UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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 400
Oklahoma City, Oklahoma 73120
(Address of principal executive offices) (Zip Code)
The Bank of New York Mellon
240 Greenwich Street
New York, New York 10286
(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, 2022
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
ITEM 1: REPORTS TO STOCKHOLDERS.
(a) | Insert a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1). |
EXCHANGE LISTED FUNDS TRUST
QRAFT AI-Enhanced U.S. High Dividend ETF (HDIV)
QRAFT AI-Enhanced U.S. Large Cap ETF (QRFT)
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF (AMOM)
QRAFT AI-Enhanced U.S. Next Value ETF (NVQ)
Semi-Annual Report
October 31, 2022
(Unaudited)
Exchange Listed Funds Trust TABLE OF CONTENTS | October 31, 2022 (Unaudited) |
QRAFT AI-Enhanced U.S. High Dividend ETF | ||
1 | ||
3 | ||
QRAFT AI-Enhanced U.S. Large Cap ETF | ||
4 | ||
9 | ||
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF | ||
10 | ||
11 | ||
QRAFT AI-Enhanced U.S. Next Value ETF | ||
12 | ||
14 | ||
15 | ||
16 | ||
17 | ||
19 | ||
21 | ||
29 | ||
30 | ||
31 |
Before investing you should carefully consider each Fund’s investment objectives, risks, charges and expenses. This and other information is available in the Funds’ prospectus, a copy of which may be obtained by visiting the Funds’ website at www.qraftaietf.com. Please read the Funds’ 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, except for the QRAFT AI-Enhanced U.S. Large Cap ETF, is classified as a non-diversified investment company under the Investment Company Act of 1940 (the “1940 Act”). The QRAFT AI-Enhanced U.S. Large Cap ETF is classified as a diversified investment company under the 1940 Act. Concentration in a particular industry or sector will subject each 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 of | Value | ||||
COMMON STOCKS — 99.3% | |||||
COMMUNICATION SERVICES — 1.0% |
| ||||
News Corp., Class A | 845 | $ | 14,255 | ||
Sirius XM Holdings, Inc. | 5,194 |
| 31,372 | ||
| 45,627 | ||||
CONSUMER DISCRETIONARY — 26.2% | |||||
Advance Auto Parts, Inc. | 86 |
| 16,333 | ||
Bath & Body Works, Inc. | 337 |
| 11,249 | ||
Best Buy Co., Inc. | 309 |
| 21,139 | ||
BRP, Inc. | 132 |
| 8,824 | ||
Columbia Sportswear Co. | 102 |
| 7,599 | ||
Crocs, Inc.* | 101 |
| 7,146 | ||
Darden Restaurants, Inc. | 170 |
| 24,334 | ||
Dick’s Sporting Goods, Inc. | 85 |
| 9,670 | ||
Dollar Tree, Inc.* | 294 |
| 46,599 | ||
DR Horton, Inc. | 462 |
| 35,519 | ||
Garmin Ltd. | 263 |
| 23,154 | ||
Genuine Parts Co. | 189 |
| 33,616 | ||
Hasbro, Inc. | 198 |
| 12,919 | ||
Home Depot, Inc. (The) | 1,181 |
| 349,730 | ||
Lithia Motors, Inc., Class A | 42 |
| 8,322 | ||
Lowe’s Cos., Inc. | 792 |
| 154,400 | ||
Newell Brands, Inc. | 636 |
| 8,783 | ||
O’Reilly Automotive, Inc.* | 82 |
| 68,648 | ||
Penske Automotive Group, Inc. | 110 |
| 12,278 | ||
Polaris, Inc. | 92 |
| 9,347 | ||
Ross Stores, Inc. | 461 |
| 44,113 | ||
Tapestry, Inc. | 360 |
| 11,405 | ||
Target Corp. | 592 |
| 97,236 | ||
Tempur Sealy International, Inc. | 283 |
| 7,610 | ||
Tractor Supply Co. | 149 |
| 32,746 | ||
Ulta Beauty, Inc.* | 69 |
| 28,937 | ||
VF Corp. | 543 |
| 15,340 | ||
Whirlpool Corp. | 81 |
| 11,197 | ||
Williams-Sonoma, Inc. | 100 |
| 12,383 | ||
Yum! Brands, Inc. | 374 |
| 44,225 | ||
| 1,174,801 | ||||
CONSUMER STAPLES — 32.1% |
| ||||
Albertsons Cos., Inc., Class A | 735 |
| 15,075 | ||
Altria Group, Inc. | 2,314 |
| 107,069 | ||
BJ’s Wholesale Club Holdings, Inc.* | 192 |
| 14,861 | ||
Casey’s General Stores, Inc. | 55 |
| 12,799 | ||
Clorox Co. (The) | 168 |
| 24,535 | ||
Colgate-Palmolive Co. | 1,081 |
| 79,821 |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
CONSUMER STAPLES (Continued) | |||||
Coty, Inc., Class A* | 1,309 | $ | 8,783 | ||
Estee Lauder Cos., Inc. (The), Class A | 300 |
| 60,147 | ||
Flowers Foods, Inc. | 331 |
| 9,503 | ||
Hershey Co. (The) | 193 |
| 46,083 | ||
Kellogg Co. | 452 |
| 34,723 | ||
Kimberly-Clark Corp. | 440 |
| 54,762 | ||
Kroger Co. (The) | 940 |
| 44,452 | ||
PepsiCo, Inc. | 1,753 |
| 318,310 | ||
Philip Morris International, Inc. | 1,977 |
| 181,587 | ||
Sysco Corp. | 662 |
| 57,303 | ||
US Foods Holding Corp.* | 343 |
| 10,208 | ||
Walmart, Inc. | 2,513 |
| 357,675 | ||
| 1,437,696 | ||||
ENERGY — 3.1% |
| ||||
Antero Midstream Corp. | 776 |
| 8,264 | ||
Enterprise Products Partners LP | 2,819 |
| 71,180 | ||
Magellan Midstream Partners LP | 295 |
| 15,915 | ||
MPLX LP | 1,331 |
| 44,642 | ||
| 140,001 | ||||
FINANCIALS — 6.1% |
| ||||
AGNC Investment Corp., REIT | 847 |
| 6,962 | ||
American Financial Group, Inc. | 120 |
| 17,413 | ||
Annaly Capital Management, Inc., REIT | 636 |
| 11,798 | ||
Citizens Financial Group, Inc. | 672 |
| 27,485 | ||
FS KKR Capital Corp. | 451 |
| 8,659 | ||
Invesco Ltd. | 689 |
| 10,555 | ||
KeyCorp | 1,276 |
| 22,802 | ||
Owl Rock Capital Corp. | 649 |
| 7,704 | ||
Prudential Financial, Inc. | 488 |
| 51,333 | ||
T Rowe Price Group, Inc. | 302 |
| 32,060 | ||
Truist Financial Corp. | 1,711 |
| 76,636 | ||
| 273,407 | ||||
HEALTH CARE — 4.2% |
| ||||
Cardinal Health, Inc. | 368 |
| 27,931 | ||
CVS Health Corp. | 1,675 |
| 158,623 | ||
| 186,554 | ||||
INDUSTRIALS — 7.0% |
| ||||
3M Co. | 734 |
| 92,330 | ||
Acuity Brands, Inc. | 51 |
| 9,362 | ||
AGCO Corp. | 111 |
| 13,783 | ||
Donaldson Co., Inc. | 187 |
| 10,743 |
1
QRAFT AI-Enhanced U.S. High Dividend ETF SCHEDULE OF INVESTMENTS (Concluded) | October 31, 2022 (Unaudited) |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
INDUSTRIALS (Continued) | |||||
Fastenal Co. | 760 | $ | 36,731 | ||
Ferguson PLC | 282 |
| 30,811 | ||
Fortune Brands Home & Security, Inc. | 193 |
| 11,642 | ||
Landstar System, Inc. | 57 |
| 8,904 | ||
Lennox International, Inc. | 52 |
| 12,146 | ||
Robert Half International, Inc. | 159 |
| 12,157 | ||
Snap-On, Inc. | 75 |
| 16,654 | ||
UFP Industries, Inc. | 100 |
| 7,123 | ||
WESCO International, Inc.* | 77 |
| 10,608 | ||
WW Grainger, Inc. | 67 |
| 39,151 | ||
| 312,145 | ||||
INFORMATION TECHNOLOGY — 15.9% | |||||
Cisco Systems, Inc. | 5,270 |
| 239,416 | ||
Hewlett Packard Enterprise Co. | 1,772 |
| 25,286 | ||
International Business Machines Corp. | 1,154 |
| 159,587 | ||
Juniper Networks, Inc. | 468 |
| 14,321 | ||
Logitech International SA | 241 |
| 11,963 | ||
National Instruments Corp. | 209 |
| 7,980 | ||
NetApp, Inc. | 303 |
| 20,989 | ||
Seagate Technology Holdings PLC | 293 |
| 14,550 | ||
Texas Instruments, Inc. | 1,164 |
| 186,973 | ||
Ubiquiti, Inc. | 82 |
| 28,434 | ||
| 709,499 | ||||
MATERIALS — 3.1% |
| ||||
Dow, Inc. | 943 |
| 44,076 | ||
Reliance Steel & Aluminum Co. | 85 |
| 17,126 | ||
Southern Copper Corp. | 1,012 |
| 47,533 | ||
Steel Dynamics, Inc. | 253 |
| 23,795 | ||
United States Steel Corp. | 386 |
| 7,859 | ||
| 140,389 | ||||
REAL ESTATE — 0.4% |
| ||||
Omega Healthcare Investors, Inc., REIT | 349 |
| 11,091 | ||
Vornado Realty Trust, REIT | 310 |
| 7,313 | ||
| 18,404 | ||||
UTILITIES — 0.2% |
| ||||
NextEra Energy Partners LP | 128 |
| 9,481 | ||
TOTAL COMMON STOCKS |
| 4,448,004 |
Number of | Value | ||||
SHORT-TERM INVESTMENTS — 0.5% | |||||
Invesco Government & Agency Portfolio – Institutional Class, 3.07%(a) | 22,518 | $ | 22,518 | ||
TOTAL SHORT TERM INVESTMENTS |
| 22,518 | |||
TOTAL INVESTMENTS — 99.8% |
| 4,470,522 | |||
Other Assets in Excess of Liabilities — 0.2% |
| 10,146 | |||
TOTAL NET ASSETS — 100.0% | $ | 4,480,668 |
* Non-income producing security.
(a) The rate is the annualized seven-day yield at period end.
REIT : Real Estate Investment Trust
2
Security Type/Sector | Percent of | ||
Common Stocks |
| ||
Communication Services | 1.0 | % | |
Consumer Discretionary | 26.2 | % | |
Consumer Staples | 32.1 | % | |
Energy | 3.1 | % | |
Financials | 6.1 | % | |
Health Care | 4.2 | % | |
Industrials | 7.0 | % | |
Information Technology | 15.9 | % | |
Materials | 3.1 | % | |
Real Estate | 0.4 | % | |
Utilities | 0.2 | % | |
Total Common Stocks | 99.3 | % | |
Short-Term Investments | 0.5 | % | |
Total Investments | 99.8 | % | |
Other Assets in Excess of Liabilities | 0.2 | % | |
Total Net Assets | 100.0 | % |
3
Number of | Value | ||||
COMMON STOCKS — 99.7% | |||||
COMMUNICATION SERVICES — 3.4% | |||||
Activision Blizzard, Inc. | 65 | $ | 4,732 | ||
Alphabet, Inc., Class A* | 1,025 |
| 96,873 | ||
AT&T, Inc. | 591 |
| 10,774 | ||
BCE, Inc. | 171 |
| 7,712 | ||
Comcast Corp., Class A | 369 |
| 11,712 | ||
Electronic Arts, Inc. | 27 |
| 3,401 | ||
Meta Platforms, Inc., Class A* | 190 |
| 17,700 | ||
Netflix, Inc.* | 37 |
| 10,800 | ||
TELUS Corp. | 261 |
| 5,452 | ||
T-Mobile US, Inc.* | 103 |
| 15,611 | ||
Verizon Communications, Inc. | 346 |
| 12,930 | ||
Walt Disney Co. (The)* | 150 |
| 15,981 | ||
Warner Bros Discovery, Inc.* | 241 |
| 3,133 | ||
| 216,811 | ||||
CONSUMER DISCRETIONARY — 8.9% | |||||
Airbnb, Inc., Class A* | 31 |
| 3,314 | ||
Amazon.com, Inc.* | 855 |
| 87,586 | ||
AutoZone, Inc.* | 2 |
| 5,066 | ||
Booking Holdings, Inc.* | 3 |
| 5,608 | ||
Chipotle Mexican Grill, Inc.* | 3 |
| 4,495 | ||
Coupang, Inc.* | 134 |
| 2,314 | ||
Dollar Tree, Inc.* | 24 |
| 3,804 | ||
Ferrari NV | 17 |
| 3,345 | ||
Ford Motor Co. | 325 |
| 4,345 | ||
Home Depot, Inc. (The) | 85 |
| 25,171 | ||
Las Vegas Sands Corp.* | 76 |
| 2,889 | ||
Lowe’s Cos., Inc. | 52 |
| 10,137 | ||
Lululemon Athletica, Inc.* | 349 |
| 114,835 | ||
Magna International, Inc. | 66 |
| 3,678 | ||
McDonald’s Corp. | 60 |
| 16,360 | ||
MercadoLibre, Inc.* | 3 |
| 2,705 | ||
Murphy USA, Inc. | 204 |
| 64,160 | ||
NVR, Inc.* | 17 |
| 72,042 | ||
O’Reilly Automotive, Inc.* | 5 |
| 4,186 | ||
Pool Corp. | 132 |
| 40,158 | ||
Rivian Automotive, Inc., Class A* | 89 |
| 3,112 | ||
Ross Stores, Inc. | 29 |
| 2,775 | ||
Starbucks Corp. | 94 |
| 8,140 | ||
Stellantis NV | 312 |
| 4,218 | ||
Target Corp. | 38 |
| 6,242 |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
CONSUMER DISCRETIONARY (Continued) | |||||
Tesla, Inc.* | 262 | $ | 59,616 | ||
TJX Cos., Inc. (The) | 96 |
| 6,922 | ||
Yum! Brands, Inc. | 28 |
| 3,311 | ||
| 570,534 | ||||
CONSUMER STAPLES — 3.9% |
| ||||
Altria Group, Inc. | 150 |
| 6,940 | ||
Archer-Daniels-Midland Co. | 45 |
| 4,364 | ||
Coca-Cola Co. (The) | 359 |
| 21,486 | ||
Colgate-Palmolive Co. | 69 |
| 5,095 | ||
Costco Wholesale Corp. | 157 |
| 78,736 | ||
Estee Lauder Cos., Inc. (The), Class A | 18 |
| 3,609 | ||
General Mills, Inc. | 49 |
| 3,997 | ||
Hershey Co. (The) | 15 |
| 3,582 | ||
Hormel Foods Corp. | 45 |
| 2,090 | ||
Kimberly-Clark Corp. | 28 |
| 3,485 | ||
Kroger Co. (The) | 73 |
| 3,452 | ||
Mondelez International, Inc., Class A | 115 |
| 7,070 | ||
Monster Beverage Corp.* | 45 |
| 4,217 | ||
PepsiCo, Inc. | 115 |
| 20,882 | ||
Philip Morris International, Inc. | 129 |
| 11,849 | ||
Procter & Gamble Co. (The) | 199 |
| 26,799 | ||
Sysco Corp. | 42 |
| 3,636 | ||
Walgreens Boots Alliance, Inc. | 86 |
| 3,139 | ||
Walmart, Inc. | 227 |
| 32,309 | ||
| 246,737 | ||||
ENERGY — 4.6% |
| ||||
Canadian Natural Resources Ltd. | 218 |
| 13,067 | ||
Cenovus Energy, Inc. | 371 |
| 7,494 | ||
Chevron Corp. | 163 |
| 29,487 | ||
ConocoPhillips | 108 |
| 13,618 | ||
Coterra Energy, Inc. | 1,865 |
| 58,057 | ||
Devon Energy Corp. | 54 |
| 4,177 | ||
Enbridge, Inc. | 381 |
| 14,840 | ||
Energy Transfer LP | 308 |
| 3,933 | ||
Enterprise Products Partners LP | 1,446 |
| 36,512 | ||
EOG Resources, Inc. | 48 |
| 6,553 | ||
Exxon Mobil Corp. | 347 |
| 38,451 | ||
Hess Corp. | 31 |
| 4,374 | ||
Marathon Petroleum Corp. | 45 |
| 5,113 |
4
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Continued) | October 31, 2022 (Unaudited) |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
ENERGY (Continued) | |||||
MPLX LP | 101 | $ | 3,388 | ||
Occidental Petroleum Corp. | 78 |
| 5,663 | ||
Ovintiv, Inc. | 59 |
| 2,988 | ||
Pembina Pipeline Corp. | 104 |
| 3,433 | ||
Phillips 66 | 39 |
| 4,067 | ||
Pioneer Natural Resources Co. | 20 |
| 5,128 | ||
Schlumberger NV | 116 |
| 6,035 | ||
Suncor Energy, Inc. | 267 |
| 9,182 | ||
TC Energy Corp. | 185 |
| 8,125 | ||
Valero Energy Corp. | 33 |
| 4,143 | ||
Williams Cos., Inc. (The) | 121 |
| 3,960 | ||
| 291,788 | ||||
FINANCIALS — 18.9% |
| ||||
Aflac, Inc. | 65 |
| 4,232 | ||
Allstate Corp. (The) | 279 |
| 35,224 | ||
American Express Co. | 62 |
| 9,204 | ||
American International Group, Inc. | 79 |
| 4,503 | ||
Ameriprise Financial, Inc. | 10 |
| 3,091 | ||
Aon PLC, Class A | 202 |
| 56,861 | ||
Apollo Global Management, Inc. | 58 |
| 3,211 | ||
Arthur J Gallagher & Co. | 208 |
| 38,913 | ||
Bank of America Corp. | 666 |
| 24,003 | ||
Bank of Montreal | 122 |
| 11,234 | ||
Bank of New York Mellon Corp. (The) | 80 |
| 3,369 | ||
Bank of Nova Scotia (The) | 227 |
| 10,969 | ||
Berkshire Hathaway, Inc., Class B* | 417 |
| 123,053 | ||
BlackRock, Inc. | 73 |
| 47,151 | ||
Blackstone, Inc. | 59 |
| 5,377 | ||
Brookfield Asset Management, Inc., Class A | 295 |
| 11,685 | ||
Canadian Imperial Bank of Commerce | 171 |
| 7,765 | ||
Capital One Financial Corp. | 32 |
| 3,393 | ||
Charles Schwab Corp. (The) | 150 |
| 11,950 | ||
Chubb Ltd. | 35 |
| 7,521 | ||
Citigroup, Inc. | 160 |
| 7,338 | ||
CME Group, Inc. | 30 |
| 5,199 | ||
Discover Financial Services | 24 |
| 2,507 | ||
Erie Indemnity Co., Class A | 336 |
| 86,355 | ||
Fidelity National Financial, Inc. | 1,496 |
| 58,912 |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
FINANCIALS (Continued) | |||||
Franklin Resources, Inc. | 1,861 | $ | 43,640 | ||
Goldman Sachs Group, Inc. (The) | 29 |
| 9,991 | ||
Intercontinental Exchange, Inc. | 45 |
| 4,301 | ||
JPMorgan Chase & Co. | 242 |
| 30,463 | ||
KKR & Co., Inc. | 59 |
| 2,869 | ||
M&T Bank Corp. | 17 |
| 2,862 | ||
Manulife Financial Corp. | 362 |
| 5,991 | ||
MarketAxess Holdings, Inc. | 301 |
| 73,456 | ||
Marsh & McLennan Cos., Inc. | 392 |
| 63,304 | ||
MetLife, Inc. | 66 |
| 4,832 | ||
Moody’s Corp. | 153 |
| 40,525 | ||
Morgan Stanley | 144 |
| 11,832 | ||
MSCI, Inc. | 9 |
| 4,220 | ||
Nasdaq, Inc. | 51 |
| 3,174 | ||
PNC Financial Services Group, Inc. (The) | 34 |
| 5,502 | ||
Progressive Corp. (The) | 48 |
| 6,163 | ||
Prudential Financial, Inc. | 37 |
| 3,892 | ||
Raymond James Financial, Inc. | 510 |
| 60,251 | ||
Royal Bank of Canada | 263 |
| 24,320 | ||
S&P Global, Inc. | 281 |
| 90,271 | ||
Sun Life Financial, Inc. | 110 |
| 4,670 | ||
Synchrony Financial | 1,047 |
| 37,231 | ||
Toronto-Dominion Bank (The) | 339 |
| 21,693 | ||
Truist Financial Corp. | 109 |
| 4,882 | ||
US Bancorp | 122 |
| 5,179 | ||
Wells Fargo & Co. | 313 |
| 14,395 | ||
Willis Towers Watson PLC | 180 |
| 39,278 | ||
| 1,202,207 | ||||
HEALTH CARE — 13.2% |
| ||||
Abbott Laboratories | 144 |
| 14,247 | ||
AbbVie, Inc. | 146 |
| 21,374 | ||
Agilent Technologies, Inc. | 24 |
| 3,320 | ||
Alcon, Inc. | 49 |
| 2,973 | ||
AmerisourceBergen Corp. | 22 |
| 3,459 | ||
Amgen, Inc. | 45 |
| 12,166 | ||
Baxter International, Inc. | 51 |
| 2,772 | ||
Becton Dickinson and Co. | 24 |
| 5,663 | ||
Biogen, Inc.* | 15 |
| 4,252 | ||
Boston Scientific Corp.* | 117 |
| 5,044 | ||
Bristol-Myers Squibb Co. | 176 |
| 13,635 | ||
Centene Corp.* | 581 |
| 49,461 |
5
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Continued) | October 31, 2022 (Unaudited) |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
HEALTH CARE (Continued) | |||||
Charles River Laboratories International, Inc.* | 153 | $ | 32,474 | ||
Cigna Corp. | 281 |
| 90,780 | ||
CVS Health Corp. | 108 |
| 10,228 | ||
Danaher Corp. | 59 |
| 14,849 | ||
DaVita, Inc.* | 428 |
| 31,248 | ||
Dexcom, Inc.* | 39 |
| 4,710 | ||
Edwards Lifesciences Corp.* | 52 |
| 3,766 | ||
Elevance Health, Inc. | 19 |
| 10,389 | ||
Eli Lilly & Co. | 79 |
| 28,605 | ||
Gilead Sciences, Inc. | 103 |
| 8,081 | ||
Humana, Inc. | 238 |
| 132,823 | ||
IDEXX Laboratories, Inc.* | 7 |
| 2,518 | ||
Illumina, Inc.* | 17 |
| 3,890 | ||
Intuitive Surgical, Inc.* | 30 |
| 7,394 | ||
IQVIA Holdings, Inc.* | 17 |
| 3,564 | ||
Johnson & Johnson | 218 |
| 37,925 | ||
McKesson Corp. | 97 |
| 37,769 | ||
Medtronic PLC | 109 |
| 9,520 | ||
Merck & Co., Inc. | 209 |
| 21,151 | ||
Moderna, Inc.* | 32 |
| 4,811 | ||
Pfizer, Inc. | 464 |
| 21,599 | ||
Regeneron Pharmaceuticals, Inc.* | 10 |
| 7,487 | ||
ResMed, Inc. | 11 |
| 2,461 | ||
Seagen, Inc.* | 17 |
| 2,162 | ||
Stryker Corp. | 31 |
| 7,106 | ||
Thermo Fisher Scientific, Inc. | 33 |
| 16,961 | ||
UnitedHealth Group, Inc. | 240 |
| 133,236 | ||
Vertex Pharmaceuticals, Inc.* | 21 |
| 6,552 | ||
Zoetis, Inc. | 38 |
| 5,730 | ||
| 838,155 | ||||
INDUSTRIALS — 14.9% |
| ||||
3M Co. | 46 |
| 5,786 | ||
AMETEK, Inc. | 19 |
| 2,464 | ||
Boeing Co. (The)* | 49 |
| 6,983 | ||
Booz Allen Hamilton Holding Corp. | 949 |
| 103,299 | ||
Builders FirstSource, Inc.* | 772 |
| 47,601 | ||
CACI International, Inc., Class A* | 168 |
| 51,077 | ||
Canadian National Railway Co. | 129 |
| 15,279 | ||
Canadian Pacific Railway Ltd. | 759 |
| 56,538 | ||
Carrier Global Corp. | 85 |
| 3,380 |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
INDUSTRIALS (Continued) | |||||
Caterpillar, Inc. | 45 | $ | 9,741 | ||
CH Robinson Worldwide, Inc. | 543 |
| 53,062 | ||
Cintas Corp. | 128 |
| 54,726 | ||
Copart, Inc.* | 24 |
| 2,760 | ||
CoStar Group, Inc.* | 33 |
| 2,730 | ||
CSX Corp. | 179 |
| 5,202 | ||
Cummins, Inc. | 15 |
| 3,668 | ||
Deere & Co. | 24 |
| 9,500 | ||
Eaton Corp. PLC | 32 |
| 4,802 | ||
Emerson Electric Co. | 49 |
| 4,243 | ||
Expeditors International of Washington, Inc. | 490 |
| 47,946 | ||
Fastenal Co. | 923 |
| 44,609 | ||
FedEx Corp. | 22 |
| 3,526 | ||
General Dynamics Corp. | 24 |
| 5,995 | ||
General Electric Co. | 91 |
| 7,081 | ||
Honeywell International, Inc. | 56 |
| 11,425 | ||
Illinois Tool Works, Inc. | 25 |
| 5,338 | ||
JB Hunt Transport Services, Inc. | 299 |
| 51,150 | ||
Johnson Controls International PLC | 68 |
| 3,933 | ||
L3Harris Technologies, Inc. | 18 |
| 4,436 | ||
Leidos Holdings, Inc. | 447 |
| 45,411 | ||
Lockheed Martin Corp. | 90 |
| 43,801 | ||
Masco Corp. | 655 |
| 30,307 | ||
Norfolk Southern Corp. | 19 |
| 4,333 | ||
Northrop Grumman Corp. | 12 |
| 6,588 | ||
Old Dominion Freight Line, Inc. | 10 |
| 2,746 | ||
Otis Worldwide Corp. | 42 |
| 2,967 | ||
PACCAR, Inc. | 34 |
| 3,292 | ||
Parker-Hannifin Corp. | 10 |
| 2,906 | ||
Quanta Services, Inc. | 256 |
| 36,362 | ||
Raytheon Technologies Corp. | 122 |
| 11,568 | ||
Republic Services, Inc. | 26 |
| 3,448 | ||
Ritchie Bros Auctioneers, Inc. | 623 |
| 40,701 | ||
Rockwell Automation, Inc. | 10 |
| 2,553 | ||
Thomson Reuters Corp. | 92 |
| 9,778 | ||
Trane Technologies PLC | 24 |
| 3,831 | ||
TransDigm Group, Inc. | 3 |
| 1,727 | ||
Uber Technologies, Inc.* | 163 |
| 4,331 | ||
Union Pacific Corp. | 241 |
| 47,511 | ||
Verisk Analytics, Inc. | 17 |
| 3,108 |
6
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Continued) | October 31, 2022 (Unaudited) |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
INDUSTRIALS (Continued) | |||||
Waste Connections, Inc. | 48 | $ | 6,332 | ||
Waste Management, Inc. | 34 |
| 5,385 | ||
WW Grainger, Inc. | 3 |
| 1,753 | ||
| 949,019 | ||||
INFORMATION TECHNOLOGY — 16.8% | |||||
Accenture PLC, Class A | 54 |
| 15,331 | ||
Adobe, Inc.* | 38 |
| 12,103 | ||
Advanced Micro Devices, Inc.* | 134 |
| 8,048 | ||
Amphenol Corp., Class A | 49 |
| 3,716 | ||
Analog Devices, Inc. | 43 |
| 6,133 | ||
Apple, Inc. | 1,348 |
| 206,702 | ||
Applied Materials, Inc. | 73 |
| 6,445 | ||
Arista Networks, Inc.* | 24 |
| 2,901 | ||
Atlassian Corp., Class A* | 15 |
| 3,041 | ||
Autodesk, Inc.* | 17 |
| 3,643 | ||
Automatic Data Processing, Inc. | 34 |
| 8,218 | ||
Block, Inc.* | 52 |
| 3,124 | ||
Broadcom, Inc. | 33 |
| 15,514 | ||
Cadence Design Systems, Inc.* | 24 |
| 3,633 | ||
CGI, Inc.* | 609 |
| 49,006 | ||
Cisco Systems, Inc. | 342 |
| 15,537 | ||
Cognizant Technology Solutions Corp., Class A | 1,133 |
| 70,529 | ||
Corning, Inc. | 84 |
| 2,702 | ||
Crowdstrike Holdings, Inc., Class A* | 17 |
| 2,740 | ||
Datadog, Inc., Class A* | 28 |
| 2,254 | ||
Enphase Energy, Inc.* | 10 |
| 3,070 | ||
EPAM Systems, Inc.* | 155 |
| 54,250 | ||
Fidelity National Information Services, Inc. | 51 |
| 4,233 | ||
Fiserv, Inc.* | 52 |
| 5,342 | ||
Fortinet, Inc.* | 80 |
| 4,573 | ||
Genpact Ltd. | 1,106 |
| 53,641 | ||
Global Payments, Inc. | 27 |
| 3,085 | ||
GLOBALFOUNDRIES, Inc.* | 45 |
| 2,552 | ||
HP, Inc. | 102 |
| 2,817 | ||
Intel Corp. | 339 |
| 9,638 | ||
International Business Machines Corp. | 73 |
| 10,095 | ||
Intuit, Inc. | 24 |
| 10,260 | ||
Keysight Technologies, Inc.* | 17 |
| 2,961 | ||
KLA Corp. | 12 |
| 3,797 |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
INFORMATION TECHNOLOGY (Continued) | |||||
Lam Research Corp. | 10 | $ | 4,048 | ||
Marvell Technology, Inc. | 85 |
| 3,373 | ||
Mastercard, Inc., Class A | 80 |
| 26,254 | ||
Microchip Technology, Inc. | 56 |
| 3,457 | ||
Micron Technology, Inc. | 91 |
| 4,923 | ||
Microsoft Corp. | 626 |
| 145,313 | ||
Motorola Solutions, Inc. | 17 |
| 4,245 | ||
NVIDIA Corp. | 206 |
| 27,804 | ||
NXP Semiconductors NV | 25 |
| 3,652 | ||
ON Semiconductor Corp.* | 43 |
| 2,642 | ||
Oracle Corp. | 220 |
| 17,175 | ||
Palo Alto Networks, Inc.* | 24 |
| 4,118 | ||
Paychex, Inc. | 286 |
| 33,837 | ||
PayPal Holdings, Inc.* | 95 |
| 7,940 | ||
QUALCOMM, Inc. | 93 |
| 10,942 | ||
Roper Technologies, Inc. | 10 |
| 4,145 | ||
Salesforce, Inc.* | 81 |
| 13,170 | ||
ServiceNow, Inc.* | 17 |
| 7,153 | ||
Shopify, Inc., Class A* | 223 |
| 7,633 | ||
Snowflake, Inc., Class A* | 26 |
| 4,168 | ||
Synopsys, Inc.* | 12 |
| 3,511 | ||
TD SYNNEX Corp. | 724 |
| 66,253 | ||
TE Connectivity Ltd. | 31 |
| 3,789 | ||
Texas Instruments, Inc. | 76 |
| 12,208 | ||
Trade Desk, Inc. (The), Class A* | 38 |
| 2,023 | ||
Visa, Inc., Class A | 136 |
| 28,174 | ||
VMware, Inc., Class A | 35 |
| 3,939 | ||
Workday, Inc., Class A* | 19 |
| 2,961 | ||
| 1,070,484 | ||||
MATERIALS — 4.8% |
| ||||
Agnico Eagle Mines Ltd. | 87 |
| 3,825 | ||
Air Products and Chemicals, Inc. | 136 |
| 34,054 | ||
Albemarle Corp. | 10 |
| 2,799 | ||
Barrick Gold Corp. | 2,676 |
| 40,220 | ||
Corteva, Inc. | 59 |
| 3,855 | ||
Dow, Inc. | 73 |
| 3,412 | ||
DuPont de Nemours, Inc. | 51 |
| 2,917 | ||
Ecolab, Inc. | 28 |
| 4,398 | ||
Franco-Nevada Corp. | 37 |
| 4,573 | ||
Kinross Gold Corp. | 13,643 |
| 49,524 | ||
Linde PLC | 41 |
| 12,191 |
7
QRAFT AI-Enhanced U.S. Large Cap ETF SCHEDULE OF INVESTMENTS (Concluded) | October 31, 2022 (Unaudited) |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
MATERIALS (Continued) | |||||
LyondellBasell Industries NV, Class A | 27 | $ | 2,064 | ||
Newmont Corp. | 801 |
| 33,898 | ||
Nucor Corp. | 26 |
| 3,416 | ||
Nutrien Ltd. | 104 |
| 8,788 | ||
PPG Industries, Inc. | 24 |
| 2,740 | ||
Royal Gold, Inc. | 475 |
| 45,106 | ||
Sherwin-Williams Co. (The) | 22 |
| 4,951 | ||
Southern Copper Corp. | 785 |
| 36,872 | ||
Teck Resources Ltd., Class B | 101 |
| 3,074 | ||
Wheaton Precious Metals Corp. | 101 |
| 3,302 | ||
| 305,979 | ||||
REAL ESTATE — 5.6% |
| ||||
American Tower Corp., REIT | 163 |
| 33,772 | ||
AvalonBay Communities, Inc., REIT | 11 |
| 1,926 | ||
Crown Castle International Corp., REIT | 36 |
| 4,797 | ||
Digital Realty Trust, Inc., REIT | 28 |
| 2,807 | ||
EastGroup Properties, Inc., REIT | 450 |
| 70,510 | ||
Equinix, Inc., REIT | 8 |
| 4,532 | ||
Equity Residential, REIT | 31 |
| 1,954 | ||
First Industrial Realty Trust, Inc., REIT | 1,339 |
| 63,777 | ||
Gaming and Leisure Properties, Inc., REIT | 919 |
| 46,060 | ||
Kimco Realty Corp., REIT | 1,577 |
| 33,716 | ||
Prologis, Inc., REIT | 402 |
| 44,522 | ||
Public Storage, REIT | 15 |
| 4,646 | ||
Realty Income Corp., REIT | 528 |
| 32,879 | ||
SBA Communications Corp., REIT | 10 |
| 2,699 | ||
Simon Property Group, Inc., REIT | 32 |
| 3,487 | ||
VICI Properties, Inc., REIT | 94 |
| 3,010 | ||
Welltower, Inc., REIT | 45 |
| 2,747 | ||
| 357,841 | ||||
UTILITIES — 4.7% |
| ||||
American Electric Power Co., Inc. | 44 |
| 3,869 | ||
Brookfield Infrastructure Partners LP | 87 |
| 3,165 | ||
CMS Energy Corp. | 547 |
| 31,206 | ||
Consolidated Edison, Inc. | 30 |
| 2,639 | ||
Constellation Energy Corp. | 27 |
| 2,553 | ||
Dominion Energy, Inc. | 68 |
| 4,758 |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
UTILITIES (Continued) | |||||
Duke Energy Corp. | 64 | $ | 5,964 | ||
Entergy Corp. | 371 |
| 39,749 | ||
Evergy, Inc. | 549 |
| 33,560 | ||
Eversource Energy | 423 |
| 32,266 | ||
Exelon Corp. | 80 |
| 3,087 | ||
Fortis, Inc. | 89 |
| 3,471 | ||
NextEra Energy, Inc. | 169 |
| 13,097 | ||
PG&E Corp.* | 175 |
| 2,613 | ||
Public Service Enterprise Group, Inc. | 50 |
| 2,804 | ||
Sempra Energy | 261 |
| 39,395 | ||
Southern Co. (The) | 478 |
| 31,299 | ||
WEC Energy Group, Inc. | 26 |
| 2,375 | ||
Xcel Energy, Inc. | 626 |
| 40,759 | ||
| 298,629 | ||||
TOTAL COMMON STOCKS |
| 6,348,184 | |||
| |||||
SHORT-TERM INVESTMENTS — 0.3% | |||||
Invesco Government & Agency Portfolio – Institutional Class, 3.07%(a) | 19,858 |
| 19,858 | ||
TOTAL SHORT TERM INVESTMENTS |
| 19,858 | |||
TOTAL INVESTMENTS — 100.0% |
| 6,368,042 | |||
Other Assets in Excess of Liabilities — 0.0% |
| 530 | |||
TOTAL NET ASSETS — 100.0% | $ | 6,368,572 |
* Non-income producing security.
(a) The rate is the annualized seven-day yield at period end.
REIT : Real Estate Investment Trust
8
Security Type/Sector | Percent of | ||
Common Stocks |
| ||
Communication Services | 3.4 | % | |
Consumer Discretionary | 8.9 | % | |
Consumer Staples | 3.9 | % | |
Energy | 4.6 | % | |
Financials | 18.9 | % | |
Health Care | 13.2 | % | |
Industrials | 14.9 | % | |
Information Technology | 16.8 | % | |
Materials | 4.8 | % | |
Real Estate | 5.6 | % | |
Utilities | 4.7 | % | |
Total Common Stocks | 99.7 | % | |
Short-Term Investments | 0.3 | % | |
Total Investments | 100.0 | % | |
Other Assets in Excess of Liabilities | 0.0 | % | |
Total Net Assets | 100.0 | % |
9
Number of | Value | ||||
COMMON STOCKS — 99.7% | |||||
CONSUMER DISCRETIONARY — 22.6% | |||||
AutoZone, Inc.* | 101 | $ | 255,821 | ||
Dollar Tree, Inc.* | 1,370 |
| 217,145 | ||
Home Depot, Inc. (The) | 2,957 |
| 875,656 | ||
Lowe’s Cos., Inc. | 2,191 |
| 427,136 | ||
Lululemon Athletica, Inc.* | 703 |
| 231,315 | ||
Murphy USA, Inc. | 449 |
| 141,215 | ||
O’Reilly Automotive, Inc.* | 317 |
| 265,383 | ||
Tractor Supply Co. | 865 |
| 190,101 | ||
| 2,603,772 | ||||
CONSUMER STAPLES — 15.4% | |||||
BJ’s Wholesale Club Holdings, Inc.* | 1,823 |
| 141,100 | ||
Casey’s General Stores, Inc. | 625 |
| 145,444 | ||
Flowers Foods, Inc. | 4,887 |
| 140,306 | ||
Hershey Co. (The) | 869 |
| 207,491 | ||
Sysco Corp. | 2,834 |
| 245,311 | ||
Walmart, Inc. | 6,291 |
| 895,398 | ||
| 1,775,050 | ||||
ENERGY — 18.5% |
| ||||
Cenovus Energy, Inc. | 18,631 |
| 376,346 | ||
Civitas Resources, Inc. | 2,085 |
| 145,762 | ||
Continental Resources, Inc. | 2,549 |
| 188,550 | ||
EOG Resources, Inc. | 2,490 |
| 339,935 | ||
Hess Corp. | 1,791 |
| 252,674 | ||
HF Sinclair Corp. | 2,554 |
| 156,228 | ||
Marathon Petroleum Corp. | 2,379 |
| 270,302 | ||
PBF Energy, Inc., Class A* | 3,360 |
| 148,680 | ||
Valero Energy Corp. | 2,032 |
| 255,118 | ||
| 2,133,595 | ||||
HEALTH CARE — 11.9% |
| ||||
AMN Healthcare Services, Inc.* | 1,123 |
| 140,937 | ||
Chemed Corp. | 283 |
| 132,124 | ||
Humana, Inc. | 552 |
| 308,060 | ||
McKesson Corp. | 689 |
| 268,276 | ||
Mettler-Toledo International, Inc.* | 158 |
| 199,859 | ||
Vertex Pharmaceuticals, Inc.* | 1,040 |
| 324,480 | ||
| 1,373,736 | ||||
INDUSTRIALS — 12.9% | |||||
Advanced Drainage Systems, Inc. | 1,080 |
| 125,151 | ||
Applied Industrial Technologies, Inc. | 1,142 |
| 142,042 | ||
Builders FirstSource, Inc.* | 2,223 |
| 137,070 | ||
Carlisle Cos., Inc. | 518 |
| 123,698 |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
INDUSTRIALS (Continued) | |||||
CH Robinson Worldwide, Inc. | 1,435 | $ | 140,228 | ||
Fastenal Co. | 3,825 |
| 184,862 | ||
Landstar System, Inc. | 837 |
| 130,756 | ||
Rollins, Inc. | 4,371 |
| 183,932 | ||
UFP Industries, Inc. | 1,642 |
| 116,960 | ||
WW Grainger, Inc. | 351 |
| 205,107 | ||
| 1,489,806 | ||||
INFORMATION TECHNOLOGY — 5.9% | |||||
Enphase Energy, Inc.* | 738 |
| 226,566 | ||
Fair Isaac Corp.* | 326 |
| 156,102 | ||
Qualys, Inc.* | 868 |
| 123,742 | ||
Ubiquiti, Inc. | 521 |
| 180,656 | ||
| 687,066 | ||||
MATERIALS — 12.5% | |||||
CF Industries Holdings, Inc. | 1,632 |
| 173,416 | ||
ICL Group Ltd. | 16,503 |
| 148,857 | ||
Mosaic Co. (The) | 3,116 |
| 167,485 | ||
Nucor Corp. | 1,684 |
| 221,244 | ||
Nutrien Ltd. | 4,623 |
| 390,643 | ||
Reliance Steel & Aluminum Co. | 772 |
| 155,543 | ||
Steel Dynamics, Inc. | 1,984 |
| 186,595 | ||
| 1,443,783 | ||||
TOTAL COMMON STOCKS |
| 11,506,808 | |||
| |||||
SHORT-TERM INVESTMENTS — 0.3% | |||||
Invesco Government & Agency Portfolio – Institutional | 36,041 |
| 36,041 | ||
TOTAL SHORT TERM INVESTMENTS |
| 36,041 | |||
TOTAL INVESTMENTS — 100.0% (Cost $10,814,036) |
| 11,542,849 | |||
Other Assets in Excess of |
| 393 | |||
TOTAL NET ASSETS — 100.0% | $ | 11,543,242 |
* Non-income producing security.
(a) The rate is the annualized seven-day yield at period end.
10
Security Type/Sector | Percent of | ||
Common Stocks |
| ||
Consumer Discretionary | 22.6 | % | |
Consumer Staples | 15.4 | % | |
Energy | 18.5 | % | |
Health Care | 11.9 | % | |
Industrials | 12.9 | % | |
Information Technology | 5.9 | % | |
Materials | 12.5 | % | |
Total Common Stocks | 99.7 | % | |
Short-Term Investments | 0.3 | % | |
Total Investments | 100.0 | % | |
Other Assets in Excess of Liabilities | 0.0 | % | |
Total Net Assets | 100.0 | % |
11
Number of | Value | ||||
COMMON STOCKS — 99.7% | |||||
COMMUNICATION SERVICES — 3.0% |
| ||||
Gray Television, Inc. | 3,000 | $ | 42,450 | ||
Liberty Global PLC, Class A* | 2,492 |
| 42,015 | ||
Nexstar Media Group, Inc., Class A | 306 |
| 52,418 | ||
TEGNA, Inc. | 1,532 |
| 31,988 | ||
| 168,871 | ||||
CONSUMER DISCRETIONARY — 5.5% |
| ||||
Century Communities, Inc. | 406 |
| 18,071 | ||
Group 1 Automotive, Inc. | 100 |
| 17,300 | ||
KB Home | 453 |
| 13,056 | ||
Lithia Motors, Inc., Class A | 142 |
| 28,137 | ||
MDC Holdings, Inc. | 1,609 |
| 49,010 | ||
Meritage Homes Corp.* | 480 |
| 36,557 | ||
Penske Automotive Group, Inc. | 341 |
| 38,062 | ||
Taylor Morrison Home Corp.* | 704 |
| 18,543 | ||
Toll Brothers, Inc. | 675 |
| 29,079 | ||
Tri Pointe Homes, Inc.* | 3,637 |
| 60,920 | ||
| 308,735 | ||||
CONSUMER STAPLES — 2.0% |
| ||||
Nomad Foods Ltd* | 878 |
| 13,521 | ||
Tyson Foods, Inc., Class A | 1,275 |
| 87,146 | ||
United Natural Foods, Inc.* | 304 |
| 12,893 | ||
| 113,560 | ||||
ENERGY — 7.7% |
| ||||
Civitas Resources, Inc. | 502 |
| 35,095 | ||
Coterra Energy, Inc. | 3,896 |
| 121,282 | ||
Energy Transfer LP | 13,376 |
| 170,812 | ||
Euronav NV | 1,248 |
| 22,252 | ||
Frontline Ltd. | 1,691 |
| 21,239 | ||
NuStar Energy LP | 691 |
| 11,125 | ||
Plains All American Pipeline LP | 3,263 |
| 39,058 | ||
World Fuel Services Corp. | 412 |
| 10,502 | ||
| 431,365 | ||||
FINANCIALS — 43.9% |
| ||||
American Equity Investment Life Holding Co. | 781 |
| 33,646 | ||
American International Group, Inc. | 3,272 |
| 186,504 | ||
Ameris Bancorp | 395 |
| 20,346 | ||
Associated Banc-Corp. | 1,002 |
| 24,399 | ||
Assured Guaranty Ltd. | 313 |
| 18,526 | ||
Atlantic Union Bankshares Corp. | 393 |
| 13,574 | ||
Axis Capital Holdings Ltd. | 399 |
| 21,813 | ||
Banner Corp. | 251 |
| 18,762 |
Number of | Value | ||||
COMMON STOCKS (Continued) | |||||
FINANCIALS (Continued) |
| ||||
Cadence Bank | 1,033 | $ | 28,562 | ||
Citizens Financial Group, Inc. | 2,313 |
| 94,602 | ||
CNA Financial Corp. | 1,720 |
| 71,724 | ||
Columbia Banking System, Inc. | 562 |
| 18,810 | ||
Enstar Group Ltd.* | 176 |
| 35,292 | ||
First Financial Bancorp | 656 |
| 17,102 | ||
First Interstate BancSystem, Inc., Class A | 507 |
| 23,124 | ||
Flagstar Bancorp, Inc. | 744 |
| 28,793 | ||
FNB Corp./PA | 2,884 |
| 41,674 | ||
FS KKR Capital Corp. | 1,845 |
| 35,424 | ||
Fulton Financial Corp. | 1,239 |
| 22,587 | ||
Genworth Financial, Inc., Class A* | 9,201 |
| 42,969 | ||
Hope Bancorp, Inc. | 731 |
| 9,920 | ||
Horace Mann Educators Corp. | 594 |
| 23,439 | ||
Invesco Ltd. | 2,699 |
| 41,349 | ||
Jefferies Financial Group, Inc. | 1,274 |
| 43,838 | ||
Lincoln National Corp. | 1,101 |
| 59,311 | ||
Loews Corp. | 1,117 |
| 63,691 | ||
M&T Bank Corp. | 757 |
| 127,456 | ||
MetLife, Inc. | 3,834 |
| 280,687 | ||
Nelnet, Inc., Class A | 390 |
| 34,745 | ||
New York Community Bancorp, Inc. | 5,138 |
| 47,835 | ||
Old National Bancorp | 1,427 |
| 27,912 | ||
Prospect Capital Corp. | 1,981 |
| 14,382 | ||
Prosperity Bancshares, Inc. | 573 |
| 41,010 | ||
Provident Financial Services, Inc. | 451 |
| 10,111 | ||
Prudential Financial, Inc. | 1,685 |
| 177,245 | ||
Radian Group, Inc. | 1,045 |
| 21,809 | ||
Reinsurance Group of America, Inc. | 398 |
| 58,574 | ||
Renasant Corp. | 386 |
| 15,583 | ||
Simmons First National Corp., Class A | 636 |
| 15,181 | ||
SouthState Corp. | 376 |
| 34,002 | ||
Towne Bank/Portsmouth VA | 446 |
| 14,691 | ||
Truist Financial Corp. | 5,490 |
| 245,897 | ||
Trustmark Corp. | 459 |
| 16,786 | ||
United Bankshares, Inc./WV | 929 |
| 39,343 | ||
Unum Group | 1,945 |
| 88,673 | ||
Valley National Bancorp | 3,401 |
| 40,370 | ||
WesBanco, Inc. | 382 |
| 15,448 | ||
White Mountains Insurance Group Ltd. | 28 |
| 39,652 | ||
| 2,447,173 |
12
QRAFT AI-Enhanced U.S. Next Value ETF SCHEDULE OF INVESTMENTS (Concluded) | October 31, 2022 (Unaudited) |
Number of Shares | Value | ||||
COMMON STOCKS (Continued) | |||||
HEALTH CARE — 20.3% |
| ||||
Bio-Rad Laboratories, Inc., Class A* | 144 | $ | 50,646 | ||
Centene Corp.* | 2,583 |
| 219,891 | ||
Cigna Corp. | 1,436 |
| 463,914 | ||
CVS Health Corp. | 4,178 |
| 395,657 | ||
| 1,130,108 | ||||
INDUSTRIALS — 6.8% |
| ||||
AerCap Holdings NV* | 1,220 |
| 65,160 | ||
Air Lease Corp. | 1,431 |
| 50,500 | ||
Boise Cascade Co. | 356 |
| 23,770 | ||
CACI International, Inc., Class A* | 227 |
| 69,015 | ||
GATX Corp. | 259 |
| 27,120 | ||
Hub Group, Inc., Class A* | 290 |
| 22,504 | ||
ICF International, Inc. | 175 |
| 20,935 | ||
Ryder System, Inc. | 248 |
| 19,967 | ||
Trinity Industries, Inc. | 683 |
| 19,486 | ||
UniFirst Corp./MA | 83 |
| 15,273 | ||
WESCO International, Inc.* | 347 |
| 47,806 | ||
| 381,536 | ||||
INFORMATION TECHNOLOGY — 5.4% |
| ||||
Arrow Electronics, Inc.* | 493 |
| 49,921 | ||
Avnet, Inc. | 645 |
| 25,923 | ||
Global Payments, Inc. | 1,227 |
| 140,197 | ||
Sanmina Corp.* | 323 |
| 18,104 | ||
TD SYNNEX Corp. | 723 |
| 66,162 | ||
| 300,307 | ||||
MATERIALS — 4.4% |
| ||||
Eldorado Gold Corp.* | 3,772 |
| 21,085 | ||
Greif, Inc., Class A | 732 |
| 48,466 | ||
Reliance Steel & Aluminum Co. | 364 |
| 73,339 | ||
Westlake Corp. | 605 |
| 58,473 | ||
Westrock Co. | 1,202 |
| 40,940 | ||
| 242,303 | ||||
REAL ESTATE — 0.7% |
| ||||
Sabra Health Care REIT, Inc., REIT | 1,286 |
| 17,567 | ||
SL Green Realty Corp., REIT | 510 |
| 20,237 | ||
| 37,804 | ||||
TOTAL COMMON STOCKS |
| 5,561,762 |
Number of Shares | Value | ||||
SHORT-TERM INVESTMENTS — 0.2% | |||||
Invesco Government & Agency Portfolio – Institutional Class, 3.07%(a) | 13,280 | $ | 13,280 | ||
TOTAL SHORT TERM INVESTMENTS |
| 13,280 | |||
TOTAL INVESTMENTS — 99.9% |
| 5,575,042 | |||
Other Assets in Excess of Liabilities — 0.1% |
| 1,236 | |||
TOTAL NET ASSETS — 100.0% | $ | 5,576,278 |
* Non-income producing security.
(a) The rate is the annualized seven-day yield at period end.
REIT : Real Estate Investment Trust
13
Security Type/Sector | Percent of | ||
Common Stocks |
| ||
Communication Services | 3.0 | % | |
Consumer Discretionary | 5.5 | % | |
Consumer Staples | 2.0 | % | |
Energy | 7.7 | % | |
Financials | 43.9 | % | |
Health Care | 20.3 | % | |
Industrials | 6.8 | % | |
Information Technology | 5.4 | % | |
Materials | 4.4 | % | |
Real Estate | 0.7 | % | |
Total Common Stocks | 99.7 | % | |
Short-Term Investments | 0.2 | % | |
Total Investments | 99.9 | % | |
Other Assets in Excess of Liabilities | 0.1 | % | |
Total Net Assets | 100.0 | % |
14
| QRAFT | QRAFT | QRAFT | QRAFT | ||||||||||||
Assets: |
|
|
|
|
|
|
|
| ||||||||
Investments, at value | $ | 4,470,522 |
| $ | 6,368,042 |
| $ | 11,542,849 |
| $ | 5,575,042 |
| ||||
Cash |
| 58 |
|
| 489 |
|
| — |
|
| — |
| ||||
Dividends receivable |
| 10,806 |
|
| 3,366 |
|
| 4,932 |
|
| 4,578 |
| ||||
Investment securities sold |
| 1,339 |
|
| 687 |
|
| — |
|
| — |
| ||||
Foreign tax reclaim |
| 673 |
|
| 38 |
|
| 2,871 |
|
| — |
| ||||
Total Assets |
| 4,483,398 |
|
| 6,372,622 |
|
| 11,550,652 |
|
| 5,579,620 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Liabilities: |
|
|
|
|
|
|
|
| ||||||||
Advisory fee payable |
| 2,730 |
|
| 4,050 |
|
| 7,410 |
|
| 3,342 |
| ||||
Total Liabilities |
| 2,730 |
|
| 4,050 |
|
| 7,410 |
|
| 3,342 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 4,480,668 |
| $ | 6,368,572 |
| $ | 11,543,242 |
| $ | 5,576,278 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Net Assets Consist of: |
|
|
|
|
|
|
|
| ||||||||
Paid-in capital | $ | 5,288,324 |
| $ | 10,721,512 |
| $ | 24,953,082 |
| $ | 6,416,410 |
| ||||
Distributable earnings (loss) |
| (807,656 | ) |
| (4,352,940 | ) |
| (13,409,840 | ) |
| (840,132 | ) | ||||
Net Assets | $ | 4,480,668 |
| $ | 6,368,572 |
| $ | 11,543,242 |
| $ | 5,576,278 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 4,480,668 |
| $ | 6,368,572 |
| $ | 11,543,242 |
| $ | 5,576,278 |
| ||||
Shares of Beneficial Interest Outstanding |
| 150,000 |
|
| 175,001 |
|
| 425,001 |
|
| 175,000 |
| ||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 29.87 |
| $ | 36.39 |
| $ | 27.16 |
| $ | 31.86 |
| ||||
Investments, at cost | $ | 4,346,607 |
| $ | 6,645,360 |
| $ | 10,814,036 |
| $ | 5,297,771 |
|
15
QRAFT | QRAFT | QRAFT | QRAFT | |||||||||||||
| For the | For the | For the | For the | ||||||||||||
Investment Income: |
|
|
|
|
|
|
|
| ||||||||
Dividends* | $ | 78,241 |
| $ | 79,432 |
| $ | 122,570 |
| $ | 53,636 |
| ||||
Total Investment Income |
| 78,241 |
|
| 79,432 |
|
| 122,570 |
|
| 53,636 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Expenses: |
|
|
|
|
|
|
|
| ||||||||
Advisory fees |
| 19,045 |
|
| 35,198 |
|
| 51,983 |
|
| 20,466 |
| ||||
Total Expenses |
| 19,045 |
|
| 35,198 |
|
| 51,983 |
|
| 20,466 |
| ||||
Net Investment Income (Loss) |
| 59,196 |
|
| 44,234 |
|
| 70,587 |
|
| 33,170 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss) |
|
|
|
|
|
|
|
| ||||||||
Net realized gain (loss) from: |
|
|
|
|
|
|
|
| ||||||||
Investments |
| (565,153 | ) |
| (1,716,334 | ) |
| (3,174,558 | ) |
| (501,146 | ) | ||||
In-kind redemptions |
| 221,423 |
|
| 125,856 |
|
| 678,793 |
|
| 88,171 |
| ||||
Foreign currency transactions |
| — |
|
| 2 |
|
| — |
|
| — |
| ||||
Net realized gain (loss) |
| (343,730 | ) |
| (1,590,476 | ) |
| (2,495,765 | ) |
| (412,975 | ) | ||||
Net change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
|
|
| ||||||||
Investments |
| 169,688 |
|
| 819,327 |
|
| 1,876,879 |
|
| 471,843 |
| ||||
Net change in unrealized appreciation (depreciation) |
| 169,688 |
|
| 819,327 |
|
| 1,876,879 |
|
| 471,843 |
| ||||
Net realized and unrealized gain (loss) |
| (174,042 | ) |
| (771,149 | ) |
| (618,886 | ) |
| 58,868 |
| ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (114,846 | ) | $ | (726,915 | ) | $ | (548,299 | ) | $ | 92,038 |
| ||||
* Net of foreign withholding taxes | $ | 135 |
| $ | 1,297 |
| $ | 5,263 |
| $ | 16 |
|
16
QRAFT AI-Enhanced | QRAFT AI-Enhanced | |||||||||||||||
| For the | Year Ended | For the | Year Ended | ||||||||||||
From Investment Activities: |
|
|
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
| ||||||||
Net investment income (loss) | $ | 59,196 |
| $ | 121,633 |
| $ | 44,234 |
| $ | 28,079 |
| ||||
Net realized gain (loss) |
| (343,730 | ) |
| 442,863 |
|
| (1,590,476 | ) |
| 1,335,248 |
| ||||
Change in net unrealized appreciation (depreciation) |
| 169,688 |
|
| (288,760 | ) |
| 819,327 |
|
| (1,771,962 | ) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
| (114,846 | ) |
| 275,736 |
|
| (726,915 | ) |
| (408,635 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders |
| (66,657 | ) |
| (119,751 | ) |
| (40,108 | ) |
| (12,969 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Capital Transactions: |
|
|
|
|
|
|
|
| ||||||||
Proceeds from shares issued |
| 2,150,279 |
|
| 10,245,459 |
|
| 3,743,500 |
|
| 33,253,331 |
| ||||
Cost of shares redeemed |
| (2,914,871 | ) |
| (10,277,772 | ) |
| (8,229,083 | ) |
| (41,521,513 | ) | ||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions |
| (764,592 | ) |
| (32,313 | ) |
| (4,485,583 | ) |
| (8,268,182 | ) | ||||
Total Increase (Decrease) in Net Assets |
| (946,095 | ) |
| 123,672 |
|
| (5,252,606 | ) |
| (8,689,786 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: |
|
|
|
|
|
|
|
| ||||||||
Beginning of period |
| 5,426,763 |
|
| 5,303,091 |
|
| 11,621,178 |
|
| 20,310,964 |
| ||||
End of period | $ | 4,480,668 |
| $ | 5,426,763 |
| $ | 6,368,572 |
| $ | 11,621,178 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Change in Shares Outstanding: |
|
|
|
|
|
|
|
| ||||||||
Shares outstanding, beginning of period |
| 175,000 |
|
| 175,000 |
|
| 300,001 |
|
| 500,001 |
| ||||
Shares issued |
| 75,000 |
|
| 325,000 |
|
| 100,000 |
|
| 775,000 |
| ||||
Shares redeemed |
| (100,000 | ) |
| (325,000 | ) |
| (225,000 | ) |
| (975,000 | ) | ||||
Shares outstanding, end of period |
| 150,000 |
|
| 175,000 |
|
| 175,001 |
|
| 300,001 |
|
17
EXCHANGE LISTED FUNDS TRUST STATEMENTS OF CHANGES IN NET ASSETS (Concluded) |
|
QRAFT AI-Enhanced | QRAFT AI-Enhanced | |||||||||||||||
| For the | Year Ended | For the | Year Ended | ||||||||||||
From Investment Activities: |
|
|
|
|
|
|
|
| ||||||||
Operations: |
|
|
|
|
|
|
|
| ||||||||
Net investment income (loss) | $ | 70,587 |
| $ | 7,984 |
| $ | 33,170 |
| $ | 98,152 |
| ||||
Net realized gain (loss) |
| (2,495,765 | ) |
| (2,585,937 | ) |
| (412,975 | ) |
| 584,404 |
| ||||
Change in net unrealized appreciation (depreciation) |
| 1,876,879 |
|
| (1,710,381 | ) |
| 471,843 |
|
| (497,144 | ) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
| (548,299 | ) |
| (4,288,334 | ) |
| 92,038 |
|
| 185,412 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders |
| (64,887 | ) |
| (206,693 | ) |
| (36,008 | ) |
| (105,822 | ) | ||||
|
|
|
|
|
|
|
| |||||||||
Capital Transactions: |
|
|
|
|
|
|
|
| ||||||||
Proceeds from shares issued |
| 8,566,622 |
|
| 106,001,332 |
|
| 769,798 |
|
| 17,074,429 |
| ||||
Cost of shares redeemed |
| (12,350,152 | ) |
| (107,558,504 | ) |
| (768,296 | ) |
| (16,375,345 | ) | ||||
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions |
| (3,783,530 | ) |
| (1,557,172 | ) |
| 1,502 |
|
| 699,084 |
| ||||
Total Increase (Decrease) in Net Assets |
| (4,396,716 | ) |
| (6,052,199 | ) |
| 57,532 |
|
| 778,674 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: |
|
|
|
|
|
|
|
| ||||||||
Beginning of period |
| 15,939,958 |
|
| 21,992,157 |
|
| 5,518,746 |
|
| 4,740,072 |
| ||||
End of period | $ | 11,543,242 |
| $ | 15,939,958 |
| $ | 5,576,278 |
| $ | 5,518,746 |
| ||||
|
|
|
|
|
|
|
| |||||||||
Change in Shares Outstanding: |
|
|
|
|
|
|
|
| ||||||||
Shares outstanding, beginning of period |
| 575,001 |
|
| 625,001 |
|
| 175,000 |
|
| 150,000 |
| ||||
Shares issued |
| 325,000 |
|
| 2,925,000 |
|
| 25,000 |
|
| 525,000 |
| ||||
Shares redeemed |
| (475,000 | ) |
| (2,975,000 | ) |
| (25,000 | ) |
| (500,000 | ) | ||||
Shares outstanding, end of period |
| 425,001 |
|
| 575,001 |
|
| 175,000 |
|
| 175,000 |
|
18
QRAFT AI-Enhanced U.S. High Dividend ETF | For the |
| For the | |||||||||||||
2022 | 2021 | |||||||||||||||
Net Asset Value, beginning of period | $ | 31.01 |
| $ | 30.30 |
| $ | 22.18 |
| $ | 24.79 |
| ||||
Investment Activities |
|
|
|
|
|
|
|
| ||||||||
Net investment income (loss)(2) |
| 0.35 |
|
| 0.63 |
|
| 0.53 |
|
| 0.09 |
| ||||
Net realized and unrealized gain (loss) |
| (1.09 | ) |
| 0.72 |
|
| 8.11 |
|
| (2.70 | ) | ||||
Total from investment activities |
| (0.74 | ) |
| 1.35 |
|
| 8.64 |
|
| (2.61 | ) | ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
| ||||||||
Net investment income |
| (0.40 | ) |
| (0.64 | ) |
| (0.52 | ) |
| — |
| ||||
Total distributions |
| (0.40 | ) |
| (0.64 | ) |
| (0.52 | ) |
| — |
| ||||
Net Asset Value, end of period | $ | 29.87 |
| $ | 31.01 |
| $ | 30.30 |
| $ | 22.18 |
| ||||
Total Return (%) |
| (2.34 | )(3) |
| 4.45 |
|
| 39.50 |
|
| (10.53 | )(3) | ||||
Total Return at Market Price (%) |
| (2.41 | )(3) |
| 4.36 |
|
| 39.21 |
|
| (10.29 | )(3) | ||||
Ratios to Average Net Assets |
|
|
|
|
|
|
|
| ||||||||
Expenses (%) |
| 0.75 | (4) |
| 0.75 |
|
| 0.75 |
|
| 0.75 | (4) | ||||
Net investment income (loss) (%) |
| 2.33 | (4) |
| 2.01 |
|
| 2.05 |
|
| 2.46 | (4) | ||||
Supplemental Data |
|
|
|
|
|
|
|
| ||||||||
Net Assets at end of period (000’s) | $ | 4,481 |
| $ | 5,427 |
| $ | 5,303 |
| $ | 2,773 |
| ||||
Portfolio turnover (%)(5) |
| 85 | (3) |
| 208 |
|
| 198 |
|
| 45 | (3) |
QRAFT AI-Enhanced U.S. Large Cap ETF | For the |
| For the | |||||||||||||
2022 | 2021 | |||||||||||||||
Net Asset Value, beginning of period | $ | 38.74 |
| $ | 40.62 |
| $ | 26.83 |
| $ | 24.73 |
| ||||
Investment Activities |
|
|
|
|
|
|
|
| ||||||||
Net investment income (loss)(2) |
| 0.18 |
|
| 0.06 |
|
| (0.02 | ) |
| 0.14 |
| ||||
Net realized and unrealized gain (loss) |
| (2.36 | ) |
| (1.91 | ) |
| 14.50 |
|
| 3.07 |
| ||||
Total from investment activities |
| (2.18 | ) |
| (1.85 | ) |
| 14.48 |
|
| 3.21 |
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
| ||||||||
Net investment income |
| (0.17 | ) |
| (0.03 | ) |
| (0.02 | ) |
| (0.12 | ) | ||||
Net realized gain |
| — |
|
| — |
|
| (0.67 | ) |
| (0.99 | ) | ||||
Total distributions |
| (0.17 | ) |
| (0.03 | ) |
| (0.69 | ) |
| (1.11 | ) | ||||
Net Asset Value, end of period | $ | 36.39 |
| $ | 38.74 |
| $ | 40.62 |
| $ | 26.83 |
| ||||
Total Return (%) |
| (5.60 | )(3) |
| (4.57 | ) |
| 54.12 |
|
| 12.84 | (3) | ||||
Total Return at Market Price (%) |
| (5.47 | )(3) |
| (4.63 | ) |
| 53.83 |
|
| 12.96 | (3) | ||||
Ratios to Average Net Assets |
|
|
|
|
|
|
|
| ||||||||
Expenses (%) |
| 0.75 | (4) |
| 0.75 |
|
| 0.75 |
|
| 0.75 | (4) | ||||
Net investment income (loss) (%) |
| 0.94 | (4) |
| 0.15 |
|
| (0.06 | ) |
| 0.56 | (4) | ||||
Supplemental Data |
|
|
|
|
|
|
|
| ||||||||
Net Assets at end of period (000’s) | $ | 6,369 |
| $ | 11,621 |
| $ | 20,311 |
| $ | 3,354 |
| ||||
Portfolio turnover (%)(5) |
| 190 | (3) |
| 180 |
|
| 263 |
|
| 219 | (3) |
(1) Commencement of operations.
(2) Per share numbers have been calculated using the average shares method.
(3) Not annualized for periods less than one year.
(4) Annualized for periods less than one year.
(5) Excludes the impact of in-kind transactions related to the processing of capital share transactions in Creation Units.
19
EXCHANGE LISTED FUNDS TRUST FINANCIAL HIGHLIGHTS (Concluded) |
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF | For the |
| For the | |||||||||||||
2022 | 2021 | |||||||||||||||
Net Asset Value, beginning of period | $ | 27.72 |
| $ | 35.19 |
| $ | 25.75 |
| $ | 24.70 |
| ||||
Investment Activities |
|
|
|
|
|
|
|
| ||||||||
Net investment income (loss)(2) |
| 0.13 |
|
| 0.01 |
|
| (0.04 | ) |
| 0.07 |
| ||||
Net realized and unrealized gain (loss) |
| (0.57 | ) |
| (7.21 | ) |
| 17.27 |
|
| 2.41 |
| ||||
Total from investment activities |
| (0.44 | ) |
| (7.20 | ) |
| 17.23 |
|
| 2.48 |
| ||||
Distributions to shareholders from: |
|
|
|
|
|
|
|
| ||||||||
Net investment income |
| (0.12 | ) |
| (0.01 | ) |
| (0.02 | ) |
| (0.04 | ) | ||||
Net realized gain |
| — |
|
| (0.26 | ) |
| (7.77 | ) |
| (1.39 | ) | ||||
Total distributions |
| (0.12 | ) |
| (0.27 | ) |
| (7.79 | ) |
| (1.43 | ) | ||||
Net Asset Value, end of period | $ | 27.16 |
| $ | 27.72 |
| $ | 35.19 |
| $ | 25.75 |
| ||||
Total Return (%) |
| (1.53 | )(3) |
| (20.63 | ) |
| 69.95 |
|
| 9.99 | (3) | ||||
Total Return at Market Price (%) |
| (1.46 | )(3) |
| (20.67 | ) |
| 69.50 |
|
| 10.16 | (3) | ||||
Ratios to Average Net Assets |
|
|
|
|
|
|
|
| ||||||||
Expenses (%) |
| 0.75 | (4) |
| 0.75 |
|
| 0.75 |
|
| 0.75 | (4) | ||||
Net investment income (loss) (%) |
| 1.02 | (4) |
| 0.03 |
|
| (0.13 | ) |
| 0.28 | (4) | ||||
Supplemental Data |
|
|
|
|
|
|
|
| ||||||||
Net Assets at end of period (000’s) | $ | 11,543 |
| $ | 15,940 |
| $ | 21,992 |
| $ | 2,575 |
| ||||
Portfolio turnover (%)(5) |
| 242 | (3) |
| 790 |
|
| 346 |
|
| 275 | (3) |
QRAFT AI-Enhanced U.S. Next Value ETF | For the | Year Ended | For the | |||||||||
Net Asset Value, beginning of period | $ | 31.54 |
| $ | 31.60 |
| $ | 25.14 |
| |||
Investment Activities |
|
|
|
|
|
| ||||||
Net investment income (loss)(2) |
| 0.19 |
|
| 0.52 |
|
| 0.10 |
| |||
Net realized and unrealized gain (loss) |
| 0.34 |
|
| 0.01 |
|
| 6.46 |
| |||
Total from investment activities |
| 0.53 |
|
| 0.53 |
|
| 6.56 |
| |||
Distributions to shareholders from: |
|
|
|
|
|
| ||||||
Net investment income |
| (0.21 | ) |
| (0.44 | ) |
| (0.10 | ) | |||
Net realized gain |
| — |
|
| (0.15 | ) |
| — |
| |||
Total distributions |
| (0.21 | ) |
| (0.59 | ) |
| (0.10 | ) | |||
Net Asset Value, end of period | $ | 31.86 |
| $ | 31.54 |
| $ | 31.60 |
| |||
Total Return (%) |
| 1.75 | (3) |
| 1.62 |
|
| 26.10 | (3) | |||
Total Return at Market Price (%) |
| 2.04 | (3) |
| 1.32 |
|
| 26.89 | (3) | |||
Ratios to Average Net Assets |
|
|
|
|
|
| ||||||
Expenses (%) |
| 0.75 | (4) |
| 0.75 |
|
| 0.75 | (4) | |||
Net investment income (loss) (%) |
| 1.22 | (4) |
| 1.63 |
|
| 0.83 | (4) | |||
Supplemental Data |
|
|
|
|
|
| ||||||
Net Assets at end of period (000’s) | $ | 5,576 |
| $ | 5,519 |
| $ | 4,740 |
| |||
Portfolio turnover (%)(5) |
| 119 | (3) |
| 379 |
|
| 173 | (3) |
(1) Commencement of operations.
(2) Per share numbers have been calculated using the average shares method.
(3) Not annualized for periods less than one year.
(4) Annualized for periods less than one year.
(5) Excludes the impact of in-kind transactions related to the processing of capital share transactions in Creation Units.
20
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 Securities and Exchange Commission (“SEC”) under 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 assets of each series in the Trust are segregated and a shareholder’s interest is limited to the series in which Shares are held. The financial statements presented herein relate to the funds listed below and are individually referred to as a “Fund” or collectively as the “Funds”:
QRAFT AI-Enhanced U.S. High Dividend ETF
QRAFT AI-Enhanced U.S. Large Cap ETF
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF
QRAFT AI-Enhanced U.S. Next Value ETF
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 use an active investment strategy in seeking to meet their investment objectives. 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 QRAFT 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. Each of the QRAFT AI-Enhanced U.S. Large Cap ETF and the QRAFT 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 (as such term is defined in each Fund’s prospectus). The QRAFT AI-Enhanced U.S. Next Value 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 companies.
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 records investments at fair value 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
21
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2022 (Unaudited) |
by an exchange, 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 Adviser’s fair value committee (the “Committee”), in accordance with the Trust’s Board-approved valuation procedures, to determine a security’s fair value. In determining such value, the 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, 2022 for each Fund based upon the three levels defined above:
QRAFT AI-Enhanced U.S. High Dividend ETF | Level 1 | Level 2 | Level 3 | Total | ||||||||
Investments |
|
|
|
| ||||||||
Common Stocks(a) | $ | 4,448,004 | $ | — | $ | — | $ | 4,448,004 | ||||
Short-Term Investments |
| 22,518 |
| — |
| — |
| 22,518 | ||||
Total | $ | 4,470,522 | $ | — | $ | — | $ | 4,470,522 |
QRAFT AI-Enhanced U.S. Large Cap ETF | Level 1 | Level 2 | Level 3 | Total | ||||||||
Investments |
|
|
|
| ||||||||
Common Stocks(a) | $ | 6,348,184 | $ | — | $ | — | $ | 6,348,184 | ||||
Short-Term Investments |
| 19,858 |
| — |
| — |
| 19,858 | ||||
Total | $ | 6,368,042 | $ | — | $ | — | $ | 6,368,042 |
22
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2022 (Unaudited) |
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF | Level 1 | Level 2 | Level 3 | Total | ||||||||
Investments |
|
|
|
| ||||||||
Common Stocks(a) | $ | 11,506,808 | $ | — | $ | — | $ | 11,506,808 | ||||
Short-Term Investments |
| 36,041 |
| — |
| — |
| 36,041 | ||||
Total | $ | 11,542,849 | $ | — | $ | — | $ | 11,542,849 |
QRAFT AI-Enhanced U.S. Next Value ETF | Level 1 | Level 2 | Level 3 | Total | ||||||||
Investments |
|
|
|
| ||||||||
Common Stocks(a) | $ | 5,561,762 | $ | — | $ | — | $ | 5,561,762 | ||||
Short-Term Investments |
| 13,280 |
| — |
| — |
| 13,280 | ||||
Total | $ | 5,575,042 | $ | — | $ | — | $ | 5,575,042 |
(a) See Schedule of Investments for additional detailed categorizations.
(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 using the effective yield method. 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 and Interest 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 each Fund are maintained in U.S. dollars. Financial instruments and other assets and liabilities of each Fund 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. Each Fund 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”) 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
23
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2022 (Unaudited) |
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. In general, tax positions taken in previous tax years remain subject to examination by tax authorities (generally three years for federal income tax purposes). 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 the Fund’s financial statements. Each Fund’s policy 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, 2022, no Fund had any interest or penalties associated with the underpayment of any income taxes.
(e) Distributions to Shareholders
Each Fund pays out dividends from its net investment income at least quarterly and distributes its net capital gains, if any, to investors 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 each Fund pursuant to an investment advisory agreement with the Trust (the “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 Funds, including, among other things, providing an investment program for each Fund, trading portfolio securities on behalf of each Fund, and selecting broker-dealers to execute purchase and sale transactions, subject to the oversight 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, each Fund pays the Adviser a fee calculated daily and paid monthly at an annual rate of 0.75% of the Fund’s average daily net assets.
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 (“Excluded Expenses”).
QRAFT Technologies, Inc. (“Qraft”) is the Funds’ sponsor. In connection with an arrangement between the Adviser and Qraft, Qraft has agreed to assume the Adviser’s obligation to pay all expenses of the Funds (except Excluded Expenses) and, to the extent applicable, pay the Adviser a minimum fee. Qraft will also provide marketing support for the Funds including, but not limited to, distributing each Fund’s materials and providing the Funds with access to and the use of Qraft’s other marketing capabilities, including communications through print and electronic media. For its services, Qraft is entitled to a fee from the Adviser, which is calculated daily and paid monthly, based on a percentage of the average daily net assets of each Fund. Qraft does not make investment decisions, provide investment advice, or otherwise act in the capacity of an investment adviser to the Funds.
24
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2022 (Unaudited) |
An Interested Trustee and certain officers of the Trust are affiliated with the Adviser and receive no compensation from the Trust for serving as officers and/or Trustee.
(b) Distribution Arrangement
Foreside Fund Services, LLC (the “Distributor”), a Delaware limited liability company, 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.
(c) Other Servicing Agreements
The Bank of New York Mellon (“BNY Mellon”) serves as each Fund’s fund accountant, transfer agent, custodian and administrator.
Note 4 – Investment Transactions
Purchases and sales of investments, excluding in-kind transactions and short-term investments, for the period ended October 31, 2022 were as follows:
Fund | Purchases | Sales | ||||
QRAFT AI-Enhanced U.S. High Dividend ETF | $ | 4,226,463 | $ | 458,256 | ||
QRAFT AI-Enhanced U.S. Large Cap ETF |
| 17,278,318 |
| 18,169,708 | ||
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF |
| 32,986,004 |
| 33,757,396 | ||
QRAFT AI-Enhanced U.S. Next Value ETF |
| 6,419,747 |
| 6,790,262 |
Purchases and sales of in-kind transactions for the period ended October 31, 2022 were as follows:
Fund | Purchases | Sales | ||||
QRAFT AI-Enhanced U.S. High Dividend ETF | $ | 2,131,015 | $ | 2,582,869 | ||
QRAFT AI-Enhanced U.S. Large Cap ETF |
| 3,743,170 |
| 7,320,589 | ||
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF |
| 8,544,912 |
| 11,561,705 | ||
QRAFT AI-Enhanced U.S. Next Value ETF |
| 761,241 |
| 370,557 |
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 (“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
25
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2022 (Unaudited) |
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.
A 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 QRAFT AI-Enhanced U.S. High Dividend ETF, QRAFT AI-Enhanced U.S. Large Cap ETF, QRAFT AI-Enhanced U.S. Large Cap Momentum ETF and QRAFT AI-Enhanced U.S. Next Value ETF are $500, $1,750, $250 and $500, respectively, regardless of the number of Creation Units created in the transaction.
A 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 QRAFT AI-Enhanced U.S. High Dividend ETF, QRAFT AI-Enhanced U.S. Large Cap ETF, QRAFT AI-Enhanced U.S. Large Cap Momentum ETF and QRAFT AI-Enhanced U.S. Next Value ETF are $500, $1,750, $250 and $500, respectively, regardless of the number of Creation Units created in the transaction.
26
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Continued) | October 31, 2022 (Unaudited) |
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. Unless otherwise noted, 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. Additional principal risks are disclosed in the Funds’ prospectus. Please refer to the relevant Fund’s prospectus for a complete description of the principal risks of investing in that Fund.
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.
Non-Diversification Risk (QRAFT AI-Enhanced U.S. High Dividend ETF, QRAFT AI-Enhanced U.S. Large Cap Momentum ETF, and QRAFT AI-Enhanced U.S. Next Value ETF only). As non-diversified investment companies under the 1940 Act, each Fund may hold a smaller number of portfolio securities than many other funds and may be more sensitive to any single economic, business, political or regulatory occurrence than a diversified fund. To the extent a Fund invests in a relatively small number of issuers, a decline in the market value of a particular security held by that Fund may affect its value more than if it invested in a larger number of issuers. The value of a Fund’s shares may be more volatile than the values of shares of more diversified funds.
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. Each Fund identifies its sector weightings in its Summary of Investments and the sector exposure is expected to vary over time.
Note 7 – Federal Income Taxes
As of the tax year ended April 30, 2022, the components of Distributable earnings (loss) on a tax basis were as follows:
Fund | Undistributed | Undistributed | Unrealized | Distributable | |||||||||||
QRAFT AI-Enhanced U.S. High Dividend ETF | $ | 17,292 | $ | (567,911 | ) | $ | (75,534 | ) | $ | (626,153 | ) | ||||
QRAFT AI-Enhanced U.S. Large Cap ETF |
| 977 |
| (2,001,594 | ) |
| (1,585,300 | ) |
| (3,585,917 | ) | ||||
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF |
| — |
| (11,567,510 | ) |
| (1,229,144 | ) |
| (12,796,654 | ) | ||||
QRAFT AI-Enhanced U.S. Next Value ETF |
| 4,993 |
| (594,947 | ) |
| (306,208 | ) |
| (896,162 | ) |
27
EXCHANGE LISTED FUNDS TRUST NOTES TO FINANCIAL STATEMENTS (Concluded) | October 31, 2022 (Unaudited) |
At October 31, 2022, 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 Unrealized | ||||||||||
QRAFT AI-Enhanced U.S. High Dividend ETF | $ | 4,346,607 | $ | 219,819 | $ | (95,904 | ) | $ | 123,915 |
| ||||
QRAFT AI-Enhanced U.S. Large Cap ETF |
| 6,645,360 |
| 276,113 |
| (553,431 | ) |
| (277,318 | ) | ||||
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF |
| 10,814,036 |
| 890,758 |
| (161,945 | ) |
| 728,813 |
| ||||
QRAFT AI-Enhanced U.S. Next Value ETF |
| 5,297,771 |
| 472,212 |
| (194,941 | ) |
| 277,271 |
|
As of the tax year ended April 30, 2022, each Fund has non-expiring accumulated capital loss carryforwards as follows:
Fund | Short-Term | Long-Term | Total Amount | ||||||
QRAFT AI-Enhanced U.S. High Dividend ETF | $ | 565,029 | $ | 2,882 | $ | 567,911 | |||
QRAFT AI-Enhanced U.S. Large Cap ETF |
| 1,940,464 |
| 61,130 |
| 2,001,594 | |||
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF |
| 11,565,039 |
| 1,603 |
| 11,566,642 | |||
QRAFT AI-Enhanced U.S. Next Value ETF |
| 591,494 |
| 3,453 |
| 594,947 |
To the extent that a 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.
As of April 30, 2022, QRAFT AI-Enhanced U.S. Large Cap Momentum ETF had $868 of qualified late-year ordinary losses, which are deferred until May 1, 2022 for tax purposes. Net late-year losses incurred after December 31, 2021, and within the taxable year are deemed to arise on the first day of the Fund’s next taxable year.
The tax character of current year distributions will be determined at the end of the current fiscal year.
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 each Fund’s investments. The ultimate impact of the pandemic on the financial performance of each Fund’s investments is not reasonably able to be estimated at this time.
On February 24, 2022, Russia engaged in military actions in the sovereign territory of Ukraine. The current political and financial uncertainty surrounding Russia and Ukraine may increase market volatility and the economic risk of investing in securities in these countries and may also cause uncertainty for the global economy and broader financial markets. The ultimate fallout and long-term impact from these events are not known.
Note 9 – Events Subsequent to the Fiscal Year 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. On December 19, 2022, the Board approved the liquidation of the QRAFT AI-Enhanced U.S. High Dividend ETF. The Fund is expected to liquidate on or about January 23, 2023.
Management has determined there are no other material events.
28
All ETFs have operating expenses. As a shareholder of a 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 Funds’ 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 a 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 the Fund may incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.
You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that 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 your Fund under “Expenses Paid During Period.”
Hypothetical 5% Return
This section helps you compare your Fund’s costs with those of other funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that 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 your Fund’s comparative cost by comparing the hypothetical result for your 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 your Fund’s actual return – the account values shown may not apply to your specific investment.
| Beginning | Ending | Annualized | Expenses Paid | |||||||
QRAFT AI-Enhanced U.S. High Dividend ETF |
|
|
| ||||||||
Actual Performance | $ | 1,000.00 | $ | 976.60 | 0.75% | $ | 3.74 | ||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.42 | 0.75% | $ | 3.82 | ||||
QRAFT AI-Enhanced U.S. Large Cap ETF |
|
|
| ||||||||
Actual Performance | $ | 1,000.00 | $ | 944.00 | 0.75% | $ | 3.67 | ||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.42 | 0.75% | $ | 3.82 | ||||
QRAFT AI-Enhanced U.S. Large Cap Momentum ETF |
|
|
| ||||||||
Actual Performance | $ | 1,000.00 | $ | 984.70 | 0.75% | $ | 3.75 | ||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.42 | 0.75% | $ | 3.82 | ||||
QRAFT AI-Enhanced U.S. Next Value ETF |
|
|
| ||||||||
Actual Performance | $ | 1,000.00 | $ | 1,017.50 | 0.75% | $ | 3.81 | ||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,024.42 | 0.75% | $ | 3.82 |
(1) 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 (the number of days in the most recent six-month period), then divided by 365.
29
Pursuant to Rule 22e-4 under the Investment Company Act of 1940, the Trust, on behalf of the series of the Trust covered by this shareholder report (the “Funds”), 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 Exchange Traded Concepts, LLC, the Trust’s investment adviser (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 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 February 2022 meeting of the Board of Trustees of the Trust, the Trustees received a report pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the period ended December 31, 2021. The report concluded that the Program is 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.
30
BOARD CONSIDERATION OF APPROVAL OF INVESTMENT | October 31, 2022 (Unaudited) |
At a meeting held on September 21, 2022 (the “Meeting”), the Board of Trustees (the “Board”) of Exchange Listed Funds Trust (the “Trust”) considered and approved the continuance of the investment advisory agreement between the Trust, on behalf of the QRAFT AI-Enhanced U.S Large Cap ETF and QRAFT AI-Enhanced U.S Large Cap Momentum ETF, QRAFT AI-Enhanced U.S. High Dividend ETF, and QRAFT AI-Enhanced U.S. Next Value ETF (collectively, the “Funds”), and Exchange Traded Concepts, LLC (“ETC”) pursuant to which ETC provides advisory services to the Funds (the “Agreement”).
Pursuant to Section 15 of the Investment Company Act of 1940 (the “1940 Act”), the Agreement must be approved by a vote of (i) the Trustees or the shareholders of the Fund and (ii) a majority of the Trustees who are not parties to the Agreement or “interested persons” of any party thereto, as defined in the 1940 Act (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval. In connection with its consideration of such approvals, the Board must request and evaluate, and ETC is required to furnish, such information as may be reasonably necessary to evaluate the terms of the Agreement. In addition, rules under the 1940 Act require each Fund to disclose in its shareholder reports the material factors and the conclusions with respect thereto that formed the basis for the Board’s approval of the Agreement.
Consistent with these responsibilities, prior to the Meeting, the Board reviewed written materials from ETC and, at the Meeting, representatives from ETC presented additional oral and written information to help the Board evaluate the Agreement. Among other things, representatives from ETC provided an overview of its advisory business, including investment personnel and investment processes. Prior to the Meeting, the Trustees met to review and discuss certain information provided. During the Meeting, the Board discussed the materials it received, including a memorandum from legal counsel to the Independent Trustees on the responsibilities of Trustees in considering the approval of investment advisory agreements under the 1940 Act, considered ETC’s oral presentation, and deliberated on the approval of the Agreement in light of this information. Throughout the process, the Trustees were afforded the opportunity to ask questions of and request additional materials from ETC. The Independent Trustees were assisted in their review by independent legal counsel and met with counsel separately and without management present.
In considering whether to approve the continuance of the Agreement, the Board took into consideration (i) the nature, extent, and quality of the services provided by ETC to each Fund; (ii) each Fund’s performance; (iii) ETC’s costs of and profits realized from providing advisory services to each Fund, including any fall-out benefits enjoyed by ETC or its affiliates; (iv) comparative fee and expense data; (v) the extent to which the advisory fee for each Fund reflects economies of scale shared with Fund shareholders; and (vi) other factors the Board deemed to be relevant.
Nature, Extent, and Quality of Services. With respect to the nature, extent, and quality of the services provided to each Fund, the Board considered ETC’s specific responsibilities in all aspects of day-to-day management of the Funds. The Board noted that such responsibilities include developing, implementing, and maintaining each Fund’s investment program; trading portfolio securities and other investment instruments on behalf of each Fund; selecting broker-dealers to execute purchase and sale transactions; determining the daily baskets of deposit securities and cash components; executing portfolio securities trades for purchases and redemptions of Fund shares conducted on a cash-in-lieu basis; overseeing general portfolio compliance with relevant law; monitoring compliance with various policies and procedures and applicable securities regulations; quarterly reporting to the Board; and implementing Board directives as they relate to each Fund. The Board noted that it had been provided with ETC’s registration form on Form ADV as well as ETC’s responses to a detailed series of questions, which included a description of ETC’s operations, services, personnel, compliance program, risk management program, and financial condition, and whether there had been material changes to such information since it was last presented to the Board. The Board considered the qualifications, experience, and responsibilities of ETC’s investment personnel, the quality of ETC’s compliance infrastructure, and the determination of the Trust’s Chief Compliance Officer that ETC has appropriate compliance policies and procedures in place. The Board considered ETC’s experience working with ETFs including the Funds, other series of the Trust, and other ETFs outside of the Trust.
The Board also considered other services provided to the Funds by ETC, such as arranging for transfer agency, custody, fund administration and accounting, and other non-distribution related services necessary for the Funds to operate; administering the Funds’ business affairs; providing office facilities and equipment and certain clerical, bookkeeping and administrative services; liaising with and reporting to the Board on matters relating to Fund operations, portfolio management and other matters essential to the Funds’ business activities; supervising each Fund’s registration as an investment company and the offering of
31
EXCHANGE LISTED FUNDS TRUST BOARD CONSIDERATION OF APPROVAL OF INVESTMENT | October 31, 2022 (Unaudited) |
Fund shares to the public, including oversight and preparation of regulatory filings; working with ETF market participants, including authorized participants, market makers, and exchanges, to help facilitate an orderly trading environment for each Fund’s shares; and providing its officers and employees to serve as officers or Trustees of the Trust.
Based on the factors discussed above, as well as those discussed below, the Board concluded that it was satisfied with the nature, extent, and quality of the services provided to each Fund by ETC.
Performance. The Board reviewed each Fund’s performance in light of its stated investment objective, noting that each Fund is actively managed. The Board was provided with reports regarding the past performance of each Fund, including a report prepared by ISS, an independent third party, and compared each Fund’s performance to the performance of a group of peer funds for various time periods. The Board noted that, for all periods ended June 30, 2022, QRFT’s performance was above its peer group average, HDIV’s performance was above its peer group median, NVQ’s performance was above its peer group median and average, and AMOM’s performance was lower than its peer group median and average for the one-year and year-to-date periods ended June 30, 2022 but higher than its peer group median and average for the three-year period ended June 30, 2022. In reviewing each Fund’s performance, the Board took into account that each Fund has had a relatively short operating history over which to consider performance. The Board further noted that it received regular reports regarding each Fund’s performance at its quarterly meetings.
Cost of Advisory Services and Profitability. The Board reviewed the advisory fee paid by each Fund to ETC under the Agreement. The Board reviewed a report prepared by ISS, an independent third party, comparing each Fund’s advisory fee to those paid by a group of peer funds. The Board noted that the report included one or more mutual funds in each Fund’s peer groups, which were intended to enhance the Board’s ability to evaluate the quality of fees and expenses on a broader scale. The Board took into account the differences in operations and fee structures between ETFs and mutual funds and gave such weight to the mutual fund data as it deemed appropriate. The Board noted that ISS selected the particular mutual funds that were included in its report. The Board noted that each Fund’s advisory fee was higher than the median of its peer group range and that HDIV was the highest of its ETF peers and each of QRFT, NVQ, and AMOM was second highest of its ETF peers. The Board took into account that due to the specialized nature of each Fund’s strategy, there are limitations in comparing the Fund’s advisory fee to those of other funds and the information provided by the peer group report may not provide meaningful direct comparisons to the Funds. The Board took into consideration that the advisory fee for each Fund is a “unitary fee,” meaning that each Fund pays no expenses other than the advisory fee and certain expenses customarily excluded from unitary fee arrangements, such as brokerage commissions, taxes, and interest. The Board noted that, under the Agreement, ETC is responsible for compensating each Fund’s other service providers and paying each Fund’s other expenses out of its own fee and resources and that, while the Funds’ sponsor has agreed to assume such responsibility, ETC is ultimately responsible for ensuring the obligation is satisfied. The Board considered information provided about the costs and expenses incurred by ETC in providing advisory services, evaluated the compensation and benefits received by ETC from its relationship with each Fund, and reviewed a profitability analysis from ETC with respect to each Fund. The Board considered the risks borne by ETC associated with providing services to the Funds, including the entrepreneurial risk associated with sponsoring new funds, as well as the enterprise risk emanating from litigation and reputational risks, operational and business risks, and other risks associated with the ongoing management of the Funds. Based on the foregoing information, the Board concluded that the advisory fees appeared reasonable in light of the services rendered.
Economies of Scale. The Board considered whether economies of scale have been realized with respect to the Funds. The Board concluded that no significant economies of scale have been realized and that the Board will have the opportunity to periodically reexamine whether such economies have been achieved.
Conclusion. No single factor was determinative of the Board’s decision to approve the continuance of the Agreement on behalf of each Fund; rather, the Board based its determination on the total mix of information available to it. Based on a consideration of all the factors in their totality, the Board, including the Independent Trustees, determined that the Agreement, including the compensation payable thereunder, was fair and reasonable to each Fund. The Board, including the Independent Trustees, therefore, determined that the approval of the continuance of the Agreement was in the best interests of each Fund and its shareholders.
32
10900 Hefner Pointe Drive, Suite 400
Oklahoma City, OK 73120
Investment Adviser:
Exchange Traded Concepts, LLC
10900 Hefner Pointe Drive, Suite 400
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 the Funds’ Statements of Additional Information, which is available without charge by visiting the Funds’ website at www.qraftaietf.com or the SEC’s website at www.sec.gov or by calling toll-free (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 toll-free (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 its 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, each 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.
(b) | Not applicable. |
ITEM 2: CODE OF ETHICS.
Not applicable for Semi-Annual Reports.
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for Semi-Annual Reports.
Item 4: Principal Accountant Fees and Services.
Not applicable for Semi-Annual Reports.
Item 5: Audit Committee of Listed registrants.
Not applicable for Semi-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 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 for Semi-Annual Reports. | |
(a)(2) | Certifications pursuant to Rule 30a-2(a) are attached hereto. | |
(a)(2)(1) | Not applicable. | |
(a)(2)(2) | 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: | 12/20/2022 |
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: | 12/20/2022 | ||
By (Signature and Title) | /s/ Christopher W. Roleke | ||
Christopher W. Roleke | |||
Principal Financial Officer | |||
Date: | 12/20/2022 |