance. It is critical we dispassionately assess the situation and learn the right lessons.

 

Most importantly, we wholeheartedly believe that our core investing principle and core investing belief remain on firm foundations. Let’s lay these out plainly. The core principle that underpins our investing program is that, in the long run, we believe portfolio returns will converge on the business returns our companies achieve, as determined by realized earnings power (cash flows). The core belief that emerges from that principle, in our practice, is that independent research (centered on our unique definition of Quality) with a long-term mindset, expressed through focused portfolios, can potentially outperform and is how our team is best wired to achieve outperformance.

 

We’ve stress tested these ideas and have happily and completely re-underwritten them.

 

With our philosophy checked, we can move to execution. The largest class of mistake we made over the fiscal year, in my view, was in execution. Specifically, it was the improper weighting of base rates and the attendant link to position sizing. Let’s take a moment to make that not sound like gobbledygook.

 

We study businesses deeply, in an attempt to assess each company’s management, culture, and incentives; its economics, competitive advantages, and trajectory. Understanding a business in this fashion helps inform a view of the value it might be able to create for the world and how much of that value it might capture for itself, in a future that will undoubtedly be filled with competitors, changing preferences, and other uncertainties. It’s a complicated exercise where experience, imagination, humility, and skepticism are all needed. In the end, we’ve crafted a researched story behind each investment, called an inside view.

 

A problem arises when, as our knowledge of a business grows, our confidence in a single (but highly uncertain!) future grows even more quickly. Because of a highly informed inside view of each specific investment, our calibration of the reference class (the base rate statistical average, or the outside view of what has actually shown to most likely happen in similar situations) may be crowded out.5

 

Investing decisions are best made with a balanced account of the inside and outside views. However, the nature of our endeavor, to strive to find truly special Quality companies that can and do defy base rates, means that we must invest counter to what action the outside view suggests, and do it regularly. We knowingly override it.

 

The error is not in investing counter to what the outside view might recommend, but in not adequately using a tool we have available to marry the two views: position sizing. Knowing the outside view, of both the reference class of the stock and the business, should help us better assess the odds our inside view is correct, which should help establish guardrails for the amount of capital we put at risk in a given stock or class of risk exposures.

 

This is an exercise we can, will, and must do better. The outside view is something that has already entered our conversations more and more – like a voice over our shoulder. Practical implementations we are exploring further are making the outside view explicit in a premortem6 or establishing the role of a decision observer.7 Refinement of our process is ongoing and we’re energized when we uncover helpful possible solutions.

 

5

For a deeper dive into the Inside/Outside view problem, we highly recommend Thinking Fast and Slow by Daniel Khaneman and Think Twice by Michael Mauboussin.

6

Professor Gary Klein has been the leading thinker on premortems. We are grateful for his continued work on the subject.

7

The role of a “decision observer” was introduced to us in the book Noise, by Daniel Kahneman, Olivier Sibony, and Cass Sunstein. On page 240 they write, “We suggest that observers can be trained to spot, in real time, the diagnostic signs that one or several familiar biases are affecting someone else’s decisions or recommendations.”

 

4

 

 

 

Motley Fool Asset Management ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2022 (Unaudited)

 

MARKET PERFORMANCE AND COMMENTARY

 

Coming into calendar year 2022, the U.S. economy was strong and inflation was accelerating. Some level of inflation was expected as the result of shifting consumption patterns influenced by the flow-through of pandemic imbalances. The prevailing debate was whether this would fix itself (this was the U.S. Federal Reserve’s (the “Fed”) thinking) or be persistent. The purity of that debate was muddied as early 2022 brought about the Russian invasion of Ukraine and China’s continued aggressive lockdown policy to manage the spread of COVID – both events mucking up global supply chains and exacerbating the supply-demand imbalance that has been feeding inflation.

 

Over the full year fiscal period of September 1, 2021 to August 31, 2022, monthly U.S. inflation rates were between 5.4% and 9.1%. This, unsurprisingly, contributed to the Fed’s Open Market Committee decision to raise rates by 25 basis points, 50 basis points, 75 basis points, and another 75 basis points between March and July of this year. (Although outside the fiscal year ended August 31, 2022, we know the Fed raised another 75 basis points in September.) They were busy, and the aggressive pace of rate increases marked a clear new stance in monetary policy. This shift, alongside weakening European economic outlooks, had a negative impact on markets broadly as investors dealt with greater uncertainty, grappled with the likelihood of a global recession, and repriced risk.

 

The broad brush outcome was that, for the full year period of September 1, 2021 to August 31, 2022, there was almost no safe place to hide.

 

Cash lost value given the strongly rising inflation. Bonds had a historically poor period, falling more than 10% as interest rates moved higher. Gold, often seen as a safe-haven and beneficiary of inflation, lost more than 5%. Bellwether large capitalization stocks fell 12% with eight of 11 sectors declining. Small- and mid-capitalization stocks fell similarly to large caps. Simple style preferences offered no reprieve, with growth stocks continuing their recent trend of underperformance relative to value stocks (-17% vs -5%). Outside the U.S., global stocks fell 20%.8

 

ACTIVE ETF PERFORMANCE AND COMMENTARY

 

Motley Fool Global Opportunities ETF

 

With that sour backdrop, the Motley Fool Global Opportunities ETF returned -27.61% during the fiscal year ended August 31, 2022, trailing its benchmark’s return of -15.98% for the same period. Cumulatively since inception, the Motley Fool Global Opportunities ETF has returned 91.55% versus 70.94% returns for the benchmark over the same period.9

 

During the period, the ETF’s investments’ tilt towards growth companies, a lack of exposure to the Energy sector, and security selection within the Information Technology sector drove its underperformance. These headwinds were offset by strong security selection within the Industrials and Consumer Staples sectors. Our aim, as you know, is to construct focused portfolios of truly special Quality businesses (we have a “no strangers in the portfolio” mantra), so whether our performance is relatively good or bad, we can usually attribute the bulk of any relative performance versus the benchmark to stock selection. That was again the case this year.

 

8

Bonds are represented by the S&P U.S. Aggregate Bond Index. The index is designed to measure the performance of publicly issued U.S. dollar denominated investment-grade debt. Gold is represented by the COMEX price per troy ounce of gold. Large capitalization stocks are represented by the S&P 500 TR Index. The index measures the total return performance of 500 leading companies comprising nearly 80% of available U.S. market capitalization. Small capitalization stocks are represented by the S&P SmallCap 600 TR Index. The index measures the total return performance of 600 small-sized U.S. companies that meet certain liquidity and financial thresholds. Mid-capitalization stocks are represented by the S&P MidCap 400 TR Index. The index measures the total return performance of 400 mid-sized U.S. companies comprising about 5% of available U.S. market capitalization. Growth stocks are represented by the S&P 500 Growth TR Index. The index measures the performance of a subset of S&P 500 stocks based on three factors: sales growth, the ratio of earnings change to price, and momentum. Value stocks are represented by the S&P 500 Value TR Index. The index measures the performance of a subset of S&P 500 stocks based on three factors: the ratios of book value, earnings, and sales to price. Global stocks are represented by the S&P Global X-US BMI TR Index. The index measures stock market performance globally, including developed and emerging markets, but excluding the U.S.

9

Returns are for Net Asset Value, net of fees and expenses. Inception of the ETF was 6/17/2014, which represents the inception of the Advisor share class of the pre-conversion mutual fund. The benchmark of the Motley Fool Global Opportunities ETF is the FTSE Global All Cap Net Tax Index.

 

 

5

 

 

Motley Fool Asset Management ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2022 (Unaudited)

 

The top three contributors to returns10 were Gentera (+45%), Waste Connections (+8%), and Costco (+15%). Gentera has historically been a unique, group lender in several Latin American countries. Management has deftly handled pandemic and general macroeconomic challenges, achieving admiral loan and customer growth in Mexico and Peru while keeping costs in check. Shares soared as the company won back investor confidence, though we chose to sell our position towards the end of the period as the company’s business model is changing via its entry into a more crowded lending arena. Waste Connections is a North American trash hauler with irreplaceable landfill assets and an admirable service record. Trash collection is a safe-haven type of business that often does well in uncertain times – demand for its services doesn’t change much regardless of world events and proven pricing power above the rate of inflation are key business model features that investors are looking for. Costco, the membership retail behemoth, continues to use its scale to bring more products and services to its loyal customer base. The value proposition, in terms of savings and purchase confidence, has never been stronger, in our view, and the model continues to translate outside the core U.S. market.

 

The bottom three contributors to returns were Paypal Holdings(-68%), MercadoLibre (-54%), and Everbridge (-75%). Paypal remains an entrenched player in online payments, but it has seen its primary end market (ecommerce) slow as pandemic demand pull-forward is digested. A lack of internal innovation has also contributed to slowing new user growth, and several high profile leaders have left the company. Payments remains a hyper-competitive and dynamic industry, but Paypal’s scale and newfound sense of urgency equip it well to thrive once again. MercadoLibre, the everything business in Latin America, continues to strengthen its network effects across commerce and payments. The only significant business blip we have seen is a spike in non-payments of installment loans at peer companies (many e-commerce transactions are paid by installment in Latin America). The more likely drivers of the stock’s decline, in our view, are the simple market-wide declines in highly-valued tech companies that were clear pandemic beneficiaries. Everbridge’s decline has been swift. In early December, during a widespread sell-off of many software businesses, the company announced the unexpected resignation of its CEO and preliminary 2022 guidance that was lower than expected. This was a powerfully poisonous cocktail and shares fell by nearly half in a single day. As the dust has settled, it appears that the former CEO was too aggressive pursuing growth via acquisitions and product launches, at the expense of product integration and a clear product map. Under new leadership, and with greater focus, we believe these issues are fixable.

 

Motley Fool Mid-Cap Growth ETF

 

The Motley Fool Mid-Cap Growth ETF returned -26.66% during the fiscal year ended August 31, 2022, edging its benchmark’s return of -26.69% for the same period. Cumulatively since inception (8 years and counting!), the Motley Fool Mid-Cap Growth ETF has returned 79.75% versus 111.00% returns for its benchmark over the same period.11

 

The ETF’s performance, relative to its benchmark, was impacted by a lack of exposure to the energy sector, which was strong and where we had no investment. Performance was also driven by our investments in the Consumer Discretionary and Financials sectors, where our stock selection was strong, and offset by stock selection in the Information Technology and Healthcare sectors.

 

The top three contributors to returns were Brown & Brown (+9%), Healthequity (+3%), and Broadridge Financial Solutions (+1%). Brown & Brown is an insurance broker that has been churning out great results – quarterly results have been consistently outstanding. Insurance, itself, is a cyclical market and Brown is benefiting from strong pricing that won’t last forever. However, its ability to grow policy count, make smart acquisitions, and manage costs have helped its business perform well through up and down cycles. HealthEquity, the largest administrator of Health Savings Accounts, is a beneficiary of the rising interest rate and inflation environment. Account holders opt to invest their savings in funds or cash, and as rates rise, the interest earned on that cash rises too. As an administrator, HealthEquity earns more on better rates and higher balances. Inflation is also likely to drive healthcare costs higher, in general, and should continue to highlight the value of Health Savings Accounts and benefit HealthEquity with greater adoption and contributions. Broadridge had a business-as-usual year. Its business model benefits from facilitating investor communications required by law which provides steady demand it has been able to turn into stable cash flow. This stability and proven profit engine are highly prized by investors given all the uncertainties elsewhere, and shares of the company’s stock have held up recently.

 

10

Contribution to return is a combination of average weighting in the portfolio and total return during the period.

11

Returns are for Net Asset Value, net of fees and expenses. Inception of the ETF was 6/17/2014, which represents the inception of the Advisor share class of the pre-conversion mutual fund. The benchmark of the Motley Fool Mid-Cap Growth ETF is the Russell Midcap Growth Total Return Index.

 

6

 

 

 

Motley Fool Asset Management ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2022 (Unaudited)

 

The bottom three contributors to returns were Axon Enterprise (-36%), Teladoc Health (-77%), and Everbridge (-75%). Axon Enterprise, the business, continues to hum along. Its safety, transparency, and efficiency-focused products are resonating with law enforcement far and wide. However, the company’s CFO unexpectedly took another job and several members of its ethics board resigned in the wake of the company pushing forward its Taser-equipped drone initiative. The CFO departure is a clear loss for the company, but one which we believe will be overcome. The ethics board drama bears watching. Axon is a mission-driven company and its Founder/CEO’s ambition is great – but we have admired the checks and balances of impartial counsel and dislike the apparent lack of teeth it has been given. Telemedicine provider Teladoc continues to struggle to achieve profitability even as the pandemic created a strong adoption and utilization tailwind for its business. In addition, in the second calendar quarter of 2022, management wrote down over $6 billion of goodwill from its 2020 merger with Livongo Health. In hindsight, the merger was an obviously atrocious capital allocation decision, and combined with continued uneven execution, we have lost faith in management and sold our position. We detailed Everbridge’s poor performance above, in the Motley Fool Global Opportunities ETF section.

 

Motley Fool Small-Cap Growth ETF

 

The Motley Fool Small-Cap Growth ETF returned -36.66% during the fiscal year ended August 31, 2022, exceeding its benchmark’s decline of -25.26% for the same period. Cumulatively since inception, the Motley Fool Small-Cap Growth ETF has returned 38.08% versus 27.87% returns for the benchmark over the same period.12

 

The ETF’s performance, relative to its benchmark, was impacted negatively by an underweight of exposure to the Energy sector. However, the primary driver of underperformance was stock selection in the Industrials, Financials, and Information Technology sectors. The market environment was highly punitive to companies delaying profits to pursue growth and market development. Our holdings were not spared, with roughly one-third of the portfolio’s holdings declining in price by 50% or more.

 

The top three contributors to returns13 were Ping Identity Holding (+8%), Northern Oil and Gas (+15%), and PTC Therapeutics (+14%). Enterprise security software veteran Ping Identity had been working hard to transform its business to be a long-term winner in the critical enterprise security world. Private Equity firm Thoma Bravo apparently believed this too, and announced it would take Ping private at an enterprise value of $2.8 billion. The transaction had not yet closed at period end and Ping shares have continued to bop around the buyout price. We purchased shares of Northern Oil and Gas in May. Historically, we haven’t found many businesses in the Energy sector that meet our Quality threshold, but Northern’s unique business model and strong leadership fit the bill. The company buys up land leases and then lets other exploration and production companies drill on their land. As the land owner, Northern can choose to participate in the production cash flows or not. We believe the company’s controlling family has valuable insights and experience to make that decision wisely, more often than not. As energy prices increase, the value of Northern’s land rights and production options has increased. PTC Therapeutics is a biotechnology company that focuses on orphan diseases. More often than not, the performance of companies like PTC depends on whether there have been beneficial or adverse developments in the perceived medical and commercial progress of its drug pipeline. PTC had positive news on both fronts as its diversified portfolio of drugs and candidates continues to demonstrate value and efficacy.

 

The bottom three contributors to returns were Everbridge (-75%), Cardlytics (-85%), and Heska (-66%). We detailed Everbridge’s poor performance above, in the Motley Fool Global Opportunities ETF section. Cardlytics provides app-native digital advertising solutions to financial institutions. The business experienced a tumultuous year, punctuated by executive turnover, slow-moving customers, and a potentially competitive acquisition by a key customer. The stock’s decline reflects this, as well as the aggressive sell-off of profit promise stocks we outlined earlier. In our view, the new CEO brings the right experience for Cardlytics’ future, development of its self-serve ad platform has gone well, and the likelihood of customer defection remains low. In short, we think the market is getting this one wrong. Heska provides diagnostic tools and tests to veterinarians. Investors had bid up shares reflecting what we believe to be the company’s strong execution strengthening its domestic business and vision in becoming a market leader in several non-U.S. markets. Investors fear that a pandemic-related pet adoption boom may harm upcoming growth rates, which we view as a likely short-term blip in a longer-term attractive opportunity.

 

12

Returns are for Net Asset Value, net of fees and expenses. Inception of the ETF was 10/29/2018, which represents the inception of the Advisor share class of the pre-conversion mutual fund. The benchmark is the Russell 2000 Growth Total Return Index.

13

Contribution to return is a combination of average weighting in the portfolio and total return during the period.

 

 

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Motley Fool Asset Management ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2022 (Unaudited)

 

PASSIVE ETF PERFORMANCE AND COMMENTARY

 

Motley Fool 100 Index ETF

 

The Motley Fool 100 Index ETF declined -19.18% during the fiscal year ended August 31, 2022. During the same period, the Motley Fool 100 Index, which the Motley Fool 100 Index ETF is designed to track, declined -18.79% and the S&P 500 Total Return Index declined -11.23%. Cumulatively since inception, the Motley Fool 100 Index ETF returned 73.03%. Over that period, the Motley Fool 100 Index returned 77.03% and the S&P 500 Index returned 50.38%.14

 

The ETF’s net asset value return differed from that of its underlying index, the Motley Fool 100 Index, due primarily to the deduction of management fees and transaction costs. A small cash balance across the period and securities lending income helped reduce tracking error.

 

As a passive implementation of active stock selection, the ETF’s performance in each period is reflective of the construction of its underlying index, the Motley Fool 100 Index, which is a market capitalization weighted portfolio of the 100 largest, liquid, high-conviction stock selections from The Motley Fool, LLC.15 The Motley Fool 100 Index has historically had, and continues through this measurement period to have, a top-heavy construction and concentration in a subset of sectors. As a result, the largest holdings and sector exposures have a significant impact on overall performance.

 

The top three contributors16 to the Motley Fool 100 Index ETF’s performance were UnitedHealth Group (+26%), Apple (+5%) and Costco (+15%). These three companies had a combined average portfolio weight during the period of more than 16%. The bottom three contributors were Meta Platforms (-57%), Alphabet (-25%), and Amazon (-27%). These three companies had a combined average portfolio weight during the period of nearly 20%.

 

Over the period from September 1, 2021 to August 31, 2022, a drastic underweighting to the Energy sector and overweighting to the Communication Services sector drove underperformance versus the S&P 500 Index.

 

Motley Fool Next Index ETF

 

On December 30, 2021, we launched The Motley Fool Next Index ETF. Over the period from December 30, 2021 to August 31, 2022, the ETF declined -24.88%. During the same period, the Motley Fool Next Index, which the Motley Fool Next Index ETF is designed to track, declined -24.72% and the Russell Midcap Growth Total Return Index (the “benchmark”) declined -25.42%.17

 

The ETF’s net asset value return differed from that of its underlying index, the Motley Fool Next Index, due primarily to the deduction of management fees and transaction costs. A small cash balance across the period helped reduce tracking error.

 

As a passive implementation of active stock selection, the ETF’s performance in each period is reflective of the construction of its underlying index, the Motley Fool Next Index, which is a market capitalization weighted index of the mid- and small-capitalization U.S. companies that have been recommended by The Motley Fool, LLC’s analysts, or research publications.18

 

The top three contributors to the Motley Fool Next Index ETF’s performance were McKesson (+31%), EPAM Systems (+44%) and Cloudflare (+43%). These three companies had a combined average portfolio weight during the period of a bit more than 3%. The bottom three contributors were The Trade Desk (-33%), Zebra Technologies (-50%), and Wayfair (-73%). These three companies had a combined average portfolio weight during the period of 3%.

 

14

Returns are for Net Asset Value, net of fees and expenses. The market price return for the Motley Fool 100 Index ETF for the year ended 8/31/2022 was -19.24%, and since inception, was 12.70%. Inception of the Motley Fool 100 Index ETF was 1/29/2018.

15

Motley Fool Asset Management LLC is a subsidiary of The Motley Fool. The Motley Fool is responsible for independently managing the Motley Fool 100 Index. To learn more about the index, see its website: https://www.fool100.com/

16

Contribution to return is a combination of average weighting in the portfolio and total return during the period.

17

Returns are for Net Asset Value, net of fees and expenses. The market price return for the Motley Fool Next Index ETF for the period from 12/30/2021 to 8/31/2022 was -24.97%.

18

Motley Fool Asset Management LLC is a subsidiary of The Motley Fool. The Motley Fool is responsible for independently managing the Motley Fool 100 Index. To learn more about the index, see its website: https://www.fool100.com/

 

8

 

 

 

Motley Fool Asset Management ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2022 (Unaudited)

 

The Motley Fool Next Index was significantly underweight in the Energy sector and overweight in the Communication Services sector, relative to the benchmark. During the year ended August 31, 2022, the ETF reflected these relative positions, and performance suffered accordingly. Stock selection was strongest in the Healthcare sector to which the Motley Fool Next Index and ETF maintained a modest underweight to the benchmark.

 

Motley Fool Capital Efficiency 100 Index ETF

 

On December 30, 2021, we launched The Motley Fool Capital Efficiency 100 Index ETF. Over the period from December 30, 2021 to August 31, 2022, the ETF declined -23.13%. During the same period, the Motley Fool Capital Efficiency 100 Index, which the Motley Fool Capital Efficiency 100 Index ETF is designed to track, declined -23.07% and the S&P 500 Total Return Index (the “benchmark”) declined -16.36%.19

 

The ETF’s net asset value return differed from that of its underlying index, the Motley Fool Capital Efficiency 100 Index, due primarily to the deduction of management fees and transaction costs. A small cash balance across the period helped reduce tracking error.

 

As a passive implementation of active stock selection, the ETF’s performance in each period is reflective of the construction of its underlying index, the Motley Fool Capital Efficiency 100 Index, which tracks the performance of the highest scoring stocks of U.S. companies, measured by a company’s capital efficiency, that have been recommended The Motley Fool’s analysts and newsletters.20 Capital efficiency is a measure of how a business turns its investments into revenue and profit, and it provides insight into the company’s return on invested capital.

 

The top three contributors21 to the Motley Fool Capital Efficiency Index ETF’s performance were UnitedHealth Group (+4%), Texas Instruments (+8%) and Vertex Pharmaceuticals (+27%). These three companies had a combined average portfolio weight during the period of nearly 7%. The bottom three contributors were Meta Platforms (-53%), NVIDIA (-49%), and Alphabet (-25%). These three companies had a combined average portfolio weight during the period of just over 14%.

 

The Motley Fool Capital Efficiency 100 Index was significantly underweight in the Energy sector and overweight in the Communication Services and Information Technology sectors, relative to the benchmark during the period ended August 31, 2022. In fact, the Index and ETF had no Energy sector exposure and nearly 55% to Communication Services and IT, compared to 4% and 37%, respectively, for the benchmark.

 

MORE IMPORTANT THAN EVER

 

We know that in challenging, stressful times the timeframe of the typical market participant shrinks. We posit that there is a degree of pessimism-extrapolation present in equity markets today. This puts us squarely in a place where maintaining a long-term orientation is increasingly valuable to achieve long-term returns.

 

Thankfully, our investing philosophy guides us to do just that. Our focus remains on patiently owning a collection of special, Quality businesses that will create winning outcomes for their stakeholders over time. We hope this orientation still rings true to you.

 

We remain thankful for and humbled by your trust.

 

Onward,

 

 

Bryan Hinmon
Chief Investment Officer, Motley Fool Asset Management LLC

 

19

Returns are for Net Asset Value, net of fees and expenses. The market price return for the Motley Fool Capital Efficiency 100 Index ETF for the period 12/30/2021 to 8/31/2022 was -23.09%.

20

Motley Fool Asset Management LLC is a subsidiary of The Motley Fool. The Motley Fool is responsible for independently managing the Motley Fool 100 Index. To learn more about the index, see its website: https://www.fool100.com/

21

Contribution to return is a combination of average weighting in the portfolio and total return during the period.

 

 

9

 

 

Motley Fool Asset Management ETFS

Letter to Shareholders (Concluded)

AUGUST 31, 2022 (Unaudited)

 

Past performance does not guarantee future results. There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including potential loss of principal. Securities in a Fund may not match those in an index and performance of the Fund will be different. You cannot invest directly into an index.

 

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. The securities held by the Funds that are discussed in the Letter to Shareholders were held during the period covered by the annual report. They do not comprise the entire investment portfolio of the Funds, may be sold at any time, and may no longer be held by the Funds. The opinions of the Adviser with respect to those securities may change at any time.

 

10

 

 

 

Motley Fool GLOBAL OPPORTUNITIES ETF

Portfolio Characteristics

(Unaudited)

 

Average Annual Total Returns for the periods ended AUGUST 31, 2022

 

One
Year

FIVE
YEAR

Since
Inception

Inception
Date

Motley Fool Global Opportunities ETF*

-27.61%

8.87%

8.24%

6/17/2014

FTSE Global All Cap Net Tax Index**

-15.98%

7.06%

6.75%(1)

Fund Expense Ratio:(2) 0.85%

 

 

Effective December 3, 2021, the outstanding Investor Class Shares of the Fund were converted into Institutional Class Shares of the Fund.

 

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month-end may be obtained at www.fooletfs.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.

 

(1)

Benchmark performance is from inception date of the Fund only and is not the inception date of the benchmark itself.

 

(2)

The expense ratios of the Fund are set forth according to the Prospectus for the Fund and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios.

 

*

The Motley Fool Global Opportunities ETF operated as a series of The Motley Fool Funds Trust (the “Predecessor Fund”) prior to December 21, 2016 at which time the Predecessor Fund was reorganized into the Fund. The performance shown for periods prior to December 21, 2016 represents the performance of the Predecessor Fund. These returns reflect expense waivers by the Fund’s investment adviser. Without these waivers, returns would have been lower.

 

**

The FTSE Global All Cap Net Tax Index is a market-capitalization weighted index representing the performance of large, mid and small cap companies in Developed and Emerging markets. The index is comprised of approximately 9,500 securities from 49 countries and captures 98% of the world’s investable market capitalization. Fair value prices and foreign exchange as of 4 pm ET are used in the calculation of this index, and returns are adjusted for withholding taxes applicable to dividends received by a U.S. Regulated Investment Company domiciled in the United States. The index is unmanaged and not available for direct investments. Its performance does not reflect deductions for fees, expenses or taxes.

 

 

11

 

 

Motley Fool GLOBAL OPPORTUNITIES ETF

Portfolio Characteristics (CONTINUED)

(Unaudited)

 

The investment objective of the Motley Fool Global Opportunities ETF is to achieve long-term capital appreciation, and it pursues this objective by investing primarily in common stocks of companies located anywhere in the world. The Fund seeks long-term growth by identifying and acquiring securities of companies that are, in the view of Motley Fool Asset Management, LLC (the “Adviser”), high quality. To identify these high-quality businesses, the Adviser engages in research to evaluate each company under consideration using four criteria: management, culture, and incentives; the economics of the business; competitive advantage; and trajectory. The Adviser’s approach prizes a long-term mindset and a balance of qualitative and quantitative factors.

 

The Fund will invest in areas of the market, that, in the view of the Adviser, offer the greatest potential for long-term capital appreciation, and it does not attempt to match the allocations of its benchmark. As such, significant deviation from the benchmark is expected from time to time, especially over shorter time frames.

 

The allocations to various sectors, countries, or any other macro-economic designation, are the byproduct of rigorous bottom-up analysis rather than an intentional top-down opinion of asset classes. While market conditions are constantly changing, exposure to equity market risk is needed to consistently achieve equity-like returns.

 

The following tables show the top ten holdings, sector allocations, and top ten countries in which the Fund was invested in as of August 31, 2022. Portfolio holdings are subject to change without notice.

 

Top Ten Holdings

% OF NET
Assets

Amazon.com, Inc.

5.9%

Mastercard, Inc., Class A

5.7

Watsco, Inc.

5.0

Atlassian Corp., PLC, Class A

4.7

Waste Connections, Inc.

4.4

Alphabet, Inc., Class C

4.0

Cellnex Telecom SA

3.7

Axon Enterprise, Inc.

3.6

ICON PLC

3.4

International Container Terminal Services, Inc.

3.2

 

43.6%

 

12

 

 

 

Motley Fool GLOBAL OPPORTUNITIES ETF

Portfolio Characteristics (Concluded)

(Unaudited)

 

The Motley Fool Global Opportunities ETF uses the Global Industry Classification StandardSM (“GICS SM”) as the basis for the classification of securities on the Schedule of Investments (“SOI”).

 

Sector Allocation

% OF Net
Assets

Industrials

20.5%

Information Technology

19.7

Consumer Discretionary

14.2

Financials

12.7

Communication Services

12.1

Real Estate

8.6

Health Care

7.5

Consumer Staples

2.4

 

97.7%

 

Top ten Countries

% OF Net
Assets

United States*

54.0%

Canada

9.2

Ireland

6.0

Australia

4.7

Spain

3.7

Philippines

3.2

China

3.2

Taiwan

3.1

United Kingdom

2.8

India

2.6

 

92.5%

 

*

As of the date of this report, the Fund had a holding of 2.1% in the U.S. Bank Money Market Deposit Account.

 

 

13

 

 

Motley Fool MID-CAP GROWTH ETF

Portfolio Characteristics

(Unaudited)

 

Average Annual Total Returns for the periods ended AUGUST 31, 2022

 

One
Year

FIVE
YEAR

Since
Inception

Inception
Date

Motley Fool Mid-Cap Growth ETF*

-26.66%

7.69%

7.41%

6/17/2014

Russell MidCap® Growth Total Return Index**

-26.69%

10.16%

9.53%(1)

Fund Expense Ratio:(2) 0.85%

 

 

Effective December 3, 2021, the outstanding Investor Class Shares of the Fund were converted into Institutional Class Shares of the Fund.

 

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. Performance data current to the most recent month-end may be obtained at www.fooletfs.com. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.

 

(1)

Benchmark performance is from inception date of the Fund only and is not the inception date of the benchmark itself.

 

(2)

The expense ratios of the Fund are set forth according to the Prospectus for the Fund and may differ from the expense ratios disclosed in the Financial Highlights tables in this report. See the Financial Highlights for more current expense ratios.

 

*

The Motley Fool Mid-Cap Growth ETF operated as a series of The Motley Fool Funds Trust (the “Predecessor Fund”) prior to December 21, 2016 at which time the Predecessor Fund was reorganized into the Fund. The performance shown for periods prior to December 21, 2016 represents the performance of the Predecessor Fund. These returns reflect expense waivers by the Fund’s investment adviser. Without these waivers, returns would have been lower.

 

**

The Russell Midcap® Growth Total Return Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell Midcap® Growth Total Return Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap growth market. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap growth market.

 

The investment objective of the Motley Fool Mid-Cap Growth ETF is to achieve long-term capital appreciation, and it pursues this objective by investing primarily in common stocks of companies organized in the United States. The Fund seeks long-term growth by identifying and acquiring securities of companies that are, in the view of the Adviser, high quality. To identify these high-quality businesses, the Adviser engages in research to evaluate each company under consideration using four criteria: management, culture, and incentives; the economics of the business; competitive advantage; and trajectory. The Adviser’s approach prizes a long-term mindset and a balance of qualitative and quantitative factors.

 

14

 

 

 

Motley Fool MID-CAP GROWTH ETF

Portfolio Characteristics (Concluded)

(Unaudited)

 

The Fund will invest in areas of the market, that, in the view of the Adviser, offer the greatest potential for long-term capital appreciation, and it does not attempt to match the allocations of its benchmark. As such, significant deviation from the benchmark is expected from time to time, especially over shorter time frames.

 

The allocations to various sectors, or any other macro-economic designation, are the byproduct of rigorous bottom-up analysis rather than an intentional top-down opinion of asset classes. While market conditions are constantly changing, exposure to equity market risk is needed to consistently achieve equity-like returns. The Adviser views its time as best spent focused on evaluating businesses and seeking to minimize company-specific risk in order to pursue its objective of long-term capital appreciation.

 

Although the Motley Fool Mid-Cap Growth ETF may invest in companies with any market capitalization, the Adviser expects that investments in the securities of companies having smaller- and mid-market capitalizations will be important components of the Fund’s investment program. Investments in securities of these companies may involve greater risk than do investments in larger, more established companies. Small- and mid-cap stocks tend to be more volatile and less liquid than their large-cap counterparts.

 

The following tables show the top ten holdings, and sector allocations in which the Fund was invested in as of August 31, 2022.Portfolio holdings are subject to change without notice.

 

Top ten Holdings

% OF Net
Assets

Watsco, Inc.

7.5%

SBA Communications Corp.

6.2

Brown & Brown, Inc.

5.3

Paylocity Holding Corp.

5.0

ResMed, Inc.

4.7

Markel Corp.

4.5

Tyler Technologies, Inc.

4.5

Axon Enterprise, Inc.

4.5

Fastenal Co.

4.1

Broadridge Financial Solutions, Inc.

4.0

 

50.3%

 

The Motley Fool Mid-Cap Growth ETF uses the Global Industry Classification StandardSM (“GICS SM”) as the basis for the classification of securities on the Schedule of Investments (“SOI”).

 

Sector Allocation

% OF Net
Assets

Information Technology

28.0%

Industrials

20.2

Financials

13.5

Health Care

11.7

Consumer Discretionary

10.6

Real Estate

9.8

 

93.8%

 

 

15

 

 

Motley Fool 100 Index ETF

Portfolio Characteristics

(Unaudited)

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED AUGUST 31, 2022

 

One
Year

THREE
Years

Since
Inception

Inception
Date

Motley Fool 100 Index ETF

-19.18%

15.26%

12.70%

1/29/2018

Motley Fool 100 Index*

-18.79%

15.85%

13.26%(1)

S&P 500* Total Return Index**

-11.23%

12.39%

9.30%(1)

Fund Expense Ratio:(2) 0.50%

       

 

 

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. The investment return and principal value of an investment will fluctuate so that shares, when redeemed or sold, may be worth more or less than their original cost.

 

(1)

Benchmark performance is from inception date of the Fund only and is not the inception date of the benchmark itself.

 

(2)

The expense ratio of the Fund is set forth according to the Prospectus for the Fund and may differ from the expense ratio disclosed in the Financial Highlights table in this report. See the Financial Highlights for most current expense ratio.

 

*

The Motley Fool 100 Index (“Fool 100 Index”) was developed by The Motley Fool, LLC (“The Motley Fool”), an affiliate of Motley Fool Asset Management, LLC (“Adviser”), in 2017 and is a proprietary, rules-based index designed to track the performance of the 100 largest, most liquid U.S. companies that have been recommended by The Motley Fool’s analysts and newsletters or the highest-rated stocks in Fool IQ, the company’s analyst opinion database. Every company included in the Fool 100 Index is incorporated and listed in the U.S. The Fool 100 Index is calculated and administered by Solactive AG (the “Index Calculation Agent”), which is not affiliated with the Fund, the Adviser or The Motley Fool. Additional information regarding the Fool 100 Index, including its value, is available on the websites of the Fund at www.fooletfs.com and the Index Calculation Agent, at www.solactive.com. You cannot invest directly in an index.

 

**

The S&P 500® Total Return Index is the total return version of the S&P 500® Index. Dividends are reinvested on a daily basis and all regular cash dividends are assumed reinvested in the index on the ex-dividend date. The S&P 500® Index is a market-capitalization-weighted index of 500 US stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500® Index is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe. The S&P 500® Index was first introduced on the 1st of January, 1923, though expanded to 500 stocks on March 4, 1957.

 

16

 

 

 

Motley Fool 100 Index ETF

Portfolio Characteristics (Concluded)

(Unaudited)

 

The following tables show the top ten holdings and sector allocations, in which the Motley Fool 100 Index ETF was invested in as of August 31, 2022. Portfolio holdings are subject to change without notice.

 

Top TEN Holdings

% OF Net
Assets

Apple, Inc.

14.1%

Microsoft Corp.

10.8

Alphabet, Inc., Class C

7.9

Amazon.com, Inc.

7.1

Tesla, Inc.

4.7

Berkshire Hathaway, Inc., Class B

3.4

UnitedHealth Group, Inc.

2.7

Meta Platforms, Inc., Class A

2.4

Johnson & Johnson

2.3

Visa, Inc., Class A

2.3

 

57.7%

 

The Motley Fool 100 Index ETF uses the Global Industry Classification StandardSM (“GICSSM”) as the basis for the classification of securities on the Schedule of Investments (“SOI”). We believe that this makes the SOI classifications more standard with the rest of the industry.

 

Sector Allocation

% OF Net
Assets

Information Technology

41.9%

Consumer Discretionary

17.1

Communication Services

14.0

Health Care

11.0

Financials

8.0

Industrials

3.0

Real Estate

1.6

Consumer Staples

1.5

Utilities

0.9

Materials

0.6

Energy

0.2

 

99.8%

 

 

17

 

 

MOTLEY FOOL SMALL-CAP GROWTH ETF

Portfolio Characteristics

(Unaudited)

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED AUGUST 31, 2022

 

One
Year

Three
Years

Since
Inception

Inception
Date

Motley Fool Small-Cap Growth ETF

-36.66%

5.79%

8.77%

10/29/2018

Russell 2000 Growth Total Return® Index*

-25.26%

5.93%

6.61%(1)

Fund Expense Ratio:(2) 0.85%

       

 

 

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. The investment return and principal value of an investment will fluctuate so that shares, when redeemed or sold, may be worth more or less than their original cost.

 

(1)

Benchmark performance is from inception date of the Fund only and is not the inception date of the benchmark itself.

 

(2)

The expense ratio of the Fund is set forth according to the Prospectus for the Fund and may differ from the expense ratio disclosed in the Financial Highlights table in this report. See the Financial Highlights for most current expense ratio.

 

*

The Russell 2000 Growth Total Return® Index measures the performance of those companies included in the Russell 2000 Index with higher price-to-book ratios and higher forecasted earnings growth rates. The Russell 2000 Index measures the performance of approximately 2,000 companies with small-market capitalizations.

 

18

 

 

 

MOTLEY FOOL SMALL-CAP GROWTH ETF

Portfolio Characteristics (CONCLUDED)

(Unaudited)

 

The following tables show the top ten holdings and sector allocations, in which the Motley Fool Small-Cap Growth ETF was invested in as of August 31, 2022. Portfolio holdings are subject to change without notice.

 

Top TEN Holdings

% OF Net
Assets

Watsco, Inc.

6.6%

Alarm.com Holdings, Inc.

6.2

Ping Identity Holding Corp.

5.5

Axon Enterprise, Inc.

5.1

Paylocity Holding Corp.

4.3

Globus Medical, Inc., Class A

4.2

Penumbra, Inc.

3.8

Heska Corp.

3.8

Gentex Corp.

3.4

RADA Electronic Industries Ltd.

3.4

 

46.3%

 

The Motley Fool Small-Cap Growth ETF uses GICSSM as the basis for the classification of securities on the Schedule of Investments.

 

Sector Allocation

% OF Net
Assets

Information Technology

25.0%

Industrials

22.5

Health Care

20.5

Real Estate

9.0

Consumer Discretionary

7.5

Financials

4.9

Energy

2.8

Communication Services

1.4

 

93.6%

 

 

19

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Portfolio Characteristics

(Unaudited)

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED AUGUST 31, 2022

 

Since
Inception

Inception
Date

Motley Fool Capital Efficiency 100 Index ETF

-23.13%

12/30/2021

Motley Fool Capital Efficiency 100 Index*

-23.07%(1)

S&P 500 Total Return Index**

-16.36%(1)

Fund Expense Ratio:(2) 0.50%

   

 

 

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. The investment return and principal value of an investment will fluctuate so that shares, when redeemed or sold, may be worth more or less than their original cost.

 

Not annualized.

 

(1)

Benchmark performance is from inception date of the Fund only and is not the inception date of the benchmark itself.

 

(2)

The expense ratio of the Fund is set forth according to the Prospectus for the Fund and may differ from the expense ratio disclosed in the Financial Highlights table in this report. See the Financial Highlights for most current expense ratio.

 

*

The Motley Fool Capital Efficiency 100 Index (“Capital Efficiency 100 Index”) was developed by The Motley Fool, LLC (“The Motley Fool”), an affiliate of Motley Fool Asset Management, LLC (“Adviser”), in 2021 and is a proprietary, rules-based index designed to track the performance of the highest scoring stocks of U.S. companies, measured by a company’s capital efficiency, that have been recommended by The Motley Fool’s analysts and newsletters, and that also meet certain liquidity requirements. Capital efficiency is a measure of how a business turns its investments into revenue and profit and it provides insight into the company’s return on invested capital. Every company included in the Capital Efficiency 100 Index is incorporated and listed in the U.S. The Capital Efficiency 100 Index is calculated and administered by Solactive AG (the “Index Calculation Agent”), which is not affiliated with the Fund, the Adviser or The Motley Fool. Additional information regarding the Capital Efficiency 100 Index, including its value, is available on the websites of the Fund at www.fooletfs.com and the Index Calculation Agent, at www.solactive.com. You cannot invest directly in an index.

 

**

The S&P 500® Total Return Index is the total return version of the S&P 500® Index. Dividends are reinvested on a daily basis and all regular cash dividends are assumed reinvested in the index on the ex-dividend date. The S&P 500® Index is a market-capitalization-weighted index of 500 US stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500® Index is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe. The S&P 500® Index was first introduced on the 1st of January, 1923, though expanded to 500 stocks on March 4, 1957.

 

20

 

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Portfolio Characteristics (CONCLUDED)

(Unaudited)

 

The following tables show the top ten holdings and sector allocations, in which the Motley Fool Capital Efficiency 100 Index ETF was invested in as of August 31, 2022. Portfolio holdings are subject to change without notice.

 

Top TEN Holdings

% OF Net
Assets

Apple, Inc.

5.6%

Amazon.com, Inc.

5.6

UnitedHealth Group, Inc.

5.4

Home Depot, Inc., (The)

5.0

Microsoft Corp.

4.9

Visa, Inc., Class A

4.9

Alphabet, Inc., Class C

4.7

Meta Platforms, Inc., Class A

4.6

Mastercard, Inc., Class A

4.5

Johnson & Johnson

4.4

 

49.6%

 

The Motley Fool Capital Efficiency 100 Index ETF uses GICSSM as the basis for the classification of securities on the Schedule of Investments.

 

Sector Allocation

% OF Net
Assets

Information Technology

43.6%

Health Care

17.0

Consumer Discretionary

16.3

Communication Services

12.2

Industrials

5.4

Consumer Staples

4.1

Materials

0.8

Financials

0.4

 

99.8%

 

 

21

 

 

MOTLEY FOOL NEXT INDEX ETF

Portfolio Characteristics

(Unaudited)

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED AUGUST 31, 2022

 

Since
Inception

Inception
Date

Motley Fool Next Index ETF

-24.88%

12/30/2021

Motley Fool Next Index*

-24.72%(1)

Russell Midcap® Growth Total Return Index**

-25.42%(1)

Fund Expense Ratio:(2) 0.50%

   

 

 

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. The investment return and principal value of an investment will fluctuate so that shares, when redeemed or sold, may be worth more or less than their original cost.

 

Not annualized.

 

(1)

Benchmark performance is from inception date of the Fund only and is not the inception date of the benchmark itself.

 

(2)

The expense ratio of the Fund is set forth according to the Prospectus for the Fund and may differ from the expense ratio disclosed in the Financial Highlights table in this report. See the Financial Highlights for most current expense ratio.

 

*

The Motley Fool Next Index (“Next Index”) was developed by The Motley Fool, LLC (“The Motley Fool”), an affiliate of Motley Fool Asset Management, LLC (“Adviser”), in 2021 and is a proprietary, rules-based index designed to track the performance of the 100 largest, most liquid U.S. companies that have been recommended by The Motley Fool’s analysts and newsletters. Every company included in the Capital Efficiency 100 Index is incorporated and listed in the U.S. The Next Index is calculated and administered by Solactive AG (the “Index Calculation Agent”), which is not affiliated with the Fund, the Adviser or The Motley Fool. Additional information regarding the Next Index, including its value, is available on the websites of the Fund at www.fooletfs.com and the Index Calculation Agent, at www.solactive.com. You cannot invest directly in an index.

 

**

The Russell Midcap® Growth Total Return Index measures the performance of the mid-cap growth segment of the U.S. equity universe. It includes those Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values. The Russell Midcap® Growth Total Return Index is constructed to provide a comprehensive and unbiased barometer of the mid-cap growth market. The Index is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true mid-cap growth market.

 

22

 

 

 

MOTLEY FOOL NEXT INDEX ETF

Portfolio Characteristics (CONCLUDED)

(Unaudited)

 

The following tables show the top ten holdings and sector allocations, in which the Motley Fool Next Index ETF was invested in as of August 31, 2022. Portfolio holdings are subject to change without notice.

 

Top TEN Holdings

% OF Net
Assets

Arista Networks, Inc.

2.3%

Warner Bros Discovery, Inc.

2.0

Trade Desk, Inc., (The), Class A

1.9

Cummins, Inc.

1.9

Nasdaq, Inc.

1.8

Corning, Inc.

1.8

Seagen, Inc.

1.8

Alnylam Pharmaceuticals, Inc.

1.5

EPAM Systems, Inc.

1.5

Sirius XM Holdings, Inc.

1.5

 

18.0%

 

The Motley Fool Next Index ETF uses GICSSM as the basis for the classification of securities on the Schedule of Investments.

 

Sector Allocation

% OF Net
Assets

Information Technology

37.5%

Consumer Discretionary

14.6

Health Care

13.4

Industrials

12.1

Communication Services

8.5

Financials

8.1

Consumer Staples

3.3

Materials

1.0

Real Estate

1.0

Energy

0.2

 

99.7%

 

 

23

 

 

Motley Fool Asset Management ETFs

Fund Expense Examples

AUGUST 31, 2022 (Unaudited)

 

As a shareholder of the Fund(s), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, (if any), including brokerage commissions on purchases and sales of Fund shares, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund(s) and to compare these costs with the ongoing costs of investing in other ETFs.

 

These examples are based on an investment of $1,000 invested at the beginning of the six-month period from March 1, 2022 through August 31, 2022, and held for the entire period.

 

Actual Expenses

 

The first line of the accompanying table provides information about actual account values 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 Period” to estimate the expenses you paid on your account during this period.

 

Hypothetical Examples for Comparison Purposes

 

The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on each 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 a Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the accompanying table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second line of the accompanying table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

Do you know how many times a fund, or the market, has returned a smooth 5% over a long period of time? Never. But we have to pick some example. In reality, the market’s returns are always far bumpier, with the market returning 20% one year, followed by a loss of 10% the next year, followed by a 3% gain,etc. These variations affect actual expenses as well. Happily, over almost all time periods of 20 years or longer, according to the research of University of Pennsylvania’s Jeremy Siegel and others, the domestic market’s returns have been at least 5% per year on average.

 

 

24

 

 

 

Motley Fool Asset Management ETFs

Fund Expense Examples (Concluded)

AUGUST 31, 2022 (Unaudited)

 

 

Beginning
Account Value
march 1,
2022

Ending
Account Value
august 31,
2022

Expenses
Paid During
Period
(1)

Annualized
Expense
Ratio

Actual Six-Month Total Investment Returns
for the Funds

Motley Fool Global Opportunities ETF

         

Actual

$ 1,000.00

$ 877.40

$ 4.02

0.85%

-12.26%

Hypothetical (5% return before expenses)

1,000.00

1,020.92

4.33

0.85%

N/A

Motley Fool Mid-Cap Growth ETF

         

Actual

$ 1,000.00

$ 878.50

$ 4.02

0.85%

-12.15%

Hypothetical (5% return before expenses)

1,000.00

1,020.92

4.33

0.85%

N/A

Motley Fool 100 Index ETF

 

 

 

 

 

Actual

$ 1,000.00

$ 874.50

$ 2.36

0.50%

-12.55%

Hypothetical (5% return before expenses)

1,000.00

1,022.68

2.55

0.50%

N/A

Motley Fool Small-Cap Growth ETF

         

Actual

$ 1,000.00

$ 812.70

$ 3.88

0.85%

-18.73%

Hypothetical (5% return before expenses)

1,000.00

1,020.92

4.33

0.85%

N/A

Motley Fool Capital Efficiency 100 Index ETF

       

Actual

$ 1,000.00

$ 879.60

$ 2.37

0.50%

-12.04%

Hypothetical (5% return before expenses)

1,000.00

1,022.68

2.52

0.50%

N/A

Motley Fool Next Index ETF

         

Actual

$ 1,000.00

$ 858.00

$ 2.34

0.50%

-14.20%

Hypothetical (5% return before expenses)

1,000.00

1,022.68

2.52

0.50%

N/A

 

(1)

Expenses are equal to the Fund’s annualized expense ratio for the period March 1, 2022 through August 31, 2022, multiplied by the average account value over the period, multiplied by the number of days (184) in the most recent fiscal half-year, then divided by 365 to reflect the one-half year period. The Fund’s ending account value in the first section in the table is based on the actual since inception total investment return for the Fund.

 

 

25

 

 

Motley Fool global opportunities ETF

Schedule of Investments

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 

 

               

Common Stocks — 97.7%

               

Aerospace & Defense — 3.6%

               

Axon Enterprise, Inc. (United States)(a)*

    131,952     $ 15,396,159  

Banks — 6.9%

               

Bank of Georgia Group PLC (Georgia)

    257,804       5,989,800  

HDFC Bank., Ltd., ADR (India)

    185,356       11,315,984  

Signature Bank/NY (United States)

    52,188       9,099,500  

SVB Financial Group (United States)(a)*

    8,544       3,473,307  
              29,878,591  

Capital Markets — 3.4%

               

Brookfield Asset Management, Inc., Class A (Canada)

    261,710       12,590,868  

Georgia Capital PLC (Georgia)*

    273,377       2,172,255  
              14,763,123  

Commercial Services & Supplies — 4.4%

               

Waste Connections, Inc. (Canada)

    136,376       18,980,812  

Diversified Telecommunication Services — 3.7%

               

Cellnex Telecom SA (Spain)*(d)

    413,330       16,104,198  

Entertainment — 2.1%

               

Universal Music Group NV (Netherlands)

    461,736       9,190,452  

Equity Real Estate Investment Trusts (REITs) — 7.3%

               

American Tower Corp. (United States)

    39,624       10,066,477  

Equinix, Inc. (United States)

    17,600       11,569,712  

SBA Communications Corp. (United States)

    31,276       10,172,519  
              31,808,708  

Food & Staples Retailing — 2.5%

               

Costco Wholesale Corp. (United States)

    20,302       10,599,674  

Health Care Equipment & Supplies — 4.1%

               

Medtronic PLC (Ireland)

    129,536       11,388,805  

ResMed, Inc. (United States)

    28,160       6,192,947  
              17,581,752  

Health Care Providers & Services — 0.0%

               

NMC Health PLC (United Arab Emirates)(b)*

    485,482        

 

 

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

 

26

 

 

 

Motley Fool global opportunities ETF

Schedule of Investments (continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 

 

               

Common Stocks (continued)

Hotels, Restaurants & Leisure — 5.8%

               

Starbucks Corp. (United States)

    136,376     $ 11,465,130  

Yum China Holdings, Inc. (China)(a)

    272,301       13,645,003  
              25,110,133  

Insurance — 2.4%

               

Aon PLC, Class A (United Kingdom)

    37,948       10,597,359  

Interactive Media & Services — 4.0%

               

Alphabet, Inc., Class C (United States)*

    159,304       17,388,032  

Internet & Direct Marketing Retail — 8.4%

               

Amazon.com, Inc. (United States)*

    200,980       25,478,235  

MercadoLibre, Inc., Class A (Uruguay)*

    12,659       10,828,002  
              36,306,237  

IT Services — 7.3%

               

Mastercard, Inc., Class A (United States)

    75,632       24,532,752  

PayPal Holdings, Inc. (United States)*

    77,340       7,226,649  
              31,759,401  

Life Sciences Tools & Services — 3.4%

               

ICON PLC (Ireland)*

    70,400       14,772,032  

Machinery — 0.5%

               

FANUC Corp. (Japan)

    14,080       2,283,914  

Media — 2.1%

               

Comcast Corp., Class A (United States)

    206,680       7,479,749  

System1 Group PLC (United Kingdom)*

    567,240       1,449,714  
              8,929,463  

Real Estate Management & Development — 1.3%

               

Jones Lang LaSalle, Inc. (United States)*

    32,202       5,570,946  

Road & Rail — 2.0%

               

Canadian National Railway Co. (Canada)

    71,394       8,489,461  

Semiconductors & Semiconductor Equipment — 3.1%

               

Taiwan Semiconductor Manufacturing Co., Ltd., SP ADR (Taiwan)

    161,724       13,479,695  

 

 

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

 

 

27

 

 

Motley Fool global opportunities ETF

Schedule of Investments (continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 

 

               

Common Stocks (continued)

Software — 9.2%

               

Atlassian Corp., PLC, Class A (Australia)*ADR

    82,672     $ 20,474,547  

Everbridge, Inc. (United States)(a)*

    99,868       3,972,749  

Paycom Software, Inc. (United States)*

    32,584       11,443,501  

Splunk, Inc. (United States)*

    45,760       4,119,773  
              40,010,570  

Trading Companies & Distributors — 6.8%

               

Fastenal Co. (United States)

    161,222       8,114,303  

Watsco, Inc. (United States)(a)

    79,152       21,531,719  
              29,646,022  

Transportation Infrastructure — 3.2%

               

International Container Terminal Services, Inc. (Philippines)

    4,331,453       13,976,659  

Wireless Telecommunication Services — 0.2%

               

Safaricom PLC (Kenya)

    4,000,000       930,116  

Total Common Stocks (Cost $256,755,317)

            423,553,509  
                 

Investments Purchased with Proceeds from Securities Lending Collateral — 7.8%

               

Mount Vernon Liquid Assets Portfolio, LLC, 2.44%

    33,805,832       33,805,832  

Total Investments Purchased with Proceeds from Securities Lending Collateral (Cost $33,805,832)

            33,805,832  
                 

 

 

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

 

28

 

 

 

Motley Fool global opportunities ETF

Schedule of Investments (CONCLUDED)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 

 

               

Short-Term Investments — 2.1%

               

U.S. Bank Money Market Deposit Account, 2.00% (United States)(c)

    9,326,426     $ 9,326,426  

Total Short-Term Investments (Cost $9,326,426)

            9,326,426  
                 

Total Investments (Cost $299,887,575) — 107.6%

            466,685,767  

Liabilities in Excess of Other Assets — (7.6)%

            (33,033,724 )

NET ASSETS — 100.0%

               

(Applicable to 17,518,873 shares outstanding)

          $ 433,652,043  

 

*

Non-income producing security.

 

ADR — American Depositary Receipt

 

PLC — Public Limited Company

 

SP ADR — Sponsored ADR

 

(a)

All or a portion of the security is on loan. At August 31, 2022, the market value of securities on loan was $32,824,775.

 

(b)

Security has been valued at fair market value using significant unobservable inputs as determined in good faith by or under the direction of The RBB Fund, Inc.’s Board of Directors. As of August 31, 2022, these securities amounted to $0 or 0% of net assets.

 

(c)

The rate shown is as of August 31, 2022.

 

(d)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional buyers. As of August 31, 2022, total market value of Rule 144A securities is $16,104,198 and represents 3.7% of net assets.

 

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

 

 

29

 

 

Motley Fool mid-cap growth ETF

Schedule of Investments

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks — 93.8%

               

Aerospace & Defense — 4.4%

               

Axon Enterprise, Inc. (United States)*

    79,848     $ 9,316,665  

Air Freight & Logistics — 1.9%

               

GXO Logistics, Inc. (United States)*

    88,688       3,935,973  

Auto Components — 6.2%

               

Gentex Corp. (United States)

    266,066       7,260,941  

LCI Industries (United States)

    49,163       5,696,517  
              12,957,458  

Automobiles — 2.5%

               

Thor Industries, Inc. (United States)(a)

    64,322       5,210,725  

Banks — 3.1%

               

SVB Financial Group (United States)(a)*

    15,979       6,495,783  

Biotechnology — 0.2%

               

Ultragenyx Pharmaceutical, Inc. (United States)*

    9,778       466,313  

Electronic Equipment, Instruments & Components — 2.3%

               

Cognex Corp. (United States)

    113,111       4,763,104  

Equity Real Estate Investment Trusts (REITs) — 6.2%

               

SBA Communications Corp. (United States)

    39,924       12,985,281  

Health Care Equipment & Supplies — 8.8%

               

Cooper Companies, Inc., (The) (United States)

    22,080       6,346,675  

Heska Corp. (United States)(a)*

    24,051       2,190,325  

ResMed, Inc. (United States)

    44,813       9,855,275  
              18,392,275  

Health Care Providers & Services — 2.7%

               

HealthEquity, Inc. (United States)(a)*

    84,273       5,568,760  

Insurance — 10.4%

               

Brown & Brown, Inc. (United States)

    177,376       11,181,783  

Goosehead Insurance, Inc., Class A (United States)*

    20,000       1,040,000  

Markel Corp. (United States)*

    7,913       9,448,993  
              21,670,776  

IT Services — 4.0%

               

Broadridge Financial Solutions, Inc. (United States)

    48,796       8,352,411  

 

 

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

 

30

 

 

 

Motley Fool mid-cap growth ETF

Schedule of Investments (continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

Real Estate Management & Development — 3.6%

               

Jones Lang LaSalle, Inc. (United States)*

    43,048       7,447,304  

Road & Rail — 2.2%

               

XPO Logistics, Inc. (United States)(a)*

    88,688       4,649,025  

Software — 21.8%

               

Alarm.com Holdings, Inc. (United States)*

    121,439       8,087,838  

ANSYS, Inc. (United States)*

    7,107       1,764,668  

Avalara, Inc. (United States)*

    22,047       2,019,285  

Everbridge, Inc. (United States)*

    33,490       1,332,232  

Paycom Software, Inc. (United States)*

    19,872       6,979,046  

Paylocity Holding Corp. (United States)*

    43,695       10,530,495  

Splunk, Inc. (United States)*

    60,339       5,432,320  

Tyler Technologies, Inc. (United States)*

    25,204       9,363,538  
              45,509,422  

Specialty Retail — 1.9%

               

Tractor Supply Co. (United States)

    22,027       4,078,299  

Trading Companies & Distributors — 11.6%

               

Fastenal Co. (United States)

    171,598       8,636,527  

Watsco, Inc. (United States)(a)

    57,668       15,687,426  
              24,323,953  

Total Common Stocks (Cost $110,089,287)

            196,123,527  
                 

Investments Purchased with Proceeds from Securities Lending Collateral — 15.0%

               

Mount Vernon Liquid Assets Portfolio, LLC, 2.44%

    31,234,388       31,234,388  

Total Investments Purchased with Proceeds from Securities Lending Collateral (Cost $31,234,388)

            31,234,388  
                 

 

 

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

 

 

31

 

 

Motley Fool mid-cap growth ETF

Schedule of Investments (CONCLUDED)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Short-Term Investments — 6.5%

               

U.S. Bank Money Market Deposit Account, 2.00% (United States)(b)

    13,654,888     $ 13,654,888  

Total Short-Term Investments (Cost $13,654,888)

            13,654,888  
                 

Total Investments (Cost $154,978,563) — 115.3%

            241,012,803  

Liabilities in Excess of Other Assets — (15.3)%

            (31,968,788 )

NET ASSETS — 100.0%

               

(Applicable to 9,217,511 shares outstanding)

          $ 209,044,015  

 

*

Non-income producing security.

 

(a)

All or a portion of the security is on loan. At August 31, 2022, the market value of securities on loan was $30,222,704.

 

(b)

The rate shown is as of August 31, 2022.

 

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

 

32

 

 

 

Motley Fool 100 Index ETF

Schedule of Investments

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks — 99.8%

               

Aerospace & Defense — 0.2%

               

TransDigm Group, Inc. (United States)

    1,262     $ 757,692  

Air Freight & Logistics — 0.3%

               

FedEx Corp. (United States)

    5,987       1,262,119  

Automobiles — 4.7%

               

Tesla, Inc. (United States)*

    71,689       19,758,205  

Banks — 2.0%

               

JPMorgan Chase & Co. (United States)

    67,587       7,686,669  

SVB Financial Group (United States)(a)*

    1,361       553,274  
              8,239,943  

Beverages — 0.3%

               

Monster Beverage Corp. (United States)*

    12,234       1,086,746  

Biotechnology — 2.0%

               

Amgen, Inc. (United States)

    12,339       2,965,062  

Biogen, Inc. (United States)*

    3,384       661,166  

Gilead Sciences, Inc. (United States)

    28,969       1,838,662  

Moderna, Inc. (United States)(a)*

    9,188       1,215,297  

Vertex Pharmaceuticals, Inc. (United States)*

    5,907       1,664,356  
              8,344,543  

Capital Markets — 2.4%

               

Charles Schwab Corp., (The) (United States)

    43,796       3,107,326  

CME Group, Inc. (United States)

    8,302       1,623,954  

Intercontinental Exchange, Inc. (United States)

    12,944       1,305,402  

Moody’s Corp. (United States)

    4,256       1,210,917  

S&P Global, Inc. (United States)(a)

    7,486       2,636,420  
              9,884,019  

Chemicals — 0.6%

               

Ecolab, Inc. (United States)

    6,598       1,080,950  

Sherwin-Williams Co., (The) (United States)

    5,979       1,387,726  
              2,468,676  

Commercial Services & Supplies — 0.8%

               

Cintas Corp. (United States)

    2,365       962,177  

Copart, Inc. (United States)*

    4,990       597,053  

 

 

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

 

 

33

 

 

Motley Fool 100 Index ETF

Schedule of Investments (continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

Commercial Services & Supplies (continued)

Waste Management, Inc. (United States)

    9,590     $ 1,620,998  
              3,180,228  

Diversified Financial Services — 3.4%

               

Berkshire Hathaway, Inc., Class B (United States)*

    51,009       14,323,327  

Electric Utilities — 0.9%

               

NextEra Energy, Inc. (United States)(a)

    45,371       3,859,257  

Entertainment — 2.3%

               

Activision Blizzard, Inc. (United States)

    18,059       1,417,451  

Electronic Arts, Inc. (United States)

    6,458       819,327  

Netflix, Inc. (United States)*

    10,262       2,294,173  

ROBLOX Corp., Class A (United States)(a)*

    13,756       537,997  

Walt Disney Co., (The) (United States)

    42,068       4,714,981  
              9,783,929  

Equity Real Estate Investment Trusts (REITs) — 1.6%

               

American Tower Corp. (United States)

    10,689       2,715,541  

Crown Castle, Inc. (United States)

    10,002       1,708,642  

Digital Realty Trust, Inc. (United States)

    6,575       812,867  

Equinix, Inc. (United States)

    2,103       1,382,449  
              6,619,499  

Food & Staples Retailing — 1.3%

               

Costco Wholesale Corp. (United States)

    10,233       5,342,649  

Health Care Equipment & Supplies — 1.4%

               

Align Technology, Inc. (United States)*

    1,821       443,778  

Becton Dickinson and Co. (United States)

    6,584       1,661,933  

Dexcom, Inc. (United States)*

    9,152       752,386  

IDEXX Laboratories, Inc. (United States)*

    1,941       674,731  

Intuitive Surgical, Inc. (United States)*

    8,291       1,705,790  

ResMed, Inc. (United States)

    3,383       743,989  
              5,982,607  

Health Care Providers & Services — 4.0%

               

CVS Health Corp. (United States)

    30,285       2,972,473  

HCA Healthcare, Inc. (United States)

    6,826       1,350,661  

McKesson Corp. (United States)

    3,317       1,217,339  

 

 

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

 

34

 

 

 

Motley Fool 100 Index ETF

Schedule of Investments (continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

Health Care Providers & Services (continued)

UnitedHealth Group, Inc. (United States)

    21,668     $ 11,252,842  
              16,793,315  

Health Care Technology — 0.2%

               

Veeva Systems, Inc., Class A (United States)*

    3,608       719,147  

Hotels, Restaurants & Leisure — 1.9%

               

Airbnb, Inc., Class A (United States)*

    14,700       1,662,864  

Booking Holdings, Inc. (United States)*

    939       1,761,386  

Chipotle Mexican Grill, Inc. (United States)(a)*

    646       1,031,533  

Marriott International, Inc., Class A (United States)

    7,560       1,162,274  

Starbucks Corp. (United States)

    26,488       2,226,846  
              7,844,903  

Industrial Conglomerates — 0.4%

               

3M Co. (United States)(a)

    13,144       1,634,456  

Insurance — 0.2%

               

Aflac, Inc. (United States)(a)

    14,878       884,051  

Interactive Media & Services — 10.6%

               

Alphabet, Inc., Class C (United States)*

    302,620       33,030,973  

Match Group, Inc. (United States)*

    6,691       378,242  

Meta Platforms, Inc., Class A (United States)*

    62,503       10,183,614  

Twitter, Inc. (United States)*

    17,621       682,814  
              44,275,643  

Internet & Direct Marketing Retail — 7.3%

               

Amazon.com, Inc. (United States)*

    234,600       29,740,242  

eBay, Inc. (United States)(a)

    12,931       570,645  
              30,310,887  

IT Services — 5.4%

               

Cognizant Technology Solutions Corp., Class A (United States)

    12,038       760,440  

Mastercard, Inc., Class A (United States)

    22,464       7,286,648  

PayPal Holdings, Inc. (United States)*

    26,746       2,499,146  

Snowflake, Inc. Class A (United States)(a)*

    7,186       1,300,307  

 

 

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

 

 

35

 

 

Motley Fool 100 Index ETF

Schedule of Investments (continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

IT Services (continued)

Block, Inc., Class A (United States)*

    13,498     $ 930,147  

Twilio, Inc., Class A (United States)(a)*

    4,268       296,967  

Visa, Inc., Class A (United States)(a)

    48,112       9,560,336  
              22,633,991  

Life Sciences Tools & Services — 0.2%

               

Illumina, Inc. (United States)*

    3,629       731,752  

Oil, Gas & Consumable Fuels — 0.2%

               

Kinder Morgan, Inc. (United States)

    52,368       959,382  

Pharmaceuticals — 3.1%

               

Bristol-Myers Squibb Co. (United States)

    49,172       3,314,684  

Johnson & Johnson (United States)

    60,773       9,805,116  
              13,119,800  

Professional Services — 0.1%

               

CoStar Group, Inc. (United States)*

    8,383       583,792  

Road & Rail — 1.3%

               

Old Dominion Freight Line, Inc. (United States)(a)

    2,619       710,823  

Uber Technologies, Inc. (United States)*

    45,741       1,315,511  

Union Pacific Corp. (United States)

    14,505       3,256,518  
              5,282,852  

Semiconductors & Semiconductor Equipment — 5.9%

               

Advanced Micro Devices, Inc. (United States)*

    36,916       3,133,061  

Broadcom, Inc. (United States)

    9,328       4,655,698  

Lam Research Corp. (United States)

    3,205       1,403,502  

NVIDIA Corp. (United States)

    57,831       8,729,011  

QUALCOMM, Inc. (United States)

    25,564       3,381,350  

Texas Instruments, Inc. (United States)

    20,361       3,363,841  
              24,666,463  

Software — 16.5%

               

Adobe, Inc. (United States)*

    10,913       4,075,351  

Autodesk, Inc. (United States)*

    5,019       1,012,533  

Cadence Design Systems, Inc. (United States)*

    6,370       1,106,915  

Crowdstrike Holdings, Inc., Class A (United States)*

    5,401       986,276  

Datadog, Inc., Class A (United States)*

    7,366       773,062  

 

 

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

 

36

 

 

 

Motley Fool 100 Index ETF

Schedule of Investments (Continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

Software (continued)

Fortinet, Inc. (United States)*

    18,538     $ 902,615  

Intuit, Inc. (United States)

    6,515       2,813,047  

Microsoft Corp. (United States)

    172,451       45,090,763  

Palo Alto Networks, Inc. (United States)*

    2,302       1,281,776  

Roper Technologies, Inc. (United States)

    2,488       985,516  

Salesforce, Inc. (United States)*

    22,981       3,587,794  

ServiceNow, Inc. (United States)*

    4,630       2,012,290  

Synopsys, Inc. (United States)*

    3,533       1,222,489  

VMware, Inc., Class A (United States)

    9,734       1,129,436  

Workday, Inc., Class A (United States)*

    5,894       969,917  

Zoom Video Communications, Inc., Class A (United States)*

    6,892       554,117  

Zscaler, Inc. (United States)*

    3,324       529,314  
              69,033,211  

Specialty Retail — 2.3%

               

Home Depot, Inc., (The) (United States)

    23,737       6,846,226  

Lowe’s Cos, Inc. (United States)

    14,073       2,732,132  
              9,578,358  

Technology Hardware, Storage & Peripherals — 14.1%

               

Apple, Inc. (United States)

    373,196       58,673,875  

Textiles, Apparel & Luxury Goods — 0.9%

               

NIKE, Inc., Class B (United States)

    36,347       3,869,138  

Wireless Telecommunication Services — 1.0%

               

T-Mobile US, Inc. (United States)(a)*

    28,953       4,168,075  

Total Common Stocks (Cost $321,461,306)

            416,656,530  

Rights — 0.0%

               

Altaba, Inc. - Escrow Shares (United States)*(b)

    8,565       32,547  

Total Rights (Cost $8,126)

            32,547  
                 

Investments Purchased with Proceeds from Securities Lending Collateral — 5.1%

               

Mount Vernon Liquid Assets Portfolio, LLC, 2.44%

    21,230,044       21,230,044  

Total Investments Purchased with Proceeds from Securities Lending Collateral (Cost $21,230,044)

            21,230,044  
                 

 

 

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

 

 

37

 

 

Motley Fool 100 Index ETF

Schedule of Investments (Concluded)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Short-Term Investments — 0.1%

               

U.S. Bank Money Market Deposit Account, 2.00% (United States)(c)

    387,749     $ 387,749  

Total Short-Term Investments (Cost $387,749)

            387,749  
                 

Total Investments (Cost $343,087,225) — 105.0%

            438,306,870  

Liabilities in Excess of Other Assets — (5.0)%

            (21,038,133 )

NET ASSETS — 100.0%

               

(Applicable to 12,275,000 shares outstanding)

          $ 417,268,737  

 

*

Non-income producing security.

 

(a)

All or a portion of the security is on loan. At August 31, 2022, the market value of securities on loan was $20,543,351.

 

(b)

Security has been valued at fair market value using significant unobservable inputs as determined in good faith by or under the direction of The RBB Fund, Inc.’s Board of Directors. As of August 31, 2022, these securities amounted to $32,547 or 0.0% of net assets.

 

(c)

The rate shown is as of August 31, 2022.

 

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

 

38

 

 

 

MOTLEY FOOL Small-Cap Growth ETF

Schedule of Investments

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks — 93.6%

               

Aerospace & Defense — 8.5%

               

Axon Enterprise, Inc. (United States)*

    34,080     $ 3,976,455  

RADA Electronic Industries Ltd. (Israel)*

    263,872       2,646,636  
              6,623,091  

Auto Components — 6.0%

               

Fox Factory Holding Corp. (United States)*

    21,699       2,022,564  

Gentex Corp. (United States)

    97,264       2,654,334  
              4,676,898  

Banks — 1.9%

               

Live Oak Bancshares, Inc. (United States)

    41,339       1,498,125  

Biotechnology — 4.3%

               

PTC Therapeutics, Inc. (United States)(a)*

    37,374       1,866,458  

Ultragenyx Pharmaceutical, Inc. (United States)*

    31,141       1,485,114  
              3,351,572  

Building Products — 1.2%

               

Trex Co., Inc. (United States)(a)*

    19,795       926,208  

Electronic Equipment, Instruments & Components — 1.8%

               

nLight, Inc. (United States)*

    112,358       1,403,351  

Equity Real Estate Investment Trusts (REITs) — 2.6%

               

STAG Industrial, Inc. (United States)

    65,887       2,029,320  

Health Care Equipment & Supplies — 13.9%

               

Globus Medical, Inc., Class A (United States)(a)*

    54,782       3,242,547  

Heska Corp. (United States)(a)*

    32,615       2,970,248  

Mesa Laboratories, Inc. (United States)(a)

    9,528       1,627,954  

Penumbra, Inc. (United States)(a)*

    18,228       2,992,491  
              10,833,240  

Health Care Providers & Services — 1.1%

               

HealthEquity, Inc. (United States)*

    12,794       845,428  

Health Care Technology — 1.2%

               

Schrodinger, Inc. (United States)(a)*

    35,387       971,019  

Insurance — 2.9%

               

Goosehead Insurance, Inc., Class A (United States)(a)*

    43,989       2,287,428  

 

 

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

 

 

39

 

 

MOTLEY FOOL Small-Cap Growth ETF

Schedule of Investments (CONTINUED)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

Leisure Products — 1.5%

               

Clarus Corp. (United States)(a)

    77,500     $ 1,175,675  

Machinery — 2.9%

               

John Bean Technologies Corp. (United States)

    21,662       2,236,818  

Media — 1.4%

               

Cardlytics, Inc. (United States)*

    79,641       1,054,447  

Oil, Gas & Consumable Fuels — 2.8%

               

Northern Oil and Gas, Inc. (United States)

    70,308       2,224,545  

Real Estate Management & Development — 6.4%

               

Howard Hughes Corp., (The) (United States)*

    38,908       2,475,716  

Jones Lang LaSalle, Inc. (United States)*

    8,163       1,412,199  

Newmark Group, Inc., Class A (United States)(a)

    110,373       1,131,323  
              5,019,238  

Road & Rail — 3.4%

               

Landstar System, Inc. (United States)(a)

    17,980       2,636,407  

Software — 23.2%

               

Alarm.com Holdings, Inc. (United States)*

    72,344       4,818,110  

Everbridge, Inc. (United States)*

    33,566       1,335,256  

Paylocity Holding Corp. (United States)*

    14,075       3,392,075  

Ping Identity Holding Corp. (United States)*

    151,404       4,260,509  

Q2 Holdings, Inc. (United States)(a)*

    44,888       1,782,951  

Smartsheet, Inc., Class A (United States)*

    52,749       1,754,959  

Upland Software, Inc. (United States)*

    73,466       769,189  
              18,113,049  

Trading Companies & Distributors — 6.6%

               

Watsco, Inc. (United States)(a)

    18,848       5,127,222  

Total Common Stocks (Cost $93,146,756)

            73,033,081  
                 

Investments Purchased with Proceeds from Securities Lending Collateral — 21.9%

               

Mount Vernon Liquid Assets Portfolio, LLC, 2.44%

    17,127,093       17,127,093  

Total Investments Purchased with Proceeds from Securities Lending Collateral (Cost $17,127,093)

            17,127,093  
                 

 

 

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

 

40

 

 

 

MOTLEY FOOL Small-Cap Growth ETF

Schedule of Investments (Concluded)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Short-Term Investments — 6.5%

               

U.S. Bank Money Market Deposit Account, 2.00% (United States)(b)

    5,053,164     $ 5,053,164  

Total Short-Term Investments (Cost $5,053,164)

            5,053,164  
                 

Total Investments (Cost $115,327,013) — 122.0%

            95,213,338  

Liabilities in Excess of Other Assets — (22.0)%

            (17,163,483 )

NET ASSETS — 100.0%

               

(Applicable to 3,100,000 shares outstanding)

          $ 78,049,855  

 

*

Non-income producing security.

 

(a)

All or a portion of the security is on loan. At August 31, 2022, the market value of securities on loan was $16,722,909.

 

(b)

The rate shown is as of August 31, 2022.

 

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

 

 

41

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Schedule of Investments

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks — 99.8%

               

Aerospace & Defense — 0.0%

               

AeroVironment, Inc. (United States)*

    54     $ 4,787  

Beverages — 0.7%

               

Boston Beer Co., Inc., (The) (United States)*

    22       7,416  

Monster Beverage Corp. (United States)*

    1,550       137,686  
              145,102  

Biotechnology — 3.0%

               

Amgen, Inc. (United States)

    1,499       360,210  

Biogen, Inc. (United States)*

    402       78,543  

Exelixis, Inc. (United States)*

    1,026       18,201  

Vertex Pharmaceuticals, Inc. (United States)*

    621       174,973  
              631,927  

Capital Markets — 0.4%

               

Nasdaq, Inc. (United States)

    1,215       72,329  

PJT Partners, Inc., Class A (United States)

    54       3,738  
              76,067  

Chemicals — 0.8%

               

Balchem Corp. (United States)

    81       10,677  

Ecolab, Inc. (United States)

    715       117,139  

RPM International, Inc. (United States)

    373       34,749  
              162,565  

Commercial Services & Supplies — 1.8%

               

Cintas Corp. (United States)

    288       117,170  

Copart, Inc. (United States)*

    618       73,944  

Waste Management, Inc. (United States)

    1,037       175,284  
              366,398  

Communications Equipment — 0.2%

               

Ubiquiti, Inc. (United States)

    148       45,938  

Construction & Engineering — 0.1%

               

MasTec, Inc. (United States)*

    162       13,041  

Consumer Finance — 0.0%

               

Upstart Holdings, Inc. (United States)*

    217       5,620  

 

 

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

 

42

 

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Schedule of Investments (Continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

Distributors — 0.2%

               

LKQ Corp. (United States)

    865     $ 46,035  

Electronic Equipment, Instruments & Components — 1.1%

               

CDW Corp. (United States)

    381       65,037  

Cognex Corp. (United States)

    409       17,223  

Corning, Inc. (United States)

    1,999       68,605  

National Instruments Corp. (United States)

    442       17,574  

Zebra Technologies Corp., Class A (United States)*

    173       52,184  
              220,623  

Entertainment — 2.2%

               

Activision Blizzard, Inc. (United States)

    2,037       159,884  

Netflix, Inc. (United States)*

    1,120       250,387  

Take-Two Interactive Software, Inc. (United States)*

    426       52,211  
              462,482  

Food & Staples Retailing — 3.3%

               

Casey’s General Stores, Inc. (United States)

    111       23,729  

Costco Wholesale Corp. (United States)

    1,261       658,368  
              682,097  

Food Products — 0.1%

               

Darling Ingredients, Inc. (United States)*

    388       29,511  

Health Care Equipment & Supplies — 2.3%

               

ABIOMED, Inc. (United States)*

    111       28,780  

Globus Medical, Inc., Class A (United States)*

    270       15,981  

IDEXX Laboratories, Inc. (United States)*

    340       118,191  

Intuitive Surgical, Inc. (United States)*

    897       184,549  

Masimo Corp. (United States)*

    134       19,683  

ResMed, Inc. (United States)

    461       101,383  
              468,567  

Health Care Providers & Services — 6.9%

               

HCA Healthcare, Inc. (United States)

    916       181,249  

McKesson Corp. (United States)

    358       131,386  

UnitedHealth Group, Inc. (United States)

    2,141       1,111,886  
              1,424,521  

 

 

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

 

 

43

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Schedule of Investments (Continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

Health Care Technology — 0.4%

               

Veeva Systems, Inc., Class A (United States)*

    426     $ 84,910  

Hotels, Restaurants & Leisure — 0.1%

               

Wingstop, Inc. (United States)

    86       9,792  

Household Durables — 0.2%

               

iRobot Corp. (United States)*

    54       3,180  

Meritage Homes Corp. (United States)*

    93       7,287  

NVR, Inc. (United States)*

    8       33,120  
              43,587  

Industrial Conglomerates — 0.8%

               

3M Co. (United States)

    1,405       174,712  

Interactive Media & Services — 9.5%

               

Alphabet, Inc., Class C (United States)*

    8,940       975,801  

Meta Platforms, Inc., Class A (United States)*

    5,902       961,613  

Pinterest, Inc., Class A (United States)*

    1,636       37,693  
              1,975,107  

Internet & Direct Marketing Retail — 6.0%

               

Amazon.com, Inc. (United States)*

    9,095       1,152,973  

eBay, Inc. (United States)

    1,356       59,840  

Etsy, Inc. (United States)*

    354       37,386  
              1,250,199  

IT Services — 10.5%

               

Cognizant Technology Solutions Corp., Class A (United States)

    1,559       98,482  

EPAM Systems, Inc. (United States)*

    158       67,387  

GoDaddy, Inc., Class A (United States)*

    416       31,541  

Jack Henry & Associates, Inc. (United States)

    203       39,016  

Mastercard, Inc., Class A (United States)

    2,862       928,347  

TaskUS, Inc., Class A (United States)*

    245       3,646  

Visa, Inc., Class A (United States)

    5,093       1,012,030  
              2,180,449  

Machinery — 0.4%

               

Cummins, Inc. (United States)

    335       72,149  

 

 

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

 

44

 

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Schedule of Investments (Continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

Media — 0.4%

               

New York Times Co., (The), Class A (United States)

    486     $ 14,818  

Sirius XM Holdings, Inc. (United States)

    11,739       71,491  
              86,309  

Pharmaceuticals — 4.4%

               

Johnson & Johnson (United States)

    5,711       921,413  

Professional Services — 0.0%

               

Upwork, Inc. (United States)*

    311       5,411  

Road & Rail — 2.2%

               

Old Dominion Freight Line, Inc. (United States)

    357       96,893  

Union Pacific Corp. (United States)

    1,595       358,094  
              454,987  

Semiconductors & Semiconductor Equipment — 12.4%

               

Advanced Micro Devices, Inc. (United States)*

    4,498       381,745  

Broadcom, Inc. (United States)

    1,060       529,057  

Cirrus Logic, Inc. (United States)*

    130       9,970  

Lam Research Corp. (United States)

    422       184,798  

NVIDIA Corp. (United States)

    5,862       884,810  

Skyworks Solutions, Inc. (United States)

    372       36,661  

Texas Instruments, Inc. (United States)

    3,196       528,011  

Universal Display Corp. (United States)

    108       12,067  
              2,567,119  

Software — 13.7%

               

Adobe Systems, Inc. (United States)*

    1,644       613,935  

Appfolio, Inc. (United States)*

    75       7,603  

Autodesk, Inc. (United States)*

    751       151,507  

Cadence Design Systems, Inc. (United States)*

    881       153,091  

Fair Isaac Corp. (United States)*

    97       43,592  

Fortinet, Inc. (United States)*

    2,423       117,976  

Microsoft Corp. (United States)

    3,907       1,021,563  

Paycom Software, Inc. (United States)*

    131       46,007  

ServiceNow, Inc. (United States)*

    564       245,126  

Synopsys, Inc. (United States)*

    490       169,550  

UiPath, Inc., Class A (United States)*

    1,273       20,941  

VMware, Inc., Class A (United States)

    992       115,102  

 

 

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

 

 

45

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Schedule of Investments (Continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

Software (continued)

Workday, Inc., Class A (United States)*

    721     $ 118,648  

Zendesk, Inc. (United States)*

    298       22,877  
              2,847,518  

Specialty Retail — 7.7%

               

Camping World Holdings, Inc., Class A (United States)

    113       3,404  

Home Depot, Inc., (The) (United States)

    3,574       1,030,813  

Lowe’s Cos, Inc. (United States)

    2,252       437,203  

RH (United States)*

    72       18,426  

Ulta Beauty, Inc. (United States)*

    154       64,660  

Williams-Sonoma, Inc. (United States)

    211       31,386  

Winmark Corp. (United States)

    20       4,127  
              1,590,019  

Technology Hardware, Storage & Peripherals — 5.7%

               

Apple, Inc. (United States)

    7,345       1,154,781  

Pure Storage, Inc., Class A (United States)*

    817       23,668  
              1,178,449  

Textiles, Apparel & Luxury Goods — 2.2%

               

NIKE, Inc., Class B (United States)

    4,152       441,980  

Under Armour, Inc., Class A (United States)*

    1,404       11,822  
              453,802  

Thrifts & Mortgage Finance — 0.0%

               

Walker & Dunlop, Inc. (United States)

    72       7,233  

Trading Companies & Distributors — 0.1%

               

Watsco, Inc. (United States)

    111       30,195  

Total Common Stocks (Cost $22,636,269)

            20,718,641  
                 

 

 

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

 

46

 

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Schedule of Investments (Concluded)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Short-Term Investments — 0.1%

               

U.S. Bank Money Market Deposit Account, 2.00% (United States)(a)

    17,495     $ 17,495  

Total Short-Term Investments (Cost $17,495)

            17,495  
                 

Total Investments (Cost $22,653,764) — 99.9%

            20,736,136  

Other Assets in Excess of Liabilities — 0.1%

            18,053  

NET ASSETS — 100.0%

               

(Applicable to 1,350,000 shares outstanding)

          $ 20,754,189  

 

*

Non-income producing security.

 

(a)

The rate shown is as of August 31, 2022.

 

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

 

 

47

 

 

MOTLEY FOOL next index ETF

Schedule of Investments

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks — 99.7%

               

Aerospace & Defense — 2.7%

               

AeroVironment, Inc. (United States)*

    509     $ 45,123  

Axon Enterprise, Inc. (United States)*

    1,430       166,853  

HEICO Corp. (United States)

    2,421       368,718  

Textron, Inc. (United States)

    4,330       270,105  

Virgin Galactic Holdings, Inc. (United States)*

    5,245       30,998  
              881,797  

Air Freight & Logistics — 0.3%

               

GXO Logistics, Inc. (United States)*

    2,313       102,651  

Airlines — 0.5%

               

Alaska Air Group, Inc. (United States)*

    2,539       110,599  

Hawaiian Holdings, Inc. (United States)*

    1,044       15,649  

JetBlue Airways Corp. (United States)*

    6,525       50,830  
              177,078  

Auto Components — 0.6%

               

BorgWarner, Inc. (United States)

    4,823       181,827  

Banks — 0.5%

               

Western Alliance Bancorp (United States)

    2,163       165,945  

Beverages — 0.3%

               

Boston Beer Co., Inc., (The) (United States)*

    246       82,922  

Biotechnology — 6.3%

               

2seventy bio, Inc. (United States)*

    760       11,195  

Alnylam Pharmaceuticals, Inc. (United States)*

    2,433       502,828  

AnaptysBio, Inc. (United States)*

    549       12,748  

BioMarin Pharmaceutical, Inc. (United States)*

    3,724       332,181  

Bluebird Bio, Inc. (United States)*

    1,392       8,129  

Editas Medicine, Inc. (United States)*

    1,392       20,462  

Emergent BioSolutions, Inc. (United States)*

    1,012       24,308  

Exact Sciences Corp. (United States)*

    3,542       125,918  

Exelixis, Inc. (United States)*

    6,457       114,547  

Ionis Pharmaceuticals, Inc. (United States)*

    2,855       121,395  

Neurocrine Biosciences, Inc. (United States)*

    1,924       201,308  

Seagen, Inc. (United States)*

    3,720       573,959  
              2,048,978  

 

 

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

 

48

 

 

 

MOTLEY FOOL next index ETF

Schedule of Investments (Continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

Building Products — 0.3%

               

Trex Co., Inc. (United States)*

    2,280     $ 106,681  

Capital Markets — 5.4%

               

Affiliated Managers Group, Inc. (United States)

    779       99,214  

Cboe Global Markets, Inc. (United States)

    2,139       252,338  

FactSet Research Systems, Inc. (United States)

    763       330,638  

Interactive Brokers Group, Inc., Class A (United States)

    1,979       121,887  

Jefferies Financial Group, Inc. (United States)

    4,822       154,738  

MarketAxess Holdings, Inc. (United States)

    760       188,928  

Nasdaq, Inc. (United States)

    9,948       592,204  

PJT Partners, Inc., Class A (United States)

    473       32,741  
              1,772,688  

Chemicals — 1.0%

               

Balchem Corp. (United States)

    647       85,288  

RPM International, Inc. (United States)

    2,607       242,868  
              328,156  

Commercial Services & Supplies — 1.0%

               

Rollins, Inc. (United States)

    9,915       334,730  

Communications Equipment — 3.4%

               

Arista Networks, Inc. (United States)*

    6,206       743,975  

Ubiquiti, Inc. (United States)

    1,217       377,745  
              1,121,720  

Construction & Engineering — 0.5%

               

MasTec, Inc. (United States)*

    1,494       120,267  

NV5 Global, Inc. (United States)*

    318       44,762  
              165,029  

Consumer Finance — 0.1%

               

Upstart Holdings, Inc. (United States)*

    1,733       44,885  

Distributors — 0.9%

               

LKQ Corp. (United States)

    5,694       303,035  

Diversified Consumer Services — 0.2%

               

2U, Inc. (United States)*

    1,524       10,851  

 

 

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

 

 

49

 

 

MOTLEY FOOL next index ETF

Schedule of Investments (Continued)

AUGUST 31, 2022

 

 

 

Number of
Shares

   

Value
(Note 2)

 
                 

Common Stocks (continued)

Diversified Consumer Services (continued)

Chegg, Inc. (United States)*

    2,535     $ 49,889  
              60,740  

Diversified Telecommunication Services — 0.0%

               

Bandwidth, Inc., Class A (United States)*

    522       8,091  

Electronic Equipment, Instruments & Components — 6.0%

               

CDW Corp. (United States)

    2,731       466,182  

Cognex Corp. (United States)

    3,498       147,301  

Corning, Inc. (United States)

    17,004       583,577  

II-VI, Inc. (United States)*

    2,599       122,751  

IPG Photonics Corp. (United States)*

    1,045       94,667  

Littelfuse, Inc. (United States)

    502       119,084  

National Instruments Corp. (United States)

    2,641       105,006  

Zebra Technologies Corp., Class A (United States)*

    1,058       319,135