UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-22700
Exchange Listed Funds Trust
(Exact name of registrant as specified in charter)
10900 Hefner Pointe Drive
Suite 401
Oklahoma City, Oklahoma 73120
(Address of principal executive offices) (Zip code)
UMB Fund Services
235 W. Galena Street
Milwaukee, Wisconsin 53212
(Name and address of agent for service)
Registrant’s telephone number, including area code: (405) 778-8377
Date of fiscal year end: April 30
Date of reporting period: October 31, 2020
Item 1. Reports to Stockholders.
EXCHANGE LISTED FUNDS TRUST
QRAFT AI-Enhanced U.S. Large Cap ETF
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF
QRAFT AI-Enhanced U.S. High Dividend ETF
Semi-Annual Report
October 31, 2020
(Unaudited)
Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission (“SEC”), paper copies of the Funds’ shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
Please contact your financial intermediary to elect to receive shareholder reports and other Fund communications electronically. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action.
You may elect to receive all future reports in paper free of charge. Please contact your financial intermediary to inform them that you wish to continue receiving paper copies of your shareholder reports and for details about whether your election to receive reports in paper will apply to all funds held with your financial intermediary.
Exchange Listed Funds Trust TABLE OF CONTENTS | October 31, 2020 |
QRAFT AI-Enhanced U.S. Large Cap ETF | ||
1 | ||
6 | ||
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF | ||
7 | ||
8 | ||
QRAFT AI-Enhanced U.S. High Dividend ETF | ||
9 | ||
11 | ||
12 | ||
13 | ||
14 | ||
15 | ||
16 | ||
25 | ||
26 |
Before investing you should carefully consider each Fund’s investment objectives, risks, charges and expenses. This and other information is available in each Fund’s prospectus, a copy of which may be obtained by visiting each Fund’s website at www.qraftaietf.com. Please read the prospectus carefully before you invest.
There are risks involved with investing, including possible loss of principal, and there is no guarantee each Fund will achieve its investment objective. Each Fund is non-diversified and may invest more of its assets in securities of a single issuer, which may have an adverse effect on a Fund’s performance. Concentration in a particular industry or sector will subject a Fund to loss due to adverse occurrences that may affect that industry or sector.
Individual shares of each Fund may be purchased or sold in the secondary market throughout the regular trading day on the NYSE Arca, Inc. (the “Exchange”) through a brokerage account. However, shares are not individually redeemable directly from a Fund. Each Fund issues and redeems shares on a continuous basis, at net asset value (“NAV”), only in large blocks of shares (“Creation Units”).
Distributor: Foreside Fund Services, LLC
i
Number | Value | ||||
COMMON STOCKS — 99.9% | |||||
COMMUNICATION SERVICES — 15.9% |
| ||||
493 | Activision Blizzard, Inc. | $ | 37,335 | ||
260 | Alphabet, Inc. - Class A* |
| 420,189 | ||
2,419 | AT&T, Inc. |
| 65,361 | ||
4 | Cable One, Inc. |
| 6,927 | ||
2,283 | CenturyLink, Inc. |
| 19,679 | ||
236 | Comcast Corp. - Class A |
| 9,969 | ||
1,059 | Discovery, Inc. - Class A* |
| 21,434 | ||
421 | Electronic Arts, Inc.* |
| 50,448 | ||
1,234 | Facebook, Inc. - Class A* |
| 324,678 | ||
179 | Liberty Global PLC - Class A* |
| 3,397 | ||
432 | Live Nation Entertainment, Inc.* |
| 21,082 | ||
303 | Match Group, Inc.* |
| 35,384 | ||
48 | Netflix, Inc.* |
| 22,835 | ||
144 | Pinterest, Inc. - Class A* |
| 8,489 | ||
95 | Roku, Inc.* |
| 19,228 | ||
3,575 | Sirius XM Holdings, Inc. |
| 20,485 | ||
320 | Snap, Inc. - Class A* |
| 12,605 | ||
40 | Spotify Technology S.A.* |
| 9,596 | ||
267 | Take-Two Interactive Software, Inc.* |
| 41,364 | ||
434 | TELUS Corp. |
| 7,426 | ||
93 | T-Mobile US, Inc.* |
| 10,190 | ||
176 | Twitter, Inc.* |
| 7,279 | ||
1,344 | Verizon Communications, Inc. |
| 76,595 | ||
167 | Yandex N.V. - Class A* |
| 9,614 | ||
56 | Zillow Group, Inc. - Class A* |
| 5,002 | ||
1,705 | Zynga, Inc. - Class A* |
| 15,328 | ||
| 1,281,919 | ||||
CONSUMER DISCRETIONARY — 18.9% |
| ||||
223 | Advance Auto Parts, Inc. |
| 32,843 | ||
180 | Amazon.com, Inc.* |
| 546,507 | ||
38 | AutoZone, Inc.* |
| 42,901 | ||
445 | Best Buy Co., Inc. |
| 49,640 | ||
27 | Booking Holdings, Inc.* |
| 43,807 | ||
19 | Burlington Stores, Inc.* |
| 3,678 | ||
22 | Carvana Co.* |
| 4,078 | ||
72 | Chegg, Inc.* |
| 5,288 | ||
101 | Chewy, Inc. - Class A* |
| 6,222 | ||
6 | Chipotle Mexican Grill, Inc.* |
| 7,209 | ||
296 | Dollar Tree, Inc.* |
| 26,735 | ||
374 | DR Horton, Inc. |
| 24,987 | ||
629 | eBay, Inc. |
| 29,959 | ||
334 | Etsy, Inc.* |
| 40,611 |
Number | Value | ||||
COMMON STOCKS (Continued) | |||||
CONSUMER DISCRETIONARY (Continued) | |||||
60 | Ferrari N.V. | $ | 10,705 | ||
2,171 | Fiat Chrysler Automobiles N.V.* |
| 26,682 | ||
942 | Ford Motor Co. |
| 7,282 | ||
230 | Garmin Ltd. |
| 23,925 | ||
534 | Home Depot, Inc. |
| 142,423 | ||
486 | Lowe’s Cos., Inc. |
| 76,837 | ||
89 | Lululemon Athletica, Inc.* |
| 28,417 | ||
10 | MercadoLibre, Inc.* |
| 12,140 | ||
92 | NIKE, Inc. - Class B |
| 11,047 | ||
5 | NVR, Inc.* |
| 19,765 | ||
81 | O’Reilly Automotive, Inc.* |
| 35,365 | ||
48 | Pool Corp. |
| 16,792 | ||
427 | PulteGroup, Inc. |
| 17,404 | ||
60 | Starbucks Corp. |
| 5,218 | ||
370 | Target Corp. |
| 56,321 | ||
44 | Tesla, Inc.* |
| 17,074 | ||
209 | Tiffany & Co. |
| 27,345 | ||
62 | TJX Cos., Inc. |
| 3,150 | ||
299 | Tractor Supply Co. |
| 39,830 | ||
105 | Ulta Beauty, Inc.* |
| 21,711 | ||
85 | Wayfair, Inc. - Class A* |
| 21,082 | ||
106 | Whirlpool Corp. |
| 19,606 | ||
225 | Yum! Brands, Inc. |
| 20,999 | ||
| 1,525,585 | ||||
CONSUMER STAPLES — 10.8% |
| ||||
87 | Beyond Meat, Inc.* |
| 12,391 | ||
26 | Boston Beer Co., Inc. - Class A* |
| 27,019 | ||
61 | Church & Dwight Co., Inc. |
| 5,392 | ||
96 | Clorox Co. |
| 19,896 | ||
222 | Coca-Cola Co. |
| 10,669 | ||
681 | Coca-Cola European Partners PLC |
| 24,318 | ||
217 | Colgate-Palmolive Co. |
| 17,119 | ||
261 | Costco Wholesale Corp. |
| 93,339 | ||
171 | Estee Lauder Cos., Inc. - Class A |
| 37,562 | ||
173 | Hershey Co. |
| 23,781 | ||
178 | J M Smucker Co. |
| 19,972 | ||
354 | Kellogg Co. |
| 22,263 | ||
379 | Kimberly-Clark Corp. |
| 50,252 | ||
1,220 | Kroger Co. |
| 39,296 | ||
50 | Lamb Weston Holdings, Inc. |
| 3,172 | ||
35 | McCormick & Co., Inc. |
| 6,318 | ||
74 | Mondelez International, Inc. - Class A |
| 3,931 |
1
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Continued) | October 31, 2020 (Unaudited) |
Number | Value | ||||
COMMON STOCKS (Continued) | |||||
CONSUMER STAPLES (Continued) |
| ||||
639 | Monster Beverage Corp.* | $ | 48,928 | ||
477 | PepsiCo, Inc. |
| 63,579 | ||
914 | Philip Morris International, Inc. |
| 64,912 | ||
128 | Procter & Gamble Co. |
| 17,549 | ||
489 | Sysco Corp. |
| 27,047 | ||
383 | Tyson Foods, Inc. - Class A |
| 21,919 | ||
855 | Walgreens Boots Alliance, Inc. |
| 29,104 | ||
1,333 | Walmart, Inc. |
| 184,954 | ||
| 874,682 | ||||
ENERGY — 0.3% |
| ||||
123 | Enbridge, Inc. |
| 3,390 | ||
598 | EOG Resources, Inc. |
| 20,475 | ||
| 23,865 | ||||
FINANCIALS — 2.9% |
| ||||
39 | American Express Co. |
| 3,558 | ||
448 | Bank of America Corp. |
| 10,618 | ||
70 | Bank of Nova Scotia |
| 2,909 | ||
8 | BlackRock, Inc. |
| 4,794 | ||
108 | Brown & Brown, Inc. |
| 4,699 | ||
108 | Citigroup, Inc. |
| 4,473 | ||
40 | Erie Indemnity Co. - Class A |
| 9,315 | ||
121 | FactSet Research Systems, Inc. |
| 37,086 | ||
102 | Fidelity National Financial, Inc. |
| 3,192 | ||
230 | Franklin Resources, Inc. |
| 4,312 | ||
18 | Goldman Sachs Group, Inc. |
| 3,403 | ||
157 | JPMorgan Chase & Co. |
| 15,392 | ||
45 | MarketAxess Holdings, Inc. |
| 24,248 | ||
26 | Marsh & McLennan Cos., Inc. |
| 2,690 | ||
30 | Moody’s Corp. |
| 7,887 | ||
57 | Morgan Stanley |
| 2,745 | ||
56 | MSCI, Inc. |
| 19,591 | ||
78 | Progressive Corp. |
| 7,168 | ||
130 | S&P Global, Inc. |
| 41,955 | ||
21 | SVB Financial Group* |
| 6,105 | ||
112 | T. Rowe Price Group, Inc. |
| 14,186 | ||
213 | Wells Fargo & Co. |
| 4,569 | ||
| 234,895 | ||||
HEALTH CARE — 12.2% |
| ||||
30 | 10X Genomics, Inc. - Class A* |
| 4,107 | ||
197 | Abbott Laboratories |
| 20,707 | ||
289 | AbbVie, Inc. |
| 24,594 | ||
72 | ABIOMED, Inc.* |
| 18,135 | ||
320 | Agilent Technologies, Inc. |
| 32,669 | ||
109 | Alexion Pharmaceuticals, Inc.* |
| 12,550 |
Number | Value | ||||
COMMON STOCKS (Continued) | |||||
HEALTH CARE (Continued) |
| ||||
57 | Align Technology, Inc.* | $ | 24,287 | ||
115 | Anthem, Inc. |
| 31,372 | ||
172 | Avantor, Inc.* |
| 4,002 | ||
141 | Biogen, Inc.* |
| 35,542 | ||
10 | Bio-Rad Laboratories, Inc. - Class A* |
| 5,864 | ||
13 | Bio-Techne Corp. |
| 3,281 | ||
74 | Boston Scientific Corp.* |
| 2,536 | ||
427 | Cardinal Health, Inc. |
| 19,552 | ||
105 | Catalent, Inc.* |
| 9,216 | ||
413 | Centene Corp.* |
| 24,408 | ||
484 | Cerner Corp. |
| 33,924 | ||
37 | Charles River Laboratories International, Inc.* |
| 8,425 | ||
13 | Cooper Cos., Inc. |
| 4,148 | ||
561 | CVS Health Corp. |
| 31,466 | ||
40 | DaVita, Inc.* |
| 3,450 | ||
111 | DENTSPLY SIRONA, Inc. |
| 5,238 | ||
48 | DexCom, Inc.* |
| 15,340 | ||
220 | Edwards Lifesciences Corp.* |
| 15,772 | ||
127 | Elanco Animal Health, Inc.* |
| 3,938 | ||
32 | Guardant Health, Inc.* |
| 3,413 | ||
70 | Hologic, Inc.* |
| 4,817 | ||
120 | Horizon Therapeutics Plc* |
| 8,992 | ||
106 | Humana, Inc. |
| 42,324 | ||
22 | ICON PLC* |
| 3,967 | ||
48 | IDEXX Laboratories, Inc.* |
| 20,391 | ||
85 | Illumina, Inc.* |
| 24,879 | ||
188 | Incyte Corp.* |
| 16,288 | ||
18 | Insulet Corp.* |
| 4,001 | ||
136 | Johnson & Johnson |
| 18,647 | ||
26 | Laboratory Corp. of America Holdings* |
| 5,194 | ||
88 | Masimo Corp.* |
| 19,696 | ||
157 | McKesson Corp. |
| 23,156 | ||
69 | Medtronic PLC |
| 6,939 | ||
131 | Merck & Co., Inc. |
| 9,853 | ||
30 | Mettler-Toledo International, Inc.* |
| 29,937 | ||
19 | Molina Healthcare, Inc.* |
| 3,543 | ||
32 | Novocure Ltd.* |
| 3,907 | ||
189 | PerkinElmer, Inc. |
| 24,485 | ||
104 | PPD, Inc.* |
| 3,420 | ||
447 | QIAGEN N.V.* |
| 21,206 | ||
38 | Quest Diagnostics, Inc. |
| 4,641 | ||
86 | Quidel Corp.* |
| 23,073 |
2
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Continued) | October 31, 2020 (Unaudited) |
Number | Value | ||||
COMMON STOCKS (Continued) | |||||
HEALTH CARE (Continued) |
| ||||
107 | ResMed, Inc. | $ | 20,538 | ||
68 | Seagen, Inc.* |
| 11,342 | ||
24 | STERIS PLC |
| 4,253 | ||
19 | Stryker Corp. |
| 3,838 | ||
18 | Teleflex, Inc. |
| 5,728 | ||
45 | Thermo Fisher Scientific, Inc. |
| 21,290 | ||
248 | UnitedHealth Group, Inc. |
| 75,675 | ||
32 | Universal Health Services, Inc. - Class B |
| 3,506 | ||
59 | Varian Medical Systems, Inc.* |
| 10,195 | ||
79 | Veeva Systems, Inc. - Class A* |
| 21,334 | ||
62 | Vertex Pharmaceuticals, Inc.* |
| 12,918 | ||
180 | Waters Corp.* |
| 40,108 | ||
85 | West Pharmaceutical Services, Inc. |
| 23,126 | ||
69 | Zoetis, Inc. |
| 10,940 | ||
| 986,083 | ||||
INDUSTRIALS — 5.6% |
| ||||
254 | 3M Co. |
| 40,630 | ||
49 | Allegion plc |
| 4,827 | ||
88 | C.H. Robinson Worldwide, Inc. |
| 7,782 | ||
43 | Canadian National Railway Co. |
| 4,276 | ||
19 | Cintas Corp. |
| 5,976 | ||
51 | Copart, Inc.* |
| 5,628 | ||
22 | CoStar Group, Inc.* |
| 18,119 | ||
40 | CSX Corp. |
| 3,158 | ||
138 | Cummins, Inc. |
| 30,345 | ||
31 | Deere & Co. |
| 7,003 | ||
415 | Emerson Electric Co. |
| 26,888 | ||
182 | Expeditors International of Washington, Inc. |
| 16,083 | ||
925 | Fastenal Co. |
| 39,988 | ||
27 | FedEx Corp. |
| 7,006 | ||
67 | Fortune Brands Home & Security, Inc. |
| 5,418 | ||
55 | Graco, Inc. |
| 3,405 | ||
39 | HEICO Corp. |
| 4,097 | ||
36 | Honeywell International, Inc. |
| 5,938 | ||
82 | Icahn Enterprises LP |
| 4,054 | ||
49 | Illinois Tool Works, Inc. |
| 9,598 | ||
31 | J.B. Hunt Transport Services, Inc. |
| 3,774 | ||
31 | Kansas City Southern |
| 5,460 | ||
69 | Lennox International, Inc. |
| 18,745 | ||
14 | Lockheed Martin Corp. |
| 4,902 | ||
384 | Masco Corp. |
| 20,582 |
Number | Value | ||||
COMMON STOCKS (Continued) | |||||
INDUSTRIALS (Continued) |
| ||||
19 | Nordson Corp. | $ | 3,675 | ||
13 | Norfolk Southern Corp. |
| 2,719 | ||
36 | Old Dominion Freight Line, Inc. |
| 6,853 | ||
108 | Rockwell Automation, Inc. |
| 25,609 | ||
310 | Rollins, Inc. |
| 17,933 | ||
38 | Roper Technologies, Inc. |
| 14,111 | ||
12 | Teledyne Technologies, Inc.* |
| 3,710 | ||
38 | Toro Co. |
| 3,120 | ||
35 | Union Pacific Corp. |
| 6,202 | ||
113 | United Rentals, Inc.* |
| 20,147 | ||
29 | Verisk Analytics, Inc. |
| 5,161 | ||
110 | W.W. Grainger, Inc. |
| 38,502 | ||
| 451,424 | ||||
INFORMATION TECHNOLOGY — 30.7%‡ | |||||
140 | Accenture PLC - Class A |
| 30,367 | ||
119 | Adobe, Inc.* |
| 53,205 | ||
335 | Advanced Micro Devices, Inc.* |
| 25,222 | ||
157 | Akamai Technologies, Inc.* |
| 14,934 | ||
24 | ANSYS, Inc.* |
| 7,305 | ||
1,549 | Apple, Inc. |
| 168,624 | ||
780 | Applied Materials, Inc. |
| 46,199 | ||
120 | Arista Networks, Inc.* |
| 25,068 | ||
53 | Atlassian Corp. PLC - Class A* |
| 10,156 | ||
110 | Autodesk, Inc.* |
| 25,909 | ||
20 | Automatic Data Processing, Inc. |
| 3,159 | ||
112 | Avalara, Inc.* |
| 16,694 | ||
52 | Booz Allen Hamilton Holding Corp. |
| 4,082 | ||
18 | Broadcom, Inc. |
| 6,293 | ||
38 | Broadridge Financial Solutions, Inc. |
| 5,229 | ||
479 | Cadence Design Systems, Inc.* |
| 52,388 | ||
50 | Ceridian HCM Holding, Inc.* |
| 4,311 | ||
77 | CGI, Inc.* |
| 4,787 | ||
46 | Check Point Software Technologies Ltd.* |
| 5,224 | ||
265 | Ciena Corp.* |
| 10,438 | ||
1,298 | Cisco Systems, Inc. |
| 46,598 | ||
268 | Citrix Systems, Inc. |
| 30,356 | ||
93 | Cloudflare, Inc. - Class A* |
| 4,833 | ||
316 | Cognizant Technology Solutions Corp. - Class A |
| 22,569 | ||
41 | Coupa Software, Inc.* |
| 10,976 | ||
50 | Crowdstrike Holdings, Inc. - Class A* |
| 6,192 |
3
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Continued) | October 31, 2020 (Unaudited) |
Number | Value | ||||
COMMON STOCKS (Continued) | |||||
INFORMATION TECHNOLOGY (Continued) | |||||
69 | Datadog, Inc. - Class A* | $ | 6,262 | ||
105 | DocuSign, Inc.* |
| 21,236 | ||
556 | Dropbox, Inc. - Class A* |
| 10,153 | ||
99 | Dynatrace, Inc.* |
| 3,496 | ||
30 | Elastic N.V.* |
| 3,042 | ||
41 | Enphase Energy, Inc.* |
| 4,022 | ||
45 | Entegris, Inc. |
| 3,365 | ||
67 | EPAM Systems, Inc.* |
| 20,700 | ||
87 | F5 Networks, Inc.* |
| 11,566 | ||
9 | Fair Isaac Corp.* |
| 3,523 | ||
35 | Fastly, Inc. - Class A* |
| 2,223 | ||
32 | Fidelity National Information Services, Inc. |
| 3,987 | ||
22 | FleetCor Technologies, Inc.* |
| 4,860 | ||
322 | Fortinet, Inc.* |
| 35,539 | ||
40 | Gartner, Inc.* |
| 4,804 | ||
60 | GoDaddy, Inc. - Class A* |
| 4,244 | ||
463 | Hewlett Packard Enterprise Co. |
| 4,000 | ||
2,173 | HP, Inc. |
| 39,027 | ||
68 | HubSpot, Inc.* |
| 19,725 | ||
1,812 | Intel Corp. |
| 80,235 | ||
46 | International Business Machines Corp. |
| 5,136 | ||
250 | Intuit, Inc. |
| 78,670 | ||
96 | Jack Henry & Associates, Inc. |
| 14,232 | ||
213 | Keysight Technologies, Inc.* |
| 22,337 | ||
164 | KLA Corp. |
| 32,338 | ||
81 | Lam Research Corp. |
| 27,709 | ||
49 | Leidos Holdings, Inc. |
| 4,067 | ||
259 | Logitech International S.A. |
| 21,924 | ||
158 | Marvell Technology Group Ltd. |
| 5,927 | ||
52 | Mastercard, Inc. - Class A |
| 15,009 | ||
567 | Maxim Integrated Products, Inc. |
| 39,492 | ||
593 | Micron Technology, Inc.* |
| 29,852 | ||
1,490 | Microsoft Corp. |
| 301,680 | ||
20 | MongoDB, Inc.* |
| 4,569 | ||
71 | Monolithic Power Systems, Inc. |
| 22,692 | ||
185 | Motorola Solutions, Inc. |
| 29,241 | ||
525 | NetApp, Inc. |
| 23,042 | ||
1,128 | NortonLifeLock, Inc. |
| 23,203 | ||
97 | Nuance Communications, Inc.* |
| 3,095 | ||
111 | NVIDIA Corp. |
| 55,651 | ||
62 | NXP Semiconductors N.V. |
| 8,377 | ||
55 | Okta, Inc.* |
| 11,541 |
Number | Value | ||||
COMMON STOCKS (Continued) | |||||
INFORMATION TECHNOLOGY (Continued) | |||||
878 | ON Semiconductor Corp.* | $ | 22,029 | ||
111 | Open Text Corp. |
| 4,077 | ||
156 | Oracle Corp. |
| 8,753 | ||
118 | Pagseguro Digital Ltd. - Class A* |
| 4,320 | ||
24 | Palo Alto Networks, Inc.* |
| 5,309 | ||
102 | Paychex, Inc. |
| 8,390 | ||
53 | Paycom Software, Inc.* |
| 19,297 | ||
65 | PayPal Holdings, Inc.* |
| 12,098 | ||
31 | Pegasystems, Inc. |
| 3,592 | ||
52 | PTC, Inc.* |
| 4,362 | ||
32 | Qorvo, Inc.* |
| 4,076 | ||
434 | QUALCOMM, Inc. |
| 53,538 | ||
86 | RingCentral, Inc. - Class A* |
| 22,217 | ||
181 | salesforce.com, Inc.* |
| 42,041 | ||
90 | Seagate Technology PLC |
| 4,304 | ||
93 | ServiceNow, Inc.* |
| 46,274 | ||
33 | Shopify, Inc. - Class A* |
| 30,539 | ||
125 | Skyworks Solutions, Inc. |
| 17,661 | ||
160 | Slack Technologies, Inc. - Class A* |
| 4,093 | ||
15 | SolarEdge Technologies, Inc.* |
| 3,865 | ||
37 | Splunk, Inc.* |
| 7,328 | ||
149 | Square, Inc. - Class A* |
| 23,077 | ||
79 | StoneCo Ltd. - Class A* |
| 4,151 | ||
130 | Synopsys, Inc.* |
| 27,802 | ||
441 | Teradyne, Inc. |
| 38,742 | ||
354 | Texas Instruments, Inc. |
| 51,185 | ||
22 | Trade Desk, Inc. - Class A* |
| 12,462 | ||
55 | Twilio, Inc. - Class A* |
| 15,343 | ||
12 | Tyler Technologies, Inc.* |
| 4,613 | ||
203 | Ubiquiti, Inc. |
| 37,679 | ||
94 | VeriSign, Inc.* |
| 17,926 | ||
110 | Visa, Inc. - Class A |
| 19,988 | ||
291 | VMware, Inc. - Class A* |
| 37,460 | ||
108 | Western Digital Corp. |
| 4,075 | ||
35 | Wix.com Ltd.* |
| 8,656 | ||
119 | Workday, Inc. - Class A* |
| 25,004 | ||
273 | Xilinx, Inc. |
| 32,402 | ||
79 | Zebra Technologies Corp. - Class A* |
| 22,408 | ||
144 | Zendesk, Inc.* |
| 15,975 | ||
103 | Zoom Video Communications, Inc. - Class A* |
| 47,474 | ||
35 | Zscaler, Inc.* |
| 4,751 | ||
| 2,486,247 |
4
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Concluded) | October 31, 2020 (Unaudited) |
Number | Value | ||||
COMMON STOCKS (Continued) | |||||
MATERIALS — 1.6% |
| ||||
23 | Air Products and Chemicals, Inc. | $ | 6,354 | ||
37 | Albemarle Corp. |
| 3,449 | ||
27 | Avery Dennison Corp. |
| 3,737 | ||
751 | Corteva, Inc. |
| 24,768 | ||
44 | Eastman Chemical Co. |
| 3,557 | ||
32 | International Flavors & Fragrances, Inc. |
| 3,285 | ||
621 | Kinross Gold Corp. |
| 4,949 | ||
326 | Kirkland Lake Gold Ltd. |
| 14,872 | ||
60 | Linde PLC |
| 13,220 | ||
203 | Packaging Corp. of America |
| 23,241 | ||
121 | RPM International, Inc. |
| 10,245 | ||
14 | Sherwin-Williams Co. |
| 9,632 | ||
91 | Westrock Co. |
| 3,417 | ||
98 | Wheaton Precious Metals Corp. |
| 4,519 | ||
| 129,245 | ||||
REAL ESTATE — 0.3% |
| ||||
23 | American Tower Corp. - REIT |
| 5,282 | ||
22 | Crown Castle International Corp. - REIT |
| 3,437 | ||
14 | Equinix, Inc. - REIT | �� | 10,237 | ||
27 | Prologis, Inc. - REIT |
| 2,678 | ||
| 21,634 | ||||
UTILITIES — 0.7% |
| ||||
220 | Algonquin Power & Utilities Corp. |
| 3,333 | ||
88 | Alliant Energy Corp. |
| 4,865 | ||
37 | American Water Works Co., Inc. |
| 5,569 | ||
86 | Avangrid, Inc. |
| 4,243 | ||
178 | CenterPoint Energy, Inc. |
| 3,761 | ||
30 | Dominion Energy, Inc. |
| 2,410 | ||
98 | Edison International |
| 5,492 | ||
51 | Entergy Corp. |
| 5,162 | ||
71 | Evergy, Inc. |
| 3,919 | ||
151 | FirstEnergy Corp. |
| 4,488 | ||
136 | NextEra Energy, Inc. |
| 9,957 | ||
194 | PPL Corp. |
| 5,335 | ||
| 58,534 | ||||
TOTAL COMMON STOCKS |
| 8,074,113 |
Number | Value | |||||
SHORT-TERM INVESTMENTS — 0.1% | ||||||
11,531 | Invesco Government & Agency Portfolio Institutional Class, 0.01%# | $ | 11,531 |
| ||
TOTAL SHORT-TERM INVESTMENTS |
| 11,531 |
| |||
TOTAL INVESTMENTS — 100.0% |
| 8,085,644 |
| |||
Other Liabilities in Excess of |
| (274 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 8,085,370 |
|
* Non-income producing security.
‡ Please see Note 6 for more information about industry and sector concentration and other risks.
# The rate is the annualized seven-day yield at period end.
5
Security Type/Sector | Percent of | ||
Common Stocks |
| ||
Information Technology | 30.7 | % | |
Consumer Discretionary | 18.9 | % | |
Communication Services | 15.9 | % | |
Health Care | 12.2 | % | |
Consumer Staples | 10.8 | % | |
Industrials | 5.6 | % | |
Financials | 2.9 | % | |
Materials | 1.6 | % | |
Utilities | 0.7 | % | |
Energy | 0.3 | % | |
Real Estate | 0.3 | % | |
Total Common Stocks | 99.9 | % | |
Short-Term Investments | 0.1 | % | |
Total Investments | 100.0 | % | |
Liabilities in Excess of Other Assets | (0.0 | )% | |
Total Net Assets | 100.0 | % |
6
Number | Value | ||||
COMMON STOCKS — 99.9% | |||||
COMMUNICATION SERVICES — 9.1% |
| ||||
1,253 | Facebook, Inc. - Class A* | $ | 329,677 | ||
330 | Spotify Technology S.A.* |
| 79,164 | ||
711 | Zillow Group, Inc. - Class A* |
| 63,513 | ||
| 472,354 | ||||
CONSUMER DISCRETIONARY — 24.2% |
| ||||
136 | Amazon.com, Inc.* |
| 412,916 | ||
63 | AutoZone, Inc.* |
| 71,126 | ||
611 | Home Depot, Inc. |
| 162,960 | ||
654 | Lowe’s Cos., Inc. |
| 103,397 | ||
241 | Lululemon Athletica, Inc.* |
| 76,949 | ||
1,062 | NIKE, Inc. - Class B |
| 127,525 | ||
165 | O’Reilly Automotive, Inc.* |
| 72,039 | ||
206 | Pool Corp. |
| 72,065 | ||
584 | Target Corp. |
| 88,896 | ||
254 | Wayfair, Inc. - Class A* |
| 63,000 | ||
| 1,250,873 | ||||
CONSUMER STAPLES — 10.3% |
| ||||
349 | Clorox Co. |
| 72,330 | ||
1,134 | Colgate-Palmolive Co. |
| 89,461 | ||
421 | Estee Lauder Cos., Inc. - Class A |
| 92,477 | ||
985 | Monster Beverage Corp.* |
| 75,422 | ||
1,461 | Walmart, Inc. |
| 202,714 | ||
| 532,404 | ||||
FINANCIALS — 1.6% |
| ||||
263 | S&P Global, Inc. |
| 84,878 | ||
HEALTH CARE — 14.2% |
| ||||
224 | Align Technology, Inc.* |
| 95,442 | ||
994 | Cerner Corp. |
| 69,669 | ||
189 | DexCom, Inc.* |
| 60,401 | ||
193 | IDEXX Laboratories, Inc.* |
| 81,990 | ||
791 | Incyte Corp.* |
| 68,532 | ||
291 | Masimo Corp.* |
| 65,132 | ||
75 | Mettler-Toledo International, Inc.* |
| 74,843 | ||
611 | Novocure Ltd.* |
| 74,603 | ||
281 | Veeva Systems, Inc. - Class A* |
| 75,884 | ||
327 | Vertex Pharmaceuticals, Inc.* |
| 68,134 | ||
| 734,630 |
Number | Value | |||||
COMMON STOCKS (Continued) | ||||||
INDUSTRIALS — 4.2% |
|
| ||||
1,624 | Fastenal Co. | $ | 70,205 |
| ||
353 | Generac Holdings, Inc.* |
| 74,183 |
| ||
199 | W.W. Grainger, Inc. |
| 69,654 |
| ||
| 214,042 |
| ||||
INFORMATION TECHNOLOGY — 36.3%‡ |
|
| ||||
300 | Adobe, Inc.* |
| 134,130 |
| ||
1,197 | Advanced Micro Devices, Inc.* |
| 90,122 |
| ||
3,687 | Apple, Inc. |
| 401,367 |
| ||
355 | Autodesk, Inc.* |
| 83,617 |
| ||
699 | Cadence Design Systems, Inc.* |
| 76,450 |
| ||
509 | Citrix Systems, Inc. |
| 57,654 |
| ||
161 | Fair Isaac Corp.* |
| 63,023 |
| ||
289 | Intuit, Inc. |
| 90,943 |
| ||
888 | Logitech International S.A. |
| 75,169 |
| ||
337 | NVIDIA Corp. |
| 168,958 |
| ||
558 | Pegasystems, Inc. |
| 64,661 |
| ||
265 | RingCentral, Inc. - Class A* |
| 68,460 |
| ||
200 | ServiceNow, Inc.* |
| 99,514 |
| ||
113 | Shopify, Inc. - Class A* |
| 104,574 |
| ||
551 | Square, Inc. - Class A* |
| 85,339 |
| ||
407 | Ubiquiti, Inc. |
| 75,543 |
| ||
353 | VeriSign, Inc.* |
| 67,317 |
| ||
271 | Wix.com Ltd.* |
| 67,024 |
| ||
| 1,873,865 |
| ||||
TOTAL COMMON STOCKS |
| 5,163,046 |
| |||
|
| |||||
SHORT-TERM INVESTMENTS — 0.1% | ||||||
5,551 | Invesco Government & Agency Portfolio Institutional Class, 0.01%# |
| 5,551 |
| ||
TOTAL SHORT-TERM INVESTMENTS |
| 5,551 |
| |||
TOTAL INVESTMENTS — 100.0% |
| 5,168,597 |
| |||
Other Liabilities in Excess of |
| (2,189 | ) | |||
TOTAL NET ASSETS — 100.0% | $ | 5,166,408 |
|
* Non-income producing security.
‡ Please see Note 6 for more information about industry and sector concentration and other risks.
# The rate is the annualized seven-day yield at period end.
7
Security Type/Sector | Percent of | ||
Common Stocks |
| ||
Information Technology | 36.3 | % | |
Consumer Discretionary | 24.2 | % | |
Health Care | 14.2 | % | |
Consumer Staples | 10.3 | % | |
Communication Services | 9.1 | % | |
Industrials | 4.2 | % | |
Financials | 1.6 | % | |
Total Common Stocks | 99.9 | % | |
Short-Term Investments | 0.1 | % | |
Total Investments | 100.0 | % | |
Liabilities in Excess of Other Assets | (0.0 | )% | |
Total Net Assets | 100.0 | % |
8
Number | Value | ||||
COMMON STOCKS — 99.4% | |||||
COMMUNICATION SERVICES — 6.3% |
| ||||
598 | CenturyLink, Inc. | $ | 5,155 | ||
92 | New York Times Co. - Class A |
| 3,649 | ||
357 | News Corp. - Class A |
| 4,687 | ||
2,198 | Verizon Communications, Inc. |
| 125,264 | ||
293 | ViacomCBS, Inc. - Class A |
| 8,749 | ||
| 147,504 | ||||
CONSUMER DISCRETIONARY — 25.5%‡ | |||||
42 | Advance Auto Parts, Inc. |
| 6,186 | ||
139 | Best Buy Co., Inc. |
| 15,505 | ||
416 | Carnival Corp. |
| 5,703 | ||
377 | eBay, Inc. |
| 17,957 | ||
848 | Fiat Chrysler Automobiles N.V.* |
| 10,422 | ||
79 | Genuine Parts Co. |
| 7,144 | ||
75 | Hasbro, Inc. |
| 6,204 | ||
572 | Home Depot, Inc. |
| 152,558 | ||
409 | Las Vegas Sands Corp. |
| 19,657 | ||
403 | Lowe’s Cos., Inc. |
| 63,714 | ||
269 | MGM Resorts International |
| 5,533 | ||
257 | Newell Brands, Inc. |
| 4,539 | ||
828 | NIKE, Inc. - Class B |
| 99,426 | ||
40 | O’Reilly Automotive, Inc.* |
| 17,464 | ||
22 | Pool Corp. |
| 7,696 | ||
191 | Ross Stores, Inc. |
| 16,268 | ||
267 | Target Corp. |
| 40,643 | ||
66 | Tiffany & Co. |
| 8,635 | ||
640 | TJX Cos., Inc. |
| 32,512 | ||
63 | Tractor Supply Co. |
| 8,392 | ||
31 | Ulta Beauty, Inc.* |
| 6,410 | ||
209 | VF Corp. |
| 14,045 | ||
52 | Wayfair, Inc. - Class A* |
| 12,898 | ||
34 | Whirlpool Corp. |
| 6,289 | ||
162 | Yum! Brands, Inc. |
| 15,119 | ||
| 600,919 | ||||
CONSUMER STAPLES — 25.7%‡ |
| ||||
991 | Altria Group, Inc. |
| 35,755 | ||
245 | Coca-Cola European Partners PLC |
| 8,749 | ||
457 | Colgate-Palmolive Co. |
| 36,053 | ||
235 | Costco Wholesale Corp. |
| 84,041 | ||
192 | Estee Lauder Cos., Inc. - Class A |
| 42,175 | ||
416 | Kroger Co. |
| 13,399 | ||
131 | Molson Coors Beverage Co. - Class B |
| 4,619 |
Number | Value | ||||
COMMON STOCKS (Continued) | |||||
CONSUMER STAPLES (Continued) |
| ||||
736 | PepsiCo, Inc. | $ | 98,101 | ||
828 | Philip Morris International, Inc. |
| 58,805 | ||
272 | Sysco Corp. |
| 15,044 | ||
467 | Walgreens Boots Alliance, Inc. |
| 15,897 | ||
1,390 | Walmart, Inc. |
| 192,862 | ||
| 605,500 | ||||
ENERGY — 3.9% |
| ||||
397 | Baker Hughes Co. |
| 5,864 | ||
747 | Canadian Natural Resources Ltd. |
| 11,915 | ||
1,460 | Energy Transfer LP |
| 7,519 | ||
314 | EOG Resources, Inc. |
| 10,751 | ||
351 | Marathon Petroleum Corp. |
| 10,354 | ||
572 | MPLX LP |
| 9,844 | ||
546 | Occidental Petroleum Corp. |
| 4,985 | ||
747 | Schlumberger N.V. |
| 11,160 | ||
968 | Suncor Energy, Inc. |
| 10,929 | ||
220 | Valero Energy Corp. |
| 8,494 | ||
| 91,815 | ||||
FINANCIALS — 0.0% |
| ||||
8 | Ares Capital Corp. |
| 111 | ||
HEALTH CARE — 9.9% |
| ||||
259 | Bausch Health Cos., Inc.* |
| 4,274 | ||
160 | Cardinal Health, Inc. |
| 7,326 | ||
164 | Cerner Corp. |
| 11,495 | ||
482 | Eli Lilly and Co. |
| 62,882 | ||
668 | Gilead Sciences, Inc. |
| 38,844 | ||
1,344 | Merck & Co., Inc. |
| 101,082 | ||
24 | Quidel Corp.* |
| 6,439 | ||
| 232,342 | ||||
INDUSTRIALS — 10.1% |
| ||||
307 | 3M Co. |
| 49,108 | ||
73 | C.H. Robinson Worldwide, Inc. |
| 6,455 | ||
288 | Caterpillar, Inc. |
| 45,230 | ||
738 | CNH Industrial N.V.* |
| 5,734 | ||
80 | Cummins, Inc. |
| 17,591 | ||
320 | Emerson Electric Co. |
| 20,733 | ||
308 | Fastenal Co. |
| 13,315 | ||
140 | FedEx Corp. |
| 36,326 | ||
92 | Graco, Inc. |
| 5,695 | ||
23 | Lennox International, Inc. |
| 6,248 |
9
QRAFT AI-Enhanced U.S. High Dividend ETF SCHEDULE OF INVESTMENTS (Concluded) | October 31, 2020 (Unaudited) |
Number | Value | ||||
COMMON STOCKS (Continued) | |||||
INDUSTRIALS (Continued) |
| ||||
33 | Snap-on, Inc. | $ | 5,198 | ||
309 | Southwest Airlines Co. |
| 12,215 | ||
60 | Toro Co. |
| 4,926 | ||
29 | W.W. Grainger, Inc. |
| 10,151 | ||
| 238,925 | ||||
INFORMATION TECHNOLOGY — 14.0% | |||||
67 | Citrix Systems, Inc. |
| 7,589 | ||
290 | Cognizant Technology Solutions Corp. - Class A |
| 20,712 | ||
16 | Fair Isaac Corp.* |
| 6,263 | ||
737 | HP, Inc. |
| 13,236 | ||
2,260 | Intel Corp. |
| 100,073 | ||
474 | International Business Machines Corp. |
| 52,927 | ||
184 | Juniper Networks, Inc. |
| 3,628 | ||
92 | Logitech International S.A. |
| 7,788 | ||
133 | NetApp, Inc. |
| 5,837 | ||
322 | NortonLifeLock, Inc. |
| 6,624 | ||
192 | Paychex, Inc. |
| 15,792 | ||
140 | Seagate Technology PLC |
| 6,695 | ||
488 | Texas Instruments, Inc. |
| 70,560 | ||
35 | Ubiquiti, Inc. |
| 6,496 | ||
182 | Western Digital Corp. |
| 6,867 | ||
| 331,087 | ||||
MATERIALS — 3.3% |
| ||||
46 | Avery Dennison Corp. |
| 6,366 | ||
397 | Dow, Inc. |
| 18,060 | ||
74 | Eastman Chemical Co. |
| 5,982 | ||
213 | International Paper Co. |
| 9,319 | ||
52 | Packaging Corp. of America |
| 5,953 | ||
127 | PPG Industries, Inc. |
| 16,474 | ||
39 | Reliance Steel & Aluminum Co. |
| 4,251 | ||
345 | Teck Resources Ltd. - Class B |
| 4,533 | ||
157 | Westrock Co. |
| 5,895 | ||
| 76,833 | ||||
REAL ESTATE — 0.4% |
| ||||
165 | Simon Property Group, Inc. - REIT |
| 10,364 | ||
UTILITIES — 0.3% |
| ||||
116 | Brookfield Renewable Partners LP |
| 6,293 | ||
TOTAL COMMON STOCKS |
| 2,341,693 |
Number | Value | ||||
SHORT-TERM INVESTMENTS — 0.5% | |||||
12,718 | Invesco Government & Agency Portfolio Institutional Class, 0.01%# | $ | 12,718 | ||
TOTAL SHORT-TERM INVESTMENTS |
| 12,718 | |||
TOTAL INVESTMENTS — 99.9% |
| 2,354,411 | |||
Other Assets in Excess of |
| 1,664 | |||
TOTAL NET ASSETS — 100.0% | $ | 2,356,075 |
* Non-income producing security.
‡ Please see Note 6 for more information about industry and sector concentration and other risks.
# The rate is the annualized seven-day yield at period end.
10
Security Type/Sector | Percent of | ||
Common Stocks |
| ||
Consumer Staples | 25.7 | % | |
Consumer Discretionary | 25.5 | % | |
Information Technology | 14.0 | % | |
Industrials | 10.1 | % | |
Health Care | 9.9 | % | |
Communication Services | 6.3 | % | |
Energy | 3.9 | % | |
Materials | 3.3 | % | |
Real Estate | 0.4 | % | |
Utilities | 0.3 | % | |
Financials | 0.0 | % | |
Total Common Stocks | 99.4 | % | |
Short-Term Investments | 0.5 | % | |
Total Investments | 99.9 | % | |
Other Assets in Excess of Liabilities | 0.1 | % | |
Total Net Assets | 100.0 | % |
11
| QRAFT | QRAFT | QRAFT | |||||||
Assets: |
|
|
|
| ||||||
Investments, at value (Cost $7,794,611, $5,285,962 and $2,271,001, respectively) | $ | 8,085,644 | $ | 5,168,597 | $ | 2,354,411 |
| |||
Reclaims receivable |
| 74 |
| — |
| — |
| |||
Dividends and interest receivable |
| 5,050 |
| 1,297 |
| 3,577 |
| |||
Total Assets |
| 8,090,768 |
| 5,169,894 |
| 2,357,988 |
| |||
|
|
|
| |||||||
Liabilities: |
|
|
|
| ||||||
Advisory fee payable |
| 5,398 |
| 3,486 |
| 1,913 |
| |||
Total Liabilities |
| 5,398 |
| 3,486 |
| 1,913 |
| |||
|
|
|
| |||||||
Net Assets | $ | 8,085,370 | $ | 5,166,408 | $ | 2,356,075 |
| |||
|
|
|
| |||||||
Net Assets Consist of: |
|
|
|
| ||||||
Paid-in Capital | $ | 7,218,272 | $ | 4,131,346 | $ | 2,481,935 |
| |||
Total distributable earnings (loss) |
| 867,098 |
| 1,035,062 |
| (125,860 | ) | |||
Net Assets | $ | 8,085,370 | $ | 5,166,408 | $ | 2,356,075 |
| |||
|
|
|
| |||||||
Net Assets | $ | 8,085,370 | $ | 5,166,408 | $ | 2,356,075 |
| |||
Shares of Beneficial Interest Outstanding |
| 250,001 |
| 150,001 |
| 100,000 |
| |||
Net Asset Value, Offering and Redemption Price Per Share | $ | 32.34 | $ | 34.44 | $ | 23.56 |
|
12
QRAFT | QRAFT | QRAFT | |||||||||
For the | For the | For the | |||||||||
Investment Income: |
|
|
|
|
| ||||||
Dividend income (net of foreign withholding tax of $221, $278 and $456, respectively) | $ | 28,620 | $ | 7,522 |
| $ | 39,020 |
| |||
Interest |
| 2 |
| 3 |
|
| 4 |
| |||
Total Investment Income |
| 28,622 |
| 7,525 |
|
| 39,024 |
| |||
|
|
|
|
| |||||||
Expenses: |
|
|
|
|
| ||||||
Advisory fees |
| 20,669 |
| 14,646 |
|
| 10,852 |
| |||
Total Expenses |
| 20,669 |
| 14,646 |
|
| 10,852 |
| |||
|
|
|
|
| |||||||
Net Investment Income (Loss) |
| 7,953 |
| (7,121 | ) |
| 28,172 |
| |||
|
|
|
|
| |||||||
Realized and Unrealized Gain (Loss) on Investments |
|
|
|
|
| ||||||
Net realized gain (loss) on investments |
| 555,625 |
| 1,004,300 |
|
| 211,866 |
| |||
Change in unrealized appreciation/(depreciation) on investments |
| 28,961 |
| (93,640 | ) |
| (19,067 | ) | |||
Net Realized and Unrealized Gain (Loss) on Investments |
| 584,586 |
| 910,660 |
|
| 192,799 |
| |||
|
|
|
|
| |||||||
Net Increase (Decrease) in Net Assets Resulting From Operations | $ | 592,539 | $ | 903,539 |
| $ | 220,971 |
|
13
QRAFT | QRAFT | QRAFT | ||||||||||||||||||||||
For the | For the | For the | For the | For the | For the | |||||||||||||||||||
From Investment Activities: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Operations: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net investment income (loss) | $ | 7,953 |
| $ | 17,299 |
| $ | (7,121 | ) | $ | 8,513 |
| $ | 28,172 |
| $ | 11,299 |
| ||||||
Net realized gain (loss) on investments |
| 555,625 |
|
| 133,145 |
|
| 1,004,300 |
|
| 329,287 |
|
| 211,866 |
|
| (423,353 | ) | ||||||
Net change in unrealized appreciation/(depreciation) on investments |
| 28,961 |
|
| 262,072 |
|
| (93,640 | ) |
| (23,725 | ) |
| (19,067 | ) |
| 102,477 |
| ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
| 592,539 |
|
| 412,516 |
|
| 903,539 |
|
| 314,075 |
|
| 220,971 |
|
| (309,577 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Distributions to Shareholders: |
| — |
|
| (137,957 | ) |
| — |
|
| (178,709 | ) |
| (37,254 | ) |
| — |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Capital Transactions: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Proceeds from shares issued |
| 4,987,773 |
|
| 3,079,488 |
|
| 1,687,742 |
|
| 3,083,511 |
|
| 587,976 |
|
| 3,082,392 |
| ||||||
Cost of shares redeemed |
| (849,014 | ) |
| — |
|
| — |
|
| (643,775 | ) |
| (1,188,433 | ) |
| — |
| ||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions |
| 4,138,759 |
|
| 3,079,488 |
|
| 1,687,742 |
|
| 2,439,736 |
|
| (600,457 | ) |
| 3,082,392 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Increase (Decrease) in Net Assets |
| 4,731,298 |
|
| 3,354,047 |
|
| 2,591,281 |
|
| 2,575,102 |
|
| (416,740 | ) |
| 2,772,815 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Beginning of period |
| 3,354,072 |
|
| 25 | (2) |
| 2,575,127 |
|
| 25 | (2) |
| 2,772,815 |
|
| — |
| ||||||
End of period | $ | 8,085,370 |
| $ | 3,354,072 |
| $ | 5,166,408 |
| $ | 2,575,127 |
| $ | 2,356,075 |
| $ | 2,772,815 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Share Transactions: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Issued |
| 150,000 |
|
| 125,000 |
|
| 50,000 |
|
| 125,000 |
|
| 25,000 |
|
| 125,000 |
| ||||||
Redeemed |
| (25,000 | ) |
| — |
|
| — |
|
| (25,000 | ) |
| (50,000 | ) |
| — |
| ||||||
Net Increase (Decrease) in Share Transactions |
| 125,000 |
|
| 125,000 |
|
| 50,000 |
|
| 100,000 |
|
| (25,000 | ) |
| 125,000 |
|
(1) Commencement of operations.
(2) Beginning capital of $25 was contributed by the Adviser in exchange for 1 share of each Fund in connection with the commencement of operations.
14
Selected data for a share of beneficial interest outstanding throughout the periods indicated.
Investment Activities | Distribution to | Ratios to Average | Supplemental Data | |||||||||||||||||||||||||
| Net Asset | Net | Net Realized | Total from | Net | Net Realized | Total | Net Asset | Total | Total | Expenses(5) | Net | Net Assets | Portfolio | ||||||||||||||
QRAFT AI-Enhanced U.S. Large Cap ETF | ||||||||||||||||||||||||||||
For the Six Months Ended October 31, 2020 (Unaudited) | $26.83 | $ 0.05 | $ 5.46 | $ 5.51 | $ — | $ — | $ — | $32.34 | 20.54% | 20.14% | 0.75% | 0.29% | $8,085 | 109% | ||||||||||||||
For the Period Ended May 20, 2019(7) through April 30, 2020 | $24.73 | $ 0.14 | $ 3.07 | $ 3.21 | $(0.12) | $(0.99) | $(1.11) | $26.83 | 12.84% | 12.96% | 0.75% | 0.56% | $3,354 | 219% | ||||||||||||||
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF | ||||||||||||||||||||||||||||
For the Six Months Ended October 31, 2020 (Unaudited) | $25.75 | $(0.06) | $ 8.75 | $ 8.69 | $ — | $ — | $ — | $34.44 | 33.75% | 33.15% | 0.75% | (0.36)% | $5,166 | 215% | ||||||||||||||
For the Period Ended May 20, 2019(7) through April 30, 2020 | $24.70 | $ 0.07 | $ 2.41 | $ 2.48 | $(0.04) | $(1.39) | $(1.43) | $25.75 | 9.99% | 10.16% | 0.75% | 0.28% | $2,575 | 275% | ||||||||||||||
QRAFT AI-Enhanced U.S. High Dividend ETF | ||||||||||||||||||||||||||||
For the Six Months Ended October 31, 2020 (Unaudited) | $22.18 | $ 0.23 | $ 1.45 | $ 1.68 | $(0.30) | $ — | $(0.30) | $23.56 | 7.61% | 7.18% | 0.75% | 1.95% | $2,356 | 80% | ||||||||||||||
For the Period Ended February 26, 2020(7) through April 30, 2020 | $24.79 | $ 0.09 | $(2.70) | $(2.61) | $ — | $ — | $ — | $22.18 | (10.53)% | (10.29)% | 0.75% | 2.46% | $2,773 | 45% |
(1) Per share numbers have been calculated using the average shares method.
(2) Not annualized for periods less than one year.
(3) Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, if any, and redemption on the last day of the period at net asset value. This percentage is not an indication of the performance of a shareholder’s investment in the Fund based on market value due to the differences between the market price of the shares and the net asset value per share of the Fund.
(4) Market value total return is calculated assuming an initial investment made at market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, if any, and redemption on the last day of the period at market value. Market value is determined by the composite closing price. Composite closing security price is defined as the last reported sale price on the NYSE Arca. The composite closing price is the last reported sale, regardless of volume, and not an average price, and may have occurred on a date prior to the close of the reporting period. Market value may be greater or less than net asset value, depending on the Fund’s closing price on the NYSE Arca.
(5) Annualized for periods less than one year.
(6) Excludes the impact of in-kind transactions related to the processing of capital share transactions in Creation Units.
(7) Commencement of operations.
15
Note 1 – Organization
Exchange Listed Funds Trust (the “Trust”) was organized on April 4, 2012 as a Delaware statutory trust and is registered with the SEC under the Investment Company Act of 1940, (the “1940 Act”) as an open-end management investment company. The Agreement and Declaration of Trust permits the Trust to issue an unlimited number of shares of beneficial interest (“Shares”) in one or more series representing interests in separate portfolios of securities. The Trust has registered its Shares in multiple separate series. The financial statements herein are for the QRAFT AI-Enhanced U.S. Large Cap ETF (the “AI-Enhanced U.S. Large Cap ETF”), the QRAFT AI-Enhanced U.S. Large Cap Momentum ETF (the “AI-Enhanced U.S. Large Cap Momentum ETF”) and the QRAFT AI-Enhanced U.S. High Dividend ETF (the “AI-Enhanced U.S. High Dividend ETF”) (each, a “Fund” and collectively, the “Funds”). The assets of each series in the Trust are segregated and a shareholder’s interest is limited to the Fund in which Shares are held.
Each Fund is an actively managed exchange-traded fund (“ETF”). Unlike index ETFs, actively managed ETFs do not seek to track the performance of a specified index. Instead, actively managed ETFs seek to achieve an investment objective by purchasing and selling securities and other instruments, including shares of other investment companies, in accordance with the ETF’s stated investment strategy. Actively managed ETFs are required to publish their portfolio holdings on a daily basis. The availability of this information, which is used by, among others, large institutional investors when deciding to purchase or redeem Creation Units of the ETF, is designed to ensure that shares of the ETF do not trade at a material premium or discount in relation to NAV per share.
The AI-Enhanced U.S. Large Cap ETF seeks to achieve its investment objective by investing at least 80% of its net assets, plus the amounts of any borrowings for investment purposes, in securities of U.S.-listed large capitalization companies. The Fund is classified as a non-diversified investment company under the 1940 Act. The Fund commenced operations on May 20, 2019.
The AI-Enhanced U.S. Large Cap Momentum ETF seeks to achieve its investment objective by investing at least 80% of its net assets, plus the amounts of any borrowings for investment purposes, in securities of U.S.-listed large capitalization companies. The Fund is classified as a non-diversified investment company under the 1940 Act. The Fund commenced operations on May 20, 2019.
The AI-Enhanced U.S. High Dividend ETF seeks to achieve its investment objective by investing at least 80% of its net assets, plus the amounts of any borrowings for investment purposes, in dividend paying securities of U.S.-listed companies. The Fund is classified as a non-diversified investment company under the 1940 Act. The Fund commenced operations on February 26, 2020.
Under the Trust’s organizational documents, its officers and Board of Trustees (the ”Board”) are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust may enter into contracts with vendors and others that provide for general indemnifications. The Trust’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust.
Note 2 – Basis of Presentation and Significant Accounting Policies
The following is a summary of the significant accounting policies followed by the Trust in the preparation of the financial statements. These policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”). The Trust is an investment company and follows accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services-Investment Companies.” The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and income and expenses during the reporting period. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the financial statements may differ from the value each Fund ultimately realizes upon sale of the securities.
(a) Valuation of Investments
Each Fund’s investments are valued using procedures approved by the Board and are generally valued using market valuations (Market Approach). A market valuation generally means a valuation (i) obtained from an exchange, a pricing service, or a major market maker (or dealer) or (ii) based on a price quotation or other equivalent indication of value supplied by an exchange,
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EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2020 |
a pricing service, or a major market maker (or dealer). A price obtained from a pricing service based on such pricing service’s valuation matrix may be considered a market valuation. Any assets or liabilities denominated in currencies other than the U.S. dollar are converted into U.S. dollars at the current market rates on the date of valuation as quoted by one or more sources.
In the event that current market valuations are not readily available or such valuations do not reflect current fair market value, the Trust’s procedures require the Trust’s Valuation Committee, in accordance with the Trust’s Board-approved valuation guidelines, to determine a security’s fair value. In determining such value, the Valuation Committee may consider, among other things, (i) price comparisons among multiple sources, (ii) a review of corporate actions and news events, and (iii) a review of relevant financial indicators (e.g., movement in interest rates or market indices). Fair value pricing involves subjective judgments and it is possible that the fair value determination for a security is materially different than the value that could be realized upon the sale of the security. With respect to securities that are primarily listed on foreign exchanges, the value of each Fund’s portfolio securities may change on days when the investors will not be able to purchase or sell their Shares.
Each Fund discloses the fair value of its investments in a hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent of each Fund (observable inputs) and (2) each Fund’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the hierarchy are as follows:
• Level 1 – Quoted prices in active markets for identical assets
• Level 2 – Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – Significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
Pursuant to the valuation procedures noted previously, equity securities and short-term investments are generally categorized as Level 1 in the fair value hierarchy (unless there is a fair valuation event, in which case affected securities are generally categorized as Level 2 or Level 3).
The following is a summary of the valuations as of October 31, 2020 for each Fund based upon the three levels defined above:
AI-Enhanced U.S. Large Cap ETF | Level 1 | Level 2 | Level 3* | Total | ||||||||
Investments |
|
|
|
| ||||||||
Common Stocks(1) | $ | 8,074,113 | $ | — | $ | — | $ | 8,074,113 | ||||
Short-Term Investments |
| 11,531 |
| — |
| — |
| 11,531 | ||||
Total | $ | 8,085,644 | $ | — | $ | — | $ | 8,085,644 |
AI-Enhanced U.S. Large Cap Momentum ETF | Level 1 | Level 2 | Level 3* | Total | ||||||||
Investments |
|
|
|
| ||||||||
Common Stocks(1) | $ | 5,163,046 | $ | — | $ | — | $ | 5,163,046 | ||||
Short-Term Investments |
| 5,551 |
| — |
| — |
| 5,551 | ||||
Total | $ | 5,168,597 | $ | — | $ | — | $ | 5,168,597 |
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EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2020 |
AI-Enhanced U.S. High Dividend ETF | Level 1 | Level 2 | Level 3* | Total | ||||||||
Investments |
|
|
|
| ||||||||
Common Stocks(1) | $ | 2,341,693 | $ | — | $ | — | $ | 2,341,693 | ||||
Short-Term Investments |
| 12,718 |
| — |
| — |
| 12,718 | ||||
Total | $ | 2,354,411 | $ | — | $ | — | $ | 2,354,411 |
* The Fund did not hold any Level 3 securities at period end.
(1) For a detailed break-out of common stocks by market segment, please refer to the Schedule of Investments.
(b) Investment Transactions and Related Income
For financial reporting purposes, investment transactions are reported on trade date. However, for daily NAV determination, portfolio securities transactions are reflected no later than in the first calculation on the first business day following trade date. Dividend income is recorded on the ex-dividend date. Interest income is recognized on an accrual basis and includes, where applicable, the amortization of premium or accretion of discount based on effective yield. Gains or losses realized on sales of securities are determined using the specific identification method by comparing the identified cost of the security lot sold with the net sales proceeds. Dividend Income on the Statements of Operations is shown net of any foreign taxes withheld on income from foreign securities, which are provided for in accordance with each Fund’s understanding of the applicable tax rules and regulations.
(c) Foreign Currency Transactions
The accounting records of the Trust are maintained in U.S. dollars. Financial instruments and other assets and liabilities of the Trust denominated in a foreign currency, if any, are translated into U.S. dollars at current exchange rates. Purchases and sales of financial instruments, income receipts and expense payments are translated into U.S. dollars at the exchange rate on the date of the transaction. The Trust does not isolate that portion of the results of operations resulting from changes in foreign exchange rates from those resulting from changes in values to financial instruments. Such fluctuations are included with the net realized and unrealized gains or losses from investments. Realized foreign exchange gains or losses arise from transactions in financial instruments and foreign currencies, currency exchange fluctuations between the trade and settlement date of such transactions, and the difference between the amount of assets and liabilities recorded and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, including financial instruments, resulting from changes in currency exchange rates. Each Fund may be subject to foreign taxes related to foreign income received, capital gains on the sale of securities and certain foreign currency transactions (a portion of which may be reclaimable). All foreign taxes are recorded in accordance with the applicable regulations and rates that exist in the foreign jurisdictions in which each Fund invests.
(d) Federal Income Tax
It is the policy of each Fund to continue to qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986 (the “Code”), as amended, and to distribute substantially all of its net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required as long as each Fund qualifies as a regulated investment company.
Management of each Fund has evaluated tax positions taken or expected to be taken in the course of preparing each Fund’s tax returns to determine whether it is more-likely-than-not (i.e., greater than 50%) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is measured to determine the amount of benefit to recognize in the financial statements. Differences between tax positions taken in a tax return and amounts recognized in the financial statements will generally result in an increase in a liability for taxes payable (or a reduction of a tax refund receivable), including the recognition of any related interest and penalties as an operating expense. The determination has been made that there are not any uncertain tax positions that would require each Fund to record a tax liability and, therefore, there is no impact to each Fund’s financial statements. Each Fund’s policy
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EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2020 |
is to classify interest and penalties associated with underpayment of federal and state income taxes, if any, as income tax expense on its Statement of Operations. As of October 31, 2020, no Fund had any interest or penalties associated with the underpayment of any income taxes.
(e) Distributions to Shareholders
Each Fund distributes net investment income and capital gains, if any, at least annually. Each Fund may make distributions on a more frequent basis for such Fund to comply with the distributions requirement of the Code, in all events in a manner consistent with the provisions of the 1940 Act.
The amount of distributions from net investment income and net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g., return of capital and distribution reclassifications), such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences (e.g., wash sales and straddles) do not require a reclassification.
Note 3 – Transactions with Affiliates and Other Servicing Agreements
(a) Investment Advisory Agreement
Exchange Traded Concepts, LLC (the “Adviser”) serves as the investment adviser to the Trust, including each Fund, pursuant to an investment advisory agreement entered into by the Adviser and the Trust on behalf of each Fund (“Advisory Agreement”). Under the Advisory Agreement, the Adviser provides investment advisory services to each Fund. The Adviser is responsible for the day-to-day management of the Fund, including, among other things, providing an investment program for the Fund, trading portfolio securities on behalf of the Fund, and selecting broker-dealers to execute purchase and sale transactions, subject to the supervision of the Board. The Adviser also arranges for transfer agency, custody, fund administration and accounting, and other non-distribution related services necessary for each Fund to operate. The Adviser administers each Fund’s business affairs, provides office facilities and equipment and certain clerical, bookkeeping and administrative services, and provides its officers and employees to serve as officers or Trustees of the Trust.
For the services it provides to each Fund, the Adviser receives a fee, which is calculated daily and paid monthly, at an annual rate of 0.75% of average daily net assets of each Fund.
Under the Advisory Agreement, the Adviser has agreed to pay all expenses of each Fund except for the advisory fee, interest, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, and distribution fees and expenses paid by the Trust under any distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act.
(b) Distribution Arrangement
Foreside Fund Services, LLC, a Delaware limited liability company, (the “Distributor”) is the principal underwriter and distributor of each Fund’s Shares. The Distributor does not maintain any secondary market in any Fund’s Shares.
The Trust has adopted a Rule 12b-1 Distribution and Service Plan (the “Distribution and Service Plan”) pursuant to which payments of up to a maximum of 0.25% of average daily net assets may be made to compensate or reimburse financial intermediaries for activities principally intended to result in the sale of each Fund’s Shares. In accordance with the Distribution and Service Plan, the Distributor may enter into agreements with financial intermediaries and dealers relating to distribution and/or marketing services with respect to the Trust.
Currently, no payments are made under the Distribution and Service Plan. Such payments may only be made after approval by the Board. The Adviser and its affiliates may, out of their own resources, pay amounts to third parties for distribution or marketing services on behalf of the Trust.
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EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2020 |
(c) Other Servicing Agreements
The Bank of New York Mellon (“BNY Mellon”) serves as each Fund’s fund accountant, transfer agent, custodian and co-administrator and UMB Fund Services (“UMBFS”) serves as each Fund’s co-administrator.
Certain officers and an Interested Trustee of the Trust are also employees/officers of each Fund’s Adviser and affiliates of the Distributor.
Note 4 – Investment Transactions
Purchases and sales of investments, excluding in-kind transactions and short-term investments, for the six months ended October 31, 2020 were as follows:
Fund | Purchases | Sales | ||||
AI-Enhanced U.S. Large Cap ETF | $ | 5,773,082 | $ | 5,755,382 | ||
AI-Enhanced U.S. Large Cap Momentum ETF |
| 8,266,252 |
| 8,239,082 | ||
AI-Enhanced U.S. High Dividend ETF |
| 2,257,860 |
| 2,273,316 |
Purchases, sales, and realized gain/(loss) of in-kind transactions for the six months ended October 31, 2020 were as follows:
Fund | Purchases | Sales | Gain/(Loss) | ||||||
AI-Enhanced U.S. Large Cap ETF | $ | 4,977,443 | $ | 847,135 | $ | 241,194 | |||
AI-Enhanced U.S. Large Cap Momentum ETF |
| 1,687,081 |
| — |
| — | |||
AI-Enhanced U.S. High Dividend ETF |
| 583,506 |
| 1,178,577 |
| 117,309 |
Note 5 – Capital Share Transactions
Fund Shares are listed and traded on the Exchange on each day that the Exchange is open for business (“Business Day”). Each Fund’s Shares may only be purchased and sold on the Exchange through a broker-dealer. Because each Fund’s Shares trade at market prices rather than at their NAV, Shares may trade at a price equal to the NAV, greater than NAV (premium) or less than NAV (discount).
Each Fund offers and redeems Shares on a continuous basis at NAV only in large blocks of Shares, currently 25,000 Shares for each Fund (“Creation Unit”). Except when aggregated in Creation Units, Shares are not redeemable securities of a Fund. Fund Shares may only be purchased or redeemed directly from each Fund by certain financial institutions (“Authorized Participants”). An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company (“DTC”) participant and, in each case, must have executed a Participant Agreement with the Distributor. Creation Units are available for purchase and redemption on each Business Day and are offered and redeemed on an in-kind basis, together with the specified cash amount, or for an all cash amount.
To the extent contemplated by a participant agreement, in the event an Authorized Participant has submitted a redemption request in proper form but is unable to transfer all or part of the shares comprising a Creation Unit to be redeemed by the Distributor, on behalf of each Fund, by the time as set forth in a participant agreement, the Distributor may nonetheless accept the redemption request in reliance on the undertaking by the Authorized Participant to deliver the missing shares as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral equal to a percentage of the market value as set forth in the Participant Agreement. A participant agreement may permit each Fund to use such collateral to purchase the missing shares, and could subject an Authorized Participant to liability for any shortfall between the cost of each Fund acquiring such shares and the value of the collateral.
Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the Shares directly from each Fund. Rather, most retail investors will purchase Shares in the secondary market with the assistance of a broker, which will be subject to customary brokerage commissions or fees.
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EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2020 |
A fixed purchase (i.e., creation) transaction fee may be imposed for the transfer and other transaction costs associated with the purchase of Creation Units, and investors will be required to pay a creation transaction fee regardless of the number of Creation Units created in the transaction. Each Fund may adjust the creation transaction fee from time to time based upon actual experience. In addition, a variable fee may be imposed for cash purchases, non-standard orders, or partial cash purchases of Creation Units. The variable fee is primarily designed to cover non-standard charges, e.g., brokerage, taxes, foreign exchange, execution, market impact, and other costs and expenses, related to the execution of trades resulting from such transaction. Each Fund may adjust the non-standard charge from time to time based upon actual experience. Investors who use the services of an Authorized Participant, broker or other such intermediary may be charged a fee for such services which may include an amount for the creation transaction fee and non-standard charges. Investors are responsible for the costs of transferring the securities constituting the deposit securities to the account of the Trust. The Adviser may retain all or a portion of the transaction fee to the extent the Adviser bears the expenses that otherwise would be borne by the Trust in connection with the issuance of a Creation Unit, which the transaction fee is designed to cover. The standard Creation Unit transaction fees for AI-Enhanced U.S. Large Cap ETF, AI-Enhanced U.S. Large Cap Momentum ETF and AI-Enhanced U.S. High Dividend ETF are $1,750, $250 and $500, respectively, regardless of the number of Creation Units created in the transaction.
A fixed redemption transaction fee may be imposed for the transfer and other transaction costs associated with the redemption of Creation Units, and Authorized Participants will be required to pay a redemption transaction fee regardless of the number of Creation Units created in the transaction. The redemption transaction fee is the same no matter how many Creation Units are being redeemed pursuant to any one redemption request. Each Fund may adjust the redemption transaction fee from time to time based upon actual experience. In addition, a variable fee, payable to each Fund, may be imposed for cash redemptions, non-standard orders, or partial cash redemptions for each Fund. The variable fee is primarily designed to cover non-standard charges, e.g., brokerage, taxes, foreign exchange, execution, market impact, and other costs and expenses, related to the execution of trades resulting from such transaction. Investors who use the services of an Authorized Participant, broker or other such intermediary may be charged a fee for such services which may include an amount for the redemption transaction fees and non-standard charges. Investors are responsible for the costs of transferring the securities constituting each Fund’s securities to the account of the Trust. The non-standard charges are payable to each Fund as it incurs costs in connection with the redemption of Creation Units, the receipt of each Fund’s securities and the cash redemption amount and other transactions costs. The standard redemption transaction fees for AI-Enhanced U.S. Large Cap ETF, AI-Enhanced U.S. Large Cap Momentum ETF and AI-Enhanced U.S. High Dividend ETF are $1,750, $250 and $500 respectively, regardless of the number of Creation Units created in the transaction.
Note 6 – Principal Risks
As with any investment, an investor could lose all or part of their investment in each Fund and each Fund’s performance could trail that of other investments. Each Fund is subject to the principal risks noted below, any of which may adversely affect each Fund’s NAV, trading price, yield, total return and ability to meet its investment objective. A more complete description of principal risks is included in each Fund’s prospectus.
Common Stock Risk: Common stock holds the lowest priority in the capital structure of a company, and therefore takes the largest share of the company’s risk and its accompanying volatility. The value of the common stock held by each Fund may fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by each Fund participate, or facts relating to specific companies in which each Fund invests.
Depositary Receipt Risk (QRAFT AI-Enhanced U.S. Large Cap ETF and QRAFT AI-Enhanced U.S. Large Cap Momentum ETF only): ADRs and GDRs are subject to the risks associated with investing directly in foreign securities. In addition, investments in ADRs and GDRs may be less liquid than the underlying primary trading market.
Dividend Paying Securities Risk (QRAFT AI-Enhanced U.S. High Dividend ETF only): Securities that pay dividends, as a group, may be out of favor with the market and underperform the overall equity market or stocks of companies that do not pay dividends. In addition, changes in the dividend policies of the companies held by the Fund or the capital resources available for such company’s dividend payments may adversely affect the Fund.
Issuer-Specific Risk: Fund performance depends on the performance of individual securities to which each Fund has exposure. Issuer-specific events, including changes in the financial condition of an issuer, can have a negative impact on the value of each Fund.
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EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2020 |
Large Capitalization Risk: Returns on investments in securities of large companies could trail the returns on investments in securities of smaller and mid-sized companies.
Limited Authorized Participants, Market Makers and Liquidity Providers Concentration Risk: Because each Fund is an ETF, only a limited number of institutional investors (known as “Authorized Participants”) are authorized to purchase and redeem shares directly from each Fund. In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, Shares may trade at a material discount to NAV and possibly face delisting: (i) Authorized Participants exit the business or otherwise become unable to process creation and/or redemption orders and no other Authorized Participants step forward to perform these services, or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions.
Management Risk: Each Fund is actively-managed and may not meet its investment objective based on the Adviser’s success or failure to implement investment strategies for each Fund. Each Fund’s principal investment strategies are dependent upon the use of Qraft’s proprietary artificial intelligence security selection process and, as a result, the Adviser’s skill in understanding and utilizing such process. The achievement of the investment objective of each Fund cannot be guaranteed and the Adviser’s management of each Fund may not produce the intended results.
Market Risk: The market price of a security or instrument could decline, sometimes rapidly or unpredictably, due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic or political conditions throughout the world, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the market generally and on specific securities. The market value of a security may also decline because of factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry.
Models and Data Risk: Each Fund relies heavily on a proprietary artificial intelligence selection model as well as data and information supplied by third parties that are utilized by such model. To the extent the model does not perform as designed or as intended, each Fund’s strategy may not be successfully implemented, and each Fund may lose value. If the model or data are incorrect or incomplete, any decisions made in reliance thereon may lead to the inclusion or exclusion of securities that would have been excluded or included had the model or data been correct and complete.
New/Smaller Fund Risk: A new or smaller Fund is subject to the risk that its performance may not represent how each Fund is expected to or may perform in the long term. In addition, new Funds have limited operating histories for investors to evaluate and new and smaller Funds may not attract sufficient assets to achieve investment and trading efficiencies. There can be no assurance that each Fund will achieve an economically viable size, in which case it could ultimately liquidate. Each Fund may be liquidated by the Board of Trustees without a shareholder vote. In a liquidation, shareholders of each Fund will receive an amount equal to each Fund’s NAV, after deducting the costs of liquidation, including the transaction costs of disposing of each Fund’s portfolio investments. Receipt of a liquidation distribution may have negative tax consequences for shareholders. Additionally, during each Fund’s liquidation all or a portion of each Fund’s portfolio may be invested in a manner not consistent with its investment objective and investment policies.
Non-Diversification Risk: Each Fund is non-diversified, meaning that, as compared to a diversified fund, it can invest a greater percentage of its assets in securities issued by or representing a small number of issuers. As a result, the performance of these issuers can have a substantial impact on each Fund’s performance.
Operational Risk: Each Fund and its service providers may experience disruptions that arise from human error, processing and communications errors, counterparty or third-party errors, technology or systems failures, any of which may have an adverse impact on each Fund.
Portfolio Turnover Risk: Each Fund’s investment strategy may result in relatively high portfolio turnover, which may result in increased transaction costs and may lower Fund performance.
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EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2020 |
Sector Focus Risk: Each Fund may invest a significant portion of its assets in one or more sectors and thus will be more susceptible to the risks affecting those sectors. While each Fund’s sector exposure is expected to vary over time, each Fund anticipates that it may be subject to some or all of the risks described below. The list below is not a comprehensive list of the sectors to which each Fund may have exposure over time and should not be relied on as such.
Health Care Sector Risk (QRAFT AI-Enhanced U.S. High Dividend ETF only): Companies in the health care sector are subject to extensive government regulation and their profitability can be significantly affected by restrictions on government reimbursement for medical expenses, rising costs of medical products and services, pricing pressure (including price discounting), limited product lines, an increased emphasis on the delivery of health care through outpatient services, loss or impairment of intellectual property rights and litigation regarding product or service liability.
Information Technology Sector Risk (QRAFT AI-Enhanced U.S. Large Cap ETF and QRAFT AI-Enhanced U.S. Large Cap Momentum ETF only): Each Fund is subject to the risk that market or economic factors impacting technology companies and companies that rely heavily on technology advances could have a major effect on the value of each Fund’s investments. The value of stocks of technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition, both domestically and internationally, including competition from foreign competitors with lower production costs.
Trading Risk: Shares may trade on the Exchange above or below their NAV. The NAV of Shares will fluctuate with changes in the market value of each Fund’s holdings. In addition, although the Shares are currently listed on the Exchange, there can be no assurance that an active trading market for Shares will develop or be maintained. Trading in Fund Shares may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in Shares inadvisable.
Note 7 – Federal Income Taxes
The tax character of the distributions paid during the tax year ended April 30, 2020, as follows:
Distributions paid from | |||||||||
Fund | Ordinary | Net | Total | ||||||
AI-Enhanced U.S. Large Cap ETF | $ | 137,957 | $ | — | $ | 137,957 | |||
AI-Enhanced U.S. Large Cap Momentum ETF |
| 178,709 |
| — |
| 178,709 | |||
AI-Enhanced U.S. High Dividend ETF |
| — |
| — |
| — |
As of the tax year ended April 30,2020, the components of accumulated earnings (deficit) on a tax basis were as follows:
Fund | Undistributed | Undistributed | Accumulated | Unrealized | Accumulated | |||||||||||||
AI-Enhanced U.S. Large Cap ETF | $ | 62,544 | $ | 15 | $ | — |
| $ | 212,000 |
| $ | 274,559 |
| |||||
AI-Enhanced U.S. Large Cap Momentum ETF |
| 155,248 |
| — |
| — |
|
| (23,725 | ) |
| 131,523 |
| |||||
AI-Enhanced U.S. High Dividend ETF |
| 11,299 |
| — |
| (371,221 | ) |
| 50,345 |
|
| (309,577 | ) |
23
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Concluded) | October 31, 2020 |
At October 31, 2020, gross unrealized appreciation and depreciation of investments owned by each Fund, based on cost for federal income tax purposes were as follows:
Fund | Tax Cost of | Unrealized | Unrealized | Net | ||||||||||
AI-Enhanced U.S. Large Cap ETF | $ | 7,844,696 | $ | 607,068 | $ | (366,120 | ) | $ | 240,948 |
| ||||
AI-Enhanced U.S. Large Cap Momentum ETF |
| 5,285,962 |
| 233,484 |
| (350,849 | ) |
| (117,365 | ) | ||||
AI-Enhanced U.S. High Dividend ETF |
| 2,323,133 |
| 193,994 |
| (162,716 | ) |
| 31,278 |
|
The difference between cost amounts for financial statement and federal income tax purposes is due primarily to timing differences in recognizing certain gains and losses in security transactions.
As of the tax year ended April 30,2020, each Fund has non-expiring accumulated capital loss carryforwards as follows:
Fund | Short-Term | Long-Term | ||||
AI-Enhanced U.S. Large Cap ETF | $ | — | $ | — | ||
AI-Enhanced U.S. Large Cap Momentum ETF |
| — |
| — | ||
AI-Enhanced U.S. High Dividend ETF |
| 371,221 |
| — |
To the extent that each Fund may realize future net capital gains, those gains will be offset by any of its unused capital loss carryforward. Future capital loss carryover utilization in any given year may be subject to Code limitations.
Note 8 – Recent Market Events
The spread of COVID-19 around the world has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to the COVID-19 pandemic, as well as its impact on the U.S. and international economies. The operational and financial performance of the issuers of securities in which the Funds invest depends on future developments, including the duration and spread of the outbreak, and such developments may in turn impact the value of the Funds’ investments. The ultimate impact of the pandemic on the financial performance of the Funds’ investments is not reasonably estimable at this time.
Note 9 – Events Subsequent to the Fiscal Period End
In preparing these financial statements, management has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. Management has determined there are no subsequent events that would require disclosure in the Funds’ financial statements.
24
Expense Examples
All ETFs have operating expenses. As a shareholder of each Fund you incur an advisory fee. In addition to the advisory fee, a shareholder may pay brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses (including acquired fund fees and expenses), if any. It is important for you to understand the impact of these ongoing costs on your investment returns. Shareholders may incur brokerage commissions on their purchases and sales of each Fund’s shares, which are not reflected in these examples.
The following examples use the annualized expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in each Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period (unless otherwise noted below). The table below illustrates each Fund’s cost in two ways:
Actual Fund Return
This section helps you to estimate the actual expenses after fee waivers that each Fund may have incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in each Fund, and the “Ending Account Value” number is derived from deducting that expense cost from each Fund’s gross investment return for the period.
You can use the information, together with the actual amount you invested in each Fund, to estimate the expenses you paid over the period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for the Fund under “Expenses Paid During Period.”
Hypothetical 5% Return
This section helps you compare each Fund’s costs with those of other funds. It assumes that each Fund has an annualized return of 5% before expenses and the expense ratio for the period is unchanged. This example is useful in making comparisons because the SEC requires all funds to make this 5% calculation. You can assess each Fund’s comparative cost by comparing the hypothetical results for each Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.
NOTE: Because the return is set at 5% for comparison purposes - not each Fund’s actual return - the account values shown may not apply to your specific investment.
Beginning | Ending | Annualized | Expenses Paid | |||||
Actual Performance* | 5/1/20 | 10/31/20 |
| 5/1/20 – 10/31/20 | ||||
AI-Enhanced U.S. Large Cap ETF | $1,000.00 | $1,205.40 | 0.75% | $4.17 | ||||
AI-Enhanced U.S. Large Cap Momentum ETF | 1,000.00 | 1,337.50 | 0.75% | 4.42 | ||||
AI-Enhanced U.S. High Dividend ETF | 1,000.00 | 1,076.10 | 0.75% | 3.92 | ||||
Hypothetical (5% annual return before expenses)* | 5/1/20 | 10/31/20 |
| 5/1/20 – 10/31/20 | ||||
AI-Enhanced U.S. Large Cap ETF | $1,000.00 | $1,021.43 | 0.75% | $3.82 | ||||
AI-Enhanced U.S. Large Cap Momentum ETF | 1,000.00 | 1,021.43 | 0.75% | 3.82 | ||||
AI-Enhanced U.S. High Dividend ETF | 1,000.00 | 1,021.43 | 0.75% | 3.82 |
* Expenses paid during the period are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184 divided by 365 (to reflect the one-half year period).
25
Pursuant to Rule 22e-4 under the Investment Company Act of 1940, the Trust, on behalf of the series of the Trust covered by this shareholder report, has adopted a liquidity risk management program to govern the Trust’s approach to managing liquidity risk. Rule 22e-4 seeks to promote effective liquidity risk management, thereby reducing the risk that a Fund will be unable to meet its redemption obligations and mitigating dilution of the interests of its shareholders. The Trust’s liquidity risk management program (the “Program”), which adopts the liquidity risk management policies and procedures of the Adviser, is tailored to reflect the Funds’ particular risks, but not to eliminate all adverse impacts of liquidity risk, which would be incompatible with the nature of the Funds.
The Adviser, which is the administrator of the Program, has formed a Liquidity Risk Working Group (“LRWG”) consisting of certain individuals from ETC’s portfolio management, capital markets, and legal and compliance teams. The LRWG is responsible for conducting an initial assessment of the liquidity risk of the Funds and to manage the liquidity risk of the Funds on an ongoing basis. Meetings of the LRWG are held no less than monthly.
At the May 2020 meeting of the Board of Trustees of the Trust, the Trustees received a report pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the period ended December 31, 2019. The report concluded that the Program is adequately designed to assess and manage the Funds’ liquidity risk and has been effectively implemented. The report reflected that no material changes have been made to the Program since its implementation.
There can be no assurance that the Program will achieve its objectives in the future. Please refer to each Fund’s prospectus for more information regarding a Fund’s exposure to liquidity risk and other principal risks to which an investment in the Fund may be subject.
26
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10900 Hefner Pointe Drive, Suite 401
Oklahoma City, OK 73120
Investment Adviser:
Exchange Traded Concepts, LLC
10900 Hefner Pointe Drive, Suite 401
Oklahoma City, OK 73120
Distributor:
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, ME 04101
Legal Counsel:
Morgan, Lewis & Bockius LLP
1111 Pennsylvania Avenue NW
Washington, DC 20004
Proxy Voting Information
Exchange Traded Concepts’ proxy voting policies and procedures are attached to each Fund’s Statement of Additional Information, which is available without charge by visiting each Fund’s website at www.qraftaietf.com or the SEC’s website at www.sec.gov or by calling collect (855) 973-7880.
In addition, a description of how each Fund voted proxies relating to its portfolio securities during the most recent 12-month period ended June 30 is available without charge upon request by calling collect (855) 973-7880 or on the SEC’s website at www.sec.gov.
Quarterly Portfolio Holdings Information
Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal period as an exhibit to its reports on Form N-PORT within sixty days after the end of the period. Each Fund’s Form N-PORT reports are available on the SEC’s website at www.sec.gov. In addition, the Fund’s full portfolio holdings are updated daily and available on the Fund’s website at www.qraftaietf.com.
This report has been prepared for shareholders and may be distributed to others only if preceded or accompanied by a current prospectus.
Item 2. Code of Ethics.
Not applicable – only for annual reports.
Item 3. Audit Committee Financial Expert.
Not applicable – only for annual reports.
Item 4. Principal Accountant Fees and Services.
Not applicable – only for annual reports.
Item 5. Audit Committee of Listed Registrants.
Not applicable – only for annual reports.
Item 6. Investments.
(a) The Schedule of Investments as of the close of the reporting period are included as part of the report to shareholders filed under Item 1 of the Form N-CSR.
(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.
Not applicable.
Item 11. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of 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) | Not Applicable – only for annual reports. |
(a)(2) | Certifications pursuant to Rule 30a-2(a) are attached hereto. |
(a)(3) | Not applicable. |
(a)(4) | Not applicable. |
(b) | Certifications pursuant to Rule 30a-2(b) are furnished herewith. |
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) | Exchange Listed Funds Trust | |
By (Signature and Title) | /s/ J. Garrett Stevens | |
J. Garrett Stevens, President and Principal Executive Officer | ||
Date | December 22, 2020 |
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/ J. Garrett Stevens | |
J. Garrett Stevens, President and Principal Executive Officer | ||
Date | December 22, 2020 | |
By (Signature and Title) | /s/ Christopher W. Roleke | |
Christopher W. Roleke, Principal Financial Officer | ||
Date | December 22, 2020 |