UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number : 811-21836
ONEFUND Trust
(Exact name of registrant as specified in charter)
200 2nd Ave. South #737
St. Petersburg, FL 33701
(Address of principal executive offices) (Zip code)
Michael G. Willis
200 2nd Ave. South #737
St. Petersburg, FL33701
(Name and address of agent for service)
Registrant’s telephone number, including area code: 1-808-600-5366
Date of fiscal year end: March 31
Date of reporting period: March 31, 2024
Item 1. Reports to Stockholders.
(a)
| Shareholder Letter | 1 |
| | |
| Investment Results | 2 |
| | |
| Portfolio Illustration | 4 |
| | |
| Schedule of Investments | 6 |
| | |
| Statement of Assets and Liabilities | 12 |
| | |
| Statement of Operations | 13 |
| | |
| Statements of Changes in Net Assets | 14 |
| | |
| Financial Highlights | 15 |
| | |
| Notes to Financial Statements | 16 |
| | |
| Report of Independent Registered Public Accounting Firm | 21 |
| | |
| Disclosure Regarding Approval of Advisory Agreement | 22 |
| | |
| Summary of Fund Expenses | 23 |
| | |
| Additional Information | 24 |
| | |
| Trustees and Officers | 25 |
| | |
| Privacy Policy | 27 |
| ONEFUND S&P 500® | Shareholder Letter |
| | March 31, 2024 (Unaudited) |
| | |
Dear Shareholders,
Discussion of the Fund:
The ONEFUND S&P 500® (“INDEX” or the “Fund”) is a “no-load” index fund with no 12b-1 fee. The Fund’s ticker symbol is INDEX. The Fund’s portfolio holds approximately 500 of the largest publicly traded companies on Wall Street, as selected by Standard & Poor’s. This puts INDEX in the “Large Cap Blend” category.
As of March 31, 2024, INDEX seeks to replicate the total return of the S&P 500® Index before fees and expenses. The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities. The S&P 500® Index includes 500 leading companies and covers approximately 80% of available market capitalization.
Discussion of Fund Performance:
During the twelve months ended March 31, 2024, INDEX returned +18.48% while the S&P 500® Index grew by +29.88%. The performance of INDEX relative to the S&P 500® Index showed a large tracking error due primarily to the fact that INDEX changed its benchmark index in November of 2023 from the S&P 500® Equal Weight Index to the S&P 500® Index.
During 2023, several banks in the Fund’s portfolio failed before Standard & Poor’s removed them from the underlying index. These banks comprised a greater weighting of the S&P 500® Equal Weight Index than the Market Cap Index. This was one of the reasons that the S&P 500® Equal Weight Index underperformed the S&P 500® Index in 2023.
The S&P 500® Index is a market-capitalization-weighted index that weighs its component assets based on market capitalization. In simplest terms, the larger a company’s market cap, the more its sway on the index’s performance. Market capitalization is calculated by multiplying a company’s stock price by the total number of outstanding shares.
Warm Regards,
Michael Willis
President, ONEFUND, LLC
The foregoing reflects the thoughts and opinions of ONEFUND, LLC, the adviser to the Fund, and is subject to change without notice. Investors cannot invest directly in an index. Subject to investment risks, including possible loss of principal amount invested.
| * | The S&P 500® Index is maintained in accordance with the index methodology of the S&P 500. It measures the performance of 500 companies, all of which are listed on national stock exchanges and span over approximately 24 separate industry groups. The S&P 500® Equal Weight Index is an equal weighted version of the S&P 500® Index. The S&P 500® Equal Weight Index includes the same constituents as the capitalization weighted S&P 500® Index, but each company in the S&P 500® Equal Weight Index is allocated a fixed weight - or 0.2% of the index total at each quarterly rebalance. It is a broad-based securities market index. Such indices are generally not actively managed and are not subject to fees and expenses typically associated with managed accounts or funds. You cannot invest directly in a broad-based securities index. |
The S&P 500® Market Cap Index: The headline market cap indices, the S&P 500®, the S&P MidCap 400® and the S&P SmallCap 600® are widely recognized as leading indicators of U.S. equity market performance. The S&P 500® is the world’s most-tracked index by assets under management.
As of November 15, 2023, the Fund tracks the S&P 500® Index as its benchmark. Prior to November 15, 2023, the Fund tracked the S&P 500® Equal Weight Index.
Past performance is not indicative of future results, ordinary brokerage commissions apply, brokerage commissions will reduce returns.
| Annual Report | March 31, 2024 | 1 |
| ONEFUND S&P 500® | Investment Results |
| | March 31, 2024 (Unaudited) |
| | |
Average Annual Total Returns(a) (for the periods ended March 31, 2024)
| | One Year | Five Year | Since Inception
(4/30/15) |
| ONEFUND S&P 500® | 18.48% | 11.98% | 10.50% |
| S&P 500® Index (b) | 29.88% | 15.05% | 12.99% |
| S&P 500® Equal Weight Index (c) | 19.38% | 12.35% | 10.73% |
| | | | |
| | Expense Ratios (d) | |
| Gross | 0.65% | |
| With Applicable Waivers | 0.25% | |
| | | |
The performance data quoted above represents past performance. Past performance is not a guarantee of future results. Investment return and value of the Fund shares will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance data may be lower or higher than actual performance data quoted. Fund performance current to the most recent month-end is available by calling 1-844-464-6339 or by visiting www.ONEFUND.io.
| (a) | Return figures reflect any change in price per share and assume the reinvestment of all distributions. The Fund’s returns reflect any fee reductions during the applicable period. If such fee reductions had not occurred, the quoted performances would have been lower. |
| (b) | The S&P 500® Index is maintained in accordance with the index methodology of the S&P 500. It measures the performance of 500 companies, all of which are listed on national stock exchanges and span over approximately 24 separate industry groups. A direct investment in an index is not possible. |
| (c) | The S&P 500® Equal Weight Index is maintained in accordance with the index methodology of the S&P 500. It measures the performance of the same 500 companies as the S&P 500, but applies an equal weight to those companies, which results in sector exposures that differ from those of the S&P 500. A direct investment in an index is not possible. |
| (d) | The expense ratios are from the Fund’s prospectus dated November 15, 2023. ONEFUND, LLC (the “Adviser”) has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement (excluding acquired fund fees and expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses) to not more than 0.25% of the Fund’s average daily net assets for No Load Class shares. This agreement is in effect through November 15, 2024. This agreement may not be terminated or modified by the Adviser prior to this date except with the approval of the Fund’s Board of Trustees. The Adviser is not permitted to recoup any amounts previously waived or reimbursed pursuant to this agreement. Additional information pertaining to the Fund’s expense ratios as of March 31, 2024, can be found in the financial highlights. |
You should consider the Fund’s investment objective, risks, charges and expenses carefully before you invest. The Fund’s prospectus contains important information about the Fund’s investment objective, potential risks, management fees, charges and expenses, and other information and should be read carefully before investing. You may obtain a current copy of the Fund’s prospectus or performance data current to the most recent month-end by calling 1-844-464-6339.
The Fund is distributed by Ultimus Fund Distributors, LLC, member FINRA/SIPC.
| ONEFUND S&P 500® | Investment Results |
| | March 31, 2024 (Unaudited) |
| | |
Growth of $10,000 Initial Investment
(for the period ended March 31, 2024)
The chart above assumes an initial investment of $10,000 made on April 30, 2015 (commencement of operations) and held through March 31, 2024. The S&P 500® Index (the “Index”) is widely regarded as the best single gauge of large-cap U.S. equities. The Index includes 500 leading companies and covers approximately 80% of available market capitalization. Individuals cannot invest directly in an index; however, an individual may invest in exchange-traded funds or other investment vehicles that attempt to track the performance of a benchmark index. THE FUND’S RETURNS REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment returns and principal values will fluctuate so that your shares, when redeemed, may be worth more or less than their original purchase price.
Current performance may be lower or higher than the performance data quoted. For more information on the Fund, and to obtain performance data current to the most recent month-end, or to request a prospectus, please call 1-844-464-6339. You should carefully consider the investment objective, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund’s prospectus contains this and other information about the Fund and should be read carefully before investing.
| Annual Report | March 31, 2024 | 3 |
| ONEFUND S&P 500® | Portfolio Illustration |
| | March 31, 2024 (Unaudited) |
| | |
Sector Allocation* (as a % of Net Assets)
ONEFUND S&P 500®
Holdings as of March 31, 2024(a)
| * | Holdings are subject to change and may not reflect the current or future position of the portfolio. For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry subclassifications for reporting ease. Industries are shown as a percentage of net assets. |
| (a) | As a percentage of net assets. |
The S&P 500 Index (the “Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and their Third Party Licensors, and has been licensed for use by ONEFUND, LLC (the “Adviser”). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”). Any Third Party Licensor Trademarks are trademarks of the Third Party Licensor. The trademarks have been licensed to SPDJI and have been sublicensed for use for certain purposes by the Adviser. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”) or their Third Party Licensors. Neither S&P Dow Jones Indices nor its Third Party Licensors make any representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of the Index to track general market performance. S&P Dow Jones Indices’ and its Third Party Licensors’ only relationship to the Adviser with respect to the Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The Index is determined, composed and calculated by S&P Dow Jones Indices or its Third Party Licensors without regard to the Adviser or the Fund. S&P Dow Jones Indices and its Third Party Licensors have no obligation to take the needs of the Adviser or the owners of the Fund into consideration in determining, composing or calculating the Index. Neither S&P Dow Jones Indices nor its Third Party Licensors are responsible for and have not participated in the determination of the prices, and amount of the Fund or the timing of the issuance or sale of the Fund or in the determination or calculation of the equation by which the Fund is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices and its Third Party Licensors have no obligation or liability in connection with the administration, marketing or trading of the Fund. There is no assurance that investment products based on the Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment advisor. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.
| ONEFUND S&P 500® | Portfolio Illustration |
| | March 31, 2024 (Unaudited) |
| | |
NEITHER S&P DOW JONES INDICES NOR ITS THIRD PARTY LICENSORS GUARANTEE THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES AND ITS THIRD PARTY LICENSORS SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES AND ITS THIRD PARTY LICENSORS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY THE ADVISER, OWNERS OF THE FUND, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES OR ITS THIRD PARTY LICENSORS BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND THE ADVISER, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
| Annual Report | March 31, 2024 | 5 |
| ONEFUND S&P 500® | Schedule of Investments |
| | March 31, 2024 |
| | |
| | | Shares | | | Fair Value | |
| COMMON STOCKS — 99.67% | | | | | | | | |
| Communications — 9.78% | | | | | | | | |
| Airbnb, Inc., Class A(a) | | | 1,121 | | | $ | 184,920 | |
| Alphabet, Inc., Class A(a) | | | 15,167 | | | | 2,289,155 | |
| Alphabet, Inc., Class C(a) | | | 12,698 | | | | 1,933,397 | |
| AT&T, Inc. | | | 18,402 | | | | 323,875 | |
| Booking Holdings, Inc. | | | 90 | | | | 326,509 | |
| Charter Communications, | | | | | | | | |
| Inc., Class A(a) | | | 254 | | | | 73,820 | |
| Comcast Corp., Class A | | | 10,198 | | | | 442,083 | |
| Electronic Arts, Inc. | | | 626 | | | | 83,051 | |
| Expedia Group, Inc.(a) | | | 337 | | | | 46,422 | |
| Fox Corp., Class A | | | 616 | | | | 19,262 | |
| Fox Corp., Class B | | | 340 | | | | 9,731 | |
| Interpublic Group of Companies, Inc. | | | 986 | | | | 32,173 | |
| Match Group, Inc.(a) | | | 700 | | | | 25,396 | |
| Meta Platforms, Inc., Class A | | | 5,662 | | | | 2,749,355 | |
| Netflix, Inc.(a) | | | 1,114 | | | | 676,566 | |
| News Corp., Class A | | | 978 | | | | 25,604 | |
| News Corp., Class B | | | 295 | | | | 7,983 | |
| Omnicom Group, Inc. | | | 510 | | | | 49,348 | |
| Paramount Global, Class B | | | 1,242 | | | | 14,618 | |
| Take—Two Interactive Software, Inc.(a) | | | 408 | | | | 60,584 | |
| T—Mobile US, Inc. | | | 1,344 | | | | 219,368 | |
| Uber Technologies, Inc.(a) | | | 5,296 | | | | 407,739 | |
| VeriSign, Inc.(a) | | | 227 | | | | 43,019 | |
| Verizon Communications, Inc. | | | 10,821 | | | | 454,049 | |
| Walt Disney Co. (The) | | | 4,721 | | | | 577,662 | |
| Warner Bros. Discovery, Inc.(a) | | | 5,711 | | | | 49,857 | |
| | | | | | | | 11,125,546 | |
| Consumer Discretionary — 10.07% | | | | | | | | |
| Amazon.com, Inc.(a) | | | 23,526 | | | | 4,243,619 | |
| Aptiv PLC(a) | | | 718 | | | | 57,189 | |
| AutoZone, Inc.(a) | | | 45 | | | | 141,824 | |
| Axon Enterprise, Inc.(a) | | | 181 | | | | 56,631 | |
| Bath & Body Works, Inc. | | | 582 | | | | 29,112 | |
| Best Buy Co., Inc. | | | 493 | | | | 40,441 | |
| BorgWarner, Inc. | | | 591 | | | | 20,531 | |
| Builders FirstSource, Inc.(a) | | | 317 | | | | 66,110 | |
| Caesars Entertainment, Inc.(a) | | | 555 | | | | 24,276 | |
| CarMax, Inc.(a) | | | 406 | | | | 35,367 | |
| Carnival Corp.(a) | | | 2,593 | | | | 42,370 | |
| Chipotle Mexican Grill, Inc.(a) | | | 71 | | | | 206,381 | |
| Copart, Inc.(a) | | | 2,249 | | | | 130,263 | |
| D.R. Horton, Inc. | | | 769 | | | | 126,539 | |
| Darden Restaurants, Inc. | | | 307 | | | | 51,315 | |
| Deckers Outdoor Corp.(a) | | | 66 | | | | 62,123 | |
| Domino’s Pizza, Inc. | | | 90 | | | | 44,719 | |
| eBay, Inc. | | | 1,336 | | | | 70,514 | |
| Etsy, Inc.(a) | | | 308 | | | | 21,166 | |
| Ford Motor Co. | | | 10,045 | | | | 133,398 | |
| General Motors Co. | | | 2,971 | | | | 134,735 | |
| Genuine Parts Co. | | | 361 | | | | 55,930 | |
| | | Shares | | | Fair Value | |
| Consumer Discretionary (Continued) | | | | | | | | |
| Hasbro, Inc. | | | 336 | | | $ | 18,991 | |
| Hilton Worldwide Holdings, Inc. | | | 649 | | | | 138,438 | |
| Home Depot, Inc. (The) | | | 2,562 | | | | 982,783 | |
| Las Vegas Sands Corp. | | | 950 | | | | 49,115 | |
| Lennar Corp., Class A | | | 636 | | | | 109,379 | |
| Live Nation Entertainment, Inc.(a) | | | 365 | | | | 38,606 | |
| LKQ Corp. | | | 689 | | | | 36,799 | |
| Lowe’s Companies, Inc. | | | 1,480 | | | | 377,000 | |
| Lululemon Athletica, Inc.(a) | | | 296 | | | | 115,632 | |
| Marriott International, Inc., Class A | | | 635 | | | | 160,217 | |
| Masco Corp. | | | 566 | | | | 44,646 | |
| McDonald’s Corp. | | | 1,867 | | | | 526,401 | |
| MGM Resorts International(a) | | | 703 | | | | 33,189 | |
| Mohawk Industries, Inc.(a) | | | 136 | | | | 17,801 | |
| NIKE, Inc., Class B | | | 3,133 | | | | 294,440 | |
| Norwegian Cruise Lines Holdings Ltd.(a) | | | 1,095 | | | | 22,918 | |
| NVR, Inc.(a) | | | 8 | | | | 64,800 | |
| O’Reilly Automotive, Inc.(a) | | | 152 | | | | 171,590 | |
| Pool Corp. | | | 100 | | | | 40,350 | |
| PulteGroup, Inc. | | | 546 | | | | 65,859 | |
| Ralph Lauren Corp. | | | 100 | | | | 18,776 | |
| Ross Stores, Inc. | | | 866 | | | | 127,094 | |
| Royal Caribbean Cruises Ltd.(a) | | | 607 | | | | 84,379 | |
| Starbucks Corp. | | | 2,914 | | | | 266,310 | |
| Tapestry, Inc. | | | 590 | | | | 28,013 | |
| Tesla, Inc.(a) | | | 7,131 | | | | 1,253,558 | |
| TJX Companies, Inc. (The) | | | 2,933 | | | | 297,465 | |
| Tractor Supply Co. | | | 278 | | | | 72,758 | |
| Ulta Beauty, Inc.(a) | | | 125 | | | | 65,360 | |
| VF Corporation | | | 851 | | | | 13,054 | |
| Wynn Resorts Ltd. | | | 245 | | | | 25,046 | |
| Yum! Brands, Inc. | | | 723 | | | | 100,244 | |
| | | | | | | | 11,455,564 | |
| Consumer Staples — 5.95% | | | | | | | | |
| Altria Group, Inc. | | | 4,539 | | | | 197,991 | |
| Archer—Daniels—Midland Co. | | | 1,373 | | | | 86,238 | |
| Brown—Forman Corp., Class B | | | 465 | | | | 24,003 | |
| Bunge Global SA | | | 374 | | | | 38,342 | |
| Campbell Soup Co. | | | 506 | | | | 22,492 | |
| Church & Dwight Co., Inc. | | | 634 | | | | 66,133 | |
| Clorox Co. (The) | | | 319 | | | | 48,842 | |
| Coca—Cola Co. (The) | | | 10,015 | | | | 612,718 | |
| Colgate—Palmolive Co. | | | 2,119 | | | | 190,816 | |
| Conagra Brands, Inc. | | | 1,230 | | | | 36,457 | |
| Constellation Brands, Inc., Class A | | | 414 | | | | 112,509 | |
| Costco Wholesale Corp. | | | 1,142 | | | | 836,664 | |
| Dollar General Corp. | | | 565 | | | | 88,174 | |
| Dollar Tree, Inc.(a) | | | 533 | | | | 70,969 | |
| Estee Lauder Companies, Inc. (The), Class A | | | 599 | | | | 92,336 | |
| General Mills, Inc. | | | 1,462 | | | | 102,296 | |
| See Notes to Financial Statements. |
| 6 | www.ONEFUND.io |
| ONEFUND S&P 500® | Schedule of Investments |
| | March 31, 2024 |
| | |
| | | Shares | | | Fair Value | |
| Consumer Staples (Continued) | | | | | | | | |
| Hershey Co. (The) | | | 386 | | | $ | 75,077 | |
| Hormel Foods Corp. | | | 746 | | | | 26,028 | |
| J.M. Smucker Co. (The) | | | 273 | | | | 34,363 | |
| Kellogg Co. | | | 679 | | | | 38,900 | |
| Kenvue, Inc. | | | 4,436 | | | | 95,197 | |
| Keurig Dr Pepper, Inc. | | | 2,681 | | | | 82,226 | |
| Kimberly—Clark Corp. | | | 867 | | | | 112,146 | |
| Kraft Heinz Co. (The) | | | 2,052 | | | | 75,719 | |
| Kroger Co. (The) | | | 1,703 | | | | 97,292 | |
| Lamb Weston Holdings, Inc. | | | 372 | | | | 39,629 | |
| McCormick & Co., Inc., Non—Voting Shares | | | 647 | | | | 49,696 | |
| Molson Coors Brewing Co., Class B | | | 477 | | | | 32,078 | |
| Mondelez International, Inc., Class A | | | 3,465 | | | | 242,550 | |
| Monster Beverage Corp.(a) | | | 1,901 | | | | 112,691 | |
| PepsiCo, Inc. | | | 3,537 | | | | 619,011 | |
| Philip Morris International, Inc. | | | 3,996 | | | | 366,114 | |
| Procter & Gamble Co. (The) | | | 6,056 | | | | 982,585 | |
| Sysco Corp. | | | 1,281 | | | | 103,992 | |
| Target Corp. | | | 1,188 | | | | 210,525 | |
| Tyson Foods, Inc., Class A | | | 737 | | | | 43,284 | |
| Walgreens Boots Alliance, Inc. | | | 1,842 | | | | 39,953 | |
| Wal—Mart Stores, Inc. | | | 11,017 | | | | 662,893 | |
| | | | | | | | 6,768,929 | |
| Energy — 4.01% | | | | | | | | |
| APA Corp. | | | 780 | | | | 26,816 | |
| Baker Hughes Co., Class A | | | 2,576 | | | | 86,296 | |
| Chevron Corp. | | | 4,464 | | | | 704,151 | |
| ConocoPhillips | | | 3,032 | | | | 385,913 | |
| Coterra Energy, Inc. | | | 1,936 | | | | 53,976 | |
| Devon Energy Corp. | | | 1,649 | | | | 82,747 | |
| Diamondback Energy, Inc. | | | 461 | | | | 91,356 | |
| Enphase Energy, Inc.(a) | | | 349 | | | | 42,222 | |
| EOG Resources, Inc. | | | 1,501 | | | | 191,888 | |
| EQT Corp. | | | 1,059 | | | | 39,257 | |
| Exxon Mobil Corp. | | | 10,220 | | | | 1,187,974 | |
| First Solar, Inc.(a) | | | 275 | | | | 46,420 | |
| Halliburton Co. | | | 2,291 | | | | 90,311 | |
| Hess Corp. | | | 708 | | | | 108,069 | |
| Kinder Morgan, Inc. | | | 4,977 | | | | 91,278 | |
| Marathon Oil Corp. | | | 1,506 | | | | 42,680 | |
| Marathon Petroleum Corp. | | | 947 | | | | 190,821 | |
| Occidental Petroleum Corp. | | | 1,694 | | | | 110,093 | |
| ONEOK, Inc. | | | 1,499 | | | | 120,175 | |
| Phillips 66 | | | 1,107 | | | | 180,817 | |
| Pioneer Natural Resources Co. | | | 601 | | | | 157,763 | |
| Schlumberger Ltd. | | | 3,674 | | | | 201,372 | |
| Targa Resources Corp. | | | 574 | | | | 64,282 | |
| Valero Energy Corp. | | | 876 | | | | 149,524 | |
| Williams Companies, Inc. (The) | | | 3,131 | | | | 122,015 | |
| | | | | | | | 4,568,216 | |
| | | Shares | | | Fair Value | |
| Financials — 9.97% | | | | | | | | |
| Aflac, Inc. | | | 1,355 | | | $ | 116,340 | |
| Allstate Corp. (The) | | | 676 | | | | 116,955 | |
| American Express Co. | | | 1,472 | | | | 335,160 | |
| American International Group, Inc. | | | 1,807 | | | | 141,253 | |
| Ameriprise Financial, Inc. | | | 258 | | | | 113,118 | |
| Aon PLC, Class A | | | 515 | | | | 171,866 | |
| Arch Capital Group Ltd.(a) | | | 955 | | | | 88,280 | |
| Arthur J. Gallagher & Co. | | | 558 | | | | 139,522 | |
| Assurant, Inc. | | | 134 | | | | 25,224 | |
| Bank of America Corp. | | | 17,720 | | | | 671,942 | |
| Bank of New York Mellon Corp. (The) | | | 1,954 | | | | 112,589 | |
| Berkshire Hathaway, Inc., Class B(a) | | | 4,683 | | | | 1,969,295 | |
| BlackRock, Inc. | | | 360 | | | | 300,131 | |
| Blackstone Group L.P. (The), Class A | | | 1,851 | | | | 243,166 | |
| Brown & Brown, Inc. | | | 608 | | | | 53,224 | |
| Capital One Financial Corp. | | | 979 | | | | 145,763 | |
| Cboe Global Markets, Inc. | | | 272 | | | | 49,975 | |
| Charles Schwab Corp. (The) | | | 3,830 | | | | 277,062 | |
| Chubb Ltd. | | | 1,043 | | | | 270,273 | |
| Cincinnati Financial Corp. | | | 404 | | | | 50,165 | |
| Citigroup, Inc. | | | 4,898 | | | | 309,751 | |
| Citizens Financial Group, Inc. | | | 1,200 | | | | 43,548 | |
| CME Group, Inc. | | | 927 | | | | 199,574 | |
| Comerica, Inc. | | | 339 | | | | 18,642 | |
| Discover Financial Services | | | 644 | | | | 84,422 | |
| Everest Re Group, Ltd. | | | 112 | | | | 44,520 | |
| Fifth Third Bancorp | | | 1,753 | | | | 65,229 | |
| Franklin Resources, Inc. | | | 772 | | | | 21,701 | |
| Globe Life, Inc. | | | 220 | | | | 25,601 | |
| Goldman Sachs Group, Inc. (The) | | | 839 | | | | 350,441 | |
| Hartford Financial Services Group, Inc. (The) | | | 768 | | | | 79,142 | |
| Huntington Bancshares, Inc. | | | 3,728 | | | | 52,006 | |
| Intercontinental Exchange, Inc. | | | 1,474 | | | | 202,572 | |
| Invesco Ltd. | | | 1,157 | | | | 19,195 | |
| JPMorgan Chase & Co. | | | 7,441 | | | | 1,490,432 | |
| KeyCorp | | | 2,410 | | | | 38,102 | |
| Loews Corp. | | | 469 | | | | 36,718 | |
| M&T Bank Corp. | | | 428 | | | | 62,248 | |
| Marsh & McLennan Companies, Inc. | | | 1,266 | | | | 260,771 | |
| MetLife, Inc. | | | 1,580 | | | | 117,094 | |
| Morgan Stanley | | | 3,224 | | | | 303,571 | |
| Nasdaq, Inc. | | | 876 | | | | 55,276 | |
| Northern Trust Corp. | | | 528 | | | | 46,950 | |
| PNC Financial Services Group, Inc. (The) | | | 1,024 | | | | 165,478 | |
| Principal Financial Group, Inc. | | | 565 | | | | 48,765 | |
| Progressive Corp. (The) | | | 1,506 | | | | 311,471 | |
| Prudential Financial, Inc. | | | 929 | | | | 109,065 | |
| Raymond James Financial, Inc. | | | 484 | | | | 62,155 | |
| Regions Financial Corp. | | | 2,378 | | | | 50,033 | |
| State Street Corp. | | | 777 | | | | 60,078 | |
| Synchrony Financial | | | 1,047 | | | | 45,147 | |
| See Notes to Financial Statements. |
| Annual Report | March 31, 2024 | 7 |
| ONEFUND S&P 500® | Schedule of Investments |
| | March 31, 2024 |
| | |
| | | Shares | | | Fair Value | |
| Financials (Continued) | | | | | | | | |
| T. Rowe Price Group, Inc. | | | 576 | | | $ | 70,226 | |
| Travelers Companies, Inc. (The) | | | 587 | | | | 135,092 | |
| Truist Financial Corp. | | | 3,433 | | | | 133,818 | |
| U.S. Bancorp | | | 4,007 | | | | 179,113 | |
| W.R. Berkley Corp. | | | 522 | | | | 46,166 | |
| Wells Fargo & Co. | | | 9,262 | | | | 536,826 | |
| Willis Towers Watson PLC | | | 264 | | | | 72,600 | |
| | | | | | | | 11,344,842 | |
| Health Care — 12.37% | | | | | | | | |
| Abbott Laboratories | | | 4,468 | | | | 507,833 | |
| AbbVie, Inc. | | | 4,544 | | | | 827,461 | |
| Agilent Technologies, Inc. | | | 754 | | | | 109,715 | |
| Align Technology, Inc.(a) | | | 183 | | | | 60,009 | |
| AmerisourceBergen Corp. | | | 426 | | | | 103,514 | |
| Amgen, Inc. | | | 1,377 | | | | 391,509 | |
| Baxter International, Inc. | | | 1,307 | | | | 55,861 | |
| Becton, Dickinson and Co. | | | 744 | | | | 184,103 | |
| Biogen, Inc.(a) | | | 373 | | | | 80,430 | |
| Bio—Rad Laboratories, Inc., Class A(a) | | | 54 | | | | 18,677 | |
| Bio—Techne Corp. | | | 405 | | | | 28,508 | |
| Boston Scientific Corp.(a) | | | 3,770 | | | | 258,207 | |
| Bristol—Myers Squibb Co. | | | 5,237 | | | | 284,003 | |
| Cardinal Health, Inc. | | | 626 | | | | 70,049 | |
| Catalent, Inc.(a) | | | 465 | | | | 26,249 | |
| Centene Corp.(a) | | | 1,376 | | | | 107,988 | |
| Charles River Laboratories International, Inc.(a) | | | 132 | | | | 35,765 | |
| Cigna Corp. | | | 753 | | | | 273,482 | |
| Cooper Companies, Inc. (The) | | | 512 | | | | 51,948 | |
| CVS Health Corp. | | | 3,239 | | | | 258,343 | |
| Danaher Corp. | | | 1,693 | | | | 422,776 | |
| DaVita, Inc.(a) | | | 139 | | | | 19,189 | |
| DENTSPLY SIRONA, Inc. | | | 545 | | | | 18,089 | |
| DexCom, Inc.(a) | | | 992 | | | | 137,590 | |
| Edwards LifeSciences Corp.(a) | | | 1,561 | | | | 149,169 | |
| Elevance Health, Inc. | | | 605 | | | | 313,717 | |
| Eli Lilly & Co. | | | 2,052 | | | | 1,596,374 | |
| GE HealthCare Technologies, Inc. | | | 1,043 | | | | 94,819 | |
| Gilead Sciences, Inc. | | | 3,207 | | | | 234,913 | |
| HCA Healthcare, Inc. | | | 510 | | | | 170,100 | |
| Henry Schein, Inc.(a) | | | 334 | | | | 25,224 | |
| Hologic, Inc.(a) | | | 604 | | | | 47,088 | |
| Humana, Inc. | | | 315 | | | | 109,217 | |
| IDEXX Laboratories, Inc.(a) | | | 214 | | | | 115,545 | |
| Illumina, Inc.(a) | | | 409 | | | | 56,164 | |
| Incyte Corp.(a) | | | 479 | | | | 27,289 | |
| Insulet Corp.(a) | | | 180 | | | | 30,852 | |
| Intuitive Surgical, Inc.(a) | | | 907 | | | | 361,975 | |
| IQVIA Holdings, Inc.(a) | | | 470 | | | | 118,858 | |
| Johnson & Johnson | | | 6,196 | | | | 980,145 | |
| Laboratory Corporation of America Holdings | | | 219 | | | | 47,843 | |
| | | Shares | | | Fair Value | |
| Health Care (Continued) | | | | | | | | |
| McKesson Corp. | | | 338 | | | $ | 181,455 | |
| Medtronic, PLC | | | 3,422 | | | | 298,227 | |
| Merck & Co., Inc. | | | 6,522 | | | | 860,578 | |
| Mettler—Toledo International, Inc.(a) | | | 55 | | | | 73,221 | |
| Moderna, Inc.(a) | | | 854 | | | | 91,002 | |
| Molina Healthcare, Inc.(a) | | | 149 | | | | 61,214 | |
| PerkinElmer, Inc. | | | 318 | | | | 33,390 | |
| Pfizer, Inc. | | | 14,532 | | | | 403,263 | |
| Quest Diagnostics, Inc. | | | 286 | | | | 38,069 | |
| Regeneron Pharmaceuticals, Inc.(a) | | | 272 | | | | 261,797 | |
| ResMed, Inc. | | | 379 | | | | 75,053 | |
| STERIS PLC | | | 254 | | | | 57,104 | |
| Stryker Corp. | | | 870 | | | | 311,347 | |
| Teleflex, Inc. | | | 121 | | | | 27,367 | |
| Thermo Fisher Scientific, Inc. | | | 994 | | | | 577,722 | |
| UnitedHealth Group, Inc. | | | 2,380 | | | | 1,177,387 | |
| Universal Health Services, Inc., Class B | | | 157 | | | | 28,646 | |
| Vertex Pharmaceuticals, Inc.(a) | | | 663 | | | | 277,141 | |
| Viatris, Inc. | | | 3,088 | | | | 36,871 | |
| Waters Corp.(a) | | | 152 | | | | 52,323 | |
| West Pharmaceutical Services, Inc. | | | 190 | | | | 75,185 | |
| Zimmer Biomet Holdings, Inc. | | | 538 | | | | 71,005 | |
| Zoetis, Inc., Class A | | | 1,182 | | | | 200,006 | |
| | | | | | | | 14,079,963 | |
| Industrials — 8.08% | | | | | | | | |
| 3M Co. | | | 1,422 | | | | 150,832 | |
| A.O. Smith Corp. | | | 316 | | | | 28,269 | |
| Allegion PLC | | | 226 | | | | 30,444 | |
| American Airlines Group, Inc.(a) | | | 1,684 | | | | 25,849 | |
| AMETEK, Inc. | | | 594 | | | | 108,643 | |
| Amphenol Corp., Class A | | | 1,544 | | | | 178,100 | |
| Boeing Co. (The)(a) | | | 1,476 | | | | 284,852 | |
| Carrier Global Corp. | | | 2,150 | | | | 124,980 | |
| Caterpillar, Inc. | | | 1,310 | | | | 480,023 | |
| CH Robinson Worldwide, Inc. | | | 300 | | | | 22,842 | |
| Cintas Corp. | | | 222 | | | | 152,521 | |
| CSX Corp. | | | 5,086 | | | | 188,538 | |
| Cummins, Inc. | | | 365 | | | | 107,547 | |
| Deere & Co. | | | 670 | | | | 275,196 | |
| Delta Air Lines, Inc. | | | 1,648 | | | | 78,890 | |
| Dover Corp. | | | 360 | | | | 63,788 | |
| Eaton Corp. PLC | | | 1,028 | | | | 321,436 | |
| Emerson Electric Co. | | | 1,471 | | | | 166,841 | |
| Expeditors International of Washington, Inc. | | | 374 | | | | 45,467 | |
| Fastenal Co. | | | 1,473 | | | | 113,627 | |
| FedEx Corp. | | | 592 | | | | 171,526 | |
| Fortive Corp. | | | 903 | | | | 77,676 | |
| Generac Holdings, Inc.(a) | | | 158 | | | | 19,930 | |
| General Dynamics Corp. | | | 584 | | | | 164,974 | |
| General Electric, Co. | | | 2,801 | | | | 491,660 | |
| See Notes to Financial Statements. |
| 8 | www.ONEFUND.io |
| ONEFUND S&P 500® | Schedule of Investments |
| | March 31, 2024 |
| | |
| | | Shares | | | Fair Value | |
| Industrials (Continued) | | | | | | | | |
| Honeywell International, Inc. | | | 1,697 | | | $ | 348,309 | |
| Howmet Aerospace Inc. | | | 1,007 | | | | 68,909 | |
| Hubbell, Inc. | | | 138 | | | | 57,277 | |
| Huntington Ingalls Industries, Inc. | | | 102 | | | | 29,730 | |
| IDEX Corp. | | | 195 | | | | 47,584 | |
| Illinois Tool Works, Inc. | | | 700 | | | | 187,831 | |
| Ingersoll Rand, Inc. | | | 1,042 | | | | 98,938 | |
| Jacobs Solutions, Inc. | | | 323 | | | | 49,655 | |
| JB Hunt Transport Services, Inc. | | | 210 | | | | 41,843 | |
| Johnson Controls International PLC | | | 1,754 | | | | 114,571 | |
| Keysight Technologies, Inc.(a) | | | 450 | | | | 70,371 | |
| L3Harris Technologies, Inc. | | | 488 | | | | 103,993 | |
| Lockheed Martin Corp., Class B | | | 554 | | | | 251,998 | |
| Nordson Corp. | | | 140 | | | | 38,436 | |
| Norfolk Southern Corp. | | | 581 | | | | 148,079 | |
| Northrop Grumman Corp. | | | 363 | | | | 173,754 | |
| Old Dominion Freight Line, Inc. | | | 460 | | | | 100,883 | |
| Otis Worldwide Corp. | | | 1,044 | | | | 103,638 | |
| PACCAR, Inc. | | | 1,346 | | | | 166,757 | |
| Parker—Hannifin Corp. | | | 330 | | | | 183,411 | |
| Pentair PLC | | | 425 | | | | 36,312 | |
| Quanta Services, Inc. | | | 374 | | | | 97,165 | |
| Raytheon Technologies Corp. | | | 3,415 | | | | 333,064 | |
| Republic Services, Inc. | | | 526 | | | | 100,697 | |
| Robert Half International, Inc. | | | 268 | | | | 21,247 | |
| Rockwell Automation, Inc. | | | 295 | | | | 85,942 | |
| Rollins, Inc. | | | 723 | | | | 33,453 | |
| Roper Technologies, Inc. | | | 275 | | | | 154,231 | |
| Snap—on, Inc. | | | 136 | | | | 40,286 | |
| Southwest Airlines Co. | | | 1,536 | | | | 44,836 | |
| Stanley Black & Decker, Inc. | | | 395 | | | | 38,682 | |
| TE Connectivity Ltd. | | | 795 | | | | 115,466 | |
| Teledyne Technologies, Inc.(a) | | | 121 | | | | 51,948 | |
| Textron, Inc. | | | 504 | | | | 48,349 | |
| Trane Technologies PLC | | | 586 | | | | 175,918 | |
| Transdigm Group, Inc. | | | 143 | | | | 176,119 | |
| Trimble, Inc.(a) | | | 640 | | | | 41,190 | |
| Union Pacific Corp. | | | 1,569 | | | | 385,863 | |
| United Airlines Holdings, Inc.(a) | | | 844 | | | | 40,411 | |
| United Parcel Service, Inc., Class B | | | 1,861 | | | | 276,600 | |
| United Rentals, Inc. | | | 173 | | | | 124,752 | |
| Veralto Corp. | | | 564 | | | | 50,004 | |
| W.W. Grainger, Inc. | | | 114 | | | | 115,972 | |
| Wabtec Corp. | | | 461 | | | | 67,158 | |
| Waste Management, Inc. | | | 943 | | | | 201,001 | |
| Xylem, Inc. | | | 620 | | | | 80,129 | |
| | | | | | | | 9,197,213 | |
| Materials — 2.36% | | | | | | | | |
| Air Products & Chemicals, Inc. | | | 572 | | | | 138,578 | |
| Albemarle Corp. | | | 302 | | | | 39,785 | |
| Amcor PLC | | | 3,720 | | | | 35,377 | |
| Avery Dennison Corp. | | | 207 | | | | 46,213 | |
| | | Shares | | | Fair Value | |
| Materials (Continued) | | | | | | | | |
| Ball Corp. | | | 811 | | | $ | 54,629 | |
| Celanese Corp. | | | 258 | | | | 44,340 | |
| CF Industries Holdings, Inc. | | | 492 | | | | 40,939 | |
| Corteva, Inc. | | | 1,806 | | | | 104,152 | |
| Dow, Inc. | | | 1,808 | | | | 104,737 | |
| DuPont de Nemours, Inc. | | | 1,107 | | | | 84,874 | |
| Eastman Chemical Co. | | | 302 | | | | 30,266 | |
| Ecolab, Inc. | | | 653 | | | | 150,778 | |
| FMC Corp. | | | 321 | | | | 20,448 | |
| Freeport—McMoRan, Inc. | | | 3,691 | | | | 173,551 | |
| International Flavors & Fragrances, Inc. | | | 657 | | | | 56,495 | |
| International Paper Co. | | | 891 | | | | 34,767 | |
| Linde PLC | | | 1,248 | | | | 579,472 | |
| LyondellBasell Industries N.V., Class A | | | 659 | | | | 67,403 | |
| Martin Marietta Materials, Inc. | | | 159 | | | | 97,616 | |
| Mosaic Co. (The) | | | 841 | | | | 27,299 | |
| Newmont Corp. | | | 2,966 | | | | 106,301 | |
| Nucor Corp. | | | 633 | | | | 125,271 | |
| Packaging Corporation of America | | | 229 | | | | 43,460 | |
| PPG Industries, Inc. | | | 607 | | | | 87,954 | |
| Sherwin—Williams Co. (The) | | | 606 | | | | 210,482 | |
| Steel Dynamics, Inc. | | | 391 | | | | 57,958 | |
| Vulcan Materials Co. | | | 342 | | | | 93,339 | |
| WestRock Co. | | | 661 | | | | 32,686 | |
| | | | | | | | 2,689,170 | |
| Real Estate — 2.18% | | | | | | | | |
| Alexandria Real Estate Equities, Inc. | | | 405 | | | | 52,209 | |
| American Tower Corp. | | | 1,200 | | | | 237,107 | |
| AvalonBay Communities, Inc. | | | 365 | | | | 67,729 | |
| Boston Properties, Inc. | | | 372 | | | | 24,295 | |
| Camden Property Trust | | | 275 | | | | 27,060 | |
| CBRE Group, Inc., Class A(a) | | | 765 | | | | 74,389 | |
| Crown Castle International Corp. | | | 1,116 | | | | 118,106 | |
| Digital Realty Trust, Inc. | | | 779 | | | | 112,207 | |
| Equinix, Inc. | | | 242 | | | | 199,730 | |
| Equity Residential | | | 888 | | | | 56,042 | |
| Essex Property Trust, Inc. | | | 165 | | | | 40,394 | |
| Extra Space Storage, Inc. | | | 544 | | | | 79,968 | |
| Federal Realty Investment Trust | | | 189 | | | | 19,301 | |
| Healthpeak Properties, Inc. | | | 1,822 | | | | 34,163 | |
| Host Hotels & Resorts, Inc. | | | 1,816 | | | | 37,555 | |
| Invitation Homes, Inc. | | | 1,481 | | | | 52,738 | |
| Iron Mountain, Inc. | | | 751 | | | | 60,238 | |
| Kimco Realty Corp. | | | 1,714 | | | | 33,612 | |
| Mid—America Apartment Communities, Inc. | | | 300 | | | | 39,474 | |
| Prologis, Inc. | | | 2,378 | | | | 309,663 | |
| Public Storage | | | 407 | | | | 118,054 | |
| Realty Income Corp. | | | 2,140 | | | | 115,774 | |
| Regency Centers Corp. | | | 423 | | | | 25,617 | |
| See Notes to Financial Statements. | |
| Annual Report | March 31, 2024 | 9 |
| ONEFUND S&P 500® | Schedule of Investments |
| | March 31, 2024 |
| | |
| | | Shares | | | Fair Value | |
| Real Estate (Continued) | | | | | | | | |
| SBA Communications Corp., Class A | | | 278 | | | $ | 60,243 | |
| Simon Property Group, Inc. | | | 839 | | | | 131,295 | |
| UDR, Inc. | | | 779 | | | | 29,142 | |
| Ventas, Inc. | | | 1,036 | | | | 45,107 | |
| VICI Properties, Inc. | | | 2,663 | | | | 79,331 | |
| Welltower, Inc. | | | 1,424 | | | | 133,059 | |
| Weyerhaeuser Co. | | | 1,878 | | | | 67,439 | |
| | | | | | | | 2,481,041 | |
| Technology — 32.70% | | | | | | | | |
| Accenture PLC, Class A | | | 1,614 | | | | 559,429 | |
| Adobe, Inc.(a) | | | 1,163 | | | | 586,850 | |
| Advanced Micro Devices, Inc.(a) | | | 4,159 | | | | 750,658 | |
| Akamai Technologies, Inc.(a) | | | 388 | | | | 42,199 | |
| Analog Devices, Inc. | | | 1,276 | | | | 252,380 | |
| ANSYS, Inc.(a) | | | 224 | | | | 77,764 | |
| Apple, Inc. | | | 37,358 | | | | 6,406,149 | |
| Applied Materials, Inc. | | | 2,141 | | | | 441,538 | |
| Arista Networks, Inc.(a) | | | 649 | | | | 188,197 | |
| Autodesk, Inc.(a) | | | 551 | | | | 143,491 | |
| Automatic Data Processing, Inc. | | | 1,057 | | | | 263,975 | |
| Broadcom, Inc. | | | 1,133 | | | | 1,501,690 | |
| Broadridge Financial Solutions, Inc. | | | 303 | | | | 62,073 | |
| Cadence Design Systems, Inc.(a) | | | 700 | | | | 217,896 | |
| CDW Corp. | | | 345 | | | | 88,244 | |
| Ceridian HCM Holding, Inc.(a) | | | 402 | | | | 26,616 | |
| Cisco Systems, Inc. | | | 10,458 | | | | 521,959 | |
| Cognizant Technology Solutions Corp., Class A | | | 1,282 | | | | 93,958 | |
| Corning, Inc. | | | 1,976 | | | | 65,129 | |
| Corpay, Inc.(a) | | | 186 | | | | 57,388 | |
| CoStar Group, Inc.(a) | | | 1,051 | | | | 101,527 | |
| EPAM Systems, Inc.(a) | | | 149 | | | | 41,148 | |
| Equifax, Inc. | | | 317 | | | | 84,804 | |
| F5, Inc.(a) | | | 151 | | | | 28,628 | |
| FactSet Research Systems, Inc. | | | 98 | | | | 44,530 | |
| Fair Isaac Corp.(a) | | | 64 | | | | 79,975 | |
| Fidelity National Information Services, Inc. | | | 1,525 | | | | 113,125 | |
| Fiserv, Inc.(a) | | | 1,545 | | | | 246,922 | |
| Fortinet, Inc.(a) | | | 1,640 | | | | 112,028 | |
| Garmin Ltd. | | | 394 | | | | 58,655 | |
| Gartner, Inc.(a) | | | 201 | | | | 95,811 | |
| Global Payments, Inc. | | | 670 | | | | 89,552 | |
| Hewlett Packard Enterprise Co. | | | 3,346 | | | | 59,325 | |
| HP, Inc. | | | 2,244 | | | | 67,814 | |
| Intel Corp. | | | 10,882 | | | | 480,658 | |
| International Business Machines Corp. | | | 2,355 | | | | 449,711 | |
| Intuit, Inc. | | | 720 | | | | 468,000 | |
| Jabil, Inc. | | | 328 | | | | 43,936 | |
| Jack Henry & Associates, Inc. | | | 188 | | | | 32,661 | |
| Juniper Networks, Inc. | | | 828 | | | | 30,686 | |
| | | Shares | | | Fair Value | |
| Technology (Continued) | | | | | | | | |
| KLA Corp. | | | 348 | | | $ | 243,102 | |
| Lam Research Corp. | | | 337 | | | | 327,419 | |
| Leidos Holdings, Inc. | | | 354 | | | | 46,406 | |
| MarketAxess Holdings, Inc. | | | 98 | | | | 21,487 | |
| MasterCard, Inc., Class A | | | 2,123 | | | | 1,022,373 | |
| Microchip Technology, Inc. | | | 1,391 | | | | 124,787 | |
| Micron Technology, Inc. | | | 2,841 | | | | 334,925 | |
| Microsoft Corp. | | | 19,124 | | | | 8,045,850 | |
| Monolithic Power Systems, Inc. | | | 124 | | | | 84,000 | |
| Moody’s Corp. | | | 405 | | | | 159,177 | |
| Motorola Solutions, Inc. | | | 427 | | | | 151,576 | |
| MSCI, Inc. | | | 204 | | | | 114,332 | |
| NetApp, Inc. | | | 530 | | | | 55,634 | |
| NortonLifeLock, Inc. | | | 1,443 | | | | 32,323 | |
| NVIDIA Corp. | | | 6,357 | | | | 5,743,930 | |
| NXP Semiconductors NV | | | 663 | | | | 164,272 | |
| ON Semiconductor Corp.(a) | | | 1,100 | | | | 80,905 | |
| Oracle Corp. | | | 4,103 | | | | 515,378 | |
| Palo Alto Networks, Inc.(a) | | | 811 | | | | 230,429 | |
| Paychex, Inc. | | | 824 | | | | 101,187 | |
| Paycom Software, Inc. | | | 124 | | | | 24,677 | |
| PayPal Holdings, Inc.(a) | | | 2,758 | | | | 184,758 | |
| PTC, Inc.(a) | | | 308 | | | | 58,194 | |
| Qorvo, Inc.(a) | | | 248 | | | | 28,478 | |
| Qualcomm, Inc. | | | 2,872 | | | | 486,230 | |
| S&P Global, Inc. | | | 827 | | | | 351,847 | |
| Salesforce, Inc. | | | 2,491 | | | | 750,240 | |
| Seagate Technology PLC | | | 501 | | | | 46,618 | |
| ServiceNow, Inc.(a) | | | 528 | | | | 402,547 | |
| Skyworks Solutions, Inc. | | | 412 | | | | 44,628 | |
| Super Micro Computer, Inc.(a) | | | 125 | | | | 126,254 | |
| Synopsys, Inc.(a) | | | 393 | | | | 224,600 | |
| Teradyne, Inc. | | | 393 | | | | 44,342 | |
| Texas Instruments, Inc. | | | 2,340 | | | | 407,651 | |
| Tyler Technologies, Inc.(a) | | | 108 | | | | 45,901 | |
| Verisk Analytics, Inc. | | | 373 | | | | 87,927 | |
| Visa, Inc., Class A | | | 4,071 | | | | 1,136,134 | |
| Western Digital Corp.(a) | | | 835 | | | | 56,980 | |
| Zebra Technologies Corp., Class A(a) | | | 132 | | | | 39,790 | |
| | | | | | | | 37,224,367 | |
| Utilities — 2.20% | | | | | | | | |
| AES Corp. | | | 1,723 | | | | 30,893 | |
| Alliant Energy Corp. | | | 657 | | | | 33,113 | |
| Ameren Corp. | | | 677 | | | | 50,071 | |
| American Electric Power Co., Inc. | | | 1,353 | | | | 116,493 | |
| American Water Works Co., Inc. | | | 501 | | | | 61,227 | |
| Atmos Energy Corp. | | | 388 | | | | 46,122 | |
| CenterPoint Energy, Inc. | | | 1,625 | | | | 46,296 | |
| CMS Energy Corp. | | | 758 | | | | 45,738 | |
| Consolidated Edison, Inc. | | | 888 | | | | 80,639 | |
| Constellation Energy Corp. | | | 822 | | | | 151,947 | |
| See Notes to Financial Statements. |
| 10 | www.ONEFUND.io |
| ONEFUND S&P 500® | Schedule of Investments |
| | March 31, 2024 |
| | |
| | | Shares | | | Fair Value | |
| Utilities (Continued) | | | | | | | | |
| Dominion Energy, Inc. | | | 2,154 | | | $ | 105,955 | |
| DTE Energy Co. | | | 531 | | | | 59,546 | |
| Duke Energy Corp. | | | 1,984 | | | | 191,873 | |
| Edison International | | | 987 | | | | 69,811 | |
| Entergy Corp. | | | 544 | | | | 57,490 | |
| Evergy, Inc. | | | 591 | | | | 31,548 | |
| Eversource Energy | | | 899 | | | | 53,733 | |
| Exelon Corp. | | | 2,562 | | | | 96,254 | |
| FirstEnergy Corp. | | | 1,329 | | | | 51,326 | |
| NextEra Energy, Inc. | | | 5,281 | | | | 337,509 | |
| Nisource, Inc. | | | 1,064 | | | | 29,430 | |
| NRG Energy, Inc. | | | 581 | | | | 39,328 | |
| PG&E Corp. | | | 5,491 | | | | 92,029 | |
| Pinnacle West Capital Corp. | | | 292 | | | | 21,821 | |
| PPL Corp. | | | 1,897 | | | | 52,224 | |
| Public Service Enterprise Group, Inc. | | | 1,283 | | | | 85,679 | |
| Sempra Energy | | | 1,620 | | | | 116,365 | |
| Southern Co. (The) | | | 2,807 | | | | 201,374 | |
| WEC Energy Group, Inc. | | | 812 | | | | 66,681 | |
| Xcel Energy, Inc. | | | 1,420 | | | | 76,325 | |
| | | | | | | | 2,498,840 | |
| Total Common Stocks (Cost $78,657,066) | | | | | | | 113,433,691 | |
| | | Shares | | | Fair Value | |
| EXCHANGE-TRADED FUNDS — 0.06% | | | | | | | | |
| SPDR® S&P 500® ETF Trust | | | 140 | | | $ | 73,230 | |
| Total Exchange—Traded Funds (Cost $71,263) | | | | | | | 73,230 | |
| Total Investments — 99.73% (Cost $78,728,329) | | | | | | | 113,506,921 | |
| Other Assets in Excess of Liabilities — 0.27% | | | | | | | 302,778 | |
| NET ASSETS — 100.00% | | | | | | $ | 113,809,699 | |
| | | | | | | | | |
| (a) | Non-income producing security. |
| See Notes to Financial Statements. |
| Annual Report | March 31, 2024 | 11 |
| ONEFUND S&P 500® | Statement of Assets and Liabilities |
| | March 31, 2024 |
| | |
| ASSETS: | | | | |
| Investments in securities at fair value (cost $78,728,329) | | $ | 113,506,921 | |
| Cash and cash equivalents | | | 102,785 | |
| Receivable for fund shares sold | | | 83,513 | |
| Dividends receivable | | | 70,375 | |
| Tax reclaims receivable | | | 503 | |
| Receivable from Investment Adviser | | | 117,794 | |
| Prepaid expenses | | | 38,234 | |
| Total Assets | | | 113,920,125 | |
| LIABILITIES: | | | | |
| Payable for fund shares redeemed | | | 94,044 | |
| Payable to Administrator | | | 12,565 | |
| Payable to trustees | | | 2,921 | |
| Other accrued expenses | | | 896 | |
| Total Liabilities | | | 110,426 | |
| NET ASSETS | | $ | 113,809,699 | |
| NET ASSETS CONSIST OF: | | | | |
| Paid-in capital | | | 78,931,074 | |
| Accumulated earnings | | | 34,878,625 | |
| NET ASSETS | | $ | 113,809,699 | |
| Shares of beneficial interest outstanding, without par value | | | 2,283,257 | |
| Net asset value, offering and redemption price per share | | $ | 49.85 | |
| | | | | |
| See Notes to Financial Statements. |
| 12 | www.ONEFUND.io |
| ONEFUND S&P 500® | Statement of Operations |
| | For the Year Ended March 31, 2024 |
| | |
| INVESTMENT INCOME: | | | | |
| Dividend income (net of foreign taxes withheld of $66) | | $ | 1,809,018 | |
| Total investment income | | | 1,809,018 | |
| | | | | |
| EXPENSES: | | | | |
| Investment Adviser fees (Note 3) | | | 259,241 | |
| Fund accounting and administration fees | | | 110,000 | |
| Legal fees | | | 70,857 | |
| Chief compliance officer fees | | | 55,746 | |
| Printing and postage expenses | | | 47,540 | |
| Registration expenses | | | 44,867 | |
| Transfer agent fees | | | 40,372 | |
| Insurance expenses | | | 33,446 | |
| Audit and tax preparation fees | | | 20,825 | |
| Custodian fees | | | 15,006 | |
| Pricing | | | 11,735 | |
| Trustee fees and expenses | | | 1,036 | |
| Miscellaneous expenses | | | 19,847 | |
| Total expenses | | | 730,518 | |
| Fees waived/reimbursed by Investment Adviser (Note 3) | | | (471,687 | ) |
| Net operating expenses | | | 258,831 | |
| NET INVESTMENT INCOME: | | | 1,550,187 | |
| | | | | |
| NET REALIZED AND CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS: | | | | |
| Net realized gain on Investments | | | 3,395,468 | |
| Net change in unrealized appreciation on investments | | | 13,073,375 | |
| NET REALIZED AND CHANGE IN UNREALIZED GAIN ON INVESTMENTS | | | 16,468,843 | |
| NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 18,019,030 | |
| | | | | |
| See Notes to Financial Statements. |
| Annual Report | March 31, 2024 | 13 |
| ONEFUND S&P 500® | Statements of Changes in Net Assets |
| | |
| | | For the | | | For the | |
| | | Year | | | Year | |
| | | Ended | | | Ended | |
| | | March 31, | | | March 31, | |
| | | 2024 | | | 2023 | |
| INCREASE (DECREASE) IN NET ASSETS DUE TO: | | | | | | | | |
| OPERATIONS: | | | | | | | | |
| Net investment income | | $ | 1,550,187 | | | $ | 1,608,094 | |
| Net realized gain (loss) on investments | | | 3,395,468 | | | | (1,269,938 | ) |
| Net change in unrealized appreciation (depreciation) on investments | | | 13,073,375 | | | | (6,843,597 | ) |
| Net increase (decrease) in net assets resulting from operations | | | 18,019,030 | | | | (6,505,441 | ) |
| | | | | | | | | |
| Distributions to shareholders from earnings | | | (1,640,220 | ) | | | (3,101,494 | ) |
| | | | | | | | | |
| CAPITAL TRANSACTIONS | | | | | | | | |
| Proceeds from shares sold | | | 20,046,696 | | | | 22,388,785 | |
| Reinvestment of distributions | | | 1,618,975 | | | | 3,060,343 | |
| Amount paid for shares redeemed | | | (25,686,500 | ) | | | (16,662,661 | ) |
| Proceeds from redemption fees(a) | | | 2,327 | | | | 2,628 | |
| Net increase (decrease) in net assets resulting from capital transactions | | | (4,018,502 | ) | | | 8,789,095 | |
| Total Increase (Decrease) in Net Assets | | | 12,360,308 | | | | (817,840 | ) |
| | | | | | | | | |
| NET ASSETS | | | | | | | | |
| Beginning of year | | | 101,449,391 | | | | 102,267,231 | |
| End of year | | $ | 113,809,699 | | | $ | 101,449,391 | |
| | | | | | | | | |
| SHARE TRANSACTIONS | | | | | | | | |
| Shares sold | | | 450,122 | | | | 521,607 | |
| Shares issued in reinvestment of distributions | | | 36,381 | | | | 71,570 | |
| Shares redeemed | | | (576,925 | ) | | | (388,236 | ) |
| Net increase (decrease) in shares outstanding | | | (90,422 | ) | | | 204,941 | |
| | | | | | | | | |
| (a) | The Fund charges a 0.25% redemption fee on shares redeemed within 30 calendar days of purchase. Shares are redeemed at the Net Asset Value if held longer than 30 calendar days. |
| See Notes to Financial Statements. |
| 14 | www.ONEFUND.io |
| ONEFUND S&P 500® | Financial Highlights |
| (For a share outstanding during each year) |
| | |
| | | For the Year | | | For the Year | | | For the Year | | | For the Year | | | For the Year | |
| | | Ended | | | Ended | | | Ended | | | Ended | | | Ended | |
| | | March 31, 2024 | | | March 31, 2023 | | | March 31, 2022 | | | March 31, 2021 | | | March 31, 2020 | |
| SELECTED PER SHARE DATA | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 42.74 | | | $ | 47.16 | | | $ | 42.58 | | | $ | 25.34 | | | $ | 31.19 | |
| | | | | | | | | | | | | | | | | | | | | |
| Investment operations: | | | | | | | | | | | | | | | | | | | | |
| Net investment income(a) | | | 0.66 | | | | 0.71 | | | | 0.63 | | | | 0.56 | | | | 0.60 | |
| Net realized and unrealized gain (loss) on investments | | | 7.16 | | | | (3.78 | ) | | | 4.83 | | | | 17.25 | | | | (5.90 | ) |
| Total from investment operations | | | 7.82 | | | | (3.07 | ) | | | 5.46 | | | | 17.81 | | | | (5.30 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Less distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.71 | ) | | | (0.50 | ) | | | (0.53 | ) | | | (0.58 | ) | | | (0.55 | ) |
| Net realized gains | | | — | | | | (0.85 | ) | | | (0.35 | ) | | | — | | | | — | |
| Total distributions | | | (0.71 | ) | | | (1.35 | ) | | | (0.88 | ) | | | (0.58 | ) | | | (0.55 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Paid in capital from redemption fees | | | — | (b) | | | — | (b) | | | — | (b) | | | 0.01 | | | | — | (b) |
| Net asset value, end of year | | $ | 49.85 | | | $ | 42.74 | | | $ | 47.16 | | | $ | 42.58 | | | $ | 25.34 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Return(c) | | | 18.48 | % | | | (6.52 | )% | | | 12.83 | % | | | 70.67 | % | | | (17.44 | )% |
| | | | | | | | | | | | | | | | | | | | | |
| Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (000 omitted) | | $ | 113,810 | | | $ | 101,449 | | | $ | 102,267 | | | $ | 70,202 | | | $ | 39,322 | |
| Ratio of expenses to average net assets after expense waiver | | | 0.25 | % | | | 0.25 | % | | | 0.25 | % | | | 0.25 | % | | | 0.25 | % |
| Ratio of expenses to average net assets before expense waiver | | | 0.71 | % | | | 0.65 | % | | | 0.66 | % | | | 0.86 | % | | | 1.12 | % |
| Ratio of net investment income to average net assets after expense waiver | | | 1.50 | % | | | 1.66 | % | | | 1.37 | % | | | 1.61 | % | | | 1.87 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Portfolio turnover rate | | | 81 | % | | | 42 | % | | | 60 | % | | | 96 | % | | | 76 | % |
| | | | | | | | | | | | | | | | | | | | | |
| (a) | Calculated using the average shares method. |
| (b) | Rounds to less than $0.005 per share. |
| (c) | Total return represents the rate that the investor would have earned or lost on an investment in the Fund, assuming reinvestment of distributions. |
| See Notes to Financial Statements. |
| Annual Report | March 31, 2024 | 15 |
| ONEFUND S&P 500® | Notes to Financial Statements |
| | March 31, 2024 |
The ONEFUND S&P 500® (formerly known as the ONEFUND S&P 500® Equal Weight Index) (the “Fund”) is a separate series of ONEFUND TRUST (formerly known as Index Funds), an open-end management investment company that was organized as a trust under the laws of the State of Delaware on November 9, 2005 (the “Trust”). The Trust currently has two series, one of which is covered by this report. The Fund currently offers one class of shares: No Load Shares. The Fund is diversified, as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”).
The Fund seeks to achieve its investment objective by investing in a portfolio of assets whose performance, before fees and expenses, is expected to match approximately the performance of the S&P 500® (the “Index”). The Fund expects that its portfolio will consist primarily of securities of issuers included in the Index. The Index is designed to measure the performance of approximately 500 U.S. issuers chosen for market size, liquidity and industry grouping, among other factors.
| 2. | SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with accounting principles generally accepted in The United States of America (“GAAP”). The Fund is an investment company and accordingly follows the Investment Company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, “Financial Services-Investment Companies.”
Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Investment Transactions — Investment security transactions are accounted for on trade date. Gains and losses on securities sold are determined on a specific identification basis.
Investment Income — Dividend income is recorded on the ex-dividend date. Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates. Interest income, which includes amortization of premium and accretion of discount, is recorded on the accrual basis.
Investment Valuation — The Fund’s portfolio securities are valued as of the close of trading of the New York Stock Exchange (“NYSE”) (normally 4:00 p.m., Eastern Time). Each security, excluding short-term investments, is valued at the last sale price reported by the principal security exchange on which the issue is traded. Money market funds, representing short-term investments, are valued at their daily net asset value. Securities that are traded on the Nasdaq Stock Market, Inc. are valued at the Nasdaq Official Closing Price or if no sale is reported, the mean between the bid and the ask. Securities which are traded over-the-counter are valued at the last sale price or, if no sale, at the mean between the bid and the ask. Securities for which quotations are not readily available are valued at fair value as determined by the Fund’s investment adviser, as the Valuation Designee appointed by the Board of Trustees (the “Board”), in accordance with procedures approved by the Board. The fair value of a security is the amount which the Fund might reasonably expect to receive upon a current sale. The fair value of a security may differ from the last quoted price and the Fund may not be able to sell a security at the fair value. Market quotations may not be available, for example, if trading in particular securities was halted during the day and not resumed prior to the close of trading on the NYSE. As of March 31, 2024, there were no securities that were internally fair valued.
Fair Value Measurements — A three-tier hierarchy has been established to classify fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available. In accordance with the authoritative guidance on fair value measurements and disclosure under GAAP, the Fund discloses fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value.
| ONEFUND S&P 500® | Notes to Financial Statements |
| | March 31, 2024 |
Various inputs are used in determining the value of the Fund’s investments as of the reporting period end. These inputs are categorized in the following hierarchy under applicable financial accounting standards:
| | Level 1 — | Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Fund has the ability to access at the measurement date; |
| | |
| | Level 2 — | Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and |
| | |
| | Level 3 — | Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date. |
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
An investment level within the fair value hierarchy is based on the lowest level input, individually or in the aggregate, that is significant to fair value measurement. The valuation techniques used by the Fund to measure fair value during the fiscal year ended March 31, 2024, maximized the use of observable inputs and minimized the use of unobservable inputs.
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk or liquidity associated with investing in those securities. The following is a summary of the inputs used in valuing the Fund’s investments as of March 31, 2024:
| Investments in Securities at Value | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Assets | | | | | | | | | | | | |
| Common Stocks* | | $ | 113,433,691 | | | $ | — | | | $ | — | | | $ | 113,433,691 | |
| Exchange-Traded Funds | | | 73,230 | | | | — | | | | — | | | | 73,230 | |
| TOTAL | | $ | 113,506,921 | | | $ | — | | | $ | — | | | $ | 113,506,921 | |
| * | See Schedule of Investments for sector classifications. |
The Fund did not hold any investments at the end of the reporting period for which significant unobservable inputs (Level 3) were used in determining fair value; therefore, no reconciliation of Level 3 securities is included for this reporting period.
Cash and Cash Equivalents — Idle cash may be swept into various interest bearing overnight demand deposits and is classified as a cash equivalent on the Statement of Assets and Liabilities. The Fund maintains cash in bank deposit accounts which, at times, may exceed United States federally insured limit of $250,000. Amounts swept overnight are available on the next business day.
Expenses — The Fund bears expenses incurred specifically for the Fund and general Trust expenses. Expenses of the Trust which are not attributable to a specific series are allocated among all of their series in a manner deemed by the Trustees to be fair and equitable.
Distributions to Shareholders — Dividends from net investment income and distributions of net realized capital gains, if any, will be declared and paid at least annually. Income and capital gains distributions are determined in accordance with income tax regulations, which may differ from GAAP. Distributions to shareholders are recorded on the ex-dividend date.
Fees on Redemptions — The Fund charges a redemption fee of 0.25% on redemptions of Fund’s shares occurring within 30 days following the issuance of such shares. The redemption fee is not a fee to finance sales or sales promotion expenses but is paid to the Fund to defray the costs of liquidating an investor and discourage short-term trading of the Fund’s shares. No redemption fee will be imposed on the redemption of shares representing dividends or capital gains distributions, or on amounts representing capital appreciation of shares.
Federal Income Taxes — As of and during the fiscal year ended March 31, 2024 the Fund did not have a liability for any unrecognized tax benefits. The Fund files U.S. federal, state, and local tax returns as required. The Fund’s tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations which is generally three years after the filing of the tax return for federal purposes and four years for most state returns. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes. Therefore, no provision is made by the Fund for federal income or excise taxes. The Fund intends to continue to qualify each year as a “regulated investment company” under Subchapter M of the Internal Revenue Code of 1986, as amended. By so qualifying, the Fund will not be subject to federal income taxes to the extent that it distributes substantially all of its taxable or tax-exempt income, if any, for its tax year ended March 31, 2024. In addition, by distributing in each calendar year substantially all of its net investment income, capital gains and certain other amounts, if any, the Fund will not be subject to a federal excise tax. Interest or penalties, if any, will be recorded in the Statement of Operations when incurred.
| Annual Report | March 31, 2024 | 17 |
| ONEFUND S&P 500® | Notes to Financial Statements |
| | March 31, 2024 |
| 3. | ADVISORY FEES, ADMINISTRATION FEES AND OTHER AGREEMENTS |
Investment Advisory Agreement — ONEFUND, LLC (the “Adviser”) currently provides investment advisory services for individuals, trusts, estates and institutions. The Adviser commenced operations in 2004 and is registered as an investment adviser with the Securities and Exchange Commission. The Adviser is entitled to an investment advisory fee, computed daily and payable monthly, of 0.25% of the average daily net assets of the Fund. Mike Willis, an officer and trustee of the Trust is also an officer of the Adviser.
The Adviser has agreed to waive and/or reimburse fees or expenses in order to limit total annual fund operating expenses after fee waiver/expense reimbursement (excluding acquired fund fees and expenses, brokerage expenses, interest expenses, taxes and extraordinary expenses) to 0.25% of the Fund’s average daily net assets for No Load Shares. The Adviser intends to reimburse fund expenses no less frequently than on a quarterly basis, but there have been and there may continue to be instances where the Adviser reimburses fund expenses on a less frequent basis. This agreement is in effect through November 15, 2024, and may not be terminated or modified by the Adviser prior to this date except with the approval of the Fund’s Board. Amounts previously waived or reimbursed by the Adviser under this agreement are not subject to subsequent recapture by the Adviser.
Fund Accounting and Administration Fees and Expenses — Ultimus Fund Solutions, LLC (“Ultimus” or the “Administrator”) provides administrative, fund accounting and other services to the Fund under a Master Services Agreement with the Trust (the “Master Services Agreement”). Under the Master Services Agreement, Ultimus is paid fees for its services and is reimbursed for certain out-of-pocket expenses. Administrator fees paid by the Fund for the fiscal year ended March 31, 2024 are disclosed in the Statement of Operations.
Transfer Agent and Shareholder Services Agreement — Ultimus serves as transfer, dividend paying and shareholder servicing agent for the Fund (the “Transfer Agent”) under the Master Services Agreement. Transfer Agent fees paid by the Fund for the year ended March 31, 2024 are disclosed in the Statement of Operations.
Compliance Services — PINE Advisor Solutions (“PINE”) provides a Chief Compliance Officer to the Trust, as well as related compliance services, pursuant to a consulting agreement between PINE and the Trust. Under the terms of such agreement, PINE receives fees from the Fund, which are approved annually by the Board. Prior to June 29, 2023, Northern Lights Compliance Services, LLC (“NLCS”), an affiliate of Ultimus, provided a Chief Compliance Officer to the Trust, as well as related compliance services.
Distributor — The Fund has entered into a Distribution Agreement with Ultimus Fund Distributors, LLC (the “Distributor”) to provide distribution services to the Fund. The Distributor serves as underwriter/distributor of shares of the Fund. Distribution services fees are paid by the Adviser pursuant to the terms set forth in the Distribution Agreement.
| 4. | PURCHASES AND SALES OF INVESTMENT SECURITIES |
The aggregate cost of purchases and proceeds from sales of investment securities, excluding short-term securities, are shown below for the fiscal year ended March 31, 2024.
| | | Cost of
Investments
Purchased | | | Proceeds from
Investments Sold | |
| ONEFUND S&P 500® | | $ | 84,296,621 | | | $ | 88,656,495 | |
Distributions are determined in accordance with federal income tax regulations, which differ from GAAP, and, therefore, may differ significantly in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character but are not adjusted for temporary differences. The amounts and characteristics of tax basis distributions and composition of distributable earnings/(accumulated losses) are finalized at fiscal year-end.
The tax character of distributions paid during the fiscal year ended March 31, 2024, were as follows:
| | | | | | Long-Term | |
| | | Ordinary Income | | | Capital Gains | |
| ONEFUND S&P 500® | | $ | 1,640,220 | | | $ | — | |
| ONEFUND S&P 500® | Notes to Financial Statements |
| | March 31, 2024 |
The tax character of distributions paid during the fiscal year ended March 31, 2023, were as follows:
| | | Ordinary Income | | | Long-Term
Capital Gains | |
| ONEFUND S&P 500® | | $ | 2,323,947 | | | $ | 777,547 | |
As of March 31, 2024, net unrealized appreciation/(depreciation) of investments based on the federal tax cost were as follows:
| | | Gross Appreciation
(excess of value
over tax cost) | | | Gross Depreciation
(excess of tax cost
over value) | | | Net Unrealized
Appreciation | | | Cost of
Investments for
Income Tax
Purposes | |
| ONEFUND S&P 500® | | $ | 34,609,687 | | | $ | (1,084,625 | ) | | $ | 33,525,062 | | | $ | 79,981,859 | |
The difference between book basis and tax basis cost is primarily attributable to wash sales.
At March 31, 2024, components of distributable earnings on a tax basis were as follows:
| | | ONEFUND S&P 500® | |
| Accumulated ordinary income | | $ | 733,930 | |
| Accumulated long term capital gains | | | 619,633 | |
| Net unrealized appreciation on investments | | | 33,525,062 | |
| Total | | $ | 34,878,625 | |
Capital Losses — As of March 31, 2024, the Fund did not have any short-term and long-term capital loss carryforwards. During the fiscal year ended March 31, 2024, the Fund utilized short-term and long-term capital loss carryforwards of $466,593 and $687,454, respectively.
As of March 31, 2024, the following entities owned beneficially 25% or greater of the Fund’s outstanding shares. The shares are held under omnibus accounts (whereby the transactions of two or more shareholders are combined and carried in the name of the origination broker rather than designated separately).
| ONEFUND S&P 500® | | Percentage |
| Charles Schwab & Co. | | 68% |
If a Fund has significant investments in the securities of issuers within a particular sector, any development affecting that sector will have a greater impact on the value of the net assets of the Fund than would be the case if the Fund did not have significant investments in that sector. In addition, this may increase the risk of loss in the Fund and increase the volatility of the Fund’s NAV per share. For instance, economic or market factors, regulatory changes or other developments may negatively impact all companies in a particular sector, and therefore the value of the Fund’s portfolio will be adversely affected. As of March 31, 2024, the Fund had 32.70% of the value of its net assets invested in stocks within the Technology sector.
| 8. | COMMITMENTS AND CONTINGENCIES |
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, in the normal course of business, the Trust entered into contracts with its service providers, on behalf of the Fund, and others that provide for general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. The Fund expects the risk of loss to be remote.
| Annual Report | March 31, 2024 | 19 |
| ONEFUND S&P 500® | Notes to Financial Statements |
| | March 31, 2024 |
Tailored Shareholder Reports for Mutual Funds and Exchange-Traded Funds (“ETFs”) – Effective January 24, 2023, the Securities and Exchange Commission (the “SEC”) adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024.
Management of the Fund has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date at which these financial statements were issued. Based upon this evaluation, management has determined there were no items requiring adjustment of the financial statements or additional disclosure.
| Report of Independent |
| ONEFUND S&P 500® | Registered Public Accounting Firm |
To the Shareholders of ONEFUND S&P 500® and
Board of Trustees of ONEFUND Trust
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of ONEFUND S&P 500® (formerly ONEFUND S&P 500® Equal Weight Index) (the “Fund”), a series of ONEFUND Trust, as of March 31, 2024, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of March 31, 2024, the results of its operations for the year then ended, the changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of March 31, 2024, by correspondence with the custodian. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more investment companies within the Trust since 2006.
COHEN & COMPANY, LTD.
Milwaukee, Wisconsin
May 30, 2024
| Annual Report | March 31, 2024 | 21 |
| | Disclosure Regarding Approval of |
| ONEFUND S&P 500® | Advisory Agreement |
| | March 31, 2024 (Unaudited) |
At a meeting held on March 28, 2024, the Board of Trustees, including all of the Independent Trustees, considered whether to approve the continuance of the Investment Advisory Agreement between ONEFUND, LLC (the “Adviser”) and ONEFUND Trust (the “Trust”), on behalf of the ONEFUND S&P 500® (formerly known as the ONEFUND S&P 500® Equal Weight Index)(the “Fund”).
In considering the approval of the continuance of the Investment Advisory Agreement, the Independent Trustees were advised by independent legal counsel and received materials from such counsel discussing the legal standards applicable to their consideration of the continuance of the Investment Advisory Agreement. In advance of the meeting, the Independent Trustees requested, received and reviewed a substantial amount of information provided by the Adviser related to the Adviser and the terms of the Investment Advisory Agreement. Prior to voting, the Independent Trustees met with and asked questions of representatives of the Adviser and also discussed the Investment Advisory Agreement with their independent legal counsel.
In considering the approval of the continuance of the Investment Advisory Agreement, the Board, including the Independent Trustees, considered a variety of factors, including those described below. The determinations made with respect to the renewal of the Investment Advisory Agreement were based on each Trustee’s business judgment after consideration of all information presented to the Board. In its deliberations, the Board did not identify any single item that was paramount or controlling and individual Trustees may have attributed different weights to various factors. The Board considered all information available to them. The summary set forth below highlights a number of the key factors considered by the Board.
Nature, Extent, and Quality of Services. The Board examined the nature, extent, and quality of the services provided by the Adviser to the Fund. The Board reviewed the information presented in the Adviser’s memorandum, including a copy of the Adviser’s current Form ADV and information regarding the Adviser’s organizational structure and the personnel who service the Fund. The Board considered the responsibilities of the Adviser under the Investment Advisory Agreement. The Board also considered that the Trust’s President, Treasurer and Secretary is an employee of the Adviser and serves the Trust without additional compensation. The Board also evaluated the investment management experience of the Adviser.
The Board discussed the nature of the Adviser’s operations, the quality of the Adviser’s compliance infrastructure, and the experience and background of all key personnel on its management team, including the portfolio management team. The Board considered the Adviser’s capabilities and concluded that the Adviser has sufficient quality and depth of personnel, resources, investment methods, and compliance policies and procedures essential to performing its duties under the Investment Advisory Agreement and that the nature, overall quality, and extent of the management services provided by the Adviser to the Trust are satisfactory and adequate.
Performance. The Board compared the performance of the Fund with the performance of its benchmark index and the Fund’s limited peer group based on data presented by the Adviser. The Board noted that the Fund had outperformed its peer group since its inception (April 30, 2015) and that the Fund had underperformed its benchmark index during the same period. Following discussion of the investment performance of the Fund, the Adviser’s experience in managing the Fund and the impact of other factors, the Board concluded that the investment performance of the Fund has been satisfactory.
Fees and Expenses. The Board considered the advisory fee and the total expenses paid by the Fund. The Board reviewed a report provided by the Adviser showing the advisory fees and net expense ratios of a group of funds that the Adviser deemed comparable to the Fund. The Board evaluated the Fund’s advisory fee and net expense ratio in light of the comparative information with respect to fees paid by similar funds, noting that the Fund’s advisory fee and net expense ratio were below the average advisory fee and average net expense ratio paid by similar funds. The Board noted that the Adviser committed to renew the expense limitation agreement for the Fund and keep the Fund’s expense ratio at 0.25% of its average daily net assets. Based on these considerations and other factors, the Board concluded that the advisory fee charged by the Adviser was fair and reasonable for the services provided under the Investment Advisory Agreement.
Profitability. The Board considered the Adviser’s estimated profitability for the years ending December 31, 2024, 2025 and 2026 attributable to its management of the Fund, and considered information pertaining to the Adviser’s financial condition and commitment to the operation of the Fund. The Board noted that the Adviser had not accrued a profit since the Fund commenced operations in 2015 and that the Adviser did not expect to accrue a profit in 2024. The Board considered the Adviser’s ability to meet its obligations under the expense limitation agreement, as well as the Adviser’s liquidity, capital resources and proposed financings. The Board concluded that based on the services provided and the projected asset growth of the Fund, the profits from the Adviser’s relationship with the Fund were not excessive and not unreasonable to the Fund.
Economies of Scale. The Board considered that the Adviser has not realized economies of scale with respect to its management of the Fund and that the Adviser will not begin to realize economies of scale until the Fund achieves significant growth in assets. The Board will continue to consider whether economies of scale exist in the future as Fund assets grow.
Fall-out Benefits. The Board noted that the Adviser has not received any material fallout benefits from its relationship with the Fund at this stage.
Conclusion. Based on their consideration of all materials and information presented to them, the Board, including the Independent Trustees, concluded (without any single factor being identified as determinative) that: the quality of services provided by the Adviser is acceptable; the investment performance of the Fund has been satisfactory; the profit, if any, to be realized by the Adviser in connection with its management of the Fund was not unreasonable to the Fund; any economies of scale or other incidental benefits accruing to the Adviser were not material; the fees and expenses associated with the Fund are reasonable; and the continuance of the Investment Advisory Agreement is in the best interests of the Fund and its shareholders.
| ONEFUND S&P 500® | Summary of Fund Expenses |
| | March 31, 2024 (Unaudited) |
As a shareholder of the Fund, you may incur two types of costs: (1) transaction costs, including applicable redemption fees; and (2) ongoing costs, including management fees and other Fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 invested on October 1, 2023 and held until March 31, 2024.
Actual Expenses. The first line of the table below 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 “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes. The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The expenses shown in the table are meant to highlight ongoing Fund costs only and do not reflect transaction fees, such as redemption fees or exchange fees. Therefore, the second line of the table below is useful in comparing ongoing costs only, and may 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.
ONEFUND S&P 500® | | Beginning
Account Value
October 1, 2023 | | Ending
Account Value
March 31, 2024 | | Expenses
Paid During
Period(a) | | Annualized
Expense
Ratio |
| Actual | | $1,000.00 | | $1,201.10 | | $ 1.38 | | 0.25% |
| Hypothetical(b) | | $1,000.00 | | $1,023.75 | | $ 1.26 | | 0.25% |
| (a) | Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by (183/366) (to reflect the one-half year period). |
| (b) | Hypothetical assumes 5% annual return before expenses. |
| Annual Report | March 31, 2024 | 23 |
| ONEFUND S&P 500® | Additional Information |
| | March 31, 2024 (Unaudited) |
| 1. | PROXY VOTING POLICIES AND VOTING RECORD |
A copy of the Trust’s Proxy Voting and Disclosure Policy and the Adviser’s Proxy Voting and Disclosure Policy are included as Appendix B to the Fund’s Statement of Additional Information (dated November 15, 2023) and are available, (1) without charge, upon request, by calling 1-844-464-6339 and (2) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 will be available (1) without charge, upon request, by calling the Fund at the number above and (2) on the SEC’s website at www.sec.gov.
| 2. | QUARTERLY PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its report on Form N-PORT. These filings are available on the SEC’s website at www.sec.gov.
NOTICE TO STOCKHOLDERS
The Fund designates the following as a percentage of taxable ordinary income distributions, or up to the maximum amount allowable, for the calendar year ended December 31, 2023:
| Qualified Dividend Income: | | 100.00% |
| Dividend Received Deduction: | | 100.00% |
In early 2024, if applicable, stockholders of record received this information for the distributions paid to them by the Fund during the calendar year 2023 via Form 1099.
| ONEFUND S&P 500® | Trustees and Officers |
| | March 31, 2024 (Unaudited) |
| NON-INTERESTED TRUSTEES* |
Name, Address and
Age/Date of Birth | Position(s)
Held with
Fund | Term of Office
and Length of
Time Served | Principal Occupation(s) During Past 5
Years | Portfolios in
Fund Complex**
Overseen by
Trustee | Other Directorships
Held by Trustee
During Past 5 Years |
Lance J. Baller
(born 1974) | Trustee | Indefinite; since January 18, 2006 | President, Ultimate Investments Inc. (1995 to present); President, Baller Enterprises, Inc. (1993 to present); President, Baller Family Foundation (2014 to present); Secretary and Vice President, High Speed Aggregate, Inc., (2010 to present); President, Lakeview Village, Inc. (2010 – 2019); Secretary, HSA Bedrock LLC (2014 to present); Member, RM Investments, (2014 – 2017); President, High Speed Mining, LLC (2014 to present); Chairman, Iofina PLC (2014 to present); CEO and Director, Global Healthcare REIT (2015 to present); Vice President and Secretary, Empire Aggregate Inc. (2018 to present); President, Empire Leasing, Inc. (2018 to present); President, Titan Au, Inc. (2018 to present); Managing Member, Yukon Au LLC (2018 to present). | 2 | Co-Chairman, Eagle: XM; Director, Iofina PLC; Vice Chairman, NetAds International, Inc.; Director, Baylor Solar, (2014); Director, High Speed Mining (2014 – 2018); CEO and Director, Global Healthcare REIT (2015 to present); Director, Douglas County Soccer (2017 to present); Empire Au, Inc. (2018 to present); Director, GBB Management (2018 to present). |
Vijoy P. Chattergy
(born 1967) | Trustee | Indefinite; since April 3, 2020 | President and Founder, VMLH, LLC, (2018 to Present); Chief Investment Officer, Employees’ Retirement System of the State of Hawai’i (2011 – 2018). | 2 | None |
| INTERESTED TRUSTEE |
Michael Willis*
(born 1966) | Trustee | Indefinite; since January 18, 2006 | President of ONEFUND, LLC (formerly, The Index Group, LLC (2004 to present); Manager of Digital Funds, LLC (2021 to present). | 2 | None |
| * | Mr. Willis may be deemed an “interested person” of the Trust as that term is defined in the 1940 Act because of his ownership and control of the Adviser, and service as an officer of the Adviser. |
| ** | The “Fund Complex” includes all series of the Trust and any other investment companies for which the Adviser provides investment advisory services (currently two). |
| Annual Report | March 31, 2024 | 25 |
| ONEFUND S&P 500® | Trustees and Officers |
| | March 31, 2024 (Unaudited) |
The names of the officers, their addresses, ages, position(s) held with the Trust, and principal occupation(s) during the past five years are described in the table below.
| OFFICERS |
Name, Address and
Age/Date of Birth | Position(s)
Held with Fund | Term of Office and
Length of Time
Served | Principal Occupation(s) During Past 5 Years |
Michael Willis
(born 1966) | President, Treasurer and Secretary | Indefinite, Since January 18, 2006 (President), since November 25, 2009 (Treasurer and Secretary) | President of ONEFUND, LLC (formerly, The Index Group, LLC (2004 to present); Manager of Digital Funds, LLC (2021 to present). |
Randi Roessler
(born 1981) | Chief Compliance Officer | Indefinite, Since June 29, 2023 | Director, PINE Advisor Solutions (March 2023 to present); Chief Compliance Officer, Davis Selected Advisers, L.P., the Davis Funds, Selected and Clipper Funds, the Davis Select Fundamental ETF Trust and Davis Distributors, LLC (January 2018 to February 2023). |
Jesse D. Hallee
(born 1976) | Assistant Secretary | Indefinite, Since May 4, 2020 | Senior Vice President and Associate General Counsel, Ultimus Fund Solutions, LLC (August 2022 to present); Vice President and Senior Managing Counsel, Ultimus Fund Solutions, LLC (June 2019 to August 2022); Vice President and Managing Counsel, State Street Bank and Trust Company (March 2013 to June 2019). |
ONEFUND S&P 500® | Privacy Policy |
| | March 31, 2024 (Unaudited) |
| FACTS | WHAT DOES ONEFUND S&P 500® (THE “FUND”) DO WITH YOUR PERSONAL INFORMATION? |
| Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
| What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: ● Social Security number and name and address ● Account balances and transaction history ● Wire transfer instructions When you are no longer our investor, we continue to share your information as described in this notice. |
| How? | All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons the Fund chooses to share; and whether you can limit this sharing. |
| Reasons we can share your personal information | Does the Fund share? | Can you limit this
sharing? |
For our everyday business purposes — such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes — to offer our products and services to you | No | We don’t share |
| For joint marketing with other financial companies | No | We don’t share |
For our affiliates’ everyday business purposes — information about your transactions and experiences | Yes | No |
For our affiliates’ everyday business purposes — information about your creditworthiness | No | We don’t share |
| For nonaffiliates to market to you | No | We don’t share |
| Questions? | Call 1-844-464-6339 |
| | | | |
| Annual Report | March 31, 2024 | 27 |
ONEFUND S&P 500® | Privacy Policy |
| | March 31, 2024 (Unaudited) |
| Who We Are |
| Who is providing this notice? | ONEFUND S&P 500® (the “Fund”) |
| What We Do |
| How does the Fund protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that seek to comply with federal law. These measures include computer safeguards and secured files and buildings. |
| How does the Fund collect my personal information? | We collect your personal information, for example, when you ● Open an account ● Provide account information or give us your contact information ● Make a wire transfer or deposit money |
| Why can’t I limit all sharing? | Federal law gives you the right to limit only ● sharing for affiliates’ everyday business purposes — information about your creditworthiness ● affiliates from using your information to market to you ● sharing for nonaffiliates to market to you State laws and individual companies may give you additional rights to limit sharing. |
| Definitions |
| Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies. |
| Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. ● Nonaffiliates can include third parties who perform services on our behalf, such as accounting, legal or data processing services. |
| Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. ● The Fund doesn’t jointly market |
Page Intentionally Left Blank.
| |
| Must be accompanied or preceded by a Prospectus. ONEFUND |
| TRUST is distributed by Ultimus Fund Distributors, LLC. ONEFUND |
| TRUST and Ultimus Fund Distributors, LLC are not affiliated. |
| |
Index Funds-AR-24
Item 2. Code of Ethics.
(a) The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions regardless of whether these individuals are employed by the registrant or a third party.
(b) Not applicable.
(c) During the period covered by this report, no amendments were made to the provisions of the code of ethics adopted in Item 2(a) above. The code of Ethics is attached here as Exhibit EX-99.CODE ETH.
(d) Not applicable.
(e) A copy of the registrant’s code of ethics is filed as Exhibit 12(a)(1) to this report.
Item 3. Audit Committee Financial Expert.
The Board of Trustees has evaluated the members of its Audit Committee, and has determined that Lance J. Baller, a trustee who is not an ‘interested person’ (as such term is defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended), qualifies as an audit committee financial expert.
Item 4. Principal Accountant Fees and Services.
| (a) | Audit Fees: The aggregate fees billed for the registrant's fiscal years ended March 31, 2024 and March 31, 2023 for professional services rendered by the registrant’s principal accountant for audit of its annual financial statements or services that are normally provided by such accountant in connection with statutory and regulatory filings were $15,500, and $15,500 respectively. |
| (b) | Audit-Related Fees: The aggregate fees billed for the registrant's fiscal years ended March 31, 2024 and March 31, 2023 for assurance and related services by the registrant’s principal accountant reasonably related to the performance of audit of the registrant's financial statements and not reported under Paragraph (a) of this Item were $0 and $0 respectively. Such services consisted of a report of the Fund’s transfer agent internal controls pursuant to rule 17AD-13, semi-annual report review and a report on the Fund’s anti-money laundering controls and policies. |
(c) Tax Fees: For the registrant’s fiscal years ended March 31, 2024 and March 31, 2023, the aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning were $3,500 and $3,500 respectively. The fiscal year 2024 and 2023 tax fees were for review of each fund’s federal and excise tax returns and year distributions.
(d) All Other Fees: For the registrant’s fiscal years ended March 31, 2024 and March 31, 2023, the aggregate fees billed by the principal accountant for products and services other than the services reported in paragraphs (a) through (c) of this Item were $0 and $0 respectively.
(e)(1) Pre-Approval of Audit and Non-Audit Services. The registrant’s Audit Committee has not adopted pre-approval policies and procedures for specific services, although the Audit Committee chairman may pre-approve audit and non-audit services pursuant to delegated authority, subject to ratification by the Audit Committee at the next meeting. Instead, the Audit Committee approves on a case-by-case basis each audit or non-audit service before engaging the accountant to render such service.
(e)(2)None of the services described in paragraphs (b) through (d) of this Item were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable. The percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees was zero percent (0%).
(g) Aggregate non-audit fees of $3,500 and $3,500 were billed by the registrant’s principal accountant for services rendered to the registrant and to registrant’s investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of fiscal years ended March 31, 2024 and March 31, 2023. All such services were rendered to the registrant.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
(a) Included as part of the report to Stockholders filed under Item 1 of this Form.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
None.
Item 11. Controls and Procedures.
(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-2 under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing of this report on Form N-CSR.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
(a)(1) The registrant’s code of ethics as described in Item 2 hereof is attached hereto as Exhibit EX-99.CODE ETH.
(a)(2) The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as Ex99.Cert.
(a)(3) Not applicable.
(a)(4) Not applicable.
(b) The certifications by the registrant’s Principal Executive Officer and Principal Financial Officer, as required by Rule 30a-2(b) of the Investment Company Act of 1940, as amended, and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as Ex99.906Cert.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) ONEFUND Trust
| By (Signature and Title) | /s/ Michael G. Willis |
Michael G. Willis, President and Principal Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By (Signature and Title) | /s/ Michael G. Willis |
Michael G. Willis, President and Principal Executive Officer
| By (Signature and Title) | /s/ Michael G. Willis |
Michael G. Willis, Treasurer and Principal Financial Officer
