ANNUAL
report 2023

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

8/31/23

 

Motley Fool Global Opportunities ETF

Motley Fool Mid-Cap Growth ETF

Motley Fool 100 Index ETF

Motley Fool 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

 

   

Letter to Shareholders

1

Portfolio Characteristics

10

Fund Expense Examples

23

Schedules of Investments

25

Financial Statements

55

Notes to Financial Statements

73

Report of Independent Registered Public Accounting Firm

88

Shareholder Tax Information

90

Notice to Shareholders

91

Privacy Notice

94

Directors and Officers

97

 

 

 

 

Motley Fool ASSET MANAGEMENT ETFS

Letter to Shareholders

AUGUST 31, 2023 (Unaudited)

 

 

Bryan Hinmon
Chief Investment Officer,
Motley Fool Asset Management

 

“We feel that high quality ownership can be attracted and maintained if we consistently communicate our business and ownership philosophy - along with no other conflicting messages - and then let self selection follow its course. For example, self selection will draw a far different crowd to a musical event advertised as an opera than one advertised as a rock concert even though anyone can buy a ticket to either.”

 

    - Warren Buffett, 1983 Shareholder Letter

 

Dear Fellow Shareholder,

 

Investing is hard and structural advantages are rare. Let me clarify a bit. Sustained market outperformance over long periods of time is hard and one of the biggest reasons that is true is because unique and lasting differential advantages are rare.

 

I don’t think the short- or long-version sentences above are controversial, so let’s just accept them as true and move on.1 The introductory quote above offers us an example of a unique and lasting differential advantage that Warren Buffet has used (“high quality ownership”) to help achieve his awe-inspiring performance track record.2 Lawrence Cunningham, a professor at George Washington University and author who has studied Buffett deeply, said he believes “one of the most important reasons for Berkshire’s success was having those shareholders that a different shareholder base wouldn’t have permitted.” Quality ownership seems important enough to explore.

 

PATIENT CAPITAL

 

So what does Buffett mean by high quality ownership? Cunningham published a book called Quality Shareholders in 2020 to detail the topic from the perspective of public company management teams. I recommend you read the entire book to fully understand the concept, but a simplified definition is a shareholder base that is committed to a company’s long-term success via aligned time horizon and mission. Such shareholders afford managers ample runway to execute their business strategy and they stay committed when the business navigates the inevitable adversities of capitalism and markets. They are committed and patient because of deep alignment.

 

Motley Fool Asset Management, LLC is not a publicly traded company with shareholders, but the principle is equally as crucial for us. Like Buffett suggests, we communicate our investing and ownership philosophy - hopefully with no other conflicting messages - with the goal of attracting a self-selecting collection of shareholders committed to joint long-term success. I’d be shocked if you cracked open this letter and didn’t expect to find mention of our focus on Quality or our long-term orientation.3 It’s heartening that, before reading a single word, you probably knew the gist of what you were going to read. It tells me we are aligned and that Motley Fool Asset Management benefits from quality ownership.

 

Just like the forces of capitalism create hiccups along the path to long-term business success, the forces of markets ensure no investing strategy works all the time (otherwise there would be only one!). We believe the disciplined application of a prudent strategy, through the inevitable ups and downs, can yield great results. It is only with the patient capital of quality owners that this is a possibility. Why?

 

CAREER RISK

 

The primary reason is career risk. If an asset manager doesn’t keep its investors happy, the investors will rightly withdraw their money. With no money to manage, there is no job.

 

1

If you or someone you know have found a formula that makes sustained market outperformance over long periods of time easy or know of any unique and lasting differential advantages that we can adopt, please email me at [email protected], I’d love to talk.

2

Check out page two of the most recent (2022) Berkshire Hathaway annual report for the bulk of Mr. Buffett’s impressive track record: https://www.berkshirehathaway.com/2022ar/2022ar.pdf

3

I will dole out 25,000 bonus points for anyone able to recite our core belief behind our philosophy: Independent research with a long-term mindset, expressed through focused portfolios, can outperform.

 

 

1

 

 

Motley Fool ASSET MANAGEMENT ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2023 (Unaudited)

 

There seem to be two primary ways for an asset manager to make its investors unhappy. The first is through persistent or extreme poor performance and the second is looking too different while underperforming. Both of these things often result in asset redemptions, which can trigger other investors to follow suit, and create a negative feedback loop.

 

To be clear, bad money managers probably shouldn’t have jobs. But the insidious effect of this spiral is that in the case of temporary, or aberrational, or unlucky performance hiccups, it can negatively influence the asset manager’s investment decision making. In order to protect against the asset withdrawal death spiral, a manager may be tempted to deviate from their investment strategy, chase what is working at the moment, take undue risk, or worse. Career risk can trigger primal survival mechanisms that can be hard to overcome and can be sparked by even just a whiff of perceived underperformance.

 

Owning an odd portfolio (looking too different) while underperforming can cause asset managers to make fewer investments of their own discretion and instead hew towards their benchmark weightings. It probably feels more comfortable knowing results probably won’t be too different than what everyone else is achieving and, as the old saying goes, it’s better to fail conventionally than succeed unconventionally.4 Hewing towards the benchmark is a phenomenon called “closet indexing” and has been studied at length by Notre Dame professor Martijn Cremers5 and his co-authors. In his 2015 paper Do Mutual Fund Investors Get What They Pay For?, Cremers and co-author Quinn Curtis found that 12% of the assets in US equity mutual funds were invested in closet index funds – that is, funds that purport to be actively managed but in actuality failed to achieve a sufficient level of differentiation from their index. Considering the trillions invested in “active” US equity funds today, that’s a lot of career risk-driven closet indexing!

 

But it’s worse than just that. The situations above focus on the behavior of the investment manager alone. But there are two in this dance: the manager and the investor. There is a body of academic work that shows individual investors, the investors the investment manager is working for, demonstrate behavioral biases such as trend chasing among the funds they are invested in.6 So even if the investment manager isn’t making investment decisions inappropriately, the shareholders could be causing withdrawals that start the capital flight death spiral.

 

Career risk, whether kicked off by the asset manager or the end investor, has nasty consequences.

 

TIME ARBITRAGE

 

But it’s not all sour grapes, thanks to quality shareholders. Let me explain.

 

Martijn Cremers, the professor referenced above, has demonstrated in his 2015 paper referenced above that investment managers who construct portfolios that look sufficiently different from relevant benchmarks (ones with high “active share”) can be more likely to outperform their benchmarks. Said another way, managers that can buck the fears and altered decision making that can accompany career risk and build unique portfolios, are employing a strategy that has, in the past, statistically been shown to work in many cases.

 

The academic work on active share makes logical sense to us. As Cremers says , “after all, an active manager can only add value relative to the index by deviating from it.” But to beat the benchmark, a manager has to be both different and right.

 

4

This notion appears to have originated from John Maynard Keynes and was published in his book The General Theory of Employment, Interest, and Money.

5

Here is the official citation for the paper referenced here, just in case you’re the type that likes to read academic papers (like me, hi friend!): Cremers, K. J. Martijn and Curtis, Quinn, Do Mutual Fund Investors Get What They Pay For? The Legal Consequences of Closet Index Funds (November 24, 2015). To read up on active share as a measure to determine closet indexing, or the degree of active indexing, please read Cremers’ 2009 paper: Cremers, K. J. Martijn and Petajisto, Antti, How Active is Your Fund Manager? A New Measure That Predicts Performance (March 31, 2009).

6

See Bailey et al., 2011; Sirri & Tufano, 1998; Friesen & Sapp, 2007.

 

2

 

 

 

Motley Fool ASSET MANAGEMENT ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2023 (Unaudited)

 

Let’s bring Kalash Jain, a professor at Columbia Business School, into the conversation. Jain recently published a working paper7 that helps explain why the persistent presence of career risk can create mispricing opportunities for some asset managers to take advantage of and outperform. Which managers ? “Longer-term fund managers who do not face such [career concerns related to the rear of asset redemption] frictions.”

 

In a creative way, Jain hypothesizes, tests and demonstrates in his study that career risk pushed many managers into a herding mentality, owning the same securities and avoiding others. The securities that are piled into (the comfortable residence of the herd) were bid up in demand and consequently often faced lower future expected returns. Meanwhile, the securities that managers fled, whether due to poor past performance or idiosyncratic volatility, generally had artificially low demand and therefore were set up for higher future expected returns. This is, as they say, the high price of a cheery consensus.

 

The opportunity here is to own the stocks a career risk-constrained manager is avoiding, which can only be done over time if a fund manager has the permission to own a portfolio that looks different from what everyone else owns, and they can hold long enough for the dynamic to fully play out (which Jain notes persists for years). This dynamic, where longer-term fund managers are allowed to behave differently – striving to generate returns by exploiting a different time horizon – than short-term driven fund managers, is called “time arbitrage” and an oft-cited example of fund strategy and advantage. We believe we fit squarely into this camp.

 

The role of quality shareholders can’t be overstated. Time arbitrage only works with time. And as committed as a manager is to a long time frame and shaking off the pressures from career risk, the opportunity can only be harnessed if the manager is given the time from a fully aligned quality owner, which is rare, special, and (hopefully now) obviously valuable.

 

MARKET PERFORMANCE AND COMMENTARY

 

Inflation continues to be the leading factor that has driven the US economy and markets since 2021. After wildly imbalanced demand trends and disrupted supply chains played primary roles in 2021 and 2022, things eventually began to normalize. For the first half of the fiscal year of September 1, 2022 to August 31, 2023, US inflation averaged nearly 7%, and by the second half, averaged a more tolerable 4%.

 

The US Federal Reserve Open Market Committee helped market forces slow inflation with seven rate increases over the fiscal year ended August 31, 2023, starting with a trio of aggressive rate increases in the calendar fourth quarter of 2022 before enacting a steady quartet of more modest 25 basis point increases over the remainder of the fiscal year. All in, rates increased by 300 basis points, on top of the 225 implemented in the first calendar half of 2022 which pulled rates off the near zero mark that had been customary for several years.

 

During the 2022 fiscal year, the US and international stock markets scrambled to reprice risk and recession odds as this never-before-seen rate move began and all major asset classes lost money. The result, as I wrote in last year’s shareholder letter, was that for investors “there was almost no safe place to hide.” It turns out that the broad walloping investors felt last year may have been a response too crude for the situation.

 

While it seems apparent to us that ZIRP (zero interest rate policy) is firmly in the rearview, the US and global economies have remained stronger than feared, and for the fiscal year ended August 31, 2023, investors were more discerning with their assessments when sorting through value. Bonds declined in value for a third straight fiscal year, losing almost 4%. Gold, often seen as a hedge on inflation, advanced 13%. Large capitalization US stocks gained more than 15%, with nine of eleven sectors advancing. Only the most rate-sensitive sectors, Real Estate and Utilities, declined in value. The Information Technology and Communication Services sectors led the way with roughly 32% and 25% returns for the fiscal year, partially thanks to their

 

7

While this paper has not yet been published in an academic journal, Jain notes that he has received comments and suggestions from more than a half dozen peers. Jain takes an interesting approach to identifying long-term fund managers by looking at the holding period of hard-to-own stocks, a measure he calls “duration.” You can find the paper on his website https://kalashjain.me/research/. Jain, Kalash, Career Concerns and Time Arbitrage (September 8, 2023).

 

 

3

 

 

 

 

Motley Fool ASSET MANAGEMENT ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2023 (Unaudited)

 

ownership of the largest capitalization stocks. The strong performance of large caps outpaced mid caps by more than 5 percentage points and small caps by more than 12. Both growth and value stocks returned double digits. Outside the US, global stocks grew 11% to help retrace some of the prior fiscal year’s decline.8

 

The healthy gain of global stocks is even more impressive in light of a global banking scare in March 2023. Multiple US banks failed due to an asset-liability mismatch (their loan duration did not match their bond holdings, and with rapid interest rate changes their bonds repriced lower and wiped out equity capital) and regional banks, as a class, came under immense pressure. Abroad, Credit Suisse needed saving as its balance sheet deteriorated and threatened European counterparties. Rapid intervention by government agencies helped markets largely shake off contagion fears and markets in March finished higher!

 

ACTIVE ETF PERFORMANCE AND COMMENTARY

 

Motley Fool Global Opportunities ETF

 

The Motley Fool Global Opportunities ETF returned 11.24% during the fiscal year ended August 31, 2023, trailing its benchmark’s return of 13.96% for the same period. Cumulatively since inception, the Motley Fool Global Opportunities ETF has returned 113.07% versus 94.79% returns for the benchmark over the same period.9

 

During the fiscal year, the ETF’s investments in the Information Technology sector were the largest detractors to investment performance. The Fund carried a lower exposure to the sector than its benchmark, which benefited from the strong performance of the sector broadly. The Fund’s selected investments within the sector also underperformed. The opposite situation occurred in the Industrial sector, where the Fund maintained investments in greater proportion than its benchmark and its security selection within the sector was superior. Our holdings in the IT sector were half of the benchmark’s and our holdings in the Industrials sector were twice the benchmark’s. Ultimately, we’re seeking to build a reasonably diversified portfolio of attractive individual opportunities that work together to achieve the Fund’s stated objectives. This will, most of the time, result in different sector and position weights than our benchmark. This is a feature, not a bug, of our investing process, and one we embrace. Ultimately, we would expect our stock selection to be the primary driver of returns.

 

The top three contributors to returns10 were Axon Enterprise (+82%), Mastercard (+28%), and MercadoLibre (+60%). Axon has continued to transform its business, develop and commercialize products its law enforcement and safety markets need, and surpass expectations. The company now receives 90% of its revenue from subscriptions and has begun expanding its end markets. On the product front, the reveal of Axon’s Taser 10 looks to be a leap forward in technology, should potentially buoy the value of Taser subscription bundles, and furthers the company’s goal to reduce gun-related deaths (between police and the public) by 50% over the next decade. The future continues to look bright to us, too, as the company has laid out the path to an expected $2 billion in 2025 revenue with growing profitability. Mastercard’s results reflect the resilient global consumer. The company’s key metrics have continued to evolve strongly, led by cross-border volume (up 70% over 2019, which removes the distortions of Covid-19). Mastercard naturally benefits from inflation as its services are largely related to the volume and value of global personal consumption expenditures, so as prices rise, so does its revenue. The key is managing expenses beneath this rate of increase, which the company has and hopefully will continue to do well. Latin American e-commerce and payments giant MercadoLibre’ s shares

 

8

Bonds are represented by the S&P U.S. Aggregate Bond Index. The index is designed to measure the performance of publicly issued US 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 US 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 US 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 US companies comprising about 5% of available US 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 US.

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.

10

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

 

4

 

 

 

Motley Fool ASSET MANAGEMENT ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2023 (Unaudited)

 

rallied impressively during the fiscal year ended August 31, 2023. Its payments segment, where it posted impressive profitability and growth in its installment lending business, was supported by ongoing strength in its core e-commerce segment. Mercado Libre continues to benefit from low e-commerce penetration as a percentage of total retail sales remains in Latin America. Pago, its payments platform, has successfully parlayed its payments dominance into very profitable ancillary revenue streams.

 

The bottom three contributors to returns were Atlassian (-18%), SVB Financial Group (-100%), and Signature Bank (-36%). Shares of critical collaboration software provider Atlassian had been resilient while many other software companies struggled. That changed during the fiscal year ended August 31, 2023. Macro headwinds challenged demand from the innovation economy that drives Atlassian’s growth. Atlassian’s slowdown was delayed later than most for two reasons: its products are critical, so they’re farther down the cut list, and because they’re relatively inexpensive. These are positive attributes, and on a longer-term view, the business in our view remains healthy. However, the stock was still carrying a premium valuation, and management continues to hire aggressively (while many other software firms are laying engineers off), which has investors nervous about a strategic misstep. We think the company is wise to invest in its advantages and the opportunities it sees (acknowledging this is a management team with a history of prudence and vision) and zig while others zag. Silicon Valley Bank (“SVB”), the bank subsidiary of SVB Financial Group, experienced a run on its deposits when the bank liquidated some of its Treasury securities at a discount and announced a capital raise. As can happen in periods of fear and contagion, the bank didn’t survive. It was taken into receivership on March 10, 2023 and its assets were sold off with the bulk being acquired by First Citizens Bank in late March. In this painful investing lesson, equity holders were essentially wiped out. Thankfully, our position in SVB Financial Group was small. Signature Bank shares sagged as investors shunned the banking industry, fearing there were more shoes to drop after SVB’s collapse. Signature Bank’s lending profile, ties to the crypto economy, and asset makeup put it squarely in the crosshairs. Thankfully, we exited our position and avoided much of the company’s collapse.

 

Motley Fool Mid-Cap Growth ETF

 

The Motley Fool Mid-Cap Growth ETF returned 8.58% during the fiscal year ended August 31, 2023, trailing its benchmark’s return of 13.00% for the same period. Cumulatively since inception, the Motley Fool Mid-Cap Growth ETF has returned 95.16% versus 138.44% returns for its benchmark over the same period.11

 

The Fund’s performance, relative to its benchmark, during the fiscal year ended August 31, 2023 was impacted by higher exposures to the Real Estate sector, which was weak, and the Industrials sector, which was strong. Performance was also driven by poor individual stock performance in the Financials and Information Technology Industries. Positive stock selection in the Health Care Industry was not enough to overcome these other forces.

 

The top three contributors to returns12 were Axon Enterprise (+82%), Watsco (+38%), and Markel Group (+24%). We detailed Axon’s stellar performance above, in the Motley Fool Global Opportunities ETF section. Watsco, the largest distributor of HVAC units and supplies in the US, continues to deliver strong execution and a steady outlook.

 

The market is waiting for margins to fall as residential replacement unit demand falls, inflation hits costs, and higher priced inventory flows through the financials. Our view is that, while these are realistic expectations, Watsco should have the firepower to keep creating value. We think there are enough offsetting positive factors (e.g., regulatory tailwinds for higher efficiency units, strong commercial demand, and efficiency efforts now that supply chains are normalizing) that Watsco can continue to hum along. Markel is a specialty insurer that has benefited from strong pricing in its insurance niches. Its conservative reserving enables it to navigate challenging periods and invest its float in stocks and private businesses, which was an additional benefit to profit and book value growth during the fiscal year. The three legs of success at Markel (prudent reserving, healthy underwriting, and strong investing) have all been on show lately.

 

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 Fund is the Russell Midcap Growth Total Return Index.

12

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

 

 

5

 

 

Motley Fool ASSET MANAGEMENT ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2023 (Unaudited)

 

The bottom three contributors to returns were Paylocity Holding (-17%), SBA Communications (-30%), and SVB Financial Group (-100%). Paylocity’s business continues to chug along and its payroll and human capital management software solutions are evolving to solve more time- and labor- intensive tasks. Its stock sold off alongside many higher-growth, richly valued software businesses during the fiscal year ended August 31, 2023 and also suffered from investors raising probabilities of a recession that would bring about lower employment, which is a key driver of results. Tower operator SBA Communications continues to see its shares languish. SBA faces moderating near-term growth as cell carriers lap peak 5G investments and debt costs rise on the back of higher rates. That is no surprise, but investors have focused on it, and it’s the current reality. We see SBA management aptly managing its balance sheet, prioritizing free cash flow for debt reduction over share repurchases, and being disciplined in new tower purchases. With a longer view, the value of SBA’s services to enable data consumption and connectivity continues to increase. We detailed SVB Financial Group’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 16.13% during the fiscal year ended August 31, 2023, besting its benchmark’s gain of 6.78% for the same period. Cumulatively since inception (almost five years!), the Motley Fool Small-Cap Growth ETF has returned 60.36% versus 36.53% returns for the benchmark over the same period.13

 

The Fund’s performance, relative to its benchmark, during the fiscal year ended August 31, 2023 was impacted overwhelmingly by stock selection. Stock selection in the Information Technology and Communication Services sectors were the largest detractors from return. However, stock selection in the Health Care and Industrials sectors more than offset these headwinds.

 

The top three contributors to returns14 were Axon Enterprise (+82%), Penumbra (+61%), and Leonardo DRS (+56%). We detailed Axon’s stellar performance above, in the Motley Fool Global Opportunities ETF section. Penumbra is a medical device company that continues to execute on its Lightning series of products related to aspirated blood clot removals. With additional products on the way, the company is demonstrating its products achieve valuable patient outcomes worthy of transitioning “watched” patients to “treated” patients. Penumbra looks to surpass $1 billion in revenue during 2023 as it makes progress on helping the 3 million or so patients that suffer from clinically significant blood clots. Leonardo DRS is a defense contractor that announced several large contract awards, including an April 2023 award valued over $1 billion to provide integrated electric propulsion components for the US Navy’s next generation Columbia-class submarine. The Columbia-class submarine will replace the Ohio-class, the first submarine of which was commissioned in the late 1970s. In June, Leonardo DRS was added to the Russell 2000 and Russell 3000 Indexes as part of the 2023 Russell index annual reconstitution. Leonardo DRS shares gained 34% in the quarter.

 

The bottom three contributors to returns were Cardlytics (-62%), Alarm.com Holdings (-12%), and Clarus (-52%). Cardlytics provides an advertising platform driven by unique access to debit and credit card data provided by its banking partner. The company and its stock have been hit from several angles. The broad slowdown in digital advertising as companies anticipate a recession clearly doesn’t help, but Cardlytics has also faced a more company-specific issue from a strategic rethink at Starbucks (one of their major advertisers) with the management change at that company. Cardlytics has also seen its founders leave the company, which is definitely something worthy of investor attention. The company is still unprofitable and many investors, including ourselves, have lost patience in the company’s promising platform (we exited our position in January). Competitive intensity in the smart home security industry and the perception of risk, overall, is rising for Alarm.com. Home security frenemy Vivint announced it would stop paying license fees to Alarm.com, immediately. Vivint has been paying those license fees for over a decade and Alarm.com is pursuing the legal actions necessary to collect, but the announcement of an unexpected $24 million, high margin hit to next-year’s results, sent shares lower. Vivint also announced it was being acquired by NRG, an energy business looking to beef up subscription revenue and deepen relationships with homeowners. Add on rising recession fears, inflation and supply chain challenges impacting its hardware profitability, and falling software valuations and Alarm.com’s stock has hit a rough patch. In our view, the business continues to perform well and its prospects are bright. Clarus is a holding company that buys and builds “super-fan” outdoor brands. Its best known asset is the rock climbing and mountaineering brand Black Diamond. In hindsight, perhaps we should have waited for a larger margin of safety with our initial purchase and subsequent small addition. While we believe the company’s strategy is sound and management is a good steward of its outdoor brands, the macro realities

 

13

Returns are for Net Asset Value, net of fees and expenses. Inception of the ETF was 10/29/2018. The benchmark is the Russell 2000 Growth Total Return Index.

14

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

 

6

 

 

 

Motley Fool ASSET MANAGEMENT ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2023 (Unaudited)

 

of falling consumer savings rates, full employment, input cost environment, and rising recession risks are expected to weigh on Clarus and other consumer discretionary businesses in the near term. The company has lowered guidance on several occasions and brought in new management to navigate its path forward.

 

PASSIVE ETF PERFORMANCE AND COMMENTARY

 

Motley Fool 100 Index ETF

 

The Motley Fool 100 Index ETF increased 22.71% during the fiscal year ended August 31, 2023. During the same period, the Motley Fool 100 Index, which the Motley Fool 100 Index ETF is designed to track, increased 23.37% and the S&P 500 Total Return Index increased 15.94%. Cumulatively since inception, the Motley Fool 100 Index ETF returned 112.33%. Over that period, the Motley Fool 100 Index returned 118.41% and the S&P 500 Index returned 74.36%.15

 

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 fiscal year ended August 31, 2023 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.16 The Motley Fool 100 Index has historically had, and continued through the fiscal year ended August 31, 2023 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 the Motley Fool 100 Index’s overall performance.

 

The top three contributors17 to the Motley Fool 100 Index ETF’s performance were NVIDIA (+227%), Microsoft (+27%) and Apple (+20%). These three companies had a combined average portfolio weight during the fiscal year of more than 28%. The bottom three contributors were CVS Health (-32%), The Walt Disney Company (-25%), and Tesla (-6%). These three companies had a combined average portfolio weight during the fiscal year of a bit over 5%.

 

Over the fiscal year ended August 31, 2023, nearly 1 in 3 holdings detracted from returns. However, the ETF’s large weighting in the largest market capitalization stocks and to the Information Technology and Communication Services sectors overcame this headwind and drove its outperformance versus the S&P 500 Index.

 

Motley Fool Next Index ETF

 

The Motley Fool Next Index ETF gained 5.21% during the fiscal year ended August 31, 2023. During the same period, the Motley Fool Next Index, which the Motley Fool Next Index ETF is designed to track, rose 5.76% and the Russell Midcap Growth Total Return Index increased 13.00%. Cumulatively since the ETF’s inception, the Motley Fool Next Index ETF returned -20.96%, the Motley Fool Next Index returned -20.39% and the Russell Midcap Growth Total Return Index returned -15.72%.18

 

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 fiscal year ended August 31, 2023 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.19

 

15

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 8/31/2023 was 22.63%, and since inception, was 14.42% annualized. Inception of the Motley Fool 100 Index ETF was 1/29/2018.

16

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/

17

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

18

Returns are for Net Asset Value, net of fees and expenses. The market price return for the Motley Fool Next Index ETF for the year ended 8/31/2023 was 5.39%, and since inception was -13.13% annualized. Inception of the Motley Fool Next Index ETF was 12/30/2021.

19

Motley Fool Asset Management, LLC is a subsidiary of The Motley Fool. The Motley Fool is responsible for independently managing the Motley Fool Next Index. To learn more about the index, see its website: https://foolindices.com/fool-next/methodology/

 

 

7

 

 

Motley Fool ASSET MANAGEMENT ETFS

Letter to Shareholders (Continued)

AUGUST 31, 2023 (Unaudited)

 

The top three contributors to the Motley Fool Next Index ETF’s performance were Fair Isaac (+101%), HubSpot (+62%) and Exact Sciences (+135%). These three companies had a combined average portfolio weight during the fiscal year of 3%. The bottom three contributors were Warner Brothers Discovery (-28%), EPAM Systems (-39%), and SVB Financial Group (-100%). These three companies had a combined average portfolio weight during the fiscal year just shy of 3%.

 

The Motley Fool Next Index had larger than benchmark exposure to the strongest two performing sectors, Consumer Discretionary and Industrials, which helped performance. However, stock selection in the Consumer Discretionary and Information Technology sectors overtook that tailwind and led to underperformance during the year ended August 31, 2023. The ETF reflected these relative positions and performance suffered accordingly.

 

Motley Fool Capital Efficiency 100 Index ETF

 

The Motley Fool Capital Efficiency 100 Index ETF rose 24.81% over the fiscal year ended August 31, 2023. During the same period, the Motley Fool Capital Efficiency 100 Index, which the Motley Fool Capital Efficiency 100 Index ETF is designed to track, increased 25.52% and the S&P 500 Total Return Index advanced 15.94%. Cumulatively since inception, the Motley Fool Capital Efficiency 100 Index ETF returned -2.45%. Over that period, the Motley Fool Capital Efficiency 100 Index returned -2.08% and the S&P 500 Index returned -1.82%.20

 

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 fiscal year ended August 31, 2023 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 US companies, measured by a company’s capital efficiency, that have been recommended The Motley Fool, LLC’s analysts and newsletters.21 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 contributors22 to the Motley Fool Capital Efficiency Index ETF’s performance were Meta Platforms (+82%), Broadcom (+90%) and Mastercard (+28%). These three companies had a combined average portfolio weight during the fiscal year of greater than 13%. The bottom three contributors were UnitedHealth Group (-7%), Advanced Micro Devices (-25%), and NVIDIA (-17%). These three companies had a combined average portfolio weight during the fiscal year of nearly 6%.

 

The Motley Fool Capital Efficiency 100 Index was overweight in the Information Technology sector, which performed well during the fiscal year ended August 31, 2023. However, the stock selection within the Information Technology sector detracted from performance. The ETF reflected these same phenomena.

 

20

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 year ended 8/31/2023 was 24.99%, and since inception, was -2.34% annualized. Inception of the Motley Fool Capital Efficiency 100 Index ETF was 12/30/2021.

21

Motley Fool Asset Management, LLC is a subsidiary of The Motley Fool. The Motley Fool is responsible for independently managing the Motley Fool Capital Efficiency 100 Index. To learn more about the index, see its website:
https://foolindices.com/fool-capital-efficiency/methodology/

22

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

 

8

 

 

 

Motley Fool ASSET MANAGEMENT ETFS

Letter to Shareholders (Concluded)

AUGUST 31, 2023 (Unaudited)

 

THANKFUL AND HOPEFULLY DESERVING

 

Quality ownership and patient capital are enablers of long-term success. But they’re so rare that they actually represent a competitive advantage. Yes, that’s a role you play in our joint long-term success. I hope that fact is empowering.

 

I’m not sure if Motley Fool Asset Management is an opera, a rock concert, or a Taylor Swift cover band, but we’re glad you’ve self-selected to be here. If you get the shareholders you deserve, we feel like we belong together.23

 

We remain thankful for and humbled by your trust.

 

Onward,

 

 

Bryan Hinmon
Chief Investment Officer, Motley Fool Asset Management, LLC

 

Disclosures

 

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 and may lose money, including 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.

 

This 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 this 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 any of the Funds. The opinions of the Adviser with respect to those securities may change at any time.

 

23

50,000 bonus points if you made it all the way to the end of this letter and picked up on the reference to Taylor Swift’s fun and delightfully innocent 2008 hit “You Belong With Me.”

 

 

9

 

 

Motley Fool GLOBAL OPPORTUNITIES ETF

Portfolio Characteristics

(Unaudited)

 

Average Annual Total Returns for the periods ended august 31, 2023

 

One
Year

Five
Years

Since
Inception

Inception
Date

Motley Fool Global Opportunities ETF (at NAV)*

11.24%

6.80%

8.56%

6/17/2014

Motley Fool Global Opportunities ETF (at Market Price)

11.19%

N/A

-7.93%

 

FTSE Global All Cap Net Tax Index**

13.96%

7.46%

7.51%(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. 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.

 

10

 

 

 

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, 2023. Portfolio holdings are subject to change without notice.

 

Top Ten Holdings

% OF NET
Assets

Mastercard, Inc., Class A

6.5%

Amazon.com, Inc.

5.8

ICON PLC

5.0

Watsco, Inc.

4.9

Alphabet, Inc., Class C

4.6

Axon Enterprise, Inc.

4.0

Waste Connections, Inc.

3.9

MercadoLibre, Inc.

3.6

International Container Terminal Services, Inc.

3.6

Atlassian Corp.

3.5

 

45.4%

 

 

11

 

 

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

20.4%

Information Technology

20.2

Consumer Discretionary

15.2

Communication Services

12.7

Financials

11.7

Health Care

7.3

Real Estate

7.0

Consumer Staples

2.3

 

96.8%

 

Top ten Countries

% OF Net
Assets

United States*

53.9%

Canada

7.8

Ireland

7.3

Argentina

3.6

Philippines

3.6

Spain

3.3

Taiwan

3.2

China

3.1

United Kingdom

3.0

Georgia

2.7

 

91.5%

 

*

As of the date of this report, the Fund had a holding of 2.7% in the U.S. Bank Money Market Deposit Account.

 

12

 

 

 

Motley Fool MID-CAP GROWTH ETF

Portfolio Characteristics

(Unaudited)

 

Average Annual Total Returns for the periods ended August 31, 2023

 

One
Year

Five
Years

Since
Inception

Inception
Date

Motley Fool Mid-Cap Growth ETF (at NAV)*

8.58%

3.70%

7.53%

6/17/2014

Motley Fool Mid-Cap Growth ETF (at Market Price)

8.65%

N/A

-8.77%

 

Russell MidCap® Growth Total Return Index**

13.00%

7.95%

9.90%(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. 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.

 

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.

 

 

13

 

 

Motley Fool MID-CAP GROWTH ETF

Portfolio Characteristics (Concluded)

(Unaudited)

 

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, 2023.Portfolio holdings are subject to change without notice.

 

Top ten Holdings

% OF Net
Assets

Axon Enterprise, Inc.

5.9%

Brown & Brown, Inc.

5.8

Watsco, Inc.

4.6

Broadridge Financial Solutions, Inc.

4.6

Markel Corp.

4.4

Tyler Technologies, Inc.

4.4

Fastenal Co.

4.4

SBA Communications Corp.

4.0

Paylocity Holding Corp.

3.9

Gentex Corp

3.8

 

45.8%

 

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

23.8%

Industrials

20.0

Financials

18.7

Health Care

13.1

Consumer Discretionary

11.9

Real Estate

9.2

Materials

2.3

 

99.0%

 

14

 

 

 

Motley Fool 100 Index ETF

Portfolio Characteristics

(Unaudited)

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED August 31, 2023

 

One
Year

Five
Years

Since
Inception

Inception
Date

Motley Fool 100 Index ETF (at NAV)

22.71%

13.96%

14.43%

1/29/2018

Motley Fool 100 Index ETF (at Market Price)

22.63%

13.91%

14.42%

 

Motley Fool 100 Index*

23.37%

14.55%

15.01%(1)

S&P 500© Total Return Index**

15.94%

11.12%

10.46%(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. 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 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.

 

 

15

 

 

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, 2023. Portfolio holdings are subject to change without notice.

 

Top TEN Holdings

% OF Net
Assets

Apple, Inc.

13.6%

Microsoft Corp.

11.3

Alphabet, Inc., Class C

8.0

Amazon.com, Inc.

6.5

NVIDIA Corp.

5.6

Tesla, Inc.

3.8

Berkshire Hathaway, Inc., Class B

3.6

Meta Platforms, Inc., Class A

3.5

Visa, Inc., Class A

2.3

Johnson & Johnson

2.1

 

60.3%

 

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

46.3%

Communication Services

14.8

Consumer Discretionary

14.8

Health Care

9.5

Financials

7.2

Industrials

3.4

Consumer Staples

1.4

Real Estate

1.1

Materials

0.6

Utilities

0.6

Energy

0.2

 

99.9%

 

16

 

 

 

MOTLEY FOOL SMALL-CAP GROWTH ETF

Portfolio Characteristics

(Unaudited)

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED August 31, 2023

 

One
Year

Three
Years

Since
Inception

Inception
Date

Motley Fool Small-Cap Growth ETF (at NAV)

16.13%

-0.98%

10.25%

10/29/2018

Motley Fool Small-Cap Growth ETF (at Market Price)

16.21%

-1.06%

10.25%

 

Russell 2000 Growth Total Return® Index*

6.78%

2.67%

6.65%(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.

 

 

17

 

 

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, 2023. Portfolio holdings are subject to change without notice.

 

Top TEN Holdings

% OF Net
Assets

Goosehead Insurance, Inc., Class A

4.8%

Alarm.com Holdings, Inc.

4.7

Q2 Holdings, Inc.

4.3

Live Oak Bancshares, Inc.

3.7

Smartsheet, Inc., Class A

3.6

Inari Medical, Inc.

3.5

Gentex Corp.

3.5

Howard Hughes Holdings, Inc.

3.4

Globus Medical, Inc., Class A

3.3

GXO Logistics, Inc.

3.1

 

37.9%

 

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

Health Care

23.8%

Industrials

21.1

Information Technology

16.7

Financials

11.0

Consumer Discretionary

8.3

Real Estate

6.0

Energy

2.9

Consumer Staples

1.7

Materials

0.9

 

92.4%

 

18

 

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Portfolio Characteristics

(Unaudited)

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED August 31, 2023

 

One
Year

Since
Inception

Inception
Date

Motley Fool Capital Efficiency 100 Index ETF (at NAV)

24.81%

-2.45%

12/30/2021

Motley Fool Captial Efficiency 100 Index ETF (at Market Price)

24.99%

-2.34%

 

Motley Fool Capital Efficiency 100 Index*

25.52%

-2.08%(1)

S&P 500© Total Return Index**

15.94%

-1.82%(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 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.

 

 

19

 

 

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, 2023. Portfolio holdings are subject to change without notice.

 

Top TEN Holdings

% OF Net
Assets

Alphabet, Inc., Class C

5.3%

Amazon.com, Inc.

5.3

Visa, Inc., Class A

5.2

Meta Platforms, Inc., Class A

5.1

Mastercard, Inc., Class A

5.1

UnitedHealth Group, Inc.

5.0

Apple, Inc.

4.9

Johnson & Johnson

4.8

Home Depot, Inc., (The)

4.7

Microsoft Corp.

4.6

 

50.0%

 

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

42.9%

Health Care

18.2

Communication Services

14.3

Consumer Discretionary

13.1

Industrials

5.2

Consumer Staples

3.7

Materials

1.7

Financials

0.5

 

99.6%

 

20

 

 

 

MOTLEY FOOL NEXT INDEX ETF

Portfolio Characteristics

(Unaudited)

 

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIODS ENDED August 31, 2023

 

One
Year

Since
Inception

Inception
Date

Motley Fool Next Index ETF (at NAV)

5.21%

-13.15%

12/30/2021

Motley Fool Next Index ETF (at Market Price)

5.39%

-13.13%

 

Motley Fool Next Index*

5.76%

-12.77%(1)

Russell Midcap® Growth Total Return Index**

13.00%

-9.74%(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 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.

 

 

21

 

 

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, 2023. Portfolio holdings are subject to change without notice.

 

Top TEN Holdings

% OF Net
Assets

Corning, Inc.

1.8%

Gartner, Inc.

1.8

HubSpot, Inc.

1.7

MongoDB, Inc.

1.7

Nasdaq, Inc.

1.7

Alnylam Pharmaceuticals, Inc.

1.6

Take-Two Interactive Software, Inc.

1.5

Tractor Supply Co.

1.5

Fair Isaac Corp.

1.4

McCormick & Co., Inc.

1.4

 

16.1%

 

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

35.6%

Consumer Discretionary

16.0

Industrials

13.3

Health Care

12.4

Financials

8.8

Communication Services

6.7

Consumer Staples

4.4

Real Estate

1.4

Materials

1.1

Energy

0.2

 

99.9%

 

 

22

 

 

 

Motley Fool Asset Management ETFs

Fund Expense Examples

AUGUST 31, 2023 (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, 2023 through August 31, 2023, 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.

 

 

 

23

 

 

Motley Fool Asset Management ETFs

Fund Expense Examples (Concluded)

AUGUST 31, 2023 (UNAUDITED)

 

 

 

Beginning
Account Value
March 1,
2023

   

Ending
Account Value
August 31,
2023

   

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     $ 1,104.50     $ 4.51     0.85%   10.45%

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     $ 1,086.00     $ 4.47     0.85%   8.60%

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     $ 1,263.80     $ 2.85     0.50%   26.38%

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     $ 1,098.20     $ 4.50     0.85%   9.82%

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     $ 1,242.30     $ 2.83     0.50%   24.23%

Hypothetical (5% return before expenses)

  1,000.00     1,022.68     2.55     0.50%   N/A  

Motley Fool Next Index ETF

                                       

Actual

  $ 1,000.00     $ 1,034.20     $ 2.56     0.50%   3.42%

Hypothetical (5% return before expenses)

  1,000.00     1,022.68     2.55     0.50%   N/A  

 

(1)

Expenses are equal to the Fund’s annualized expense ratio for the period March 1, 2023 through August 31, 2023, 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 six-month total investment return for the Fund.

 

24

 

 

 

Motley Fool global opportunities ETF

Schedule of Investments

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(NOTE 1)

 
                 

Common Stocks — 96.8%

               

Aerospace & Defense — 4.0%

               

Axon Enterprise, Inc. (United States)*

    81,690     $ 17,392,618  

Banks — 4.3%

               

Bank of Georgia Group PLC (Georgia)

    183,461       8,099,439  

HDFC Bank., Ltd., (India)ADR

    166,348       10,365,144  
              18,464,583  

Capital Markets — 4.8%

               

Brookfield Asset Management Ltd. (Canada)(a)ADR

    58,725       2,028,949  

Brookfield Corp. (Canada)

    234,854       8,010,870  

Georgia Capital PLC (Georgia)*

    282,828       3,482,547  

MSCI, Inc. (United States)

    13,020       7,077,932  
              20,600,298  

Commercial Services & Supplies — 3.9%

               

Waste Connections, Inc. (Canada)ADR

    122,408       16,768,672  

Diversified Telecommunication Services — 3.3%

               

Cellnex Telecom SA (Spain)(b)

    370,876       14,196,249  

Entertainment — 2.4%

               

Universal Music Group NV (Netherlands)

    418,580       10,389,495  

Equity Real Estate Investment Trusts (REITs) — 5.8%

               

American Tower Corp. (United States)

    35,592       6,453,541  

Equinix, Inc. (United States)

    15,800       12,345,804  

SBA Communications Corp. (United States)

    28,108       6,311,089  
              25,110,434  

Food & Staples Retailing — 2.3%

               

Costco Wholesale Corp. (United States)

    18,235       10,016,121  

Health Care Equipment & Supplies — 2.2%

               

Medtronic PLC (Ireland)ADR

    116,242       9,473,723  

Health Care Providers & Services 0.0%

               

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

    485,482        

Hotels, Restaurants & Leisure — 5.8%

               

Starbucks Corp. (United States)

    122,408       11,927,436  

Yum China Holdings, Inc. (China)

    244,319       13,117,487  
              25,044,923  

 

 

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

 

 

25

 

 

Motley Fool global opportunities ETF

Schedule of Investments (continued)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(NOTE 1)

 
                 

Common Stocks (continued)

               

Insurance — 2.6%

               

Aon PLC (United Kingdom)ADR

    34,060     $ 11,355,263  

Interactive Media & Services — 4.6%

               

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

    142,960       19,635,556  

Internet & Direct Marketing Retail — 9.4%

               

Amazon.com, Inc. (United States)*

    180,342       24,888,999  

MercadoLibre, Inc. (Argentina)(a)*

    11,363       15,594,127  
              40,483,126  

IT Services — 7.5%

               

Mastercard, Inc., Class A (United States)

    67,882       28,010,828  

PayPal Holdings, Inc. (United States)*

    69,420       4,339,444  
              32,350,272  

Life Sciences Tools & Services — 5.1%

               

ICON PLC (Ireland)*ADR

    83,528       21,712,268  

Machinery — 0.4%

               

FANUC Corp. (Japan)

    63,200       1,803,977  

Media — 2.3%

               

Comcast Corp., Class A (United States)

    185,466       8,672,390  

System1 Group PLC (United Kingdom)*

    508,946       1,334,598  
              10,006,988  

Real Estate Management & Development — 1.2%

               

Jones Lang LaSalle, Inc. (United States)*

    28,916       4,996,685  

Road & Rail — 1.7%

               

Canadian National Railway Co. (Canada)ADR(a)

    64,082       7,216,274  

Semiconductors & Semiconductor Equipment — 3.2%

               

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

    145,118       13,578,691  

Software — 9.5%

               

Atlassian Corp. (United States)*

    74,195       15,140,232  

Everbridge, Inc. (United States)*

    89,644       2,224,068  

Paycom Software, Inc. (United States)

    29,272       8,630,556  

Salesforce.com, Inc. (United States)*

    45,392       10,052,512  

Splunk, Inc. (United States)*

    41,080       4,981,362  
              41,028,730  

 

 

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

 

26

 

 

 

Motley Fool global opportunities ETF

Schedule of Investments (continued)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(NOTE 1)

 
                 

Common Stocks (continued)

               

Trading Companies & Distributors — 6.8%

               

Fastenal Co. (United States)

    144,662     $ 8,329,638  

Watsco, Inc. (United States)(a)

    57,424       20,933,919  
              29,263,557  

Transportation Infrastructure — 3.6%

               

International Container Terminal Services, Inc. (Philippines)

    4,173,619       15,273,293  

Wireless Telecommunication Services — 0.1%

               

Safaricom Ltd., PLC (Kenya)

    4,000,000       423,368  

Total Common Stocks (Cost $228,541,128)

            416,585,164  
                 

Investment Purchased with Proceeds from Securities Lending Collateral — 9.3%

               

Mount Vernon Liquid Assets Portfolio, LLC, 5.46%

    39,874,840       39,874,840  

Total Investment Purchased with Proceeds from Securities Lending Collateral (Cost $39,874,840)

            39,874,840  
                 

Short-Term Investment — 2.7%

               

U.S. Bank Money Market Deposit Account, 5.20% (United States)(d)

    11,407,238       11,407,238  

Total Short-Term Investment (Cost $11,407,238)

            11,407,238  
                 

Total Investments (Cost $279,823,206) — 108.8%

            467,867,242  

Liabilities in Excess of Other Assets — (8.8)%

            (37,901,258 )

NET ASSETS — 100.0%

          $ 429,965,984  

(Applicable to 15,718,873 shares outstanding)

               

 

*

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 $39,407,010.

 

(b)

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, 2023, total market value of Rule 144A securities is $14,196,249 and represents 3.3% of net assets.

 

(c)

Security has been valued at fair market value using significant unobservable inputs as determined in good faith by the Adviser, as valuation designee, under the oversight of The RBB Fund, Inc.’s Board of Directors. As of August 31, 2023, these securities amounted to $0 or 0.0% of net assets.

 

(d)

The rate shown is as of August 31, 2023.

 

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

 

 

27

 

 

Motley Fool mid-cap growth ETF

Schedule of Investments

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks — 99.0%

               

Aerospace & Defense — 6.0%

               

Axon Enterprise, Inc. (United States)*

    54,301     $ 11,561,226  

Air Freight & Logistics — 2.5%

               

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

    75,937       4,857,690  

Auto Components — 6.5%

               

Gentex Corp. (United States)

    227,791       7,439,654  

LCI Industries (United States)(a)

    42,114       5,276,042  
              12,715,696  

Automobiles — 3.0%

               

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

    55,100       5,775,582  

Biotechnology — 4.0%

               

BioMarin Pharmaceutical, Inc. (United States)*

    42,000       3,837,960  

Ultragenyx Pharmaceutical, Inc. (United States)(a)*

    104,484       3,843,966  
              7,681,926  

Capital Markets — 6.6%

               

Morningstar, Inc. (United States)

    15,520       3,611,038  

MSCI, Inc. (United States)

    5,660       3,076,889  

StoneX Group, Inc. (United States)*

    65,738       6,171,483  
              12,859,410  

Chemicals — 2.3%

               

Eastman Chemical Co. (United States)

    52,942       4,500,599  

Equity Real Estate Investment Trusts (REITs) — 5.9%

               

Alexandria Real Estate Equities, Inc. (United States)

    32,896       3,827,121  

SBA Communications Corp. (United States)

    34,200       7,678,926  
              11,506,047  

Ground Transportation — 2.6%

               

RXO, Inc. (United States)*

    278,485       5,035,009  

Health Care Equipment & Supplies — 3.6%

               

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

    18,922       7,000,951  

Health Care Providers & Services — 2.9%

               

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

    84,658       5,718,648  

 

 

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

 

28

 

 

 

Motley Fool mid-cap growth ETF

Schedule of Investments (Continued)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks (continued)

               

Insurance — 12.0%

               

Brown & Brown, Inc. (United States)

    151,852     $ 11,252,233  

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

    49,954       3,489,786  

Markel Corp. (United States)*

    5,848       8,648,724  
              23,390,743  

IT Services — 4.6%

               

Broadridge Financial Solutions, Inc. (United States)

    48,297       8,993,384  

Life Sciences Tools & Services — 2.6%

               

Waters Corp. (United States)*

    17,884       5,021,827  

Real Estate Management & Development — 3.3%

               

Jones Lang LaSalle, Inc. (United States)*

    36,878       6,372,518  

Software — 19.2%

               

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

    103,973       6,089,699  

ANSYS, Inc. (United States)*

    11,704       3,732,054  

Paycom Software, Inc. (United States)

    17,032       5,021,715  

Paylocity Holding Corp. (United States)*

    37,441       7,506,921  

Splunk, Inc. (United States)*

    51,682       6,266,960  

Tyler Technologies, Inc. (United States)*

    21,600       8,606,089  
              37,223,438  

Specialty Retail — 2.4%

               

Tractor Supply Co. (United States)(a)

    21,292       4,652,302  

Trading Companies & Distributors — 9.0%

               

Fastenal Co. (United States)

    146,922       8,459,769  

Watsco, Inc. (United States)(a)

    24,708       9,007,301  
              17,467,070  

Total Common Stocks (Cost $108,732,548)

            192,334,066  
                 

Investment Purchased with Proceeds from Securities Lending Collateral — 13.0%

               

Mount Vernon Liquid Assets Portfolio, LLC, 5.46%

    25,256,724       25,256,724  

Total Investment Purchased with Proceeds from Securities Lending Collateral (Cost $25,256,724)

            25,256,724  
                 

 

 

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

 

 

29

 

 

Motley Fool mid-cap growth ETF

Schedule of Investments (CONCLUDED)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Short-Term Investment — 1.0%

               

U.S. Bank Money Market Deposit Account, 5.20% (United States) (b)

    1,999,916     $ 1,999,916  

Total Short-Term Investment (Cost $1,999,916)

            1,999,916  
                 

Total Investments (Cost $135,989,188) — 113.0%

            219,590,706  

Liabilities in Excess of Other Assets — (13.0)%

            (25,244,969 )

NET ASSETS — 100.0%

          $ 194,345,737  

(Applicable to 7,892,511 shares outstanding)

               

 

*

Non-income producing security.

 

(a)

All or a portion of the security is on loan. At August 31, 2023, the market value of securities on loan was $24,600,703.

 

(b)

The rate shown is as of August 31, 2023.

 

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

 

30

 

 

 

Motley Fool 100 Index ETF

Schedule of Investments

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks — 99.9%

               

Aerospace & Defense — 0.2%

               

TransDigm Group, Inc. (United States)*

    1,372     $ 1,240,082  

Air Freight & Logistics — 0.3%

               

FedEx Corp. (United States)

    6,377       1,664,525  

Automobiles — 3.8%

               

Tesla, Inc. (United States)*

    80,275       20,717,372  

Banks — 2.0%

               

JPMorgan Chase & Co. (United States)

    74,521       10,904,658  

Beverages — 0.3%

               

Monster Beverage Corp. (United States)*

    26,561       1,524,867  

Biotechnology — 2.0%

               

Amgen, Inc. (United States)

    13,641       3,496,734  

Biogen, Inc. (United States)*

    3,642       973,725  

Gilead Sciences, Inc. (United States)

    31,633       2,419,292  

Moderna, Inc. (United States)*

    9,658       1,092,030  

Seagen, Inc. (United States)*

    4,726       973,887  

Vertex Pharmaceuticals, Inc. (United States)*

    6,525       2,272,919  
              11,228,587  

Broadline Retail — 0.2%

               

Coupang, Inc. (United States)*

    45,142       856,795  

Capital Markets — 1.4%

               

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

    46,233       2,734,682  

CME Group, Inc. (United States)

    9,121       1,848,644  

Intercontinental Exchange, Inc. (United States)

    14,182       1,673,334  

Moody’s Corp. (United States)

    4,630       1,559,384  
              7,816,044  

Chemicals — 0.6%

               

Ecolab, Inc. (United States)

    7,204       1,324,167  

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

    6,535       1,775,690  
              3,099,857  

Commercial Services & Supplies — 0.7%

               

Cintas Corp. (United States)

    2,552       1,286,642  

Copart, Inc. (United States)*

    24,156       1,082,913  

 

 

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

 

 

31

 

 

Motley Fool 100 Index ETF

Schedule of Investments (continued)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks (continued)

Commercial Services & Supplies (continued)

Waste Management, Inc. (United States)

    10,308     $ 1,616,088  
              3,985,643  

Communications Equipment — 0.3%

               

Arista Networks, Inc. (United States)*

    7,798       1,522,404  

Diversified Financial Services — 3.6%

               

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

    55,366       19,942,833  

Electric Utilities — 0.6%

               

NextEra Energy, Inc. (United States)

    51,357       3,430,648  

Entertainment — 2.3%

               

Activision Blizzard, Inc. (United States)

    19,931       1,833,453  

Electronic Arts, Inc. (United States)

    6,919       830,142  

Netflix, Inc. (United States)*

    11,272       4,888,441  

ROBLOX Corp., Class A (United States)*

    15,490       438,212  

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

    46,361       3,879,488  

Warner Bros Discovery, Inc. (United States)(a)*

    61,806       812,131  
              12,681,867  

Equity Real Estate Investment Trusts (REITs) — 1.1%

               

American Tower Corp. (United States)

    11,817       2,142,658  

Crown Castle International Corp. (United States)

    10,981       1,103,591  

Digital Realty Trust, Inc. (United States)

    7,362       969,723  

Equinix, Inc. (United States)

    2,357       1,841,713  
              6,057,685  

Food & Staples Retailing — 1.1%

               

Costco Wholesale Corp. (United States)

    11,239       6,173,358  

Health Care Equipment & Supplies — 1.5%

               

Align Technology, Inc. (United States)*

    1,919       710,299  

Becton Dickinson and Co. (United States)

    7,188       2,008,687  

Dexcom, Inc. (United States)*

    9,819       991,523  

IDEXX Laboratories, Inc. (United States)*

    2,074       1,060,664  

Intuitive Surgical, Inc. (United States)*

    8,867       2,772,534  

ResMed, Inc. (United States)

    3,730       595,271  
              8,138,978  

 

 

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

 

32

 

 

 

Motley Fool 100 Index ETF

Schedule of Investments (continued)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks (continued)

Health Care Providers & Services — 3.0%

               

CVS Health Corp. (United States)

    32,525     $ 2,119,654  

HCA Healthcare, Inc. (United States)

    6,963       1,930,840  

McKesson Corp. (United States)

    3,412       1,406,836  

UnitedHealth Group, Inc. (United States)

    23,610       11,252,054  
              16,709,384  

Health Care Technology — 0.2%

               

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

    4,043       843,774  

Hotels, Restaurants & Leisure — 2.0%

               

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

    15,989       2,103,353  

Booking Holdings, Inc. (United States)*

    934       2,900,098  

Chipotle Mexican Grill, Inc. (United States)*

    689       1,327,455  

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

    7,690       1,564,992  

Starbucks Corp. (United States)

    29,097       2,835,212  
              10,731,110  

Industrial Conglomerates — 0.5%

               

3M Co. (United States)

    13,987       1,491,993  

Roper Technologies, Inc. (United States)

    2,701       1,347,961  
              2,839,954  

Insurance — 0.2%

               

Aflac, Inc. (United States)(a)

    15,353       1,144,873  

Interactive Media & Services — 11.5%

               

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

    320,845       44,068,061  

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

    64,907       19,205,332  
              63,273,393  

Internet & Direct Marketing Retail — 6.6%

               

Amazon.com, Inc. (United States)*

    259,870       35,864,659  

eBay, Inc. (United States)

    13,549       606,724  
              36,471,383  

IT Services — 5.1%

               

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

    8,394       545,862  

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

    12,798       916,465  

Mastercard, Inc., Class A (United States)

    24,038       9,919,040  

 

 

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

 

 

33

 

 

Motley Fool 100 Index ETF

Schedule of Investments (continued)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks (continued)

IT Services (continued)

PayPal Holdings, Inc. (United States)*

    28,330     $ 1,770,908  

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

    8,251       1,294,169  

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

    15,437       889,943  

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

    52,003       12,776,097  
              28,112,484  

Life Sciences Tools & Services — 0.1%

               

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

    3,992       659,558  

Machinery — 0.2%

               

Cummins, Inc. (United States)

    3,566       820,323  

Media — 0.2%

               

Trade Desk, Inc., (The) Class A (United States)(a)*

    12,382       990,931  

Oil, Gas & Consumable Fuels — 0.2%

               

Kinder Morgan, Inc. (United States)

    56,927       980,283  

Pharmaceuticals — 2.7%

               

Bristol-Myers Squibb Co. (United States)

    53,795       3,316,462  

Johnson & Johnson (United States)

    71,351       11,536,030  
              14,852,492  

Professional Services — 0.2%

               

CoStar Group, Inc. (United States)*

    10,349       848,515  

Road & Rail — 1.3%

               

Old Dominion Freight Line, Inc. (United States)

    2,774       1,185,524  

Uber Technologies, Inc. (United States)*

    51,368       2,426,111  

Union Pacific Corp. (United States)

    15,480       3,414,424  
              7,026,059  

Semiconductors & Semiconductor Equipment — 8.6%

               

Advanced Micro Devices, Inc. (United States)*

    40,867       4,320,459  

Broadcom, Inc. (United States)

    10,448       9,642,355  

Lam Research Corp. (United States)

    3,394       2,383,945  

NVIDIA Corp. (United States)

    62,638       30,914,985  
              47,261,744  

 

 

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

 

34

 

 

 

Motley Fool 100 Index ETF

Schedule of Investments (continued)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks (continued)

Software — 18.7%

               

Adobe Systems, Inc. (United States)*

    11,642     $ 6,511,836  

Autodesk, Inc. (United States)*

    5,416       1,202,027  

Cadence Design Systems, Inc. (United States)*

    6,918       1,663,364  

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

    6,005       978,995  

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

    8,155       786,794  

Fortinet, Inc. (United States)*

    19,908       1,198,661  

Intuit, Inc. (United States)

    7,094       3,843,600  

Microsoft Corp. (United States)

    188,714       61,852,901  

Oracle Corp. (United States)

    68,512       8,248,160  

Palo Alto Networks, Inc. (United States)*

    7,740       1,883,142  

Salesforce.com, Inc. (United States)*

    24,724       5,475,377  

ServiceNow, Inc. (United States)*

    5,145       3,029,530  

Synopsys, Inc. (United States)*

    3,851       1,767,185  

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

    10,902       1,840,040  

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

    6,593       1,611,989  

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

    7,543       535,778  

Zscaler, Inc. (United States)*

    3,669       572,546  
              103,001,925  

Specialty Retail — 1.5%

               

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

    25,511       8,426,283  

Technology Hardware, Storage & Peripherals — 13.6%

               

Apple, Inc. (United States)

    398,908       74,942,846  

Textiles, Apparel & Luxury Goods — 0.7%

               

NIKE, Inc., Class B (United States)

    38,959       3,962,520  

Wireless Telecommunication Services — 0.8%

               

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

    30,468       4,151,265  

Total Common Stocks (Cost $375,727,605)

            549,037,302  
                 

Right — 0.0%

               

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

    8,565       20,813  

Total Rights (Cost $2,161)

            20,813  
                 

 

 

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

 

 

35

 

 

Motley Fool 100 Index ETF

Schedule of Investments (Concluded)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Investment Purchased with Proceeds from Securities Lending Collateral — 2.8%

               

Mount Vernon Liquid Assets Portfolio, LLC, 5.46%

    15,466,606     $ 15,466,606  

Total Investment Purchased with Proceeds from Securities Lending Collateral (Cost $15,466,606)

            15,466,606  
                 

Short-Term Investment — 0.1%

               

U.S. Bank Money Market Deposit Account, 5.20% (United States)(c)

    284,182       284,182  

Total Short-Term Investment (Cost $284,182)

            284,182  
                 

Total Investments (Cost $391,480,554) — 102.8%

            564,808,903  

Liabilities in Excess of Other Assets — (2.8)%

            (15,285,939 )

NET ASSETS — 100.0%

          $ 549,522,964  

(Applicable to 13,225,000 shares outstanding)

               

 

*

Non-income producing security.

 

(a)

All or a portion of the security is on loan. At August 31, 2023, the market value of securities on loan was $15,126,010.

 

(b)

Security has been valued at fair market value using significant unobservable inputs as determined in good faith by the Adviser, as valuation designee, under the oversight of The RBB Fund, Inc.’s Board of Directors. As of August 31, 2023, these securities amounted to $20,813 or 0.0% of net assets.

 

(c)

The rate shown is as of August 31, 2023.

 

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

 

36

 

 

 

MOTLEY FOOL Small-Cap Growth ETF

Schedule of Investments

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks — 92.4%

               

Aerospace & Defense — 5.8%

               

Axon Enterprise, Inc. (United States)*

    9,801     $ 2,086,731  

Leonardo DRS, Inc. (United States)(a)*

    123,296       2,110,827  
              4,197,558  

Air Freight & Logistics — 3.1%

               

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

    35,400       2,264,538  

Auto Components — 5.6%

               

Fox Factory Holding Corp. (United States)(a)*

    13,656       1,513,221  

Gentex Corp. (United States)

    78,448       2,562,112  
              4,075,333  

Banks — 3.7%

               

Live Oak Bancshares, Inc. (United States)(a)

    83,185       2,690,203  

Biotechnology — 4.6%

               

PTC Therapeutics, Inc. (United States)*

    39,000       1,540,500  

Ultragenyx Pharmaceutical, Inc. (United States)(a)*

    50,117       1,843,804  
              3,384,304  

Building Products — 1.6%

               

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

    15,979       1,140,421  

Capital Markets — 2.5%

               

StoneX Group, Inc. (United States)*

    19,476       1,828,407  

Chemicals — 0.9%

               

Perimeter Solutions SA (Luxembourg)(a)*ADR

    114,795       678,438  

Electronic Equipment, Instruments & Components — 1.0%

               

IPG Photonics Corp. (United States)*

    7,000       758,520  

Equity Real Estate Investment Trusts (REITs) — 2.7%

               

STAG Industrial, Inc. (United States)(a)

    53,143       1,941,314  

Ground Transportation — 3.0%

               

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

    119,208       2,155,281  

Health Care Equipment & Supplies — 13.6%

               

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

    44,198       2,391,112  

Inari Medical, Inc. (United States)(a)*

    38,674       2,576,462  

Mesa Laboratories, Inc. (United States)

    7,700       1,103,872  

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

    6,285       1,662,382  

 

 

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

 

 

37

 

 

MOTLEY FOOL Small-Cap Growth ETF

Schedule of Investments (CONTINUED)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks (continued)

Health Care Equipment & Supplies (continued)

               

Shockwave Medical, Inc. (United States)*

    3,500     $ 771,365  

UFP Technologies, Inc. (United States)(a)*

    8,000       1,405,680  
              9,910,873  

Health Care Providers & Services — 3.1%

               

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

    33,166       2,240,363  

Health Care Technology — 2.4%

               

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

    44,555       720,009  

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

    28,547       1,053,099  
              1,773,108  

Insurance — 4.8%

               

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

    50,273       3,512,072  

Leisure Products — 2.7%

               

Clarus Corp. (United States)(a)

    185,571       1,334,255  

Topgolf Callaway Brands Corp. (United States)*

    34,654       604,366  
              1,938,621  

Machinery — 2.6%

               

John Bean Technologies Corp. (United States)

    17,486       1,921,886  

Oil, Gas & Consumable Fuels — 2.9%

               

Northern Oil and Gas, Inc. (United States)(a)

    50,207       2,100,159  

Personal Care Products — 1.7%

               

BellRing Brands, Inc. (United States)*

    30,000       1,245,000  

Real Estate Management & Development — 3.4%

               

Howard Hughes Holdings, Inc. (United States)*

    31,396       2,469,295  

Road & Rail — 2.0%

               

Landstar System, Inc. (United States)

    7,760       1,472,926  

Software — 15.6%

               

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

    58,352       3,417,677  

Everbridge, Inc. (United States)*

    40,546       1,005,946  

Paylocity Holding Corp. (United States)*

    6,143       1,231,672  

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

    90,656       3,119,473  

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

    62,351       2,601,907  
              11,376,675  

 

 

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

 

38

 

 

 

MOTLEY FOOL Small-Cap Growth ETF

Schedule of Investments (Concluded)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks (continued)

Trading Companies & Distributors — 3.1%

               

Watsco, Inc. (United States)(a)

    6,190     $ 2,256,565  

Total Common Stocks (Cost $74,095,767)

            67,331,860  
                 

Investment Purchased with Proceeds from Securities Lending Collateral —42.5%

               

Mount Vernon Liquid Assets Portfolio, LLC, 5.46%

    30,954,920       30,954,920  

Total Investment Purchased with Proceeds from Securities Lending Collateral (Cost $30,954,920)

            30,954,920  
                 

Short-Term Investment — 9.7%

               

U.S. Bank Money Market Deposit Account, 5.20% (United States)(b)

    7,067,833       7,067,833  

Total Short-Term Investment (Cost $7,067,833)

            7,067,833  
                 

Total Investments (Cost $112,118,520) — 144.6%

            105,354,613  

Liabilities in Excess of Other Assets — (44.6)%

            (32,499,421 )

NET ASSETS — 100.0%

          $ 72,855,192  

(Applicable to 2,500,000 shares outstanding)

               

 

*

Non-income producing security.

 

ADR — American Depositary Receipt

 

(a)

All or a portion of the security is on loan. At August 31, 2023, the market value of securities on loan was $30,076,672.

 

(b)

The rate shown is as of August 31, 2023.

 

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

 

 

39

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Schedule of Investments

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks — 99.6%

               

Air Freight & Logistics — 0.1%

               

GXO Logistics, Inc. (United States)*

    258     $ 16,504  

Beverages — 0.7%

               

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

    30       10,963  

Monster Beverage Corp. (United States)*

    2,660       152,711  
              163,674  

Biotechnology — 4.2%

               

Amgen, Inc. (United States)

    1,433       367,335  

Biogen, Inc. (United States)*

    302       80,743  

Gilead Sciences, Inc. (United States)

    3,269       250,013  

Neurocrine Biosciences, Inc. (United States)*

    285       31,034  

Vertex Pharmaceuticals, Inc. (United States)*

    611       212,836  
              941,961  

Capital Markets — 0.4%

               

Cboe Global Markets, Inc. (United States)

    246       36,829  

Nasdaq, Inc. (United States)

    1,100       57,728  

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

    74       5,845  
              100,402  

Chemicals — 1.7%

               

Balchem Corp. (United States)

    74       10,397  

Ecolab, Inc. (United States)

    683       125,542  

RPM International, Inc. (United States)

    368       36,704  

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

    800       217,376  
              390,019  

Commercial Services & Supplies — 2.0%

               

Cintas Corp. (United States)

    319       160,830  

Copart, Inc. (United States)*

    2,068       92,708  

Rollins, Inc. (United States)

    1,246       49,304  

Waste Management, Inc. (United States)

    958       150,195  
              453,037  

Communications Equipment — 0.7%

               

Arista Networks, Inc. (United States)*

    731       142,713  

 

 

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

 

40

 

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Schedule of Investments (Continued)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks (continued)

Communications Equipment (continued)

Ubiquiti, Inc. (United States)

    139     $ 24,329  
              167,042  

Distributors — 0.2%

               

LKQ Corp. (United States)

    761       39,975  

Electronic Equipment, Instruments & Components — 0.2%

               

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

    135       37,126  

Entertainment — 3.2%

               

Activision Blizzard, Inc. (United States)

    1,716       157,855  

Electronic Arts, Inc. (United States)

    676       81,106  

Netflix, Inc. (United States)*

    1,074       465,772  

World Wrestling Entertainment, Inc., Class A (United States)

    182       17,572  
              722,305  

Food & Staples Retailing — 2.9%

               

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

    116       28,352  

Costco Wholesale Corp. (United States)

    1,130       620,686  
              649,038  

Food Products — 0.1%

               

Darling Ingredients, Inc. (United States)*

    333       20,566  

Ground Transportation — 0.0%

               

RXO, Inc. (United States)*

    289       5,225  

Health Care Equipment & Supplies — 2.3%

               

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

    235       12,714  

IDEXX Laboratories, Inc. (United States)*

    317       162,117  

Insulet Corp. (United States)*

    161       30,865  

Intuitive Surgical, Inc. (United States)*

    805       251,707  

ResMed, Inc. (United States)

    413       65,911  
              523,314  

Health Care Providers & Services — 6.6%

               

HCA Healthcare, Inc. (United States)

    817       226,554  

McKesson Corp. (United States)

    319       131,530  

UnitedHealth Group, Inc. (United States)

    2,352       1,120,916  
              1,479,000  

 

 

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

 

 

41

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Schedule of Investments (Continued)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks (continued)

Health Care Technology — 0.4%

               

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

    395     $ 82,437  

Household Durables — 0.3%

               

Meritage Homes Corp. (United States)

    86       11,957  

NVR, Inc. (United States)*

    8       51,019  
              62,976  

Industrial Conglomerates — 0.6%

               

3M Co. (United States)

    1,207       128,751  

Interactive Media & Services — 10.6%

               

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

    8,706       1,195,769  

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

    3,844       1,137,401  

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

    1,777       48,850  
              2,382,020  

Internet & Direct Marketing Retail — 5.6%

               

Amazon.com, Inc. (United States)*

    8,608       1,187,990  

eBay, Inc. (United States)

    1,351       60,498  

Etsy, Inc. (United States)*

    321       23,616  
              1,272,104  

IT Services — 11.5%

               

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

    1,424       101,973  

EPAM Systems, Inc. (United States)*

    141       36,518  

Gartner, Inc. (United States)*

    243       84,972  

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

    436       31,614  

Jack Henry & Associates, Inc. (United States)

    183       28,691  

Mastercard, Inc., Class A (United States)

    2,753       1,135,998  

Visa, Inc., Class A (United States)

    4,712       1,157,644  
              2,577,410  

Machinery — 0.3%

               

Cummins, Inc. (United States)

    301       69,242  

Tennant Co. (United States)

    45       3,709  
              72,951  

Media — 0.5%

               

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

    383       16,955  

 

 

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, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks (continued)

Media (continued)

Trade Desk, Inc., (The) Class A (United States)*

    1,116     $ 89,313  
              106,268  

Pharmaceuticals — 4.8%

               

Johnson & Johnson (United States)

    6,618       1,069,998  

Professional Services — 0.0%

               

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

    217       2,148  

Upwork, Inc. (United States)*

    276       4,088  
              6,236  

Road & Rail — 2.0%

               

Old Dominion Freight Line, Inc. (United States)

    303       129,493  

Union Pacific Corp. (United States)

    1,430       315,415  
              444,908  

Semiconductors & Semiconductor Equipment — 5.5%

               

Broadcom, Inc. (United States)

    1,007       929,350  

Cirrus Logic, Inc. (United States)*

    137       11,239  

Impinj, Inc. (United States)*

    64       4,260  

Lam Research Corp. (United States)

    378       265,507  

Universal Display Corp. (United States)

    108       17,556  
              1,227,912  

Software — 20.1%

               

Adobe Systems, Inc. (United States)*

    1,485       830,620  

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

    165       4,871  

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

    78       15,036  

Autodesk, Inc. (United States)*

    715       158,687  

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

    345       9,136  

Cadence Design Systems, Inc. (United States)*

    801       192,592  

Fair Isaac Corp. (United States)*

    85       76,890  

Fortinet, Inc. (United States)*

    2,431       146,371  

HubSpot, Inc. (United States)*

    132       72,141  

Microsoft Corp. (United States)

    3,156       1,034,411  

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

    659       20,495  

Oracle Corp. (United States)

    7,029       846,221  

Palo Alto Networks, Inc. (United States)*

    728       177,122  

Pegasystems, Inc. (United States)

    193       9,584  

 

 

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, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks (continued)

Software (continued)

ServiceNow, Inc. (United States)*

    616     $ 362,720  

Synopsys, Inc. (United States)*

    452       207,419  

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

    1,032       174,182  

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

    713       174,330  
              4,512,828  

Specialty Retail — 5.2%

               

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

    99       2,448  

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

    991       23,764  

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

    3,206       1,058,942  

Ulta Beauty, Inc. (United States)*

    139       57,689  

Williams-Sonoma, Inc. (United States)

    165       23,298  

Winmark Corp. (United States)

    20       7,611  
              1,173,752  

Technology Hardware, Storage & Peripherals — 5.0%

               

Apple, Inc. (United States)

    5,841       1,097,349  

Pure Storage, Inc. (United States)*

    752       27,516  
              1,124,865  

Textiles, Apparel & Luxury Goods — 1.7%

               

NIKE, Inc., Class B (United States)

    3,676       373,886  

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

    1,222       9,336  
              383,222  

Thrifts & Mortgage Finance — 0.0%

               

Walker & Dunlop, Inc. (United States)

    65       5,547  

Trading Companies & Distributors — 0.2%

               

Watsco, Inc. (United States)

    107       39,007  

Total Common Stocks (Cost $19,387,528)

            22,382,380  
                 

 

 

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

 

44

 

 

 

MOTLEY FOOL CAPITAL EFFICIENCY 100 INDEX ETF

Schedule of Investments (Concluded)

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Short-Term Investment — 0.3%

               

U.S. Bank Money Market Deposit Account, 5.20% (United States)(a)

    65,956     $ 65,956  

Total Short-Term Investment (Cost $65,956)

            65,956  
                 

Total Investments (Cost $19,453,484) — 99.9%

            22,448,336  

Other Assets in Excess of Liabilities — 0.1%

            12,136  

NET ASSETS — 100.0%

          $ 22,460,472  

(Applicable to 1,175,000 shares outstanding)

               

 

*

Non-income producing security.

 

(a)

The rate shown is as of August 31, 2023.

 

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

 

 

45

 

 

MOTLEY FOOL next index ETF

Schedule of Investments

AUGUST 31, 2023

 

 

 

Number of
Shares

   

Value
(Note 1)

 
                 

Common Stocks — 99.9%

               

Aerospace & Defense — 3.5%

               

AeroVironment, Inc. (United States)*

    469     $ 45,507  

Axon Enterprise, Inc. (United States)*

    1,382       294,242  

HEICO Corp. (United States)

    2,253       380,104  

Textron, Inc. (United States)

    3,773       293,200  
              1,013,053  

Air Freight & Logistics — 0.5%

               

GXO Logistics, Inc. (United States)*

    2,224       142,269  

Airlines — 0.5%

               

Alaska Air Group, Inc. (United States)*

    2,392       100,392  

Hawaiian Holdings, Inc. (United States)*

    888       7,619  

JetBlue Airways Corp. (United States)*

    6,135       36,319  
              144,330  

Auto Components — 0.6%

               

BorgWarner, Inc. (United States)

    4,384       178,648  

Automobile Components — 0.1%

               

Phinia, Inc. (United States)*

    877       24,381  

Banks — 0.5%

               

Axos Financial, Inc. (United States)*

    1,105       47,614  

Western Alliance Bancorp (United States)

    2,031       101,570  
              149,184  

Beverages — 1.2%

               

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

    227       82,953  

Celsius Holdings, Inc. (United States)*

    1,436       281,513  
              364,466  

Biotechnology — 5.4%

               

2seventy bio, Inc. (United States)*

    939       4,873  

Alnylam Pharmaceuticals, Inc. (United States)*

    2,329       460,723  

AnaptysBio, Inc. (United States)*

    521       10,253  

BioMarin Pharmaceutical, Inc. (United States)*

    3,511       320,835  

Bluebird Bio, Inc. (United States)*

    1,991       7,506  

Editas Medicine, Inc. (United States)*

    1,457       12,982  

Emergent BioSolutions, Inc. (United States)*

    916       4,296  

Exact Sciences Corp. (United States)*

    3,376       282,470