UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number (811-23377)
Tidal ETF Trust
(Exact name of registrant as specified in charter)
234 West Florida Street, Suite 203
Milwaukee, Wisconsin 53204
(Address of principal executive offices) (Zip code)
Eric W. Falkeis
Tidal ETF Trust
234 West Florida Street, Suite 203
Milwaukee, Wisconsin 53204
(Name and address of agent for service)
(844) 986-7676
Registrant's telephone number, including area code
Date of fiscal year end: August 31
Date of reporting period: August 31, 2022
Item 1. Reports to Stockholders.
(a) |
Adasina Social Justice All Cap Global ETF
Ticker: JSTC
Annual Report
August 31, 2022
Adasina Social Justice All Cap Global ETF
TABLE OF CONTENTS |
| 1 | |
| 3 | |
| 4 | |
| 6 | |
| 15 | |
| 16 | |
| 17 | |
| 18 | |
| 19 | |
| 27 | |
| 28 | |
| 29 | |
| 31 |
This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
1 |
Adasina Social Justice All Cap Global ETF
In December 2020, we launched the Adasina Social Justice All Cap Global ETF (the “Fund”) as a core public equities strategy for investors with social justice values. The Fund is a highly diversified, global, all-cap portfolio that allows investors to align their investment portfolios with social justice values. The Fund uses community-sourced impact data to set the standards for how publicly-traded companies participate in gender, racial, economic, and climate justice.
The Fund is actively-managed and seeks to invest its assets in a way that substantially replicates the Adasina Social Justice Index (the “Index”). The Index is designed to support progressive movements for change and includes a global universe of public companies whose practices align with social justice values. In addition to the metrics traditionally considered for environmental, social, and governance (“ESG”) investing, the Fund screens companies based on the Adasina Social Justice Investment Criteria.
Fund Updates
Since its inception, the Fund has continued to grow in visibility and demand, resulting in continued asset growth. We are pleased to share updates on the performance and trajectory of the Fund as we look into 2023 and beyond. The information presented in this report relates to the performance period starting September 1, 2021, through August 31, 2022 (the “Current Fiscal Period”).
Over a trailing 1 year period, the Fund generated a total return of -17.06% (NAV) and -17.05% (Market). This compares to -15.81% total return of the Index, and -16.22% total return of the Dow Jones Global Index, for the same period. Deviations between market price and NAV are often primarily driven by the amount and timing of trading volume on any given day, and, as such, there may be deviations in the short-term based on that factor alone. However, the Fund is expected to have a healthy, growing, daily volume as the track record is built, so we believe that market price and NAV will converge over longer periods. We expect some deviation regardless of trading volume given that the fund holds significant foreign securities, whose markets are closed when the NAV is calculated each day domestically.
From a sector perspective, based on performance attribution to the overall portfolio, there were no positive sector contributors for the Current Fiscal Period. Information Technology, Consumer Discretionary, and Financials were the leading detractors. Further, reviewing individual stocks based on the Current Fiscal Period performance attribution to the overall portfolio, leading contributors included Bristol-Myers Squibb Company, McKesson Corporation, and W.W. Grainger, Inc. Conversely, the leading detractors included Adobe, Inc., Advanced Micro Devices, Inc., and Intuitive Surgical, Inc.
Looking Ahead
As we continue into the new fiscal year, we are excited to see the continued growth of the Fund, and to expand our partnerships with financial advisors and other investors.
Since inception, Robasciotti & Associates, Inc., doing business as Adasina Social Capital (“Adasina”) and the Fund have secured increased visibility and industry engagement via top-tier media coverage and conference participation. Following the momentum we have established this fiscal period, we look forward to an increasing amount of assets as we enter the new year.
Beyond the Fund, Adasina also continues our larger strategy for social change. To create positive social change, we know that we need to scale our impact well beyond our own portfolio and into the broader financial ecosystem.
Adasina aims to have an impact by not only divesting from harmful industries, but by organizing other investors to join us in collectively advocating for companies to align their practices with racial, gender, economic, and climate justice movements. As we use investor mobilization and other tools to advance our goals, we look to several indicators for progress and continue to evaluate the most impactful metrics for social justice.
We deeply value our relationship with our shareholders and thank you for the assets you have entrusted to us. For any questions about the Fund, please contact your financial advisor or one of our shareholder associates at (833) 743-0080. You may also visit our website at www.adasinaetf.com or reach us via email at invest@adasina.com.
2 |
Adasina Social Justice All Cap Global ETF
DISCLOSURES:
Before investing, you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information are in the Fund’s prospectus. The Fund’s prospectus may be obtained by clicking https://www.adasinaetf.com/. Please read the prospectus carefully before you invest.
Past performance does not guarantee future results.
A fund’s net asset value (“NAV”) per share is the sum of all its assets, less any liabilities, divided by the number of shares outstanding. The market price is the most recent price at which the fund was traded.
As with all exchange-traded funds (“ETFs”), Fund shares may be bought and sold in the secondary market at market prices. The market price normally should approximate the Fund’s NAV per share, but the market price may sometimes be higher or lower than the NAV. The Fund is newer with a limited operating history. A limited number of financial institutions are authorized to buy and sell shares directly with the Fund, and there may be a limited number of other liquidity providers in the marketplace. There is no assurance that Fund shares will trade at any volume, or at all, on any stock exchange. Low trading activity may result in shares trading at a material discount to NAV. Investors buy and sell ETF shares through a brokerage account or an investment advisor. Like ordinary stocks, brokerage commissions, and/or transaction costs or services fees may apply. Please consult your broker or financial advisor for their fee schedule.
There is no guarantee that the Fund’s investment strategy will be successful. A high portfolio turnover rate increases transaction costs, which may increase the Fund’s expenses. You can lose money on your investment in the Fund. Diversification does not ensure profit or protect against loss in declining markets. Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility, and limited regulation. Investing in emerging markets involves different and greater risks, as these countries are substantially smaller, less liquid, and more volatile than securities markets in more developed markets.
The Dow Jones Global Index aims to provide 95% market capitalization coverage of stocks globally, including developed and emerging regions.
Fund holdings and sector allocations are subject to change and should not be considered a recommendation to buy or sell any security. For a complete list of portfolio holdings, please refer to the Schedule of Investments provided in this report for a complete list of portfolio holdings.
Shares of the Fund are distributed by Foreside Fund Services, LLC.
3 |
Adasina Social Justice All Cap Global ETF
Total Returns for the periods ended August 31, 2022: | | 1 Year | | Since Inception (12/8/2020) (Annualized) | | Ending Value |
Adasina Social Justice All Cap Global ETF - NAV | | -17.06% | | -0.64% | | $9,890 |
Adasina Social Justice All Cap Global ETF - Market | | -17.05% | | -0.47% | | 9,919 |
Adasina Social Justice Index(1) | | -15.81% | | 0.75% | | 10,131 |
Dow Jones Global Index | | -16.22% | | -0.42% | | 9,927 |
(1) The Fund is an actively-managed exchange-traded fund that seeks to invest its assets to achieve returns similar to those of the Adasina Social Justice Index.
This chart illustrates the performance of a hypothetical $10,000 investment made on December 8, 2020 (commencement of operations), and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains, dividends, and return of capital, if applicable, for a fund and dividends for an index.
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling (833) 743-0080. The Fund’s expense ratio is 0.89% (as of the Fund’s most recently filed Prospectus).
4 |
Adasina Social Justice All Cap Global ETF
Sector/Security Type | % of |
Consumer, Non-cyclical | 26.4% |
Financials | 20.3 |
Technology | 15.5 |
Industrial | 13.3 |
Consumer, Cyclical | 11.7 |
Communications | 9.5 |
Utilities | 1.4 |
Basic Materials | 1.3 |
Cash & Cash Equivalents(1) | 0.5 |
Energy | 0.1 |
Holding Companies | 0.0(2) |
Total | 100.0% |
PORTFOLIO DIVERSIFICATION at August 31, 2022 (Unaudited) |
Country | % of Total Net Assets | |
United States | 56.2 | % |
Japan | 7.3 | |
Canada | 4.7 | |
Switzerland | 3.4 | |
Britain | 3.2 | |
China | 2.7 | |
Singapore | 2.3 | |
Netherlands | 1.9 | |
Brazil | 1.7 | |
South Korea | 1.5 | |
Norway | 1.4 | |
Spain | 1.2 | |
Germany | 1.1 | |
Indonesia | 1.0 | |
Taiwan | 1.0 | |
Sweden | 0.9 | |
Hong Kong | 0.8 | |
Italy | 0.8 | |
Ireland | 0.6 | |
Australia | 0.5 | |
Belgium | 0.5 | |
5 |
Adasina Social Justice All Cap Global ETF
Country | % of Total Net Assets | |
France | 0.5 | % |
South Africa | 0.5 | |
Thailand | 0.5 | |
Cash & Cash Equivalents(1) | 0.5 | |
Denmark | 0.4 | |
Finland | 0.4 | |
Austria | 0.3 | |
Mexico | 0.3 | |
Bermuda | 0.2 | |
Israel | 0.2 | |
Peru | 0.2 | |
Philippines | 0.2 | |
Puerto Rico | 0.2 | |
Turkey | 0.1 | |
Chile | 0.1 | |
Colombia | 0.1 | |
India | 0.1 | |
Malaysia | 0.1 | |
New Zealand | 0.1 | |
Poland | 0.1 | |
Portugal | 0.1 | |
Uruguay | 0.1 |
|
Total | 100.0 | % |
(1)Represents cash, money market funds, investments purchased with collateral from securities lending and liabilities in excess of other assets.
(2)Does not round to 0.1% or (0.1)%, as applicable.
Adasina Social Justice All Cap Global ETF
6 | The accompanying notes are an integral part of these financial statements. |
|
| Shares |
| Value | |
Common Stocks – 99.5% | | | | | |
Advertising – 1.0% | | | | | |
DKSH Holding AG | | 753 | | $56,131 | |
The Interpublic Group of | | 29,840 | | 824,777 | |
IPSOS | | 1,222 | | 55,725 | |
Stroeer SE & Co. KGaA | | 418 | | 17,805 | |
| | | | 954,438 | |
Aerospace & Defense – 0.2% | | | | | |
Barnes Group, Inc. | | 5,191 | | 161,181 | |
Agriculture – 0.5% | | | | | |
Darling Ingredients, Inc.(1) | | 6,618 | | 503,365 | |
Apparel – 0.0%(3) | | | | | |
LPP S.A. | | 13 | | 23,521 | |
Auto Manufacturers – 0.6% | | | | | |
Autoneum Holding AG | | 185 | | 20,776 | |
BAIC Motor Corp. Ltd. | | 78,767 | | 21,777 | |
Geely Automobile Holdings Ltd. | | 186,260 | | 377,321 | |
Isuzu Motors Ltd. | | 7,766 | | 96,973 | |
Tofas Turk Otomobil Fabrikasi AS | | 6,327 | | 30,723 | |
| | | | 547,570 | |
Auto Parts & Equipment – 2.3% | | | | | |
Aisin Corp. | | 1,064 | | 31,891 | |
Contemporary Amperex Technology | | 443 | | 31,037 | |
Denso Corp. | | 12,654 | | 698,401 | |
Dorman Products, Inc.(1) | | 366 | | 33,178 | |
Fox Factory Holding Corp.(1) | | 459 | | 42,784 | |
Magna International, Inc. | | 22,164 | | 1,284,043 | |
Sumitomo Electric Industries Ltd. | | 7,419 | | 85,763 | |
Visteon Corp.(1) | | 417 | | 49,969 | |
| | | | 2,257,066 | |
Banks – 7.4% | | | | | |
Absa Group Ltd. | | 2,558 | | 26,717 | |
Associated Banc – Corp | | 3,266 | | 65,451 | |
Banco Bradesco SA – ADR | | 72,178 | | 262,006 | |
Banco do Brasil SA | | 51,685 | | 416,692 | |
Bancolombia SA – ADR | | 2,321 | | 63,711 | |
Bank Mandiri Persero Tbk PT | | 274,660 | | 163,769 | |
Bank Negara Indonesia Persero Tbk PT | | 53,820 | | 30,912 | |
Bank OZK | | 1,077 | | 43,651 | |
Bank Rakyat Indonesia Persero Tbk PT | | 711,984 | | 208,187 | |
BankUnited, Inc.(2) | | 1,407 | | 52,129 | |
Banner Corp. | | 1,404 | | 85,307 | |
Canadian Western Bank | | 936 | | 17,504 | |
Cathay General Bancorp | | 915 | | 38,375 |
|
| Shares |
| Value | |
Banks – 7.4% (Continued) | | | | | |
Community Trust Bancorp, Inc. | | 1,633 | | $68,994 | |
Credicorp Ltd. | | 1,627 | | 209,704 | |
DBS Group Holdings Ltd. | | 16,185 | | 378,203 | |
DNB Bank ASA | | 16,674 | | 319,227 | |
East West Bancorp, Inc. | | 8,275 | | 597,207 | |
Erste Group Bank AG | | 7,159 | | 161,828 | |
First BanCorp | | 3,380 | | 48,334 | |
First Commonwealth Financial Corp. | | 6,102 | | 82,255 | |
First Financial Bancorp | | 3,812 | | 82,263 | |
First Hawaiian, Inc. | | 2,112 | | 54,299 | |
Glacier Bancorp, Inc. | | 726 | | 36,794 | |
Hana Financial Group, Inc. | | 12,268 | | 360,001 | |
Home Capital Group, Inc. | | 2,560 | | 54,617 | |
Hope Bancorp, Inc. | | 7,282 | | 105,371 | |
Independent Bank Group, Inc. | | 465 | | 31,322 | |
Industrial Bank of Korea | | 2,847 | | 20,370 | |
Itau Unibanco Holding SA – ADR(2) | | 54,503 | | 269,245 | |
Japan Post Bank Co. Ltd. | | 3,804 | | 27,825 | |
Laurentian Bank of Canada | | 2,521 | | 69,262 | |
Oversea–Chinese Banking Corp. Ltd. | | 46,551 | | 403,413 | |
PacWest Bancorp | | 1,428 | | 37,599 | |
Paragon Banking Group PLC | | 4,786 | | 29,906 | |
Popular, Inc. | | 1,107 | | 85,483 | |
Prosperity Bancshares, Inc. | | 822 | | 58,263 | |
Renasant Corp. | | 1,803 | | 60,112 | |
S&T Bancorp, Inc. | | 1,813 | | 53,737 | |
Sandy Spring Bancorp, Inc.(2) | | 2,263 | | 87,171 | |
SCB X PCL – NVDR | | 110,047 | | 333,499 | |
Signature Bank | | 1,569 | | 273,571 | |
Simmons First National Corp. | | 1,222 | | 28,827 | |
SouthState Corp. | | 363 | | 28,329 | |
SpareBank 1 SR–Bank ASA | | 3,320 | | 38,070 | |
Stock Yards Bancorp, Inc. | | 644 | | 42,671 | |
SVB Financial Group(1) | | 863 | | 350,827 | |
Trustmark Corp. | | 2,751 | | 86,767 | |
United Bankshares, Inc.(2) | | 1,039 | | 38,547 | |
United Overseas Bank Ltd. | | 13,668 | | 267,756 | |
Walker & Dunlop, Inc. | | 507 | | 50,933 | |
Washington Trust Bancorp, Inc. | | 1,373 | | 69,515 | |
WesBanco, Inc. | | 2,349 | | 80,359 | |
Westamerica BanCorp | | 757 | | 42,354 | |
Western Alliance Bancorp(2) | | 595 | | 45,648 | |
Wintrust Financial Corp. | | 872 | | 73,544 | |
| | | | 7,118,433 | |
Beverages – 1.2% | | | | | |
Asahi Group Holdings Ltd. | | 4,993 | | 168,312 | |
C&C Group PLC(1) | | 14,728 | | 29,477 | |
Carlsberg AS – Class B | | 932 | | 121,699 | |
Adasina Social Justice All Cap Global ETF
The accompanying notes are an integral part of these financial statements. | 7 |
SCHEDULE OF INVESTMENTS at August 31, 2022 (Continued) |
|
| Shares |
| Value | |
Beverages – 1.2% (Continued) | | | | | |
Distell Group Holdings Ltd. | | 2,592 | | $26,157 | |
Kirin Holdings Co. Ltd. | | 2,619 | | 43,349 | |
Kweichow Moutai Co. Ltd. | | 1,000 | | 279,085 | |
Lotte Chilsung Beverage Co. Ltd. | | 149 | | 17,211 | |
Luzhou Laojiao Co. Ltd. | | 1,000 | | 33,972 | |
Remy Cointreau SA | | 279 | | 51,986 | |
Tsingtao Brewery Co. Ltd. | | 17,175 | | 167,399 | |
Vina Concha y Toro SA | | 13,614 | | 16,634 | |
Wuliangye Yibin Co. Ltd. | | 7,100 | | 172,187 | |
| | | | 1,127,468 | |
Biotechnology – 2.6% | | | | | |
BioCryst Pharmaceuticals, Inc.(1) | | 2,510 | | 34,889 | |
Biogen, Inc.(1)(2) | | 2,971 | | 580,474 | |
BioMarin Pharmaceutical, Inc.(1) | | 2,694 | | 240,305 | |
ChemoCentryx, Inc.(1) | | 1,305 | | 66,529 | |
Halozyme Therapeutics, Inc.(1)(2) | | 1,015 | | 41,341 | |
Incyte Corp.(1) | | 2,733 | | 192,485 | |
Innoviva, Inc.(1)(2) | | 3,854 | | 50,719 | |
Ionis Pharmaceuticals, Inc.(1) | | 811 | | 34,484 | |
Ligand Pharmaceuticals, Inc.(1)(2) | | 299 | | 27,625 | |
Maravai LifeSciences Holdings, Inc.(1)(2) | | 927 | | 19,346 | |
Royalty Pharma PLC | | 13,879 | | 580,281 | |
Seagen, Inc.(1) | | 1,056 | | 162,930 | |
Vertex Pharmaceuticals, Inc.(1) | | 1,599 | | 450,534 | |
Xencor, Inc.(1) | | 1,197 | | 31,589 | |
| | | | 2,513,531 | |
Building Materials – 0.6% | | | | | |
American Woodmark Corp.(1) | | 901 | | 46,699 | |
Apogee Enterprises, Inc. | | 2,867 | | 117,088 | |
The AZEK Co., Inc.(1) | | 2,367 | | 43,198 | |
Forbo Holding AG | | 30 | | 37,564 | |
Geberit AG | | 532 | | 246,880 | |
Investment AB Latour | | 1,570 | | 31,154 | |
Lixil Corp. | | 3,009 | | 52,941 | |
| | | | 575,524 | |
Chemicals – 1.2% | | | | | |
DIC Corp. | | 1,242 | | 22,443 | |
Ecopro Co. Ltd. | | 630 | | 54,119 | |
Foosung Co. Ltd. | | 2,842 | | 34,421 | |
HB Fuller Co. | | 2,778 | | 180,181 | |
Kansai Paint Co. Ltd. | | 1,853 | | 28,712 | |
KCC Corporation | | 161 | | 35,449 | |
Nippon Paint Holdings Co. Ltd. | | 33,717 | | 264,142 | |
Nitto Denko Corp. | | 5,778 | | 359,289 | |
Sensient Technologies Corp. | | 2,118 | | 168,741 | |
Sumitomo Bakelite Co. Ltd. | | 750 | | 23,914 | |
TKG Huchems Co., Ltd. | | 1,608 | | 25,607 | |
| | | | 1,197,018 |
|
| Shares |
| Value | |
Commercial Services – 8.6% | | | | | |
Adecco Group AG | | 2,025 | | $64,426 | |
ALD SA | | 7,931 | | 86,609 | |
Applus Services, S.A. | | 3,481 | | 23,295 | |
ASGN, Inc.(1)(2) | | 833 | | 80,551 | |
Automatic Data Processing, Inc. | | 5,100 | | 1,246,491 | |
The Bidvest Group Ltd. | | 3,136 | | 39,549 | |
Boyd Group Services, Inc. | | 418 | | 57,772 | |
Bravida Holding AB | | 5,970 | | 54,292 | |
CBIZ, Inc.(1) | | 1,620 | | 70,729 | |
Cielo SA(1) | | 49,375 | | 52,510 | |
CorVel Corp.(1) | | 293 | | 45,526 | |
Deluxe Corp. | | 2,253 | | 43,348 | |
Driven Brands Holdings, Inc.(1) | | 1,586 | | 49,848 | |
Dun & Bradstreet Holdings, Inc. | | 2,545 | | 36,266 | |
Edenred | | 608 | | 30,874 | |
Elis SA | | 1,630 | | 20,931 | |
Euromoney Institutional Investor PLC | | 2,141 | | 36,173 | |
EVERTEC, Inc. | | 2,197 | | 73,819 | |
Forrester Research, Inc.(1) | | 1,635 | | 68,000 | |
FTI Consulting, Inc.(1) | | 578 | | 92,827 | |
Gartner, Inc.(1) | | 1,509 | | 430,548 | |
Global Payments, Inc. | | 5,440 | | 675,811 | |
Huron Consulting Group, Inc.(1) | | 1,394 | | 93,259 | |
Insperity, Inc. | | 473 | | 51,567 | |
Jiangsu Expressway Co. Ltd. | | 41,093 | | 35,235 | |
Korn Ferry | | 1,195 | | 72,799 | |
Localiza Rent a Car SA | | 7,915 | | 93,205 | |
Medifast, Inc. | | 163 | | 20,453 | |
Monro, Inc. | | 1,324 | | 61,314 | |
Moody’s Corp. | | 2,490 | | 708,455 | |
Movida Participacoes SA | | 13,907 | | 37,230 | |
Pagegroup PLC | | 5,920 | | 29,910 | |
PROG Holdings, Inc.(1) | | 1,528 | | 28,329 | |
Progyny, Inc.(1) | | 1,182 | | 47,528 | |
Promotora y Operadora de Infraestructura SAB de CV | | 7,014 | | 49,435 | |
Robert Half International, Inc. | | 6,588 | | 507,078 | |
S&P Global, Inc. | | 2,524 | | 888,902 | |
Savills PLC | | 5,226 | | 57,648 | |
Shanghai International Port Group | | 366,900 | | 287,923 | |
Shenzhen Internaional Holdings Limited | | 30,859 | | 26,657 | |
Shift4 Payments, Inc.(1)(2) | | 675 | | 30,571 | |
Sichuan Expressway Co. Ltd. | | 41,300 | | 23,424 | |
TriNet Group, Inc.(1) | | 638 | | 52,571 | |
Triton International Ltd | | 2,220 | | 132,290 | |
United Rentals, Inc.(1) | | 3,123 | | 912,041 | |
Verisk Analytics, Inc. | | 2,537 | | 474,825 | |
Westports Holdings Berhad | | 23,273 | | 18,096 | |
Adasina Social Justice All Cap Global ETF
8 | The accompanying notes are an integral part of these financial statements. |
SCHEDULE OF INVESTMENTS at August 31, 2022 (Continued) |
|
| Shares |
| Value | |
Commercial Services – 8.6% (Continued) | | | | ||
Worldline SA(1) | | 2,846 | | $122,456 | |
Zhejiang Expressway Co. Ltd. | | 66,282 | | 50,500 | |
| | | | 8,293,896 | |
Computers – 3.4% | | | | | |
Amdocs Ltd. | | 7,331 | | 626,581 | |
CyberArk Software Ltd.(1) | | 428 | | 61,752 | |
EPAM Systems, Inc.(1)(2) | | 1,068 | | 455,502 | |
ExlService Holdings, Inc.(1)(2) | | 747 | | 125,279 | |
FDM Group Holdings PLC | | 2,602 | | 23,041 | |
Fortinet, Inc.(1) | | 4,473 | | 217,790 | |
Genpact Ltd. | | 3,620 | | 170,068 | |
Insight Enterprises, Inc.(1)(2) | | 992 | | 90,391 | |
Jenoptik AG | | 974 | | 20,665 | |
Logitech International SA(1) | | 2,228 | | 111,543 | |
Nagarro SE(1) | | 236 | | 23,826 | |
NetApp, Inc. | | 14,744 | | 1,063,485 | |
NetScout Systems, Inc.(1) | | 2,485 | | 78,874 | |
Pure Storage, Inc.(1)(2) | | 2,643 | | 76,568 | |
Sopra Steria Group SACA | | 188 | | 26,088 | |
Tenable Holdings, Inc.(1) | | 673 | | 26,657 | |
TTEC Holdings, Inc. | | 713 | | 37,326 | |
Varonis Systems, Inc.(1) | | 887 | | 24,259 | |
Wipro Ltd. – ADR | | 12,012 | | 60,180 | |
| | | | 3,319,875 | |
Cosmetics & Personal Care – 0.2% | | | | | |
Beiersdorf AG | | 1,149 | | 116,231 | |
Kao Corp. | | 1,669 | | 72,900 | |
| | | | 189,131 | |
Distribution & Wholesale – 3.4% | | | | | |
Bossard Holding AG | | 187 | | 37,325 | |
Bunzl PLC | | 6,940 | | 231,037 | |
Dicker Data Ltd. | | 2,641 | | 20,477 | |
Hakuto Co. Ltd. | | 4,046 | | 97,046 | |
Hubei Xingfa Chemicals Group Co. Ltd. | | 7,800 | | 43,730 | |
IAA, Inc.(1) | | 1,934 | | 72,061 | |
IMCD NV | | 643 | | 89,097 | |
KAR Auction Services, Inc.(1) | | 4,121 | | 60,167 | |
Leslie’s, Inc.(1) | | 1,803 | | 25,566 | |
Nagase & Co. Ltd. | | 1,811 | | 26,206 | |
Pool Corp.(2) | | 1,240 | | 420,596 | |
RS GROUP PLC | | 1,731 | | 21,874 | |
ScanSource, Inc.(1) | | 2,086 | | 60,431 | |
Toromont Industries Ltd. | | 2,152 | | 167,053 | |
W.W. Grainger, Inc. | | 3,473 | | 1,927,307 | |
| | | | 3,299,973 |
|
| Shares |
| Value | |
Diversified Financial Services – 2.4% | | | | | |
Affiliated Managers Group, Inc. | | 469 | | $59,732 | |
Air Lease Corp. | | 1,650 | | 59,994 | |
American Express Co. | | 3,518 | | 534,736 | |
Amundi SA | | 571 | | 29,110 | |
Artisan Partners Asset Management, Inc. | | 1,713 | | 57,831 | |
Blucora, Inc.(1) | | 1,625 | | 32,630 | |
Brightsphere Investment Group, Inc. | | 1,951 | | 33,343 | |
Evercore, Inc. | | 485 | | 45,440 | |
First National Financial Corp. | | 2,722 | | 77,299 | |
Hong Kong Exchanges & Clearing Ltd. | | 986 | | 39,923 | |
IGM Financial, Inc. | | 2,468 | | 67,373 | |
Mastercard, Inc. | | 3,352 | | 1,087,288 | |
PennyMac Financial Services, Inc. | | 484 | | 25,710 | |
Piper Sandler Companies | | 162 | | 18,560 | |
Sanlam Ltd. | | 8,562 | | 26,785 | |
Stifel Financial Corp.(2) | | 1,137 | | 67,435 | |
Virtus Investment Partners, Inc. | | 276 | | 52,785 | |
| | | | 2,315,974 | |
Electric – 0.7% | | | | | |
CECEP Wind–Power Corp. | | 58,300 | | 42,199 | |
China Yangtze Power Co. Ltd. | | 28,100 | | 97,744 | |
Encavis AG | | 2,297 | | 49,313 | |
Greenvolt–Energias Renovaveis SA(1) | | 8,450 | | 81,910 | |
Ningbo Sanxing Electric Co. Ltd. | | 17,200 | | 28,617 | |
Red Electrica Corp. SA | | 16,648 | | 305,261 | |
Sichuan Chuantou Energy Co. Ltd. | | 12,700 | | 24,299 | |
Verbund AG | | 926 | | 88,784 | |
| | | | 718,127 | |
Electrical Components & Equipment – 0.6% | | | | ||
Encore Wire Corp.(2) | | 1,551 | | 201,785 | |
Energizer Holdings, Inc. | | 3,220 | | 90,482 | |
EnerSys | | 1,287 | | 80,270 | |
Eve Energy Co. Ltd. | | 4,700 | | 64,760 | |
Fujikura Ltd. | | 6,110 | | 43,812 | |
LG Innotek Co. Ltd. | | 127 | | 32,663 | |
Novanta, Inc.(1)(2) | | 512 | | 68,449 | |
| | | | 582,221 | |
Electronics – 1.8% | | | | | |
Advanced Energy Industries, Inc.(2) | | 494 | | 44,356 | |
AEM Holdings Ltd. | | 9,711 | | 31,602 | |
Brady Corp. | | 1,377 | | 64,086 | |
Comet Holding AG | | 148 | | 25,841 | |
Dexerials Corp. | | 1,134 | | 32,026 | |
FARO Technologies, Inc.(1) | | 1,403 | | 47,071 | |
MINEBEA MITSUMI, Inc. | | 1,762 | | 30,734 | |
National Instruments Corp.(2) | | 1,882 | | 74,828 | |
Nidec Corp. | | 5,243 | | 352,647 | |
Adasina Social Justice All Cap Global ETF
The accompanying notes are an integral part of these financial statements. | 9 |
|
| Shares |
| Value | |
Electronics – 1.8% (Continued) | | | | | |
SCREEN Holdings Co. Ltd. | | 269 | | $18,202 | |
Sesa SpA | | 278 | | 34,160 | |
Shimadzu Corp. | | 1,176 | | 34,697 | |
Spectris PLC | | 1,012 | | 32,854 | |
TD SYNNEX Corp. | | 838 | | 80,683 | |
TDK Corp. | | 15,995 | | 567,108 | |
Venture Corp. Ltd. | | 4,082 | | 53,516 | |
Vontier Corp.(2) | | 3,585 | | 78,583 | |
Zhejiang Chint Electrics Co. Ltd. | | 29,600 | | 135,807 | |
| | | | 1,738,801 | |
Energy – Alternate Sources – 0.1% | | | | | |
Array Technologies, Inc.(1)(2) | | 2,064 | | 43,138 | |
Landis+Gyr Group AG | | 472 | | 27,615 | |
| | | | 70,753 | |
Engineering & Construction – 1.4% | | | | | |
Aena SME SA(1) | | 2,737 | | 336,731 | |
AFRY AB | | 2,492 | | 33,045 | |
Flughafen Zurich AG | | 229 | | 38,716 | |
Frontdoor, Inc.(1)(2) | | 3,212 | | 75,418 | |
Grupo Aeroportuario del Centro Norte, SAB de CV | | 6,829 | | 44,769 | |
Grupo Aeroportuario del Sureste | | 2,493 | | 52,607 | |
INFRONEER Holdings, Inc. | | 4,383 | | 31,523 | |
Instalco AB | | 4,891 | | 24,581 | |
Jasa Marga Persero Tbk PT | | 165,534 | | 38,365 | |
Kajima Corp. | | 6,774 | | 71,784 | |
NCC AB | | 3,408 | | 32,275 | |
Nishimatsu Construction Co. Ltd. | | 1,986 | | 57,950 | |
Obayashi Corp. | | 10,530 | | 73,378 | |
Shimizu Corp. | | 10,793 | | 59,639 | |
Taisei Corp. | | 2,311 | | 70,601 | |
TAV Havalimanlari Holding AS | | 14,204 | | 48,675 | |
Tekfen Holding AS | | 22,716 | | 37,180 | |
TopBuild Corp.(1)(2) | | 378 | | 69,461 | |
Vantage Towers AG | | 4,356 | | 113,096 | |
| | | | 1,309,794 | |
Entertainment – 0.8% | | | | | |
Evolution AB | | 1,346 | | 108,672 | |
Flutter Entertainment PLC(1) | | 4,320 | | 541,131 | |
International Game Technology PLC | | 5,991 | | 107,479 | |
Kinepolis Group NV | | 499 | | 21,967 | |
| | | | 779,249 | |
Environmental Control – 0.3% | | | | | |
Evoqua Water Technologies Corp.(1) | | 2,563 | | 89,910 | |
Hitachi Zosen Corp. | | 6,971 | | 44,453 | |
Kurita Water Industries Ltd. | | 847 | | 33,361 |
|
| Shares |
| Value | |
Environmental Control – 0.3% (Continued) | | | | ||
Sweco AB – Class B(1) | | 4,841 | | $45,846 | |
Tetra Tech, Inc. | | 830 | | 112,722 | |
| | | | 326,292 | |
Food – 3.2% | | | | | |
Axfood AB – Class B | | 1,912 | | 57,810 | |
B&G Foods, Inc.(2) | | 3,865 | | 83,716 | |
Bid Corp. Ltd. | | 1,670 | | 31,848 | |
Casino Guichard Perrachon SA(1) | | 1,625 | | 21,112 | |
Cencosud SA | | 29,109 | | 40,862 | |
Cia Brasileira de Distribuicao | | 11,372 | | 47,279 | |
George Weston Ltd. | | 11,765 | | 1,348,897 | |
Grocery Outlet Holding Corp.(1) | | 1,473 | | 59,097 | |
J Sainsbury PLC | | 24,128 | | 57,105 | |
Lamb Weston Holdings, Inc. | | 1,726 | | 137,269 | |
Lancaster Colony Corp. | | 542 | | 91,354 | |
Metro, Inc. | | 13,218 | | 697,235 | |
The North West Co., Inc. | | 4,325 | | 112,451 | |
Orkla ASA | | 21,308 | | 179,110 | |
Tingyi Cayman Islands Holding Corp. | | 91,352 | | 162,479 | |
| | | | 3,127,624 | |
Hand & Machine Tools – 0.2% | | | | | |
Disco Corp. | | 138 | | 34,046 | |
Regal Rexnord Corp. | | 882 | | 121,354 | |
Schweiter Technologies AG | | 43 | | 45,205 | |
| | | | 200,605 | |
Healthcare – Products – 5.0% | | | | | |
Align Technology, Inc.(1) | | 928 | | 226,154 | |
AtriCure, Inc.(1) | | 1,147 | | 52,326 | |
Bio–Techne Corp. | | 359 | | 119,120 | |
Cochlear Ltd. | | 148 | | 21,743 | |
CONMED Corp. | | 800 | | 70,856 | |
The Cooper Companies, Inc. | | 773 | | 222,191 | |
Danaher Corp. | | 4,992 | | 1,347,391 | |
Demant A/S(1) | | 1,463 | | 45,198 | |
DENTSPLY SIRONA, Inc. | | 2,713 | | 88,905 | |
Elekta AB(1) | | 3,776 | | 21,754 | |
Envista Holdings Corp.(1)(2) | | 2,973 | | 110,269 | |
Glaukos Corp.(1) | | 1,070 | | 51,948 | |
Haemonetics Corp.(1) | | 779 | | 58,448 | |
Henry Schein, Inc.(1) | | 7,396 | | 542,940 | |
ICU Medical, Inc.(1) | | 510 | | 81,090 | |
IDEXX Laboratories, Inc.(1) | | 627 | | 217,958 | |
Inspire Medical Systems, Inc.(1) | | 146 | | 27,957 | |
Insulet Corp.(1)(2) | | 434 | | 110,874 | |
Intuitive Surgical, Inc.(1) | | 2,055 | | 422,796 | |
Koninklijke Philips NV | | 9,231 | | 154,531 | |
LivaNova PLC(1) | | 708 | | 39,825 | |
SCHEDULE OF INVESTMENTS at August 31, 2022 (Continued) |
Adasina Social Justice All Cap Global ETF
10 | The accompanying notes are an integral part of these financial statements. |
|
| Shares |
| Value | |
Healthcare – Products – 5.0% (Continued) | | | | ||
Masimo Corp.(1) | | 584 | | $85,784 | |
Nevro Corp.(1) | | 550 | | 24,926 | |
NuVasive, Inc.(1) | | 996 | | 42,340 | |
Orthofix Medical, Inc.(1)(2) | | 1,782 | | 35,462 | |
Penumbra, Inc.(1)(2) | | 266 | | 43,669 | |
QIAGEN NV(1) | | 4,371 | | 198,574 | |
Repligen Corp.(1)(2) | | 237 | | 51,991 | |
Tecan Group AG | | 94 | | 34,770 | |
Waters Corp.(1) | | 1,033 | | 308,454 | |
| | | | 4,860,244 | |
Healthcare – Services – 1.7% | | | | | |
The Ensign Group, Inc. | | 971 | | 82,826 | |
Fulgent Genetics, Inc.(1)(2) | | 531 | | 23,083 | |
Hapvida Participacoes e | | 194,404 | | 274,289 | |
Healius Ltd. | | 10,920 | | 27,849 | |
LHC Group, Inc.(1) | | 415 | | 67,010 | |
Medibank Pvt Ltd. | | 64,010 | | 162,803 | |
OPKO Health, Inc.(1)(2) | | 10,400 | | 22,672 | |
Pediatrix Medical Group, Inc.(1) | | 3,545 | | 63,172 | |
Quest Diagnostics, Inc. | | 5,432 | | 680,684 | |
Raffles Medical Group Ltd. | | 33,292 | | 33,170 | |
Spire Healthcare Group PLC(1) | | 12,056 | | 32,616 | |
Wuxi Biologics Cayman, Inc.(1) | | 14,373 | | 127,636 | |
| | | | 1,597,810 | |
Holding Companies – 0.0%(3) | | | | | |
EVENT Hospitality and | | 3,138 | | 31,946 | |
Home Builders – 0.1% | | | | | |
Installed Building Products, Inc.(2) | | 597 | | 54,064 | |
Tri Pointe Homes, Inc.(1) | | 4,991 | | 86,494 | |
| | | | 140,558 | |
Home Furnishings – 0.3% | | | | | |
Arcelik AS | | 7,756 | | 29,946 | |
Coway Co. Ltd. | | 618 | | 29,432 | |
De’ Longhi SpA | | 1,485 | | 26,087 | |
Electrolux AB | | 5,166 | | 65,704 | |
iRobot Corp.(1) | | 657 | | 38,684 | |
Skyworth Group Ltd. | | 69,737 | | 34,829 | |
Sonos, Inc.(1) | | 1,285 | | 19,327 | |
| | | | 244,009 | |
Household Products & Wares – 0.2% | | | | | |
ACCO Brands Corp. | | 13,360 | | 79,225 | |
Reynolds Consumer Products, Inc. | | 3,608 | | 100,771 | |
| | | | 179,996 |
|
| Shares |
| Value | |
Insurance – 9.4% | | | | | |
Admiral Group PLC | | 929 | | $22,939 | |
AIA Group Ltd. | | 33,691 | | 326,014 | |
American Equity Investment Life Holding Co. | | 1,885 | | 71,630 | |
Aon PLC(2) | | 1,784 | | 498,200 | |
Arch Capital Group Ltd.(1) | | 10,972 | | 501,640 | |
Argo Group International Holdings Ltd. | | 1,265 | | 24,832 | |
ASR Nederland NV | | 1,029 | | 42,082 | |
Assicurazioni Generali SpA | | 31,814 | | 468,342 | |
Axis Capital Holdings Ltd. | | 1,741 | | 92,534 | |
Baloise Holding AG | | 292 | | 42,306 | |
Bangkok Life Assurance PCL – NVDR | | 24,399 | | 23,755 | |
Brown & Brown, Inc. | | 441 | | 27,801 | |
Chubb Ltd. | | 6,718 | | 1,270,038 | |
Cincinnati Financial Corp. | | 4,010 | | 388,810 | |
CNO Financial Group, Inc. | | 3,867 | | 71,191 | |
DB Insurance Co. Ltd. | | 620 | | 27,673 | |
Employers Holdings, Inc. | | 3,593 | | 140,702 | |
Essent Group Ltd. | | 950 | | 37,990 | |
Everest Re Group Ltd. | | 1,848 | | 497,204 | |
The Hanover Insurance Group, Inc. | | 1,085 | | 140,388 | |
Helvetia Holding AG | | 285 | | 31,568 | |
Horace Mann Educators Corp. | | 1,901 | | 67,999 | |
iA Financial Corp., Inc. | | 2,178 | | 117,332 | |
Japan Post Holdings Co. Ltd. | | 92,369 | | 640,536 | |
Kemper Corp. | | 957 | | 44,022 | |
Kinsale Capital Group, Inc.(2) | | 140 | | 35,501 | |
Lincoln National Corp. | | 2,535 | | 116,762 | |
Mercury General Corp. | | 953 | | 30,401 | |
Meritz Fire & Marine Insurance Co. Ltd. | | 909 | | 26,063 | |
MGIC Investment Corp. | | 4,041 | | 57,746 | |
Muenchener Rueckversicherungs–Gesellschaft AG in Muenchen | | 841 | | 201,438 | |
NMI Holdings, Inc.(1) | | 1,413 | | 29,009 | |
NN Group NV | | 12,480 | | 514,144 | |
Phoenix Group Holdings PLC | | 7,395 | | 51,836 | |
Porto Seguro SA | | 10,091 | | 41,388 | |
Powszechny Zaklad Ubezpieczen SA | | 7,641 | | 45,854 | |
Primerica, Inc. | | 287 | | 36,377 | |
ProAssurance Corp. | | 1,399 | | 29,925 | |
Reinsurance Group of America, Inc. | | 943 | | 118,214 | |
RenaissanceRe Holdings Ltd. | | 574 | | 77,639 | |
Safety Insurance Group, Inc. | | 737 | | 66,367 | |
SCOR SE | | 2,725 | | 45,239 | |
SiriusPoint Ltd.(1) | | 5,637 | | 25,197 | |
Storebrand ASA | | 11,383 | | 91,553 | |
Swiss Life Holding AG | | 641 | | 336,542 | |
Swiss Re AG | | 7,395 | | 577,234 | |
Talanx AG | | 8,075 | | 286,630 | |
SCHEDULE OF INVESTMENTS at August 31, 2022 (Continued) |
Adasina Social Justice All Cap Global ETF
The accompanying notes are an integral part of these financial statements. | 11 |
|
| Shares |
| Value | |
Insurance – 9.4% (Continued) | | | | | |
Unipol Gruppo SpA | | 14,744 | | $62,031 | |
UnipolSai Assicurazioni SpA | | 27,326 | | 60,891 | |
Unum Group | | 4,278 | | 161,922 | |
White Mountains Insurance Group Ltd. | | 27 | | 36,990 | |
Willis Towers Watson PLC | | 1,717 | | 355,127 | |
| | | | 9,135,548 | |
Internet – 2.3% | | | | | |
Adevinta ASA(1) | | 3,720 | | 30,419 | |
Atea ASA(1) | | 4,888 | | 54,080 | |
Auto Trader Group PLC | | 10,465 | | 79,370 | |
CDW Corp. | | 3,666 | | 625,786 | |
Cogent Communications Holdings, Inc. | | 1,272 | | 67,734 | |
IAC, Inc.(1) | | 691 | | 44,411 | |
Kakao Corp. | | 1,901 | | 104,320 | |
MercadoLibre, Inc.(1) | | 101 | | 86,391 | |
NAVER Corp. | | 498 | | 89,357 | |
Open Lending Corp.(1) | | 1,997 | | 19,391 | |
Perficient, Inc.(1) | | 832 | | 64,979 | |
Q2 Holdings, Inc.(1)(2) | | 486 | | 19,304 | |
Rakuten Group, Inc. | | 25,417 | | 123,945 | |
SEEK Ltd. | | 1,417 | | 20,264 | |
United Internet AG | | 2,190 | | 49,659 | |
VeriSign, Inc.(1) | | 3,505 | | 638,681 | |
Vitec Software Group AB | | 468 | | 17,544 | |
Wix.com Ltd.(1) | | 501 | | 31,708 | |
Z Holdings Corp. | | 30,478 | | 91,242 | |
| | | | 2,258,585 | |
Investment Companies – 0.6% | | | | | |
EXOR NV | | 7,360 | | 445,975 | |
Groupe Bruxelles Lambert SA | | 1,686 | | 128,000 | |
Grupo de Inversiones Suramericana SA | | 4,481 | | 37,483 | |
| | | | 611,458 | |
Leisure Time – 0.1% | | | | | |
Basic–Fit NV(1) | | 1,189 | | 45,576 | |
YETI Holdings, Inc.(1) | | 1,158 | | 42,719 | |
| | | | 88,295 | |
Lodging – 0.9% | | | | | |
BTG Hotels Group Co. Ltd. | | 6,600 | | 20,545 | |
Dalata Hotel Group PLC(1) | | 5,189 | | 18,236 | |
InterContinental Hotels Group PLC | | 12,279 | | 670,244 | |
Kangwon Land, Inc. | | 2,545 | | 50,518 | |
Scandic Hotels Group AB | | 8,826 | | 31,541 | |
Shanghai Jinjiang International Hotels Co. Ltd. | | 3,000 | | 25,118 | |
SKYCITY Entertainment Group Ltd. | | 20,900 | | 36,519 | |
| | | | 852,721 |
|
| Shares |
| Value | |
Machinery – Diversified – 5.7% | | | | | |
Albany International Corp.(2) | | 1,029 | | $90,747 | |
Altra Industrial Motion Corp. | | 705 | | 26,755 | |
Cognex Corp. | | 1,591 | | 66,997 | |
Daifuku Co. Ltd. | | 443 | | 26,172 | |
FANUC Corp. | | 2,349 | | 381,855 | |
Graco, Inc. | | 18,727 | | 1,195,532 | |
Interpump Group SpA | | 1,068 | | 37,953 | |
Kardex Holding AG | | 167 | | 29,432 | |
KION Group AG | | 1,149 | | 46,019 | |
Komax Holding AG | | 134 | | 35,081 | |
Kone Oyj | | 4,913 | | 197,216 | |
NARI Technology Co. Ltd. | | 28,194 | | 112,261 | |
Nordson Corp.(2) | | 6,676 | | 1,516,587 | |
Omron Corp. | | 2,002 | | 106,725 | |
Xylem, Inc. | | 17,111 | | 1,558,812 | |
Yaskawa Electric Corp. | | 1,333 | | 44,041 | |
| | | | 5,472,185 | |
Media – 1.2% | | | | | |
Cable One, Inc. | | 57 | | 64,695 | |
The EW Scripps Co.(1) | | 3,912 | | 58,484 | |
FactSet Research Systems, Inc. | | 226 | | 97,935 | |
ITV PLC | | 48,510 | | 36,295 | |
Metropole Television SA | | 1,392 | | 17,245 | |
ProSiebenSat.1 Media SE | | 4,258 | | 32,977 | |
Seven West Media Ltd.(1) | | 61,990 | | 22,099 | |
Sirius XM Holdings, Inc.(2) | | 133,627 | | 813,788 | |
Television Francaise 1 | | 3,853 | | 24,506 | |
| | | | 1,168,024 | |
Metal Fabricate & Hardware – 0.4% | | | | | |
Helios Technologies, Inc. | | 792 | | 43,259 | |
Martinrea International, Inc. | | 7,826 | | 61,850 | |
MISUMI Group, Inc. | | 1,545 | | 38,451 | |
Mitsui High–tec, Inc. | | 396 | | 24,910 | |
Proto Labs, Inc.(1) | | 578 | | 22,195 | |
SKF AB | | 2,641 | | 39,876 | |
Standex International Corp. | | 1,374 | | 124,223 | |
VAT Group AG | | 227 | | 54,567 | |
| | | | 409,331 | |
Miscellaneous Manufacturers – 0.8% | | | | | |
China Jushi Co. Ltd. | | 9,294 | | 19,427 | |
China Railway Signal & Communication Corp. Ltd. | | 107,607 | | 33,863 | |
ESCO Technologies, Inc. | | 1,738 | | 141,525 | |
Fabrinet(1)(2) | | 358 | | 36,817 | |
Federal Signal Corp. | | 3,288 | | 131,093 | |
Hillenbrand, Inc. | | 2,092 | | 87,174 | |
Indutrade AB | | 1,872 | | 34,893 | |
SCHEDULE OF INVESTMENTS at August 31, 2022 (Continued) |
Adasina Social Justice All Cap Global ETF
12 | The accompanying notes are an integral part of these financial statements. |
|
| Shares |
| Value | |
Miscellaneous Manufacturers – 0.8% (Continued) | | | | ||
John Bean Technologies Corp. | | 333 | | $34,386 | |
Nikon Corp. | | 2,066 | | 23,741 | |
SKC Co. Ltd. | | 523 | | 47,508 | |
Sunny Optical Technology Group | | 15,088 | | 207,418 | |
| | | | 797,845 | |
Office & Business Equipment – 0.1% | | | | | |
Konica Minolta, Inc. | | 8,739 | | 30,448 | |
Ricoh Co. Ltd. | | 3,434 | | 27,175 | |
Seiko Epson Corp. | | 2,194 | | 34,756 | |
| | | | 92,379 | |
Packaging & Containers – 0.2% | | | | | |
AptarGroup, Inc. | | 1,280 | | 131,597 | |
TriMas Corp. | | 3,342 | | 91,972 | |
| | | | 223,569 | |
Pharmaceuticals – 3.3% | | | | | |
Alector, Inc.(1) | | 2,002 | | 20,721 | |
Amneal Pharmaceuticals, Inc.(1) | | 10,540 | | 22,872 | |
AstraZeneca PLC | | 4,076 | | 504,828 | |
Bausch Health Companies, Inc.(1) | | 6,031 | | 36,289 | |
Celltrion, Inc. | | 615 | | 87,131 | |
Ironwood Pharmaceuticals, Inc.(1)(2) | | 4,726 | | 50,852 | |
Merck & Co., Inc. | | 19,811 | | 1,691,067 | |
Neurocrine Biosciences, Inc.(1)(2) | | 678 | | 70,939 | |
Option Care Health, Inc.(1) | | 2,134 | | 66,069 | |
Organon & Co. | | 1,390 | | 39,657 | |
Owens & Minor, Inc.(2) | | 1,402 | | 41,373 | |
Prestige Consumer Healthcare, Inc.(1) | | 1,376 | | 69,598 | |
Recordati Industria Chimica e Farmaceutica SpA | | 1,025 | | 41,990 | |
Shanghai Fosun Pharmaceutical Group Co. Ltd. | | 38,122 | | 123,125 | |
Supernus Pharmaceuticals, Inc.(1) | | 1,800 | | 61,614 | |
UCB SA | | 2,799 | | 197,299 | |
Vifor Pharma AG | | 235 | | 43,511 | |
Zogenix, Inc. - Contingent Value Right(5) | | 5,474 | | — | |
| | | | 3,168,935 | |
Real Estate – 0.1% | | | | | |
Marcus & Millichap, Inc. | | 2,784 | | 104,066 | |
Shenzhen Overseas Chinese Town | | 44,800 | | 34,767 | |
| | | | 138,833 | |
Retail – 2.5% | | | | | |
Alsea SAB de CV(1) | | 32,840 | | 59,599 | |
Americanas SA | | 6,403 | | 20,071 | |
B&M European Value Retail SA | | 5,974 | | 25,713 | |
Bilia AB | | 3,452 | | 43,178 | |
El Puerto de Liverpool SAB de CV | | 12,438 | | 55,523 |
|
| Shares |
| Value | |
Retail – 2.5% (Continued) | | | | | |
Fast Retailing Co. Ltd. | | 582 | | $344,057 | |
Food & Life Companies Ltd. | | 1,596 | | 25,456 | |
GRUPO DE MODA SOMA SA | | 11,984 | | 31,273 | |
Hornbach Holding AG & Co. KGaA | | 385 | | 27,196 | |
Hotel Shilla Co. Ltd. | | 377 | | 20,801 | |
Inchcape PLC | | 6,869 | | 60,745 | |
Industria de Diseno Textil SA | | 24,138 | | 523,061 | |
Isetan Mitsukoshi Holdings Ltd. | | 3,857 | | 30,661 | |
Jack in the Box, Inc. | | 1,419 | | 113,321 | |
JB Hi–Fi Ltd. | | 992 | | 27,672 | |
Jollibee Foods Corp. | | 12,476 | | 53,232 | |
Kingfisher PLC | | 20,246 | | 54,679 | |
Lojas Renner SA(1) | | 14,942 | | 76,772 | |
Lotte Shopping Co. Ltd. | | 568 | | 41,956 | |
Marui Group Co. Ltd. | | 1,363 | | 24,659 | |
Matahari Department Store Tbk PT | | 98,321 | | 25,371 | |
National Vision Holdings, Inc.(1)(2) | | 1,457 | | 48,416 | |
Next PLC | | 4,111 | | 278,021 | |
Pepkor Holdings Ltd. | | 29,463 | | 34,762 | |
Shake Shack, Inc. – Class A(1) | | 1,064 | | 50,710 | |
Shanghai Pharmaceuticals Holding | | 67,433 | | 98,286 | |
Skylark Holdings Co. Ltd. | | 3,798 | | 42,028 | |
Watches of Switzerland Group PLC(1) | | 1,949 | | 17,791 | |
Wickes Group PLC | | 8,554 | | 11,885 | |
Zamp SA(1) | | 14,719 | | 22,160 | |
Zensho Holdings Co. Ltd. | | 1,997 | | 52,653 | |
Zhongsheng Group Holdings Ltd. | | 19,468 | | 92,394 | |
| | | | 2,434,102 | |
Savings & Loans – 0.4% | | | | | |
New York Community Bancorp, Inc.(2) | | 6,165 | | 60,355 | |
Northwest Bancshares, Inc. | | 8,935 | | 125,715 | |
Pacific Premier Bancorp, Inc. | | 998 | | 32,695 | |
Provident Financial Services, Inc. | | 4,206 | | 97,705 | |
Washington Federal, Inc. | | 884 | | 28,297 | |
| | | | 344,767 | |
Semiconductors – 3.7% | | | | | |
Advanced Micro Devices, Inc.(1) | | 8,055 | | 683,628 | |
Allegro MicroSystems, Inc.(1)(2) | | 742 | | 17,303 | |
ASM International NV | | 1,057 | | 288,143 | |
BE Semiconductor Industries NV | | 330 | | 15,726 | |
Chunbo Co., Ltd. | | 102 | | 17,318 | |
Cirrus Logic, Inc.(1) | | 920 | | 70,555 | |
Diodes, Inc.(1) | | 803 | | 57,150 | |
Melexis NV | | 355 | | 26,844 | |
NAURA Technology Group Co. Ltd. | | 600 | | 24,543 | |
NVIDIA Corp.(2) | | 7,471 | | 1,127,673 | |
Power Integrations, Inc. | | 637 | | 45,565 | |
SCHEDULE OF INVESTMENTS at August 31, 2022 (Continued) |
Adasina Social Justice All Cap Global ETF
The accompanying notes are an integral part of these financial statements. | 13 |
|
| Shares |
| Value | |
Semiconductors – 3.7% (Continued) | | | | | |
Renesas Electronics Corp.(1) | | 14,207 | | $135,690 | |
SUMCO Corp. | | 2,010 | | 27,694 | |
Taiwan Semiconductor Manufacturing Co. Ltd. – ADR | | 8,830 | | 735,980 | |
u–blox Holding AG | | 400 | | 55,577 | |
United Microelectronics Corp. – ADR(2) | | 32,847 | | 217,776 | |
| | | | 3,547,165 | |
Software – 8.3% | | | | | |
ACI Worldwide, Inc.(1) | | 2,016 | | 47,779 | |
Adobe, Inc.(1) | | 2,491 | | 930,239 | |
ANSYS, Inc.(1) | | 1,458 | | 362,021 | |
Atlassian Corp. PLC(1) | | 710 | | 175,839 | |
Autodesk, Inc.(1) | | 2,313 | | 466,625 | |
Avalara, Inc.(1) | | 540 | | 49,459 | |
Black Knight, Inc.(1) | | 6,759 | | 447,175 | |
Box, Inc. – Class A(1)(2) | | 2,628 | | 67,671 | |
Cadence Design Systems, Inc.(1) | | 2,098 | | 364,569 | |
Cerence, Inc.(1)(2) | | 1,389 | | 27,794 | |
CommVault Systems, Inc.(1) | | 1,191 | | 64,659 | |
Consensus Cloud Solutions, Inc.(1) | | 1,040 | | 52,364 | |
Coupa Software, Inc.(1) | | 430 | | 25,112 | |
CSG Systems International, Inc. | | 2,583 | | 149,427 | |
The Descartes Systems Group, Inc.(1) | | 763 | | 53,904 | |
DocuSign, Inc.(1) | | 3,211 | | 186,944 | |
Evolent Health, Inc.(1) | | 1,362 | | 50,054 | |
Fair Isaac Corp.(1) | | 300 | | 134,820 | |
Five9, Inc.(1)(2) | | 320 | | 31,395 | |
HubSpot, Inc.(1) | | 377 | | 127,064 | |
Jack Henry & Associates, Inc. | | 1,809 | | 347,690 | |
Kinaxis, Inc.(1) | | 167 | | 19,312 | |
Konami Group Corp. | | 765 | | 39,071 | |
LivePerson, Inc.(1) | | 1,560 | | 18,096 | |
Manhattan Associates, Inc.(1) | | 451 | | 63,708 | |
MongoDB, Inc.(1)(2) | | 321 | | 103,638 | |
MSCI, Inc. | | 1,127 | | 506,293 | |
N–able, Inc.(1) | | 2,981 | | 29,691 | |
New Relic, Inc.(1) | | 785 | | 47,657 | |
Open Text Corp. | | 4,774 | | 150,810 | |
Paychex, Inc. | | 6,732 | | 830,325 | |
Playtika Holding Corp.(1) | | 2,250 | | 23,693 | |
Progress Software Corp.(2) | | 1,753 | | 84,372 | |
PROS Holdings, Inc.(1) | | 1,393 | | 29,044 | |
Roper Technologies, Inc. | | 1,856 | | 747,188 | |
The Sage Group PLC | | 10,248 | | 85,285 | |
Sapiens International Corp. NV | | 1,728 | | 38,223 | |
Schrodinger, Inc.(1)(2) | | 1,328 | | 36,440 | |
Sega Sammy Holdings, Inc. | | 4,344 | | 64,960 | |
ServiceNow, Inc.(1) | | 885 | | 384,639 |
|
| Shares |
| Value | |
Software – 8.3% (Continued) | | | | | |
Splunk, Inc.(1) | | 1,515 | | $136,395 | |
SPS Commerce, Inc.(1) | | 358 | | 43,719 | |
Take–Two Interactive Software, Inc.(1) | | 1,344 | | 164,721 | |
Temenos AG | | 472 | | 38,778 | |
Teradata Corp.(1)(2) | | 994 | | 32,703 | |
Tinexta Spa | | 1,158 | | 25,780 | |
TOTVS SA | | 7,789 | | 42,726 | |
Ziff Davis, Inc.(1) | | 1,042 | | 80,526 | |
| | | | 8,030,397 | |
Telecommunications – 5.0% | | | | | |
1&1 AG | | 1,140 | | 18,341 | |
Airtel Africa PLC | | 12,231 | | 18,829 | |
ATN International, Inc. | | 1,472 | | 68,963 | |
CommScope Holding Co. Inc.(1) | | 6,591 | | 74,478 | |
Empresa Nacional de Telecomunicaciones SA | | 9,526 | | 30,416 | |
Globe Telecom, Inc. | | 1,086 | | 40,574 | |
Indosat Tbk PT | | 112,896 | | 54,575 | |
Iridium Communications, Inc.(1) | | 1,552 | | 68,893 | |
Juniper Networks, Inc. | | 3,831 | | 108,877 | |
LG Uplus Corp. | | 5,785 | | 49,738 | |
Maxis Bhd | | 36,252 | | 31,185 | |
MTN Group Ltd. | | 36,717 | | 267,659 | |
NETGEAR, Inc.(1) | | 1,895 | | 44,703 | |
Nippon Telegraph & Telephone Corp. | | 26,357 | | 716,606 | |
Nokia Oyj | | 40,864 | | 205,947 | |
PLDT, Inc. | | 1,981 | | 59,231 | |
Proximus SADP | | 9,184 | | 117,100 | |
Singapore Telecommunications Ltd. | | 552,791 | | 1,038,142 | |
SoftBank Corp. | | 21,238 | | 234,327 | |
Spark New Zealand Ltd. | | 9,443 | | 31,379 | |
Tele2 AB | | 9,000 | | 96,151 | |
Telefonica Deutschland Holding AG | | 34,025 | | 88,443 | |
Telekom Malaysia Bhd(1) | | 18,995 | | 25,338 | |
Telenor ASA | | 62,349 | | 684,798 | |
Telia Co. AB | | 49,522 | | 175,021 | |
Telkom Indonesia Persero Tbk PT | | 1,210,847 | | 372,004 | |
Telkom SA SOC Ltd. | | 8,328 | | 21,479 | |
Tower Bersama Infrastructure Tbk PT | | 296,610 | | 56,354 | |
XL Axiata Tbk PT | | 179,061 | | 31,729 | |
| | | | 4,831,280 | |
Toys, Games & Hobbies – 0.7% | | | | | |
Hasbro, Inc. | | 8,640 | | 681,005 | |
Transportation – 1.1% | | | | | |
Atlas Corp. | | 7,101 | | 101,899 | |
BTS Group Holdings PCL – NVDR | | 271,227 | | 62,484 | |
Cargojet, Inc. | | 499 | | 52,651 | |
SCHEDULE OF INVESTMENTS at August 31, 2022 (Continued) |
Adasina Social Justice All Cap Global ETF
14 | The accompanying notes are an integral part of these financial statements. |
|
| Shares |
| Value | |
Transportation – 1.1% (Continued) | | | | | |
CryoPort, Inc.(1)(2) | | 1,321 | | $43,144 | |
DSV A/S | | 1,307 | | 193,762 | |
Forward Air Corp. | | 964 | | 93,547 | |
Heartland Express, Inc. | | 7,420 | | 112,413 | |
Hitachi Transport System Ltd. | | 850 | | 53,836 | |
HMM Co. Ltd. | | 14,121 | | 234,901 | |
Hyundai Glovis Co. Ltd. | | 345 | | 45,525 | |
Xiamen C & D, Inc. | | 15,400 | | 26,225 | |
Yamato Holdings Co. Ltd. | | 2,351 | | 36,972 | |
| | | | 1,057,359 | |
Water – 0.7% | | | | | |
American States Water Co. | | 2,781 | | 230,740 | |
SJW Group | | 2,508 | | 161,264 | |
United Utilities Group PLC | | 20,306 | | 249,631 | |
| | | | 641,635 | |
Total Common Stocks | | | | | |
(Cost $105,828,726) | | | | 96,291,411 | |
Short-Term Investments – 0.4% | | | | | |
Money Market Funds – 0.4% | | | | | |
First American Government Obligations Fund, Class X, 2.042%(4) | | 404,418 | | 404,418 | |
Total Short-Term Investments | | | | | |
(Cost $404,418) | | | | 404,418 | |
Investments Purchased with Collateral from Securities Lending – 7.3% | | | | | |
Mount Vernon Liquid Assets Portfolio, LLC, 2.470%(4) | | 7,060,011 | | 7,060,011 | |
Total Investments Purchased with Collateral from Securities Lending | | | | | |
(Cost $7,060,011) | | | | 7,060,011 | |
Total Investments in Securities – 107.2% | | | | ||
(Cost $113,293,155) | | | | 103,755,840 | |
Liabilities in Excess of Other Assets – (7.2)% | | (6,941,125 | ) | ||
Total Net Assets – 100.0% | | | | $96,814,715 | |
ADR American Depositary Receipt
NVDR Non-Voting Depositary Receipt
(1)Non-income producing security.
(2)This security or a portion of this security was out on loan as of August 31, 2022. Total loaned securities had a value of $6,832,054 or 7.1% of the Fund’s net assets. The remaining contractual maturity of all of the securities lending transactions is overnight and continuous.
(3)Does not round to 0.1% or (0.1)%, as applicable.
(4)The rate shown is the annualized seven-day effective yield as of August 31, 2022.
(5)This security was fair valued by the Fair Valuation Committee.
SCHEDULE OF INVESTMENTS at August 31, 2022 (Continued) |
Adasina Social Justice All Cap Global ETF
The accompanying notes are an integral part of these financial statements. | 15 |
Assets: | | | |
Investments in securities, at value (Cost $113,293,155) (Note 2)(1) | | $103,755,840 | |
Foreign cash (Cost $5,024) | | 4,869 | |
Receivables: | | | |
Fund shares sold | | 1,466,890 | |
Dividends and interest | | 153,044 | |
Investment securities sold | | 61,886 | |
Securities lending income, net (Note 5) | | 8,200 | |
Total assets | | 105,450,729 | |
| | | |
Liabilities: | | | |
Collateral received for securities loaned (Note 5) | | 7,060,011 | |
Payables: | | | |
Investment securities purchased | | 1,500,984 | |
Management fees (Note 4) | | 75,019 | |
Total liabilities | | 8,636,014 | |
Net Assets | | $96,814,715 | |
| | | |
Components of Net Assets: | | | |
Paid-in capital | | $113,586,003 | |
Total distributable (accumulated) earnings (losses) | | (16,771,288 | ) |
Net assets | | $96,814,715 | |
| | | |
Net Asset Value (unlimited shares authorized): | | | |
Net assets | | $96,814,715 | |
Shares of beneficial interest issued and outstanding | | 6,600,000 | |
Net asset value | | $14.67 | |
(1)Includes loaned securities with a value of $6,832,054.
Adasina Social Justice All Cap Global ETF
16 | The accompanying notes are an integral part of these financial statements. |
Investment Income: | | | |
Dividend income (net of foreign withholding tax of $150,366) | | $1,528,187 | |
Securities lending income, net (Note 5) | | 25,738 | |
Interest income | | 1,199 | |
Total investment income | | 1,555,124 | |
| | | |
Expenses: | | | |
Management fees (Note 4) | | 762,172 | |
Total expenses | | 762,172 | |
Net investment income (loss) | | 792,952 | |
| | | |
Realized and Unrealized Gain (Loss) on Investments | | | |
Net realized gain (loss) on: | | | |
Investments | | (3,747,789 | ) |
Foreign currency transactions | | (28,032 | ) |
Change in net unrealized appreciation/depreciation on: | | | |
Investments | | (11,235,944 | ) |
Foreign currency translation | | (2,590,735 | ) |
Net realized and unrealized gain (loss) on investments | | (17,602,500 | ) |
Net increase (decrease) in net assets resulting from operations | | $(16,809,548 | ) |
Adasina Social Justice All Cap Global ETF
The accompanying notes are an integral part of these financial statements. | 17 |
|
| Year Ended |
| Period Ended | |
| |||||
Increase (Decrease) in Net Assets From: | | | | | |
| |||||
Operations: | | | | | |
Net investment income (loss) | | $792,952 | | $268,165 | |
Net realized gain (loss) on investments and foreign currency transactions | | (3,775,821 | ) | 2,807,504 | |
Change in net unrealized appreciation/depreciation on investments and foreign currency translation | | (13,826,679 | ) | 4,282,001 | |
Net increase (decrease) in net assets resulting from operations | | (16,809,548 | ) | 7,357,670 | |
| | | | | |
Distributions to Shareholders: | | | | | |
Net distributions to shareholders | | (641,000 | ) | (223,040 | ) |
| | | | | |
Capital Share Transactions: | | | | | |
Net increase (decrease) in net assets derived from net change in outstanding shares(2) | | 42,995,155 | | 64,135,478 | |
Total increase (decrease) in net assets | | 25,544,607 | | 71,270,108 | |
| | | | | |
Net Assets: | | | | | |
Beginning of year/period | | 71,270,108 | | — | |
End of year/period | | $96,814,715 | | $71,270,108 | |
(1)The Fund commenced operations on December 8, 2020. The information presented is from December 8, 2020 to August 31, 2021.
(2)Summary of share transactions is as follows:
| | Year Ended | | Period Ended | | ||||
| | Shares | | Value | | Shares | | Value | |
Shares sold | | 3,600,000 | | $60,382,400 | | 4,600,000 | | $74,481,380 | |
Shares redeemed | | (1,000,000 | ) | (17,393,000 | ) | (600,000 | ) | (10,350,180 | ) |
Variable fees | | — | | 5,755 | | — | | 4,278 | |
Net increase (decrease) | | 2,600,000 | | $42,995,155 | | 4,000,000 | | $64,135,478 | |
Adasina Social Justice All Cap Global ETF
18 | The accompanying notes are an integral part of these financial statements. |
|
| Year Ended |
| Period Ended | ||||
| ||||||||
Net asset value, beginning of year/period | | | $17.82 | | | | $15.00 | |
| | | | | | | | |
Income from Investment Operations: | | | | | | | | |
Net investment income (loss)(2) | | | 0.15 | | | | 0.10 | |
Net realized and unrealized gain (loss) on investments | | | (3.17 | ) | | | 2.79 | |
Total from investment operations | | | (3.02 | ) | | | 2.89 | |
| | | | | | | | |
Less Distributions: | | | | | | | | |
From net investment income | | | (0.13 | ) | | | (0.07 | ) |
Total distributions | | | (0.13 | ) | | | (0.07 | ) |
| | | | | | | | |
Net asset value, end of year/period | | | $14.67 | | | | $17.82 | |
Total return(4) | | | (17.06 | )% | | | 19.24 | %(3) |
| | | | | | | | |
Ratios / Supplemental Data: | | | | | | | | |
Net assets, end of year/period (millions) | | | $96.8 | | | | $71.3 | |
Portfolio turnover rate | | | 85 | % | | | 81 | %(3) |
Ratio of expenses to average net assets(5) | | | 0.89 | % | | | 0.89 | % |
Ratio of net investment income (loss) to average net assets(5) | | | 0.93 | % | | | 0.80 | % |
(1)The Fund commenced operations on December 8, 2020. The information presented is from December 8, 2020 to August 31, 2021.
(2)Calculated using average shares outstanding method.
(3)Not annualized.
(4)The total return is based on the Fund’s net asset value. Additional performance information is presented in the Performance Summary.
(5)Annualized.
19 |
Adasina Social Justice All Cap Global ETF
NOTE 1 – ORGANIZATION |
The Fund is a diversified series of shares of beneficial interest of Tidal ETF Trust (the “Trust”). The Trust was organized as a Delaware statutory trust on June 4, 2018 and is registered with the Securities and Exchange Commission (the “SEC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company and the offering of the Fund’s shares is registered under the Securities Act of 1933, as amended. The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 “Financial Services—Investment Companies.” The Fund commenced operations on December 8, 2020.
The investment objective of the Fund is to seek capital appreciation and income.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES |
The following is a summary of significant accounting policies consistently followed by the Fund. These policies are in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
A.Security Valuation. Equity securities that are listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on the NASDAQ Stock Market, LLC (“NASDAQ”)), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded on the valuation date (or at approximately 4:00 p.m. EST if a security’s primary exchange is normally open at that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price or mean between the most recent quoted bid and ask prices for long and short positions. For a security that trades on multiple exchanges, the primary exchange will generally be considered the exchange on which the security is generally most actively traded. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. Prices of securities traded on the securities exchange will be obtained from recognized independent pricing agents (“Independent Pricing Agents”) each day that the Fund is open for business.
For securities for which quotations are not readily available, a fair value will be determined by the Valuation Committee using the Fair Value Procedures approved by the Trust’s Board of Trustees (the “Board”). When a security is “fair valued,” consideration is given to the facts and circumstances relevant to the particular situation, including a review of various factors set forth in the Fair Value Procedures adopted by the Board. Fair value pricing is an inherently subjective process, and no single standard exists for determining fair value. Different funds could reasonably arrive at different values for the same security. The use of fair value pricing by a fund may cause the net asset value of its shares to differ significantly from the net asset value that would be calculated without regard to such considerations.
As described above, the Fund utilizes various methods to measure the fair value of its investments on a recurring basis. U.S. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:
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 availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
20 |
Adasina Social Justice All Cap Global ETF
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.
The following is a summary of the inputs used to value the Fund’s investments as of August 31, 2022:
Investments in Securities | | Investments | | Level 1 | | Level 2 | | Level 3 | | Total | |||||
Common Stocks(1) | | $ | — | | $ | 96,291,411 | | $ | — | | $ | 0 | | $ | 96,291,411 |
Short-Term Investments | | | — | | | 404,418 | | | — | | | — | | | 404,418 |
Investments Purchased With Collateral From | |
| 7,060,011 | |
| — | |
| — | |
| — | |
| 7,060,011 |
Total Investments in Securities | | $ | 7,060,011 | | $ | 96,695,829 | | $ | — | | $ | — | | $ | 103,755,840 |
| | Investments in Securities at Fair Value(3) |
Balance as of August 31, 2021 | | |
Accrued discounts/premiums | | $— |
Realized gain (loss) | | — |
Change in unrealized appreciation/depreciation | | — |
Purchases | | 0 |
Sales | | — |
Transfer into and/or out of Level 3 | | — |
Balance as of August 31, 2022 | | 0 |
| | |
Change in unrealized appreciation/depreciation during the period for Level 3 investments held at August 31, 2022 | | $0 |
(1)See Schedule of Investments for the industry breakout.
(2)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Schedule of Investments.
(3)The level 3 security, a Contingent Value Right (“CVR”), was received by the Fund as a result of Zogenix, Inc. being acquired by UCB SA. This security has been valued at $0 since acquisition as the Fund does not anticipate receiving proceeds from the CVR.
B.Federal Income Taxes. The Fund has elected to be taxed as a “regulated investment company” and intends to distribute substantially all taxable income to its shareholders and otherwise comply with the provisions of the Internal Revenue Code applicable to regulated investment companies. Therefore, no provision for federal income taxes or excise taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated investment companies, the Fund intends to declare as dividends in each calendar year at least 98.0% of its net investment income (earned during the calendar year) and at least 98.2% of its net realized capital gains (earned during the twelve months ended October 31) plus undistributed amounts, if any, from prior years.
As of August 31, 2022, the Fund did not have any tax positions that did not meet the threshold of being sustained by the applicable tax authority. Generally, tax authorities can examine all the tax returns filed for the last three years. The Fund identifies its major tax jurisdiction as U.S. Federal and the Commonwealth of Delaware; however, the Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially.
C.Securities Transactions and Investment Income. Investment securities transactions are accounted for on the trade date. Gains and losses realized on sales of securities are determined on a specific identification basis. Discounts/premiums on debt securities purchased are accreted/amortized over the life of the respective securities using the effective interest method. Dividend income is recorded on the ex-dividend date. Debt income is recorded on an accrual basis. Other non-cash dividends are recognized as investment income at the fair value of the property received. Withholding taxes on foreign dividends have been provided for in accordance with the Trust’s understanding of the applicable country’s tax rules and rates.
NOTES TO FINANCIAL STATEMENTS August 31, 2022 (Continued) |
21 |
Adasina Social Justice All Cap Global ETF
D.Foreign Currency. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts on the respective dates of such transactions.
The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.
The Fund reports net realized foreign exchange gains or losses that arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books 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 fair values of assets and liabilities, other than investments in securities at period end, resulting from changes in exchange rates.
E.Distributions to Shareholders. Distributions to shareholders from net investment income, if any, for the Fund are declared and paid semi-annually. Distributions to shareholders from net realized gains on securities, if any, for the Fund normally are declared and paid on an annual basis. Distributions are recorded on the ex-dividend date.
F.Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates.
G.Share Valuation. The NAV per share of the Fund is calculated by dividing the sum of the value of the securities held by the Fund, plus cash or other assets, minus all liabilities by the total number of shares outstanding for the Fund, rounded to the nearest cent. The Fund’s shares will not be priced on the days on which the New York Stock Exchange (“NYSE”) is closed for trading.
H.Guarantees and Indemnifications. In the normal course of business, the Fund enters into contracts with service providers that contain general indemnification clauses. The Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
I.Illiquid Investments. Pursuant to Rule 22e-4 under the 1940 Act, the Fund has adopted a Board-approved Liquidity Risk Management Program (the “Program”) that requires, among other things, that the Fund limit its illiquid investments that are assets to no more than 15% of the value of the Fund’s net assets. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. If the Fund should be in a position where the value of illiquid investments held by the Fund exceeds 15% of the Fund’s net assets, the Fund will take such steps as set forth in the Program.
J.Reclassification of Capital Accounts. U.S. GAAP requires that certain components of net assets relating to permanent differences be reclassified between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. These differences are primarily due to adjustments for redemptions in-kind. For the year ended August 31, 2022, the following adjustments were made:
Paid-In Capital | | Total Distributed |
$3,792,285 | | $(3,792,285) |
During the year ended August 31, 2022, the Adasina Social Justice All Cap Global ETF realized $3,881,998 in net capital gains resulting from in-kind redemptions, in which shareholders exchanged Fund shares for securities held by the Funds rather than for cash. Because such gains are not taxable to the Fund, and are not distributed to shareholders, they have been reclassified from accumulated losses to paid-in capital. These differences are primarily due to adjustments for redemptions in-kind activity and passive foreign investment companies.
NOTES TO FINANCIAL STATEMENTS August 31, 2022 (Continued) |
22 |
Adasina Social Justice All Cap Global ETF
K.Recently Issued Accounting Pronouncements.
•In October 2020, the SEC adopted new regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Fund will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treats derivatives as senior securities and requires funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager. Management implemented a Rule 18f-4 Derivatives Risk Management Program effective August 19, 2022.
•In December 2020, the SEC adopted a new rule providing a framework for fund valuation practices (“Rule 2a-5”). Rule 2a-5 establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit fund boards to designate certain parties to perform fair value determinations, subject to board oversight and certain other conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must fair value a security. In connection with Rule 2a-5, the SEC also adopted related recordkeeping requirements and is rescinding previously issued guidance, including with respect to the role of a board in determining fair value and the accounting and auditing of fund investments. The Fund began complying with Rule 2a-5 effective September 8, 2022. Effective on that date, securities for which market quotations are not readily available will have a fair value determined by the Valuation Designee (as defined in Rule 2a-5) in accordance with the Pricing and Valuation Policy and Fair Value Procedures, as applicable, of the Fund’s investment adviser, Toroso Investments, LLC (the “Adviser”), subject to oversight by the Trust’s Board of Trustees (the “Board”). When a security is “fair valued,” consideration is given to the facts and circumstances relevant to the particular situation, including a review of various factors set forth in the Adviser’s Pricing and Valuation Policy and Fair Value Procedures, as applicable.
•In June 2022, the FASB issued Accounting Standards Update 2022-03, which amends Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies guidance for fair value measurement of an equity security subject to a contractual sale restriction and establishes new disclosure requirements for such equity securities. ASU 2022-03 is effective for fiscal years beginning after December 15, 2023 and for interim periods within those fiscal years, with early adoption permitted. Management is currently evaluating the impact, if any, of these amendments on the financial statements.
NOTE 3 – PRINCIPAL INVESTMENT RISKS |
A.Emerging and Developing Markets Risk. The Fund may invest in securities issued by companies domiciled or headquartered in emerging and developing market nations. Investments in securities traded in developing or emerging markets, or that provide exposure to such securities or markets, can involve additional risks relating to political, economic, currency, or regulatory conditions not associated with investments in U.S. securities and investments in more developed international markets. Such conditions may impact the ability of the Fund to buy, sell, or otherwise transfer securities, adversely affect the trading market and price for shares of the Fund (“Shares”) and cause the Fund to decline in value.
B.Equity Market Risk. The equity securities held in the Fund’s portfolio may experience sudden, unpredictable drops in value or long periods of decline in value. This may occur because of factors that affect securities markets generally or factors affecting specific issuers, industries, or sectors in which the Fund invests. The Fund will invest in common stocks directly. Common stocks are generally exposed to greater risk than other types of securities, such as preferred stock and debt obligations, because common stockholders generally have inferior rights to receive payment from specific issuers.
C.Exchange Traded Fund (“ETF”) Risks.
•Authorized Participants, Market Makers, and Liquidity Providers Concentration Risk. The Fund has a limited number of financial institutions that are authorized to purchase and redeem Shares directly from the Fund (known as “Authorized Participants” or “APs”). In addition, there may be a limited number of market makers and/or liquidity providers in the marketplace. To the extent either of the following events occur, Shares may trade at a material discount to NAV and possibly face delisting: (i) APs exit the business or otherwise become unable to process creation and/or redemption orders and no other APs step forward to perform these services; or (ii) market makers and/or liquidity providers exit the business or significantly reduce their business activities and no other entities step forward to perform their functions.
NOTES TO FINANCIAL STATEMENTS August 31, 2022 (Continued) |
23 |
Adasina Social Justice All Cap Global ETF
•Costs of Buying or Selling Shares. Due to the costs of buying or selling Shares, including brokerage commissions imposed by brokers and bid-ask spreads, frequent trading of Shares may significantly reduce investment results and an investment in Shares may not be advisable for investors who anticipate regularly making small investments.
•Shares May Trade at Prices Other Than NAV. As with all ETFs, Shares may be bought and sold in the secondary at market prices. Although it is expected that the market price of Shares will approximate the Fund’s NAV, there may be times when the market price of Shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of Shares or during periods of market volatility. This risk is heightened in times of market volatility, periods of steep market declines, and periods when there is limited trading activity for Shares in the secondary market, in which case such premiums or discounts may be significant. Because securities held by the Fund may trade on foreign exchanges that are closed when the Fund’s primary listing exchange is open, the Fund is likely to experience premiums and discounts greater than those of ETFs holding only domestic securities.
•Trading. Although Shares are listed on a national securities exchange, such as NYSE Arca, Inc. (the “Exchange”), and may be traded on U.S. exchanges other than the Exchange, there can be no assurance that Shares will trade with any volume, or at all, on any stock exchange. In stressed market conditions, the liquidity of Shares may begin to mirror the liquidity of the Fund’s underlying portfolio holdings, which can be significantly less liquid than Shares.
D.Foreign Securities Risks. Investments in securities or other instruments of non-U.S. issuers, including ADRs, involve certain risks not involved in domestic investments and may experience more rapid and extreme changes in value than investments in securities of U.S. companies. Financial markets in foreign countries often are not as developed, efficient, or liquid as financial markets in the United States, and therefore, the prices of non-U.S. securities, including ADRs, can be more volatile. In addition, the Fund will be subject to risks associated with adverse political and economic developments in foreign countries, which may include the imposition of economic sanctions. Generally, there is less readily available and reliable information about non-U.S. issuers due to less rigorous disclosure or accounting standards and regulatory practices.
E.Market Capitalization Risk.
•Large-Capitalization Investing. The securities of large-capitalization companies may be relatively mature compared to smaller companies and therefore subject to slower growth during times of economic expansion. Large capitalization companies may also be unable to respond quickly to new competitive challenges, such as changes in technology and consumer tastes.
•Mid-Capitalization Investing. The securities of mid-capitalization companies may be more vulnerable to adverse issuer, market, political, or economic developments than securities of large-capitalization companies. The securities of mid-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than large capitalization stocks or the stock market as a whole.
•Small-Capitalization Investing. The securities of small-capitalization companies may be more vulnerable to adverse issuer, market, political, or economic developments than securities of large- or mid-capitalization companies. The securities of small-capitalization companies generally trade in lower volumes and are subject to greater and more unpredictable price changes than large- or mid-capitalization stocks or the stock market as a whole. There is typically less publicly available.
F.Sector Risk. At times the Fund may increase the relative emphasis of its investments in a particular sector or group of industries. The prices of securities of issuers in a particular sector may be more susceptible to fluctuations due to changes in economic or business conditions, government regulations, availability of basic resources or supplies, or other events that affect that industry or sector more than securities of issuers in other industries and sectors. To the extent that the Fund increases the relative emphasis of its investments in a particular industry or sector, the value of Shares may fluctuate in response to events affecting that industry or sector. As of August 31, 2022, 26.4% of the Fund’s net assets were invested in the consumer, non-cyclical sector.
G.Style Risk. Applying Racial, Gender, Economic, and Climate Justice as well as Movement Aligned criteria to the Fund’s investment selection process may exclude securities of certain issuers for non-financial reasons and therefore, the Fund may underperform the broader equity market or other funds that do not utilize similar criteria when selecting investments.
NOTES TO FINANCIAL STATEMENTS August 31, 2022 (Continued) |
24 |
Adasina Social Justice All Cap Global ETF
NOTE 4 – COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS |
The Adviser serves as investment adviser to the Fund pursuant to an investment advisory agreement between the Adviser and the Trust, on behalf of the Fund (the “Advisory Agreement”), and, pursuant to the Advisory Agreement, provides investment advice to the Fund and oversees the day-to-day operations of the Fund, subject to the direction and oversight of the Board. The Adviser is also responsible for trading portfolio securities for the Fund, including selecting broker-dealers to execute purchase and sale transactions.
Pursuant to the Advisory Agreement, the Fund pays the Adviser a unitary management fee (the “Management Fee”) based on the average daily net assets of the Fund at the annualized rate of 0.89%. Out of the Management Fee, the Adviser is obligated to pay or arrange for the payment of substantially all expenses of the Fund, including the cost of sub-advisory, transfer agency, custody, fund administration, and all other related services necessary for the Fund to operate. Under the Advisory Agreement, the Adviser has agreed to pay all expenses incurred by the Fund except for interest charges on any borrowings, dividends and other expenses on securities sold short, 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, distribution fees and expenses paid by the Fund under any distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act (collectively, “Excluded Expenses”). The Management Fees incurred are paid monthly to the Adviser. Management Fees for the year ended August 31, 2022 are disclosed in the Statement of Operations.
Robasciotti & Associates, Inc., doing business as Adasina Social Capital (the “Sub-Adviser”), serves as sub-adviser to the Fund, pursuant to a sub-advisory agreement between the Adviser and the Sub-Adviser with respect to the Fund (the “Sub-Advisory Agreement”). Pursuant to the Sub-Advisory Agreement, the Sub-Adviser is responsible for the day-to-day management of the Fund’s portfolio, including determining the securities purchased and sold by the Fund, subject to the supervision of the Adviser and the Board. The Sub-Adviser is paid a fee by the Adviser, which is calculated and paid monthly, at an annual rate of 0.02% of the Fund’s average daily net assets. The Sub-Adviser has agreed to assume the Adviser’s obligation to pay all expenses incurred by the Fund, except for Excluded Expenses. For assuming the payment obligation, the Adviser has agreed to pay to the Sub-Adviser the profits, if any, generated by the Fund’s Management Fee. Expenses incurred by the Fund and paid by the Sub-Adviser include fees charged by Tidal, as defined below.
Tidal ETF Services LLC (“Tidal”), an affiliate of the Adviser, serves as the Fund’s administrator and, in that capacity, performs various administrative and management services for the Fund. Tidal coordinates the payment of Fund-related expenses and manages the Trust’s relationships with its various service providers.
U.S. Bancorp Fund Services, LLC, doing business as U.S. Bank Global Fund Services (“Fund Services”), serves as the Fund’s sub-administrator, fund accountant and transfer agent. In those capacities Fund Services performs various administrative and accounting services for the Fund. Fund Services prepares various federal and state regulatory filings, reports and returns for the Fund, including regulatory compliance monitoring and financial reporting; prepares reports and materials to be supplied to the Board; and monitors the activities of the Fund’s custodian. U.S. Bank N.A. (the “Custodian”), an affiliate of Fund Services, serves as the Fund’s custodian. The Custodian acts as the securities lending agent (the “Securities Lending Agent”) for the Fund.
Foreside Fund Services, LLC (the “Distributor”) acts as the Fund’s principal underwriter in a continuous public offering of the Fund’s shares.
Certain officers and a trustee of the Trust are affiliated with the Adviser and Fund Services. Neither the affiliated trustee nor the Trust’s officers receive compensation from the Fund.
NOTE 5 – SECURITIES LENDING |
The Fund may lend up to 33 1/3% of the value of the securities in its portfolio to brokers, dealers and financial institutions (but not individuals) under terms of participation in a securities lending program administered by the Securities Lending Agent. The securities lending agreement requires that loans are collateralized at all times in an amount equal to at least the market value of the securities loaned by the Fund. The Fund receives compensation in the form of fees and earned interest on the cash collateral. Due to timing issues of when a security is recalled from loan, the financial statements may differ in presentation. The amount of fees depends on a number of factors including the type of security and length of the loan. The Fund continues to receive interest payments or dividends on the securities loaned during the borrowing period. Gain or loss in the value of securities loaned that may occur during the term of the loan will be for the account of the Fund. The Fund has the right under the terms of the securities lending agreements to recall the securities from the borrower on demand.
NOTES TO FINANCIAL STATEMENTS August 31, 2022 (Continued) |
25 |
Adasina Social Justice All Cap Global ETF
NOTES TO FINANCIAL STATEMENTS August 31, 2022 (Continued) |
As of August 31, 2022, market value of the securities on loan and payable on collateral received for securities lending were as follows:
Market Value of | | Payable on | | Percentage of |
$6,832,054 | | $7,060,011 | | 7.1% |
The cash collateral is invested in the Mount Vernon Liquid Assets Portfolio, LLC, of which the investment objective is to seek to maximize income to the extent consistent with the preservation of capital and liquidity and maintain a stable NAV of $1.00. Although risk is mitigated by the collateral, the Fund could experience a delay in recovering its securities and possible loss of income or value if the borrower fails to return the borrowed securities. In addition, the Fund bears the risk of loss associated with the investment of cash collateral received.
During the year ended August 31, 2022, the Fund loaned securities that were collateralized by cash. The cash collateral received was invested in the Mount Vernon Liquid Assets Portfolio, LLC as listed in the Fund’s Schedule of Investments. Securities lending income is disclosed in the Fund’s Statement of Operations.
The Fund is not subject to a master netting agreement with respect to the Fund’s participation in securities lending; therefore, no additional disclosures regarding netting arrangements are required.
NOTE 6 – PURCHASES AND SALES OF SECURITIES |
For the year ended August 31, 2022, the cost of purchases and proceeds from the sales or maturities of securities, excluding short-term investments and U.S. government securities were $75,121,176 and $72,153,247 respectively.
For the year ended August 31, 2022, there were no purchases or sales of long-term U.S. Government securities.
For the year ended August 31, 2022, in-kind transactions associated with creations and redemptions for the Fund were $56,894,020 and $17,189,466, respectively.
NOTE 7 – INCOME TAXES AND DISTRIBUTONS TO SHAREHOLDERS |
The tax character of distributions paid during the year ended August 31, 2022 and the period ended August 31, 2021 were as follows:
Distributions paid from: | | August 31, 2022 | | August 31, 2021 |
Ordinary income | | $641,000 | | $223,040 |
As of August 31, 2022, the components of accumulated earnings/(losses) on a tax basis were as follows:
Cost of investments(1) | | $113,921,091 | |
Gross tax unrealized appreciation | | 3,223,294 | |
Gross tax unrealized depreciation | | (13,395,908 | ) |
Net tax unrealized appreciation (depreciation) | | (10,172,614 | ) |
Undistributed ordinary income (loss) | | 487,809 | |
Undistributed long-term capital gain (loss) | | — | |
Total distributable earnings | | 487,809 | |
Other accumulated gain (loss) | | (7,086,483 | ) |
Total accumulated gain (loss) | | $(16,771,288 | ) |
(1)The difference between book and tax-basis cost of investments was attributable primarily to the treatment of wash sales.
Net capital losses incurred after October 31 and net investment losses incurred after December 31, and within the taxable year, are deemed to arise on the first business day of the Fund’s next taxable year. As of August 31, 2022 the Fund had no late year losses and short-term and long-term capital loss carryovers of $5,869,052 and $1,217,431, respectively.
26 |
Adasina Social Justice All Cap Global ETF
NOTES TO FINANCIAL STATEMENTS August 31, 2022 (Continued) |
NOTE 8 – SHARE TRANSACTIONS |
Shares of the Fund are listed and traded on the Exchange. Market prices for the shares may be different from their NAV. The Fund issues and redeems shares on a continuous basis at NAV generally in large blocks of shares, called (“Creation Units”). Creation Units are issued and redeemed principally in-kind for securities included in a specified universe. Once created, shares generally trade in the secondary market at market prices that change throughout the day. Except when aggregated in Creation Units, shares are not redeemable securities of the Fund. Creation Units may only be purchased or redeemed by Authorized Participants. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors do not qualify as Authorized Participants nor have the resources to buy and sell whole Creation Units. Therefore, they are unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors may purchase shares in the secondary market with the assistance of a broker and are subject to customary brokerage commissions or fees.
The Fund currently offers one class of shares, which has no front-end sales load, no deferred sales charge, and no redemption fee. A fixed transaction fee is imposed for the transfer and other transaction costs associated with the purchase or sale of Creation Units. The standard fixed transaction fee for the Fund is $9,500, payable to the Custodian. The fixed transaction fee may be waived on certain orders if the Fund’s Custodian has determined to waive some or all of the costs associated with the order or another party, such as the Adviser, has agreed to pay such fee. In addition, a variable fee may be charged on all cash transactions or substitutes for Creation Units of up to a maximum of 3% and for Redemption Units of up to a maximum of 2%, respectively, of the value of the Creation Units and Redemption Units subject to the transaction. Variable fees received by the Fund, if any, are disclosed in the capital shares transactions section of the Statements of Changes in Net Assets. The Fund may issue an unlimited number of shares of beneficial interest, with no par value. All shares of the Fund have equal rights and privileges.
NOTE 9 – RECENT MARKET EVENTS |
U.S. and international markets have experienced significant periods of volatility in recent years and months due to a number of economic, political and global macro factors including the impact of COVID-19 as a global pandemic and related public health crisis, growth concerns in the U.S. and overseas, uncertainties regarding interest rates, rising inflation, trade tensions, and the threat of tariffs imposed by the U.S. and other countries. The global recovery from COVID-19 is proceeding at slower than expected rates due to the emergence of variant strains and may last for an extended period of time. As a result of continuing political tensions and armed conflicts, including the war between Ukraine and Russia, the U.S. and the European Union imposed sanctions on certain Russian individuals and companies, including certain financial institutions, and have limited certain exports and imports to and from Russia. The war has contributed to recent market volatility and may continue to do so. These developments, as well as other events, could result in further market volatility and negatively affect financial asset prices, the liquidity of certain securities and the normal operations of securities exchanges and other markets, despite government efforts to address market disruptions. Continuing market volatility as a result of recent market conditions or other events may have adverse effects on your account.
NOTE 10 – SUBSEQUENT EVENTS |
In preparing these financial statements, the Fund has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. The Fund has determined that there are no subsequent events that would need to be disclosed in the Fund’s financial statements.
27 |
Adasina Social Justice All Cap Global ETF
To the Shareholders of
Adasina Social Justice All Cap Global ETF and
The Board of Trustees of
Tidal ETF Trust
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Adasina Social Justice All Cap Global ETF (the “Fund”), a series of Tidal ETF Trust (the “Trust”), including the schedule of investments, as of August 31, 2022, the related statement of operations for the year then ended, and the statement of changes in net assets and the financial highlights for the year ended August 31, 2022 and for the period December 8, 2020 (commencement of operations) to August 31, 2021, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2022, the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year ended August 31, 2022 and the period December 8, 2020 to August 31, 2021, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the auditor of one or more of the funds in the Trust since 2018.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2022, by correspondence with the custodian and brokers or through other appropriate auditing procedures when replies from brokers were unable to be obtained. We believe that our audit provides a reasonable basis for our opinion.
TAIT, WELLER & BAKER LLP
Philadelphia, Pennsylvania
October 27, 2022
28 |
Adasina Social Justice All Cap Global ETF
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of the Fund’s shares, and (2) ongoing costs, including management fees of the Fund. The example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which is from March 1, 2022 to August 31, 2022.
Actual Expenses
The first line of the following table provides information about actual account values and actual expenses. To the extent the Fund invests in shares of other investment companies as part of its investment strategy, you will indirectly bear your proportionate share of any fees and expenses charged by the underlying funds in which the Fund invests, in addition to the expenses of the Fund. Actual expenses of the underlying funds are expected to vary among the various underlying funds. These expenses are not included in the example. The example includes, but is not limited to, unitary fees. However, the example does not include portfolio trading commissions and related expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then, multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period’’ to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of the Fund’s shares. Therefore, the second line of the following table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. If these transactional costs were included, your costs would have been higher.
| | Beginning | | Ending | | Expenses Paid |
Actual | | $1,000.00 | | $876.60 | | $4.21 |
Hypothetical (5% annual return before expenses) | | $1,000.00 | | $1,020.72 | | $4.53 |
(1)Expenses are equal to the Fund’s annualized expense ratio for the most recent six-month period of 0.89%, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the most recent six-month period).
29 |
Adasina Social Justice All Cap Global ETF
| Position |
| Term of |
| Principal |
| Number of |
| Other Directorships | |
Independent Trustees(1) | ||||||||||
Mark H.W. Baltimore c/o Tidal ETF Services, LLC 234 West Florida Street, Suite 203 Milwaukee, Wisconsin 53204 Born: 1967 | | Trustee | | Indefinite term; since 2018 | | Co-Chief Executive Officer, Global Rhino, LLC (asset management consulting firm) (since 2018); Chief Business Development Officer, Joot (asset management compliance services firm) (since 2019); Chief Executive Officer, Global Sight, LLC (asset management distribution consulting firm) (2016–2018). | | 32 | | None |
Dusko Culafic c/o Tidal ETF Services, LLC 234 West Florida Street, Suite 203 Milwaukee, Wisconsin 53204 Born: 1958 | | Trustee | | Indefinite term; since 2018 | | Retired (since 2018); Senior Operational Due Diligence Analyst, Aurora Investment Management, LLC (2012–2018). | | 32 | | None |
Eduardo Mendoza c/o Tidal ETF Services, LLC 234 West Florida Street, Suite 203 Milwaukee, Wisconsin 53204 Born: 1966 | | Trustee | | Indefinite term; since 2018 | | Chief Financial Officer (Since 2022), Executive Vice President - Head of Capital Markets & Corporate Development (since 2019), Advisor (2017–2019), Credijusto (financial technology company); Founding Partner / Capital Markets & Head of Corporate Development, SQN Latina (specialty finance company) (2016–2017). | | 32 | | None |
Interested Trustee and Executive Officer | ||||||||||
Eric W. Falkeis(2) c/o Tidal ETF Services, LLC 234 West Florida Street, Suite 203 Milwaukee, Wisconsin 53204 Born: 1973 | | President, Principal Executive Officer, Trustee, Chairman, and Secretary | | President and Principal Executive Officer since 2019, Indefinite term; Trustee, Chairman, and Secretary since 2018, Indefinite term | | Chief Executive Officer, Tidal ETF Services LLC (since 2018); Chief Operating Officer (and other positions), Rafferty Asset Management, LLC (2013–2018) and Direxion Advisors, LLC (2017–2018). | | 32 | | Trustee, Tidal ETF Trust II (1 series) (since 2022); Independent Director, Muzinich BDC, Inc. (since 2019); Trustee, Professionally Managed Portfolios (25 series) (since 2011); Interested Trustee, Direxion Funds, Direxion Shares ETF Trust, and Direxion Insurance Trust (2014–2018). |
30 |
Adasina Social Justice All Cap Global ETF
TRUSTEES AND EXECUTIVE OFFICERS (Unaudited) (Continued) |
Name, Address and |
| Position |
| Term of |
| Principal |
| Number of |
| Other Directorships |
Executive Officers | ||||||||||
Daniel H. Carlson c/o Tidal ETF Services, LLC 234 West Florida Street, Suite 203 Milwaukee, Wisconsin 53204 Born: 1955 | | Treasurer, Principal Financial Officer, Principal Accounting Officer, and AML Compliance Officer | | Indefinite term; since 2018 | | Chief Financial Officer, Chief Compliance Officer, and Managing Member, Toroso Investments, LLC (since 2012). | | Not Applicable | | Not Applicable |
William H. Woolverton, Esq. c/o Cipperman Compliance Services, LLC 480 E. Swedesford Road, Suite 220 Wayne, Pennsylvania 19087 Born: 1951 | | Chief Compliance Officer | | Indefinite term; since 2021 | | Senior Compliance Advisor, Cipperman Compliance Services, LLC (since 2020); Operating Partner, Altamont Capital Partners (private equity firm) (2021 to present); Managing Director and Head of Legal – US, Waystone (global governance solutions) | | Not Applicable | | Not Applicable |
Ally L. Mueller c/o Tidal ETF Services, LLC 234 West Florida Street, Suite 203 Milwaukee, Wisconsin 53204 Born: 1979 | | Assistant Treasurer | | Indefinite term; since 2022 | | Head of ETF Launches and Finance Director, Tidal ETF Services LLC (since 2019). | | Not Applicable | | Not Applicable |
Cory R. Akers c/o U.S. Bancorp Fund Services, LLC 615 East Michigan Street Milwaukee, Wisconsin 53202 Born: 1978 | | Assistant Secretary | | Indefinite term; since 2019 | | Assistant Vice President, U.S. Bancorp Fund Services, LLC (since 2006). | | Not Applicable | | Not Applicable |
(1)All Independent Trustees of the Trust are not “interested persons” of the Trust as defined under the 1940 Act (“Independent Trustees”).
(2)Mr. Falkeis is considered an “interested person” of the Trust due to his positions as President, Principal Executive Officer, Chairman and Secretary of the Trust, and Chief Executive Officer of Tidal ETF Services LLC, an affiliate of the Adviser.
31 |
Adasina Social Justice All Cap Global ETF
QUALIFIED DIVIDEND INCOME/DIVIDENDS RECEIVED DEDUCTION (Unaudited) |
For the year ended August 31, 2022, certain dividends paid by the Fund may be subject to a maximum tax rate of 23.8%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003 and the Tax Cuts and Jobs Act of 2017.
The percentage of dividends declared from ordinary income designated as qualified dividend income for the year ended August 31, 2022 was 71.03%.
For corporate shareholders, the percent of ordinary income distributions qualifying for the corporate dividends received deduction for the year ended August 31, 2022, was 32.41%.
The percentage of taxable ordinary income distributions that are designated as short-term capital gain distribution under Internal Revenue Section 871(k)(2)(c) for the year ended August 31, 2022, was 57.97%.
INFORMATION ABOUT PROXY VOTING (Unaudited) |
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available upon request without charge, by calling (833) 743-0080 or by accessing the Fund’s website at www.adasinaetf.com. Furthermore, you can obtain the description on the SEC’s website at www.sec.gov.
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-months ending June 30 is available upon request without charge by calling (833) 743-0080 or by accessing the SEC’s website at www.sec.gov.
INFORMATION ABOUT THE PORTFOLIO HOLDINGS (Unaudited) |
The Fund’s portfolio holdings are posted on the Fund’s website daily at www.adasinaetf.com. The Fund files its complete schedule of portfolio holdings with the SEC for its first and third fiscal quarters on Part F of Form N-PORT. The Fund’s Part F of Form N-PORT is available without charge, upon request, by calling (833) 743-0080. Furthermore, you can obtain the Part F of Form N-PORT on the SEC’s website at www.sec.gov.
FREQUENCY DISTRIBUTION OF PREMIUMS AND DISCOUNTS (Unaudited) |
Information regarding how often shares of the Fund trade on the exchange at a price above (i.e., at a premium) or below (i.e., at a discount) to its daily NAV is available, without charge, on the Fund’s website at www.adasinaetf.com.
INFORMATION ABOUT THE FUND’S TRUSTEES (Unaudited) |
The Statement of Additional Information (“SAI”) includes additional information about the Fund’s Trustees and is available without charge, upon request, by calling (833) 743-0080. Furthermore, you can obtain the SAI on the SEC’s website at www.sec.gov or the Fund’s website at www.adasinaetf.com.
Investment Adviser
Toroso Investments, LLC
898 N. Broadway, Suite 2
Massapequa, New York 11758
Investment Sub-Adviser
Adasina Social Capital
870 Market Street, Suite 1275
San Francisco, California 94102
Independent Registered Public Accounting Firm
Tait, Weller & Baker LLP
Two Liberty Place
50 South 16th Street, Suite 2900
Philadelphia, Pennsylvania 19102
Legal Counsel
Godfrey & Kahn, S.C.
833 East Michigan Street, Suite 1800
Milwaukee, Wisconsin 53202
Custodian
U.S. Bank N.A.
Custody Operations
1555 North RiverCenter Drive, Suite 302
Milwaukee, Wisconsin 53212
Fund Administrator
Tidal ETF Services, LLC
234 West Florida Street, Suite 203
Milwaukee, Wisconsin 53204
Transfer Agent, Fund Accountant and Fund Sub-Administrator
U.S. Bancorp Fund Services, LLC
615 East Michigan Street
Milwaukee, Wisconsin 53202
Distributor
Foreside Fund Services, LLC
Three Canal Plaza, Suite 100
Portland, Maine 04101
Fund Information | ||
Fund | Ticker | CUSIP |
Adasina Social Justice All Cap Global ETF | JSTC | 886364876 |
(b) | Not applicable. |
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer and principal financial officer. The registrant has not made any amendments to its code of ethics during the period covered by this report. The registrant has not granted any waivers from any provisions of the code of ethics during the period covered by this report.
A copy of the registrant’s Code of Ethics is filed herewith.
Item 3. Audit Committee Financial Expert.
The registrant’s Board of Trustees of the Trust has determined that there is at least one audit committee financial expert serving on its audit committee. Mr. Dusko Culafic is the “audit committee financial expert” and is considered to be “independent” as each term is defined in Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
The registrant has engaged its principal accountant to perform audit services, audit-related services, tax services and other services during the past fiscal year. “Audit services” refer to performing an audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. “Audit-related services” refer to the assurance and related services by the principal accountant that are reasonably related to the performance of the audit. “Tax services” refer to professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. There were no “Other services” provided by the principal accountant. The following table details the aggregate fees billed or expected to be billed for the last fiscal year for audit fees, audit-related fees, tax fees and other fees by the principal accountant.
Adasina Social Justice All Cap Global ETF
FYE 08/31/2022 | FYE 08/31/2021 | |
Audit Fees | $12,500 | $12,500 |
Audit-Related Fees | N/A | N/A |
Tax Fees | $2,500 | $2,500 |
All Other Fees | N/A | N/A |
The audit committee has adopted pre-approval policies and procedures that require the audit committee to pre-approve all audit and non-audit services of the registrant, including services provided to any entity affiliated with the registrant.
2
The percentage of fees billed by Tait Weller & Baker LLP applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows:
Non-Audit Related Fees | FYE 08/31/2022 | FYE 08/31/2021 |
Registrant | N/A | N/A |
Registrant’s Investment Adviser | N/A | N/A |
All of the principal accountant’s hours spent on auditing the registrant’s financial statements were attributed to work performed by full-time permanent employees of the principal accountant.
The following table indicates the non-audit fees billed or expected to be billed by the registrant’s accountant for services to the registrant and to the registrant’s investment adviser (and any other controlling entity, etc.—not sub-adviser) for the last year. The audit committee of the board of trustees/directors has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser is compatible with maintaining the principal accountant's independence and has concluded that the provision of such non-audit services by the accountant has not compromised the accountant’s independence.
Non-Audit Related Fees | FYE 08/31/2022 | FYE 08/31/2021 |
Registrant | N/A | N/A |
Registrant’s Investment Adviser | N/A | N/A |
Item 5. Audit Committee of Listed Registrants.
The registrant is an issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934, (the “Act”) and has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Act. The independent members of the committee are as follows: Dusko Culafic, Eduardo Mendoza, and Mark H.W. Baltimore.
Item 6. Investments.
(a) Schedule of Investments is included as part of the report to shareholders filed under Item 1 of this Form.
(b) Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end investment companies.
3
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of Trustees.
Item 11. Controls and Procedures.
(a) | The Registrant’s President/Principal Executive Officer and Treasurer/Principal Financial Officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant’s service provider. |
(b) | There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) 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 to open-end investment companies.
Item 13. Exhibits.
(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable to open-end investment companies.
(4) Change in the registrant’s independent public accountant. There was no change in the registrant’s independent public accountant for the period covered by this report.
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Furnished herewith. |
4
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) | Tidal ETF Trust | |||||
By (Signature and Title) ) | /s/ Eric W. Falkeis | |||||
Eric W. Falkeis, President/Principal Executive Officer | ||||||
Date | November 7, 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/ Eric W. Falkeis | |||||
Eric W. Falkeis, President/Principal Executive Officer | ||||||
Date | November 7, 2022 | |||||
By (Signature and Title)* | /s/ Aaron J. Perkovich | |||||
Aaron Perkovich, Treasurer/Principal Financial Officer | ||||||
Date | November 7, 2022 | |||||
* Print the name and title of each signing officer under his or her signature.
5