InfraCap Equity Income Fund ETF | ||||||||
Schedule of Investments (Unaudited) | ||||||||
February 29, 2024 | ||||||||
Shares | Value | |||||||
Common Stocks — 98.33% | ||||||||
Automobiles — 0.32% | ||||||||
Stellantis(a) | 6,200 | $ | 162,812 | |||||
Banks — 11.03% | ||||||||
Bank of America Corp.(b) | 37,932 | 1,309,412 | ||||||
Citigroup, Inc.(b) | 23,008 | 1,276,714 | ||||||
Citizens Financial Group, Inc.(b)(d) | 23,227 | 729,096 | ||||||
Huntington Bancshares, Inc.(b)(d) | 10,760 | 140,310 | ||||||
JPMorgan Chase & Company(b) | 7,000 | 1,302,420 | ||||||
KeyCorp(b) | 5,322 | 75,945 | ||||||
Truist Financial Corp.(b)(d) | 22,560 | 789,149 | ||||||
5,623,046 | ||||||||
Beverages — 3.15% | ||||||||
Coca-Cola Co.(b)(d) | 12,201 | 732,304 | ||||||
PepsiCo, Inc.(b)(c)(d) | 5,280 | 872,995 | ||||||
1,605,299 | ||||||||
Biotechnology — 0.27% | ||||||||
Amgen, Inc. | 507 | 138,832 | ||||||
Capital Markets — 12.44% | ||||||||
AllianceBernstein Holding LP(b)(d) | 37,302 | 1,185,085 | ||||||
Goldman Sachs Group, Inc.(b)(c) | 6,420 | 2,497,701 | ||||||
Morgan Stanley(b)(c)(d) | 30,906 | 2,659,152 | ||||||
6,341,938 | ||||||||
Chemicals — 2.92% | ||||||||
Dow, Inc.(b) (c)(d) | 26,678 | 1,490,767 | ||||||
Communications Equipment — 0.26% | ||||||||
Cisco Systems, Inc.(b)(c) | 2,740 | 132,534 | ||||||
Consumer Finance — 0.45% | ||||||||
American Express Co. | 1,039 | 227,977 | ||||||
Containers & Packaging — 1.46% | ||||||||
International Paper Co.(b)(c)(d) | 21,000 | 742,560 | ||||||
Diversified Real Estate Investments Trusts (REITs) — 0.92% | ||||||||
Global Net Lease, Inc.(b)(d) | 65,317 | 470,936 | ||||||
Diversified Telecommunication Services — 2.17% | ||||||||
AT&T, Inc. (b)(c)(d) | 48,349 | 818,549 | ||||||
Verizon Communications, Inc.(b) | 7,213 | 288,664 | ||||||
1,107,213 | ||||||||
Electric Utilities — 4.56% | ||||||||
Duke Energy Corp.(b)(d) | 8,602 | 789,922 | ||||||
Edison International(b)(d) | 11,834 | 804,948 | ||||||
Southern Co.(b)(c)(d) | 10,851 | 729,730 | ||||||
2,324,600 | ||||||||
Electrical Equipment — 0.12% | ||||||||
Emerson Electric Co. | 586 | 62,614 | ||||||
Food Products — 2.03% | ||||||||
Kraft Heinz Co.(b)(c)(d) | 29,335 | 1,034,939 | ||||||
Gas Utilities — 0.77% | ||||||||
Northwest Natural Holding Co. (b)(d) | 10,625 | 390,363 | ||||||
Health Care Providers & Services — 1.20% | ||||||||
UnitedHealth Group, Inc.(c) | 1,244 | 614,038 | ||||||
Health Care Real Estate Investment Trusts (REITs) — 0.69% | ||||||||
Healthcare Realty Trust, Inc. – Class A(b)(d) | 25,448 | 350,673 | ||||||
Hotels, Restaurants & Leisure — 4.84% | ||||||||
Bloomin' Brands, Inc.(b)(d) | 67,313 | 1,829,567 | ||||||
McDonald's Corp.(b)(c) | 1,213 | 354,536 | ||||||
Starbucks Corp.(b) | 3,000 | 284,700 | ||||||
2,468,803 | ||||||||
Household Products — 0.71% | ||||||||
Procter & Gamble Co.(c) | 2,261 | 359,363 | ||||||
Independent Power and Renewable Electricity Producers — 0.60% | ||||||||
AES Corp.(d) | 20,245 | 307,724 | ||||||
Industrial Real Estate Investment Trusts (REITs) — 2.37% | ||||||||
Rexford Industrial Realty, Inc.(b) | 23,770 | 1,209,418 | ||||||
IT Services — 0.80% | ||||||||
International Business Machines Corp.(b) | 2,200 | 407,066 | ||||||
Multi-Utilities — 0.96% | ||||||||
Algonquin Power & Utilities Corp.(a)(b)(d) | 4,250 | 24,862 | ||||||
Dominion Energy, Inc.(b)(d) | 9,706 | 464,238 | ||||||
489,100 | ||||||||
Office Real Estate Investment Trusts (REITs) — 5.95% | ||||||||
Boston Properties, Inc.(b)(d) | 26,006 | 1,683,108 | ||||||
Kilroy Realty Corp.(b)(d) | 35,639 | 1,350,362 | ||||||
3,033,470 | ||||||||
Oil, Gas & Consumable Fuels — 18.76% | ||||||||
Chevron Corp.(b)(c)(d) | 10,800 | 1,641,708 | ||||||
Enbridge, Inc.(a)(b)(d) | 37,801 | 1,301,110 | ||||||
Energy Transfer LP(b) | 111,000 | 1,625,040 | ||||||
Kinder Morgan, Inc.(b)(c)(d) | 62,483 | 1,086,579 | ||||||
MPLX LP(b) | 41,000 | 1,576,040 | ||||||
New Fortress Energy, Inc.(b)(d) | 44,433 | 1,561,820 | ||||||
TC Energy Corp.(a)(b)(d) | 6,632 | 262,296 | ||||||
Williams Cos., Inc.(b)(c) | 14,132 | 507,904 | ||||||
9,562,497 | ||||||||
Pharmaceuticals — 2.65% | ||||||||
Johnson & Johnson(b)(c)(d) | 8,383 | 1,352,849 | ||||||
Retail Real Estate Investment Trusts (REITs) — 3.59% | ||||||||
Agree Realty Corp.(b) | 11,886 | 653,136 | ||||||
NNN REIT, Inc.(b)(d) | 11,969 | 487,019 | ||||||
Realty Income Corp.(b)(c)(d) | 13,242 | 690,040 | ||||||
1,830,195 | ||||||||
Semiconductors & Semiconductor Equipment — 1.28% | ||||||||
Broadcom, Inc. | 500 | 650,245 | ||||||
Specialized Real Estate Investment Trusts (REITs) — 2.86% | ||||||||
American Tower Corp.(b)(d) | 1,635 | 325,136 | ||||||
Crown Castle, Inc.(b)(d) | 6,079 | 668,325 | ||||||
Digital Realty Trust, Inc. | 1,000 | 146,810 | ||||||
Gaming and Leisure Properties, Inc.(b) | 7,000 | 318,360 | ||||||
1,458,631 | ||||||||
Tobacco — 6.52% | ||||||||
Altria Group, Inc.(b)(c)(d) | 27,115 | 1,109,275 | ||||||
Philip Morris International, Inc.(b)(c)(d) | 24,623 | 2,215,085 | ||||||
3,324,360 | ||||||||
Wireless Telecommunication Services — 1.68% | ||||||||
Vodafone Group PLC - ADR(a)(b)(d) | 95,717 | 855,710 | ||||||
Total Common Stocks (Cost $52,126,939) | 50,130,572 | |||||||
Preferred Stocks — 25.31% | ||||||||
AGNC Investment Corp., 7.75%, Series G(b)(d)(e)(f) | 21,250 | 490,238 | ||||||
Algonquin Power & Utilities Corp., 7.75%, 6/15/2024(a)(b)(d) | 66,467 | 1,338,645 | ||||||
Babcock & Wilcox Enterprises, Inc., 7.75%, Series A(b)(d)(e) | 52,113 | 638,384 | ||||||
DigitalBridge Group, Inc., 7.13%, Series H(b)(d)(e) | 33,352 | 800,782 | ||||||
FTAI Aviation Ltd., 8.25%, Series A(a)(b)(d)(e)(f) | 48,281 | 1,231,166 | ||||||
Global Net Lease, Inc., 6.88%, Series B(b)(d)(e) | 23,973 | 478,741 | ||||||
MFA Financial, Inc., 8.88%, 2/15/2029(b) | 19,542 | 493,045 | ||||||
New York Mortgage Trust, Inc., 8.00%, Series D(b)(d)(e)(f) | 50,067 | 1,109,985 | ||||||
Rithm Capital Corp., 6.38%, Series C(b)(d)(e)(f) | 24,674 | 538,880 | ||||||
RLJ Lodging Trust, 1.95%, Series A(e) | 45,222 | 1,126,028 | ||||||
SCE Trust III, 5.75%, Series H, 3/15/2024(b)(d)(f) | 28,519 | 722,386 | ||||||
SLM Corp., 7.35%, Series B(b)(e)(f) | 21,847 | 1,607,284 | ||||||
Textainer Group Holdings Ltd., 6.25%, Series B(a)(b)(d)(e)(f) | 31,434 | 778,306 | ||||||
United States Cellular Corp., 5.50%, 3/1/2070(b)(d) | 36,661 | 701,691 | ||||||
United States Cellular Corp., 5.50%, 6/1/2070(b)(d) | 23,379 | 443,500 | ||||||
United States Cellular Corp., 6.25%, 9/1/2069(b)(d) | 19,411 | 402,390 | ||||||
Total Preferred Stocks (Cost $13,304,640) | 12,901,451 | |||||||
Convertible Preferred Stocks — 6.35% | ||||||||
EPR Properties, 9.00%, Series E(b)(d)(e) | 9,012 | 254,319 | ||||||
Kimco Realty Corp., 7.25%, Series N(b)(e) | 5,582 | 318,732 | ||||||
NextEra Energy, Inc., 6.93%, 9/1/2025(b)(d) | 43,469 | 1,523,153 | ||||||
UGI Corp., 7.25%, 6/1/2024(b)(d) | 20,011 | 1,143,829 | ||||||
Total Convertible Preferred Stocks (Cost $3,819,284) | 3,240,033 | |||||||
Money Market Funds — 0.04% | ||||||||
First American Government Obligations Fund, Class X, 5.23%(g) | 17,848 | 17,848 | ||||||
Total Money Market Funds (Cost $17,848) | 17,848 | |||||||
Total Investments (Cost $69,268,711) — 130.03% | 66,289,904 | |||||||
Liabilities in Excess of Other Assets — (30.03)% | (15,309,919 | ) | ||||||
Total Net Assets — 100.00% | $ | 50,979,985 |
ADR | -American Depositary Receipt |
PLC | -Public Limited Company |
(a) | Foreign issued security. |
(b) | All or a portion of this security has been committed as collateral for borrowing facility. The total value of assets committed as collateral as of February 29, 2024 is $35,258,044. |
(c) | Held in connection with written option contracts. See Schedule of Written Options for further information. |
(d) | All or a portion of security has been committed as collateral for open written option contracts. The total value of assets committed as collateral as of February 29, 2024 is $11,346,728. |
(e) | Perpetual maturity. |
(f) | This security represents a fixed to float/variable rate preferred stock. The coupon rate shown represents the fixed rate as of February 29, 2024. |
(g) | The rate quoted is the annualized seven-day effective yield as of February 29, 2024. |
The Global Industry Classification Standard (“GICS®”) was developed by and/or is the exclusive property of MSCI, Inc. (“MSCI”) and Standard & Poor Financial Services, LLC (“S&P”). GICS® is a service mark of MSCI and S&P and has been licensed for use.
InfraCap Equity Income Fund ETF | ||||||||||||
Schedule of Written Options (Unaudited) | ||||||||||||
February 29, 2024 | ||||||||||||
WRITTEN OPTIONS(a) | Contracts(b) | Notional Amount | Value | |||||||||
Call Options | ||||||||||||
Altria Group, Inc. | ||||||||||||
Exercise Price: $45.00, Expiration: 03/15/2024 | (200) | $ | (818,200 | ) | $ | (100 | ) | |||||
Exercise Price: $45.00, Expiration: 06/21/2024 | (100) | (409,100 | ) | (1,650 | ) | |||||||
Exercise Price: $45.00, Expiration: 09/20/2024 | (100) | (409,100 | ) | (3,550 | ) | |||||||
AT&T, Inc. | ||||||||||||
Exercise Price: $17.00, Expiration: 04/19/2024 | (100) | (169,300 | ) | (4,400 | ) | |||||||
Exercise Price: $20.00, Expiration: 06/21/2024 | (100) | (169,300 | ) | (800 | ) | |||||||
Chevron Corp. | ||||||||||||
Exercise Price: $165.00, Expiration: 03/01/2024 | (120) | (1,824,120 | ) | (60 | ) | |||||||
Exercise Price: $160.00, Expiration: 03/15/2024 | (100) | (1,520,100 | ) | (3,100 | ) | |||||||
Exercise Price: $162.50, Expiration: 03/22/2024 | (40) | (608,040 | ) | (1,160 | ) | |||||||
Exercise Price: $162.50, Expiration: 03/28/2024 | (50) | (760,050 | ) | (2,250 | ) | |||||||
Exercise Price: $165.00, Expiration: 04/05/2024 | (100) | (1,520,100 | ) | (3,900 | ) | |||||||
Exercise Price: $170.00, Expiration: 04/19/2024 | (100) | (1,520,100 | ) | (3,300 | ) | |||||||
Cisco Systems, Inc. | ||||||||||||
Exercise Price: $50.00, Expiration: 03/01/2024 | (40) | (193,480 | ) | (20 | ) | |||||||
Dow, Inc. | ||||||||||||
Exercise Price: $60.00, Expiration: 03/15/2024 | (100) | (558,800 | ) | (350 | ) | |||||||
Exercise Price: $59.00, Expiration: 03/22/2024 | (100) | (558,800 | ) | (2,500 | ) | |||||||
Exercise Price: $60.00, Expiration: 06/21/2024 | (100) | (558,800 | ) | (12,100 | ) | |||||||
Exercise Price: $62.50, Expiration: 09/20/2024 | (50) | (279,400 | ) | (6,750 | ) | |||||||
Goldman Sachs Group, Inc. | ||||||||||||
Exercise Price: $400.00, Expiration: 03/01/2024 | (10) | (389,050 | ) | (75 | ) | |||||||
Exercise Price: $405.00, Expiration: 03/01/2024 | (10) | (389,050 | ) | (20 | ) | |||||||
Exercise Price: $410.00, Expiration: 03/08/2024 | (10) | (389,050 | ) | (385 | ) | |||||||
Exercise Price: $410.00, Expiration: 03/15/2024 | (10) | (389,050 | ) | (1,095 | ) | |||||||
Honeywell International, Inc. | ||||||||||||
Exercise Price: $205.00, Expiration: 03/01/2024 | (10) | (198,730 | ) | (25 | ) | |||||||
Exercise Price: $205.00, Expiration: 03/08/2024 | (10) | (198,730 | ) | (175 | ) | |||||||
Exercise Price: $210.00, Expiration: 03/22/2024 | (10) | (198,730 | ) | (250 | ) | |||||||
Exercise Price: $210.00, Expiration: 04/19/2024 | (10) | (198,730 | ) | (1,125 | ) | |||||||
International Paper Co. | ||||||||||||
Exercise Price: $40.00, Expiration: 04/19/2024 | (110) | (388,960 | ) | (1,375 | ) | |||||||
Johnson & Johnson | ||||||||||||
Exercise Price: $165.00, Expiration: 03/01/2024 | (10) | (161,380 | ) | (15 | ) | |||||||
Exercise Price: $165.00, Expiration: 03/08/2024 | (10) | (161,380 | ) | (210 | ) | |||||||
Exercise Price: $165.00, Expiration: 03/15/2024 | (20) | (322,760 | ) | (1,160 | ) | |||||||
Exercise Price: $165.00, Expiration: 03/22/2024 | (100) | (1,613,800 | ) | (10,400 | ) | |||||||
Kinder Morgan, Inc. | ||||||||||||
Exercise Price: $18.00, Expiration: 03/15/2024 | (100) | (173,900 | ) | (450 | ) | |||||||
Exercise Price: $18.00, Expiration: 04/19/2024 | (200) | (347,800 | ) | (4,400 | ) | |||||||
Exercise Price: $19.00, Expiration: 06/21/2024 | (100) | (173,900 | ) | (1,100 | ) | |||||||
Kraft Heinz Co. | ||||||||||||
Exercise Price: $37.50, Expiration: 04/19/2024 | (100) | (352,800 | ) | (1,550 | ) | |||||||
Exercise Price: $37.50, Expiration: 06/21/2024 | (340) | (1,199,520 | ) | (18,190 | ) | |||||||
McDonald's Corp. | ||||||||||||
Exercise Price: $315.00, Expiration: 03/01/2024 | (10) | (292,280 | ) | (55 | ) | |||||||
Exercise Price: $305.00, Expiration: 03/08/2024 | (20) | (584,560 | ) | (330 | ) | |||||||
Exercise Price: $305.00, Expiration: 03/15/2024 | (40) | (1,169,120 | ) | (1,060 | ) | |||||||
Exercise Price: $310.00, Expiration: 03/22/2024 | (50) | (1,461,400 | ) | (1,200 | ) | |||||||
Morgan Stanley | ||||||||||||
Exercise Price: $92.00, Expiration: 03/01/2024 | (10) | (86,040 | ) | (20 | ) | |||||||
Exercise Price: $92.00, Expiration: 03/08/2024 | (10) | (86,040 | ) | (40 | ) | |||||||
Exercise Price: $92.00, Expiration: 03/22/2024 | (50) | (430,200 | ) | (1,300 | ) | |||||||
Exercise Price: $92.00, Expiration: 03/28/2024 | (50) | (430,200 | ) | (1,925 | ) | |||||||
PepsiCo, Inc. | ||||||||||||
Exercise Price: $180.00, Expiration: 03/01/2024 | (30) | (496,020 | ) | (15 | ) | |||||||
Exercise Price: $180.00, Expiration: 03/08/2024 | (40) | (661,360 | ) | (60 | ) | |||||||
Exercise Price: $185.00, Expiration: 03/15/2024 | (10) | (165,340 | ) | (5 | ) | |||||||
Philip Morris International, Inc. | ||||||||||||
Exercise Price: $97.00, Expiration: 03/01/2024 | (10) | (89,960 | ) | (75 | ) | |||||||
Exercise Price: $97.00, Expiration: 03/08/2024 | (20) | (179,920 | ) | (50 | ) | |||||||
Exercise Price: $95.00, Expiration: 03/15/2024 | (60) | (539,760 | ) | (450 | ) | |||||||
Exercise Price: $96.00, Expiration: 03/22/2024 | (20) | (179,920 | ) | (400 | ) | |||||||
Exercise Price: $95.00, Expiration: 03/28/2024 | (10) | (89,960 | ) | (100 | ) | |||||||
Exercise Price: $95.00, Expiration: 04/05/2024 | (50) | (449,800 | ) | (625 | ) | |||||||
Exercise Price: $97.50, Expiration: 06/21/2024 | (70) | (629,720 | ) | (4,725 | ) | |||||||
Procter & Gamble Co. | ||||||||||||
Exercise Price: $160.00, Expiration: 03/01/2024 | (20) | (317,880 | ) | (160 | ) | |||||||
Realty Income Corp. | ||||||||||||
Exercise Price: $57.50, Expiration: 03/15/2024 | (30) | (156,330 | ) | (75 | ) | |||||||
Southern Co. | ||||||||||||
Exercise Price: $72.00, Expiration: 03/01/2024 | (40) | (269,000 | ) | (100 | ) | |||||||
Exercise Price: $70.00, Expiration: 03/08/2024 | (50) | (336,250 | ) | (250 | ) | |||||||
Exercise Price: $70.00, Expiration: 03/15/2024 | (50) | (336,250 | ) | (625 | ) | |||||||
Exercise Price: $72.50, Expiration: 03/15/2024 | (80) | (538,000 | ) | (400 | ) | |||||||
Exercise Price: $70.00, Expiration: 03/22/2024 | (50) | (336,250 | ) | (1,000 | ) | |||||||
Exercise Price: $75.00, Expiration: 05/17/2024 | (10) | (67,250 | ) | (200 | ) | |||||||
UnitedHealth Group, Inc. | ||||||||||||
Exercise Price: $560.00, Expiration: 03/01/2024 | (10) | (493,600 | ) | (1,260 | ) | |||||||
Exercise Price: $560.00, Expiration: 03/08/2024 | (10) | (493,600 | ) | (50 | ) | |||||||
Exercise Price: $560.00, Expiration: 03/15/2024 | (10) | (493,600 | ) | (150 | ) | |||||||
Exercise Price: $570.00, Expiration: 04/19/2024 | (10) | (493,600 | ) | (825 | ) | |||||||
Exercise Price: $600.00, Expiration: 06/21/2024 | (10) | (493,600 | ) | (1,170 | ) | |||||||
Exercise Price: $610.00, Expiration: 07/19/2024 | (10) | (493,600 | ) | (1,780 | ) | |||||||
Williams Cos., Inc. | ||||||||||||
Exercise Price: $35.00, Expiration: 03/08/2024 | (100) | (359,400 | ) | (10,250 | ) | |||||||
Exercise Price: $35.00, Expiration: 03/15/2024 | (110) | (395,340 | ) | (10,725 | ) | |||||||
(129,445 | ) | |||||||||||
Put Options | ||||||||||||
Goldman Sachs Group, Inc. | ||||||||||||
Exercise Price: $370.00, Expiration: 03/01/2024 | (10) | (389,050 | ) | (55 | ) | |||||||
Exercise Price: $372.50, Expiration: 03/08/2024 | (10) | (389,050 | ) | (615 | ) | |||||||
Exercise Price: $372.50, Expiration: 03/15/2024 | (20) | (778,100 | ) | (3,040 | ) | |||||||
McDonald's Corp. | ||||||||||||
Exercise Price: $292.50, Expiration: 03/01/2024 | (10) | (292,280 | ) | (1,070 | ) | |||||||
Merck & Co., Inc. | ||||||||||||
Exercise Price: $123.00, Expiration: 03/01/2024 | (10) | (127,150 | ) | (315 | ) | |||||||
Exercise Price: $125.00, Expiration: 03/08/2024 | (10) | (127,150 | ) | (415 | ) | |||||||
RTX Corp. | ||||||||||||
Exercise Price: $90.00, Expiration: 03/01/2024 | (40) | (358,680 | ) | (2,320 | ) | |||||||
Southern Co. | ||||||||||||
Exercise Price: $66.00, Expiration: 03/01/2024 | (20) | (134,500 | ) | (50 | ) | |||||||
Exercise Price: $66.00, Expiration: 03/08/2024 | (20) | (134,500 | ) | (400 | ) | |||||||
UnitedHealth Group, Inc. | ||||||||||||
Exercise Price: $517.50, Expiration: 03/01/2024 | (1) | (49,360 | ) | (2,353 | ) | |||||||
Walmart, Inc. | ||||||||||||
Exercise Price: $58.33, Expiration: 03/01/2024 | (60) | (351,660 | ) | (510 | ) | |||||||
Williams Cos., Inc. | ||||||||||||
Exercise Price: $34.00, Expiration: 03/01/2024 | (100) | (359,400 | ) | (500 | ) | |||||||
Exercise Price: $35.00, Expiration: 03/08/2024 | (50) | (182,000 | ) | (750 | ) | |||||||
Exercise Price: $35.00, Expiration: 03/15/2024 | (50) | (182,000 | ) | (1,250 | ) | |||||||
(13,643 | ) | |||||||||||
Total Written Options (Premiums received $161,203) | $ | (143,088 | ) |
(a) | Non-income producing security. |
(b) | 100 shares per contract. |
Investment Valuation
The following is a summary of the Fund’s pricing procedures. It is intended to be a general discussion and may not necessarily reflect all the pricing procedures followed by the Fund.
Equity securities, including common stocks, preferred stocks, and real estate investment trusts (“REITS”) that are traded on a national securities exchange, except those listed on the Nasdaq Global Market®, Nasdaq Global Select Market® and the Nasdaq Capital Market® exchanges (collectively “Nasdaq”), are valued at the last reported sale price on that exchange on which the security is principally traded. Securities traded on Nasdaq will be valued at the Nasdaq Official Closing Price (“NOCP”). If, on a particular day, an exchange traded or Nasdaq security does not trade, then the mean between the most recent quoted bid and asked prices will be used. All equity securities that are not traded on a listed exchange are valued at the last sale price in the over-the-counter (“OTC”) market. If a non-exchanged traded equity security does not trade on a particular day, then the mean between the last quoted closing bid and asked price will be used. 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.
In the case of foreign securities, the occurrence of events after the close of foreign markets, but prior to the time the Fund’s NAV is calculated will result in an adjustment to the trading prices of foreign securities when foreign markets open on the following business day. The Fund will value foreign securities at fair value, taking into account such events in calculating the NAV. In such cases, use of fair valuation can reduce an investor’s ability to seek profit by estimating the Fund’s NAV in advance of the time the NAV is calculated. These securities are categorized in Level 2 of the fair value hierarchy.
Investments in registered open-end investment companies (including money market funds), other than exchange-traded funds, are typically valued at their reported NAV per share. To the extent these securities are valued at their NAV per share, they are categorized in Level 1 of the fair value hierarchy.
Exchange traded options and Flexible Exchange® options (“FLEX options”) are valued at the composite mean price, which calculates the mean of the highest bid price and lowest ask price across the exchanges where the option is principally traded. If the composite mean price is not available, the last sale or settlement price maybe be used. For non-exchange traded options, models such as Black-Scholes can be used to value the options. On the last trading day prior to expiration, expiring options may be priced at intrinsic value. These securities are categorized in Level 2 of the fair value hierarchy.
The Board of Trustees (the "Board”) has adopted a pricing and valuation policy for use by the Fund and its Valuation Designee (as defined below) in calculating the Fund’s NAV. Pursuant to Rule 2a-5 under the 1940 Act, the Fund has designated the Adviser as its “Valuation Designee” to perform all of the fair value determinations as well as to perform all of the responsibilities that may be performed by the Valuation Designee in accordance with Rule 2a-5. The Valuation Designee is authorized to make all necessary determinations of the fair values of the portfolio securities and other assets for which market quotations are not readily available or if it is deemed that the prices obtained from brokers and dealers or independent pricing services are unreliable.
The Fund has adopted authoritative fair value accounting standards which establish an authoritative definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value, a discussion in changes in valuation techniques and related inputs during the period and expanded disclosure of valuation levels for major security types. These inputs are summarized in the three broad levels listed below:
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 relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following table is a summary of the inputs used to value the Fund’s securities by level within the fair value hierarchy as of February 29, 2024:
InfraCap Equity Income Fund ETF | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments at Fair Value | ||||||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 50,130,572 | $ | – | $ | – | $ | 50,130,572 | ||||||||
Preferred Stocks | 12,901,451 | – | – | 12,901,451 | ||||||||||||
Convertible Preferred Stocks | 3,240,033 | – | – | 3,240,033 | ||||||||||||
Money Market Funds | 17,848 | – | – | 17,848 | ||||||||||||
$ | 66,289,904 | $ | – | $ | – | $ | 66,289,904 | |||||||||
Liabilities | ||||||||||||||||
Written Options | $ | – | $ | (143,088 | ) | $ | – | $ | (143,088 | ) | ||||||
$ | – | $ | (143,088 | ) | $ | – | $ | (143,088 | ) |
For the period ended February 29, 2024, there were no transfers into or out of Level 3 securities. Refer to the Schedule of Investments for further information on the classification of investments.