UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-PORT-P
Investment Company Act File Number 811-23089
IDX Funds
(Exact name of registrant as specified in charter)
2201 E. Camelback Road, Suite 605
Phoenix, AZ 85016
(Address of Principal Executive Offices)
The Corporation Trust Company
Corporation Trust Center
1209 Orange St.
Wilmington, DE 19801
(Name and address of agent for service)
With Copies To:
Bo J. Howell
FinTech Law, LLC
6224 Turpin Hills Dr.
Cincinnati, OH 45244
Registrant’s telephone number, including area code: (800) 711-9164
Date of fiscal year end: 12/31/2023
Date of reporting period: 09/30/2023
IDX FUNDS
IDX Risk-Managed Bitcoin Strategy Fund
INSTITUTIONAL CLASS (BTIDX)
IDX Commodity Opportunities Fund
INSTITUTIONAL CLASS (COIDX)
SEPTEMBER 30, 2023
IDX Funds
IDX Risk-Managed Bitcoin Strategy Fund
CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2023
| Principal Amount ($) | | | | | Coupon Rate (%) | | | Maturity | | | Fair Value | |
| | | | | SHORT TERM INVESTMESTS - 69.60% | | | | | | | | | | | | |
| | | | | MONEY MARKET FUNDS - 69.60% | | | | | | | | | | | | |
| | 12,985,454 | | | First American Government Obligations Fund, Class X (a) (b) | | | 5.265 | | | | 12/1/2023 | | | | 12,985,454 | |
| | | | | TOTAL SHORT TERM INVESTMESTS - (Cost $12,985,454) | | | | | | | | | | | 12,985,454 | |
| | | | | | | | | | | | | | | | | |
| | | | | TOTAL INVESTMENTS - 69.60% - (Cost $12,985,454) | | | | | | | | | | | 12,985,454 | |
| | | | | ASSETS IN EXCESS OF OTHER LIABILITIES - 30.40% (c) | | | | | | | | | | | 5,676,379 | |
| | | | | NET ASSETS - 100.00% | | | | | | | | | | $ | 18,661,833 | |
| (a) | Security exceeds 25% of the Fund’s total investments. For further information on this security, available upon request at no charge, please contact the Fund’s shareholder servicing agent at (877) 244-6235. |
| (b) | Variable rate security; the rate shown represents the seven day effective yield at September 30, 2023. |
| (c) | Deposits with broker pledged as collateral for derivative contracts. |
The accompanying notes are an integral part of these Consolidated Schedules of Investments.
IDX Funds
IDX Risk-Managed Bitcoin Strategy Fund
CONSOLIDATED SCHEDULE OF OPEN FUTURES CONTRACTS (Unaudited)
September 30, 2023
| | | Number of Contracts | | | Expiration Date | | Current Notional Amount | | | Unrealized
Appreciation | | | Unrealized
(Depreciation) | |
| PURCHASE CONTRACTS | | | | | | | | | | | | | | | | | | |
| CME Bitcoin Futures (a) (b) | | | 36.00 | | | 10/30/2023 | | $ | 4,878,000 | | | $ | 74,868 | | | $ | - | |
| TOTAL PURCHASE CONTRACTS | | | | | | | | | | | | | 74,868 | | | | - | |
| | | | | | | | | | | | | | | | | | | |
| TOTAL FUTURES CONTRACTS | | | | | | | | | | | | $ | 74,868 | | | $ | - | |
| | | | | | | | | | | | | | | | | | | |
| NET UNREALIZED APPRECIATION | | | | | | | | | | | | | | | | $ | 74,868 | |
| (a) | Chicago Mercantile Exchange (‘’CME’’) futures contracts settle on their respective maturity date. The unrealized appreciation on these contracts is a receivable for unsettled open futures contracts and the unrealized depreciation is a payable for unsettled open futures contracts on the Fund’s Consolidated Statements of Assets and Liabilities. |
| (b) | All or a portion of this investment is a holding of IDX Risk-Managed Bitcoin Strategy Subsidiary. |
The accompanying notes are an integral part of these Consolidated Schedules of Investments.
IDX Funds
IDX Commodity Opportunities Fund
CONSOLIDATED SCHEDULE OF INVESTMENTS (Unaudited)
September 30, 2023
| Shares | | | | | Fair Value | |
| | | | | EXCHANGE TRADED FUNDS - 17.22% | | | | |
| | | | | CORPORATE -13.58% | | | | |
| | 90,000 | | | Invesco Senior Loan ETF | | $ | 1,888,650 | |
| | 20,000 | | | Pimco 0-5 Year High Yield Corp Bond ETF | | | 1,806,600 | |
| | 130,000 | | | SPDR Bloomberg Short Term High Yield Bond ETF | | | 3,179,150 | |
| | | | | | | | 6,874,400 | |
| | | | | GOVERNMENT - 3.64% | | | | |
| | 20,100 | | | SPDR Bloomberg 1-3 Month T-Bill ETF | | | 1,845,683 | |
| | | | | | | | | |
| | | | | TOTAL EXCHANGE TRADED FUNDS - (Cost $8,713,369) | | | 8,720,083 | |
| Number of Contracts | | | | | Cost Basis | | | Notional Amount | | | Fair Value | |
| | | | | PURCHASED OPTIONS - 0.19% | | | | | | | | | | | | |
| | | | | PUT OPTIONS - 0.19% | | | | | | | | | | | | |
| | 50 | | | Invesco QQQ Trust Series 1
Expiration Date: January 19, 2024, Exercise Price: $370.00 (a) | | | 82,785 | | | | 1,791,350 | | | | 96,200 | |
| | | | | TOTAL PURCHASED OPTIONS - (Cost $82,785) | | | | | | | | | | | 96,200 | |
| Principal Amount ($) | | | | | Coupon Rate (%) | | | Maturity | | | Fair Value | |
| | | | | SHORT TERM INVESTMESTS - 66.48% | | | | | | | | | | | | |
| | | | | MONEY MARKET FUNDS - 66.48% | | | | | | | | | | | | |
| | 33,677,317 | | | First American Government Obligations Fund, Class X (b) (c) | | | 5.265 | | | | 45,261.0000 | | | | 33,677,317 | |
| | | | | TOTAL SHORT TERM INVESTMESTS - (Cost $33,677,317) | | | | | | | | | | | 33,677,317 | |
| | | | | | | | | | | | | | | | | |
| | | | | TOTAL INVESTMENTS - 83.89% - (Cost $42,473,471) | | | | | | | | | | | 42,493,600 | |
| | | | | OTHER ASSETS IN EXCESS OF LIABILITIES - 16.11% (d) | | | | | | | | | | | 8,161,329 | |
| | | | | NET ASSETS - 100.00% | | | | | | | | | | $ | 50,654,929 | |
| (a) | Non-income producing security. |
| (b) | Security exceeds 25% of the Fund’s total investments. For further information on this security, available upon request at no charge, please contact the Fund’s shareholder servicing agent at (877) 244-6235. |
| (c) | Variable rate security; the rate shown represents the seven day effective yield at September 30, 2023. |
| (d) | Deposits with broker pledged as collateral for derivative contracts. |
The accompanying notes are an integral part of these Consolidated Schedules of Investments.
IDX Funds
IDX Commodity Opportunities Fund
CONSOLIDATED SCHEDULE OF OPEN FUTURES CONTRACTS (Unaudited)
September 30, 2023
| | | Number of Contracts | | | Expiration Date | | Current Notional Amount | | | Unrealized
Appreciation | | | Unrealized
(Depreciation) | |
| PURCHASE CONTRACTS | | | | | | | | | | | | | | | | | | |
| ICE U.S. Dollar Index Futures (c) | | | 24.00 | | | 12/15/2023 | | $ | 2,539,560 | | | $ | 35,355 | | | $ | - | |
| Brent Crude Last Day Futures (c) (e) | | | 5.00 | | | 12/15/2023 | | | 461,000 | | | | 4,843 | | | | - | |
| Coffee Futures (c) (e) | | | 18.00 | | | 12/15/2023 | | | 986,513 | | | | - | | | | (49,578 | ) |
| Cotton Futures (c) (e) | | | 21.00 | | | 12/29/2023 | | | 915,075 | | | | 3,803 | | | | - | |
| Crude Oil Futures (d) (e) | | | 5.00 | | | 11/17/2023 | | | 453,950 | | | | 12,940 | | | | - | |
| Henry Hub Natural Gas Futures (d) (e) | | | 32.00 | | | 11/17/2023 | | | 937,280 | | | | - | | | | (36,865 | ) |
| Lean Hog Futures (b) (e) | | | 59.00 | | | 10/13/2023 | | | 1,892,720 | | | | - | | | | (80,937 | ) |
| Live Cattle Futures (b) (e) | | | 55.00 | | | 10/31/2023 | | | 4,052,400 | | | | 98,659 | | | | - | |
| No. 11 Sugar Futures (c) (e) | | | 46.00 | | | 3/15/2024 | | | 1,364,250 | | | | - | | | | (32,578 | ) |
| NY Harbor ULSD Futures (d) (e) | | | 1.00 | | | 11/17/2023 | | | 138,625 | | | | 2,631 | | | | - | |
| RBOB Gasoline Futures (b) (e) | | | 1.00 | | | 11/17/2023 | | | 100,779 | | | | - | | | | (10,620 | ) |
| TOTAL PURCHASE CONTRACTS | | | | | | | | | | | | | 158,231 | | | | (210,578 | ) |
| | | | | | | | | | | | | | | | | | | |
| SALE CONTRACTS | | | | | | | | | | | | | | | | | | |
| US Treasury Bond Futures (a) | | | (8.00 | ) | | 12/19/2023 | | | (910,250 | ) | | | 50,051 | | | | - | |
| Chicago SRW Wheat Futures (a) (e) | | | (9.00 | ) | | 12/29/2023 | | | (243,675 | ) | | | 43,014 | | | | - | |
| Copper Futures (b) (e) | | | (7.00 | ) | | 12/27/2023 | | | (6,541 | ) | | | 10,398 | | | | - | |
| Corn Futures (a) (e) | | | (16.00 | ) | | 12/15/2023 | | | (381,400 | ) | | | 3,758 | | | | - | |
| Gold Futures (b) (e) | | | (9.00 | ) | | 12/15/2023 | | | (1,679,490 | ) | | | 83,302 | | | | - | |
| Silver Futures (b) (e) | | | (4.00 | ) | | 12/28/2023 | | | (37,716 | ) | | | 34,317 | | | | - | |
| Soybean Futures (a) (e) | | | (5.00 | ) | | 11/17/2023 | | | (318,750 | ) | | | 11,549 | | | | - | |
| TOTAL SALES CONTRACTS | | | | | | | | | | | | | 236,389 | | | | - | |
| TOTAL FUTURES CONTRACTS | | | | | | | | | | | | $ | 394,620 | | | $ | (210,578 | ) |
| | | | | | | | | | | | | | | | | | | |
| NET UNREALIZED APPRECIATION | | | | | | | | | | | | | | | | $ | 184,042 | |
| (a) | Chicago Board of Trade (“CBOT”) futures contracts settle on their respective maturity date. The unrealized appreciation on these contracts is a receivable for unsettled open futures contracts and the unrealized depreciation is a payable for unsettled open futures contracts on the Fund’s Consolidated Statements of Assets and Liabilities. |
| (b) | Chicago Mercantile Exchange (‘’CME’’) futures contracts settle on their respective maturity date. The unrealized appreciation on these contracts is a receivable for unsettled open futures contracts and the unrealized depreciation is a payable for unsettled open futures contracts on the Fund’s Consolidated Statements of Assets and Liabilities. |
| (c) | ICE Futures U.S., Inc. (“ICE”) futures contracts settle on their respective maturity date. The unrealized appreciation on these contracts is a receivable for unsettled open futures contracts and the unrealized depreciation is a payable for unsettled open futures contracts on the Fund’s Consolidated Statements of Assets and Liabilities. |
| (d) | New York Mercantile Exchange (‘’NYME’’) futures contracts settle on their respective maturity date. The unrealized appreciation on these contracts is a receivable for unsettled open futures contracts and the unrealized depreciation is a payable for unsettled open futures contracts on the Fund’s Consolidated Statements of Assets and Liabilities. |
| (e) | All or a portion of this investment is a holding of IDX Commodity Subsidiary. |
The accompanying notes are an integral part of these Consolidated Schedules of Investments.
IDX Funds
Notes to the Consolidated Schedules of Investments (Unaudited)
September 30, 2023
INVESTMENT VALUATIONS
Processes and Structure
The Funds’ Board of Trustees (the “Board”) has adopted guidelines for valuing investments and derivative instruments including in circumstances in which market quotes are not readily available and has delegated authority to the Adviser to apply those guidelines in determining fair value prices, subject to review by the Board.
Hierarchy of Fair Value Inputs
The Funds utilizes various methods to measure the fair value of most of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:
| ● | Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. |
| ● | Level 2 - Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data. |
| ● | Level 3 - Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available. |
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Fair Value Measurements
A description of the valuation techniques applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis follows.
Equity securities - Securities traded on a national securities exchange (or reported on the NASDAQ national market), including common stock, ETFs, and options purchased, are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded, and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as American depositary receipts, financial futures, ETFs, and the movement of certain indexes of securities based on a statistical analysis of the historical relationship and are categorized in Level 2. Preferred stock and other equities traded on inactive markets or valued by reference to similar instruments are also categorized in Level 2.
Fixed Income Securities - Fixed income securities and certificates of deposit with maturities more than 60 days when acquired generally are valued using an evaluated price supplied by an independent pricing service. Inputs used by the pricing service for U.S. government and treasury securities are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker dealer quotes, yields, bids, offers and reference data. Agency issued debt securities, foreign issued bonds and municipal bonds are generally valued in a manner similar to U.S. government securities. Evaluations for corporate bonds are typically based on valuation methodologies such as market pricing and other analytical pricing models as well as market transactions and dealer quotations based on observable inputs. Fixed income securities are generally categorized in Level 2 of the fair value hierarchy depending on inputs used and market activity levels for specific securities.
Money Market Funds - Money market funds are valued at their net asset value of $1.00 per share and are categorized as Level 1 of the fair value hierarchy.
Derivative Instruments - Listed derivative instruments that are actively traded, including futures contracts, are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. Certain investments such as commodity pools are measured based upon NAV as a practical expedient to determine fair value and are not required to be categorized in the fair value hierarchy.
IDX Funds
Notes to the Consolidated Schedules of Investments (Unaudited)
September 30, 2023
INVESTMENT VALUATIONS (Continued)
The following table summarizes the IDX Managed-Risk Bitcoin Strategy Fund’s consolidated investments and other financial instruments as of September 30, 2023:
| Security Classification (a) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments | | | | | | | | | | | | | | | | |
| Short-Term Investments (b) | | $ | 12,985,454 | | | $ | - | | | $ | - | | | $ | 12,985,454 | |
| Total Investments | | $ | 12,985,454 | | | $ | - | | | $ | - | | | $ | 12,985,454 | |
| | | | | | | | | | | | | | | | | |
| Other Financial Instruments | | | | | | | | | | | | | | | | |
| Futures Contracts | | | | | | | | | | | | | | | | |
| Unrealized appreciation of open futures contracts | | $ | 74,868 | | | $ | - | | | $ | - | | | $ | 74,868 | |
| Unrealized depreciation of open futures contracts | | | - | | | | - | | | | - | | | | - | |
| Total Futures Contracts | | | 74,868 | | | | - | | | | - | | | | 74,868 | |
| Total Other Financial Instruments | | $ | 74,868 | | | $ | - | | | $ | - | | | $ | 74,868 | |
| (a) | As of and during the period ended September 30, 2023, the Fund held no securities that were considered to be “Level 3” securities (those valued using significant unobservable inputs). |
| (b) | All money market funds and future contracts held in the Fund are Level 1 securities. |
The following table summarizes the IDX Commodity Opportunities Fund’s consolidated investments and other financial instruments as of September 30, 2023:
| Security Classification (a) | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
| Investments | | | | | | | | | | | | | | | | |
| Exchange Traded Funds (b) | | $ | 8,720,083 | | | $ | - | | | $ | - | | | $ | 8,720,083 | |
| Purchased Options (b) | | | 96,200 | | | | - | | | | - | | | | 96,200 | |
| Short-Term Investments (b) | | | 33,677,317 | | | | - | | | | - | | | | 33,677,317 | |
| Total Investments | | $ | 42,493,600 | | | $ | - | | | $ | - | | | $ | 42,493,600 | |
| | | | | | | | | | | | | | | | | |
| Other Financial Instruments | | | | | | | | | | | | | | | | |
| Futures Contracts | | | | | | | | | | | | | | | | |
| Unrealized appreciation of open futures contracts | | $ | 394,620 | | | $ | - | | | $ | - | | | $ | 394,620 | |
| Unrealized depreciation of open futures contracts | | | (210,578 | ) | | | - | | | | - | | | | (210,578 | ) |
| Total Futures Contracts | | $ | 184,042 | | | $ | - | | | $ | - | | | $ | 184,042 | |
| (a) | As of and during the period ended September 30, 2023, the Fund held no securities that were considered to be “Level 3” securities (those valued using significant unobservable inputs). |
| (b) | All equity securities, money market funds, and future contracts held in the Fund are Level 1 securities. For a detailed break-out of common stock by industry, please refer to the Consolidated Schedules of Investments. |
IDX FUNDS
2201 E. Camelback Road
Suite 605
Phoenix, AZ 85016
INVESTMENT ADVISER
IDX Advisors, LLC
2201 E. Camelback Road
Suite 605
Phoenix, AZ 85016
ADMINISTRATOR
Gryphon Fund Group, LLC
3900 Park East Drive
Suite 200
Beachwood, OH 44122
TRANSFER AGENT
Gryphon Fund Group, LLC
3900 Park East Drive
Suite 200
Beachwood, OH 44122
DISTRIBUTOR
Foreside Fund Services, LLC
Three Canal Plaza
Suite 100
Portland, ME 04101
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Cohen & Company, LTD
1350 Euclid Ave
8th Floor
Cleveland, OH 44115
LEGAL COUNSEL
FinTech Law, LLC
6224 Turpin Hills Dr.
Cincinnati, OH 45244
CUSTODIAN BANK
U.S Bank, N.A.
425 Walnut Street
Cincinnati, OH 4520
